52990007AXNSS4PNX3522023-01-012023-12-3152990007AXNSS4PNX3522022-01-012022-12-3152990007AXNSS4PNX3522023-12-3152990007AXNSS4PNX3522022-12-3152990007AXNSS4PNX3522021-12-3152990007AXNSS4PNX3522021-12-31ifrs-full:IssuedCapitalMember52990007AXNSS4PNX3522021-12-31ifrs-full:CapitalReserveMember52990007AXNSS4PNX3522021-12-31ifrs-full:StatutoryReserveMember52990007AXNSS4PNX3522021-12-31ifrs-full:ReserveOfCashFlowHedgesMemberiso4217:EURiso4217:EURxbrli:shares52990007AXNSS4PNX3522021-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember52990007AXNSS4PNX3522021-12-31ifrs-full:RetainedEarningsMember52990007AXNSS4PNX3522021-12-31ifrs-full:EquityAttributableToOwnersOfParentMember52990007AXNSS4PNX3522021-12-31ifrs-full:NoncontrollingInterestsMember52990007AXNSS4PNX3522022-01-012022-12-31ifrs-full:RetainedEarningsMember52990007AXNSS4PNX3522022-01-012022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember52990007AXNSS4PNX3522022-01-012022-12-31ifrs-full:NoncontrollingInterestsMember52990007AXNSS4PNX3522022-01-012022-12-31ifrs-full:ReserveOfCashFlowHedgesMember52990007AXNSS4PNX3522022-01-012022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember52990007AXNSS4PNX3522022-12-31ifrs-full:IssuedCapitalMember52990007AXNSS4PNX3522022-12-31ifrs-full:CapitalReserveMember52990007AXNSS4PNX3522022-12-31ifrs-full:StatutoryReserveMember52990007AXNSS4PNX3522022-12-31ifrs-full:ReserveOfCashFlowHedgesMember52990007AXNSS4PNX3522022-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember52990007AXNSS4PNX3522022-12-31ifrs-full:RetainedEarningsMember52990007AXNSS4PNX3522022-12-31ifrs-full:EquityAttributableToOwnersOfParentMember52990007AXNSS4PNX3522022-12-31ifrs-full:NoncontrollingInterestsMember52990007AXNSS4PNX3522023-01-012023-12-31ifrs-full:RetainedEarningsMember52990007AXNSS4PNX3522023-01-012023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember52990007AXNSS4PNX3522023-01-012023-12-31ifrs-full:NoncontrollingInterestsMember52990007AXNSS4PNX3522023-01-012023-12-31ifrs-full:ReserveOfCashFlowHedgesMember52990007AXNSS4PNX3522023-01-012023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember52990007AXNSS4PNX3522023-01-012023-12-31ifrs-full:StatutoryReserveMember52990007AXNSS4PNX3522023-12-31ifrs-full:IssuedCapitalMember52990007AXNSS4PNX3522023-12-31ifrs-full:CapitalReserveMember52990007AXNSS4PNX3522023-12-31ifrs-full:StatutoryReserveMember52990007AXNSS4PNX3522023-12-31ifrs-full:ReserveOfCashFlowHedgesMember52990007AXNSS4PNX3522023-12-31ifrs-full:ReserveOfExchangeDifferencesOnTranslationMember52990007AXNSS4PNX3522023-12-31ifrs-full:RetainedEarningsMember52990007AXNSS4PNX3522023-12-31ifrs-full:EquityAttributableToOwnersOfParentMember52990007AXNSS4PNX3522023-12-31ifrs-full:NoncontrollingInterestsMember
Report by the Board
of Directors
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 25
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Report by the
Board of Directors 2023
KEY RATIOS
2023 2022
Net sales, EUR million 726.5 702.7
Comparable EBITDA, EUR million 68.2 76.1
% of net sales 9.4 10.8
EBITDA, EUR million 67.5 67.9
Comparable operating result, EUR million 34.8 42.9
% of net sales 4.8 6.1
Operating result, EUR million -31.3 34.7
Result for the period, EUR million -39.9 18.1
Earnings per share, EUR -0.59 0.26
Net cash flow from operating activities, EUR million 135.3 -0.4
Net debt / comparable EBITDA 2.0 4.0
Personnel at end of period 1,219 1,251
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.
Overall, the year 2023 was a challenging one for Anora,

performance. During the year, several actions were
executed to renew the operational model and improve
margin trajectory, such as reorganisation related change
negotiations and cost savings. The company is well on track
with the targets set out in these initiatives. The year ended
in a more positive territory and results were seen from these
cost cuts and the most recent price increases, supported by
lower raw material prices and more stabilised currencies.
For the full year, net sales were EUR 726.5 million,
showing a growth of 3.4%. Globus Wine, Denmark’s leading
wine company acquired in July 2022, has been reported as
part of Anora’s Wine segment as of 1 July 2022. For the full
year, Anora still experienced a negative impact on net sales

currencies.
Due to the challenges described above Anora revised its

2023 on 28 February 2023, at which time it was estimated
that Anora’s comparable EBITDA was expected to be
between EUR 80 and 90 million in 2023. Anora revised
the above guidance range down to EUR 70-78 million on 15


the weakening of Swedish Krona and Norwegian Krone had


According to the latest guidance issued on 18 December
2023, it was estimated that Anora’s comparable EBITDA
was expected to be between EUR 66-69 million in 2023. The
main reasons for lowering the guidance then were weaker

as well as lower monopoly sales in the fourth quarter.
For the full year 2023, comparable EBITDA decreased
from EUR 76.1 million to EUR 68.2 million or 9.4 percent of
net sales. In 2022, the comparable EBITDA was negatively

Globus Wine inventory values due to an accounting error,
without impact on inventory volumes.
In 2023, Anora successfully completed the divestment
of its Larsen cognac business to International Beverage
Holdings Limited. Anora reported one time capital gain of
EUR 11.6 million of sales of Larsen Cognac business under
other operating income.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 26
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
At the end of the year the cash balance was very high.
Cash and cash equivalents reached EUR 212.7 million,
supported by lower working capital due to inventory
reduction. This resulted in lower net debt of EUR 137.5
million, while the net interest-bearing debt / comparable

target of 2.5x.
Anora’s business model

portfolio of its own brands and a wide range of prominent
international partner wines and spirits to its customers

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
b-2-b customers in various industries. The logistics company
Vectura AS provides logistics services in the Norwegian wine
and spirits market.

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

Market environment in 2023
During 2023, overall sales volumes in the Nordic markets*
declined by 2.1% overall, with spirits decreasing by 3.7%
and wine by 1.8% compared to the previous year. All
countries faced challenges compared to the previous year
and the volumes declined in both wine and spirits. After
Covid-19 the consumption has shifted back from monopolies
to on-trade, travel retail and border trade. Compared to pre-
pandemic levels in 2019, monopolies in Norway and Sweden
grew by 15.1% and 4.6% in 2023, respectively, while Finland
declined by 5.7%.
The availability and cost of raw materials, labour,
energy and fuel have already partly impacted the operating

During the year, price increases were seen during
the monopoly pricing windows due to higher input costs.
There were also some signs that overall sales has slowed

in consumers partly trading down.
In the Industrial segment, there was uncertainty in
the market development of both industrial products
and services. The barley and feed prices declined from
the previous year’s record-high levels. The demand for
starch decreased, driven by lower demand from pulp and
paper industry. Technical ethanol prices started to show
decline during the fourth quarter. Volumes in industrial
services decreased compared to the previous year.
Key events
Divestment of Larsen
Anora sold its Larsen cognac business to International
Beverage Holdings limited on 29 September 2023. The
disposal included Anora’s brands Larsen, Renault, Monopol
and ibis as well as the company’s subsidiary Larsen S.A.S
with its production site in Cognac, France and Anora’s
eaux-de vie maturation stock.
Reorganisation savings programme
As part of Anora’s strategy implementation and to improve

negotiations in all of its business segments, Wine, Spirits
and Industrial, in order to develop its operational model and
structure. Altogether, approximately 650 employees were

and an increased focus on strategy, Anora estimated
that the planned changes would generate approximately
EUR 3–4 million in savings and result in redundancies of
approximately 40 employees.
The goal was to strengthen the commercial focus on

synergies in line with Anora’s 2030 strategy. The plans
included commercial operations in Anora’s Wine and Spirits
segments in the Nordic countries and Anora Industrial’s
operations in Finland. The changes were additional to

the Centre of Excellence strategy. Anora is well on track with
the targets set out in these initiatives. The change negotiations

*The Nordic market sales volumes include overall monopoly sales in Finland, Sweden
and Norway, and sales in Denmark. On-trade is excluded. Sales volume change in
percent calculated from the change in sales volumes in millions of litres. Sources: Alko,
Systembolaget, Vinmonopolet, Nielsen IQ.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 27
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Successful launches and awards
Innovations are a key growth driver for Anora. The examples
below present the success that Anora’s brands have reaped
during 2023:
• Important new launches were Kron Vodka Rhubarb in
Sweden as well as Koskenkorva Climate Action and Dirty
Opland Aquavit in Norway. In Finland, there were several
new launches, such as Leijona Capri Lemonello, Leijona
Namu and Koskenkorva Winterapple as well as new non
and low-alcoholic products in groceries.
• Anora had significant growth from new own wines
launched in 2023, such as Il Capolavoro BiB and Sköna
Hönan in Sweden, YOKO Rosé BiB and 3 Generation
PET Bottle Pinot Noir in Norway and Il Capolavoro bottle
in Finland. Globus Wine expanded its Italian brands
Ragnatela and Veronia in several sizes.
• In September Anora launched Blossa 23, a limited
edition annual glögg that celebrates its 20th anniversary,
as well as relaunched Blossa Winter Apple from 2004.
For the first time ever, the Blossa annual glögg was also
launched as an alcohol-free variant available in Sweden
and Finland. The Blossa 23 annual glögg sold very well.
• In Global Travel, Koskenkorva Climate Action was
awarded as the “Best Spirits Product (under €40)” at
the prestigious TR Business Awards 2023 in Cannes
during the TFWA Global Travel Retail exhibition, while
Skagerrak and Valhalla Herb Liqueur Shot received
“Highly Recommended” honours in the same category.
• Gilde Juleaquavit 2023 won a prestigious silver award
in the Global Spirits Design & Packaging Masters in
December.
• Xanté was awarded three medals in The Liqueur Masters
2023 (The Spirits Business Awards) in November
- one of the most respected spirits competitions in
the industry. The prestigious Master Medal was awarded
to the original Xanté Cognac & Pear and two gold medals
went to the intriguing Xanté Rum & Pear (Fruit liqueurs)
and Xanté Passion Fruit & Pear (NoLo).
News in partner wines
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 2023, Anora actively participated in
monopoly tenders and began collaboration with Penfolds
and Anselmo Mendes in Sweden.
Anora’s partner Terre Cevico and Wennerco launched

More” in a PET bottle in the Finnish market. This wine was
launched in the monopoly sales to order assortment and has
created interest with press and consumers alike.
Other successful launches were Codorniu Ars Collecta
Rosé – a new cava from Codorniu launched in Alko in
December, which sold over half of its yearly estimate in only
three weeks, as well as the seasonal Halloween packages
of 19 Crimes Glow. These striking bag-in-box seasonal
packages launched by Treasury Wine Estate boosted
the sales of these 19 Crimes wines in Alko by 46% in October
compared to the previous year.
Events in Industrial
In November 2023, the Koskenkorva Distillery was once
again granted The Year Award in the Starch Europe’s Safety
Programme. This was the third consecutive year when
Koskenkorva Distillery has won the said award. The Year
Award is awarded to plants plants with a full calendar year
without lost time incidents (LTI), and it is an important

safety.
The new heat recovery system at the Koskenkorva
Distillery was taken into use in 2023. The new system
will increase heat circulation within the distillery and
reduces steam power generation by 10% in the long term.
Anora’s cooperation with Fortum at the Kalax wind farm
in Närpiö is in place and will be continued until 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 2023, the Koskenkorva

of 44 (44) %. The Distillery’s CO
2
emissions still followed
the strong trend of reduction in CO
2
emissions since 2014.
To mitigate the impact of the high cost of barley,
the Koskenkorva Distillery’s running speed was lowered
during the year. In total, 174,0 (184.3) million kilos of grain
were used at the plant. In 2023, the average barley market
price was 277.1 €/tn (347.8€/tn), a decrease of 20%.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 28
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Strategy and financial targets

and sustainability roadmap for 2022–2030 were introduced
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

the progress in them.
Long-term financial targets for 2030
Actual
2023
Actual
2022
Annual net sales growth
including M&A, majority being organic 3–5% 3.4% 5.7%
Comparable EBITDA margin
through focus on margin accretive business
and scale benefits on indirect costs 16% 9.4% 10.8%
Net IB debt / comparable EBITDA (LTM)
debt levels may occasionally exceed in
connection with M&As <2.5x 2.0x 4.0x
Dividend pay-out ratio
% of result for the period 50–70% -37.2 83.1%
Dividend policy: 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 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:
• Waiting for science-based targets to be approved: 42%
near-term reduction and 90% long-term reduction in
total emissions (Scopes 1-2, and Scope 3 emissions from
purchased goods and services, upstream transportation
and distribution and downstream transportation and
distribution) and 30.3% reduction in FLAG greenhouse
gas emissions by 2030
• A carbon-neutral Koskenkorva Distillery during 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 packages are lightweight, 100% recyclable
and of materials from certified sources or from recycled
origins.
Identified efficiency potential

in the supply chain during its strategic period through
the implementation of a centre of excellence strategy
for its bottling sites in Finland, Norway and Denmark.
According to the plan, the production of vodka-based spirits
would be centralised at the Rajamäki plant in Finland,
whereas the Gjelleråsen plant in Norway would focus on
the distillation, blending and bottling of aquavits and
bitters. Operational excellence of wine production would
be concentrated at the Globus Wine plant in Denmark.
The planned changes would reduce production footprint
complexity, improve the utilisation of current production
lines and reduce costs. The specialisation is expected to
be completed during 2025 and would entail a gradual
downsizing of around 40 full-time equivalents over a period
of three years in Norway.
Research and development activities
The Group’s direct research and development expenditure
amounted to EUR 2.3 million in 2023 (EUR 2.2 and 3.5
million in 2022 and 2021, respectively) million and was
related to the product development of alcoholic beverages.
The R&D expenditure represented 0.3% of net sales in 2023
(0.3% and 0.7% in 2022 and 2021, respectively).
Financial review
Net sales, profitability and result for the period
In 2023, Anora Group’s net sales were EUR 726.5 million,
an increase of 3.4% from the previous year. The increase
in net sales compared to the previous year is due to Globus
Wine being reported as part of Anora’s Wine segment as
of 1 July 2022. Net sales were also positively impacted by
price increases and the international sales in Spirits, while
the weaker currencies had a negative impact, especially
the weakening of the NOK and SEK. The consolidated
income statement includes the income statement of
the divested business of Larsen until 29 September 2023.
In 2023, Anora Group’s comparable EBITDA was EUR
68.2 (76.1) million, or 9.4% (10.8%) of net sales. The decline

segment, high input costs and weaker currencies. The

was approximately EUR 13.9 million. Since the beginning
of November, both SEK and NOK have again started to
strengthen. The barley and fuel prices were also below

presented on page 58.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 29
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Reorganisation related change negotiations were
launched in Q4 and a cost savings initiative in Q2. Anora is
well on track with the targets set out in these initiatives.

EUR 103.8 (93.8) million, including EUR 83.0 (74.0)
million in wages and salaries. The growth was mostly due to
the acquisition of Globus Wine. Other operating expenses
amounted to EUR 134.1 (137.6) million.
Result for the period amounted to EUR -39.9 (18.1)
million, and earnings per share were EUR -0.59 (0.26).
The below tables illustrate net sales and comparable
EBITDA by reporting segments.
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 2023, the net sales for the Wine segment increased by
5.6% to EUR 334.3 (316.6) million. The increase in net sales
compared to the previous year is due to Globus Wine being
reported as part of Anora’s Wine segment as of 1 July 2022.
Net sales were negatively impacted by unfavourable currency
exchange rates and previously lost partners in Sweden.
The negative impact of the exchange rates on net sales was
approximately EUR 20.7 million.
In 2023, comparable EBITDA was EUR 12.4 (23.5)
million, or 3.7% (7.4%) of net sales. The decline in EBITDA
was mainly driven by higher input costs due to weaker
currencies, but also as a result of previously lost partners

local currencies in all markets. In 2022, the comparable

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 2023, the net sales for Spirits increased by 1.4% to
EUR 237.0 (233.8) million. The growth was due to price
increases and international sales growth. The negative
impact of the exchange rates on net sales was approximately
EUR 11.3 million.
In 2023, comparable EBITDA increased to EUR 40.3
(37.8) million, or 17.0% (16.2%) of net sales, due to savings
in operating expenses.
Industrial segment
The Industrial segment comprises Anora’s industrial
business – industrial products and services, the logistics
company Vectura in Norway, and supply chain operations.
In 2023, the total net sales for Industrial segment
decreased by 5.6% to EUR 269.5 (285.5) million, driven by
lower starch and feed sales. External net sales decreased by
3.0% and amounted to EUR 155.1 (160.0) million. Internal
sales decreased mostly due to divestment of Larsen.
In 2023, comparable EBITDA was EUR 17.5 (17.7)
million, or 6.5% (5.9%) of net sales. Comparable EBITDA

lower barley price.
Financial items
For the full year 2023, other operating income amounted
to EUR 20.3 (10.9) million, with the majority coming from

Larsen, sales of steam, energy and water of EUR 4.0 (4.2)
million, income from insurance compensation EUR 0.0 (1.1)
million and rental income of EUR 1.4 (1.4) million.

million for the full year 2023, due to increase in interest
rates.
An insurance claim relating to the acquisition of
Globus Wine
Anora made a claim during Q2 under the warranties and
indemnity insurance policy taken in connection with
the acquisition of Globus Wine. Anora thus has a contingent
asset in the form a potential insurance compensation.
NET SALES BY SEGMENT, TOTAL*
EUR million 2023 2022 Change %
Wine 334.3 316.6 5.6
Spirits 237.0 233.8 1.4
Industrial 269.5 285.5 -5.6
Anora Group net sales, external 726.5 702.7 3.4
* Total net sales by segment includes external and internal sales.
COMPARABLE EBITDA BY SEGMENT
EUR million 2023 2022 Change %
Wine 12.4 23.5 -47.7
Spirits 40.3 37.8 6.6
Industrial 17.5 17.7 -1.3
Group allocations -1.9 -2.8
Anora Group 68.2 76.1 -10.4
% of net sales 9.4 10.8
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 30
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Impacts of impairment testing
As a result of annual impairment testing, impairments

owned and right-of-use assets at the Gjelleråsen plant of
the Industrial segment in Norway due to its loss of volume to
other factories following the Centre of Excellence program,
as well as at Vectura, which shares the same right-of-use

As a result, the Group operating result weakened to EUR
-31.3 (34.7) million.
The values of shares of the parent company’s subsidiaries
in Denmark were also impaired mainly due to weak


reduce Anora Group Plc’s distributable funds by EUR 58.7
million to EUR 100.2 million.
For shares owned by other Group companies,
impairments totalling EUR 23.6 million were made
to the values of shares of certain companies held by
Vingruppen in Sweden and Norway due to recent partner
losses, reducing the distributable funds of their respective
parent companies.
The impairments made do not impact the loans, cash

Cash flow and balance sheet


from operations was mainly due to lower net working
capital than in the previous year. In 2023, the change in
working capital contributed to EUR 109.2 (-44.8) million,
due to lower inventory levels and increase in the sale of
receivables. The Group’s net working capital improved
to EUR -79.2 (63.7) million at the end of December. The
receivables sold amounted to EUR 173.6 (59.4) million at
the end of the reporting period. The Larsen divestment also

In 2023, gross capital expenditure totalled EUR 12.6
(10.7) million. During the period, the capital expenditure
was allocated mainly to replacement investments and to

At the end of the reporting period, the Group’s net debt
amounted to EUR 137.5 (300.9) million. The decrease in
net debt was due primarily to the sale of Larsen business.
The reported net debt to comparable EBITDA was 2.0 (4.0)
times.
Anora Group’s liquidity position was strong throughout
the period. Cash and cash equivalents amounted to EUR
212.7 (91.4) million, while the interest-bearing debt
including lease liabilities amounted to EUR 350,2 (392.3)
million. The Group has a revolving credit facility of EUR
150.0 (150.0) million of which EUR 0.0 (0.0) million was
in use at the end of the reporting period. In December 2023

credit facilities agreement, thus extending the term loan and
revolving credit facilities maturity by one year to December
2026.
The gearing ratio at the end of the reporting period was
33.7% (62.5%), while the equity ratio was 35.9% (37.0%). At
the end of the period, the total in the consolidated balance
sheet was EUR 1,135.7 (1,301.3) million.
Personnel
Anora Group employed 1,219 (1,251) persons at the end of
the period and on average 1,273 (1,159) persons in 2023.
PERSONNEL BY COUNTRY AT THE END OF THE
PERIOD
2023 2022
Finland 416 414
Norway 360 370
Sweden 171 165
Denmark 171 174
Estonia 61 68
Latvia 31 33
France 0 22
Germany 9 5
Total 1,219 1,251
Anora’s values serve as a foundation for building skills
and competences of the employees and priorities in their
development plans. The revised performance review
incorporates elements of well-being and competence

planning, assessing competence building based on
the values.
Anora wants to ensure an inclusive and safe work
environment for all its employees. Anora’s work on
Diversity, Equity, and Inclusion continued, and Anora’s

Conduct and recruitment policy. The Code of Conduct was
updated and disclosed during the year. The code articulates
the company’s dedication to conducting business reliably,
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 31
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
include personnel related restructuring costs of EUR 4.9
(0.1) million.
Share-based incentive scheme
The Board of Directors of Anora has 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

situations.
Performance Share Plan (PSP) 2023–2025
The PSP 2023–2025, commenced 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. Eligible
for participation in PSP 2023–2025 are approximately
54 individuals, 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.
Restricted Share Plan (RSP) 2023–2025
The RSP 2023–2025 commenced 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.
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 his/her ownership at least half
of the shares received under the share-based incentive plans
of the company until the value of his/her share ownership
in the company corresponds to at least his/her 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 2023-2025 incentive schemes decided by Board of
Directors was issued on 21 December 2022. See also “Events
after period” for more information on the a new plan period
2024-2026 within the share-based long-term incentive
scheme for the management and selected key employees,
published in a stock exchange release on 14 February 2024.
fairly, and following the respective laws and regulations.

individuals employed by any Anora Group company.
The annual Anora Tasting employee survey provides
valuable information on employees’ engagement, leadership,
team performance and overall well-being. The survey was
conducted in November, followed by reviews of the results,
training sessions and action planning that were consistently
implemented throughout the organization. Anora is
committed to enhancing the well-being of its employees,
continuing an external service, Auntie, to support employees’
psychological safety and well-being.
Anora’s change negotiations that were initiated in
November 2023, were concluded in January 2024 in all
operating countries. Changes were made in organisational
structures to support a stronger commercial focus, reduce
complexity, and create synergies in line with Anora’s
strategy. With the introduction of these new structures,
the duties of 37 employees at Anora will end. The new
organizations are in place as of February 2024.
EMPLOYEE BENEFIT EXPENSES
EUR million 2023 2022
Wages and salaries 83.0 74.0
Pension expenses
Defined contribution plans 10.5 9.1
Defined benefit plans 0.1 0.0
Share-based payments 0.0 0.6
Other social expenses 10.2 10.1
Total 103.8 93.8
In Anora, the total wages and salaries of personnel consists


GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 32
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Non-Financial Information 2023
Sustainability governance
At Anora, the administrative and governing bodies are
the Annual General Meeting, the Board of Directors and
the CEO. Anora’s highest decision-making power is exercised
by the shareholders at the Annual General Meeting. The
Board and CEO, with the support of the Audit Committee
and the Remuneration and Nomination Committee, are
charged with the company’s management. The Management
Team supports the CEO in steering the company.
Anora’s Board of Directors oversees the appropriate
governance of sustainability and ESG (Environmental, Social
and Governance) criteria within the Anora Group, as well
as sustainability management and ESG-related risks. The
Board’s responsibility is to approve Anora’s sustainability

Anora’s Audit Committee regularly discusses
sustainability and climate-related matters, for example, as
well as climate-related risks and opportunities as part of
Anora’s TCFD (Task Force on Climate-Related Financial
Disclosures) report. The Audit Committee also assists
the Board in overseeing the appropriate governance of
sustainability and ESG criteria within Anora, as well as
sustainability management and ESG-related risks.
Anora’s Executive Management Team (EMT) is
responsible for the implementation and monitoring
of the 2030 Sustainability Roadmap and acts as
a steering group. The EMT also discusses targets and

targets within the roadmap, and prepares sustainability
investments.
In terms of Anora-wide decision-making forums in
place, the Business Area Leadership Teams are responsible
for implementing roadmap targets, taking responsibility
for investment planning and cascading the roadmap to
Anora’s operational plans. Sustainability topics are regularly
discussed in both EMT as well as Audit Committee meetings.
Anora’s Sustainability Director acts as the coordinator
to drive the sustainability agenda at Anora and has
the responsibility to provide an overview of the roadmap’s
implementation, and leads, reports and communicates
on ESG topics. Sustainability work is coordinated in
the Sustainability Working Group, consisting of the leaders

Business sustainability roles include a focus on Anora’s

other criteria.
The internal audit for Anora’s Sustainability Governance
was performed by Anora’s internal auditor, Deloitte Oy, in
2023.
During 2023, Anora undertook preparations with regard
to the upcoming EU Corporate Sustainability Reporting
Directive (CSRD). As one part of this preparation, Anora
conducted a new and updated materiality analysis in
line with the upcoming directive and double-materiality
principle. Based on this analysis, Anora can identify
the material sustainability topics it is required to report
on based on the new European Sustainability Reporting
Standards (ESRS) and can further its preparations for
the new reporting requirements that are mandated in 2024.
Other preparative actions included human rights due
diligence development as well as working with ESG-
related data, calculating science-based targets for Scopes
1-3 and submitting the targets for validation to the SBTi,

sustainability report. In 2024, Anora will focus especially
on building the new sustainability report and undertaking
a biodiversity assessment as well as conducting climate
change-related scenario analyses.
Sustainability management
Anora’s sustainability strategy, detailed by the Board, CEO,
and management team, is owned by every employee. Our
critical policies include the Code of Conduct and Supplier
Code of Conduct which align with the OECD Guidelines for
Multinational Enterprises and the UN Business and Human
Rights principles. Anora’s new Human Rights commitment
was approved by Anora’s Executive Management Team

ISO9001:2015, ISO14001:2015 and ISO45001:2018,
encompass quality, occupational health, safety, and
environmental management.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 33
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Materiality & SDGs
Materiality analysis
During 2023, Anora conducted a new and updated
materiality analysis in line with the upcoming Corporate
Sustainability Reporting Directive (CSRD) and double-
materiality principle, considering both the impacts (the
inside-out view) and the risks and opportunities (the
outside-in view). Based on this analysis, Anora can identify
the material sustainability topics it is required to report on
based on the European Sustainability Reporting Standards

2024. This work involved many parts of the organisation
and included the input of experts on human resources,

strategy, sustainability and public relations.
The new materiality analysis also created a further

opportunities in Anora’s global business and value chain
from a short-, medium- and long-term perspective. Risks,
impacts and opportunities that exceeded a certain threshold
based on their ratings constituted Anora’s material

analysis, the most material topics for Anora were climate
change, water, biodiversity, circular economy, own workers
and workers in the value chain, end-users, and business
conduct.
The new materiality analysis builds on the analysis
undertaken in 2022 as a base to Anora’s 2030 Sustainability
Roadmap.
As part of the 2022 materiality analysis, we conducted
20 in-depth interviews with our external stakeholders, with

as well as an open survey with over 200 answers from
employees and external stakeholders including authorities,
banks, analysts, investors, consumers, customer companies,
industry associations, media, NGOs, owners, political
decision-makers and suppliers. The 2023 materiality
analysis was supported with additional interviews with
a focus on biodiversity and human rights in the value chain.
Based on the materiality analysis, Anora is viewed as
having a strong and proactive approach to sustainability,
as well as the ability to act as a Nordic frontrunner of
the industry in thought leadership and sustainability themes.
As part of the new assessment, a number of topics
were determined as material from an ESRS-perspective.
These topics will be described and detailed in our 2024
sustainability report, when ESRS and CSRD will be applicable

the material topics with relevant targets valid during 2023.
Sustainable development goals
In addition to conducting an updated materiality analysis,
we have divided the matrix into material topics to show
how they strongly link to and align with the United Nations
Sustainable Development Goals (UN SDGs). Anora currently

Material topics
• Inclusivity diversity, equality
• Responsible drinking culture promotion
• Consumer education on responsible and
sustainable choices
• Healthy ingredients
• No- and low-alcoholic products
• Responsible marketing
• High product quality and food safety
SDG 3
material topic links to our work around promoting a
responsible drinking culture, including responsible
marketing, increasing non and low-alcoholic
(NoLo) products that support the responsible
drinking trend and sober curiosity movement, as
well as mitigating the adverse effects that our
products have. In addition, high product quality and
food safety are also viewed as important topics.
Material topics
• Product’s water footprint
• Environmentally sound wastewater
handling
SDG 6: ‘Clean water and sanitation’. Our
production plants operate in areas that do not
suffer from water scarcity. However, we are a

cultivation countries suffer of water scarcity, so
this is an important material topic for us. We are

Finland, Rajamäki with groundwater springs we
use in our products. We are also working to reduce
our own water consumption by implementing
advanced wastewater management processes.
Material topics
• Waste reduction
• Climate-smart packaging
• Socially responsible sourcing
• Transparency and responsibility in supply chains
• Safe workplace
• Employee development
• Leadership and people management
• 
• Organic products
SDG 12; ‘Responsible consumption and production’.
Our focus area here relates to our climate-
smart packaging, our circular economy-based
production, particularly at our Koskenkorva

products, including Fair Trade and Fair for Life.
Material topics
• GHG emissions from own production
• GHG emissions in supply chains
• New circular production models
• Environmentally responsible sourcing
• 
SDG 13; ‘Climate action’. Our focus here is on
our emissions reduction efforts in our own
production at our Koskenkorva Distillery, as well
as in our value chain, and the fact that we have
committed to set science-based targets, and
have submitted our targets for validation in 2023.
Material topics
• Regenerative agriculture
• Biodiversity conservation
SDG 15; ‘Life on land’. Our material topics
related to this SDG are particularly focused
on our actions to enhance regenerative
farming and biodiversity conservation.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 34
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Policies
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. Anora
has committed to an 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, particularly circular economy-
based production, and an extensive materiality assessment,
conducted in 2022 and revised and updated in 2023. Anora’s
sustainability work is built on the main themes of Planet,
People and Product.

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, product quality,
safety, and sustainability. For more information about
Anora’s comprehensive sustainability work, see Anora’s
Sustainability Report 2023.
Our Code of Conduct and our values help us make
the right choices and guide our work in a constantly evolving
business environment. This delivers the foundations for our
long-term success. Anora’s compliance system is embedded
in our governance model and is designed to strengthen our
company performance and a Group-wide culture of integrity
at all levels. We follow how this culture is developing with
the help of our annual employee survey, Anora Tasting.
Policies, procedures and guidelines form the basis of our
compliance programme. We review and update our policies
and procedures through an annual policy management
process. In addition, with the regulatory environment in
constant change, we want to ensure that our Group policies
stay relevant and up to date.
With the support of risk management function, each
business area, function and unit are responsible for
identifying and managing compliance risks related to its own
operations. To enhance this process, we utilise the results of
annual risk assessments to guide our compliance activities
and mitigation actions in businesses and functions.
Together, the risk management function and
the businesses update the risk assessments and mitigation
actions throughout the year to respond to changes in the risk
environment. The progress of these actions is reported to
the Audit Committee of the Board of Directors and our
businesses on a quarterly, half-year or annual basis.
Environment
One of the main themes in Anora’s 2030 sustainability
roadmap is Planet. Under this theme, Anora advances it
work related to the circular economy model of Koskenkorva
Distillery, regenerative farming, environmentally responsible
sourcing, emissions from its own operations and value chain,
water resources, and biodiversity.
a) Policies and ways of working
Anora manages its approach to environmental matters
through various standards, policies and principles.
Anora has a Quality, Safety and Environment policy. This
policy is based on Anora’s 2030 Sustainability Roadmap,
which sets out responsibility targets and is based on UN
Sustainable Development Goals. The management and
implementation of quality, safety and environmental values
is part of our sustainability work and thus are the most
paramount for Anora. We are committed to the continuous
improvement of our operations. As part of the policy:
• We comply with the laws, regulations and industry codes
of the countries in which we operate.
• The Executive Management Team, the management of each
function, as well as each employee within their sphere of
influence is responsible for implementing these principles.
• We promote these principles in our global supply chain.
Environmental impacts are managed through ISO 14001.
The ISO 14001 policy is an international standard, and its
requirements provide a framework and guidelines for creating
an Environmental Management System (EMS). ISO 14001

headquarters.
The ISO 14001 standard contains the following key elements:
• Environmental policy
• Planning
• Implementation and operation
• Checking and corrective action
• Management review
The standards, policies, and principles relevant to Anora’s
environmental work include:
• Anora Code of Conduct
• Anora Code of Conduct for Suppliers and Subcontractors
• Quality, Safety and Environment policy
• Anora Procurement policy and Principles of responsible
sourcing
• ISO 14001:2015 Environmental Management System,
covering Anora’s operations in Finland
The most senior level in Anora that is accountable for
the implementation of the Quality, Safety and Environment
policy is the Executive Management Team.

stakeholders, and stakeholders who need to help implement it.
The policy can be found from
anora.com/en/sustainability/policies
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 35
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
b) Environmental risks and their management
Environmental risks are assessed regularly as part of
the Anora Group’s risk management process and as part
of Anora’s ISO 14001 EMS. In addition to the updated
evaluation in the Group’s risk management process, Anora
has also conducted a separate and revised 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
pollution 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

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 careful monitoring of legislative developments.
c) Outcome and KPIs
During 2023, Anora updated the calculation of the baseline
2021 emissions in its entire value chain (Scopes 1–3),
including the addition of acquired Globus Wine on
the baseline and calculating the emissions and targets
for forest, land, and agriculture (FLAG) sector as well. In
December 2023, Anora submitted its targets for validation to
the SBTi.
Our commitment on following targets was submitted to
the SBTi:
• Near-Term targets: Anora commits to reduce absolute
Scope 1–2 and Scope 3 emissions from purchased goods
and services, upstream transportation and distribution
and downstream transportation and distribution 42% by
2030 from 2021 base year.
• Long-Term Targets: Anora commits to reduce absolute
Scope 1–2 and Scope 3 emissions from purchased goods
and services, upstream transportation and distribution
and downstream transportation and distribution 90% by
2050 from 2021 base year.
• FLAG targets: Anora commits to reduce absolute scope
3 FLAG (land and forest use) greenhouse gas emissions
30,3% by 2030 from a 2021 base year.
Related to the target of reducing emissions, one of Anora’s
core ambitions is to have its entire production carbon
neutral by 2030 and the Koskenkorva Distillery carbon
neutral during 2026 – both without carbon compensations.
Social, employee and human rights
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.
KPI 2023 2022 2021
Total fossil emissions & reduction compared to previous year
(Scope 1 and 2)
21,434 tCO
2
e
-21.0%
27,144 tCO
2
e
+5.5%
25,737 tCO
2
e*
-3.2%
Amount of regeneratively farmed barley agreed to be
purchased:
Target to increase the share of regeneratively farmed barley
to 30% of own grain spirit products by 2030.
2.3 million kg 0.056 million kg 0.050 million kg
Wastewater volume (1,000 m³)**:
Target to reduce wastewater volume with 20% by 2030,
compared to 2021
246.6 238 293*
Waste recycling and recovery rate (%) Koskenkorva, Gjelleråsen,
Globus Wine 100%,
Rajamäki 99.9%
Koskenkorva, Rajamäki,
Gjelleråsen and
Globus Wine 100%
Koskenkorva, Cognac,
Rajamäki and
Tabasalu: 99.5%
Gjelleråsen: Approx 100%
Landfill waste (t):
Target to reach zero by 2030
11.13 11.57 28.18*
All figures displayed are for annual periods of January-December.
*Figures include former Altia and former Arcus
**Globus Wine included in 2023 wastewater figure, excluded in 2022 and 2021
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 36
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
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

by the company. Anora’s work on the area of Diversity,
Equity and Inclusion (DEI) is also an important focus area.
Anora’s human rights work in its supply chain is
governed by the amfori BSCI’s Code of Conduct 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.

operations in Finland (Rajamäki, Koskenkorva, Ruoholahti:
Anora HQ). ISO 45001 EMS provides an internationally
recognised framework for managing occupational health
and safety risks. It enables us to systematically assess
hazards and implement risk control measures, leading
to reduced workplace injuries, illnesses, and incidents.
Adopting the standard shows our employees and external
stakeholders that we are committed to worker health, safety,
and well-being.
Anora’s new human rights commitment, published in
2023, describes our approach to human rights in our value
chain and our human rights due diligence process.
Anora’s report on the Norwegian Transparency Act,
published in 2023, describes our human rights due
diligence. It includes information on our human rights
assessment and human rights commitment. The report is
published in English and Norwegian.
The standards, policies and principles relevant to social,
employee and human rights matters include:
• Anora Code of Conduct
• Anora Supplier Code of Conduct
• Quality, Safety and Environment Policy
• Anora Human Rights Commitment
• Anora’s Procurement Policy describes our procurement
principles, including the responsibility on human rights
and environment in the value chain.
• Principles of responsible sourcing
• Non-Harassment Policy
• Anora Policy of Alcohol Consumption for employees
• amfori BSCI Code of Conduct
• ISO 45001:2018 Occupational Health and Safety
Management System; covering Anora’s operations in
Finland.
The most senior level in Anora that is accountable for
the implementation of the Quality, Safety and Environment
Policy, the Procurement Policy and the Non-Harassment
Policy is the Executive Management Team.
Anora has made the policies available to potentially

implement them. The policies can be found from
anora.com/en/sustainability/policies
b) Employee and human rights risks and their
management
The risks are assessed as part of Anora Group’s risk
management process and as part of Anora’s ISO 45001
EMS. 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 new Human Rights Policy was approved by
Anora’s Executive Management Team in June 2023.
The Policy will be regularly updated to allow us to also
communicate our evolving approach on human rights. Our
salient human rights issues arise from our supply chain.
Agricultural value chains and some of the geographies
we source from are prone to human rights risks and we
recognise the need to actively identify possible changes
in our own and our suppliers’ operating environment
which might increase the likelihood of these risks. We are
committed to taking regular steps to ensure that we have

or mitigate the risks.
We conducted a human rights impact assessment with
the help of external human rights expertise in 2023 and

rights risks in our supply chain:
• Right to health & safety
• Right to freedom of discrimination in employment
• Right to decent work
• Right to freedom of association and collective bargaining
• Forced labour
Where there is potential for adverse impacts on vulnerable
people or groups, Anora is committed to taking measures,
based on due diligence processes, to avoid causing or
contributing to adverse human rights impacts through our
own activities (including through our own operations and
our supply chain), and to addressing and remediating such
impacts when they occur.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 37
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
At Anora, we are committed to systematically improving our
sustainable procurement procedures. We already have in

• Anora Code of Conduct & Code of Conduct for Suppliers
and Sub-contractors
• Third-party audits & certificates
• Internal audits & supplier visits
• Risk country profiles to give us a holistic understanding
of the human rights situation in our supply chain
countries
• Supplier self-assessment tools to both communicate
about Anora’s commitments and gain a wider
understanding of our suppliers’ sustainability (incl.
human rights) approach
• Human rights training for all employees to share
the findings from our impact assessment process and
strengthen internal competence.
Our human rights management processes are constantly
developing, and we recognise that this is an area which
requires active attention.
c) Outcome and KPIs
In 2023, Anora continued to build the organisation and
company culture after the merger in 2021. In 2022, Anora
unveiled its new company values: Courage to explore;
Energy to inspire; and Empowering to win. In 2023,
a leadership program pilot group, focusing on the value
‘Courage to explore’ was successfully launched. The year
remained challenging from the People perspective due to



In 2023, Anora conducted its second post-merger Employee
Engagement Survey entitled ‘Anora Tasting’ with a response
rate of 83%. The 2023 survey, for example, found that
78% of Anora’s employees are very 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 the continual
improvement of processes and the unifying of safety
measurements across the organisation, as well as training
employees on safety topics. Of note, safety data from Globus
Wine, acquired in 2022, has been reported internally from
the fourth quarter of 2023, but not yet included in Anora


were more positive in 2023 compared to the previous year
and, for example, Anora’s Lost Time Incident Frequency
(LTIF) rate was 4.6 in 2023 compared to 7.0 in 2022. There
were no fatal work-related accidents during the year.
Anti-bribery and corruption
Anora has a zero-tolerance policy towards bribery and
corruption. The company is committed to operating

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. In addition, Anora does not participate in

a) Policies and ways of working
Anora’s Code of Conduct describes the company’s
commitment to ethical business conduct. Anora updated
its Anti-Bribery and Anti-Corruption policies in 2023.
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.
The standards, policies, and principles relevant to
anticorruption and -bribery matters include:
• Anora Code of Conduct
• Anti-Bribery and Corruption Policy
• Whistleblowing channel
KPI 2023 2022 2021
Number of amfori BSCI audited suppliers 2 0 0
Increase in the number of safety observations per person****
Target: three observations per person by 2025
3.6 2.9 2.6*
Lost Time Incident Frequency (LTIF)****
Target: 0 by 2030
4.6 7.0 5**
10.5***
*In former Altia Industrial
**In former Altia
***In former Arcus
****Does not include Globus Wine, Germany or Vingruppen Sweden
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 38
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
The most senior level in Anora that is accountable for
the implementation of the Anti-Bribery and Corruption
Policy is the Executive Management Team.
Anora has made the policy available to potentially

implement it. The policy can be found from
anora.com/en/sustainability/policies.
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

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 was revised and updated during
the reporting period. Anora updated its Anti-Bribery and
Anti-Corruption -policies in 2023 and launched an anti-
bribery and anti-corruption e-learning for all employees
working in relevant positions. During 2023, we received

of which only one required further investigation measures.

the whistleblowing channel was detected.
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 no- and low-alcohol (NoLo) 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

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.
Anora has the ISO 9001 quality management system

recognised standard for quality management. It helps
organisations to improve their performance, meet customer
expectations and demonstrate their commitment to quality.

maintain, and continually improve a quality management
system. Implementing ISO 9001 means that Anora has put

quality products and services.
The FSSC 22000 v.5.1 Food Safety Management System

internationally recognised standard ISO 22000 and
complemented by technical standards, such as ISO TS
22002-1 for food manufacturing and ISO TS 22002-4 for
packaging manufacturing.
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, internal guidelines for responsible marketing
• Responsible Marketing Policy
KPI 2023 2022 2021
Communication and training on anti-corruption policies 32.5% employees for
whom the training was
relevant completed
the course
Internal
communications
on anti-corruption
policies done
New employees have
completed an
on-line course. Internal
communications have
been done.*
Number of cases of misconduct reported through the whistleblowing channel 4 0 0**
*Information includes former Altia. At former Arcus, anti-corruption issues were included in the onboarding process for new employees.
**Figure includes 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.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 39
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
• ISO 9001:2015 Quality Management System; covering
Anora’s operations in Finland, the Tabasalu plant in
Estonia, and the Gjelleråsen plant in Norway
• FSSC22000 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
Sweden. Fair for Life certification for Anora Finland and
Anora Sweden
• The Koskenkorva Distillery, the Rajamäki alcoholic
beverage plant, trading products at the Tabasalu
Beverage plant (deliveries and storage) and the distillery
in Sundsvall, production plant Gjelleråsen and Globus
Wine plant in Køge are certified for organic production.

stakeholders, and stakeholders who need to help implement
it. The policy can be found at
anora.com/en/sustainability/policies
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

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 practiced
regularly by way of phantom testing. Applicable legislation
and any developments therein are reviewed regularly.
c) Outcome and KPIs
KPI 2023 2022 2021
Share of recycled materials in Anora’s packaging*
Target: recyclable materials and materials from certified sources or recycled
origin used in Anora’s packaging: 100% by 2030
Glass bottles 50%
Plastic bottles 22%
Bag-in-Boxes 18%
Glass bottles 34%
Plastic bottles 21%
Bag-in-Boxes 29%
Glass bottles 36%
Plastic bottles 16%
Bag-in-Boxes 29%
Share of net sales from no- and low-alcohol products**
Target: 5% by 2030
4%** 4% No data
*Figures are for Anora’s own production and own brands and exclude labels and
closures. Former Altia and former Arcus consolidated in 2021, Globus Wine included in
2023 figures.
**Scope: own products, includes wines under 10% abv, spirits under 30% abv, RTDs and
non-alcoholic products.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 40
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
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

opportunities in a workshop in 2022. The same risks and
opportunities remained valid for 2023. During 2023,
Anora developed its processes regarding the integration of
climate risk management and reporting. Anora will continue
the developing process and plans to conduct TCFD-aligned
scenario analyses during 2024.
This disclosure 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

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 Scope 1-2

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.
The sustainability working group is a team formed during
the sustainability roadmap creation process in 2022 and
it includes all 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

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-

for Anora’s operations and which Anora can actively mitigate
(see the tables 1 & 2 for risks and opportunities).
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 41
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
TABLE 1: CLIMATE-RELATED RISKS
RISK TYPE Sustainability standards
Legislation and retailer / monopoly
requirements on product validation 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. Supporting
partners to prepare for the requirements
of CSRD and CSDDD in the EU.
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.
Optimising barley varieties for better
weather robustness.
TABLE 2: 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
2
-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.
Cooperating with the BSAG (Baltic
Sea Action Group) and local farming
consultants and authorities.
In addition to the risks described in the tables, Anora has


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.

the insecurity and volatility of the supply of green energy,

the supply chain and harvest of raw materials, and changes

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. See more on
Anora’s water management.

climate-friendly logistics options in e.g., biofuel and
electric trucks, solar panels, extensions of growing areas,
Koskenkorva Climate Action vodka, 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

consumer preferences can have a strategic meaning and
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 42
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS

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. Better integration of the climate-
related risk assessment to Anora’s overall risk management
continued in 2023. 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,



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

related risks are potentially arising in several time horizons.
The size and scope of the risks is assessed also in overall risk
management process.

TCFD’s recommendations, and divides climate-related risks
into two main categories: transition – and physical risks.


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.

assessment processes further and to integrate climate-
related risks into general risk management system. During

the separately conducted climate risk assessment in 2022
were integrated into overall risk management system and
updated and assessed with the same criteria regarding scope
and likelihood.
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. During 2023, Anora
updated the calculation of the baseline 2021 emissions in
its entire value chain (Scopes 1–3), including the addition
of acquired Globus Wine on the baseline and calculating
the emissions and targets for forest, land, and agriculture
(FLAG) sector as well, and submitted its targets for
validation to the SBTi. Anora has incorporated sustainability
in its long-term incentive plans (Performance Share Plan,
PSP) and a bridge plan, measured by Anora’s fossil Scope 1-2
emissions and the Sustainalytics ESG-rating.
Anora’s key forward-looking climate-related targets are
that its own production will be carbon neutral by 2030 and
the Koskenkorva distillery already during 2026, without
compensation.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 43
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
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.

environmentally sustainable economic activities and thus,
direct capital into the green transition. In addition to
the two previous climate-related objectives, the Taxonomy
was expanded to four remaining environmental objectives
in 2023 with the Environmental Delegated Act and with
amendments to the Climate Delegated Act.
In 2022, Anora chose to voluntarily report its Taxonomy-
eligibility against these four remaining environmental
objectives based on reports containing the proposed
activities and screening criteria to give a fuller picture of

Environmental Delegated Act did not, however, include
the economic activities that would have corresponded
to Anora’s industry and activities. Therefore, Anora will
continue to report according to the published Delegated Acts
and has omitted any voluntary reporting for 2023.
For the reporting year 2023, 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

in accordance with IFRS as adopted by the European
Union and all required key performance indicators under


statements 2023. The taxonomy-eligible parts (numerators)
of the key performance indicators are based on group

Act.
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, its amendment, as well as
the EU Environmental Delegated Act.
Based on this assessment, the following taxonomy-eligible

• 5.4 Renewal of waste water collection and treatment
- Anora operates waste water treatment systems in its
plants. The upgrades and renewals to these systems
improve waste water quality and help minimize
the environmental impact. Currently, the energy
efficiency improvements of these improvements
cannot be quantified, resulting in non-alignment with
the Taxonomy.
• 4.24 Production of heating and cooling 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.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 44
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
• 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 89% of total utilised fleet) on a cost-
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.
Companies are required to describe how double counting

allocated to the activities assessed to be Taxonomy-eligible.
The activities listed above correspond well with income and


allocated based on the assumptions above.
In terms of Taxonomy-eligible capital expenditure,



and air-conditioning equipment. These investments were
deemed Taxonomy-eligible on the basis of purchased
output from other companies’ Taxonomy-eligible activities,
notably the activities 7.3 Installation, maintenance and

maintenance, and repair of charging stations for electric
vehicles in buildings. During the reporting year, Anora


since these investments are connected to a manufacturing
activity that is not considered Taxonomy-eligible itself,
Anora has applied the precautionary principle and excluded
them from its Taxonomy reporting.
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

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

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 2023. Anora’s existing
governance practices and policies are designed to avoid

kinds of risks, included social 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. During 2023, human rights were one of Anora’s key
sustainability priorities, and Anora conducted an extensive
human rights assessment on its operations. Based on
the assessment, Anora also started unifying its sustainable
procurement practices and building a shared human
rights due diligence approach and thus, working towards
compliance to the Minimum Safeguards. Nevertheless,
the few Taxonomy-eligible activities that Anora has

do not meet the substantial contribution criteria for those
activities.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 45
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2023
Financial year 2023 Year Substantial contribution criteria DNSH criteria
Economic Activities (1) Code (2)
Turnover
(3)
Proportion
of
turnover,
year 2023
(4)
Climate
Change
Mitigation
(5)
Climate
Change
Adaptation
(6)
Water
(7)
Pollution
(8)
Circular
Economy
(9)
Biodiversity
(10)
Climate
Change
Mitigation
(11)
Climate
Change
Adaptation
(12)
Water
(13)
Pollution
(14)
Circular
Economy
(15)
Biodiversity
(16)
Minimum
Safeguards
(17)
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
turnover, year
2022 (18)
Category
enabling
activity
(19)
Category
transitional
activity (20)
EUR
million % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
TAXONOMY-ELIGIBLE ACTIVIES
Environmentally sustainable activities
(Taxonomy-aligned)
Turnover of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
0 0.0% 0% N/A
Of which enabling
Of which transitional
Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Production of heating and
cooling from bionenergy
CCM
4.24
0.8 0.1% 0.1%
Freight transport services by road CCM 6.6 12.6 1.7% 1.2%
Turnover of Taxonomy-non-aligned
activities
13.4 1.8% 1.3%
Turnover of Taxonomy-eligible
activities (A.1+A.2)
13.4 1.8% 1.3% N/A
TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities
713.1 98.2% 98.7%
TOTAL 726.5 100 % 100 %
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 46
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2023
Financial year 2023 Year Substantial contribution criteria DNSH criteria
Economic Activities (1) Code (2)
CapEx
(3)
Proportion
of CapEx,
year 2023
(4)
Climate
Change
Mitigation
(5)
Climate
Change
Adaptation
(6)
Water
(7)
Pollution
(8)
Circular
Economy
(9)
Biodiversity
(10)
Climate
Change
Mitigation
(11)
Climate
Change
Adaptation
(12)
Water
(13)
Pollution
(14)
Circular
Economy
(15)
Biodiversity
(16)
Minimum
Safeguards
(17)
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
CapEx, year
2022 (18)
Category
enabling
activity
(19)
Category
transitional
activity (20)
EUR
million % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
TAXONOMY-ELIGIBLE ACTIVIES
Environmentally sustainable activities
(Taxonomy-aligned)
CapEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
0 0.0%
Of which enabling
Of which transitional
Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
Renewal of waste water collection
and treatment
CCM 5.4 0.03 0.1% 0.0%
Installation, maintenance and
repair of energy efficiency
equipment
CCM 7.3 0.22 1.0% 0.6%
Installation, maintenance and
repair of charging stations for
electric vehicles in buildings
(and parking spaces attached to
buildings)
CCM 7.4 0.0 0.0% 0.0%
CapEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
0.25 1.1% 0.6%
CapEx of Taxonomy-eligible activities
(A.1+A.2)
0.25 1.1% 0.6%
TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible
activities
21.75 98.9% 99.4%
TOTAL 22.0 100% 100.0%
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 47
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2023
Financial year 2023 Year Substantial contribution criteria DNSH criteria
Economic Activities (1) Code (2) OpEx (3)
Proportion
of OpEx,
year 2023
(4)
Climate
Change
Mitigation
(5)
Climate
Change
Adaptation
(6)
Water
(7)
Pollution
(8)
Circular
Economy
(9)
Biodiversity
(10)
Climate
Change
Mitigation
(11)
Climate
Change
Adaptation
(12)
Water
(13)
Pollution
(14)
Circular
Economy
(15)
Biodiversity
(16)
Minimum
Safeguards
(17)
Proportion of
Taxonomy-
aligned (A.1.) or
-eligible (A.2.)
OpEx, year
2022 (18)
Category
enabling
activity
(19)
Category
transitional
activity (20)
EUR
million % Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y; N; N/EL Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
TAXONOMY-ELIGIBLE ACTIVIES
Environmentally sustainable activities
(Taxonomy-aligned)
OpEx of environmentally
sustainable activities
(Taxonomy-aligned) (A.1)
0 0.0%
Of which enabling
Of which transitional
Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
OpEx of Taxonomy-eligible but
not environmentally sustainable
activities (not Taxonomy-aligned
activities) (A.2)
0.0 0% 0%
OpEx of Taxonomy-eligible activities
(A.1+A.2)
0.0 0% 0%
TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible
activities
17.6 100% 100%
TOTAL 17.6 100% 100%
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 48
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Contextual information about turnover KPI

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 share
of Anora’s Taxonomy-eligible turnover is very low,
because the majority of Anora’s business does 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

Contextual information about CapEx KPI

the Disclosures Delegated Act, additions to tangible
and intangible assets before depreciation, impairment,
amortisation and excluding fair value changes during


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. The Taxonomy-eligible CapEx
investments correspond to additions to tangible assets in

installation of charging stations for electric vehicles.
Contextual information about OpEx KPI
No operating expenditure corresponding to eligible activities
under the Climate Delegated Act was 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. Corporate Governance and
Remuneration Statements for 2023 will be published during
week 12 in 2024.. Corporate Governance and Remuneration
Statements for 2023 will be published during week 12 in
2024.
Annual General Meeting 2023
Anora Group Plc’s Annual General Meeting (AGM) was held

statements and discharged the members of the Board of

2022. The AGM 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 had informed
the company that Authorized Public Accountant Markku
Katajisto will be the auditor in charge.
Dividend distribution
The AGM approved the proposal by the Board of Directors to


instalment of EUR 0.11 per share was paid on 28 April 2023
and the second instalment of EUR 0.11 per share was paid
on 25 October 2023.
Board of Directors
In accordance with the proposal by the Shareholders’
Nomination Board, the AGM elected seven members to
the Board of Directors for a term expiring at the 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 AGM.
As at the end of 2023, the members of the Board of
Directors were Kirsten Ægidius, Michael Holm Johansen,
(Chairperson), Christer Kjos, Annareetta Lumme-Timonen,
Jyrki Mäki-Kala (Vice Chairperson), Florence Rollet, Torsten
Steenholt, Arne Larsen (elected employee member), and
Jussi Mikkola (elected employee member).
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 49
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Board Committees as at the end of 2023
In the Board’s organisational meeting after the AGM,
the following members were appointed to the Board’s
committees:
• Audit Committee: Jyrki Mäki-Kala (Chairperson),
Christer Kjos, Annareetta Lumme-Timonen and Torsten
Steenholt.
• Human Resources Committee: Michael Holm Johansen
(Chairperson), Kirsten Ægidius and Florence Rollet.
Board remuneration
The remuneration of the Board members elected by
the AGM consists of annual fees as follows:
• EUR 65,000, Chairperson
• EUR 46,500, Vice Chairperson
• EUR 31,000, 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
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 AGM 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

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 AGM, however, no longer
than until 30 June 2024. Further information on this
authorisation can be found in the stock exchange release
published on 19 April 2023.
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

acquisitions or other arrangements or for other purposes
resolved by the Board of Directors. The authorisation is
valid until the close of the next AGM, however, no longer
than until 30 June 2024. Further information on this
authorisation can be found in the stock exchange release
published on 19 April 2023.
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 AGM, however, no longer
than until 30 June 2024. Further information on this
authorisation can be found in the stock exchange release
published on 19 April 2023.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 50
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Shareholders’ Nomination Board at the
end of 2023
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 Jyrki Mäki-
Kala, Chairperson and Vice Chairperson of Anora’s Board
of Directors, respectively, act as expert members in
the Nomination Board.
The proposals of Anora’s Shareholders’ Nomination
Board to the Annual General Meeting to be held on 17 April
2024, including the the remuneration to be paid to the Board
members, have been submitted in a stock exchange release
dated 7 December 2023. More information can be found in
the said stock exchange release.
Chief Executive Officer and Group
Management
Mr Pekka Tennilä served as the CEO of Anora Group Plc
until 25 October 2023. The Board of Directors appointed Mr
Jacek Pastuszka CEO of Anora Group Plc as of 25 October
2023.
Members of Anora’s Executive Management Team as at
31 December 2023 were:
• Jacek Pastuszka, CEO
• Sigmund Toth, CFO
• Janne Halttunen, SVP, Wine
• Kirsi Puntila, SVP, Spirits
• Hannu Tuominen, SVP, Anora Industrial
• Mikkel Pilemand, SVP, Chief Growth Officer (CGO)
• Kirsi Lehtola, SVP, Chief HR Officer (CHRO).
Ms Johana Sundén, CHRO, and Mr Risto Gaggl, SVP
Industrial, were appointed to their respective positions and
members of the Executive Management Team as of
1 January 2024.
Shares and shareholders
Anora’s shares are listed on the Nasdaq Helsinki
with the trading code “ANORA” and the ISIN code
FI4000292438. All shares carry one vote and have equal
voting rights. At the end of the reporting period, Anora
Group Plc’s share capital amounted to EUR 61,500,000 and
the number of issued shares was 67,553,624.
Flagging notifications

SHARE INFORMATION
2023 2022
Number of shares issued 67,553,624 67,553,624
Share capital, EUR 61,500,000 61,500,000
Earnings per share, EUR -0.59 0.26
Dividend per share, EUR 0.22* 0.22
Share performance, Nasdaq Helsinki
Closing price on the last day of trading, EUR 4.36 7.36
Highest price, EUR 7.69 11.04
Lowest price, EUR 3.98 6.62
Volume 19,221,711 13,082,762
Market capitalisation, EUR million 294.5 497.2
*Proposal by the Board of Directors
Illustration of Anora's ownership
structure 31 Dec 2023*
0.3%
29.9%
23.5%
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. Rest of the world
comprises shareholdings by directly registered foreign shareholders.
1
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 51
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Shareholder structure
At the end of the period, Anora had 28,168 (28,074) registered shareholders in Euroclear
Finland. The share of nominee-registered shares was 40.9% (45.6%).
LARGEST SHAREHOLDERS REGISTERED IN EUROCLEAR FINLAND 31 DEC 2023
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 641,000 0.9
6 Veritas Pension Insurance Company Ltd. 456,170 0.7
7 Savolainen Heikki Antero 359,571 0.5
8 OP Life Assurance Company Ltd 276,376 0.4
9 Eriksson Trygve 200,000 0.3
10 Rantalainen-Yhtiöt Oy 190,000 0.3
10 biggest owners in total 19,741,543 29.2
Source for shareholder data: Euroclear Finland
Management’s ownership
On 31 December 2023, 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 173,743 shares corresponding to 0.26% of
the total number of shares.
Authorisations, option and share-based
incentive programmes
During 2023, 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

acquisitions or other arrangements, or for remuneration
purposes. The Board of Directors has not used any of
these authorisations during 2023. 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 2023
Sector
Number of
shares % of shares
Public sector 17,569,501 26.0
Financial and insurance corporations 12,397,619 18.4
Households 15,841,587 23.5
Non-financial corporations 4,420,785 6.5
Non-profit institutions 696,624 1.0
Rest of the world 16,627,508 24.6
Total 67,553,624 100.0
Nominee-registered shares 27,629,079 40.9
DISTRIBUTION BY SIZE OF HOLDING 31 DEC 2023
Number of shares
Number of
shareholders
% of
shareholders
Number of
shares % of shares
1–100 9,538 33.86 540,101 0.80
101–500 11,834 42.01 3,120,582 4.62
501–1,000 3,486 12.38 2,666,944 3.95
1,001–5,000 2,810 9.98 5,888,222 8.72
5,001–10,000 293 1.04 2,102,251 3.11
10,001–50,000 163 0.58 3,227,277 4.78
50,001–100,000 18 0.06 1,444,667 2.14
100,001–500,000 17 0.06 3,487,630 5.16
500,001– 9 0.03 45,075,950 66.73
Total 28,168 100.0 67,553,624 100.0
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 52
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Risks and risk management
Risk management
At Anora, the purpose and objetives of risk management are
to:
• support the implementation of the Anora Group’s
strategy,
• identify risks, and methods for mitigating the probability
and impacts, of physical injury, property damage, hazards
and business interruption,
• ensure profitability development and contribute to
shareholder value;
• ensure business continuity.
Anora’s Risk Management Policy, which has been approved
by the Board of Directors, describes the goals, principles
and responsibilities for risk management at Anora Group
and the related reporting principles as well as operating
methods. Furthermore, the policy ensures that risk
management has a collective operating model throughout
Anora, and that the enterprise risk management process is
closely intrgrated with other management processes (such as
the strategy and planning processes).
Anora’s risk management policy is based on the COSO
ERM framework, the SFS-ISO 31000 standard “Risk
management. Principles and instructions” and on
the corporate governance code of Finnish listed companies
(Corporate Governance Code). Climate-related risk

the Task Force on Climate-related Financial Disclosures
(TCFD) recommendations.
Strategic risks
• Business environment
• Technology
• Regulation
• Climate change
• Reputation
• M&A
• Human rights
Hazard risks
• Health and safety
• Property
• Environment
• Fires, accidents and
natural catastrophes
Financial risks
• Liquidity
• 
• 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
Risk management at Anora is a systematic process,
the purpose of which is to guarantee comprehensive and

monitoring, and reporting on risks for the entire group. It is
an integral part of Anora Group’s planning and management
process, decision-making, day-to-day management,
and operations, as well as of the control and reporting
procedures.
The risk management policy describes the goals,
principles and responsibilities of Anora’s risk management
and the related reporting principles. In line with this, risks
are reported in accordance with the Group’s reporting
responsibilities. The management principles of the Group’s

in the Notes to the Consolidated Financial Statements,
under section 4.1; Financial risk management. The risk
management function is also responsible for the global
insurance programs of the Group. The business areas and
functions report on risks and changes in risks on a quarterly
basis. The Executive Management Team supports and
coordinates risk management and reports key risks and
material changes therein to the Audit Committee of
the Board of Directors in connection with the interim

supported by the Audit Committee, reviews the most



uncertainties, and changes therein, in the interim reports

GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 53
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Most significant risks and uncertainties
For reporting and risk assessment purposes, risks are
categorised into four categories: strategic risks, operational

Strategic and business risks relate to decision-making,
resource allocation, business model, management systems
and the capacity to respond to changes in the operating
environment (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

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 (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


following table contains a summary of key uncertainties with

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, and
Estonia. 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.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 54
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Price risk associated with commodities
Barley
In 2023, Anora consumed approximately 174.0 (184.3)
million kilos of grain to produce ethanol and starch. The
availability of high-quality domestic barley was ensured until
the end of 2023 through contract farming and cooperation
with farmers and grain stores. The market price of barley




been hedged against with derivative instruments.
Electricity
A strong increase in the market price of electricity is

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 2023, the hedging ratio for deliveries for
the next 12 months was 83.6% (78.0%), in line with the set
targets. In 2023, the average hedging ratio was 86.8%
(76.2%).

applied to the hedges against electricity price risk, and hedge

in 2023 as in 2022.
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 purchases physical electricity through bilateral

Sensitivity to market risks
The table below describes the sensitivity of the Group’s

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

2023 2023 2022 2022
EUR million Income statement Equity Income statement Equity
+/-10% electricity - +/-0.2 - +/-0.8
+/-10% change in EUR/NOK exchange rate +/-1.2 +/-1.3 -/+0.1 +/-0.3
+/-10% change in EUR/SEK exchange rate +/-2.9 +/-3.9 +/-6.4 +/-1.9
+/-10% change in EUR/USD exchange rate -/+1.1 -/+1.3 -/+0.2 -/+0.6
+/-10% change in EUR/AUD exchange rate -/+0.1 -/+0.1 -/+0.0 -/+0.1
+/-1%-points change in interest rates -2.1 - -1.6 -0.0
SENSITIVITY OF FINANCIAL INSTRUMENTS TO MARKET RISKS (BEFORE TAXES) IN ACCORDANCE WITH IFRS 7
The sensitivity to foreign exchange rate changes is
calculated from the net currency position resulting from



An increase of one percentage point in interest rates



Short-term risks and uncertainties

to the overall economic development, impact of regulatory
changes, the geopolitical environment, disruptions in
supply chains, price and availability of raw materials and
cyber threats. In addition, the short-term risks relate also
to the integration of acquired businesses, as well as related


development and its impacts on consumption, to

regulatory changes in areas such as alcohol taxation,
excise taxation and legislation on consumer behaviour.

pose several risks and may lead to a recession within
the operating area and also more widely as a result of
the weakening economic sentiment and consumer spending.

funding, foreign exchange rates and interest rates may be

capital markets.
Unexpected and unforeseen disruptions in the supply


GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 55
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
changes in the prices of raw materials. Risks can be caused
by internal or external events.
The increasingly unstable geopolitical environment could


relate to an escalation of the already existing global supply
chain disruptions with also potential threats to shipping
routes, to the supply of grain, and to further price increases
across all input costs. The risk of rising energy and fuel
prices and volatility in production volumes continue.
Possible problems with the availability and cost of raw
materials, labour, energy and fuel may impact the operating

in the near future. Certain risks have already partly
materialised.
Cyber risk threat levels have also increased lately and
government authorities have warned of an increasing
threat and number of cyber-attacks. There have been
reported cases of cyber-attacks on business enterprises
and government authorities with severe impacts. Anora
continuously improves its cyber security operations and
technologies. It cannot be excluded that also Anora or its
business partners could face cyber-attacks with potentially

operations.
Events after the period
Anora announced on 8 January 2024 that Anora Group’s
CFO Sigmund Toth has resigned from his position. He will
continue in his current position until 1 August 2024, at
the latest. Sigmund remains highly committed to contribute
to the company’s success during his notice period, including
ensuring a smooth handover to his successor.
The Board of Directors of Anora Group Plc announced on
14 February 2024 that it has approved the commencement
of a new plan period within the share-based long-term
incentive scheme for the management and selected key
employees. Eligible for participation in PSP 2024-2026
are approximately 50 individuals, including the members
of Anora Group’s Executive Management Team. If
the performance targets set for PSP 2024–2026 are fully
achieved, the aggregate maximum number of shares to
be paid based on this plan is approximately 1,294,000
shares (referring to gross earning before the withholding
of the applicable payroll tax). The aggregate maximum

RSP 2024–2026 is approximately 129,000 shares (referring
to gross earning before the withholding of the applicable
payroll tax).
Anora announced on 8 March 2024 that Stein Eriksen
(49), M.Sc. (Econ.), has been appointed as CFO and
a member of the Executive Management Team of Anora
Group from the beginning of August 2024. He will report
to Jacek Pastuszka, CEO. Stein Eriksen’s latest position
has been CFO of the Norwegian stock-listed company XXL
ASA, the largest sports retailer in the Nordic countries. He
has also acted in a combined role as the Interim CEO and
CFO of XXL ASA. Prior to that, he has had a long career
at the Norwegian stock-listed blue-chip company Orkla,
a leading industrial investment company focused on brands
and consumer-oriented companies. At Orkla, Stein’s most
recent positions were CFO at Orkla Care and SVP Finance at
Orkla ASA.
Dividend proposal

the parent company’s distributable funds amount to EUR



The Board of Directors proposes to the Annual General
Meeting to be held on 17 April 2024 that a dividend of EUR 0.22

Anora aims to maintain a stable or increasing dividend with
a dividend payout ratio of 50–70% of the result for the period, as

Annual General Meeting 2024
Anora Group Plc’s Annual General Meeting 2024 is planned to be
held on 17 April 2024. The notice to and instructions for the AGM
are published by a stock exchange release, and on Anora’s
website.
Outlook for 2024
Market outlook
In 2024, the volumes in our key markets are expected to
be slightly lower than in 2023 due to challenging economic
conditions.
Guidance
In 2024, Anora’s comparable EBITDA is expected to be EUR
75–85 million (2023: EUR 68.2 million).
Helsinki, 19 March 2024
Anora Group Plc
Board of Directors
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 56
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Key ratios of the Group
2023 2022 2021 2020 2019
Income statement
Net sales EUR million 726.5 702.7 478.2 342.4 359.6
Comparable EBITDA EUR million 68.2 76.1 71.7 52.4 44.8
(% of net sales) % 9.4 10.8 15.0 15.3 12.4
EBITDA EUR million 67.5 67.9 62.9 40.3 43.1
Comparable operating result (EBIT) EUR million 34.8 42.9 51.2 35.0 26.8
(% of net sales) % 4.8 6.1 10.7 10.2 7.5
Operating result EUR million -31.3 34.7 42.4 22.9 25.1
Result before taxes EUR million -53.9 23.4 38.6 21.3 24.6
Result for the period EUR million -39.9 18.1 31.2 17.8 18.4
Items affecting comparability (EBITDA) EUR million -0.7 -8.2 -8.8 -12.1 -1.7
Items affecting comparability (EBIT) -66.1 -8.2 -8.8 -12.1 -1.7
Balance sheet
Cash and cash equivalents EUR million 212.7 91.4 168.9 130.7 64.2
Total equity EUR million 408.7 481.4 507.9 156.3 151.2
Non-controlling interest EUR million 0.5 0.9 0.9 - -
Borrowings EUR million 216.3 247.5 162.6 116.1 82.6
Invested capital EUR million 624.1 728.9 670.5 272.4 233.8
Profitability
Return on equity (ROE) % -9.0 3.6 9.3 11.6 12.2
Return on invested capital (ROI) % -1.7 4.2 7.4 7.7 8.5
2023 2022 2021 2020 2019
Financing and financial position
Net debt EUR million 137.5 300.9 126.0 -3.9 28.9
Gearing % 33.7 62.5 24.8 -2.5 19.1
Equity ratio % 35.9 37.0 41.2 34.3 37.8
Net cash flow from operating activities EUR million 135.3 -0.4 50.8 56.1 52.6
Net debt/comparable EBITDA 2.0 4.0 1.8 -0.1 0.6
Share-based key ratios
Earnings / share (Basic) EUR -0.59 0.26 0.67 0.49 0.51
Earnings / share (Diluted) EUR -0.58 0.26 0.67 0.49 0.51
Equity / share EUR 6.04 7.13 7.52 4.33 4.18
Dividend per share EUR 0.22 0.22* 0.45 0.75 0.42
Dividend/earnings % -37.2 83.1* 67.6 152.2 82.6
Effective dividend yield % 5.0 3.0* 4.1 7.5 5.1
Price/Earnings -7.4 27.8 16.3 20.3 16.1
Closing share price on the last day of trading EUR 4.36 7.36 10.86 9.98 8.18
Highest EUR 7.69 11.04 12.00 10.40 8.22
Lowest EUR 3.98 6.62 9.62 7.01 7.08
Market value of shares at the end of period EUR million 294.5 497.2 733.6 360.7 295.6
Number of shares outstanding at the end of period 67,553,624 67,553,624 67,553,624 36,140,485 36,140,485
Personnel
Personnel end of period 1,219 1,251 1,055 637 632
Average number of personnel 1,273 1,159 799 650 682
*Board’s dividend proposal for the financial year 2022 EUR 0.22 per share.
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 57
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
RECONCILIATION OF ALTERNATIVE PERFORMANCE MEASURES (APM) TO IFRS
FIGURES AND ITEMS AFFECTING COMPARABILITY (IAC)
EUR million 2023 2022
Items affecting comparability
Net gains or losses from business and assets disposals 12.3 0.8
Cost for closure of business operations and restructurings -7.1 -0.1
Costs related to the closed voluntary pension scheme - 0.3
Costs related to the merger of Altia and Arcus -1.3 -4.6
Inventory fair valuation -0.3 -2.0
Other major corporate projects -4.3 -2.6
Total items affecting comparability -0.7 -8.2
Comparable EBITDA
Operating result -31.3 34.7
Less:
Depreciation, amortisation and impairment 98.8 33.2
Total items affecting comparability 0.7 8.2
Comparable EBITDA 68.2 76.1
% of net sales 9.4 10.8
Comparable EBIT
Operating result -31.3 34.7
Less:
Total items affecting comparability 66.1 8.2
Comparable EBIT 34.8 42.9
% of net sales 4.8 6.1
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW SUSTAINABILITY
Annual Report 2023 58
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
THE DEFINITIONS AND REASONS FOR THE USE OF FINANCIAL KEY INDICATORS
Key figure Definition Reason for the use
Gross profit Total net sales + total operating
income – material and services
Gross profit is the indicator to measure the
performance
Gross margin, % Gross profit / Total net sales
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 SUSTAINABILITY
Annual Report 2023 59
REPORT BY THE BOARD
OF DIRECTORS
GOVERNANCE FINANCIAL STATEMENTS
Financial
Statements
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
Contents to the financial statements
SYMBOLS
Accounting policies
Critical estimates and
management judgements
CONSOLIDATED FINANCIAL STATEMENTS 128
Consolidated income statement 128
Consolidated statement of comprehensive income 128
Consolidated balance sheet 129
Consolidated statement of cash flows 130
Consolidated statement of changes in equity 131
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 132
General information 132
1 Operating result 134
1.1 Segment information 135
1.2 Revenues from operations 137
1.3 Other operating income 139
1.4 Materials and services 139
1.5 Employee benefit expenses 140
1.6 Other operating expenses 140
1.7 Research and development expenditures 140
2 Operative assets and liabilities 141
2.1 Goodwill and other intangible assets 142
2.2 Property, plant and equipment 145
2.3 Right of use assets 148
2.4 Inventories 149
2.5 Trade and other receivables 150
2.6 Employee benefit obligations 150
2.7 Trade and other payables 151
2.8 Provisions 151
3 Financial items and capital structure 152
3.1 Finance income and expenses 153
3.2 Financial assets and liabilities 153
3.2.1 Financial assets 153
3.2.2 Financial liabilities 154
3.2.3 Classification and fair values of financial assets
and liabilities 157
3.3 Derivative instruments and hedge accounting 159
3.4 Equity 161
4 Financial and capital risk 163
4.1 Financial risk management 164
4.2 Capital risk management 169
5 Consolidation 170
5.1 General consolidation principles 171
5.2 Changes in group structure 172
5.3 Subsidiaries 174
5.4 Associated companies and joint arrangements 176
6 Other notes 179
6.1 Income tax expense 180
6.2 Collaterals, commitments and contingent assets
and liabilities 184
6.3 Related party transactions 184
6.4 Share-based payments 186
6.5 Events after the reporting period 188
PARENT COMPANY FINANCIAL STATEMENTS 189
Anora group plc income statement (FAS) 189
Anora group plc balance sheet (FAS) 190
Anora group plc statement of cash flows (FAS) 192
Notes to Anora Group Plc financial statements 193
BOARD OF DIRECTORS’ PROPOSAL FOR
THE DISTRIBUTION OF PROFITS 202
THE AUDITORS’ NOTE 202
AUDITOR’S REPORT 203
INDEPENDENT AUDITOR’S REASONABLE ASSURANCE REPORT
ON ANORA GROUP OYJ’S ESEF FINANCIAL STATEMENTS 209
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
Annual Report 2023 127
GOVERNANCE FINANCIAL STATEMENTSBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
CONSOLIDATED INCOME STATEMENT
EUR million
Note
1 Jan–31 Dec 2023
1 Jan–31 Dec 2022
NET SALES
1.2
726.5
702.7
Other operating income
1.3
10.9
Materials and services
1.4
-441.4
-414.3
Employee benefit expenses
1.5
-103.8
-93.8
Other operating expenses
1.6
-134.1
-137.6
Depreciation, amortisation and impairment
2.1–2.3
-98.8
-33.2
OPERATING RESULT
-31.3
34.7
Finance income
3.1
24.6
5.6
Finance expenses
3.1
-47.4
-17.5
Share of profit in associates and joint ventures and income from interests
in joint operations
5.4
0.2
0.6
RESULT BEFORE TAXES
-53.9
23.4
Income tax expense
6.1
13.9
-5.3
RESULT FOR THE PERIOD
-39.9
18.1
Result for the period attributable to:
Owners of the parent
-39.9
17.9
Non-controlling interests
0.0
0.2
Earnings per share for the result attributable to owners of the parent, EUR
Basic
-0.59
0.26
Diluted
-0.58
0.26
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
EUR million
Note
1 Jan–31 Dec 2023
1 Jan–31 Dec 2022
Result for the period
-39.9
18.1
OTHER COMPREHENSIVE INCOME/(LOSS)
Items that will not be reclassified to profit or loss
Remeasurements of post-employment benefit obligations
-0.1
0.1
Related income tax
6.1
0.0
-0.0
Total
-0.1
0.1
Items that may be reclassified to profit or loss
Cash flow hedges
-6.7
3.1
Translation differences
3.4
-12.8
-16.9
Income tax related to these items
6.1
1.0
-0.7
Total
-18.5
-14.5
Other comprehensive income for the period, net of tax
-18.6
-14.4
TOTAL COMPREHENSIVE INCOME/(LOSS) FOR THE PERIOD
-58.5
3.7
Total comprehensive income attributable to:
Owners of the parent
-58.4
3.5
Non-controlling interests
-0.1
0.2
The notes are an integral part of the consolidated financial statements.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
128Annual Report 2023
FINANCIAL STATEMENTS
Consolidated financial statements
CONSOLIDATED BALANCE SHEET
EUR million
Note
31 Dec 2023
31 Dec 2022
ASSETS
Non-current assets
Goodwill
2.1
304.3
310.5
Other intangible assets
2.1
206.3
226.1
Property, plant and equipment
2.2
62.7
76.7
Right-of-use assets
2.3
67.9
136.8
Investments in associates and joint ventures and interests in joint
operations
5.4
12.3
20.7
Financial assets at fair value through other comprehensive income
3.2.1
0.7
0.7
Other receivables
3.2.1
0.0
0.0
Deferred tax assets
6.1
0.0
0.6
Total non-current assets
654.1
772.1
Current assets
Inventories
2.4
144.2
186.2
Trade and other receivables
2.5
110.1
241.9
Derivatives receivables
0.8
5.8
Current tax assets
6.1
3.9
Cash and cash equivalents
212.7
91.4
Assets held for sale
5.4
7.6
-
Total current assets
481.6
529.2
TOTAL ASSETS
1,135.7
1,301.3
EUR million
Note
31 Dec 2023
31 Dec 2022
EQUITY AND LIABILITIES
Equity attributable to owners of the parent 3.4
Share capital
61.5
61.5
Invested unrestricted equity fund
336.8
336.8
Legal reserve
0.0
0.5
Hedge reserve
-1.5
4.2
Translation differences
-44.0
-33.0
Retained earnings
54.5
110.7
Equity attributable to owners of the parent
407.3
480.5
Non-controlling interests
0.5
0.9
Total equity
407.8
481.4
Non-current liabilities
Deferred tax liabilities
6.1
36.5
57.3
Borrowings
3.2.2
214.8
216.0
Non-current liabilities at fair value through profit or loss
3.2.2
0.1
0.6
Lease liabilities
3.2.2
120.7
132.4
Other liabilities
0.0
0.0
Employee benefit obligations
2.6
2.4
2.7
Total non-current liabilities
374.5
409.1
Current liabilities
Borrowings
3.2.2
1.5
31.5
Current liabilities at fair value through profit or loss
3.2.2
0.6
-
Lease liabilities
3.2.2
13.3
12.4
Provisions
2.8.
3.9
-
Trade and other payables
2.7
329.6
364.4
Derivatives liabilities
2.2
0.2
Current tax liabilities
2.2
2.3
Total current liabilities
353.4
410.9
Total liabilities
727.9
820.0
TOTAL EQUITY AND LIABILITIES
1,135.7
1,301.3
The notes are an integral part of the consolidated financial statements.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
129Annual Report 2023
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CASH FLOWS
EUR million
Note
1 Jan-31 Dec 2023
1 Jan-31 Dec 2022
CASH FLOW FROM OPERATING ACTIVITIES
Result before taxes
-53.9
23.4
Adjustments
Depreciation, amortisation and impairment
2.1-2.3
98.8
33.2
Share of profit in associates and joint ventures and
income from investments in joint operations
5.4
-0.2
-0.6
Net gain on sale of non-current assets
1.3, 1.6
-12.2
-0.9
Finance income and costs
3.1
22.8
11.9
Other adjustments
0.2
-0.1
Adjustments total
109.3
43.5
Change in working capital
Change in inventories, increase (-) / decrease (+)
8.3
-29.2
Change in trade and other receivables, increase (-) / decrease (+)
119.8
0.0
Change in trade and other payables, increase (+) / decrease (-)
-18.9
-15.6
Change in working capital
109.2
-44.8
Interest paid
3.1
-28.2
-11.8
Interest received
3.1
12.0
2.7
Other finance income and expenses paid
3.1
-8.0
-2.6
Income taxes paid
-5.2
-10.7
Financial items and taxes
-29.4
-22.4
NET CASH FLOW FROM OPERATING ACTIVITIES
135.3
-0.4
EUR million
Note
1 Jan-31 Dec 2023
1 Jan-31 Dec 2022
CASH FLOW FROM INVESTING ACTIVITIES
Payments for property, plant and equipment and intangible assets
2.1-2.2
-12.6
-10.7
Proceeds from sale of property, plant and equipment
and intangible assets
1.3
0.9
1.2
Proceeds from financial assets at fair value through other
comprehensive income
0.0
-
Proceeds received from disposals of subsidiaries and business
operations (net of cash)
52.3
-
Acquisitions of subsidiaries and business operations
-0.1
-85.9
Interest received from investments in joint operations
5.4
0.9
0.9
Dividends received
3.1
0.2
0.1
NET CASH FLOW FROM INVESTING ACTIVITIES
41.6
-94.3
CASH FLOW FROM FINANCING ACTIVITIES
Changes in commercial paper program
-30.0
10.0
Proceeds from borrowings
-
293.5
Repayment of borrowings
3.2.2
-1.5
-234.9
Repayment of lease liabilities
3.2.2
-11.1
-12.0
Dividends paid and other distributions of profits
3.4
-15.1
-30.4
NET CASH FLOW FROM FINANCING ACTIVITIES
-57.7
26.2
CHANGE IN CASH AND CASH EQUIVALENTS
119.2
-68.5
Cash and cash equivalents at the beginning of the period
91.4
168.9
Translation differences on cash and cash equivalents
2.1
-9.0
Change in cash and cash equivalents
119.2
-68.5
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
3.2.3
212.7
91.4
The notes are an integral part of the consolidated financial statements.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
130Annual Report 2023
FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Invested Equity attributable
unrestricted Translation Retained to owners of the Non-controlling
EUR million
Note
Share capital
equity fund
Legal reserve
Hedge reserve
differencesearningsparent company
interests
Total equity
Equity at 1 January 2022
61.5
336.8
0.4
1.7
-15.0
121.6
507.0
0.9
507.9
Total comprehensive income
Result for the period
-
-
-
-
-
17.9
17.9
0.2
18.1
Other comprehensive income (net of tax)
Cash flow hedges
-
-
-
2.4
-
-
2.4
-
2.4
Translation differences
3.4
-
-
-
-
-18.0
1.1
-17.0
0.0
-16.9
Remeasurements of post-employment benefit obligations
-
-
-
-
-
0.1
0.1
-
0.1
Total comprehensive income for the period
-
-
-
2.4
-18.0
19.0
3.5
0.2
3.7
Transactions with owners
Dividend distribution
-
-
-
-
-
-30.5
-30.5
-0.2
-30.7
Share based payment
-
-
-
-
-
0.6
0.6
-
0.6
Total transactions with owners
-
-
-
-
-
-29.9
-29.9
-0.2
-30.2
EQUITY AT 31 DECEMBER 2022
61.5
336.8
0.5
4.2
-33.0
110.7
480.5
0.9
481.4
Equity at 1 January 2023
61.5
336.8
0.5
4.2
-33.0
110.7
480.5
0.9
481.4
Total comprehensive income
Result for the period
-
-
-
-
-
-39.9
-39.9
0.0
-39.9
Other comprehensive income (net of tax)
Cash flow hedges
-
-
-
-5.7
-
-
-5.7
-0.0
-5.7
Translation differences
3.4.
-
-
-
-
-11.0
-1.7
-12.7
-0.1
-12.8
Remeasurements of post-employment benefit obligations
-
-
-
-
-
-0.1
-0.1
-
-0.1
Total comprehensive income for the period
-
-
-
-5.7
-11.0
-41.8
-58.4
-0.1
-58.5
Transactions with owners
Dividend distribution
-
-
-
-
-
-14.9
-14.9
-0.2
-15.1
Share-based payments
-
-
-
-
-
0.0
0.0
-
0.0
Total transactions with owners
-
-
-
-
-
-14.8
-14.8
-0.2
-15.1
Transfer to reserve
-
-
-0.5
-
-
0.5
0.0
-
0.0
EQUITY AT 31 DECEMBER 2023
61.5
336.8
0.0
-1.5
-44.0
54.4
407.3
0.5
407.8
The notes are an integral part of the consolidated financial statements.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
131Annual Report 2023
FINANCIAL STATEMENTS
Notes to the consolidated financial statements
GENERAL INFORMATION
Information on Anora
Anora Group Plc (‘company’, ‘parent company’), a public limited
liability company, and its subsidiaries (together ‘Anora Group’,
‘Anora’ or ‘Group’) is a leading wine and spirits brand house in
the Nordic region . Anora has a broad portfolio of iconic brands,
including Koskenkorva, Linie, Skagerrak, Chill Out, Ruby Zin,
Wongraven, O.P. Anderson and Falling Feather. Key brands are
exported to over 30 markets globally.
Together with partners Anora brings the world of drinks to
the Nordics. Anora has a strong partner portfolio which include
several well-known wine producers from all over the world, as
well as spirits producers with well-known spirits brands, like
Jack Daniels, Fireball, Fernet Branca, Jose Cuervo, Larsen and
Underberg.
Anora’s business operations also include world-class 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.
Anora’s customers include alcohol retail monopolies, alcoholic
beverage wholesale outlets, restaurants, grocery stores, travel trade,
importers in the export markets and industrial customers.
Anora Group Plc, the parent company of Anora Group, is
domiciled in Helsinki, Finland. Anora Group Plc is a Finnish
publicly listed company. Anora’s shares are listed in Nasdaq
Helsinki. The registered address of the Company is Kaapeliaukio 1,
FI-00180 Helsinki, Finland. Copies of the consolidated financial
statements are available online at www.anora.com or at the Group’s
headquarters at Kaapeliaukio 1, FI-00180 Helsinki, Finland.
Anora Group Plc’s Board of Directors has approved these
financial statements for publication in its meeting on 19 March
2024. According to the Finnish Limited Liability Companies Act,
shareholders have the right to approve or reject the financial
statements in the Annual General Meeting held after the publication
of the financial statements. The Annual General Meeting also has
the right to make a decision to amend the financial statements.
Basis of preparation
The consolidated financial statements for the year ended 31
December 2023 are prepared in accordance with IFRS Accounting
Standards complying with the SIC and IFRIC interpretations
in force and approved by EU on 31 December 2023. Notes
to the consolidated financial statements also comply with
the requirements of the Finnish Accounting Act and Limited
Liability Companies Act.
The consolidated financial statements for the year ended 31
December 2023 has been prepared on a historical cost basis, except
for equity investments and derivatives. The consolidated financial
statements are presented in millions of euros. The figures are
rounded to the nearest million with one decimal, and therefore
the sum of individual figures may deviate from the total presented.
If the figure is EUR 0, it is shown as a hyphen.
From 1 January 2023, IASB’s amendment on IAS 12 regarding
deferred taxes related to Assets and Liabilities arising from a Single
Transaction became effective. This amendment regulates the way that
entities account for deferred tax on transactions that lead to initial
recognition of both an asset and a liability and narrow the scope
of the initial recognition exception so that it no longer applies to
transactions that give rise to equal taxable and deductible temporary
differences. Amendment is applied to transactions that occur on or
after the beginning of the earliest comparative period presented.
For Anora Group, this applies to all temporary differences
related to right of use assets and lease liabilities at the beginning of
the earliest comparative period, January 1, 2022. This amendment
has had no effect on the income statement or balance sheet figures
of the Group, as deferred taxes on temporary differences related
to right of used assets and lease liabilities have been historically
recognized. However resulting deferred tax assets and liabilities
were previously disclosed on a net basis on balance sheet and in
notes. Therefore the only effect for the Group from applying this
amendment is the gross presentation of deferred tax assets and
liabilities arising from leases in note 6.1.
There were no other changes in accounting standards or other
accounting requirements which entered into force from 1 January
2023 that have had material impact for Anora Group.
There are no new IFRS standards, amendments to standards and
IFRIC interpretations effective on or after January 1, 2024, that are
expected to have any material impact on the Group .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
132Annual Report 2023
FINANCIAL STATEMENTS
Accounting policies requiring management judgement
and key sources of estimation uncertainty
The preparation of financial statements requires management to
make accounting estimates which may include use of judgement in
the application of the accounting standards.
Estimates and related assumptions made in the preparation
of the financial statements, are based on the management’s best
knowledge at the reporting date. The realised results can differ from
the estimates, and any changes in estimates and assumptions are
recognised when estimates and assumptions are corrected.
Material accounting policies and critical accounting estimates
and judgements made are described to each note as follows;
• Revenue recognition - Note 1.2
• Intangible assets - Note 2.1
• Property, plant and equipment – Note 2.2
• Right of use assets – Note 2.3
• Financial assets and liabilities – Note 3.2
• Inventories – Note 2.4
• Trade and other receivables – Note 2.5
• Employee benefit obligations – Note 2.6 and 6.4
• Changes in Group structure – Note 5.2
• Income taxes – Note 6.1
Accounting note reclassifications
Where necessary, comparative information has been reclassified
to achieve consistency in disclosure with current financial year
amounts. There have been no such reclassifications in relation
to consolidated income statement or consolidated balance sheet.
Reclassifications in individual notes are further described if
material.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
133Annual Report 2023
FINANCIAL STATEMENTS
1 Operating result
Comparable
EBITDA
EUR
million
68.2
Net sales
EUR
million
726.5
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
GOVERNANCE FINANCIAL STATEMENTSREPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
Annual Report 2023 134
BUSINESS OVERVIEW
1.1 SEGMENT INFORMATION
Description of segments and principal activities
The reportable segments of Anora in these consolidated financial
statements consist of Wine, Spirits, and Industrial.
The Board of Directors of Anora is determined as the Group’s
Chief Operative Decision Maker (CODM) being responsible
for allocating resources, deciding on strategy and assessing
performance of the operating segments. The reportable segments
are based on Anora’s operating structure and internal reporting to
the CODM and used to assess the performance of the segments.
For internal reporting purposes, reporting on the segment
profit is based on internal measures of gross profit and comparable
EBITDA derived as follows:
• Net sales and direct segment expenses including costs of goods
sold reported within the Gross Profit and Comparable EBITDA
segment profit measures are measured and reported under
the same accounting principles as in the consolidated accounts.
• Expenses allocated to the segments related to shared function
costs or business support services, comprise costs such as
centralised marketing costs, IT infrastructure related costs,
shared support services, headquarter costs including finance
and treasury, communication, legal and human resource related
costs as well as certain warehousing and service fees. For internal
reporting purposes these cost allocations are based on budgeted
amounts and variances from budgeted amounts are presented
under column “Group and allocations”, and this can result
in either incurred overruns or savings compared to budgeted
amounts. These variances are not allocated to the segments for
internal reporting purposes.
• The Group and allocations column represents, in addition to
the budget variances, certain unallocated headquarter costs.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
135Annual Report 2023
FINANCIAL STATEMENTS
The reportable segments comprise the following:
Wine
The Wine segment develops, markets and sells Anora’s own wine
brands as well as partner wines to customers in the Nordic monopoly
markets and Denmark. Wine segment in Denmark also include
contract manufacturing and logistics services on behalf of other group
companies. During 2023 the Group has initiated a Center of Excellence
program in order to improve production efficiency, which mean that
contract manufacturing for wine will be concentrated in Globus Wine
in Denmark during the years to come. The change in operations did
not have a material impact on net sales or profitability of individual
segments in 2023.
Spirits
The Spirits segment develops, markets and sells Anora’s own spirits
brands and partner brands to customers in the Nordic monopoly
markets, in addition to international markets as Estonia, Latvia,
Denmark and Germany, in addition to global duty free and travel
retail and other exports.
Industrial
The Industrial segment comprises Anora’s industrial business
– industrial products and contract manufacturing (mainly for
the Spirits business but also to some extent for the Wine business),
the logistics company Vectura and supply chain operations.
1 Jan–31 Dec 2022
EUR million Wine Spirits Industrial
Group and
allocations Eliminations Group
Net sales external 309.7 233.0 160.0 0.0 0.0 702.7
Net sales internal 6.9 0.8 125.5 0.0 -133.2 0.0
Total Net sales 316.6 233.8 285.5 0.0 -133.2 702.7
Other operating revenues external 0.7 0.0 10.0 0.2 0.0 10.9
Other operating revenues internal 2.1 0.4 6.2 37.2 -45.9 -0.0
Total other operating revenues 2.8 0.4 16.2 37.4 -45.9 10.9
Materials and services -225.9 -131.8 -178.2 -0.3 121.9 -414.3
Gross Profit 93.5 102.4 123.5 37.1 -57.2 299.3
Employee benefits and other operating expenses -70.5 -66.6 -105.6 -45.9 57.1 -231.4
EBITDA 23.0 35.8 17.9 -8.8 -0.0 67.9
Items affecting comparability
1)
0.6 2.0 -0.2 5.9 0.0 8.3
Comparable EBITDA 23.5 37.8 17.7 -2.8 -0.0 76.1
EBITDA 67.9
Depreciation, amortisation and impairment -33.2
Operating profit 34.7
Industrial segment include production and/or logistics facilities in 5
main locations (Koskenkorva and Rajamäki in Finland, Gjelleråsen
in Norway, Sundsvall in Sweden and Tabasalu in Estonia). In
addition there are two small aquavit distilleries in Atlungstad in
Norway and Skåne in Sweden.
Segment net sales and results
All intragroup business transactions are made based on arm’s length
principles. The following tables set out the segment net sales and
Comparable EBITDA as well as the reconciliation of the Comparable
EBITDA to the Group’s operating result:
1 Jan–31 Dec 2023
EUR million Wine Spirits Industrial
Group and
allocations Eliminations Group
Net sales external 334.3 237.0 155.1 0.0 0.0 726.5
Net sales internal 0.0 0.0 114.3 0.0 -114.3 0.0
Total Net sales 334.3 237.0 269.5 0.0 -114.3 726.5
Other operating revenues external 0.0 0.0 8.0 12.3 0.0 20.3
Other operating revenues internal 0.0 0.0 15.6 26.1 -41.8 0.0
Total other operating revenues 0.0 0.0 23.6 38.4 -41.8 20.3
Materials and services -244.4 -137.3 -174.0 0.0 114.3 -441.4
Gross Profit 89.9 99.7 119.0 38.4 -41.8 305.4
Employee benefits and other operating expenses -82.6 -60.3 -104.0 -32.8 41.8 -237.9
EBITDA 7.3 39.5 15.1 5.6 0.0 67.5
Items affecting comparability
1)
5.0 0.8 2.4 -7.5 0.0 0.7
Comparable EBITDA 12.4 40.3 17.5 -1.9 0.0 68.2
EBITDA 67.5
Depreciation, amortisation and impairment -98.8
Operating profit -31.3
1)
Items affecting comparability comprise of 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. Gains on sale of business operations, property, plant and equipment and intangible assets are presented
in Note 1.3 and employee costs related to restructuring in Note 1.5 .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
136Annual Report 2023
FINANCIAL STATEMENTS
Other entity-wide disclosures
Net sales by geography
Net sales broken down by the segment and country for the years
ended 31 December 2023 and 2022 were as follows:
EUR million 2023 2022
Wine
Finland 48.6 47.1
Sweden 115.9 134.7
Norway 78.4 83.7
Denmark 86.8 44.2
Other countries 4.6 0.0
Wine Total 334.3 309.7
Spirits
Finland 62.4 56.3
Sweden 52.6 51.3
Norway 56.3 48.5
Denmark 20.0 18.5
Other countries 45.7 58.4
Spirits Total 237.0 233.0
Industrial
Finland 120.7 127.1
Norway 27.0 27.3
Other countries 7.4 5.6
Industrial Total 155.1 160.0
TOTAL 726.5 702.7
Significant customer relationships
The Group has significant customer relationships with Alko in
Finland, with Vinmonopolet in Norway and Systembolaget in
Sweden, related to sales from the Wine and Spirits segments. The
total net sales from Alko were approximately EUR 91.6 million
(2022: EUR 89.6 million). The total net sales from Vinmonopolet
were EUR 107.4 million (2022: EUR 90.9 million). The total net
sales from Systembolaget were around EUR 140.8 million (2022:
EUR 151.5 million). In Industrial segment net sales of EUR 43.9
million (2022: EUR 45.7 million) were derived from a single
external customer. No other single external customer represented
10 per cent or more of Anora’s total net sales for the years ended 31
December 2023 or 2022.
Non-current assets by geography
The total of non-current assets other than financial instruments and
deferred tax assets broken down by the location of the assets as at 31
December 2023 and 2022 were as follows:
EUR million 2023
2022
Restated
Finland 103.4 100.1
Sweden 43.1 40.9
Norway 339.9 438.6
Estonia 2.0 2.0
Latvia 0.6 0.4
Denmark 151.1 157.4
Other countries 1.0 10.7
TOTAL 641.1 750.1
Comparison figures from 2022 has been changed as the presented specification in the 2022 report
included a computational calculation error (Norway EUR 53.9 million, Denmark EUR -41.7 million,
Sweden EUR -8.1 million, Finland EUR -3.3 million and other countries EUR 2.8 million). The error has
had no impact on reported balance sheet figures.
1.2 REVENUES FROM OPERATIONS
Revenue recognition
The revenue is recognised at an amount of consideration
to which the Group expects to be entitled in exchange for
transferring promised goods or services to a customer. The
transaction price may include variable considerations such
as volume discounts, bonuses, marketing support, product
returns etc. The variable considerations are estimated using
the most likely value method if not yet realised in the end of
reporting period. The revenue is further adjusted with indirect
sales taxes, excise taxes, deposit and recycling fees.
The wine and spirits businesses generally only sell physical
products in the form of wine and spirits products. Sale of these
products are accounted for in the Group’s income statement
at the point in time when they are delivered to the Group’s
customers according to the delivery terms.
In contract services the contracts essentially include a single
performance obligation, being a series of distinct services such
as contract manufacturing, customer services and logistics. The
revenue recognition occurs at a point in time, when the control
of the goods is transferred to the customer according to
the delivery terms. Revenue from the sale of services is
recognised at the time of delivery of services, which in most
cases correspond with delivery of the goods manufactured or
goods distributed being delivered to the customers according to
the delivery terms. This include the Logistics business, as this
business is acting as an agent on behalf of its business partners,
and therefore the logistics services are considered completed
at the time of the goods being delivered to the customers
according to delivery terms.
The revenue from activity-based services at logistics business,
such as rent for storage of pallets, reconstruction of pallets
from larger EUR pallets to smaller quarter pallets, destruction
services, etc, is recognised over time. Input for these services
is based on actual pallet places of storage being used during
the period, actual number of pallets being reconstructed during
a period or actual volume being destructed during a period.
Primarily accounts receivable fall due 0–60 days after invoicing
date. Transaction prices do not include any significant
financing components .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
137Annual Report 2023
FINANCIAL STATEMENTS
The most significant revenue flows are generated by the sale
of own products and partner brands to Scandinavian wine and
spirit monopolies, Horeca customers, wholesalers and travel
retail customers. In addition, revenues are generated by contract
manufacturing, sale of logistic services and the sale of industrial
products, such as starch, feed and technical ethanol.
In partner supplier agreements, which entitle Group to distribute
partners’ products, Anora acts as a principal towards the end
customer having control over the product, discretion in establishing
prices and owning the inventory. Accordingly, revenue recognised is
the gross amount to which Anora is entitled to in these product sales.
The other activity based operating revenues from warehousing
services at logistics business, is recognised over time.
Critical estimates and management judgement -
Revenue recognition
Anora provides volume-based rebates, bonuses and other
discounts to their customers in open markets and on-trade
customers in the monopoly markets. These classify as variable
considerations within contracts with customers. The group
estimates such variable consideration to which it will be
entitled in exchange for transferring goods to the customers.
The variable consideration is estimated at a contract inception
based on expected sales volumes using historical and year-
to-date sales data and other information about trading with
individual customers or groups of customers. The Group
estimates discounts, rebates and bonuses using the most likely
amount method.
Contracts assets and liabilities
Contract assets represent the amount which Anora has right to
receive goods expected to be returned to inventory with respect
to return clauses in the contracts. Contract assets are measured
at the former carrying amount of the inventory less any
expected costs to recover the goods and less any impairment
losses. Contract liabilities represent the amount received
or receivable that is expected to be returned as a refund
liability. These contracts assets or liabilities are very limited
in the Group and are included in other receivables or other
payables in the Group’s balance sheet.
Excise taxes related to sales
The amount of excise tax deducted from sales revenue is significant.
The amounts of sales including tax and excise taxes are presented
below:
EUR million 2023
2022
Restated
Sales revenues deducted with revenue
adjustments 1,403.2 1,372.4
Excise tax -676.8 -669.7
Net sales 726.5 702.7
Tax share of sales revenues, % 48.2% 48.8 %
Excise tax amount in 2022 financial statements was included in an incorrect amount due
to a computational calculation error (Previously disclosed Sales revenues deducted with
revenue adjustments and Excise taxes were both higher by EUR 334.5 million, while net sales are
unchanged). The error has been corrected in the comparable figures for 2022 in this report and did
not have any impact on net sales or taxes paid, neither in presented figures in income statement,
balance sheet or cash flows.
Net Sales by revenue types
EUR million 2023 2022
Wines 334,3 309,7
Spirits 237,0 233,0
Industrial Products 71,3 75,3
Total sale of products 642,6 618,0
Contract manufacturing services 60,2 61,0
Logistics services 23,7 23,8
Total sale of services 83,9 84,8
Net sales 726,5 702,7
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
138Annual Report 2023
FINANCIAL STATEMENTS
1.3 OTHER OPERATING INCOME
Other operating income mainly includes gains on the disposal
of non-current assets, income from sale of energy, water, steam
and carbon dioxide, gains on sale of emission allowances, rental
income and related non-core business service income and contract
termination fees.
Gains on sale of subsidiaries and business operations relates to
sale of Larsen cognac business and is in its full part of Group and
Allocations figures.
EUR million 2023 2022
Gains on sale of subsidiaries and business
operations 11.6 -
Gains on sale of property, plant and equipment
and intangible assets 0.8 0.9
Gains on sale of emission allowances 0.1 1.2
Rental income 1.4 1.4
Income from sale of energy, water, steam and
carbon dioxide 4.0 4.2
Insurance compensations - 1.1
Other income 2.3 2.2
TOTAL 20.3 10.9
1.4 MATERIALS AND SERVICES
Materials and services consist of cost of material, such as barley,
wine, different spirit, liquids, ground water as well as other
ingredients needed for a variety of different drinks, packaging
materials, production costs, changes in inventories, scrapping
and obsolescence costs and external services such as logistics and
warehousing.
EUR million 2023 2022
Raw materials, consumables and goods
Cost of goods sold -428.1 -407.5
Scrapping and obsolescence and revaluation -3.8 -4.0
External services -9.5 -2.9
TOTAL -441.4 -414.3
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
139Annual Report 2023
FINANCIAL STATEMENTS
1.5 EMPLOYEE BENEFIT EXPENSES
In Anora, the total wages and salaries of personnel consists of fixed
and variable pay, allowances, short and long-term incentives and
fringe benefits.
EUR million 2023 2022
Wages and salaries -83.0 -74.0
Pension expenses
Defined contributions plans -10.5 -9.0
Defined benefit plans -0.1 0.0
Share-based payments -0.0 -0.6
Other social expenses -10.2 -10.1
TOTAL -103.8 -93.8
Employee benefit expenses include personnel related restructuring
costs of EUR 4.9 million (2022: EUR 0.1 million). The EUR 4.9
million restructuring costs is split EUR 0.7 million to Wines, EUR
0.9 million to Spirits, EUR 2.4 million to Industrial and EUR 0.9
million in Group and Allocations.
Average number of personnel during the period 2023 2022
Workers 542 538
Clerical employees 731 621
TOTAL 1,273 1,159
More information on the Group’s pension plans is presented in
Note 2.6.
Information of management remuneration is presented in
Note 6.3 related party transactions .
1.6 OTHER OPERATING EXPENSES
EUR million 2023 2022
Losses on sales and disposals of property, plant
and equipment and intangible assets -0.2 -0.2
Short term, low value and other lease related
payments -6.6 -4.7
Marketing expenses -28.0 -29.9
Travel and representation expenses -3.9 -5.2
Outsourcing services -27.3 -35.5
Repair and maintenance expenses -14.0 -14.8
Cars and transport services -7.9 -0.5
Energy expenses -11.8 -9.8
IT expenses -10.1 -12.0
Variable sales expenses -14.8 -16.0
Other expenses -9.4 -9.1
Total -134.1 -137.6
Auditor’s fees included in other operating
expenses, EUR million 2023 2022
Audit fees -1.2 -1.2
Tax consulatation 0.0 0.0
Other fees -0.1 -0.3
Total -1.4 -1.4
The table above presents fees to Group auditor
PricewaterhouseCoopers as well as other auditors of Group
subsidiaries during the year.
1.7 RESEARCH AND DEVELOPMENT
EXPENDITURES
Operating result includes research and development expenditures
amounting to EUR 2.3 million (2022: EUR 2.2 million). The R&D
expenditures represents 0.3 % of net sales in 2023 (2022: 0.3%) .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
140Annual Report 2023
FINANCIAL STATEMENTS
2 Operative
assets and
liabilities
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
GOVERNANCE FINANCIAL STATEMENTSREPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
Annual Report 2023 141
BUSINESS OVERVIEW
2.1 GOODWILL AND OTHER INTANGIBLE ASSETS
Intangible assets comprise of goodwill, marketing related
intangible assets (trademarks and company brands), customer
related intangible assets, software, other intangible assets
and prepayments for intangible assets. Intangible assets
are capitalised at cost price or fair value with deduction for
accumulated depreciation and accumulated write downs in
the event of non-transitory impairment.
Goodwill
Goodwill arising on the business acquisition is recognised
as a residual value in the excess of the aggregate of
the consideration transferred, the amount of non-controlling
interests and any previously held equity interest in
the acquiree, over the fair value of the net assets acquired.
Goodwill is measured at cost less accumulated impairment
losses. Goodwill is not amortised but is tested annually for
impairment.
For the purpose of impairment testing, goodwill is
allocated to the groups of cash generating units (CGU) that are
expected to benefit from the business combinations in which
the goodwill was generated .
Marketing related intangible assets
(Trademarks and company brands)
Marketing related intangible assets are either arising from
business acquisitions or purchased separately. Marketing
related intangible assets that have been acquired in connection
with business acquisitions are capitalised at fair value at
the time of the business acquisition, while separately purchased
marketing related intangible assets are capitalised at cost price.
Critical estimates and management judgements –
Useful lives of trademarks
On initial recognition of marketing related intangible assets,
an assessment is made on whether the asset is expected to
have definite useful lives or not. In this assessment, the Group
gives particular weight to Group’s expected use of the asset,
the customary life cycles for the assets of this type, the stability
of the sector and the business, and the probability that
the Group will succeed in maintaining the asset’s financial
lifetime, given the Group’s ability to maintain value. The Group
also devotes resources to legal control of these assets in large
and important markets.
Marketing related intangible assets with definite useful lives
are amortised by the straight-line method over the expected
useful life. The capitalised value of marketing related intangible
assets with indefinite lifetime is tested for impairment at least
once a year, or more often if there are indications that the value
of the asset has decreased.
The estimated useful lives of marketing related intangible
assets are as follows:
Trademarks with indefinite useful life: not amortized
Trademarks with definite useful life: 0–50 years
Company Brands with definite useful life: 5 years
Customer related intangible assets
(Customer relations)
Customer related intangible assets are arising from business
acquisitions and are capitalised at fair value at the time of
the business acquisition.
Customer related intangible assets are amortised by
the straight-line method over the expected useful life.
The estimated useful lives of customer related intangible
assets are as follows:
Customer relations Wine: 7–15 years
Other intangible assets
Other intangible assets include software in addition to
prepayments for intangible assets. These other intangible
assets are recognised in the balance sheet at the original cost
and depreciated over their estimated useful lives. The costs
related to other intangible assets are capitalised if it can be
demonstrated that the asset will generate the future economic
benefits, the entity controls the asset, and the purchase price
can be measured reliably. All other expenditure is recognised as
an expense when incurred.
The estimated useful lives of intangible assets are as follows:
IT-development and software: 3–10 years
Expenditure on research activities is recognised in profit or
loss in the period in which it is incurred. The Group has no
projects related to the development activities of new products
or processes qualifying for the identifiability and other criteria
regarding capitalisation under IFRS.
Accounting for emission allowances is described
in Note 6.2 .
There are no material contractual commitments for
acquisitions of intangible assets .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
142Annual Report 2023
FINANCIAL STATEMENTS
GOODWILL AND OTHER INTANGIBLE ASSETS
EUR thousand Goodwill
Trademarks and
customer relations
Software and other
intangible assets Prepayments
Other intangible
assets total
Acquisition cost at 1 January 2023 353.3 330.9 41.5 2.1 374.4
Additions - 0.1 0.3 2.6 2.9
Disposals -2.8 -16.1 -2.4 - -18.4
Effect of movement in exchange rates -10.7 -9.4 -0.9 - -10.3
Transfers between items - -0.1 3.4 -3.3 0.0
Acquisition cost at 31 December 2023 339.8 305.4 41.9 1.3 348.7
Accumulated amortisation and impairment losses at 1 January 2023 -42.8 -111.3 -37.0 - -148.3
Amortisation - -8.9 -2.3 - -11.2
Impairment losses - - -0.8 - -0.8
Accumulated amortisation on disposals and transfers 0.0 13.9 2.2 - 16.1
Effect of movement in exchange rates 7.3 1.1 0.8 - 1.8
Accumulated amortisation and impairment losses at 31 December 2023 -35.5 -105.3 -37.0 - -142.3
Carrying amount at 1 January 2023 310.5 219.5 4.6 2.1 226.1
CARRYING AMOUNT AT 31 DECEMBER 2023 304.3 200.1 4.9 1.3 206.3
Acquisition cost at 1 January 2022 327.3 300.0 40.6 0.8 341.4
Acquisition of subsidiaries 41.4 43.9 0.7 - 44.6
Additions - 0.1 0.3 1.7 2.1
Disposals - -0.4 -0.0 - -0.4
Effect of movement in exchange rates -15.4 -12.8 -0.5 - -13.3
Transfers between items - - 0.4 -0.4 0.0
Acquisition cost at 31 December 2022 353.3 330.9 41.5 2.1 374.4
Accumulated amortisation and impairment losses at 1 January 2022 -49.5 -109.5 -35.2 - -144.7
Amortisation - -8.1 -2.4 - -10.6
Accumulated amortisation on disposals and transfers - 0.4 0.0 - 0.4
Effect of movement in exchange rates 6.7 5.9 0.7 - 6.5
Accumulated amortisation and impairment losses at 31 December 2022 -42.8 -111.3 -37.0 - -148.3
Carrying amount at 1 January 2022 277.8 190.6 5.4 0.8 196.7
CARRYING AMOUNT AT 31 DECEMBER 2022 310.5 219.5 4.6 2.1 226.1
The most significant trademarks include for example, Gammel Opland, Aalborg, Gammel Dansk, Braastad, Lysholm Linie, Løiten, Hot’n’ Sweet, Renault, Xanté, Blossa, Chill Out, Explorer, 1-Enkelt and Arsenitch.
Software and other intangible assets are mainly computer software.
Impairment testing
Book value of assets are assessed to determine whether there
is any impairment at least at the end of each financial year.
If any evidence of impairment emerges (a triggering event),
the assets’ recoverable amount is estimated. The recoverable
amount is the higher of an asset’s or CGU’s fair value less costs
to sell and value in use. An impairment loss is recognised
if the carrying amount of an asset exceeds its recoverable
amount. The impairment loss is immediately recognised
in profit or loss and the estimated useful life of the asset in
question is reassessed when an impairment loss is recognised.
The impairment loss is reversed if there has been
such a positive change in the estimates used to determine
the recoverable amount of the asset or cash-generating unit,
that recoverable amount of the asset will increase the book
value of asset. Impairment losses are only reversed to
the extent that the asset’s carrying amount does not exceed
the carrying amount that would have been determined if no
impairment loss had been recognised. An impairment loss on
goodwill is never reversed.
Critical estimates and management judgements –
Impairment testing:
The preparation of calculations for the impairment testing
of goodwill requires estimates regarding the future. The
management’s estimates and related critical uncertainties
are related to the components of the recoverable amount
calculation, including the discount rate, budgets, the terminal
growth rate and development of the net sales and operating
result, including estimated cost levels of main raw materials
and energy. The discount rates reflect current assessments of
the time value of money and relevant market risk premiums
reflecting risks and uncertainties for which the future cash flow
estimates have not been adjusted .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
143Annual Report 2023
FINANCIAL STATEMENTS
The cash generating unit for impairment testing of
marketing related intangible assets is the trademark itself. To
determine the recoverable amount for these assets, future cash
flows are calculated based on “relief from royalty” method after
tax.
Impairment testing of goodwill and intangible assets
with indefinite useful life
Allocation of goodwill
Goodwill is allocated to groups of cash-generating units (CGU) that
represent the level on which the management monitors the goodwill.
The Group’s three segments are considered to form the group of
cash generating units (CGU) and represent the lowest level at which
goodwill is monitored for internal management purposes.
During 2023 there were no changes in the CGU structure. The
allocation of goodwill to CGUs is as follows:
EUR million 2023 % 2022 %
Wine 105.4 34.6% 106.3 34.2%
Spirits 198.9 65.4% 204.2 65.8%
Total 304.3 100.0% 310.5 100.0%
Impairment testing - Goodwill
The key assumptions in goodwill impairment testing are operating
result and discount rate.
The goodwill allocated to the Group’s cash-generating units is
tested for impairment annually or when there is reason to assume
that the carrying amount has exceeded the recoverable amount,
with the carrying amount compared to the recoverable amount in
the testing. The annual impairment tests have been carried out on 31
December 2023 and 31 October 2022.
The cash flow estimates used are based on CGU-specific financial
plans for the following year approved by the Group’s Board of
Directors. The forecast period applied for the calculations covers
five years, beyond which the cash flow projections are extrapolated
using a constant CGU specific long-term growth rate estimate.
The forecasted cash flows for a longer term than this have been
estimated by using an annual growth rate estimate of 2.0% which
is based on an assumption of inflation growth. The terminal growth
rate used is unchanged from 2022 impairment testing calculations.
Pre-tax discount rates reflect specific risks relating to the relevant
CGUs and the countries in which they operate. Management makes
judgements regarding the development of assumptions other than
WACC based on internal and external views of the industry’s history
and future.
The weighted average costs of capital used as discount rates for
the cash flow estimates are presented in the enclosed table:
Used pre-tax discount rate % 2023 2022
Wine 8.2% 8.0%
Spirits 8.6% 8.4%
The estimated average operating margins used in the calculations
are presented in the enclosed table:
Projected average pre-tax operating result % 2023 2022
Wine 5.6% 9.5%
Spirits 16.6% 13.2%
Based on the analyses prepared by the Group, no reasonably
possible change in any of the key assumptions would cause any of
the tested unit’s recoverable amount to decrease to be equal to its
carrying amount.
Impairment testing - Trademarks
Equivalent impairment tests are made for trademarks with
indefinite useful life and useful life of 50 years. The recoverable
amount for trademarks is calculated on the basis of relief from
royalty method after taxes whereby the brand’s annual royalty rate
is considered to be the expected long-term profit that the individual
trademarks are expected to have. The forecast period applied for
the calculations covers five years. The terminal value is based on
an assumption of inflation growth of 2 percent. The terminal growth
rate used is unchanged from 2022 impairment testing calculations.
Cash flow estimates used are discounted using a post-tax discount
rate specific for the country where each brand is predominantly sold.
Used post-tax discount rate % 2023 2022
Norwegian Brands 7.3% 7.1%
Danish Brands 6.5% 7.1%
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
144Annual Report 2023
FINANCIAL STATEMENTS
A significant proportion of the Group’s trademarks are assessed
not to have definite useful lives. These are not amortised on
an ongoing basis but are solely subject to annual impairment
testing. On initial recognition of trademarks, it is assessed whether
the trademark is expected to have definite useful lives or not. In this
assessment, the Group gives particular weight to Group’s expected
use of the trademark, the customary life cycles for trademarks of this
type, the stability of the sector and the business, and the profitability
that shall maintain the trademark’s financial lifetime given
the Group’s ability to maintain value. The Group also devotes
resources to legal control of trademarks in large and important
markets.
At the end of 2023, all of the Group’s trademarks with indefinite
useful lives were related to Spirits segment. The carrying amount
of these assets amounted to EUR 128.3 million (2022: EUR
134.3 million). Most of the trademarks within Spirits business
are trademarks that have existed for several decades, and some
have existed for several hundred years. If impairment tests show
declining curves over time, the trademark may be written down
to higher of estimated value in use and fair value less costs to sell
and a new assessment of the trademark’s estimated useful live is
performed. If it is estimated after a new assessment that the useful
life is no longer indefinite, the trademark is redefined to have
a definite useful life, whereby a straight line amortisation method is
applied for the remaining book value over the remaining useful life.
2.2 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment
Property, plant and equipment mainly consist of
manufacturing and warehouse buildings, land, and machinery
and equipment used in alcoholic beverage industry. Property,
plant and equipment are measured at historical cost less
accumulated depreciation and possible impairment losses.
If parts of an item of property, plant and equipment have
different useful lives, they are accounted for as separate
items. The subsequent costs related to the items of property,
plant and equipment are capitalised only if the future
economic benefits exceed the originally assessed standard
of performance. All other expenditure, for example ordinary
maintenance and repair costs, is recognised as an expense as
incurred. Depreciation is recognised on a straight-line basis
over the estimated useful lives of items of property, plant and
equipment. Land is not depreciated.
Government grants, for example grants received from
the State, are recognised in profit or loss in the same period
in which the related expenses are recognised. Grants that
compensate the Group for the acquisition of property, plant
and equipment are deducted from the carrying amount
adjusted with the grant received.
The estimated useful lives of property, plant and equipment
are as follows:
Buildings and structures 10–40 years
Machinery and equipment 3–20 years
Other tangible assets 3–10 years
The estimated useful lives and residual values are reviewed at
each financial year-end, and if they differ substantially from
the previous estimates, the depreciation periods are adjusted
accordingly. Impairment loss is recognised in profit or loss
to the extent the assets carrying value exceeds its recoverable
amount.
Gains and losses on the disposals of property, plant and
equipment are included in other operating income or expenses.
Rajamäki real estate is pledged as security for mortgages,
see note 6.2.
There are no material contractual commitments for
acquisitions of property, plant and equipment.
Critical estimates and management judgements
– Property, plant and equipment:
Estimation of useful life is most critical estimate related to
property, plant and equipment .
Impairment – Industrial Production Business
During 2023, the Group initiated a centre of excellence program
which resulted in production volume being moved from
the production facility in Norway to other production facilities
in Finland and Denmark. This move was a triggering event for
impairment testing of the Group’s production facility at Gjelleråsen
in Norway, which is a part of the Group’s Industrial segment.
The Industrial segment does not have any allocated goodwill or
intangible assets with indefinite useful life.
The largest asset of this production business is the Right-Of-Use
(ROU) asset related to the building premises at Gjelleråsen. This
ROU facility at Gjelleråsen is used by all business units in Norway.
The asset is allocated to the business units based on actual use of
the premises forming separate lease components. The main part
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
145Annual Report 2023
FINANCIAL STATEMENTS
of the premises is used by the Industrial Production business and
the Industrial Logistics business at Gjelleråsen. Less significant lease
components are used by Wine and Spirits businesses at Gjelleråsen.
In addition to this there are other assets used in production, such
as ROU process and bottling machinery and equipment, owned
process and bottling machinery and equipment as well as some
owned software assets related to the production business.
The Gjelleråsen Production business is as a separate cash
generating unit as it has well-defined cash flows, with revenues
stemming mainly from internal customers and an independent cost
base corresponding to the bottling and process units at Gjelleråsen.
A recoverable amount using value in use calculation was determined
as at 31 December 2023 for the Gjelleråsen Production CGU. The
calculated recoverable amount was negative due to loss making
nature of the business.
In addition, separate impairment assessments have been made
for the individual assets within the CGU.
Based on management judgement, the property lease component
can be subleased, and therefore capable of independent cashflows.
The fair value less cost of disposal (FVLCOD) was determined
of the related ROU asset using income approach. The fair value
measurement is classified as Level 3 of the fair value hierarchy
due to some unobservable inputs used in the valuation. Main
assumptions are estimated rent per square meter of NOK 1,200 with
2% annual inflation, start of sublease from 2025 for the remaining
part of the lease agreement period until end of 2036, all operating
expenses related to the premises covered by the new tenant, using
an asset specific discount rate of 11.8% before tax. The resulting
recoverable amount is EUR 11.1 million.
All other machinery and equipment, both ROU and owned,
have also been evaluated individually. The process and bottling
equipment has in general been considered not to have any second
hand market and therefore their FVLCOD was assessed as zero,
while casks, vehicles and laboratory assets have been considered to
have a fair value less cost of disposal at least corresponding to their
book value.
As a result of the above assessment, impairments related to
the Gjelleråsen Production CGU was recorded at EUR 39.0 million,
where EUR 28.0 million is related to ROU building, EUR 5.2 million
related to ROU machinery & equipment, EUR 5.5 million related
to owned machinery & equipment and EUR 0.3 million related
to software. Impairment was allocated to the assets which do not
generate independent cash flows in a way that their carrying amount
was reduced to the highest of their FVLCOD (if measurable), their
value in use (if determinable) and zero.
Impairment – Industrial Logistics Business
Vectura is the Group’s Logistics business in Norway, which is
also part of the Industrial Segment. This Logistics business has
suffered from poor profitability during recent years. In addition, as
noted above there was an impairment recorded for the production
component of the Gjelleråsen property lease. This constitute
indicators of impairment for the logistic lease component of
the Gjelleråsen property as an individual asset and the Logistics
business as a whole.
The Right-Of-Use (ROU) asset related to the building premises
at Gjelleråsen used by the Logistics business is the largest asset
for the business. In addition to this there are other assets used
in logistics operations, such as ROU logistics machinery and
equipment, owned logistics machinery and equipment as well as
some owned software assets related to the logistics business.
The Gjelleråsen Logistics business is a separate cash generating
unit as it is a separate legal company with well-defined cash
flows, with revenues stemming mainly from internal customers
and an independent cost base corresponding to the logistics from
Gjelleråsen. A recoverable amount using value in use calculation was
determined as at 31 December 2023 for the Gjelleråsen Logistics
CGU. The calculated recoverable amount was EUR 15.3 million.
The FVLCOD for the ROU asset related to the property lease
component used by the logistics business was determined using
the same valuation approach and the same key assumptions as
the valuation of ROU asset related to the property lease component
used by the Production business described above. The resulting
recoverable amount is EUR 15.5 million.
No other assets within the CGU are capable of generating
independent cash flows. Impairment was allocated to these assets in
a way that their carrying amount was reduced to the highest of their
FVLCOD (if measurable), their value in use (if determinable) and
zero.
Total impairment related to the Gjelleråsen Logistics CGU was
recorded at EUR 25.7 million, where EUR 21.7 million is related
to ROU building, EUR 1.2 million related to ROU machinery
& equipment, EUR 2.3 million related to owned machinery &
equipment and EUR 0.5 million related to software.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
146Annual Report 2023
FINANCIAL STATEMENTS
PROPERTY, PLANT AND EQUIPMENT
EUR million
Land and
water areas
Buildings and
structures
Machinery and
equipment
Prepayments and
assets under construction Total
Acquisition cost at 1 January 2023 3.0 114.4 185.5 8.8 311.7
Additions - 0.1 1.9 7.5 9.5
Disposals -0.5 -5.2 -25.7 -0.0 -31.4
Effect of movement in exchange rates - -0.0 -2.4 -0.3 -2.8
Transfers between items 0.0 2.1 7.2 -9.3 0.0
Acquisition cost at 31 December 2023 2.5 111.4 166.5 6.6 287.1
Accumulated depreciation and impairment losses at 1 January 2023 0.0 -93.9 -141.1 - -235.0
Depreciation - -2.3 -7.3 - -9.6
Impairment losses - - -8.3 -0.3 -8.6
Accumulated depreciation on disposals and transfers - 3.1 24.2 - 27.2
Effect of movement in exchange rates - 0.0 1.5 0.0 1.5
Accumulated depreciation and impairment losses at 31 December 2023 0.0 -93.2 -131.0 -0.3 -224.4
Carrying amount at 1 January 2022 3.0 20.5 44.4 8.8 76.7
CARRYING AMOUNT AT 31 DECEMBER 2023 2.5 18.3 35.5 6.4 62.7
Acquisition cost at 1 January 2022 3.0 113.4 177.5 5.3 299.3
Acquisition of subsidiaries - - 7.6 0.0 7.7
Additions 0.0 0.1 1.6 6.8 8.6
Disposals -0.0 -0.1 -0.8 -0.0 -0.9
Effect of movement in exchange rates - -0.0 -2.6 -0.2 -2.9
Transfers between items 0.0 1.0 2.1 -3.2 0.0
Acquisition cost at 31 December 2022 3.0 114.4 185.5 8.8 311.7
Accumulated depreciation and impairment losses at 1 January 2022 0.0 -91.4 -136.6 - -228.0
Depreciation - -2.6 -6.9 - -9.5
Accumulated depreciation on disposals and transfers - 0.0 0.6 - 0.6
Effect of movement in exchange rates - 0.0 1.8 - 1.8
Accumulated depreciation and impairment losses at 31 December 2022 0.0 -93.9 -141.1 - -235.0
Carrying amount at 1 January 2022 3.0 22.0 41.0 5.3 71.3
CARRYING AMOUNT AT 31 DECEMBER 2022 3.0 20.5 44.4 8.8 76.7
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
147Annual Report 2023
FINANCIAL STATEMENTS
2.3 RIGHT OF USE ASSETS
Leases
Lease is a contract, or a part of a contract that conveys
the right to use an asset for a period of time in exchange
for consideration. A contract contains a lease if there is
an identified asset and the contract conveys the right to control
the use of an identified asset for a period of time in exchange
for consideration. A right-of-use asset and a lease liability is
recognized at lease commencement date to reflect Anora’s
right to use the underlying asset and the unpaid future lease
payments respectively.
Anora mainly acts as the lessee. The Group’s leases are related
to normal business operations, such as leases on production,
distribution and administration buildings, machine & equipment
for production, vehicles, forklifts and office technology.
The lease liability is measured by discounting the expected
lease payments to the present value. Lease payments include
fixed lease payments, expected payments related to residual
value guarantees and the possible exercise price of the purchase
option if the use of the option is reasonably certain. The lease
period is the non-cancellable period of the lease. Any extension
options are added to the lease period if it is reasonably certain
that the Group will exercise such options.
Lease payments are discounted at the internal rate of return
of the lease if that rate can be readily determined. If an internal
rate of return cannot be readily determined, the incremental
borrowing rate is used as the discount rate. The criteria used to
determine the discount rate includes the class of the underlying
asset, geographical location, currency and the lessee’s credit
risk premium.
The lease liability is remeasured and adjusted against
the right of used asset if the cash flow in accordance with
the original terms and conditions of lease changes; for example,
if the lease period changes or if the lease payments change
based on a variable index or interest rate. The lease liability is
divided into current and non-current liability and is presented
on a separate line on the balance sheet.
Right-of-use assets are measured at acquisition cost based
on the amount of the initial measurement of the lease liability
less payments made at or before commencement date and lease
incentives received, adding initial direct costs and adjusting by
estimated dismantling or site restoration costs. Right-of-use
assets are depreciated over the lease period or their useful lives,
depending on which is shorter. Right-of-use assets related
to land, buildings and other real estate are depreciated in
2–32 years and right-of-use assets related to machinery and
equipment are depreciated in 2–15 years.
Right-of-use assets related to tangible assets are presented
on a separate line on the balance sheet.
The IFRS 16 standard includes exemptions concerning
leases of less than 12 months and low-value assets. Lease
liabilities are not recognised for leases of less than 12
months and low-value assets . Anora considers assets with
an acquisition cost of less than EUR 5,000 to be low-value.
Lease expenses related to leases included in the exemptions are
recognised in equal instalments over the lease period.
Lease agreements include the agreement concluded with
Destilleriveien 11 AS on the lease of production, distribution, and
administration buildings at Gjelleråsen for an irrevocable period
of 25 years as from 1 January 2012. The annual rent under this
agreement is about 8,8 million euros as from 2024. The lease
agreement of the premises at Gjelleråsen also include an option to
extend the lease by 10 years after the initial 25 years. This option
is currently considered not to be exercised and, therefore, it is not
included in the calculation of Right-Of-Use asset and Lease liability
at end of 2023 and 2022.
Lease agreements also include the agreement concluded
with Destilleri ApS on the lease of areas for a micro-distillery on
the premises in Aalborg, Denmark where the Aalborg aquavit and
Gammel Dansk Brands was historically produced. The agreement
is irrevocable until October 2031, whereafter the agreement can
be cancelled by Anora with 12 months’ notice. The agreement is
on the other hand non-cancellable by the landlord for another 18
years after October 2031. This date of cancellation by the landlord
is estimated to be the end date of the lease which was used in
calculating the Right-Of-Use asset and Lease liability at end of 2023
and 2022.
On the relocation to Gjelleråsen in 2012, agreements were
entered by former Arcus into for the lease of new machines
and equipment for the production and distribution activities at
Gjelleråsen. The contract partner for these agreements is Nordea
Finans and agreements are subject to variable interest rates. These
agreements run until 2027.
Other lease agreements include lease agreements for office
premises, other machinery and equipment, company cars, trucks,
lorries in the logistics business and lease of various office machines.
Critical estimates and management judgements –
Right of use assets:
The most critical management judgements are related to
determination of discount rates and use of any possible
extension options related to the lease contracts.
Impairment of Right-of-use assets
For details of impairment of right-of-use assets, see Note 2.2
regarding impairment of property, plant and equipment.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
148Annual Report 2023
FINANCIAL STATEMENTS
RIGHT-OF-USE ASSETS
EUR million Buildings
Machinery
and
equipment Total
Acquisition cost at 1 January 2023 158.1 35.9 194.0
Additions 6.9 2.4 9.3
Disposals -21.0 -3.5 -24.5
Effect of movement in exchange rates -6.9 -1.9 -8.8
Acquisition cost at 31 December 2023 137.0 32.9 170.0
Accumulated depreciation at 1 January 2023 -35.2 -22.1 -57.2
Depreciation -9.7 -2.9 -12.6
Impairment losses -49.7 -6.4 -56.1
Accumulated depreciation on disposals 19.8 3.3 23.1
Effect of movement in exchange rates -0.3 1.0 0.7
Accumulated depreciation at 31 December 2023 -75.0 -27.1 -102.1
Carrying amount at 1 January 2023 122.9 13.9 136.8
CARRYING AMOUNT AT 31 DECEMBER 2023 62.1 5.8 67.9
EUR million Buildings
Machinery
and
equipment Total
Acquisition cost at 1 January 2022 136.5 37.0 173.4
Acquisitions of subsidiaries 18.1 0.6 18.7
Additions 10.8 0.8 11.5
Disposals -0.5 -0.7 -1.2
Effect of movement in exchange rates -6.7 -1.7 -8.4
Acquisition cost at 31 December 2022 158.1 35.9 194.0
Accumulated depreciation at 1 January 2022 -27.6 -20.2 -47.8
Depreciation -9.9 -3.3 -13.2
Accumulated depreciation on disposals 0.5 0.4 0.9
Effect of movement in exchange rates 1.8 1.0 2.8
Accumulated depreciation at 31 December 2022
-35.2 -22.1 -57.2
Carrying amount at 1 January 2022 108.9 16.8 125.7
CARRYING AMOUNT AT 31 DECEMBER 2022 122.9 13.9 136.8
2.4 INVENTORIES
Inventories
Inventories are measured at the lower of cost and net realisable
value. Self-manufactured products are measured at standard
cost, where both fixed and variable production costs are
allocated to the standard cost of the products produced based
on different allocation keys.
Raw materials, supplies and trading goods are measured at
weighted average cost. Semi-finished products are measured at
weighted average cost. Repacked trading goods are measured
at standard cost in repacking plant.
The standard cost used for self-manufactured products and
repacked trading goods represents approximation of actual cost
under weighted average cost formula.
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.
INVENTORIES
EUR million 2023
2022
Restated
Materials and supplies 39.6 68.4
Work in progress 14.5 20.1
Finished goods 43.5 72.9
Trading goods 49.9 27.4
Other inventories 0.2 0.6
Total before obsolescence 147.7 189.3
Provision for obsolescence -3.5 -3.1
TOTAL 144.2 186.2
Inventory categories presented in 2022 Group’s financial statements included a classification
error related to initially incorrect classification of inventory of recently acquired Globus Wine
AS. In addition, provision for obsolescence has been presented on a separate line compared to
the note in the 2022 annual report. This error was corrected in 2023 financial statements, including
comparatives (Materials and supplies EUR -13.8 million, Finished goods EUR 20.5 million, trading
goods EUR -3.6 million, provision for obsolescence EUR -3.1 million). The error had no impact on
presented figures in income statement, balance sheet or cash flows.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
149Annual Report 2023
FINANCIAL STATEMENTS
Trade receivables from associated companies and joint
arrangements are included in receivables from related parties,
presented in Note 6.3.
AGEING ANALYSIS OF TRADE RECEIVABLES
EUR million 2023 2022
Trade receivables not past due 85.6 213.8
Trade receivables past due 1–90 days 10.9 12.4
Trade receivables past due over 90 days 1.5 1.8
Impairment losses -1.7 -0.8
TOTAL 96.3 227.3
CHANGES OF IMPAIRMENT LOSSES
EUR million 2023 2022
Expected credit losses at beginning of period -0.8 -0.9
Accruals for expected credit losses during
period -1.0 0.0
Reversal of accruals for expected credit losses
during period 0.1 0.4
Realized credit losses during period 0.0 -0.3
Translation differences 0.0 0.0
EXPECTED CREDIT LOSSES AT END OF PERIOD -1.7 -0.8
A significant share of the Group’s revenue is associated with the state
monopolies in the Nordic region, where there is not considered to
be material credit risk. The Group’s credit risk is otherwise spread
over a large number of small customers within the Horeca market,
industrial customers as well as a small number of distributors outside
the home markets. On this basis, the Group applies a simplified
approach to calculation of expected credit losses. The loss allowance
for trade receivables is based on the ageing of the accounts receivables,
regional portfolio and experienced historic credit losses. Forward
looking macro-economic information has been included in analysis.
2.6 EMPLOYEE BENEFIT OBLIGATIONS
Group’s pension arrangements
The Group operates various pension plans in accordance with local
conditions and practices in different countries. In the Finnish,
Norwegian, Swedish, Danish and German companies, statutory
pension obligations are arranged through pension insurance
companies, when the plans are defined contribution plans and they
are managed in accordance with local legislation and established
practice.
Gift pension and unfunded pension arrangements
In addition to the defined contribution plans, the Group has a few
gift pensions and other unfunded defined benefit plans for some
of the employees in Norway. On the transition to the defined
contribution plan in Norway, there were individuals who would
be disadvantaged in the event of early retirement at 65–67 years
of age. To compensate for this, it was agreed to that a gift pension
would be paid to all employees who were affected. As at 31.12.2023,
this pension is linked to 70 active employees and 15 retired former
employees.
In the actuarial calculated defined benefit pension plans,
the amount of the pension benefit at retirement is calculated based
on salary, years of service and life expectancy. The Norwegian
pension plans cover only few employees, thus the related pension
liabilities are not material for the Group. At the end of the reporting
period 2023 the total actuarial calculated defined benefit plan
obligations amounted to EUR 2.4 million (2022: EUR 2.7 million).
2.5 TRADE AND OTHER RECEIVABLES
Trade and other receivables
Trade receivables are carried at original invoiced amount
less any allowance for expected credit losses. An allowance
for expected credit losses recognised immediately in profit
and loss. Allowance for expected credit losses are recognised
based on lifetime expected credit losses from trade receivables
in accordance with IFRS 9. The expected credit loss model
is forward looking and expected default rates are based on
historical realised credit losses. The lifetime expected credit
loss provision is calculated using aging of the accounts
receivable and regional portfolios. Trade receivables are written
off when there is no reasonable expectation of recovery for
example the failure of a debtor to engage in a repayment plan
with the Group.
Sold trade receivables are derecognised from the balance
sheet as soon as the receivable is sold and the payment has
been received. At the time of sale, the Group derecognises
the trade receivable as the contractual right to these cash
flows expire and all the related substantial risks and rewards
have been transferred outside the Group. The costs related to
the sold receivables are recognised in Other finance expenses.
TRADE AND OTHER RECEIVABLES
EUR million 2023 2022
Trade receivables 96.3 227.3
Prepayments to customers/suppliers 3.4 6.3
Accrued income 6.2 4.0
Other receivables 4.2 4.3
TOTAL 110.1 241.9
At the end of the reporting period 2023 the sold trade receivables
amounted to EUR 173.6 million (2022: EUR 59.4 million) .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
150Annual Report 2023
FINANCIAL STATEMENTS
2.7 TRADE AND OTHER PAYABLES
EUR million 2023
2022
Restated
Trade payables 96.6 103.5
Accruals for wages and salaries and social
security contributions 13.2 13.3
Interest liabilities 0.2 0.2
Procurement expenses 10.6 12.5
Other accrued expenses 28.1 41.1
Excise tax 114.5 126.0
VAT liability 59.6 62.1
Other liabilities 6.8 5.7
TOTAL 329.6 364.4
The comparable figures for 2022 have been changed from the note in official annual report from
2022, to reflect updated categorisation of payables (Accruals for wages and salaries and social
security contributions EUR 13.2 million, Procurement expenses EUR -3.5 million, Other accrued
expenses EUR -0.8 million, Other liabilities -8.0 million). The change have had no impact on
presented figures in income statement, balance sheet or cash flows .
2.8 PROVISIONS
Provisions
A provision is recognised when the Group has a present legal
or constructive obligation as a result of a past event, and it is
probable that an outflow of economic benefits will be required
to settle the obligation and the amount of the obligation can
be reliably estimated. The amount recognised as provision is
the management’s best estimate of the costs required to settle
the existing obligation at the end of the reporting period. If part
of the obligation may potentially be compensated by a third
party, the compensation is recognised as a separate asset when
it is virtually certain that the compensation will be received.
A provision for restructuring costs is recognized only
when general recognition criteria for provision are met and
after management has prepared and approved a formal
plan to which it is committed, and it has raised a valid
expectation in those affected by the measures that it will carry
out the restructuring by starting to implement that plan or
announcing its main features.
The costs included in a provision for restructuring are
those costs that are either incremental or incurred as a direct
result of the plan or are the result of a continuing contractual
obligation with no continuing economic benefit to Anora or
a penalty incurred to cancel the contractual obligation.
At the end of 2023, the group has EUR 3.9 million of
provision related to restructuring plans. The Group had no
provisions at 31 December 2022.
EUR million
Opening
Balance
provisions
Provisions
made
during 2023
Provisions
reversed
during 2023
Translation
differences
Amount in
balance
sheet
31.12.2023
Restructuring
provisions 0.0 4.9 -1.1 0.1 3.9
TOTAL 0.0 4.9 -1.1 0.1 3.9
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
151Annual Report 2023
FINANCIAL STATEMENTS
3 Financial items
and capital
structure
Dividend
per share
EUR
0.22
Earnings
per share
EUR
-0.59
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
GOVERNANCE FINANCIAL STATEMENTSREPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
Annual Report 2023 152
BUSINESS OVERVIEW
3.1 FINANCE INCOME AND EXPENSES
FINANCE INCOME
EUR million 2023 2022
Interest income
Loans, receivables and cash and cash
equivalents 12.0 2.7
Total interest income 12.0 2.7
Foreign exchange gains
Foreign exchange gains on FX-derivatives 4.8 0.0
Foreign exchange gains on I/C loans and
cash pool accounts 8.0 2.3
Total foreign exchange gains 12.9 2.3
Dividend income
Fair value through other comprehensive
income 0.0 0.0
Total dividend income 0.0 0.0
Other financial income
Other financial income -0.2 0.7
Total other financial income -0.2 0.7
TOTAL FINANCE INCOME 24.6 5.6
FINANCE EXPENSES
EUR million 2023 2022
Interest expenses
Financial liabilities at amortised cost -22.8 -6.4
Derivatives under hedge accounting
(Interest rate risk) - -0.3
Interest expenses on lease liabilities -5.5 -5.0
Other interest expenses, pension liability 0.0 0.0
Total interest expenses -28.3 -11.7
Foreign exchange losses
Foreign exchange losses on FX-derivatives -5.8 -0.5
Foreign exchange losses on I/C loans and
cash pool accounts -8.6 -3.3
Total foreign exchange losses -14.4 -3.9
Other finance expenses
Other financial expenses -4.7 -1.9
Total other finance expenses -4.7 -1.9
TOTAL FINANCE EXPENSES -47.4 -17.5
Foreign exchange difference arising from trade receivables and trade
payables amounting to EUR 0.1 million (2022: EUR -0.7 million)
and from currency derivatives amounting to EUR -0.8 million
(2022: EUR 1.4 million) are included in operating result.
3.2 FINANCIAL ASSETS AND LIABILITIES
3.2.1 FINANCIAL ASSETS
According to IFRS 9 the classification is business model driven
and there are three classes: fair value through profit and loss,
amortised cost and fair value through other comprehensive
income. Classification is made upon initial recognition based
on the purpose of use of the asset. The basis of classification is
reassessed at each reporting date.
All purchases and sales of financial instruments are
recognised on the trade date, which is the date when the Group
commits to purchase or sell a financial instrument. Financial
assets are recognised in the balance sheet at original cost
which equals their fair value at the acquisition date. If the asset
in question is not measured at fair value through profit or
loss, transaction costs are included in the original cost of
the financial asset.
The Group derecognises a financial asset when
the contractual rights to the cash flows from the asset expire,
or the Group transfers all the substantial risks and rewards
related to the financial asset outside the Group. Financial
assets are included in non-current items of the balance sheet
when their maturity is over 12 months.
Impairment of financial assets
The impairment model requires the recognition of impairment
provision based on expected credit losses. The allowance
for credit losses is recognised based on lifetime expected
credit losses from trade receivables and contract assets.
More information on the allowance for credit losses on
trade receivables can be found in Note 2.5. Trade and other
receivables.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
153Annual Report 2023
FINANCIAL STATEMENTS
The impairment model does not apply to financial assets
measured at fair value since those are measured at fair value
which already takes into account expected credit losses.
Financial assets recognised at fair value through
profit or loss
This category includes financial assets held for trading
purposes or otherwise designated as financial assets
recognised at fair value through profit or loss by Anora Group.
Sold receivables are classified in this category. Derivative
instruments held for hedging purposes, but not qualifying for
the criteria of hedge accounting, are classified in this category.
Items in this category are initially recognised at fair value and
subsequently measured at the fair value of each reporting date,
which is the market bid price at the end of the reporting period
determined based on public price quotations in active markets.
Realised and unrealised gains and losses arising from changes
in fair values are recognised in profit or loss in financial
items in the period in which they are incurred if they relate to
hedging of financial items.
Amortised cost
Loans and receivables arise when money, goods or services
are delivered to a debtor, and they are included in current or
non-current financial assets in accordance with their maturity.
The assets in this category are held according to a business
model of which objective is to collect contractual cash flows.
In Anora, non-current receivables include loan receivables
and other receivables with the maturity of over one year.
Current receivables include trade receivables as well as cash
and cash equivalents presented under current financial assets.
Receivables are measured at amortised cost when the related
payments are fixed or determinable and the instruments are
not quoted in financial markets. The exchange rate differences
of intra-group foreign currency denominated loan receivables
are presented within financial items as foreign exchange
differences related to loans.
Fair value through other comprehensive income
The assets measured at fair value through other comprehensive income
consist of unquoted shares, that are not held for trading purposes
and at initial recognition, the Group has made a final choice that they
belong to this category. The changes in fair values are presented in
other comprehensive income .
3.2.2 FINANCIAL LIABILITIES
Financial liabilities are classified as financial liabilities at fair
value through profit or loss and financial liabilities at amortised
cost. Financial liabilities are initially measured at fair value and
recognised net of transaction costs, with the exception of items
measured at fair value through profit or loss.
A financial liability (or a part of it) is not derecognised
until the obligation specified in the contract is discharged
or cancelled or expires. A financial liability is classified as
current, unless the Group has an unconditional right to defer
the settlement of the liability for at least 12 months after
the end of the reporting period.
Financial liabilities at fair value through profit
or loss
Financial liabilities at fair value through profit or loss include
derivatives held for hedging purposes but not qualifying for
hedge accounting and put options for the purchase of non-
controlling interests. Derivatives held for hedging purposes
but not qualifying for hedge accounting are measured at fair
value, which is determined based on price quotations in active
markets at the reporting date. Realised and unrealised gains
or losses arising from the changes in fair values are recognised
through profit or loss in the financial items as incurred. The
liabilities related to options for the purchase of non-controlling
interests are estimated on the basis of pricing mechanisms
applied in the shareholder agreements .
Financial liabilities at amortised cost
This category includes the Group’s external loans from
financial institutions, loans from pension institutions,
commercial paper loans as well as trade payables. These
financial liabilities are measured at amortised cost using
the effective interest method. When loans are paid off or
refinanced, the related unamortised costs are recognised in
finance expenses. Group overdrafts in use are included in
current borrowings. In addition, Anora has a revolving credit
facility and the related fee is amortised on a straight-line basis
in other finance expenses during the term of the facility.
The exchange rate differences arising from foreign currency
denominated loans from financial institutions are disclosed
under financial items. The exchange rate differences of intra-
group foreign currency denominated loans are presented
within financial items in the foreign exchange differences of
the category financial liabilities at amortised cost.
The fair values of loans from financial institutions and
commercial paper loans are determined based on future cash
flows discounted with market interest rate at the reporting date
adjusted with Anora’s credit risk premium. At the reporting
date, the carrying amounts of the loans are not materially
different from their book values .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
154Annual Report 2023
FINANCIAL STATEMENTS
LIABILITIES AT FAIR VALUE THROUGH PROFIT AND LOSS
EUR million 2023 2022
Book value at the beginning of the period 0.6 1.3
Acquisition of subsidiares 0.0 0.0
Changes in value during period 0.1 -0.6
Interest during period 0.0 0.0
Translation differences 0.0 -0.1
Book value at the end of the period 0.8 0.6
Non-current liability 0.1 0.6
Current liability 0.6 0.0
Options for the purchase of non-controlling interests
Within the Group’s wines business, the general managers of several
subsidiaries have non-controlling interests. Most of the general
managers have put options linked to their interests and these
options can be exercised on a future date. The Group does not
have control of these shares at the end of period, nor does it have
control of the possible exercising of the put options. The value of put
options is therefore recognised as liabilities at fair value at the end of
the year.
The liabilities related to options for the purchase of non-
controlling interests are estimated on the basis of pricing
mechanisms applied in the shareholder agreements discounted for
the close of the financial year. The most important parameters in
the pricing mechanisms were the development in the share values,
measured as EBIT (operating profit) up to the estimated due date,
multiplied by a fixed market based multiple. As the basis for EBIT,
the underlying companies’ budgets and long-term plans up until
the expected due date are used. The discount rate is NIBOR or
STIBOR with duration matched to the expected due date .
BORROWINGS AND LEASE LIABILITIES
EUR million 2023 2022
Non-current
Loans from financial institutions 209.5 209.3
Loans from pension institutions 5.3 6.8
Lease liabilities 120.7 132.4
TOTAL 335.4 348.4
Current
Loans from financial institutions 0.0 0.0
Loans from pension institutions 1.5 1.5
Commercial papers 0.0 30.0
Lease liabilities 13.3 12.4
TOTAL 14.8 43.9
Interest-bearing non-current loans from financial and pension institutions
are measured at amortised cost using the effective interest method.
All of the Group’s non-current and current loans from financial
and pension institutions were nominated in euro’s as at 31 December
2023 and 31 December 2022.
The weighted average effective interest rate (p.a.) of the Group’s
loans from financial and pension institutions as at 31 December
2023 was 5.7% (2022: 3.5%).
The weighted average interest rate (p.a.) of the Group’s lease
liabilities as at 31 December 2023 was 3.7% (2022: 3.1%).
In December 2022 Anora refinanced its loan portfolio and all
existing loans from financial institutions were early repaid. Group’s
external bank loans were combined under the parent company
and terms were unified. 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. In
December 2023 Anora exercised its first extension option in relation
to its credit facilities agreement, thus extending the term loan and
revolving credit facilities maturity by one year to December 2026 .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
155Annual Report 2023
FINANCIAL STATEMENTS
THE NET DEBT
Movements in net debt the year ended 31 December 2023 and 2022 are presented in the following table:
EUR million
Cash and cash
equivalents
Loans from
financial and
pension institutions
(non-current)
Loans from
financial and
pension institutions
(current)
Lease liabilities
(non-current)
Lease liabilities
(current) Total
Net debt as at 1 January 2023 91.4 216.0 31.5 132.4 12.4 300.9
Cash flows 119.2 - -31.5 - -11.2 -161.9
Translation differences 2.2 - - -6.9 -0.5 -9.5
Other non-cash movement - -1.3 1.5 -4.8 12.5 7.9
NET DEBT AS AT 31 DECEMBER 2023 212.7 214.8 1.5 120.7 13.3 137.5
Net debt as at 1 January 2022 168.9 136.1 26.5 120.8 11.6 126.0
Cash flows -68.5 63.6 5.0 - -12.0 125.1
Translation differences -9.0 - - - - 9.0
Acquisitions of subsidiaries - 18.0 - 17.3 1.4 36.6
Other non-cash movement - -1.6 - -5.7 11.4 4.2
NET DEBT AS AT 31 DECEMBER 2022 91.4 216.0 31.5 132.4 12.4 300.9
Derivative instruments
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
pursuant to IFRS 9. These derivatives are recognised at fair
value on the trade date and they are subsequently measured
at fair value at the reporting date. Derivative instruments and
hedge accounting are described in Note 3.3.
The fair values of derivatives equal the amount that
the Group 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 .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
156Annual Report 2023
FINANCIAL STATEMENTS
3.2.3 CLASSIFICATION AND FAIR VALUES OF FINANCIAL ASSETS AND LIABILITIES
FAIR VALUES AND THE CARRYING AMOUNTS IN THE CONSOLIDATED BALANCE SHEET FOR EACH FINANCIAL INSTRUMENT BY CLASSES:
2023
EUR million Note
Derivatives,
hedge accounting
Fair value through
profit or loss Amortised cost
Fair value through
other
comprehensive
income
Carrying amounts
of items in
the balance sheet Fair value Level
Financial assets
Non-current financial assets
Unquoted shares
3.2.1. - - - 0.7 0.7 0.7 3
Other non-current receivables - - 0.0 - 0.0 0.0
Current financial assets
Trade and other receivables
2.5. - - 96.3 - 96.3 96.3
Derivative instruments/Forward exchange contracts 0.0 -0.0 - - 0.0 0.0 2
Derivative instruments/Commodity derivatives 0.8 - - - 0.8 0.8 2
Cash and cash equivalents
4.1. - - 212.7 - 212.7 212.7
Assets held for sale - - 7.6 - 7.6 7.6
TOTAL 0.8 0.0 316.6 0.7 318.1 318.1
Financial liabilities
Non-current financial liabilities
Borrowings
3.2.2. - - 214.8 - 214.8 214.8 2
Lease liabilities
3.2.2. - - 120.7 - 120.7 120.7 2
Non-current liabilities at fair value through profit or loss - 0.1 - - 0.1 0.1 3
Other non-current liabilities - - 0.0 - 0.0 0.0
Current financial liabilities
Borrowings
3.2.2. - - 1.5 - 1.5 1.5 2
Lease liabilities
3.2.2. - - 13.3 - 13.3 13.3 2
Current liabilities at fair value through profit or loss
3.2.2. - 0.6 - - 0.6 0.6 3
Trade and other payables
2.7. - - 96.6 - 96.6 96.6
Derivative instruments/Forward exchange contracts
2.7. 1.7 0.5 - - 2.2 2.2 2
TOTAL 1.7 1.3 446.8 0.0 449.8 449.8
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
157Annual Report 2023
FINANCIAL STATEMENTS
2022
EUR million Note
Derivatives,
hedge accounting
Fair value through
profit or loss Amortised cost
Fair value through
other
comprehensive
income
Carrying amounts
of items in
the balance sheet Fair value Level
Financial assets
Non-current financial assets
Receivables from interests in joint operations - - 7.6 - 7.6 7.6
Unquoted shares
3.2.1. - - - 0.7 0.7 0.7 3
Other non-current receivables - - 0.0 - 0.0 0.0
Current financial assets
Trade and other receivables
2.5. - - 229.7 - 229.7 229.7
Derivative instruments/Interest rate derivatives 0.0 - - - 0.0 0.0 2
Derivative instruments/Forward exchange contracts 0.8 0.1 - - 0.9 0.9 2
Derivative instruments/Commodity derivatives 5.4 - - - 5.4 5.4
Cash and cash equivalents
4.1. - - 91.4 - 91.4 91.4
TOTAL 6.2 0.1 328.7 0.7 335.7 335.7
Financial liabilities
Non-current financial liabilities
Borrowings
3.2.2. - - 216.0 - 216.0 216.0 2
Lease liabilities
3.2.2. - - 132.4 - 132.4 132.4 2
Non-current liabilities at fair value through profit or loss - 0.6 - - 0.6 0.6 3
Other non-current liabilities - - 0.0 - 0.0 0.0
Current financial liabilities
Borrowings
3.2.2. - - 31.5 - 31.5 31.5 2
Lease liabilities
3.2.2. - - 12.4 - 12.4 12.4 2
Trade and other payables
2.7. - - 104.5 - 104.5 104.5
Derivative instruments/Interest rate derivatives 0.0 - - - 0.0 0.0 2
Derivative instruments/Forward exchange contracts 0.1 0.1 - - 0.2 0.2 2
TOTAL 0.1 0.7 496.9 - 497.7 497.7
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 (i.e. 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 reported fair value level is based on
the lowest level of input information that is significant in determining
the fair value.
At the reporting date due to short maturity fair value of trade
receivables and other short-term receivables and liabilities equal to
their value in the balance sheet.
The table above presents the classification of financial instruments.
The levels 1–3 of fair value hierarchy reflect the significance of inputs
used in determining the fair values. In level one, fair values are based
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
158Annual Report 2023
FINANCIAL STATEMENTS
3.3 DERIVATIVE INSTRUMENTS
AND HEDGE ACCOUNTING
When the Group applies IFRS 9 hedge accounting to foreign
currency, interest rate and electricity derivatives, the effective portion
of the fair value change is recognised in other comprehensive income
and presented within equity in the hedge reserve.
When hedge accounting is applied
In Anora, 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, the Group 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. Hedge accounting is a method
of accounting with the purpose to allocate one or several
hedging instruments so that their fair value changes offset
in full or partly the changes in fair value or cash flow arising
from the hedged risk in profit or loss during the period, for
which the hedge is designated. In the beginning of the hedging
arrangement, Anora 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.
IFRS 9 requires that the effectiveness of hedging instruments
is tested prospectively. 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. Under IFRS 9
the hedging relationship is regarded to be highly effective
when there is an economic relationship between the hedged
item and the hedging instrument. Hedging ratio is defined as
a relationship between the quantity of the hedging instrument
and the quantity of the hedged item. 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 hedge reserve. Forward points
are included to hedging relationship. The effective portion
of the unrealised changes in the fair value of derivatives
designated and qualifying as cash flow hedges are recognised
in other comprehensive income and presented in the hedge
reserve in equity. The ineffective portion is immediately
recognised in finance income or expenses in profit or loss. 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 no longer meets the criteria of hedge accounting,
the gain or loss accumulated in equity is recognised through
finance income or expenses.
When hedge accounting is not applied
The accounting for gains and losses arising from fair
value measurement is dependent on the purpose of use of
the derivative. In Anora, the changes in the fair values of
derivative instruments are immediately recognised in profit or
loss in finance income or expense if the derivative in question
is related to hedging of commercial cash flows (purchases
and sales) and hedge accounting is not applied. The fair value
changes of other derivative instruments are immediately
recognised in profit or loss in finance income or expense items
if hedge accounting is not applied. Derivatives, to which hedge
accounting is not applied, are acquired to minimise the profit
and/or cash flow effects related to business operations or
financing.
NOMINAL VALUES OF DERIVATIVE INSTRUMENTS
EUR million 2023 2022
Derivative instruments designated for
cash flow hedging
Interest rate derivatives - 20.0
Forward exchange contracts 64.1 24.1
Commodity derivatives, electricity 1.2 2.4
0.0TWh 0.1TWh
Derivative instruments, non-hedge accounting
Forward exchange contracts 39.3 5.6
The nominal values of derivative instruments are based on amounts
and market prices at the reporting date .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
159Annual Report 2023
FINANCIAL STATEMENTS
EFFECTS OF HEDGE ACCOUNTING ON THE FINANCIAL POSITION AND PERFORMANCE
EUR million EURAUD EURGBP EURUSD EURNOK EURSEK USDDKK USDSEK
Foreign currency forwards 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022 2023 2022
Carrying amount (asset) 0.0 - - - - - - 0.0 - 0.3 - 0.5 - -
Carrying amount (liability) - 0.0 0.0 - 0.0 0.1 0.5 0.0 1.0 - 0.1 - 0.1 -
Notional amount 1.0 1.1 1.2 - 2.1 1.0 12.0 3.3 36.5 12.9 10.0 5.0 1.3 -
Maturity date Feb–Dec 2024 Feb–Dec 2023 Feb–Dec 2024 - Feb–Dec 2024 Feb–Dec 2023 Feb–Dec 2024 Feb–Dec 2023 Feb–Dec 2024 Feb–Dec 2023 Feb–Dec 2024 Feb–Dec 2023 Feb–Aug 2024 -
Hedge ratio 1:1 1:1 1:1 - 1:1 1:1 1:1 1:1 1:1 1:1 1:1 1:1 1:1 -
Change in discounted value of outstanding
hedging instruments since 1 January 0.0 -0.1 0.0 - 0.1 -0.1 -0.5 -0.1 -1.3 0.0 -0.7 0.5 -0.1 -
Change in value of hedged item used to
determine hedge effectiveness 0.0 0.1 0.0 - -0.1 0.1 0.5 0.1 1.3 0.0 0.7 -0.5 0.1 -
Positive and negative fair values of unrealised derivatives and their
net amount are presented below. Currency derivatives are under
netting agreements. The master netting agreements in respect of
derivatives do not meet the criteria for offsetting in the balance
sheet owing to legally enforceable right not existing currently .
OFFSETTING FINANCIAL ASSETS AND LIABILITIES
EUR million 2023 2022
Derivative assets:
Fair value, gross 0.8 6.4
Fair value, under netting agreements 0.0 -0.1
Fair value, net 0.8 6.3
Derivative liabilities:
Fair value, gross 2.2 0.2
Fair value, under netting agreements 0.0 -0.1
Fair value, net 2.2 0.0
EUR million
Interest rate swap 2023 2022
Carrying amount (asset) - 0.0
Carrying amount (liability) - -
Notional amount - 20.0
Maturity date - 04/2023
Hedge ratio - 1:1
Change in discounted value of outstanding
hedging instruments since 1 January - 0.6
Change in value of hedged item used to
determine hedge effectiveness - -0.6
Weighted average hedged rate for the year - 0.0
EUR million
Commodities - Electricity 2023 2022
Carrying amount (asset) 0.8 5.4
Notional amount 1.2 2.4
TWh 0.04 0.1
Maturity date 2024–2025 2023–2025
Hedge ratio 1:1 1:1
Change in discounted value of outstanding
hedging instruments since 1 January -4.6 3.1
Change in value of hedged item used to
determine hedge effectiveness 4.6 -3.1
Weighted average hedged price EUR/MWh 30.5 32.3
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
160Annual Report 2023
FINANCIAL STATEMENTS
3.4 EQUITY
Share capital
At the end of the reporting period, Anora Group Plc’s share capital
amounted to EUR 61,500,000 and the number of issued shares was
67,553,624.
All shares issued have been paid in full. The shares have no
nominal value. Each share has one vote at the Annual General
meeting and equal rights to dividend and other distribution of
assets. The company does not hold its own shares.
NUMBER OF SHARES
2023 2022
Number of outstanding shares in the beginning
of the financial year (Basic) 67,553,624 67,553,624
Total number of outstanding shares at the end
of the financial year (Basic) 67,553,624 67,553,624
Number of outstanding shareoptions in the
beginning of the financial year 632,200 0
Options granted during period 472,200 656,400
Options forfeited during period -133,950 -24,200
Options exercised during period 0 0
Total number of outstanding shareoptions at
the end of the financial year 970,450 632,200
Total number of oustanding shares at the end
of the financial year (Diluted) 68,524,074 68,185,824
Invested unrestricted equity fund
The invested unrestricted equity reserve includes the subscription
price of shares to the extent that it has not been recorded in share
capital according to specific resolution.
Fair value reserve
The fair value reserve represents the change in the fair value of
financial assets measured at fair value through other comprehensive
income.
Legal reserve
Legal reserve represents a statutory part of the foreign subsidiary’s
result.
Hedge reserve
The hedge reserve includes the fair value changes of derivative
instruments used for cash flow hedging for effective hedges.
CASH FLOW HEDGE RESERVE
EUR million Currency forwards Interest rate swaps Commodities Total hedge reserves
Opening balance 1 January 2022 0.3 -0.4 1.8 1.7
change in fair value of hedging instruments recognized in OCI -1.9 0.8 8.4 7.3
Reclassified from OCI to profit or loss - included in purchases/sales
adjustments 1.4 - - 1.4
Reclassified from OCI to financial income and expenses - -0.4 - -0.4
Reclassified from OCI to electricity purchases - - -4.8 -4.8
Deferred tax 0.0 0.0 -1.1 -1.0
Closing balance 31 December 2022 -0.2 0.0 4.4 4.2
change in fair value of hedging instruments recognized in OCI -3.1 0.0 -4.4 -7.5
Reclassified from OCI to profit or loss - included in purchases/sales
adjustments 0.8 0.0 - 0.8
Reclassified from OCI to financial income and expenses - - - 0.0
Reclassified from OCI to electricity purchases - - 0.8 0.8
Deferred tax 0.3 - -0.2 0.2
Closing balance 31 December 2023 -2.2 0.0 0.7 -1.5
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
161Annual Report 2023
FINANCIAL STATEMENTS
Translation differences
Translation differences comprise all foreign exchange differences
arising from the translation of the foreign subsidiaries’ financial
statements. The Group’s accumulated translation differences
amounted to negative EUR 44.0 million at 31 December 2023
(31.12.2022: negative EUR 33.0 million).
Earnings per share
Basic earnings per share is calculated by dividing the result
for the period attributable to owners of the parent company
by the weighted average number of shares outstanding during
the reporting period.
Diluted earnings per share has been calculated on the same basis
as basic earnings per share except that it reflects the impact of any
potential commitments the Group has to issue shares in the future.
The table at the start of this note show all outstanding ordinary and
diluted shares as of 31.12.2023.
EARNINGS PER SHARE
2023 2022
Result for the period attributable to the
shareholders of the parent company, EUR
million -39.9 17.9
Weighted average number of shares
outstanding basic 67,553,624 67,553,624
Weighted average number of shares
outstanding diluted 68,664,920 67,929,466
Earnings per share (EUR) basic -0.59 0.26
Earnings per share (EUR) diluted -0.58 0.26
Dividend
The Board of Directors proposes to the Annual General Meeting that
a dividend of EUR 0.22 (EUR 0.22 for 2022) per share be paid for
the financial year 2023.
ANORA GROUP PLC DISTRIBUTABLE FUNDS
EUR million 2023 2022
Invested unrestriced equity 52.2 52.2
Retained earnings 74.4 65.9
Distribution of dividends -14.9 -30.4
Profit for the period -11.5 38.9
TOTAL DISTRIBUTABLE FUNDS 100.2 126.6
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
162Annual Report 2023
FINANCIAL STATEMENTS
4 Financial and
capital risk
Gearing
33.7%
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
GOVERNANCE FINANCIAL STATEMENTSREPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
Annual Report 2023 163
BUSINESS OVERVIEW
4.1 FINANCIAL RISK MANAGEMENT
Financial risk management principles
The aim of Anora’s financial risk management is to ensure
the Group’s financial stability and availability of sufficient financing
options in different market situations. In addition, the aim is
to support the business operations to identify business-related
financial risks and their management, and to limit and for some
extent to hedge against without speculating material financial risk
that the core business creates. The guiding principles of Anora’s
financial risk management are documented and described in
the Group Treasury Policy.
The Group is exposed to various market risks. Changes in
these risks affect the company’s assets, liabilities and anticipated
transactions. The risks are caused by changes in interest rates,
currencies and commodity market prices. Selected derivative
instruments can be used to manage the risks resulting from
these market risks. Anora mainly hedges against risks that
impact the Group’s cash flow, and, if deemed appropriate, also
certain foreign currency denominated items in the balance sheet.
Derivatives are solely used to hedging against the above-mentioned
risks. The principles of IFRS 9 hedge accounting are applied
to certain interest rate, foreign exchange as well as electricity
derivatives. Financial risk management is executed as part of
the Group’s risk management, according to the Risk Management
Principles approved by the Board of Directors. Anora’s principles
aiming towards financial, credit and operational continuity form
the basis for financial risk management.
Risk management process
Special process features related to financing are described below
in connection with the descriptions of market, liquidity and credit
risks. The financial risk exposure is regularly reported to the Audit
Committee and Anora’s Board of Directors. The most significant
principle decisions concerning risk management are made by
the company’s Board of Directors.
Financial risk management
Financial matters are reported regularly to the Group management.
The Board of Directors processes all substantial financial matters,
such as the Group’s external funding arrangements.
Tasks and responsibilities regarding Anora’s financial operations
and financial risk management are described in the financial risk
management principles. The Group Treasury is responsible for
securing financing, identifying risks and hedging of those risks
according to Group Treasury Policy. The business units and
subsidiaries are responsible for managing the risks associated with
their own operations and forecasting cash flows.
Risk concentrations
Anora carefully analyses the financial risks and risk concentrations
related to its operations. Risk concentrations identified as a result of
this assessment are described in connection with the descriptions of
market and credit risks.
Market risk
Anora defines market risk as a risk where the fair values of financial
instruments or future cash flows fluctuate as a result of changes
in market prices. The most significant market risks for the Group
are currency risk, interest rate risk and price risks for barley and
electricity.
1. Currency risk
Anora is exposed to currency risks as it has operations in several
different countries. The objective of the Group’s currency risk
management is to limit the effect of exchange rate fluctuations on
the Group’s cash flow in EUR. The most significant currencies are
NOK, SEK, USD, AUD and DKK.
Transaction risk
Transaction risk is caused by foreign currency denominated items in
the balance sheet and future cash flows related to sales, purchases
and return of capital.
Foreign exchange exposures are monitored at the Business
level and future foreign currency cash flow risks of either sales or
purchase contracts are hedged. The estimated future commercial
exposures are evaluated by the Businesses, and the level of hedging
is per Group Treasury Policy’s mandate. Hedge accounting in
accordance with IFRS 9 is applied to most of the hedges. Hedging
transactions are executed with forward exchange contracts or
options for the following 24 months at the most, predominantly
following the pricing towards state monopolies in the Nordic region.
In Finland this takes place every six months, in Norway every four
months and in Sweden every six months.
The two tables below present the Group’s net currency position,
first on the basis of financial instruments recorded on the balance
sheet and secondly including on a net basis also the estimated future
foreign currency net cash flows. The currency position resulting
from the financial instruments in accordance with IFRS 7 consists
of trade receivables, trade payables, cash and cash equivalents,
the Group’s internal and external loans and derivative instruments.
The net currency risk has been taken into account in the table
if the transaction currency is other than the Company’s functional
currency .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
164Annual Report 2023
FINANCIAL STATEMENTS
TABLE 1: THE GROUP’S NET CURRENCY POSITION
AT 31 DECEMBER
The net currency position resulting from the
financial instruments in accordance with IFRS 7
EUR million 2023 2022
EUR-SEK -29.5 62.0
EUR-NOK -11.8 -0.8
EUR-USD 10.8 8.3
EUR-AUD 1.1 1.1
The Group’s net currency position at 31
December including also the hedged
commercial cash flows
EUR million 2023 2022
EUR-SEK 7.0 124.2
EUR-NOK 31.2 58.2
EUR-USD -2.5 -18.0
EUR-AUD 0.1 -1.7
Translation risk
Translation risk is mainly caused by the parent company’s foreign
currency denominated net investments in foreign subsidiaries,
which cause a translation difference in equity in the Group’s
balance sheet upon consolidation. The Group Treasury regularly
analyses the translation risk and reports any material issues
to the management. The most significant net investments are
denominated in SEK and NOK. The translation risk has not been
hedged .
2. Interest rate risk
The objective of interest rate risk management is to minimise
the impact of fluctuations arising from interest rate changes on
the Group’s profit. In December, Anora extended the maturity of
its bullet loan and RCF by one year. At 31 December 2023 the total
nominal amount of loans was amounting to EUR 216.8 million
(2022: 218.3) and was divided as follows:
• The EUR 210.0 million bullet loan matures in December 2026.
• The EUR 6.8 million pension loan matures in January 2028. The
interest rate is fixed for the whole loan period.
The maximum amount under Anora’s domestic commercial paper
program is EUR 100 million. The amount of issued commercial
papers at 31 December 2023 was EUR 0.0 (2022: 30.0) million.
The sold trade receivables are derecognised at the time of trade
with no obligation to repurchase. The related costs are recognised
in other financial expenses. The trade receivables are current
receivables and the related interest rate risk is not hedged. The
amount of the sold trade receivables was EUR 173.6 million at 31
December 2023 (2022: 59.4 million).
3. Price risk associated with commodities
Barley
In 2023, Anora consumed approximately 174.0 (184.3) million kilos
of grain to produce ethanol and starch. The availability of high-
quality domestic barley was ensured until the end of 2023 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.
At the end of 2023, the hedging ratio for deliveries for the next
12 months was 83.6% (78.0%), in line with the set targets. In 2023,
the average hedging ratio was 86.8% (76.2%).
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 effective in 2023 as in 2022.
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 purchases physical
electricity through bilateral fixed-price contracts.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
165Annual Report 2023
FINANCIAL STATEMENTS
4. Sensitivity to market risks
The following table describes the sensitivity of the Group’s profit
and equity (before taxes) to changes in electricity prices, interest
and foreign exchange 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.
TABLE 2: SENSITIVITY ANALYSES
Sensitivity of financial
instruments to market risks
(before taxes) in accordance
with IFRS 7 2023 2022
EUR million
Income
statement Equity
Income
statement Equity
+/-10% electricity - +/-0,2 - +/-0,8
+/-10% change in EUR/NOK
exchange rate +/-1,2 +/-1,3 -/+0,1 +/-0,3
+/-10% change in EUR/SEK
exchange rate +/-2,9 +/-3,9 +/-6,4 +/-1,9
+/-10% change in EUR/USD
exchange rate -/+1,1 -/+1,3 -/+0,2 -/+0,6
+/-10% change in EUR/AUD
exchange rate -/+0,1 -/+0,1 -/+0,0 -/+0,1
+1%-points parallel shift in
interest rates -2.1 - -1.6 -0,0
At the end of 2023 the total Group floating rate liability position
consists of floating rate liabilities EUR 210.0 million (2022: EUR
210.0 million).
5. Liquidity risk
The Group’s activities are subject to seasonal fluctuations and
alcohol sales increase in periods with national celebrations and
public holidays, especially at Easter and Christmas. The fourth
quarter is normally the best quarter for the Group which is also
reflected in cash flows.
In order to manage the liquidity risk, Anora continuously
maintains sufficient liquidity reserves, which at the end of 2023
comprised Group’s both EUR 10 million and NOK 100 million
overdraft facilities and a EUR 150 million revolving credit facility.
At the end of December 2023, no revolving credit facility was in use
(2022: EUR 0.0 million). The facilities mature in December 2026.
More detailed information on the Group’s external loans is provided
in the interest rate risk section.
TABLE 3: LIQUIDITY RESERVES
Cash and cash equivalents and unused
committed credit limits
EUR million 2023 2022
Cash and cash equivalents 212.7 91.4
Overdraft facilities 18.9 19.5
Revolving credit line 150.0 150.0
TOTAL 381.6 260.9
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
166Annual Report 2023
FINANCIAL STATEMENTS
TABLE 4: MATURITIES OF FINANCIAL LIABILITIES
Contractual payments on financial liabilities 2023 Cash flows 2024 Cash flows 2025 Cash flows 2026–
EUR million
Total contractual
cash flows Fixed rate Variable rate Repayment Fixed rate Variable rate Repayment Fixed rate Variable rate Repayment
Non-derivative:
Loans from financial institutions
1
-247.2 0.0 -12.4 0.0 0.0 -12.5 0.0 0.0 -12.3 -210.0
Loans from pension institutions
2
-7.0 -0.1 0.0 -1.5 -0.1 0.0 -1.5 -0.1 0.0 -3.8
Lease liabilities -170.0 0.0 -5.4 -13.1 0.0 -4.9 -17.6 0.0 -25.7 -103.3
Trade payables -96.6 -96.6
Derivative:
Currency derivatives, hedge accounting
Inflow 63.7 0.0 0.0 63.7 0.0 0.0 0.0 0.0 0.0 0.0
Outflow -65.3 0.0 0.0 -65.3 0.0 0.0 0.0 0.0 0.0 0.0
Currency derivatives, non-hedge accounting
Inflow 39.0 0.0 0.0 39.0 0.0 0.0 0.0 0.0 0.0 0.0
Outflow -40.0 0.0 0.0 -40.0 0.0 0.0 0.0 0.0 0.0 0.0
Interest rate derivatives, hedge accounting 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0
Commodity derivatives, hedge accounting -1.2 0.0 0.0 -0.7 0.0 0.0 -0.5 0.0 0.0 0.0
TOTAL -524.5 -0.1 -17.8 -114.6 -0.1 -17.3 -19.6 -0.1 -38.0 -317.0
1
Loans from financial institutions mature 2026
2
Loans from pension institutions mature 2028
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
167Annual Report 2023
FINANCIAL STATEMENTS
TABLE 4: MATURITIES OF FINANCIAL LIABILITIES
Contractual payments on financial liabilities 2022 Cash flows 2023 Cash flows 2024 Cash flows 2025–
EUR million
Total contractual
cash flows Fixed rate Variable rate Repayment Fixed rate Variable rate Repayment Fixed rate Variable rate Repayment
Non-derivative:
Loans from financial institutions
1
-233.8 0.0 -7.9 0.0 0.0 -8.0 0.0 0.0 -7.9 -210.0
Loans from pension institutions
2
-8.5 -0.1 0.0 -1.5 -0.1 0.0 -1.5 -0.1 0.0 -5.3
Lease liabilities -187.4 0.0 -5.3 -12.4 0.0 -4.9 -14.2 0.0 -32.4 -118.3
Trade payables -103.5 0.0 0.0 -103.5 0.0 0.0 0.0 0.0 0.0 0.0
Derivative:
Currency derivatives, hedge accounting
Inflow 24.0 0.0 0.0 24.0 0.0 0.0 0.0 0.0 0.0 0.0
Outflow -23.5 0.0 0.0 -23.5 0.0 0.0 0.0 0.0 0.0 0.0
Currency derivatives, non-hedge accounting
Inflow 5.7 0 0 5.7 0 0 0 0 0 0
Outflow -5.6 0 0 -5.6 0 0 0 0 0 0
Interest rate derivatives, hedge accounting 0.0 0.0 0 0 0.0 0 0 0.0 0 0
Commodity derivatives, hedge accounting -2.4 0 0 -1.2 0 0 -0.7 0 0 -0.5
TOTAL -535.2 -0.1 -13.2 -118.1 -0.1 -12.9 -16.4 -0.1 -40.3 -334.1
1
Loans from financial institutions mature 2026
2
Loans from pension institutions mature 2028
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
168Annual Report 2023
FINANCIAL STATEMENTS
6. Credit risk
The objective of Anora’s credit risk management is to minimise
the losses if one of the Group’s counterparties fails to meet its
obligations. The principles of credit risk management are described
in the Group’s credit policy.
Credit risks are caused by a counterparty not fulfilling its
contractual payment obligations or the counterparty’s credit rating
changing in a manner that affects the market value of the financial
instruments it has issued.
The aim is to minimise credit risks by active credit management
and by taking into account customers’ credit rating when
determining the payment term of invoices. A significant share of
the Group’s revenue is associated with the state monopolies in
the Nordic region where there is not considered to be any credit
risk. The Group’s credit risk is otherwise spread over industrial
customers, a large number of small customers within the Horeca
market as well as a small number of distributors outside the home
markets.
4.2 CAPITAL RISK MANAGEMENT
The target of Anora’s capital management is to secure an effective
capital structure that supports the profitable growth of
the operations. The Board of Directors monitors the Group’s capital
structure regularly.
Anora monitors its capital based on total Net Debt to Comparable
EBITDA. The ratio is calculated by dividing net debt with the last 12
month’s comparable EBITDA of the Group. Net debt /comparable
EBITDA ratio at the end of 2023 is not comparable with prior
period. 2022 Comparable EBITDA includes Globus result only from
1st of July 2022 onwards.
During the business cycle, Group’s Net debt to comparable
EBITDA is likely to fluctuate, and the objective is to retain
a sufficiently strong capital structure to secure the Group’s financing
needs. Net debt / comparable EBITDA is a covenant used in Group’s
funding arrangements. During the financial period, the covenants
were not in breach. At 31 December 2023 and 31 December 2022
the Net debt comparable/ EBITDA was as follows:
TABLE 5: NET DEBT/COMPARABLE EBITDA
Net Debit / Comparable EBITDA
as of 31 December,
EUR million 2023 2022
Comparable EBITDA 68.2 76.1
Borrowings 216.3 247.5
Lease liabilities 134.0 144.8
Cash and cash equivalents 212.7 91.4
Net debt 137.5 300.9
Net Debt /Comparable EBITDA AT 31 DECEMBER 2.0 4.0
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
169Annual Report 2023
FINANCIAL STATEMENTS
5 Consolidation
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
GOVERNANCE FINANCIAL STATEMENTSREPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
Annual Report 2023 170
BUSINESS OVERVIEW
5.1 GENERAL CONSOLIDATION PRINCIPLES
Consolidation
Consolidation, consolidation method and classification of
ownership interests depends on whether the Group has power
to control or jointly control the entity or have significant
influence or other interests in the entity. When the Group has
power to control the entity, it is consolidated as a subsidiary
according to principles described in Note 5.3. Power to control
an entity is normally achieved when shareholding is above 50%
When the Group has joint control or significant influence
over an entity but does not have power to control, entity
is accounted for by using the principles set in Note 5.4.
Significant influence is normally achieved when the Group has
between 20%–50% shareholding.
If the Group does not have power to control nor significant
influence in the entity, its ownership interests are classified
as financial assets at fair value through other comprehensive
income and accounted for according to principles described in
Note 3.2.1. This normally happens when the Group’s ownership
is below 20%.
Non-controlling interests
Non-controlling interests’ share of profit after tax is shown
on a separate line after Group’s result for the period. Non-
controlling interests’ share of equity is shown on a separate line
as part of the Group’s total equity.
In some subsidiaries with non-controlling interests,
the non-controlling shareholder have a put option related to
the non-controlling interest, where the Group does not have
control of the non-controlling interests before the options are
exercised, nor does it have control of whether the options will
be exercised, or when this exercise may take place. The value
of such options is recognised as liability at fair value through
profit and loss in the balance sheet and reduces the non-
controlling share of equity. This means that the non-controlling
interests presented in the income statement and in the equity
show only values where the minority does not have put options
related to the minority shares.
Foreign currency items
All transactions in foreign currency are converted to functional
currency at the time of the transaction. Monetary items in
foreign currency are converted on the balance sheet date into
functional currency by using the exchange rate on the balance
sheet date.
The consolidated financial statements are presented in euro,
which is the functional currency of the parent company.
The functional currency in the subsidiaries is the currency
in which the subsidiary reports its legal statutory accounts,
and the Group has subsidiaries with functional currencies
EUR, SEK, NOK and DKK. When consolidating subsidiaries
that have a functional currency other than euro, profit and loss
items are converted to the group’s presentation currency at
year-to-date average exchange rates published by the European
Central Bank.
For balance sheet items reported in other currencies than
euro, including PPA values and goodwill, the conversion to
euro is based on closing rate on the reporting date.
Exchange rates used for translation of reported figures in
foreign functional currencies during 2023 are:
EXCHANGE RATES DURING 2023
Functional currencies
reported
Average
rate 2023
Closing rate
31.12.2023
Average
rate 2022
Closing rate
31.12.2022
Swedish
krona SEK 11.4842 11.0960 10.6571 11.1218
Norwegian
krone NOK 11.4684 11.2405 10.1122 10.5138
Danish
krone DKK 7.4513 7.4529 7.4396 7.4365
Translation differences arising from elimination of the cost
of foreign subsidiaries and from translation of the foreign
subsidiaries’ post-acquisition profits and losses are recognised
in other comprehensive income and presented as a separate
item within equity. Goodwill and the fair value adjustments
to the carrying amounts of assets and liabilities of foreign
subsidiaries are accounted for as assets and liabilities of
the respective foreign subsidiary, which are translated to euro
using the closing rate at the reporting date. If these foreign
units are entirely or partly disposed, related exchange rate
differences are recognised in profit or loss as part of the gain or
loss on disposal.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
171Annual Report 2023
FINANCIAL STATEMENTS
5.2 CHANGES IN GROUP STRUCTURE
Sale of Larsen business
Anora Group sold its Larsen cognac business to International
Beverage Holdings limited as at 29th of September 2023. The
disposal includes Anora’s brands Larsen, Renault, Monopol and ibis
as well as the company’s subsidiary Larsen S.A.S with its production
site in Cognac, France and Anora’s eaux-de vie maturation stock.
Critical accounting estimate and management judgement
regarding sale of Larsen Cognac business was related to the amount
of goodwill derecognised. The derecognised goodwill was
determined as the part of the goodwill recorded from the historic
purchase of Larsen that was allocated to Spirits business in 2022
(EUR 2.8 million). Management consider that the described
method better reflects goodwill associated with the operations
disposed compared to the method on the basis of relative values of
the operation disposed of and the portion of the cash-generating
unit retained.
DISPOSED AMOUNTS OF ASSETS AND LIABILITIES
EUR million 2023
The carrying amounts of assets and liabilities sold as at the
date of sale
Goodwill 2.8
Other intangible assets 2.2
Property plant and equipment 4.2
Inventory 31.4
Trade and other receivables 1.7
Cash and cash equivalents 4.2
Total assets 46.4
Deferred tax liabilities 0.1
Employee benefit obligation 0.1
Trade and other payables 1.3
Total liabilities 1.5
Net assets sold 44.9
Total disposal consideration in cash 58.5
Transaction costs -2.0
Total capital gain 11.6
Completion of the Globus Wine acquisition in 2022
On July 1, 2022 Anora completed the acquisition of Globus Wine
A/S, the leading wine company in Denmark. The acquired business
is reported as part of Anora’s Wine segment as of July 1, 2022. The
provisional amounts recognized on the date of the purchase have
been adjusted within 12 months after the date of acquisition, to
reflect new information obtained about facts and circumstances that
existed at the date of acquisition, there were no adjustment made
in 2023 to the amounts recored as of 31 December 2022. The final
amounts are presented in the table below.
RECOGNISED AMOUNTS OF IDENTIFIABLE ASSETS
ACQUIRED AND LIABILITIES ASSUMED
EUR million 2022
Intangible assets 44.3
Property, plant and equipment 7.7
Right of use assets 18.7
Inventory 20.9
Trade and other receivables 15.6
Cash and cash equivalents 0.1
Total Assets 107.3
Interest bearing liabilities 36.6
Deferred tax liabilities 10.9
Trade and other payables 20.2
Total liabilities 67.7
Net assets total 39.6
Goodwill 40.6
Total consideration 80.2
ANALYSIS OF CASH FLOWS OF ACQUISITION
EUR million 2022
Purchase consideration, cash payment -80.2
Cash and Cash equivalents, in acquired companies 0.1
Transaction costs of the acquisitions -1.0
Net cash flow from acquisitions -81.1
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
172Annual Report 2023
FINANCIAL STATEMENTS
Completion of the Von Elk acquisition in 2022
On September 1, 2022 Anora completed the acquisition of Von
Elk Company Oy, mostly known for the brand Glöet, which is one
of the most popular sparkling glögg in the Nordics. The acquired
business is reported as part of Anora’s Wine segment as of
September 1, 2022. The provisional amounts recognized on the date
of the purchase have not been adjusted after the date of acquisition.
The final amounts are presented in the are presented in the table
below.
EUR million 2022
Intangible assets 0.3
Property, plant and equipment 0.0
Trade and other receivables 0.0
Cash and cash equivalents 0.2
Total Assets 0.5
Deferred tax liabilities 0.1
Trade and other payables 0.0
Total liabilities 0.1
Net assets total 0.5
Goodwill 0.8
Remeasurement 0.3
Total consideration 1.0
ANALYSIS OF CASH FLOWS OF ACQUISITION
EUR million 2022
Purchase consideration, cash payment -1.0
Cash and Cash equivalents, in acquired companies 0.2
Transaction costs of the acquisitions -0.0
Net cash flow from acquisitions -0.8
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
173Annual Report 2023
FINANCIAL STATEMENTS
5.3 SUBSIDIARIES
Subsidiaries consolidation principles
Consolidated financial statements of Anora include the parent
company, Anora Group Plc, and all subsidiaries. Subsidiaries
are all those in which the parent company exercises control.
The Group controls an entity when it is exposed, or has rights,
to variable returns from its involvement with the investee, and
could affect those returns through its power over the investee.
The financial statements of acquired subsidiaries are included
in the consolidated financial statements from the date that
control commences until the date that control ceases.
All business combinations are accounted for by using
the acquisition method. The consideration transferred and
the identifiable assets acquired and liabilities assumed
in the acquired company are measured at fair value at
the acquisition date. The aggregate amount of the consideration
transferred, the amount of non-controlling interests and any
previously held equity interest in the acquiree, exceeding
the fair value of the net assets acquired is recorded as goodwill.
All acquisition-related costs, with the exception of costs to
issue debt or equity securities, are expensed. The consideration
transferred does not include any transactions accounted for
separately from the acquisition. Any contingent consideration
is recognised at fair value at the acquisition date, and it is
classified as either liability or equity. Contingent consideration
classified as a liability is measured at fair value at each
reporting date and any resulting gain or loss is recognised in
profit or loss.
Intra-group transactions, receivables, liabilities and
unrealised gains, as well as the distribution of profits within
the Group are eliminated in preparing the consolidated
financial statements. Unrealised losses are not eliminated if
the loss in question results from impairment.
Non-controlling interests’ share of profit after tax is shown
on a separate line after the Group’s profit for the year. Non-
controlling interests’ share of equity is shown on a separate
line as part of the Group’s equity. In some subsidiaries with
non-controlling interests, there are put options related to
the non-controlling interests. These put options are accounted
for separately, see chapter 5.1 Non-controlling interests on how
this affects presented non-controlling interests in the income
statement and equity.
Anora Group Plc had 70 subsidiaries at the end of the reporting
period (72 subsidiaries at 31 December 2022) .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
174Annual Report 2023
FINANCIAL STATEMENTS
Country of
incorporation
Parent
company’s
share of
ownership (%)
2023
Group’s share of
ownership (%)
2023
Parent
company’s
share of
ownership (%)
2022
Group’s share of
ownership (%)
2022
Altia Denmark A/S Denmark 100.0 100.0 100.0 100.0
Altia Norway AS Norway 100.0 100.0 100.0 100.0
Anora Estonia AS Estonia 100.0 100.0 100.0 100.0
Anora Germany GmbH Germany - 100.0 - 100.0
Anora Latvia SIA Latvia 100.0 100.0 100.0 100.0
Anora Prime Brands AS Norway - 100.0 - 100.0
Anora Sweden AB Sweden 100.0 100.0 100.0 100.0
Arcus Brand Lab AS Norway - 100.0 - 100.0
Arcus Co Brands AS Norway - 100.0 - 100.0
Arcus Denmark A/S Denmark - 100.0 - 100.0
Arcus Finland Oy Finland - 100.0 - 100.0
Arcus-Gruppen AS Norway - 100.0 - 100.0
Arcus Holding AS Norway 100.0 100.0 100.0 100.0
Arcus Norway AS Norway - 100.0 - 100.0
Arcus Sweden AB Sweden - 100.0 - 100.0
Arcus Wine Brands AS Norway - 100.0 - 100.0
Atlungstad Håndverksdestilleri AS Norway - 100.0 - 100.0
Best Buys International AS Norway 100.0 100.0 100.0 100.0
BevCo AS Norway - 100.0 - 100.0
Bibendum AB Sweden - 100.0 - 100.0
Bibendum AS Norway 100.0 100.0 100.0 100.0
Brews4U Finland Oy Finland - 91.0 - 91.0
Champagne Sigurd Wongraven AS Norway - 100.0 - 100.0
Classic Wines AS Norway - 100.0 - 100.0
Creative Wines AS Norway - 100.0 - 100.0
Det Danske Spiritus Kompagni A/S Denmark - 100.0 - 100.0
Excellars AS Norway - 100.0 - 100.0
Globus Wine A/S Denmark - 100.0 - 100.0
Globus Wine GmbH Germany - 100.0 - 100.0
Globus Wine Germany GmbH Germany - 100.0 - 100.0
Globus Wine Poland Poland - 0.0 - 100.0
Hedoni Wines AS Norway - 100.0 - 100.0
Heritage Wines Sweden AB Sweden - 93.3 - 93.3
Heyday Wines AS Norway - 90.1 - 90.1
Interbev AS Norway 100.0 100.0 100.0 100.0
Larsen SAS France 0.0 0.0 100.0 100.0
Løiten Brænderis Destillation ANS Norway - 100.0 - 100.0
Country of
incorporation
Parent
company’s
share of
ownership (%)
2023
Group’s share of
ownership (%)
2023
Parent
company’s
share of
ownership (%)
2022
Group’s share of
ownership (%)
2022
De Lysholmske Brenneri og
Destillasjonsfabrikker ANS Norway - 100.0 - 100.0
Merlot HoldCo ApS Denmark 100.0 100.0 100.0 100.0
Merlot BidCo ApS Denmark - 100.0 - 100.0
New Frontier Wines AB Sweden - 79.6 - 79.6
Oplandske Spritfabrik ANS Norway - 100.0 - 100.0
Philipson & Söderberg AB Sweden - 100.0 - 100.0
Premium Wines AS Norway 100.0 100.0 100.0 100.0
Quaffable Wines Sweden AB Sweden - 79.6 - 79.6
Siemers & Cos Destillasjon ANS Norway - 100.0 - 100.0
Social Wines Oy Finland - 100.0 - 100.0
South Swedish Craft Spirits AB Sweden - 100.0 - 100.0
Sublime Wines AS Norway - 100.0 - 100.0
Summit Wines AS Norway - 100.0 - 100.0
Symposium Wines AS Norway - 100.0 - 100.0
Strøm AS Norway 100.0 100.0 100.0 100.0
Swedish Wine Mafia AB Sweden - 99.5 - 99.5
Valid Wines Sweden AB Sweden - 94.5 - 94.5
Vectura AS Norway - 100.0 - 100.0
Vingaraget AB Sweden - 100.0 - 100.0
Vingruppen AS Norway - 100.0 - 100.0
Vingruppen Oy Finland - 100.0 - 100.0
Vingruppen Holding Sweden AB Sweden - 100.0 - 100.0
Vingruppen i Norden AB Sweden - 100.0 - 100.0
Vinordia AS Norway - 100.0 - 100.0
Vinordia Sweden AB Sweden - 100.0 - 100.0
Vinum Import Oy Finland - 98.1 - 98.1
Vinunic AB Sweden - 94.5 - 94.5
Vinuniq AS Norway - 100.0 - 100.0
Vinunic Oy Finland - 100.0 - 100.0
Von Elk Company Oy Finland 100.0 100.0 100.0 100.0
Oy Wennerco Ab Finland 100.0 100.0 100.0 100.0
The WineAgency Sweden AB Sweden - 99.5 - 99.5
Wineworld Finland Oy Finland - 90.0 - 90.0
Wineworld Sweden AB Sweden - 99.5 - 99.5
Wongraven Wines AS Norway - 90.0 - 90.0
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
175Annual Report 2023
FINANCIAL STATEMENTS
5.4 ASSOCIATED COMPANIES
AND JOINT ARRANGEMENTS
Associated companies
Associated companies are all entities where the Group has joint
control or significant influence over an entity but does not have
power to control the entity. Normally this is when the Group
accompanies a shareholding of over 20% of voting rights or
otherwise has significant influence, but not control. Anora has
investments in associated companies Palpa Lasi Oy, Tiffon SA,
ISH ApS and Beverage Link AS.
Associated companies are consolidated by using the equity
method. Under the equity method, the investment is initially
recognised at cost and subsequently adjusted with the change
in the net assets of the investee after the acquisition date,
consistent with the ownership interest of the Group. After
the acquisition the Group’s share in the associated company’s
profit and loss for the period is separately disclosed in
the Group’s income statement, presented after operating result.
If the Group’s share in the associated company’s loss exceeds
the carrying amount of the investment, the investment is
recognised at zero value in the consolidated balance sheet and
the loss exceeding the carrying amount is not consolidated,
unless the Group has committed to fulfil the company’s
obligations. An investment in an associated company includes
goodwill arisen on acquisition. The Group’s share in changes
in the associated company’s other comprehensive income is
recognised in consolidated other comprehensive income (OCI).
Results from the transactions between the Group and
its associates are recognised only to the extent of unrelated
investor’s interests in the associates. The Group determines
at each reporting date whether there is any objective evidence
that the investment in the associate is impaired. In case of such
indications, the Group calculates the amount of impairment as
the difference between the recoverable amount of the associate
and its’ carrying value. The impairment is recognised in share
of results in associated companies.
Financial statements of associated companies have been
changed when necessary to correspond with the accounting
policies adopted by the Group. If financial statements for
the period are not available, the share of the profit is included in
the consolidated financial statements based on the preliminary
financial statements or latest available information.
Joint arrangements
A joint arrangement is an arrangement of which two or more
parties have contractually agreed joint control which exists
only when decisions about the relevant activities require
the unanimous consent of the parties sharing control. A joint
arrangement is either a joint operation or a joint venture .
SHAREHOLDINGS IN ASSOCIATED COMPANIES AND
JOINT ARRANGEMENTS
Company
Nature of
relationship
Measurement
method
2023 Share of
ownership %
2022 Share of
ownership %
Roal Oy,
Finland
Joint
operation Cost 50.0 50.0
Palpa Lasi Oy,
Finland Associate Equity 25.5 25.5
Tiffon SA,
France Associate Equity 34.8 34.8
Beverage Link AS,
Norway Associate Equity 45.0 45.0
ISH ApS,
Denmark Associate Equity 26.0 26.0
Roal Oy engages in enzyme business in Finland. Anora has joint
control over Roal together with ABF Overseas Limited (“ABF”), but
the option right held by the other shareholder represents in substance
a receivable with a fixed rate of return and Anora does not have
a right to 50% of the net assets until the option lapses. Accordingly,
the interest is classified as a joint operation with Anora accounting for
its share of assets as a receivable with the annual minimum dividend
accounted for as interest income. The receivable amounted to EUR 7.6
million as at 31 December 2023 and 31 December 2022.
Palpa Lasi Oy engages in the recycling and re-use of glass beverage
packages.
Tiffon SA is a cognac producer and the Group buys Cognac from
Tiffon SA (Braastad Cognac). Tiffon SA has official accounting year
that end 30 June every year.
Beverage Link As is a jointly owned logistics company between
Vectura AS, Skandinavisk Logistik AS and Cuveco AS.
ISH ApS is Danish scale-up company in non-alcoholic spirits,
wines and ready-to-drink beverages. ISH currently exports to over 15
countries with a special focus on Scandinavia, Western Europe and
North America.
Assets held for sale – Roal Oy
ABF has notified Anora in December 2023 that they will exercise
their call option to acquire Anora Group Plc’s shares in Roal Oy at
a fixed purchase price of MEUR 7.6 in Q1 2024. Therefore, as of 31
December 2023 the investment in Roal Oy was classified as available
for sale according to criteria’s met in reference to IFRS 5 Non-current
assets held for sale and discontinued operations. The call option was
formally exercised on 13 February 2024. The transaction is expected
to close during Q1 2024.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
176Annual Report 2023
FINANCIAL STATEMENTS
INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT ARRANGEMENTS
2023
EUR million Roal Oy Tiffon SA ISH ApS Other Total
Book value at beginning of the period 7.6 7.2 4.7 1.2 20.7
Acquisition of companies 0.0 0.0 0.0 0.0 0.0
Additions 0.0 0.0 0.1 0.0 0.1
Share of profit during period 0.9 0.3 -0.4 -0.6 0.2
Transfer to subsidiary shares 0.0 0.0 0.0 0.0 0.0
Dividend received -0.9 -0.2 0.0 0.0 -1.1
Translation differences 0.0 0.0 0.0 0.0 0.0
Total 7.6 7.3 4.4 0.6 19.9
Reclassified to assets held for sale -7.6 0.0 0.0 0.0 -7.6
Total book value at end of the period 0.0 7.3 4.4 0.6 12.3
RECONCILIATION TO CARRYING AMOUNT 2023:
2023
EUR million Roal Oy Tiffon SA ISH ApS Other Total
Group's share of Net assets N/A 7,3 0,1 0,6 8,0
Goodwill 0.0 0.0 4.3 0.0 4.3
Cost price 7.6 0.0 0.0 0.0 7.6
Carrying amount 7.6 7.3 4.4 0.6 19.9
Reclassified to assets held for sale -7.6 0.0 0.0 0.0 -7.6
Total book value at end of the period 0.0 7.3 4.4 0.6 12.3
INVESTMENTS IN ASSOCIATED COMPANIES AND JOINT ARRANGEMENTS
2022
EUR million Roal Oy Tiffon SA ISH ApS Other Total
Book value at beginning of the period 7.6 7.1 0.0 1.6 16.3
Acquisition of companies 0.0 0.0 0.0 0.0 0.0
Additions 0.0 0.0 5.0 0.0 5.0
Share of profit during period 0.9 0.1 -0.3 -0.2 0.4
Transfer to subsidiary shares 0.0 0.0 0.0 -0.3 -0.3
Dividend received -0.9 -0.1 0.0 0.0 -1.0
Translation differences 0.0 0.1 0.0 0.0 0.1
Total 7.6 7.2 4.7 1.2 20.7
RECONCILIATION TO CARRYING AMOUNT 2022:
2022
EUR million Roal Oy Tiffon SA ISH ApS Other Total
Group's share of Net assets N/A 7,2 0,3 1,2 8,8
Goodwill 0.0 0.0 4.3 0.0 4.3
Cost price 7.6 0.0 0.0 0.0 7.6
Carrying amount 7.6 7.2 4.7 1.2 20.7
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
177Annual Report 2023
FINANCIAL STATEMENTS
FINANCIAL SUMMARY OF ASSOCIATED COMPANIES 2023
Balance sheet figures 2023
EUR million Tiffon SA ISH ApS Other Total
Current assets
Cash and cash equivalents 1.2 0.4 0.4 2.0
Other current assets 33.0 1.3 5.1 39.4
Total current assets 34.2 1.7 5.5 41.4
Non-current assets 2.3 0.1 0.0 2.4
Current liabilities
Financial liabilities excluding trade payables 0.0 0.0 0.0 0.0
Other current liabilities 2.6 1.5 3.3 7.4
Total current liabilities 2.6 1.5 3.3 7.4
Non-current liabilities
Financial liabilities excluding trade payables 0.0 0.0 0.0 0.0
Other non-current liabilities 12.9 0.0 0.0 12.9
Total non-current liabilities 12.9 0.0 0.0 12.9
Net assets 21.0 0.3 2.2 23.5
Income statement figures 2023
EUR million Tiffon SA ISH ApS Other Total
Total revenues 11.3 3.5 13.9 28.7
Depreciation and amortisation -0.4 0.0 0.0 -0.4
Interest income 0.0 0.0 0.0 0.0
Interest expense 0.0 0.0 0.0 0.0
Profit for the period
Profit for the period from continuing operations 0.9 -1.5 -2.3 -3.0
Profit for the period from discontinuing operations 0.0 0.0 0.0 0.0
Total profit for the period 0.9 -1.5 -2.3 -3.0
Other comprehensive income 0.0 0.0 0.0 0.0
Total comprehensive income 0.9 -1.5 -2.3 -3.0
FINANCIAL SUMMARY OF ASSOCIATED COMPANIES 2022
Balance sheet figures 2022
EUR million Tiffon SA ISH ApS Other Total
Current assets
Cash and cash equivalents 1.4 1.9 3.0 6.4
Other current assets 30.4 1.0 5.4 36.9
Total current assets 31.9 3.0 8.5 43.3
Non-current assets 2.0 0.0 0.0 2.1
Current liabilities
Financial liabilities excluding trade payables 0.0 0.0 0.0 0.0
Other current liabilities 2.7 1.6 3.9 8.3
Total current liabilities 2.7 1.6 3.9 8.3
Non-current liabilities
Financial liabilities excluding trade payables 0.0 0.0 0.0 0.0
Other non-current liabilities 10.4 0.0 0.0 10.4
Total non-current liabilities 10.4 0.0 0.0 10.4
Net assets 20.8 1.3 4.6 26.7
Income statement figures 2022
EUR million Tiffon SA ISH ApS Other Total
Total revenues 9.9 1.4 14.8 26.2
Depreciation and amortisation -0.4 0.0 0.0 -0.4
Interest income 0.0 0.0 0.0 0.0
Interest expense 0.0 0.0 0.0 0.0
Profit for the period
Profit for the period from continuing operations 0.4 -1.2 -0.9 -1.7
Profit for the period from discontinuing operations 0.0 0.0 0.0 0.0
Total profit for the period 0.4 -1.2 -0.9 -1.7
Other comprehensive income 0.0 0.0 0.0 0.0
Total comprehensive income 0.4 -1.2 -0.9 -1.7
Related party transactions with associated companies and joint arrangements are presented in Note 6.3.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
178Annual Report 2023
FINANCIAL STATEMENTS
6 Other notes
OPERATING
RESULT
OPERATIVE
ASSETS AND
LIABILITIES
FINANCIAL
ITEMS AND
CAPITAL
STRUCTURE
FINANCIAL
AND CAPITAL
RISK
CONSOLIDATION OTHER NOTES
GOVERNANCE FINANCIAL STATEMENTSREPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
Annual Report 2023 179
BUSINESS OVERVIEW
6.1 INCOME TAX EXPENSE
Income tax expense
The Group’s income tax expense recognised through profit
or loss comprises current tax based on taxable income for
the period, any adjustments to tax payable in respect of
previous periods, and changes in deferred taxes. Current
income tax based on taxable income is calculated according to
the local tax regulations of each Group company.
Tax effects related to transactions or other events
recognised in profit or loss are recognised in profit or loss.
If the taxes relate to items of other comprehensive income
or transactions or other events recognised directly in equity,
income tax expense is recognised within the respective items.
The Group’s share of profit or loss in associated companies and
joint ventures is reported as calculated from the net profit and
thus including the income tax effect.
Deferred tax assets and liabilities are principally recognised
for all temporary differences between the carrying amounts
of assets and liabilities for financial reporting purposes and
the amounts used for taxation purposes. The most significant
temporary differences arise from Intangible assets, Property,
plant and equipment, Right-of-Use assets and corresponding
lease liabilities, carry forward of unused tax losses and fair
value allocations on business combinations. Deferred tax
on assets and liabilities arising from single transactions
are presented in a net basis in the income statement and
in the balance sheet, but are shown with gross values in
the deferred tax notes. Deferred tax assets are recognised only
to the extent that it is probable that future taxable profits will
be available against which they can be utilised. Deferred tax
liabilities are recognised in full. Deferred taxes are calculated
using tax rates enacted or substantively enacted at the end of
the reporting period. Deferred tax is recognised for foreign
subsidiaries undistributed earnings only when related tax
effects are probable.
Deferred tax assets and liabilities are set off when they
are levied by same taxing authority and Anora has legally
enforceable right to set off the balances.
The legislation implementing the OECD Pillar Two model
rules was enacted in Finland in 2023 and will come into effect
from January 1, 2024, onwards. Anora applies the exception
to recognizing and disclosing information about deferred
tax assets and liabilities related to Pillar Two income taxes,
as provided in the amendments to IAS 12 issued in May
2023. Since the Pillar Two legislation was not effective at
the reporting date, no current tax exposure related to Pillar
Two taxes exists at December 31, 2023. Anora is in the process
of assessing its exposure to the Pillar Two legislation for when
it comes into effect. This assessment indicates that Pillar Two
legislation is not expected to have a material impact on Anora’s
income taxes.
Critical estimates and management judgements –
Deferred tax assets
Judgment is required in assessing whether deferred tax
assets are recognised on the balance sheet. Deferred tax
assets are recognised only where it is considered more likely
than not that they will be recovered, which is dependent on
the generation of sufficient future taxable profits. Assumptions
about the generation of future taxable profits depend on
management’s estimates of future cash flows. These future cash
flow estimates depend on estimates of future sales volumes,
price levels of main raw materials, capital expenditure and
other components affecting profitability of the operations.
These estimates and assumptions are subject to risk and
uncertainty hence it is possible that changes in circumstances
will alter expectations, which may impact the amount of
deferred tax assets recognised on the balance sheet and
the amount of any other tax losses and temporary differences
not yet recognised. Anora’s ability to generate taxable profit
is also subject to general economic, financial, competitive,
legislative and regulatory factors that are beyond its control.
If Anora generates lower future taxable profits than what
management has assumed in determining the amounts
of the recognised deferred tax assets, the assets would be
impaired, either partly or in full. Accordingly, amounts
recognised in balance sheet could potentially be reversed
through profit and loss. Changes in circumstances may also
result in recognition of deferred tax assets for tax losses that
previously have not been recognised as an asset .
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
180Annual Report 2023
FINANCIAL STATEMENTS
INCOME TAX EXPENSE
EUR million 2023 2022
Current tax expense -4.4 -5.4
Adjustments to taxes for prior periods 0.8 -0.2
Change in deferred taxes 17.4 0.3
Total 13.9 -5.3
The reconciliation of the tax expense recognised in profit and loss
and the tax expense calculated using Anora Group’s domestic
corporate tax rate (20.0%):
RECONCILIATION OF TAX EXPENSE
EUR million 2023 2022
Result before taxes -53.9 23.4
Income tax using the parent company tax rate 10.8 -4.7
Effect of tax rates of subsidiaries in foreign
jurisdictions 1.8 0.0
Non-taxable income 1.3 0.3
Non-deductable expenses -0.4 -0.7
Utilisation of previously unrecognized tax losses 0.0 0.0
Adjustments to taxes for prior periods 0.8 0.3
Share of profit in assocated companies, net of tax
-0.1 -0.1
Tax arising on dividends 0.0 0.0
Tax on undistributed earnings -0.3 -0.1
Other items 0.0 -0.3
Total 13.9 -5.3
INCOME TAX RECOGNISED IN OTHER
COMPREHENSIVE INCOME
2023 EUR million Before tax Tax Net of tax
Cash flow hedges -6.7 1.0 -5.7
Translation differences -12.8 0.0 -12.8
Remeasurements of post-employment
benefit obligations -0.1 0.0 -0.1
Total -19.7 1.0 -18.6
2022 EUR million Before tax Tax Net of tax
Cash flow hedges 3.1 -0.7 2.4
Translation differences -16.9 0.0 -16.9
Remeasurements of post-employment
benefit obligations 0.1 0.0 0.1
Total -13.7 -0.7 -14.4
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
181Annual Report 2023
FINANCIAL STATEMENTS
DEFERRED TAX ASSETS AND LIABILITIES
Change in deferred tax assets and liabilities
EUR million 1 Jan 2023
Recognised in
profit or loss Recognised in OCI
Acquired /disposed
business
Exhange rate
differences 31 Dec 2023
Deferred tax assets:
Tax losses 3.7 0.2 0.0 0.0 -0.2 3.7
Fixed assets 0.0 2.1 0.0 0.0 0.1 2.2
Lease Liabilities 31.4 -0.6 0.0 0.0 -1.6 29.1
Pension benefits 0.6 0.0 0.0 0.0 0.0 0.5
Other temporary differences 0.5 0.3 0.0 0.0 0.0 0.8
Total deferred tax assets 36.2 2.1 0.0 0.0 -1.8 36.4
Offset against deferred tax liabilities -35.6 -2.9 0.2 0.0 1.9 -36.5
Net deferred tax assets 0.6 -0.8 0.2 0.0 0.0 0.0
Deferred tax liabilities:
Fixed assets 4.6 -0.1 0.0 0.3 0.0 4.8
Right-of-use assets 29.7 -13.3 0.0 0.0 -1.8 14.6
Recognised in hedge reserve 1.1 -0.2 -1.0 0.0 0.0 -0.1
Fair value allocation on acquisitions 45.2 -1.9 0.0 0.0 -2.1 41.2
Deductable goodwill depreciation 9.3 -0.2 0.0 0.0 0.0 9.1
Undistributed profits of foreign subsidiaries 1.3 0.3 0.0 0.0 0.0 1.6
Other temporary differences 1.7 0.0 0.0 0.0 0.0 1.7
Total deferred tax liabilities 92.9 -15.3 -1.0 0.3 -3.8 73.0
Offset against deferred tax assets -35.6 -2.9 0.2 0.0 1.9 -36.5
Net deferred tax liabilities 57.3 -18.2 -0.9 0.3 -1.9 36.5
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
182Annual Report 2023
FINANCIAL STATEMENTS
DEFERRED TAX ASSETS AND LIABILITIES
Change in deferred tax assets and liabilities
EUR million 1 Jan 2022
Recognised in
profit or loss Recognised in OCI
Acquired /disposed
business
Exhange rate
differences 31 Dec 2022
Deferred tax assets:
Tax losses 5.8 -2.0 0.0 0.2 -0.2 3.7
Lease Liabilities 29.0 3.9 0.0 0.0 -1.4 31.4
Pension benefits 0.7 0.0 0.0 0.0 0.0 0.6
Other temporary differences 0.6 0.0 0.0 0.0 0.0 0.5
Total deferred tax assets 36.0 1.8 0.0 0.2 -1.7 36.2
Offset against deferred tax liabilities -36.4 -0.2 -35.6
Net deferred tax assets -0.4 0.0 0.6
Deferred tax liabilities:
Fixed assets 4.0 -0.1 0.0 0.9 -0.1 4.6
Right-of-Use assets 27.5 3.5 0.0 0.0 -1.3 29.7
Recognised in hedge reserve 0.4 0.0 0.7 0.0 0.0 1.1
Fair value allocation on acquisitions 38.7 -2.0 0.0 9.8 -1.4 45.2
Deductable goodwill depreciation 9.8 0.0 0.0 0.0 -0.5 9.3
Undistributed profits of foreign subsidiaries 1.2 0.1 0.0 0.0 0.0 1.3
Other temporary differences 1.1 0.3 0.0 0.4 -0.2 1.7
Total deferred tax liabilities 82.6 1.9 0.7 11.1 -3.5 92.9
Offset against deferred tax assets -36.4 -35.6
Net deferred tax liabilities 46.2 11.1 -3.5 57.3
At 31 December 2023, the Group had EUR 0.8 million (2022: EUR
0.8 million) of tax loss carry forwards for which no deferred tax
was recognised. Anora management estimates these losses arise in
subsidiaries which have neither indication of future taxable income
nor other convincing evidence that tax losses can be utilised and
deferred tax asset be recognised in balance sheet.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
183Annual Report 2023
FINANCIAL STATEMENTS
6.2 COLLATERALS, COMMITMENTS AND
CONTINGENT ASSETS AND LIABILITIES
EUR million 2023 2022
Collaterals and commitments
Collaterals given on behalf of Group companies
Mortgages 18.5 18.5
Guarantees 13.0 9.3
TOTAL COLLATERALS 31.5 27.8
Commitments
Short-term and low value lease obligations;
Less than one year 0.3 0.2
Between one and five years 0.3 0.3
Total short-term and low value lease
obligations 0.6 0.5
Other commitments 2.3 18.1
TOTAL COMMITMENTS 2.9 18.6
Collaterals given on behalf of Group companies all relate to
commitments to authorities.
Short-term and low value obligations consist mainly of laptops.
Other commitments include mainly purchase obligations of wine.
There are no material contractual commitments for acquisitions of
intangible assets.
Emission allowances
The Group participates in the European Union emission
trading scheme, where it has been granted a certain number
of carbon dioxide emission allowances for a certain period
of time, free of charge. Anora Group Plc discloses its carbon
dioxide emission allowances granted free of charge on net
basis. The emission allowances granted free are recognised on
zero-value. If the Group has sufficient amount of allowances
to cover the obligation to deliver allowances corresponding to
the amount of emissions made, the obligation is recognised
as corresponding value of emissions (zero value). The Group
does not recognise income or expenses arising from emission
allowances through profit or loss when the emission allowances
granted are sufficient to cover the obligation to deliver
allowances corresponding to the amount of emissions made. If
the realised emissions exceed the granted emission allowances,
the obligation arising from the excess emissions is recognised
at fair value as a liability in the balance sheet at the reporting
date. If the realised emissions fall below the granted emission
allowances, the difference is not recognised in the balance
sheet but it is disclosed in the notes to the financial statements,
measured at fair value.
Anora’s actual emissions are below the emission allowances granted.
The following table presents changes in allowances for financial
years 2023 and 2022, as well as their fair values:
Emission allowances, kilotons 2023 2022
Emissions allowances received 22.6 22.6
Excess emission allowances from the previous
period 2.0 13.5
Sold emission allowances -2.0 -13.0
Realised emissions -21.6 -21.1
Emission allowances at 31 December 1.0 2.0
Fair value of emission allowances at
31 December, EUR million 0.1 0.2
Anora continues to operate within the emission trading system for
the trading period 2021–2030.
6.3 RELATED PARTY TRANSACTIONS
The Company’s related parties include the subsidiaries, associated
companies and joint arrangements. The subsidiaries are presented
in Note 5.3 and the associated companies and joint arrangements
in Note 5.4. Related party transactions associated companies and
joint arrangements are not eliminated in the Group’s consolidated
financial statements.
Related parties also include the Board of Directors, the CEO,
the members of the Executive Management Team and their family
members as well as entities controlled or jointly controlled by these
persons. Also, entities that are controlled or jointly controlled by,
or are associates of the State of Finland, are related parties of Anora
based on the fact that the State of Finland has significant influence
over Anora. Anora has applied the exemption to report only material
transactions with the government related entities. Transactions with
related parties are entered into on market terms. Anora has related
party transactions on a continuous basis with its major customer
Alko. Transactions with Alko have been presented below under
Other companies considered related parties.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
184Annual Report 2023
FINANCIAL STATEMENTS
The following transactions have taken place with related parties:
EUR million 2023 2022
Sales of goods and
services
Company Relation
Alko Finnish government
related entity 91.6 89.6
Tiffon SA Associated company 0.2 0.2
Roal Oy Associated company 0.8 0.4
TOTAL 92.7 90.2
Purchases of goods
and services
Company Relation
Alko Finnish government
related entity 1.3 1.6
Hoff SA Shareholder 2.2 2.4
Tiffon SA Associated company 4.0 4.8
Palpa Lasi Oy Associated company 1.7 1.5
Beverage Link AS Associated company 0.1 0.1
TOTAL 9.3 10.5
MANAGEMENT REMUNERATION
EUR million 2023 2022
CEO
Salaries and other short-term employee
benefits 0.6 0.5
Performance bonus and the bonuses from
long-term incentive plan 0.0 0.7
Pension benefits 0.1 0.1
TOTAL 0.7 1.3
Members of the Executive Management Team
(CEO not included)
Salaries and other short-term employee
benefits 1.5 1.8
Performance bonus and the bonuses from
long-term incentive plan 0.0 0.6
Pension benefits 0.2 0.3
TOTAL 1.7 2.7
Members and deputy members of
the Board of Directors 0.5 0.6
No monetary loans have been granted to the CEO or the members of
the Board of Directors, nor any collaterals or commitments granted
on their behalf.
The company and the CEO have not agreed on a retirement age
EUR million 2023 2022
Outstanding
balances from sales
and purchases of
goods and services
Receivables
Company Relation
Alko Finnish government
related entity 3.0 5.2
Tiffon SA Associated company 0.0 0.1
Roal Oy Associated company 0.1 0.1
TOTAL 3.1 5.4
Payables
Company Relation
Alko Finnish government
related entity 0.1 0.2
Hoff SA Shareholder 0.3 0.3
Tiffon SA Associated company 0.0 0.9
Palpa Lasi Oy Associated company 0.2 0.2
Beverage Link AS Associated company 0.0 0.0
TOTAL 0.6 1.7
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
185Annual Report 2023
FINANCIAL STATEMENTS
MANAGEMENT'S SHAREHOLDINGS
Executive Management Position
Number of
shares at
31 Dec 2023
Number of
shares at
31 Dec 2022
Jacek Pastuszka CEO 0 0
Sigmund Toth CFO 14,057 14,057
Janne Halttunen SVP, Wine 9,300 9,300
Kirsi Puntila SVP, Spirits 6,666 6,666
Risto Gaggl SVP, Industrial 0 0
Johanna Sundén Chief Human Resource Officser (CHRO) 0 0
Mikkel Pilemand Chief Growth Officer (CGO) 0 0
Hannu Tuominen Resigning SVP, Industrial 9,600 9,600
Kirsi Lehtola Resigning Chief Human Resource Officer (CHRO) 5,100 5,100
Pekka Tennilä Former CEO 0 32,604
Henrik Bodekær Thomsen Former SVP, Spirits 0 258
TOTAL 44,723 77,585
% of total shares 0.07% 0.11%
BOARD OF DIRECTOR'S SHAREHOLDINGS
Board of Director’s Position
Number of
shares at
31 Dec 2023
Number of
shares at
31 Dec 2022
Michael Holm Johansen Chairperson of the Board 80,000 80,000
Jyrki Mäki-Kala Vice Chairperson of the Board 13,600 1,232
Kirsten Ægidius Board member 6,100 2,440
Christer Kjos Board member 0 0
Annareetta Lumme-Timonen Board member 4,600 0
Torsten Steenholt Board member 20,000 20,000
Florence Rollet Board member 4,620 0
Arne Larsen Board member 0 0
Jussi Mikkola Board member 100 100
Sanna Suvanto-Harsaae Former Board member 0 3,908
Ingeborg Flønes Former Board member 0 1,900
TOTAL 129,020 109,580
% of total shares 0.19% 0.16%
6.4 SHARE-BASED PAYMENTS
Anora Group has a share-based long-term incentive scheme
for the company’s management and selected key employees,
which are settled in shares. The incentive scheme comprises
a performance share plan as well as a bridge plan to cover
the transition period into the integrated business operations of
Anora Group.
The granted shares are measured at fair value at the grant
date and are recognised as personnel expenses over the vesting
period with corresponding increase in equity. Non-market
conditions are not included in fair value of share-based
instruments but in the number of instruments that are
expected to vest. At each reporting period closing date,
the estimates about number of instruments are revised and
the impact is recognised in income statement.
The objectives of the share-based long-term incentive scheme are to
align the interests of Anora Group’s management and key employees
with those of the company’s shareholders and, thus, to promote
shareholder value creation in the long term, to commit management
and key employees to achieving Anora Group’s strategic targets and
the retention of Anora Group’s key resources.
Performance Share Plan
The Performance Share Plan consists of annually commencing
individual performance share plans, each with a three-year
performance period, followed by the payment of the potential share
rewards. The potential share rewards are paid in listed shares of
Anora Group. The commencement of each new plan is subject to
a separate decision of Anora Group’s Board of Directors
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
186Annual Report 2023
FINANCIAL STATEMENTS
Performance share plan 2022–2024
The performance share plan 2022–2024 (PSP 2022–2024)
commences effective as of the beginning of 2022 and the share
rewards payable thereunder will be paid during H1 2025. The payment
of the rewards is conditional on the achievement of the performance
targets which the Board of Directors has set for the plan.
The performance measures based on which the potential share
reward under PSP 2022–2024 will be paid, are revenue growth,
earnings per share (EPS), the relative total shareholder return of
the Company’s share and a measure linked to the reduction of CO
2
emissions.
Eligible for participation in PSP 2022–2024 are 33 individuals,
including the members of Anora Group’s Executive Management
Team.
If all the performance targets set for this plan are fully achieved,
the aggregate maximum number of shares to be paid based on this
plan is approximately 304,517 shares (referring to gross earnings
before the withholding of the applicable payroll tax).
The estimated aggregate gross value of this plan, based on
the current value of Anora Group’s share, is approximately EUR 1.3
million. The materialised value of the plan may deviate from this
estimate as a result of share price development and the degree to
which the performance targets set for the plan are achieved.
Performance share plan 2023–2025
The performance share plan 2023–2025 (PSP 2023–2025)
commences effective as of the beginning of 2023 and the share
rewards payable thereunder will be paid during H1 2026. The payment
of the rewards is conditional on the achievement of the performance
targets which the Board of Directors has set 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 linked to ESG – Sustainalytics
ESG Risk Rating Score.
SHARE-BASED PAYMENTS
Plan Performance Share Plan Performance Share Plan 2022-2024 Performance Share Plan 2023-2025
Type Share Share Share
Instrument Performance Period 2022–2023 Performance Period 2022–2024 Performance Period 2023–2025
Grant date 17.06.2022 17.06.2022 06.03.2023
Beginning of earning period 01.01.2022 01.01.2022 01.01.2023
End of earning period 31.03.2023 31.03.2024 31.03.2025
Vesting date 31.03.2024 31.03.2025 31.03.2026
Vesting conditions Revenue, EPS, Relative TSR & ESG Revenue, EPS, Relative TSR & ESG Revenue, EPS, Relative TSR & ESG
Maximum contractual life, years 2.25 3.25 3.25
Remaining contractual life, years 0.25 1.25 2.25
Number of persons at the end of reporting year 33 33 40
Payment method Equity & Cash Equity & Cash Equity & Cash
Changes during period
Outstanding in the beginning of the period 251,800 380,400 0
Granted during period 1,500 2,667 468,033
Forfeited during period -30,300 -78,550 -25,100
Extercised during period 0 0 0
Outstanding at the end of the period 223,000 304,517 442,933
Valuation parameters for instruments granted
during period
Shareprice at grant, EUR 6.07
Shareprice at reporting period end, EUR 4.36
Expected dividends, EUR 0.82
Risk free rate, % 3.1 %
Volatility, % 23.8 %
Valuation model Monte Carlo
Fair value 31.12, EUR 563,120
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
187Annual Report 2023
FINANCIAL STATEMENTS
EFFECT OF SHARE-BASED INCENTIVES ON THE RESULT:
EUR million 2023 2022
Expenses for the financial year,
sharebased payments paid in equity 0.0 0.6
Expenses for the financial year,
sharebased payments paid in cash 0.0 0.0
Total 0.0 0.6
EUR million 2023 2022
Liabilities arising from share-based
payments 31.12. 0.0 0.0
Total 0.0 0.0
6.5 EVENTS AFTER THE REPORTING PERIOD
Anora announced on 8 January 2024 that Anora Group’s CFO
Sigmund Toth has resigned from his position. He will continue in
his current position until 1 August 2024, at the latest. Sigmund
remains highly committed to contribute to the company’s success
during his notice period, including ensuring a smooth handover to
his successor.
The Board of Directors of Anora Group Plc announced on 14
February 2024 that it has approved the commencement of a new
plan period within the share-based long-term incentive scheme
for the management and selected key employees. Eligible for
participation in PSP 2024-2026 are approximately 50 individuals,
including the members of Anora Group’s Executive Management
Team. If the performance targets set for PSP 2024–2026 are fully
achieved, the aggregate maximum number of shares to be paid
based on this plan is approximately 1,294,000 shares (referring
to gross earning before the withholding of the applicable payroll
tax). The aggregate maximum number of shares to be paid in
specifi c situations based on RSP 2024–2026 is approximately
129,000 shares (referring to gross earning before the withholding of
the applicable payroll tax).
Eligible for participation in PSP 2023–2025 are 33 individuals,
including the members of Anora Group’s Executive Management
Team.
If all the performance targets set for this plan are fully achieved,
the aggregate maximum number of shares to be paid based on this
plan is approximately 442,933 shares (referring to gross earnings
before the withholding of the applicable payroll tax).
The estimated aggregate gross value of the PSP 2023–2025, based
on the current value of Anora Group’s share, is approximately EUR
1.9 million. The materialised value of the plan may deviate from this
estimate as a result of share price development and the degree to
which the performance targets set for the plan are achieved.
Bridge Plan for the years 2022–2023
The Bridge Plan was established to cover specific incentive and
retention needs during the transaction related transition period
during which the joint businesses of Altia Plc and Arcus ASA were
integrated in connection with the formation of Anora Group.
The Bridge Plan was a one-off plan commencing effective as of
the beginning of 2022 and its performance period covered the years
2022–2023. The potential share rewards payable based on the Bridge
Plan would have been paid in listed shares of Anora Group during
H1 2024. The payment of the share rewards was conditional on
the achievement of the performance targets which the Board of
Directors has set for the plan. These performance targets were not
met, and there will therefore not be any rewards based on this bridge
plan in 2024.
Other terms
The value of the reward payable to participants based on the plans is
limited by a share price development-based cutter.
If the individual’s employment with Anora Group terminates
before the payment of the reward, the individual is, as a main rule,
not entitled to any reward based on the respective plan.
Anora announced on 8 March 2024 that Stein Eriksen
(49), M.Sc. (Econ.), has been appointed as CFO and a member
of the Executive Management Team of Anora Group from
the beginning of August 2024. He will report to Jacek Pastuszka,
CEO. Stein Eriksen’s latest position has been CFO of the Norwegian
stock-listed company XXL ASA, the largest sports retailer in
the Nordic countries. He has also acted in a combined role as
the Interim CEO and CFO of XXL ASA. Prior to that, he has had
a long career at the Norwegian stock-listed blue-chip company
Orkla, a leading industrial investment company focused on brands
and consumer-oriented companies. At Orkla, Stein’s most recent
positions were CFO at Orkla Care and SVP Finance at Orkla ASA
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
188Annual Report 2023
FINANCIAL STATEMENTS
Parent company financial statements
ANORA GROUP PLC INCOME STATEMENT (FAS)
EUR million Note 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
NET SALES
1. 250.4 246.1
Increase (+) / decrease (-) in inventories of finished goods and work in
progress -5.1 4.6
Other operating income
2. 25.9 20.2
Materials and services
Raw materials, consumables and goods
Purchases during the period -137.4 -175.3
Change in inventories -13.1 13.0
External services -0.6 -0.2
Total materials and services -151.1 -162.5
Personnel expenses
3.
Wages and salaries -25.8 -23.8
Indirect employee expenses
Pension expenses -4.3 -3.8
Other indirect employee expenses -0.9 -0.8
Total personnel expenses -31.1 -28.4
Depreciation, amortisation and impairment losses
Depreciation and amortisation according to plan
8. -9.0 -9.8
Total depreciation, amortisation and impairment losses -9.0 -9.8
Other operating expenses
4. -61.0 -59.1
OPERATING RESULT 19.1 11.1
EUR million Note 1 Jan-31 Dec 2023 1 Jan–31 Dec 2022
Finance income and expenses
5.
Income from Group companies 33.1 32.0
Income from participating interests 0.9 0.9
Other interest and finance income
From Group companies 4.3 0.2
From others than Group companies 18.3 0.7
Impairment losses on investments in non-current assets -58.7 -1.1
Interest and other finance expenses
To Group companies -2.5 -0.6
To others than Group companies -25.2 -4.0
Total finance income and expenses -29.6 28.2
RESULT BEFORE APPROPRIATIONS AND TAXES -10.6 39.3
Appropriations
6.
Depreciation difference increase (-) / decrease (+) 1.0 1.4
Income tax expense
7.
Current period taxes -2.4 -1.8
Deferred taxes 0.4 0.0
Other direct taxes 0.0 0.0
Total income taxes -2.0 -1.8
RESULT FOR THE PERIOD -11.5 38.9
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
189Annual Report 2023
FINANCIAL STATEMENTS
ANORA GROUP PLC BALANCE SHEET (FAS)
EUR million Note 31 Dec 2023 31 Dec 2022
ASSETS
NON-CURRENT ASSETS
8.
Intangible assets
Intangible rights 0.4 3.1
Other capitalized long-term expenditure 4.0 3.4
Prepayments 1.3 2.1
Intangible assets total 5.8 8.5
Tangible assets
Land and water areas 2.5 2.5
Buildings and structures 17.5 17.3
Machinery and equipment 21.5 22.1
Other tangible assets 0.5 0.5
Prepayments and assets under construction 5.3 4.0
Tangible assets total 47.3 46.4
Investments
Holdings in Group companies 232.3 325.2
Participating interests 13.2 13.0
Other shares and investments 0.6 0.6
Investments total 246.1 338.9
TOTAL NON-CURRENT ASSETS 299.1 393.8
EUR million Note 31 Dec 2023 31 Dec 2022
CURRENT ASSETS
Inventories
9.
Materials and supplies 22.3 35.4
Work in progress 4.0 8.6
Finished goods 16.5 17.0
Advance payments 0.0 -
Inventories total 42.8 61.0
Non-current receivables
10.
Receivables from Group companies 56.4 14.8
Deferred tax assets 0.7 0.3
Non-current receivables total 57.1 15.1
Current receivables
11.
Trade receivables 29.9 36.4
Receivables from Group companies 21.4 93.6
Receivables from participating interest undertakings 0.1 0.1
Accrued income and prepaid expenses 3.2 9.4
Current receivables total 54.6 139.5
Cash at hand and in banks 131.9 44.3
TOTAL CURRENT ASSETS 286.4 259.9
TOTAL ASSETS 585.6 653.7
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
190Annual Report 2023
FINANCIAL STATEMENTS
ANORA GROUP PLC BALANCE SHEET (FAS)
EUR million Note 31 Dec 2023 31 Dec 2022
EQUITY AND LIABILITIES
Equity
13.
Share capital 61.5 61.5
Invested unrestricted equity fund 52.2 52.2
Hedge reserve 0.4 4.4
Retained earnings 59.5 35.5
Profit for the period -11.5 38.9
TOTAL EQUITY 162.0 192.5
Appropriations
14.
Depreciation difference 16.1 17.1
Liabilities
Non-current
15.
Loans from financial institutions 210.0 210.0
Loans from pension institutions 5.3 6.8
Deferred tax liabilities 0.1 1.1
Other liabilities - 4.9
Non-current liabilities total 215.3 222.8
Current
Loans from financial institutions - 30.0
Loans from pension institutions 1.5 1.5
Trade payables 15.5 17.4
Liabilities to Group companies
16. 91.7 90.2
Other liabilities 63.6 62.2
Accrued expenses and deferred income
17. 19.8 20.0
Current liabilities total 192.1 221.3
TOTAL LIABILITIES 407.5 444.1
TOTAL EQUITY AND LIABILITIES 585.6 653.7
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
191Annual Report 2023
FINANCIAL STATEMENTS
ANORA GROUP PLC STATEMENT OF CASH FLOWS (FAS)
EUR million Note 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
CASH FLOW FROM OPERATING ACTIVITIES
Result before taxes -9.5 40.7
Adjustments
Depreciation, amortisation and impairment 9.0 9.8
Gain/loss from disposal of property, plant and equipment and
intangible assets -5.7 -0.8
Finance income and costs 29.6 -28.2
Change in depreciation difference -1.0 -1.4
Other adjustments 2.0 0.2
Adjustments total 33.9 -20.5
Change in working capital
Change in inventories, increase (-) / decrease (+) 8.5 -17.6
Change in trade and other receivables, increase (-) / decrease (+) 9.1 -23.2
Change in trade and other payables, increase (+) / decrease (-) -6.9 -5.3
Change in working capital 10.7 -46.2
Interest paid -16.2 -3.2
Interest received 6.8 0.8
Other finance income and expenses paid -2.9 -1.4
Income taxes paid -2.3 -0.5
Financial items and taxes -14.5 -4.3
NET CASH FLOW FROM OPERATING ACTIVITIES 20.6 -30.3
EUR million Note 1 Jan–31 Dec 2023 1 Jan–31 Dec 2022
CASH FLOW FROM INVESTING ACTIVITIES
Payments for property, plant and equipment and intangible assets -9.0 -7.1
Proceeds from sale of property, plant and equipment and intangible assets
2. 0.5 0.9
Investments in subsidiaries - -81.9
Investments in participating interests -0.1 -5.0
Proceeds from disposals of subsidiaries (net of cash) 56.5 -
Loans granted to subsidiaries -6.7 -82.5
Repayments of loans to subsidiaries 35.9 -
Dividends received
5. 34.0 33.0
NET CASH FLOW FROM INVESTING ACTIVITIES 111.1 -142.7
CASH FLOW FROM FINANCING ACTIVITIES
Changes in commercial paper program -30.0 10.0
Proceeds from current borrowings
16. 2.3 -38.2
Proceeds from non-current borrowings - 293.5
Repayment of non-current borrowings
15. -1.5 -145.0
Dividends paid and other distributions of profits
13. -14.9 -30.4
NET CASH FLOW FROM FINANCING ACTIVITIES -44.0 89.9
CHANGE IN CASH AND CASH EQUIVALENTS 87.6 -83.1
Cash and cash equivalents at the beginning of the period 44.3 127.4
Change in cash and cash equivalents 87.6 -83.1
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 131.9 44.3
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
192Annual Report 2023
FINANCIAL STATEMENTS
NOTES TO ANORA GROUP PLC FINANCIAL STATEMENTS
Accounting policies for financial statements


Non-current assets and depreciations



 
 
 
 
 




Inventories















Pension plans




Cash Pool



Leases

Financial Derivatives
























GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
193Annual Report 2023
FINANCIAL STATEMENTS







Hedge accounting





































Research and development expenditure


Financial securities


Receivables

Sale of trade receivables



Non-current financial liabilities

Income taxes



Foreign currency denominated items



GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
194Annual Report 2023
FINANCIAL STATEMENTS
1. NET SALES
EUR million 2023 2022
Net sales by business areas
Alcohol beverages 130.0 119.2
Industrial services 120.4 127.0
TOTAL 250.4 246.1
Net sales by geographic areas
Finland 191.1 186.2
Europe 57.9 57.8
Rest of the world 1.4 2.1
TOTAL 250.4 246.1
2. OTHER OPERATING INCOME
EUR million 2023 2022
Rental income 1.2 1.2
Income from energy sales 4.0 4.2
Proceeds from disposal of non-current assets* 5.7 0.8
Service income 12.6 10.5
Other income** 2.3 3.4
TOTAL 25.9 20.2
* includes sales gain of trademarks related to sale of Larsen SAS (EUR 5.3 million)
** includes sales gain of inventory related to sale of Larsen SAS (EUR 0.8 million). See also Group
Note 5.2. for more information.
4. OTHER OPERATING EXPENSES
EUR million 2023 2022
Rental expenses -1.6 -1.6
Marketing expenses -6.9 -7.3
Energy expenses -9.5 -9.1
Travel and representation expenses -1.2 -1.2
Repair and maintenance expenses -7.1 -7.1
IT expenses -9.2 -8.1
Outsourcing services -11.2 -11.6
Variable sales expenses -5.8 -5.9
Other expenses -8.5 -7.2
TOTAL -61.0 -59.1
Auditor's fees
Audit fees -0.5 -0.3
Other fees -0.1 -0.1
TOTAL -0.6 -0.4
Environmental expenses


3. NOTES RELATED TO PERSONNEL
EUR million 2023 2022
Wages and salaries -25.8 -23.8
Pension expenses -4.3 -3.8
Other social expenses -0.9 -0.8
TOTAL -31.1 -28.4
EUR million 2023 2022
Fringe benefits (taxable value) -0.7 -0.6
The average number of personnel during the
reporting period 2023 2022
Workers 196 195
Clerical employees 227 211
TOTAL 423 406
EUR million 2023 2022
CEO -0.6 -0.5
Board members -0.5 -0.6
Pension commitments of the Board and CEO

GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
195Annual Report 2023
FINANCIAL STATEMENTS
5. FINANCE INCOME AND EXPENSES
EUR million 2023 2022
Dividend income
From Group companies 33.1 32.0
From participating interest undertakings 0.9 0.9
Total dividend income 34.0 33.0
Interest income
From Group companies 4.3 0.2
From others 2.5 0.6
Total interest income 6.9 0.8
Other finance income
From others 15.8 0.2
Total other finance income 15.8 0.2
TOTAL FINANCE INCOME 56.7 33.9
Interest expenses
To Group companies -2.5 -0.6
To others -13.6 -2.5
Total interest expenses -16.1 -3.1
Other finance expenses
To others
Impairment losses on investments in
non-current assets -58.7 -1.1
Other finance expenses -11.6 -1.5
Total other finance expenses -70.3 -2.6
TOTAL FINANCE EXPENSE -86.4 -5.7
TOTAL FINANCE INCOME AND EXPENSES -29.6 28.2
The following items are included in finance
items of the income statement from fair value
hedges:
Other finance income
Fair value changes of derivatives -0.2 0.0

Group Note 5.2. for more information.
** Impairment losses on investments in non-current assets includes write-downs of shares in
subsidiaries.
6. APPROPRIATIONS
EUR million 2023 2022
Difference between depreciations according to
plan and depreciations made in taxation:
Intangible rights 0.7 0.3
Other intangible assets -0.4 0.0
Buildings and structures 0.3 0.5
Machinery and equipment 0.4 0.5
Other tangible assets 0.0 0.0
TOTAL 1.0 1.4
7. INCOME TAX EXPENSE
EUR million 2023 2022
Income taxes from current period -2.4 -1.8
Income taxes from previous periods 0.0 0.0
Change in deferred tax assets 0.4 0.0
TOTAL -2.0 -1.8
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
196Annual Report 2023
FINANCIAL STATEMENTS
8. SPECIFICATION OF NON-CURRENT ASSETS
EUR million 2023 2022
Intangible assets
Intangible rights
Acquisition cost at 1 January 33.2 33.1
Additions 0.1 0.1
Disposals -15.6 0.0
Transfers between items 0.1 -
Acquisition cost at 31 December 17.7 33.2
Accumulated amortisation at 1 January -30.1 -28.5
Accumulated amortisation on disposals and transfers 13.8 0.0
Amortisation for the period -1.0 -1.7
Accumulated amortisation at 31 December -17.3 -30.1
CARRYING AMOUNT AT 31 DECEMBER 0.4 3.1
Goodwill
Acquisition cost at 1 January 18.7 18.7
Acquisition cost at 31 December 18.7 18.7
Accumulated amortisation at 1 January -18.7 -18.5
Amortisation for the period - -0.2
Accumulated amortisation at 31 December -18.7 -18.7
CARRYING AMOUNT AT 31 DECEMBER - -
Other intangible assets
Acquisition cost at 1 January 27.7 27.3
Additions 1.2 0.2
Transfers between items 2.0 0.3
Acquisition cost at 31 December 30.9 27.7
Accumulated amortisation at 1 January -24.4 -22.1
Amortisation for the period -2.5 -2.3
Accumulated amortisation at 31 December -26.9 -24.4
CARRYING AMOUNT AT 31 DECEMBER 4.0 3.4
Prepayments in intangible assets
Acquisition cost at 1 January 2.1 0.8
Additions 1.3 1.6
Transfers between items -2.1 -0.3
CARRYING AMOUNT AT 31 DECEMBER 1.3 2.1
EUR million 2023 2022
Tangible assets
Land and water areas
Acquisition cost at 1 January 2.5 2.5
Additions - 0.0
Transfers between items 0.0 -
Disposals 0.0 0.0
CARRYING AMOUNT AT 31 DECEMBER 2.5 2.5
Buildings and structures
Acquisition cost at 1 January 100.6 99.7
Additions 1.2 0.7
Transfers between items 0.9 0.3
Disposals -0.1 -0.1
Acquisition cost at 31 December 102.7 100.6
Accumulated depreciation at 1 January -83.3 -81.3
Accumulated depreciation on disposals and transfers 0.1 0.0
Depreciation for the period -1.9 -2.1
Accumulated depreciation at 31 December -85.2 -83.3
CARRYING AMOUNT AT 31 DECEMBER 17.5 17.3
Machinery and equipment
Acquisition cost at 1 January 125.1 124.3
Additions 1.8 1.0
Transfers between items 1.1 0.2
Disposals -16.9 -0.3
Acquisition cost at 31 December 111.1 125.1
Accumulated depreciation at 1 January -103.0 -99.6
Accumulated depreciation on disposals and transfers 16.9 0.1
Depreciation for the period -3.5 -3.6
Accumulated depreciation at 31 December -89.6 -103.0
CARRYING AMOUNT AT 31 DECEMBER 21.5 22.1
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 4.0 0.9
Additions 3.4 3.6
Transfers between items -2.1 -0.5
CARRYING AMOUNT AT 31 DECEMBER 5.3 4.0
CARRYING AMOUNT OF MACHINERY AND EQUIPMENT USED IN PRODUCTION AT 31 DECEMBER 21.2 21.8
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
197Annual Report 2023
FINANCIAL STATEMENTS
EUR million 2023 2022
Investments
Holdings in Group companies
Acquisition cost at 1 January 485.1 402.9
Additions - 81.9
Disposals* -34.3 -
Transfer from partisipating interests - 0.2
Acquisition cost at 31 December 450.8 485.1
Accumulated impairment at 1 January -159.9 -158.8
Impairment -58.7 -1.1
Accumulated impairment at 31 December -218.6 -159.9
CARRYING AMOUNT AT 31 DECEMBER 232.3 325.2
Participating interests
Acquisition cost at 1 January 13.0 8.2
Additions 0.1 5.0
Transfer to holdings in group companies - -0.2
CARRYING AMOUNT AT 31 DECEMBER 13.2 13.0
Other shares and investments
Acquisition cost at 1 January 0.6 0.6
CARRYING AMOUNT AT 31 DECEMBER 0.6 0.6
*During year 2023 Anora Group Plc sold its Larsen cognac business, including shares of Larsen,
inventory and trademarks. Sales gain from shares EUR 6.6 million is included in Finance income
(Note 5). Sales gain from trademarks and inventory totaling EUR 6.1 million is included in Other
operating income (Note 2). Selling expenses EUR 2.0 million were posted in Other operating
expenses and have been reducing the total sales gain. See more information also in Group note
5.2.
9. INVENTORY


10. NON-CURRENT RECEIVABLES
EUR million 2023 2022
Receivables from Group companies
Loan receivables 56.4 14.8
Deferred tax assets
Non-deductible interest expenses 0.4 -
Fixed assets deferred depreciations 0.3 0.3
Deferred tax assets total 0.7 0.3
TOTAL NON-CURRENT RECEIVABLES 57.1 15.1
11. CURRENT RECEIVABLES
EUR million 2023 2022
Receivables from Group companies
Trade receivables 8.1 9.7
Loan receivables 0.3 71.1
Cash Pool receivables 1.9 3.3
Other receivables 3.5 4.5
Derivatives 1.5 0.0
Accrued income and prepaid expenses 6.2 5.0
Total 21.4 93.6
Receivables from participating interest
undertakings
Trade receivables 0.1 0.1
Total 0.1 0.1
Receivables from others
Trade receivables* 29.9 36.4
Accrued income and prepaid expenses 3.2 9.4
Total 33.1 45.8
TOTAL CURRENT RECEIVABLES 54.6 139.5
Accrued income and prepaid expenses
Significant items in accrued income and
prepaid expenses:
Derivatives 0.8 5.8
Others 2.3 3.6
Total 3.2 9.4
* Does not include the sold trade receivables
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
198Annual Report 2023
FINANCIAL STATEMENTS
12. DISCLOSURES ON FAIR VALUES (DERIVATIVES)
2023 2022
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
(level 2) - - - 0.0 - 0.0
Foreign exchange derivatives
( level 2) -0.6 -0.2 -0.4 0.0 0.0 0.0
Commodity derivatives
(level 2) 0.8 - 0.8 5.4 - 5.4
TOTAL 0.2 -0.2 0.4 5.5 0.0 5.5
13. EQUITY
EUR million 2023 2022
Restricted equity
Share capital at 1 January 61.5 61.5
Share capital at 31 December 61.5 61.5
Hedge reserve at 1 January 4.4 1.5
Additions and disposals -4.1 2.9
Hedge reserve at 31 December 0.4 4.4
Total restricted equity 61.9 65.9
Unrestricted equity
Invested unrestricted equity fund at 1 January 52.2 52.2
Invested unrestricted equity fund at
31 December 52.2 52.2
Retained earnings at 1 January 74.4 65.9
Distribution of dividends -14.9 -30.4
Profit for the period -11.5 38.9
Retained earnings at 31 December 48.0 74.4
Total unrestricted equity 100.2 126.6
TOTAL EQUITY 162.0 192.5
Distributable unrestricted equity
Calculation of distributable equity:
Invested unrestricted equity fund 52.2 52.2
Retained earnings at 1 January 74.4 65.9
Distribution of dividends -14.9 -30.4
Profit for the period -11.5 38.9
TOTAL DISTRIBUTABLE UNRESTRICTED EQUITY 100.2 126.6
Company’s share capital:
Number of shares outstanding at the end of the
period 67,553,624 67,553,624
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
199Annual Report 2023
FINANCIAL STATEMENTS
14. APPROPRIATIONS
EUR million 2023 2022
Depreciation difference
Intangible rights 0.1 0.9
Other intangible assets 0.7 0.3
Buildings and structures 0.7 1.0
Machinery and equipment 14.6 14.9
Other tangible assets 0.0 0.0
TOTAL 16.1 17.1
15. LIABILITIES
EUR million 2023 2022
Non-current
Loans from financial institutions 210.0 210.0
Loans from pension institutions 5.3 6.8
Deferred tax liabilities 0.1 1.1
Other liabilities - 4.9
TOTAL 215.3 222.8
16. LIABILITIES TO GROUP COMPANIES
EUR million 2023 2022
Trade payables 0.7 0.9
Cash Pool liabilities 88.9 88.0
Derivative instruments - 0.2
Other accrued expenses 2.2 1.0
TOTAL 91.7 90.2
17. ACCRUED EXPENSES AND DEFERRED INCOME
EUR million 2023 2022
Significant items under accrued expenses:
Holiday pay and other wages and salaries 5.7 5.1
Contract discount 0.9 0.5
Procurement expenses and other accrued
expenses 10.6 13.8
Taxes 0.6 0.5
Derivative instruments 2.1 0.1
TOTAL 19.8 20.0
18. COLLATERALS AND COMMITMENTS
EUR million 2023 2022
Collaterals given on behalf of the Group
companies
Mortgages 18.5 18.5
Guarantees 7.1 4.1
TOTAL COLLATERALS 25.6 22.6
Commitments and other contingencies
Operating and finance lease obligations
Not later than one year 0.7 0.6
Later than one year 0.8 0.8
Total 1.5 1.4
Lease obligations
Not later than one year 0.7 0.7
Later than one year 2.9 0.9
Total 3.7 1.6
Other obligations
Not later than one year 2.3 2.6
Total 2.3 2.6
TOTAL COMMITMENTS 7.5 5.6
VAT liability for real estate investments




GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
200Annual Report 2023
FINANCIAL STATEMENTS
DERIVATIVE CONTRACTS
EUR million 2023 2022
Electricity derivatives
Fair value 0.8 5.4
Nominal value 1.2 2.4
Amount (TWh) 0.0 0.1
Parent company's external forward exchange
contracts
Fair value -2.1 0.2
Nominal value 101.5 22.1
Parent company's internal forward exchange
contracts
Fair value -1.5 -0.2
Nominal value 49.9 7.8
Interest rate derivatives
Fair value - 0.0
Nominal value - 20.0
Emission allowances (kilotons) 2023 2022
Emission allowances received 22.6 22.6
Excess emission allowances from the previous
year 2.0 13.5
Sold emission allowances -2.0 -13.0
Realised emissions -21.6 -21.1
EMISSION ALLOWANCES AT 31 DECEMBER 1.0 2.0
Fair value of the remaining emission
allowances, EUR thousand 53 161




19. RELATED PARTY TRANSACTIONS




GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
201Annual Report 2023
FINANCIAL STATEMENTS
Board of Directors’ proposal for the distribution of profits










  
  
 


The Auditors’ Note






GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
202Annual Report 2023
FINANCIAL STATEMENTS
Auditor’s Report

Report on the Audit of the Financial Statements
Opinion

• 


• 



What we have audited


• 


• 
Basis for Opinion





Independence








Our Audit Approach
Overview
Materiality
Audit Scope
Key Audit
Matters
• 

• 


• 
• 
• 

GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
203Annual Report 2023
FINANCIAL STATEMENTS




Materiality










Overall group materiality 
How we determined it 
Rationale for the materiality
benchmark applied







How we tailored our group audit scope







Key Audit Matters







GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
204Annual Report 2023
FINANCIAL STATEMENTS
Key audit matter in the audit of the group How our audit addressed the key audit matter
Revenue recognition
Refer to note 1.2 in the consolidated financial statements.
Anora’s revenue is generated from the sale of own wine and spirits 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 consideration is an
accounting area that requires management judgement.
We have also 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 streams and different contractual
terms used.
• We assessed the group’s accounting policies over revenue recognition.
• We tested, on a sample basis, accounting treatment of variable considerations to the terms of
underlying agreements.
• We performed reconciliation of the whole product revenue of the significant entities in Finland
to underlying invoices and delivery documents. We gained an understanding of unreconciled
transactions and tested these, on a sample basis, to relevant supporting documents.
• For other significant entities outside of Finland and other revenue streams, we tested, on a
sample basis, sales transactions to incoming cash.
• We examined a sample of credit notes during 2023 and subsequent year end to relevant
supporting documents.
• We tested a sample of sales invoices recorded in December 2023 and January 2024 to
evaluate that revenue had been recognised in the right period.
• We obtained customers confirmations for selected revenue and accounts receivable.
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 € 144 million as of 31
December 2023.
Inventories are measured at the lower of cost and net realizable value.
Self-manufactured products are measured at standard cost which approximate weighted
average cost formula. Fixed and variable production costs are allocated to the cost of
manufactured products.
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. This included observation and / or inquiries in
relation to overall inventory condition.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
205Annual Report 2023
FINANCIAL STATEMENTS
Key audit matter in the audit of the group How our audit addressed the key audit matter
Valuation of tangible and intangible assets
Refer to note 2.1, 2.2 and 2.3 in the consolidated financial statements.
Valuation of tangible and intangible assets, including goodwill allocated to Wine and Spirits
cash generating units and production and logistics assets in Norway. The group reports goodwill
totalling to € 304 million, property plant and equipment of € 63 million and right of use assets of €
68 million as of 31 December 2023.
Goodwill is allocated to Wine and Spirits cash generating units. Management tests goodwill for
potential impairment annually and whenever there is an indication that the carrying value may
be impaired through comparing the recoverable amount against the carrying value of each cash
generating unit. Impairment tests are performed at operating segment level. The recoverable
amounts are determined using the value in use method.
Property, plant and equipment and right of use assets are tested for impairment only when
indicators of impairment exist. Management identified indicators of impairment for the group’s
production and logistics operations in Gjelleråsen, Norway. Therefore, management performed
impairment testing for these Production and Logistics cash generating units and certain
individual assets within. As a result, the total amount of impairment recognised in the period was
approximately € 65 million in relation to production and logistics operations in Gjelleråsen.
Valuation of goodwill and other assets 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 recoverable amount, including the revenue
growth, EBITDA, capital expenditures, working capital, market rentals and discount rates applied to
free cash-flows.
In addition, methodology of determining and allocating impairment, when identified, is complex.
Our audit of goodwill and production and logistics assets valuation focussed 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 calculations of
recoverable amount for relevant cash generating units by comparing it to the requirements of
IAS 36, “Impairment of Assets”.
• We obtained an understanding and evaluated the methodology applied in determining
appropriate level of impairment testing and allocation of identified impairment for production
and logistics operations in Norway.
• We evaluated and challenged management’s future cash flow forecasts and the process by
which they were drawn up, including comparing them to the latest Board approved budgets,
and assessing reasonableness of future sales and profitability projections post the budget
period.
• We compared the current year actual results to the figures for the financial year ended
31 December 2022 included in the prior year impairment models to assess accuracy of
management’s historic forecasts.
• We involved our valuation experts to assess the reasonableness of the discount rates and long-
term growth rates used in goodwill impairment testing.
• Our property valuation experts evaluated and challenged market rentals and discount rates
used in the calculation of recoverable amount of the production and logistics leased facilities in
Norway.
• We considered the appropriateness of assumptions used in the sensitivity analysis performed
by management.
• We considered the adequacy of the related disclosures provided in note 2.1 and 2.2 of the
group’s financial statements.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the parent company financial statements.
GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
206Annual Report 2023
FINANCIAL STATEMENTS
Responsibilities of the Board of Directors and the Managing Director for the Financial
Statements













Auditor’s Responsibilities for the Audit of the Financial Statements









• 




• 


• 

• 







• 


• 
















GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
207Annual Report 2023
FINANCIAL STATEMENTS
Other Reporting Requirements
Appointment


Other Information













• 

• 




PricewaterhouseCoopers Oy



GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
208Annual Report 2023
FINANCIAL STATEMENTS
Independent Auditor’s Reasonable Assurance Report on Anora Group Oyj’s ESEF Financial Statements (Translation of the Finnish Original)





Management’s Responsibility for the ESEF Financial Statements





Our Independence and Quality Management









Our Responsibility















Opinion






PricewaterhouseCoopers O



GOVERNANCEBUSINESS OVERVIEW REPORT BY THE BOARD
OF DIRECTORS
SUSTAINABILITY
209Annual Report 2023
FINANCIAL STATEMENTS
Anora Group Plc
P.O. Box 350, 00101 Helsinki, Finland
+358 207 013 013
communications@anora.com
www.anora.com