Report by the Board of Directors
and Financial Statements 2023
Financial Review 2023
Board of Directors' Report 3
Key Figures 13
Consolidated Financial Statements (IFRS) 16
Consolidated Statement of Financial Position 16
17
18
19
20
1. Key Accounting Policies and Consolidation 20
1.1. General information 20
1.2. Basis of preparation 25
1.3. Accounting estimates and judgements
27
1.4. New and updated IFRS standards 27
29
2.1. Revenue from contracts with customers 29
2.2. Other operating income and expenses 31
32
32
2.5. Income tax 33
35
3.1. Business Combinations 35
3.2. Goodwill and impairment testing 40
3.3. Intangible assets 41
3.4. Tangible Assets 43
3.5. Leases 44
3.6. Trade and other receivables 46
3.7. Trade and other payables 47
48
4.1. Financial risk management 48
4.2. Fair value measurement 51
4.3. Financial assets and liabilities 52
4.3. Financial assets and liabilities (continues) 54
4.4. Cash and cash equivalents 55
4.5. Interest-bearing loans and borrowings 55
4.6. Capital management 57
4.7. Equity 57
4.8 Other shares and investments 58
59
5.1. Related party transactions 59
5.2. Contingent liabilities and commitments 60
5.3. Events after reporting period 60
Financial Statements of the Parent Company 61
61
62
63
Accounting Policies 64
65
66
66
Signatures to the Board of Directors' Report and the Financial Statements 67
68
71
Board of Directors' Report
PHM Group in brief
PHM Group is a property services provider that operates in
the Nordic countries and Germany. We care for people by
caring for their surroundings.
PHM Group consists of the best local enterprises which
share the same values: entrepreneurship, fairness and
responsibility. We believe that the only thing better than
local service is local service with big resources. With PHM,
the customer does not need to choose between a familiar
local entrepreneur or a large group of companies as its
service partner. We offer the best of both worlds.
PHM currently operates in Finland, Sweden, Norway,
Denmark and Germany. The company had nearly 10,000
employees on average during 2023 and its LFL revenue was
EUR 759 million. PHM Group is a growth company and is
constantly expanding into new areas.
PHM Group is owned by funds managed by Norvestor
and an Intera fund, together with the company's senior
management and key personnel.
Operating environment
PHM Group's business is to provide must have monthly and
seasonally recurring services, complemented with a broad
offering of additional services to serve the needs of our
customers. In general, the demand for recurring services
is unaffected by external market factors, whereas the
additional services range from mandatory to discretionary
services of which some are more prone to be impacted
by external market factors. The Group's pricing power
Strategy
PHM Group's job is to take care of people by taking care
of their living environment. PHM serves its customers by
providing a broad range of property maintenance services,
management services and technical services locally in Finland,
Sweden, Norway, Denmark and Germany.
PHM's vision is to grow into a leading local property services
partner in all of its operating countries. The large but
fragmented Northern and Central European property services
market provides a good starting point for the company's
expansion both organically and through acquisitions.
The company's objective of growth is also supported by
megatrends, including urbanisation, the ageing of the building
stock and the increasing use of service outsourcing.
To achieve its objective, PHM has defined five key
cornerstones for its strategy. They represent the areas in
which the company aims to succeed. The cornerstones of
the strategy are organic growth, mergers and acquisitions,
employee experience, operational efficiency, and responsibility
and good governance. The execution of the strategy is driven
by development projects that are based on these strategic
cornerstones.
The company pursues organic growth by increasing the
number of contract customers and by enhancing additional
sales. The latter is driven by offering an increasingly wide
range of additional services and increasing the share of wallet
of contract customers, which the company believes to benefit
both the customer and PHM. Combining the Group's sales
resources and the expertise of the local units enables PHM
to deliver the best possible service experience to housing
is good and thus, the main impacts on PHM's business
from changes in the operating environment are related to
timing of cost and revenue increases of recurring services,
which can temporarily impact the Group's margins,
and fluctuations in customer demand for non-essential
additional services.
The operating environment during the year continued to
be affected by general economic uncertainty in all PHM's
operating countries. The higher interest rates decreased
consumer confidence and weakened the property market.
Private customers showed increased selectivity in, and
to some extent postponed, purchase of non-essential
additional services. Professional property owners have
also decreased investments, and project demand among
commercial and public customers has decreased. Towards
the end of the year, however, interest rate expectations
indicated an end of rate hikes and start of rate decreases
which contributed to stabilising the operating environment.
Further reduced inflation has eased margin pressure and
will also contribute to increased consumer confidence and
stabilising demand going forward.
Despite being a locally operating service company,
PHM is not unaffected by the broader macroeconomic
development. Geopolitical tensions, including Russia's
ongoing war in Ukraine, emerging conflicts in the Middle
East, and tensions between major economies, like China
and the US, continue to cause uncertainty in the operating
environment, which may impact economic growth, inflation,
and consumer confidence. Changes in the monetary
policies of major central banks may impact customer
demand, financing conditions and various currencies that
directly or indirectly affect PHM.
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Board of Directors' Report Consolidated Financial Statements Parent Company's Financial Statements Auditor's report
companies, residents and commercial properties alike.
Growth is also supported by cross-selling opportunities
between the Group companies.
PHM is the leading driver of consolidation in the fragmented
property services market. The low level of consolidation in
the market gives PHM the opportunity to be selective in
its acquisitions, and also supports the healthy pricing of
acquisitions. The focus of acquisitions is on the growth of
the Group's operations in Norway, Denmark and Germany,
and expanding the Group's service range and presence in
selected regions of Finland and Sweden. The Group has
extensive experience of acquisitions, and it uses external
consultants in addition to its in-house resources in the
preparation of acquisitions. The Group's local operating
model enables the quick and low-risk integration of acquired
units and the rapid realisation of synergies.
As PHM's industry is highly labour-intensive, personnel play
a key role in the execution of the company's strategy. PHM
wants to be the best employer in the industry and thereby
strengthen its position and enable growth. The company
provides a safe and equal work environment and support
diversity and inclusion among personnel. As a Group, PHM
can provide its employees with not only diverse development
opportunities but also a local and close-knit workplace
community and operating culture.
PHM Group continuously develops its operations with
the aim of improving efficiency. This enables the Group to
ensure profitable growth, the reliable delivery of services
to customers, and strong cash flow for investors. The
company improves the efficiency of its operations by sharing
best practices between the Group's units, by optimising
its personnel and fleet resources, and by developing the
efficiency of its units in accordance with the Group's common
practices and operating models, for example. The operations
of the local units are also supported by the Group's
centralised support functions, as well as advanced digital
solutions that support the local business operations.
complements PHM's range of services and geographical
presence particularly in the southern and western regions of
Sweden. The acquisition of full-service property maintenance
company MBA Fastighetsservice AB strengthened PHM's
presence in the southern parts of Sweden and especially
the west coast. Further, the acquisition of Västerås-based
full-service real estate service provider MARK Fastighet
Mälardalen AB strengthened PHM's presence and service
offering in the Mälardalen area.
In Norway, PHM grew its business significantly in 2023 by
acquiring Sefbo Group. Sefbo is the leading service provider
of contract and subscription-based property services to
housing associations in Norway. Sefbo's service offering
includes property management, maintenance and cleaning
services, as well as a wide range of other supplementary
services. The acquisition strengthens PHM's range of services
and geographical presence in Norway and provides PHM
with excellent opportunities to expand and develop its
activities both locally and as a group. The acquisition more
than doubled the size of PHM's Norwegian business in terms
of like-for-like revenue. Additionally, PHM strengthened its
service offering in the Oslo region by three acquisitions,
expanding both its property maintenance and cleaning
business.
In Denmark, PHM acquired two sizeable companies; Taurus
Ejendomsadministration ApS, a significant player in property
management specialised in serving institutional property
investors, and Vækst & Miljø A/S, offering a wide range of
services in landscaping, gardening, property maintenance
and snow clearance. Taurus Ejendomsadministration and
PHM's first acquisition in Denmark, Ejendomsvirke, joined
forces and established a new operating organisation to
capitalise on each other's strengths and better serve their
current customer base within property management and
maintenance. Additionally, PHM strengthened its service
offerings in the Copenhagen area by two acquisitions,
expanding both its property maintenance and cleaning
business.
Corporate responsibility is at the core of PHM's business.
PHM offers a wide range of property services that enable
safe and smooth daily life for its customers and employees.
The company's rigorous corporate governance rules
and ethical principles protect both its customers and its
employees. PHM also requires the same from its suppliers
and subcontractors. As a large group of companies, PHM can
make environmentally sustainable choices and decisions that
reduce the environmental impacts of its operations.
Mergers and Acquisitions
In 2023, PHM successfully continued executing its acquisition
strategy. M&A activity was all-time high as PHM completed
both strategic acquisitions as well as continued its expansion
outside the Nordics. The most significant transactions
were the acquisitions of PHM's main competitors Sefbo
Group in Norway and Bredablick Group in Sweden. The
acquisitions strengthen PHM's position as the market leader
in both countries and secure the position as the leading
consolidator in the Nordic market.
In Finland, PHM strengthened its market position and
service offering in several cities. Additionally, PHM expanded
to Laitila by acquiring Vakka-Suomen Talohuolto Oy, to
Pietarsaari by acquiring JS Fastighetsservice Ab Oy and to
Mäntyharju by acquiring property services and maintenance
company Punavaara Oy.
In Sweden, PHM completed several acquisitions in the
fields of property maintenance, property management
and outdoor area maintenance. The strategically most
significant transaction was the acquisition of Bredablick
Group, which increased the size of PHM's Swedish business
by approximately one third in terms of like-for-like revenue
and added one of the best known Swedish residential
property service brands into PHM's portfolio. Bredablick's
services include various services related to residential
property management and maintenance as well as facility
services. Bredablick is a nationwide service provider that
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Board of Directors' Report Consolidated Financial Statements Parent Company's Financial Statements Auditor's report
In Germany, PHM entered the residential property service market in Berlin by acquiring
Marnach Hauswartung GmbH, a facility maintenance and cleaning service provider serving
mainly residential housing. Further, by acquiring MÜTRA Objektmanagement GmbH, a high-
quality provider of facility maintenance, cleaning and outdoor maintenance, PHM strengthened
its presence in Berlin and eastern parts of Germany.
During 2023, PHM completed 29 acquisitions. Together, the closed acquisitions had a EUR
207.0 million positive impact on LTM like-for-like revenue and EUR 29.9 million positive impact
on LTM like-for like adjusted EBITDA, respectively.
Target company Country Region Closing Currency Revenue* EBITDA*
Meincke's Total-Service A/S Denmark Copenhagen July DKKm 8.0 1.9
Bredablick Gruppen*** Sweden Nationwide August SEKm 430.3 14.4
Green Carpet Turku Oy Finland Turku August EURm 0.7 0.2
Vakka-Suomen Talohuolto Oy Finland Laitila September EURm 0.3 0.0
Taurus Ejendomsadministration
ApS Denmark Aarhus September DKKm 73.3 4.2
Vækst & Miljø A/S Denmark Slagelse September DKKm 105.4 13.3
Sefbo Group**** Norway Nationwide October NOKm 730.4 90.9
We Go Fastighet AB Sweden Stockholm October SEKm 29.5 3.5
Marnach Hauswartung GmbH Germany Berlin October EURm 3.6 0.7
Kiinteistötyöt Neitola Oy Finland Rovaniemi November EURm 0.6 0.1
JS Fastighetsservice Ab Oy Finland Pietarsaari November EURm 1.9 0.2
TR-Kiinteistöhuolto Oy Finland Mäntsälä November EURm 0.8 0.0
Hagtorn Fastighetsservice AB and
Hagtorn VVS AB** Sweden Malmö December SEKm 31.6 -0.4
MÜTRA Objektmanagement
GmbH Germany Berlin December EURm 6.2 0.6
Punavaara Oy Finland Mäntyharju December EURm 2.0 0.4
Golden Shine Oy Finland Turku December EURm 1.3 0.2
* Presented financials are based on latest available audited financial statements (local GAAP)
** Unofficial consolidation of group entities
*** No statutory consolidated financials available, presented financials are based on management reporting FY22
**** Like-for-like revenue and adjusted EBITDA
Completed acquisitions and disposals 1-12/2023
Target company Country Region Closing Currency Revenue* EBITDA*
Acquisitions
Saniservice ApS Denmark Copenhagen January DKKm 19.3 2.6
Pirkanmaan Viemäritekniikka Oy Finland Tampere January EURm 1.0 0.1
MBA Fastighetsservice AB and
MBA Bygg AB Sweden Gothenburg February SEKm 132.6 13.2
Väner Förvaltning AB Sweden Karlstad February SEKm 9.9 1.9
B.O Drift AS Norway Oslo March NOKm 16.7 2.2
Cubile Utemiljö AB Sweden Stockholm April SEKm 36.9 5.9
JS-Ilmastointipuhdistus Oy Finland Turku May EURm 0.5 0.1
Oslo Renhold AS Norway Oslo May NOKm 7.1 2.0
Alliansen Renhold AS Norway Oslo May NOKm 14.3 1.8
Norrland Park & Mark AB Sweden Härnösand June SEKm 20.7 5.9
Turun Talopalvelu Oy Finland Turku June EURm 0.3 0.1
MARK Fastighet Mälardalen AB** Sweden Västerås July SEKm 98.1 3.3
Lilla Kloster Gruppen** Sweden Skåne July SEKm 29.7 1.8
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Board of Directors' Report Consolidated Financial Statements Parent Company's Financial Statements Auditor's report
Financial review
The Group's reported revenue was EUR 624.9 million (483.3)
and adjusted EBITDA was EUR 93.7 million (77.2) for 2023. In
addition to the operational development discussed below in
the like-for-like section of the financial review, the business
scale has continued to increase compared to the comparison
period as PHM has completed several sizeable add on
acquisitions during 2022 and 2023 explaining a large part of
the growth year on year. The profitability of some of these
acquisitions has been lower than the previously existing PHM
Group's business, which has diluted the reported EBITDA
margin in the short-term. The profitability is expected to
improve going forward when integration and operational
improvements take effect in accordance with PHM's strategy.
The Group's result for 2023 amounted to EUR -2.3 million
(14.2). In addition to operating costs the result is impacted
by amortisation of customer and brand related intangible
assets from acquisitions made and amortisation of other
long-term expenditure totalling EUR -16.7 million (-13.6)
as well as financing costs amounting to EUR -41.3 million
(-22.3). In addition to interests paid, net financial expenses
include, among others, financing related advisory costs and
realised translation differences. During the review period,
PHM converted intra-group loans into unrestricted equity in
its Norwegian subsidiary, which resulted in a EUR 3.3 million
loss in realised translation differences. Further, the realized
translation differences include a one-time FX loss of EUR
2.7 million due to hedging of the purchase price of Sefbo
between the signing and the closing of the acquisition. The
increase in financing costs is due to increase in debt financing
for execution of PHM's growth strategy.
The Group's LFL revenue increased by 2% to EUR 758.9
million (747.0). LFL revenue is calculated by adjusting for the
revenue of acquired entities for the time when they have
not been a part of the group. At comparable exchange rates,
LFL revenue increased by 6%. LFL revenue development
was supported by increased contract sales in all countries,
attributable to both price increases and increase in the
contract base, but was burdened by lower additional sales
volume. Additional sales decrease was driven by clients
postponing non-essential improvement and maintenance
works due to the current uncertainty in the economic
climate and high interest rates. Price increases of additional
sales in all countries and good development in Denmark
and Germany did not compensate for the decrease in
additional sales volume in Finland, Sweden and Norway. LFL
revenue increased in Finland, Denmark and Germany but
decreased in Sweden and Norway. The impact of exchange
rate fluctuations of EUR -32.8 million was attributable almost
exclusively to the weaking of the Swedish and Norwegian
Krones. At comparable exchange rates the LFL revenue
increased also in Sweden and Norway.
The Group's LFL adjusted EBITDA grew by 3% and was EUR
115.8 million (112.2). At comparable FX rates LFL adjusted
EBITDA increased by 7%. Adjusted EBITDA was supported by
the increased contract revenue and improved sales mix of
additional maintenance services, as well as lower machinery
costs and operating expenses. The result was burdened
by lower additional sales volume in Finland, Sweden and
Norway as well as increased personnel costs. The increase
was largely attributable to in-housing of services provided as
well as higher overtime pay and general salary increases.
The result impact was compensated by lower costs for
external services and materials. Consequently, adjusted
EBITDA margin improved 0.3 pp. from the comparison
period.
The Group's operating cash flow before acquisitions and
financial items was strong, amounting to EUR 68.9 million
(52.7). Operating cash flow was supported by strong EBITDA
and release of working capital but offset by slightly higher
capital expenditure. The operating cash flow excludes
the intra group cash pool debt to the Group's ultimate
parent PHM Group TopCo Oy. Investments into tangible
and intangible assets amounted to EUR -22.5 million
(-17.7) comprising mainly of investments in machinery and
equipment. Investments were higher due to the larger size
of the business operations, postponed vehicle deliveries
from 2022 as well as growth investments made due to new
contracts won.
At the end of the period, interest-bearing net debt was EUR
647.8 million and leverage was at 5.36x. The increase in
interest-bearing net debt from the end of December 2022
is explained mainly by the several large acquisitions made.
The synergy adjusted LFL EBITDA for the previous twelve
months increased. However, the leverage ratio increased
from the level of 4.81x at the end of December 2022 due to
strategic acquisitions made during the period. The liquidity
of the Group remained strong as cash and cash equivalents
at the end of the review period were EUR 35.0 million and
EUR 56.0 million of the Super Senior RCF was undrawn.
To ensure its ability to continue to execute its growth
strategy, the Group considerably strengthened its financial
position by substantially increasing the amount of financing
available to the Group in 2023. During the review period
PHM issued two tap issues of its senior secured callable
floating rate notes due in June 2026, increased the
framework relating to the notes from EUR 200 million to
EUR 450 million, and increased its Super Senior RCF to EUR
77.5 million. New notes were issued in the nominal amount
of EUR 195 million, of which EUR 140 million during the last
quarter to finance the acquisition of Sefbo. Demand for
the issues was good and the notes were issued at a price
above par, demonstrating the markets' confidence in PHM's
strategy and strong resilience of its operations.
At the end of the review period, the total amount of
outstanding senior secured notes totalled EUR 605 million
consisting of the EUR 265 million senior secured floating
rate notes and EUR 340 million senior secured fixed rate
notes. The notes are listed on the Nasdaq Helsinki Stock
Exchange and the Frankfurt Open Market. In total EUR 21.5
million of the Super Senior RCF was utilised.
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Board of Directors' Report Consolidated Financial Statements Parent Company's Financial Statements Auditor's report
Number of employees 2023
2,000
0
4,000 6,000 8,000 10,000
4,316 1,800 1,687 806
Finland
Sweden
Norway
Denmark
Germany
1,209
Personnel and Governance
During 2023, the PHM Group companies employed 9,817
people (LFL) on average across the five countries where the
Group operates. Adjusted for the time the companies have
been part of PHM the average number of employees was
8,389. Like-for-like personnel expenses adjusted for non-
recurring items in January-December totalled EUR 369.4
million (359.5). Reported personnel expenses totalled EUR
307.5 million (225.5).
In 2023, the development of personnel management was
particularly focused on strengthening the capabilities
of supervisors, improving reporting and systems, and
building HR functions in different operating countries. In
various countries, supervisor training that had already
begun continued. To deepen supervisor skills, supervisors
participated in information sessions based on the
employment lifecycle, covering topics such as work capacity
management, employment matters, employer branding,
recruitment practices, onboarding, HR system usage, and
development discussions.
A more detailed description of PHM Group's governance
can be found in the Corporate Governance Statement in the
Annual Report.
Shares and shareholders
The parent company PHM Group Holding Oyj has one issued
share and one class of shares. The only issued share is held
by PHM Group TopCo Oy. PHM Group TopCo Oy is majority
owned by funds managed by Norvestor Equity AS. Other major
owners include funds managed by Intera Partners together
with the Group's senior management and key employees.
Board of Directors' proposal concerning the
distribution of profits
The parent company PHM Group Holding Oyj had EUR 208.4
million in distributable funds on 31 Dec 2023, of which the
profit for the period was EUR 593.9 thousand. The Board
of Directors proposes that EUR 1,468,116.80 shall be
distributed from the fund for unrestricted equity as permitted
by the terms and conditions of the company's financing
arrangements.
Loans, liabilities and contingent liabilities to
related parties
Transactions with related parties are presented in Note 6.1.
Corporate responsibility, statement of non-
financial information and taxonomy disclosures
This section includes a description of corporate responsibility
management at PHM Group, the statement of non-financial
information, and disclosures in accordance with the EU
Taxonomy Regulation.
Developing good governance and corporate responsibility
is one of PHM Group's strategic development projects. The
progress of corporate responsibility is monitored by the
Group Management Team on a monthly basis. In the Group
Management Team, the Director of Corporate Responsibility
and Communications is in charge of corporate responsibility.
Corporate responsibility issues are also discussed by the
country-level management teams as necessary. PHM Group's
Board of Directors monitors the development of corporate
responsibility at least once every six months.
Statement of non-financial information
Description of the business model
PHM Group produces local property services in Finland,
Sweden, Norway, Denmark and Germany. The company's
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Board of Directors' Report Consolidated Financial Statements Parent Company's Financial Statements Auditor's report
unique operating model is based on having boots on
the ground close to customers, supported by a strong
organisation and partner network. PHM Group is made up of
local companies that take care of their customers' properties
and outdoor areas with a proactive approach.
PHM Group's reporting of non-financial information
includes social responsibility and employee-related issues,
respecting human rights, the prevention of corruption
and bribery, environmental issues, and the diversity of the
management. PHM's corporate responsibility strategy has
three cornerstones, which the company promotes through
its business operations: good governance, a safe and diverse
workplace, and the climate and the environment. "Good
governance" includes the prevention of corruption and
bribery, as well as the diversity of the management. The theme
"a safe and diverse workplace" covers social responsibility,
employee-related issues, and respecting human rights. The
theme "climate and the environment" covers environmental
issues.
Social responsibility and employee-related issues
PHM Group complies with labour law, collective agreements,
occupational health and safety regulations, and other
obligations. All PHM employees have a written contract of
employment and the right to unionise. The company observes
consistent HR practices, operating principles and policies.
Professional payroll calculation ensures consistent wage
payment practices. The company's operations are guided by
PHM Group's Code of Conduct and the operating policies that
specify how the company observes ethical business practices
in employee-related matters.
During 2023, PHM introduced a Group-wide whistleblowing
channel for reporting potential misconduct, as defined in the
applicable legislation. The whistleblowing channel is available
to both internal and external stakeholders on the Group's
website.
PHM Group companies had, on average, a total of 9,817
employees (LFL) in five different operating countries in 2023.
Adjusted for the periods of time the various companies were
part of the Group, the average number of personnel was 8,389.
PHM measures employee satisfaction annually. According to
the personnel survey conducted in Finland, Sweden, Norway,
and Denmark in late 2023, the company's strengths include the
supervisors' actions and the respondents' own work. Based on
the survey, PHM's supervisors are approachable and fair, and
they trust in the employees. According to the survey responses,
the employees also feel that their work goes well: they are
able to respond to the demands of their job and are able to
put their skills to good use. The effectiveness of the workplace
community was identified as a development area on the basis
of the survey results. Development is needed, for example, with
regard to the collaborative development of working methods,
taking responsibility together, and ensuring that every member
of the workplace community gets their voice heard.
Supervisors review the results of the personnel survey together
with their teams. Units and teams use the results to prepare
their respective development plans and actions, which will be
monitored during the new year. The results are also utilised in
planning Group-level development measures and the themes
of supervisor training, as well as in actions related to the
management of work ability.
PHM Group continued the development of occupational safety
in 2023. The company's target is to reduce the number of
occupational accidents by 50% each year compared to the
previous year. PHM conducted an internal safety audit at 19
of the units in Finland (55 in 2022). Based on the audits, a
total of 301 safety deviations, development areas and other
observations were recorded. Corrective actions were taken in
response to the observations in 2023 and will be continued
in 2024. In 2023, a new safety reporting tool was deployed in
Finland. It enables the reporting and centralised processing
of safety observations, near misses, threatening and violent
incidents, and occupational accidents.
PHM Group's lost time injury frequency (LTIF) in Finland was
19.2 in 2023 (26.5 in 2022). As the integration of accident
reporting had not yet been completed in 2023, the indicator
is not available for the other countries. PHM continuously
develops the Group's occupational safety indicators and
reporting capabilities. The reporting capabilities vary between
operating countries due to the different countries being in
different stages of development and integration, and due to
strong growth.
PHM developed its safety management capabilities in its
other operating countries by, for example, specifying safety
requirements at the country and unit levels and by identifying
resource needs. The development of centralised safety
management and reporting is part of PHM Group's integration
plan and also depends on the development stage of each
operating country.
PHM Group has recognised that the availability of skilled
professionals is a key risk related to its operations. The
company seeks to mitigate this risk by supporting the units
in recruitment and induction training, developing supervisory
skills and the workplace culture, cooperating with educational
institutions and participating in various employment
promotion projects, and investing in the development
of occupational safety and well-being at work. Diversity
management is one example of the areas the company
seeks to develop. In 2023, PHM Group continued its diversity,
equity and inclusion (DEI) training activities in Finland and also
expanded them to Sweden, Norway and Denmark.
Respecting human rights
PHM Group respects human rights and workers' rights. This
is stated in PHM Group's Code of Conduct and included as a
topic in related training activities. The company's aim is for all
PHM employees to have completed training on the Code of
Conduct.
At PHM, colleagues and job applicants are treated with
respect and equality and without discrimination. The company
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Board of Directors' Report Consolidated Financial Statements Parent Company's Financial Statements Auditor's report
does not condone any form of bullying, harassment or
inappropriate conduct. PHM does not discriminate against
anyone based on age, origin, nationality, language, religion,
belief, opinion, political activity, trade union activity, family
relations, health, disability, sexual orientation or other
personal reasons.
PHM Group operates in Finland, Sweden, Norway, Denmark
and Germany. The company also has supply chains that
extend to various countries, including countries that have
been identified as risk countries from a human rights
perspective. PHM has determined that human rights issues in
the supply chain are the most relevant risks in the company's
business operations. For example, the use of temporary
labour through subcontractors may involve risks related to
working conditions, occupational safety and appropriate HR
practices. With this in mind, the company seeks to promote
responsibility throughout the supply chain and the realisation
of human rights.
Development effort related to supply chain sustainability
continued in 2023, particularly in Finland. PHM Group
deployed a supplier portal in 2023 that enables the company
to more effectively manage the fulfilment of sustainability
requirements and other contractual obligations, for
example. PHM Group also identified blacklisted suppliers
with whom the company will no longer cooperate due to
various sustainability-related reasons. The development of
sustainable procurement will continue in 2024, particularly
in PHM Group's operating countries outside Finland, by
strengthening procurement competencies.
Potential risks related to the supply chain and human
rights violations are addressed as part of the Group's risk
management process. PHM Group was not informed of any
human rights violations in its own operations or supply chains
in 2023.
Anti-corruption and bribery
PHM Group does not condone bribery of any form in its
business operations. All PHM Group employees are required
to act with integrity and transparency. The company has
a policy and training concerning the identification and
prevention of corruption and bribery.
PHM Group's assessment is that the risk of corruption and
bribery in the company's operating countries is present,
but the company does not see this risk as being significant.
The company focuses on guidelines for the prevention of
corruption and bribery, as well as the continuous training
of the personnel, and key employees in particular. The
company's aim is for all PHM employees to have completed
training on the Code of Conduct, and for all of PHM's key
employees (senior management, middle management, the
persons in charge of the support functions) to have completed
training on the prevention of corruption and bribery. Anti-
corruption and bribery training continued in 2023, with a
total of 175 representatives of senior management, middle
management and support functions participating in Finland,
Sweden, Norway and Denmark. The training was completed by
approximately 66% of the target group in 2023.
PHM Group was not informed of any incidents of corruption
or bribery in its own operations or its supply chains in 2023.
Environmental issues
PHM Group has identified the environmental impacts of
its business and is steering its operations towards a less
environmentally damaging direction. PHM's day-to-day
business operations involve a large number of kilometres
driven using various vehicles, the use of machines and
equipment, waste processing, the use of various chemicals,
as well as landscaping and earthworks. Taking environmental
safety into consideration is part of the safety requirements
established for PHM Group's units. Compliance with the
requirements is monitored in various ways, including internal
audits. The aim of these measures is to ensure compliance
with environmental regulations and the orders issued by the
authorities.
PHM Group is committed to achieving climate neutrality in
its own operations by 2035. The company has determined
that reducing the greenhouse gas emissions arising from
fuel consumption is one of the company's most significant
environmental challenges. To enable a controlled and
economical transition, the company launched development
projects related to procurement, fleet management and
reporting in various countries in the latter part of the year in
accordance with its emission reduction plan.
PHM Group's car benefit policy was updated in 2023.
According to the updated policy, the company will prioritise
electric and hybrid vehicles as company cars in the future. In
Finland, the company decided to switch to electrically powered
light machinery, including leaf blowers, mowers, trimmers,
saws and similar tools. The transition to electrically powered
light machinery will continue in early 2024 in the other
operating countries. PHM began to assess alternatives to
production vehicles powered by internal combustion engines
in 2023.
PHM Group has identified physical risks and transition risks
related to climate change. The physical risks are mainly related
to projections of decreasing snowfall, increasing rainfall and
increased extreme weather phenomena, which is why the
company aims to assess the long-term development of its
service offering. The transition risks are primarily related to
the development of fuel and energy prices in the medium
and long term, which is why the company is continuously
investigating alternatives to the use of fossil fuels in particular.
In 2023, PHM developed its emission reporting particularly
with regard to indirect (Scope 3) emissions, and the company
is reporting its Scope 3 emissions for the first time. The
largest sources of emissions in this category were identified
as purchased products and services, and commuting. The
data PHM uses for reporting Scope 3 emissions is still limited
and, with the exception of the Finnish operations, based on
estimates. As a result, the reporting of Scope 3 emissions
involves uncertainty, but it nevertheless helps the company
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Board of Directors' Report Consolidated Financial Statements Parent Company's Financial Statements Auditor's report
establish a better overall picture of its climate impacts. PHM
intends to develop the quality of climate reporting, also with
regard to Scope 3 emissions, in the future.
PHM Group's total emissions (Scope 1, 2 and 3) in 2023
amounted to 100,300 tCO2e (76,400 tCO2e in 2022). The
company's strong growth creates a particular challenge with
regard to the reporting of emissions. In 2023, PHM made 29
acquisitions (34 in 2022), which is why the reported absolute
greenhouse gas emissions increase sharply from one year to
the next. Scope 1 and 2 emissions relative to revenue, which
illustrates the emission intensity, amounted to 74 (66 in 2022).
Diversity of the management
Two of the ten members of PHM Group's Management Team
are female. Of the members of the Management Team, nine
are aged 30-50 and one is over 50 years of age. Various
professional and academic backgrounds as well as four
different nationalities are represented in the Management
Team.
The principles concerning the diversity of the Board of
Directors are taken into account in the election of the
members of the Board of Directors. There are three different
nationalities represented on the Board of Directors. Of the
members of the Board of Directors, three are aged 30-50
and two are over 50 years of age. Various professional and
academic backgrounds are represented in the Board of
Directors. The Board of Directors has one female member and
four male members.
Further information
More information on PHM Group's corporate responsibility,
reporting boundaries and the GRI index is provided in the
company's corporate responsibility report, which is published
annually as part of the Annual Report.
PHM Group and the EU taxonomy
In this section, PHM Group discloses information in
accordance with the following regulation: Regulation (EU)
2020/852 of the European Parliament and of the Council,
issued on 18 June 2020, on the establishment of a framework
to facilitate sustainable investment, and amending Regulation
(EU) 2019/2088 (Taxonomy Regulation).
Pursuant to the Taxonomy Regulation, companies that
are subject to an obligation to report in accordance with
the Directive on non-financial reporting (2014/95/EU) are
required to observe the reporting requirements set out in the
Taxonomy Regulation. PHM Group is subject to this obligation.
The EU's sustainable finance classification system, known
as the EU taxonomy, aims to establish criteria for what kind
of economic activities are environmentally sustainable, and
thereby direct money to sustainable activities. Sustainable
finance and sustainable capital markets are necessary for the
achievement of the EU's climate and environmental objectives.
The taxonomy eligibility of companies is examined by
determining whether their business operations fall within the
scope of the economic activities described in the taxonomy.
Taxonomy alignment is examined by comparing a company's
economic activities with the technical screening criteria of
the EU taxonomy. In addition, companies must show that
the minimum social safeguards are met in its operations.
Legally valid screening criteria have been published for
economic activities that promote climate change mitigation
and adaptation, the sustainable use and protection of water
and marine resources, the transition to a circular economy,
pollution prevention and control, and the protection and
restoration of biodiversity and ecosystems.
In this taxonomy report, PHM reports on activities related
to the two climate objectives, climate change mitigation and
climate change adaptation, For the four other activities related
to the environmental objectives of the EU taxonomy, PHM
Group will assess their eligibility and alignment during 2024.
PHM Group's business operations were identified to
contribute to the climate change mitigation objective.
Therefore, PHM Group's taxonomy eligibility and taxonomy
alignment have been evaluated against the criteria concerning
climate change mitigation. PHM carried out its second
assessment of taxonomy eligibility and taxonomy alignment
for its activities in 2023.
In 2023, there have been no significant changes in the
assessment of the taxonomy eligibility or alignment of PHM
or in the content of the taxonomy report compared to the
previous year. PHM strives to develop its taxonomy reporting
capabilities in the coming years.
Taxonomy eligibility
PHM Group reports taxonomy at Group level. The assessment
has been carried out with the company's finance and
sustainability departments and taxonomy experts based on
an analysis of the company's business. In examining taxonomy
eligibility, three economic activities were identified that are
relevant to PHM Group's business operations: 7.3. Installation,
maintenance and repair of energy efficiency equipment,
7.5. Installation, maintenance and repair of instruments and
devices for measuring, regulation and controlling energy
performance of buildings, and 9.3. Professional services
related to energy performance of buildings.
Activity 7.3. was interpreted as particularly including the
installation and replacement of energy-efficient lighting
sources carried out by PHM's units, the installation and
maintenance of heating, water and ventilation systems, and
the installation of low-energy water supply solutions.
Activity 7.5. includes the installation and maintenance of
thermostats, smart thermostat systems and sensor devices
by PHM's units, as well as the maintenance of energy
management systems at properties, lighting control systems,
and smart electricity meters, among other things.
Activity 9.3. includes, in particular, energy surveys and energy
efficiency assessments carried out by PHM's units as part of
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technical property services.
Taxonomy alignment
To assess taxonomy alignment, PHM Group has evaluated
whether the criteria for making a substantial contribution to
climate change mitigation are met. Most of PHM's business
operations are related to contract-based services comprising
various essential property maintenance and cleaning services.
These services include activities that fall within the scope of
the aforementioned taxonomy-eligible activities.
However, determining the share of individual taxonomy-
eligible and taxonomy-aligned activities within the broader
services is challenging at present due to reporting
technicalities. Consequently, PHM's share of taxonomy-eligible
and taxonomy-aligned activities indicated in this report is low.
The market has also not yet established clear interpretations
for the application of the criteria in the property services
business.
Part of the assessment of taxonomy alignment is that
companies must do no significant harm to the achievement
of the EU's other environmental objectives. In accordance
with the "do no significant harm" criteria, the company is
required to carry out a comprehensive assessment of climate
risks and vulnerabilities. While PHM Group takes climate risks
into account in its operations, the company has not carried
out climate risk assessments based on science and climate
scenarios to the extent required by the taxonomy. With regard
to pollution prevention and control, activity 7.3. is also subject
to the requirement that the company must not manufacture,
use or bring to the market any hazardous substances or
compounds listed in certain EU Regulations and Directives.
PHM complies with the relevant legislation in its procurement
and operations, but unit-specific information on compliance
with the boundary values for hazardous substances has not
been reported. PHM's taxonomy-eligible activities are not
subject to other "do no significant harm" criteria aside from
climate change adaptation and pollution prevention.
The EU taxonomy requires companies to observe minimum
social safeguards with regard to human rights, fair
competition, the prevention of corruption and bribery, and
taxation. PHM takes these themes into consideration in
its business operations in accordance with its corporate
responsibility strategy. More information on PHM's social
responsibility practices is provided on the corporate
responsibility report, which is published as part of the
Annual Report.
Taxonomy indicators
Taxonomy eligibility and alignment was assessed in terms
of three financial indicators: revenue, capital expenditure
and operating expenditure. As not all of the alignment
criteria for taxonomy alignment are met in the company's
business operations due to the reasons mentioned
above, PHM reports only the taxonomy-eligible share
of the aforementioned indicators. PHM has determined
that 1.5 per cent of its revenue (LFL, in accordance with
International Accounting Standards) and 1.2 per cent of its
operating expenditure (LFL, in accordance with International
Accounting Standards) is taxonomy-eligible. No taxonomy-
eligible capital expenditure was identified for PHM.
Revenue
PHM Group's taxonomy-eligible revenue (LFL, in accordance
with International Accounting Standards) has been
compared to PHM Group's total revenue. Taxonomy-eligible
but not taxonomy-aligned revenue of EUR 11.3 million (1.5%
of the Group's LFL revenue) was identified. The taxonomy-
eligible revenue for activities 7.3. and 7.5. is related to the
sales of additional services related to electricity, heating,
water and ventilation systems by PHM's maintenance units,
and the revenue of separate units that provide technical
electricity, heating, water and ventilation system services.
The activity-specific allocation of revenue is based on an
estimate, as the additional service sales of PHM's units have
not been categorised in the company's own accounting
in a manner that corresponds to the economic activities
specified in the taxonomy. PHM aims to increase the
accuracy of its assessment methodology within the next few
years. Revenue corresponding to activity 9.3. is generated
from the energy consulting services provided by PHM's units
in Sweden.
Capital expenditure
PHM Group's taxonomy-eligible capital expenditure has
been compared to PHM Group's total capital expenditure.
In the Delegated Regulation supplementing the Taxonomy
Regulation, capital expenditure is defined as covering
additions to property, plant and equipment and intangible
assets during the financial period. No taxonomy-eligible
capital expenditure was identified for PHM.
Operating expenditure
PHM Group's taxonomy-eligible operating expenditure (LFL,
in accordance with International Accounting Standards)
has been compared to PHM Group's total operating
expenditure, excluding labour costs (employees and
subcontracting). Taxonomy-eligible but not taxonomy-
aligned operating expenditure of EUR 2.0 million (1.2% of
the Group's LFL operating expenditure) was identified. In
the Delegated Regulation supplementing the Taxonomy
Regulation, operating expenditure is defined as covering
direct non-capitalised costs that relate to research and
development, building renovation measures, short-term
lease, maintenance and repair, and any other direct
expenditures relating to the day-to-day servicing of assets of
property, plant and equipment by the undertaking or third
party to whom activities are outsourced that are necessary
to ensure the continued and effective functioning of such
assets. PHM's taxonomy-eligible operating expenditure was
identified as the material expenses associated with sales
of additional services related to electricity, heating, water
and ventilation systems by PHM's maintenance units. The
calculation is based on the assumption that the material
expense is distributed between the different types of
services in the same ratio as taxonomy-eligible revenue.
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Revenue
(LFL, in accordance with International
Accounting Standards) Capital expenditure
Operating expenditure
(LFL, in accordance with International
Accounting Standards)
Economic activities M€ % M€ % M€ %
Taxonomy-eligible but not taxonomy-aligned activities 11.3 1.5 0.0 0.0 2.0 1.2
7.3 Installation, maintenance and repair of energy efficiency equipment 1.5 0.2 0.0 0.0 0.3 0.2
7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation
and controlling energy performance of buildings 4.2 0.6 0.0 0.0 0.7 0.5
9.3 Professional services related to energy performance of buildings 5.6 0.7 0.0 0.0 1.0 0.6
Non-taxonomy-eligible activities 747.6 98.5 23.5 100.0 157.2 98.8
Taxonomy-eligible and taxonomy-aligned activities 0.0 0.0 0.0 0.0 0.0 0.0
7.3 Installation, maintenance and repair of energy efficiency equipment 0.0 0.0 0.0 0.0 0.0 0.0
7.5 Installation, maintenance and repair of instruments and devices for measuring, regulation
and controlling energy performance of buildings 0.0 0.0 0.0 0.0 0.0 0.0
9.3 Professional services related to energy performance of buildings 0.0 0.0 0.0 0.0 0.0 0.0
Group, total 758.9 100.0 23.5 100.0 159.2 100.0
PHM has no activities related to nuclear energy or fossil natural gas.
Events after the review period
The Group has continued its strategy of growing through acquisitions even after the year end
and continues to have a strong pipeline of active dialogues. None of the closed transactions are
such that it would have a material impact on the Group's business or financial position.
In March 2024, PHM Group Holding Oyj issued a tap issue of senior secured callable floating
rate notes in a nominal amount of EUR 35 million under a framework of EUR 450 million. The
net proceeds from the tap issue will be used for general corporate purposes and working
capital purposes of the Group.
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EUR million, unless otherwise specified 2023 2022
Reported
Revenue (net sales) 624.9 483.3
EBITDA 86.2 71.9
Adjusted EBITDA 93.7 77.2
Adjusted EBITDA margin -% 15.0% 16.0%
Adjusted EBITA 65.0 56.0
Adjusted EBITA margin -% 10.4% 11.6%
Profit for the period -2.3 14.2
Like-for-like (LFL)
LFL Revenue 758.9 747.0
LFL EBITDA 108.4 106.4
LFL adjusted EBITDA 115.8 112.2
LFL adjusted EBITDA margin -% 15.3% 15.0%
LFL adjusted EBITA 80.8 78.8
LFL adjusted EBITA margin -% 10.6% 10.5%
Financial position
Equity ratio, % 19.0% 20.6%
Net interest-bearing debt (NIBD) 647.8 421.2
Leverage, x 5.36 4.81
Interest coverage ratio, x 1.77 2.66
Operating cash flow before acquisitions 68.9 52.7
Cash conversion, % 79.9% 73.4%
Other
Average number of employees, LFL 9,817 -
Average number of employees, Reported 8,389 5,615
Key Figures
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Alternative performance measures (APM)
The company applies the ESMA (European Securities and Markets Authority) guidelines
concerning the presentation of alternative performance measures.
The company uses and presents the following alternative performance measures to better
illustrate the operational development of its business: operating profit before the amortisation
of intangible assets (EBITA), EBITDA, adjusted EBITA, adjusted EBITDA, and like-for-like figures.
The items included in the aforementioned APMs consist of the following:
Adjusted EBITA and EBITDA 2023 2022
EBIT 40.8 37.0
Amortisation 16.7 13.6
EBITA 57.5 50.6
M&A related consultancy costs 2.9 2.8
Business related non-recurring items 4.1 1.7
Other non-recurring items 0.5 0.9
Adjusted EBITA 65.0 56.0
LFL impact of acquisitions made 15.7 22.8
LFL adjusted EBITA 80.8 78.8
EBIT 40.8 37.0
Depreciations 28.7 21.3
Amortisation 16.7 13.6
EBITDA 86.2 71.9
M&A related consultancy costs 2.9 2.8
Business related non-recurring items 4.1 1.7
Other non-recurring items 0.5 0.9
Adjusted EBITDA 93.7 77.2
LFL impact of acquisitions made 22.1 34.9
LFL adjusted EBITDA 115.8 112.2
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Formulas of Key Figures
EBITDA = Operating profit + depreciations and amortisation
EBITDA margin -% =
Operating profit + depreciations and amortisation
x 100
Net sales
EBITA = Operating profit + amortisation
EBITA margin -% =
Operating profit + amortisation
x 100
Net sales
Adjusted EBITDA = EBITDA + non-recurring items
Adjusted EBITDA margin -% =
Adjusted EBITDA
x 100
Net sales
Adjusted EBITA = EBITA + non-recurring items
Adjusted EBITA margin -% =
Adjusted EBITA
x 100
Net sales
LFL Revenue (net sales) = Net sales + like-for-like adjustments
LFL EBITDA = EBITDA + like-for-like adjustments
LFL adjusted EBITDA = Adjusted EBITDA + like-for-like adjustments
LFL adjusted EBITDA margin -% =
LFL adjusted EBITDA
x 100
Net sales
LFL adjusted EBITA = Adjusted EBITA + like-for-like adjustments
Formulas of Key Figures
LFL adjusted EBITA margin -% =
LFL adjusted EBITA
x 100
Net sales
LFL synergy adjusted EBITDA = LFL adjusted EBITDA + run rate synergies
Equity ratio, % =
Shareholders' equity
x 100
Balance sheet total - advances received
Net interest bearing debt (NIBD) = Interest bearing liabilities - cash and cash equivalents
Leverage, x =
Net interest bearing debt (NIBD)
LFL synergy adjusted EBITDA
Interest coverage ratio, x =
Interest costs, excluding interests on lease liabilities
EBITA
Operating cash flow before
acquisitions
=
EBITDA + change in working capital (excluding intra group
liability to ultimate parent) + Proceeds from sale of tangible
and intangible assets + Purchase of tangible and intangible
assets
Cash conversion, % =
EBITDA
x 100
Operating cash flow before acquisitions
Average number of employees,
LFL
=
The average number of employees at the end of previous
financial year and of each calendar month during the
accounting period including the number of employees of
entities acquired during the previous financial year for the
time which they have not been part of the Group
Average number of employees,
Reported
=
The average number of employees at the end of previous
financial year and of each calendar month during the
accounting period
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Consolidated Financial Statements (IFRS)
Consolidated Statement of Financial Position
EUR thousand | Note | 31 Dec 2023 | 31 Dec 2022 |
| Assets | |||
| Non-current assets | |||
Goodwill | 3.2 | ||
Intangible assets | 3.3 | ||
Tangible assets | 3.4 | ||
Right-of-use assets | 3.5 | ||
Other shares and investments | 4.8 | ||
Other receivables | 3.6 | ||
Deferred tax assets | 2.5 | ||
Total non-current assets | |||
| Current assets | |||
Trade receivables | 3.6 | ||
Inventories | |||
Loan receivables | 4.3 | ||
Other current assets | 3.6 | ||
Cash and cash equivalents | 4.2; 4.4 | ||
Total current assets | |||
Total assets |
EUR thousand | Note | 31 Dec 2023 | 31 Dec 2022 |
| Equity and liabilities | |||
| Equity | |||
Share capital | 4.7 | ||
Fund for unrestricted equity | 4.7 | ||
Retained earnings | - | - | |
Translation differences | - | ||
Equity attributable to equity holders of the parent | |||
Total equity | |||
| Non-current liabilities | |||
Interest-bearing loans and borrowings | 4.1-4.3; 4.5 | ||
Other non-current liabilities | 3.7 | ||
Lease liabilities | 3.5; 4.5 | ||
Deferred tax liabilities | 2.5 | ||
Total non-current liabilities | |||
| Current liabilities | |||
Trade payables and other payables | 3.7 | ||
Interest-bearing loans and borrowings | 4.1-4.3; 4.5 | ||
Lease liabilities | 3.5; 4.5 | ||
Income tax payable | 2.5 | ||
Total current liabilities | |||
Total liabilities | |||
Total equity and liabilities |
Report by the Board of Directors and Financial Statements 2023
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| 1 Jan-31 Dec | 1 Jan-31 Dec | ||
EUR thousand | Note | 2023 | 2022 |
Revenue (net sales) | 2.1. | ||
Other operating income | 2.2. | ||
Materials and services | 2.2. | - | - |
Employee benefit expenses | 2.3., 5.1. | - | - |
Depreciations, amortisations and impairment | 3.2.; 3.3.; 3.4. | - | - |
Other operating expenses | 2.2. | - | - |
Operating profit (EBIT) | |||
Financial income | 2.4. | ||
Financial expenses | 2.4. | - | - |
Profit before tax | - | ||
Taxes | 2.5. | - | - |
Profit for the financial period | - |
Consolidated Statement
of Profit and Loss
Consolidated Statement of
Other Comprehensive Income
| 1 Jan-31 Dec | 1 Jan-31 Dec | ||
EUR thousand | Note | 2023 | 2022 |
Profit for the financial period | - | ||
| Other items of other comprehensive income | |||
Items that may be reclassified to profit or loss in subsequent periods | |||
| Exchange differences on translation of foreign | |||
operations, net of tax | - | ||
Items that will not be reclassified to profit or loss in subsequent periods | |||
Other comprehensive income/(loss) for the year, net of tax | - | ||
| Total comprehensive income for the financial | |||
period | |||
Profit for the period attributable to Equity holders of the parent | - |
Report by the Board of Directors and Financial Statements 2023
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Consolidated Statement of Changes in Equity
2023 | Equity belonging to the Parent Company | |||||
| Fund for unrestricted | Translation | |||||
EUR thousand | Note | Share Capital | equity | differences | Retained earnings | Total equity |
Equity on 1 Jan 2023 | - | - | ||||
Profit for the period | - | - | ||||
Other comprehensive income | 4.7. | |||||
Total comprehensive income | - | |||||
Increase in Fund for unrestricted equity | 4.7. | |||||
Distribution of profit to Parent company | 4.7. | - | - | |||
Reclassification | 4.7. | |||||
Other changes | - | - | ||||
Equity on 31 Dec 2023 | - | |||||
2022 | Equity belonging to the Parent Company | |||||
| Fund for unrestricted | Translation | |||||
EUR thousand | Note | Share capital | equity | differences | Retained earnings | Total equity |
Equity on 1 Jan 2022 | - | |||||
Profit for the period | ||||||
Other comprehensive income | 4.7. | - | - | |||
Total comprehensive income | - | |||||
Increase in Fund for unrestricted equity | 4.7. | |||||
Distribution of profit to Parent company | 4.7. | - | - | |||
Reclassification | 4.7. | - | ||||
Other changes | - | - | ||||
Equity on 31 Dec 2022 | - | - | ||||
Report by the Board of Directors and Financial Statements 2023
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Consolidated Statement of Cash Flows
EUR thousand | 2023 | 2022 |
| Operating activities | ||
Profit (loss) | - | |
| Adjustments to reconcile profit before tax to net cash flows: | ||
Income tax expenses | ||
Depreciation and impairment | ||
Finance income and expenses | ||
Other adjustments | - | - |
Change in working capital | - | |
Other adjustments without payment | - | |
Income tax paid | - | - |
Net cash flow from operating activities | ||
| Net cash flow from investing activities | ||
Acquisition of tangible and intangible assets | - | - |
Acquisition of a subsidiary, net of cash acquired (Note 3.1.) | - | - |
Proceeds from sale of subsidiaries | ||
Net cash flow from investing activities | - | - |
EUR thousand | 2023 | 2022 |
| Net cash flow from financing activities | ||
Proceeds from fund for unrestricted equity | ||
Paid dividens and other distribution of profit | - | |
Net change in borrowings | ||
Net interests and finance costs paid | - | - |
Payments of lease liabilities | - | - |
Net cash flow from financing activities | ||
Net increase in cash and cash equivalents | ||
Effect of exchange rate changes on cash and cash equivalents | - | - |
Cash and cash equivalents at 1 Jan (4.4.) | ||
Cash and cash equivalents at 31 Dec |
Report by the Board of Directors and Financial Statements 2023
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Notes to the Consolidated Financial Statements
1. Key Accounting Policies and Consolidation
Report by the Board of Directors and Financial Statements 2023
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The consolidated financial statements of the
Group include: % equity interest
Name
Country of
incorporation 2023 2022
The consolidated financial statements of the
Group include: % equity interest
Name
Country of
incorporation 2023 2022
Report by the Board of Directors and Financial Statements 2023
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The consolidated financial statements of the
Group include: % equity interest
Name
Country of
incorporation 2023 2022
The consolidated financial statements of the
Group include: % equity interest
Name
Country of
incorporation 2023 2022
Report by the Board of Directors and Financial Statements 2023
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The consolidated financial statements of the
Group include: % equity interest
Name
Country of
incorporation 2023 2022
The consolidated financial statements of the
Group include: % equity interest
Name
Country of
incorporation 2023 2022
Report by the Board of Directors and Financial Statements 2023
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Report by the Board of Directors and Financial Statements 2023
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Report by the Board of Directors and Financial Statements 2023
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Report by the Board of Directors and Financial Statements 2023
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1.3. Accounting estimates and judgements applied in the
The preparation of PHM's consolidated financial statements requires management to use
judgement, estimates and assumptions that affect the reported amounts of revenues,
expenses, assets and liabilities, and the accompanying disclosures. Uncertainty about these
assumptions and estimates could result in outcomes that require a material adjustment to the
carrying amount of assets or liabilities affected in future periods. The actual values may differ
from these estimates and assumptions.
The most significant accounting policies requiring judgement by the management and the key
factors of uncertainty related to estimates are presented in the following notes:
- Business combinations, value of net assets acquired and contingent considerations (Note 3.1)
- Goodwill impairment testing (Note 3.2)
- Expected credit losses (Note 4.1)
- Leases (Note 3.5)
1.4. New and updated IFRS standards
PHM adopts the new and amended standards and interpretations, if applicable, when they
become effective. The new and amended standards that become effective on 1 January
2023 or later are not expected to have a significant impact on PHM's consolidated financial
statements.
The following new and amended standards have been issued and become effective on 1
January 2023 or later. PHM's perspective about the relevancy of each amended standard have
been included in the summary below.
Disclosure of Accounting Policies - Amendments to IAS 1 Presentation of Financial
Statements and IFRS Practice Statement 2 Making Materiality Judgements (effective
for financial years beginning on or after 1 January 2023)
The amendments clarify the application of materiality to disclosure of accounting policies.
Definition of Accounting Estimates - Amendments to IAS 8 Accounting Policies,
Changes in Accounting Estimates and Errors (effective for financial years beginning on or
after 1 January 2023)
The amendments clarify how companies should distinguish changes in accounting policies
from changes in accounting estimates, with a primary focus on the definition of and
clarifications on accounting estimates.
Deferred Tax related to Assets and Liabilities arising from a Single Transaction -
Amendments to IAS 12 Income Taxes (effective for financial years beginning on or after 1
January 2023)
The amendments narrow the initial recognition exemption (IRE) and clarify that the exemption
does not apply to transactions such as leases and decommissioning obligations which give rise
to equal and offsetting temporary differences.
International Tax Reform - Pillar Two Model Rules - Amendments to IAS 12 Income
Taxes (the temporary mandatory exception is effective immediately upon publication on 28
May 2023; disclosures requirements are effective for annual reporting periods beginning on or
after 1 January 2023).
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The amendments give relief from accounting for deferred taxes arising from the OECD's
(Organisation for Economic Co-operation and Development) international tax reform and
require new disclosures to compensate for the potential loss of information resulting from
the relief.
Lease Liability in a Sale and Leaseback - Amendments to IFRS 16 Leases * (effective
for financial years beginning on or after 1 January 2024, early application is permitted)
The amendments introduce a new accounting model for variable payments and will require
seller-lessees to reassess and potentially restate sale-and-leaseback transactions entered
into since the implementation of IFRS 16 in 2019.
Amendments to IAS 1 Presentation of Financial Statements *: Classification of
Liabilities as Current or Non-current Date; Classification of Liabilities as Current
or Non-current - Deferral of Effective Date; Non-current Liabilities with Covenants
(effective for financial years beginning on or after 1 January 2024, early application is
permitted)
The amendments are to promote consistency in application and clarify the requirements for
determining if a liability is current or non-current. The amendments specify that covenants to
be complied with after the reporting date do not affect the classification of debt as current
or non-current at the reporting date. The amendments require to disclose information
about these covenants in the notes to the financial statements. The amendments also clarify
transfer of a company's own equity instruments is regarded as settlement of a liability.
Liability with any conversion options might affect classification as current or non-current
unless these conversion options are recognized as equity under IAS 32.
Supplier Finance Arrangements - Amendments to IAS 7 Statement of Cash Flows
and IFRS 7 Financial Instruments: Disclosures * (effective for financial years beginning
on or after 1 January 2024, early application is permitted)
The amendments enhance the transparency of supplier finance arrangements and their
effects on a company's liabilities, cash flows and exposure to liquidity risk. Amendments
require to disclose quantitative and qualitative information about supplier finance programs.
Lack of Exchangeability - Amendments to IAS 21 The Effects of Changes in Foreign
Exchange Rates * (effective for financial years beginning on or after 1 January 2025, early
application is permitted)
The amendments require to apply a consistent approach in assessing whether a currency can
be exchanged into another currency and, when it cannot, in determining the exchange rate to
use and the disclosures to provide.
* not yet endorsed for use by the European Union as of 31 December 2023
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2. Group Performance
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2.2. Other operating income and expenses
Materials and services
Materials and services consists of acquisitions of typical equipment and materials related to the
inventory and services provided to customers. If inventory value is written off it is booked to
materials in costs of goods sold.
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3. Capital Employed
Acquisitions in 2023
During 2023, PHM Group made acquisitions in all its operating countries; ten in Finland, nine
in Sweden, four in Norway, four in Denmark and two in Germany. Details of the acquisitions in
2023 are presented in the table below.
Acquisitions in Finland
In Finland, PHM strengthened its market position and service offering in several cities.
Additionally, PHM expanded to Laitila by acquiring Vakka-Suomen Talohuolto Oy, to Pietarsaari
by acquiring JS Fastighetsservice Ab Oy and to Mäntyharju by acquiring property services and
maintenance company Punavaara Oy.
Acquisitions in Sweden
In Sweden, PHM completed several acquisitions in the fields of property maintenance, property
management and outdoor area maintenance. The strategically most significant transaction
was the acquisition of Bredablick Group, which increased the size of PHM's Swedish business
by approximately one third in terms of like-for-like revenue and added one of the best known
Swedish residential property service brands into PHM's portfolio. Bredablick's services include
various services related to residential property management and maintenance as well as
facility services. Bredablick is a nationwide service provider that complements PHM's range
of services and geographical presence particularly in the southern and western regions of
Sweden. The acquisition of full-service property maintenance company MBA Fastighetsservice
AB further strengthened PHM's presence in the southern parts of Sweden and especially the
west coast. Further, the acquisition of Västerås-based full-service real estate service provider
MARK Fastighet Mälardalen AB strengthened PHM's presence and service offering in the
Mälardalen area.
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Acquisitions in Norway
In Norway, PHM grew its business significantly in 2023 by acquiring Sefbo Group. Sefbo is
the leading service provider of contract and subscription-based property services to housing
associations in Norway. Sefbo's service offering includes property management, maintenance
and cleaning services, as well as a wide range of other supplementary services. The acquisition
strengthens PHM's range of services and geographical presence in Norway and provides PHM
with excellent opportunities to expand and develop its activities both locally and as a group.
The acquisition more than doubled the size of PHM's Norwegian business in terms of like-for-
like revenue. Additionally, PHM strengthened its service offering in the Oslo region by three
acquisitions, expanding both its property maintenance and cleaning business.
Acquisitions in Denmark
In Denmark, PHM acquired two sizeable companies; Taurus Ejendomsadministration ApS, a
significant player in property management in Denmark, and Vækst & Miljø A/S, offering a wide
range of services in landscaping, gardening, property maintenance and snow clearance. Taurus
Ejendomsadministration and PHM's first acquisition in Denmark, Ejendomsvirke, joined forces
and established a new operating organisation to capitalise on each other's strengths and better
serve their current customer base within property management and maintenance. Additionally,
PHM strengthened its service offerings in the Copenhagen area by two acquisitions, expanding
both its property maintenance and cleaning business.
Acquisitions in Germany
In Germany, PHM entered the residential property service market in Berlin by acquiring
Marnach Hauswartung GmbH, a facility maintenance and cleaning service provider serving
mainly residential housing. Further, by acquiring MÜTRA Objektmanagement GmbH, a high-
quality provider of facility maintenance, cleaning and outdoor maintenance, PHM strengthened
its presence in Berlin and eastern parts of Germany.
Acquired company Country
Transaction
month Currency Revenue* EBITDA*
Saniservice ApS Denmark January DKKm 19.3 2.6
Pirkanmaan Viemäritekniikka Oy Finland January EURm 1.0 0.1
MBA Fastighetsservice AB and MBA
Bygg AB Sweden February SEKm 132.6 13.2
Väner Förvaltning AB Sweden February SEKm 9.9 1.9
B.O Drift AS Norway March NOKm 16.7 2.2
Acquired company Country
Transaction
month Currency Revenue* EBITDA*
Cubile Utemiljö AB Sweden April SEKm 36.9 5.9
JS-Ilmastointipuhdistus Oy Finland May EURm 0.5 0.1
Oslo Renhold AS Norway May NOKm 7.1 2.0
Alliansen Renhold AS Norway May NOKm 14.3 1.8
Norrland Park & Mark AB Sweden June SEKm 20.7 5.9
Turun Talopalvelu Oy Finland June EURm 0.3 0.1
MARK Fastighet Mälardalen AB** Sweden July SEKm 98.1 3.3
Lilla Kloster Gruppen** Sweden July SEKm 29.7 1.8
Meincke's Total-Service A/S Denmark July DKKm 8.0 1.9
Bredablick Gruppen*** Sweden August SEKm 430.3 14.4
Green Carpet Turku Oy Finland August EURm 0.7 0.2
Vakka-Suomen Talohuolto Oy Finland September EURm 0.3 0.0
Taurus Ejendomsadministration
ApS Denmark September DKKm 73.3 4.2
Vækst & Miljø A/S Denmark September DKKm 105.4 13.3
Sefbo Group**** Norway October NOKm 730.4 90.9
We Go Fastighet AB Sweden October SEKm 29.5 3.5
Marnach Hauswartung GmbH Germany October EURm 3.6 0.7
Kiinteistötyöt Neitola Oy Finland November EURm 0.6 0.1
JS Fastighetsservice Ab Oy Finland November EURm 1.9 0.2
TR-Kiinteistöhuolto Oy Finland November EURm 0.8 0.0
Hagtorn Fastighetsservice AB and
Hagtorn VVS AB** Sweden December SEKm 31.6 -0.4
MÜTRA Objektmanagement GmbH Germany December EURm 6.2 0.6
Punavaara Oy Finland December EURm 2.0 0.4
Golden Shine Oy Finland December EURm 1.3 0.2
* Presented financials are based on latest available audited financial statements (local GAAP)
** Unofficial consolidation of group entities
*** No statutory consolidated financials available, presented financials are based on management reporting FY22
**** Like-for-like revenue and adjusted EBITDA
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Acquisitions in 2023
EUR thousand
Purchase price
Consideration paid in cash 241,567
Contingent considerations (Note 4.5) -4,242
Total 237,325
Fair value of assets and liabilities recognised on acquisitions
Assets
Intangible assets (Note 3.3)
Customer related intangibles 66,273
Marketing related intangibles 8,791
Other intangible assets 108
Intangible assets 75,172
Tangible assets (Note 3.4) 8,927
Land and water areas -
Buildings 146
Machinery & equipment 8,593
Construction in progress -
Other equipment 188
Other assets 53,878
Cash and cash equivalents 18,856
Total assets 156,833
Liabilities
Non-interest bearing liabilities 39,914
Interest bearing liabilities 68,764
Deferred tax liability (Note 2.5) 16,338
Total liabilities 125,017
Total identifiable net assets at fair value 31,816
Goodwill arising on acquisition (Note 3.2) 219,596
Purchase consideration transferred 251,412
Acquisitions in 2023
EUR thousand
Cash flow impact of acquisitions
Paid in cash
Cash and cash equivalents -241,567
Expenses related to the acquisition -2,710
Net cash flow on acquisition -244,277
Acquisitions in 2022
During 2022, PHM made acquisitions in all its operating countries; 13 in Finland, three in
Sweden, ten in Norway, seven in Denmark and expanded to Germany by acquiring Schultz
Gruppe. PHM also disposed of one small Swedish company. Please see details in the table
below of the acquisitions and disposals in 2022.
Entry to the German market
The largest acquisition made by PHM in 2022 was the acquisition of German Schultz Gruppe by
which PHM entered the German market. Schultz Gruppe is an owner-managed property service
company serving a wide range of commercial, industrial and residential properties, offering
cleaning and maintenance services, technical maintenance services and building management
services in Northern Germany. The acquisition is strategically important to the Group as it
opens a new market with significant growth opportunities and enables the continuing execution
of the Group's strategy and diversification of the geographical risk of the Group.
Acquisitions in Finland
In Finland, PHM strengthened its market position and service offering in multiple locations
around the country including the capital region by acquiring a number of local competitors
and specialist service providers. Additionally, PHM expanded to Vammala and Sastamala by
acquiring Vammalan Talonmies ja Siivouspalvelu Oy.
Acquisitions in Sweden
In Sweden, PHM strengthened its position especially in the Gothenburg area and in Northern
Sweden. The largest acquisition in Sweden was Parkkompaniet i Boden Ab, a fast-growing
outdoor maintenance company operating in several cities in Northern Sweden. PHM also
divested a small Swedish company with operations that did not fit the core service offering of
PHM.
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Acquisitions in Norway
In Norway, PHM increased the size of its business significantly during 2022. The largest
acquisitions were Ren Service AS, a property service company providing a variety of cleaning
and maintenance services in the Oslo area, and PBT Gruppen, a full service property
maintenance company operating in Vestfold & Telemark and Greater Oslo areas. Additionally,
add-on acquisitions were made in both Oslo and Trondheim, and operations were expanded to
Fredriksstad by acquiring RenBolig Service og Omsorg AS and to the Halden area by acquisition
of Rokke Hageservice AS.
Acquisitions in Denmark
In Denmark, PHM increased the size of its business significantly during 2022. The largest
acquisitions were the aqcuisitions of Altiren A/S and Alt I Polering ApS, and OK Rengøring
AS and KRS Service ApS, both active mainly in the cleaning business in the Copenhagen
area. Furthermore, in addition to strengthening the existing property maintenance business
in Copenhagen, PHM also increased its management capabilities by acquiring WA ApS in
Copenhagen and expanded to Jutland with the acquisition of Grindsted Vinduesservice ApS.
Acquired company Country
Transaction
month Currency Revenue* EBITDA*
Hagen Hageservice AS Norway January NOKm 12.8 2.4
Princip Redovisning Ab Sweden January SEKm 5.5 1.4
Sundby Rengørings Service ApS Denmark February DKKm 11.3 2.1
Daseko ApS Denmark March DKKm 11.4 1.0
Vaktmester-Gruppen AS Norway March NOKm 12.1 -0.2
Vammalan Talonmies ja
Siivouspalvelu Oy Finland March EURm 0.9 0.1
Turun Sähköhuolto Oy Finland March EURm 0.8 0.0
Parkkompaniet i Boden Ab Sweden April SEKm 44.0 11.3
RenBolig Service og Omsorg As Norway April NOKm 12.2 1.4
Sähköasennus Salminen Oy Finland April EURm 2.0 0.4
P. Kiinteistöpalvelut Oy Finland April EURm 1.1 0.2
Unce Oy Finland April EURm 2.5 0.5
Lojonia Palvelut Oy Finland April EURm 0.8 0.1
Karkkilan Huolto Oy Finland April EURm 1.1 0.0
Acquired company Country
Transaction
month Currency Revenue* EBITDA*
Porvoon Talotiimi Oy Finland May EURm 2.0 0.6
Siniservice Oy and Puhtaasti
Mäkinen Oy Finland May EURm 0.7 0.1
Altiren As and Altipolering ApS Denmark June DKKm 44.4 8.2
HuoneistoHait Oy Finland June EURm 0.3 0.0
H.N. Service** Denmark June DKKm 5.8 2.3
International NordicLife Förvaltning
AB Sweden July SEKm 34.3 -3.1
OK Rengoring AS and KRS Service
ApS Denmark July DKKm 46.5 6.0
Grindsted Vinduesservice ApS Denmark July DKKm 10.9 1.7
Kilderent As Norway July NOKm 5.4 0.6
WA ApS Denmark August DKKm 18.5 0.9
Ren Service AS Norway September NOKm 83.9 7.6
Karsikon Talohuolto Oy Finland September EURm 2.8 0.1
Pukinmäen Kiinteistöhuolto and PK
Kuivaus Oy Finland September EURm 3.8 0.3
Totopro Oy Finland October EURm 1.4 0.3
3 Kløver AS Norway October NOKm 30.9 0.5
Schultz Gruppe and Corporate Care
GmbH*** Germany October EURm 32.8 3.5
EC Renhold As Norway October NOKm 11.5 3.5
Svendsen Vaktmester &
Vedlikeholdservice AS Norway October NOKm 11.0 0.2
Rokke Hageservice AS Norway November NOKm 9.2 0.7
PBT Gruppen Norway November NOKm 83.1 2.0
Disposed company
Berga Lås & Larm Ab Sweden June SEKm 6.9 0.5
* Presented financials are based on latest available audited financial statements
** Asset purchase
*** Unofficial consolidation of group entities
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EUR thousand Acquisitions in 2022
Purchase price
Consideration paid in cash 98,193
Contingent considerations (Note 4.5) 1,582
Total 99,775
Fair value of assets and liabilities recognised on acquisitions
Assets
Intangible assets (Note 3.3)
Customer related intangibles 14,468
Marketing related intangibles 214
Other intangible assets 108
Intangible assets 14,789
Tangible assets (Note 3.4) 6,412
Land and water areas -
Buildings 146
Machinery & equipment 8,593
Construction in progress -
Other equipment 188
Other assets 35,740
Cash and cash equivalents 10,686
Total assets 67,628
EUR thousand Acquisitions in 2022
Liabilities
Non-interest bearing liabilities 22,099
Interest bearing liabilities 15,983
Deferred tax liability (Note 2.5) 3,803
Total liabilities 41,886
Total identifiable net assets at fair value 25,743
Goodwill arising on acquisition (Note 3.2) 73,873
Purchase consideration transferred 99,615
Cash flow impact of acquisitions
Paid in cash
Cash and cash equivalents -98,193
Expenses related to the acquisition -2,557
Net cash flow on acquisition -100,750
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EUR thousand
Land and
water areas Buildings
Machinery &
equipment
Other
equipment Total
1 Jan 2022 150 1,707 42,190 1,247 45,295
Additions - 232 20,077 525 20,834
Business combinations (Note 3.1) - 1,274 5,129 9 6,412
Disposals - -175 -2,831 - -3,006
Reclassifications - -1 1 - -
Depreciation charge for the year - -314 -8,283 -61 -8,658
Translation differences - 1 -633 -1,210 -1,842
31 Dec 2022 150 2,725 55,649 510 59,034
Additions - 950 22,663 375 23,988
Business combinations (Note 3.1) - 146 8,593 188 8,927
Disposals - -367 -1,729 -21 -2,118
Reclassifications -7 62 486 -444 98
Depreciation charge for the year - -463 -10,700 -170 -11,332
Translation differences - -0 -230 -31 -262
31 Dec 2023 143 3,052 74,732 408 78,335
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Right-of-use assets
EUR thousand Buildings Vehicles Machinery Other Total
1 Jan 2022 16,755 3,925 1,596 9 22,285
Additions 3,781 3,335 486 15 7,617
Business combinations 6,553 1,657 1,827 24 10,061
Depreciations for the
financial year -8,496 -2,897 -1,214 -16 -12,622
Translation differences -407 -280 -115 -1 -803
At 31 Dec 2022 18,186 5,740 2,580 31 26,536
1 Jan 2023 18,186 5,740 2,580 31 26,536
Additions 13,438 4,340 2,611 85 20,474
Business combinations 8,736 6,633 3,408 - 18,777
Depreciations for the
financial year -11,449 -4,315 -1,571 -47 -17,383
Translation differences -257 -232 -213 -1 -703
At 31 Dec 2023 28,653 12,166 6,814 68 47,701
Lease liabilities
EUR thousand 2023 2022
1 Jan 27,222 22,856
Additions 23,742 10,209
Business combinations 18,777 10,062
Lease payments -18,807 -14,834
Interest expenses -1,999 -1,071
31 Dec 48,936 27,222
EUR thousand 2023 2022
Long-term lease liabilities 29,476 15,020
Short-term lease liabilities 19,459 12,202
31 Dec 48,936 27,222
The maturity analysis of lease liabilities is disclosed in Note 4.5. Borrowings and lease liabilities.
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4. Financial Instruments and Capital Structure
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Level 2:
The fair value of these assets or liabilities is based on valuation techniques, for which the lowest
level input that is significant to the fair value measurement is directly or indirectly observable.
The inputs for the valuation are based on quoted or other readily available source.
Level 3:
Valuation techniques for which the lowest level input that is significant to the fair value
measurement is unobservable and require independent consideration and judgement from
the valuation perspective.
For assets and liabilities that are recognised in the financial statements at fair value on a
recurring basis, PHM determines whether transfers have occurred between levels in the
hierarchy by re-assessing categorisation (based on the lowest level input that is significant to
the fair value measurement as a whole) at the end of each reporting period.
At each reporting date, the PHM's management analyses the movements in the values of
assets and liabilities which are required to be remeasured or re-assessed as per the PHM's
accounting policies.
For the purpose of fair value disclosures, PHM has determined classes of assets and liabilities
on the basis of the nature, characteristics and risks of the asset or liability and the level of the
fair value hierarchy, as explained above.
In PHM Group contingent liabilities are based on level 3 information. Management's estimate
regarding contingent liabilities is based on the financial development of the target company,
supported by its historical result, budget and latest business plan.
Fair values
Set out in the financial instruments' tabular presentation (Note 4.3. Financial assets and
liabilities) is a comparison, by class, of the carrying amounts and fair values of PHM's financial
instruments, other than those with carrying amounts that are reasonable approximations of
fair values.
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4.5. Interest-bearing loans and borrowings
Interest-bearing liabilities and net interest-bearing debt
Net interest-bearing debt
EUR thousand Note 2023 2022
Non-current interest-bearing liabilities 4.3. 603,940 418,297
Current interest-bearing loans and borrowings 4.3. 24,706 4,314
Lease liabilities 3.5. 48,936 27,222
Contingent consideration 4.3. 5,214 2,987
Cash and cash equivalents 4.4. -35,026 -31,632
Net interest-bearing debt total 647,769 421,187
Contingent considerations
PHM has contingent considerations related to its acquisitions. PHM recognises contingent
considerations at fair value through profit or loss. Re-evaluation is made at each reporting date
based on the likelihood of meeting the predetermined targets set at acquisition. The earn-out
is based on an agreed performance target of the acquired entity, which is typically an agreed
EBITDA target for the entity.
In connection with the acquisitions of the financial period ending on 31 December 2023, PHM
has agreed on contingent consideration based on the performance of the acquired companies.
PHM has estimated the contingent consideration to an amount of EUR 5,214 thousand included
in the acquisition price at the acquisition date, of which EUR 2,100 thousand will mature in less
than five years and EUR 3,114 thousand will mature in less than a year.
In connection with the acquisitions of the financial period ending on 31 December 2022, PHM
has agreed on contingent consideration based on the performance of the acquired companies.
PHM has estimated the contingent consideration to an amount of EUR 2,987 thousand included
in the acquisition price at the acquisition date, of which EUR 676 thousand will mature in less
than five years and EUR 2,311 thousand will mature in less than a year.
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Changes in the interest-bearing liabilities
31 Dec 2023
EUR thousand
Opening
balance 1 Jan
Business
combinations
Translation
differences
Other
changes
Reporting date
balance 31 Dec
Non-current interest-
bearing liabilities 418,297 1,043 -78 184,679 603,940
Current interest-bearing
liabilities 4,314 207 4 20,180 24,706
Lease liabilities 27,222 18,777 -700 3,636 48,936
Contingent
considerations 2,987 - -21 2,248 5,214
Total changes in
interest-bearing
liabilities 452,819 20,028 -795 210,744 682,796
31 Dec 2022
EUR thousand
Opening
balance 1 Jan
Business
combinations
Translation
differences
Other
changes
Reporting date
balance 31 Dec
Non-current interest-
bearing liabilities 303,971 5,433 -161 109,053 418,297
Current interest-bearing
liabilities 33,584 388 -107 -29,550 4,314
Lease liabilities 22,856 10,062 -818 -4,877 27,222
Contingent
considerations 4,228 - -107 -1,135 2,987
Total changes in
interest-bearing
liabilities 364,639 15,883 -1,193 73,491 452,819
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4.6. Capital management
The primary objective of the Group's capital management is to ensure continuity of operations
(going concern), enable the execution of the Group's strategy and increase the shareholder
value.
PHM manages its capital structure and makes adjustments in light of changes in economic
conditions and the requirements of the financial covenants, and to ensure availability of capital.
To maintain or adjust the capital structure, PHM may issue new debt instruments, repay existing
debt, adjust the dividend payment to shareholders, return capital to shareholders or issue new
shares. PHM monitors its capital structure by following its leverage ratio, equity and net debt
levels. Within net debt, PHM includes interest bearing loans and borrowings, lease liabilities and
contingent considerations, less cash and cash equivalents.
Interest-bearing net debt is presented separately in Note 4.5. Interest-bearing loans and
borrowings.
Capital structure
EUR thousand 2023 2022
Net debt (Note 4.5.) 647,769 421,187
Equity 207,527 152,216
Leverage, x 5.36 4.81
In order to achieve these objectives, PHM's capital management, amongst other things, aims
to ensure that it meets the financial covenants attached to the interest-bearing loans and
borrowings that are a prerequisite to maintaining the desired capital structure. Breaches
in meeting the financial covenants would permit the bank to immediately call loans and
borrowings. There have been no breaches of the financial covenants of any interest-bearing
loans and borrowing in the current review period. PHM further aims to keep its leverage ratio
below 5.5x to ensure availability of debt capital with reasonable terms. Leverage is calculated
by dividing the interest-bearing net debt by the LFL synergy adjusted EBITDA. Additional
information regarding the calculation of leverage is found in the Key Figures section in the the
Board of Directors' Report.
No changes were made in the objectives, policies or processes for managing capital during the
fiscal year 2023.
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5. Other Notes
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5.3. Events after reporting period
The Group has continued its strategy of growing through acquisitions even after the year end
and continues to have a strong pipeline of active dialogues. None of the closed transactions are
such that it would have a material impact on the Group's business or financial position.
In March 2024, PHM Group Holding Oyj issued a tap issue of senior secured callable floating
rate notes in a nominal amount of EUR 35 million under a framework of EUR 450 million. The
net proceeds from the tap issue will be used for general corporate purposes and working
capital purposes of the Group.
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EUR thousand
1 Jan-31 Dec
2023
1 Jan-31 Dec
2022
Revenue (net sales) 0 0
Other operating expenses -1,313 -1,185
Operating profit (loss) -1,313 -1,185
Financial income and expenses
Other interest and financial income 36,358 13,555
Interest and other financial expenses -41,826 -18,839
Financial income and expenses, total -5,468 -5,284
Profit (loss) before appropriations and taxes -6,781 -6,468
Group contribution 7,416 6,038
Depreciation reserve -1 0
Taxes -41 0
Profit for the financial period 594 -431
Financial Statements of the Parent Company
Parent Company Income Statement (FAS)
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Parent Company Balance Sheet (FAS)
EUR thousand 2023 2022
Assets
Non-current assets
Tangible assets 23 0
Investments
Holdings in Group companies 294,410 224,410
Subordinated loan receivable 36,855 26,792
Receivables from Group companies 484,887 277,719
Total investments 816,152 528,921
Total non-current assets 816,175 528,921
Current assets
Current receivables 60 49
Receivables from Group companies 8,728 43,509
Total current receivables 8,787 43,557
Cash equivalents 500 0
Total current assets 9,287 43,557
Total assets 825,463 572,479
EUR thousand 2023 2022
Equity and liabilities
Equity
Share capital 80 80
Other reserves (Ltd) 208,239 160,238
Retained earning -431 -1
Profit (loss) for the financial year 594 -431
Total shareholder's equity attributable to equity holders of the
parent 208,481 159,887
Depreciation reserve 1 0
Liabilities
Non-current liabilities
Bond loan 605,000 410,000
Total non-current liabilities 605,000 410,000
Current liabilities
Liabilities to Group companies 9,515 1,315
Loans from financial institutions 0 0
Short term liabilities 2,466 1,277
Total current liabilities 11,981 2,592
Total liabilities 616,981 412,592
Total equity and liabilities 825,463 572,479
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Cash Flow Statement of the Parent Company
EUR thousand 2023 2022
Operating activities
Profit before tax -6,781 -6,468
Adjustments to reconcile profit before tax to net cash flows:
Finance income and expenses 5,468 5,284
Change in working capital 43,873 -32,869
Net cash flow from operating activities 42,559 -34,054
Net cash flow from investing activities
Acquisition of a subsidiary, net of cash acquired -70,000 -
Investments in intangible and tangible assets -30 -
Net cash flow from investing activities -70,030 0
Net cash flow from financing activities
Loans granted -184,666 -70,000
Proceeds from borrowings 195,000 110,000
Repayment of borrowings - -5,000
Change in equity 46,685 16,331
Net interest and finance cost paid -29,048 -17,277
Net cash flow from financing activities 27,971 34,054
Net increase in cash and cash equivalents 500 0
Cash and cash equivalents at 1 Jan - -
Cash and cash equivalents at 31 Dec 500 0
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Accounting Policies
The financial statements have been prepared in accordance with the Small Business Act (in
accordance with Chapters 2 and 3 of the PMA).
Valuation and accrual principles and methods
The company's valuation principles and methods as well as accrual principles and methods
are in accordance with sections 3: 1.2-3 of the PMA (Small Business Act), therefore no separate
notes are presented on these.
Notes concerning the parent company's balance sheet
Asset breakdown
EUR thousand 2023 2022
Holdings in Group companies
PHM Group Oy 294,410 224,410
Breakdown of long-term receivables
EUR thousand 2023 2022
Subordinated loan receivable PHM Group Oy 23,569 21,823
Subordinated loan receivable Kotikatu Oy 5,367 4,969
Subordinated loan receivable Nokian Kiinteistöhuolto Oy 753 0
Subordinated loan receivable PHM Finland Oy 1,420 0
Subordinated loan receivable Cateva Oy 740 0
Subordinated loan receivable PHM Liikekiinteistöt Oy 667 0
Subordinated loan receivable Kiinteistöhuolto J Rusanen Oy 1,060 0
Subordinated loan receivable Kotkan Kiinteistöpalvelu Oy 659 0
Subordinated loan receivable Kiinteistöpalvelu Lintula Oy 229 0
Subordinated loan receivable Kiinteistöhuolto Jurvelin Oy 1,407 0
Subordinated loan receivable TL-Maint Oy 983 0
Loan receivable PHM Group Oy 484,887 277,719
Long-term receivables total 521,742 304,511
Breakdown of short-term receivables
EUR thousand 2023 2022
Receivables from group companies 8,728 43,509
Other receivables 60 49
Short-term receivables total 8,787 43,557
Cash and cash equivalents 500 0
Cash and cash equivalents 500 0
Breakdown of Equity items
Restricted equity
EUR thousand 2023 2022
Share capital 1 January 80 0
Increase 0 80
Decrease 0 0
Share capital 31 December 80 80
Total restricted equity 80 80
Unrestricted equity and other equity reserves
EUR thousand 2023 2022
Other reserves 1 January 160,238 158,318
Increase 48,000 2,000
Decrease 0 -80
Other reserves 31 December 208,239 160,238
Other reserves total 208,239 160,238
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Retained earnings
EUR thousand 2023 2022
Retained earnings 1 January -431 -1
Profit (loss) for the period 594 -431
Retained earnings 31 December 163 -431
Non-restricted equity attributable to the owners of the parents
EUR thousand 2023 2022
Retained earnings/losses 163 -431
Total restricted equity 80 80
Total unrestricted equity 208,239 160,238
Total Equity 208,481 159,887
Distributable funds attributable to the owners of the parents
and subordinated loans
EUR thousand 2023 2022
Other reserves 208,239 160,238
Retained earnings/losses 163 -431
Total 208,401 159,807
Total amounts of dividend income, interest income and interest expenses
EUR thousand 2023 2022
Other interest and financial income 36,358 13,555
Interest and other financial expenses -41,826 -18,839
Total -5,468 -5,284
Notes Concerning the Parent
Company's Income Statement
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Number and groups of personnel
The company did not have any employees during the financial year.
Loans and securities granted to the CEO, members of the Board of Directors
and other related parties
EUR thousand 2023 2022
Accounts payable to PHM Group Oy 0 0
Other liabilities to PHM Group TopCo Oy 1,311 1,315
Nordea Cash Pool account liability to PHM Finland Oy 8,204 0
Nordea Cash Pool account receivable from PHM Finland Oy 0 34,467
Holdings in other companies 2023 2022
PHM Group Oy 100% 100%
Notes concerning reporting entity included in the Group
PHM Group Holding's parent company is PHM Group TopCo Oy. The consolidated financial
statements are available at Takomotie 1-3, FI-00380 Helsinki, Finland.
Parent Company's Notes
Concerning Personnel and
Members of the Organs
Board of Directors' proposal for measures concerning the company's profit and
any other distribution of non-restricted equity.
The parent company PHM Group Holding Oyj had EUR 208.4 million in distributable funds on
31 Dec 2023, of which the profit for the period was EUR 593.9 thousand. The Board of Directors
proposes that EUR 1,468,116.80 shall be distributed from the fund for unrestricted equity as
permitted by the terms and conditions of the company's financing arrangements.
Other commitments and obligations for the Group 2023 2022
Liabilities with pledges, mortgages or other assets pledged as collateral
Liabilities 0 47,000
Total 0 47,000
Securities pledged as collateral for own commitments regarding the
above-mentioned liabilities
Business mortgages 1,250,000 650,000
Total 1,250,000 650,000
Board of Directors' Report
Referred to in the Limited Liability
Companies Act
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Signatures to the Board of Directors'
Report and the Financial Statements
Karl Svozilik Ståle Angel
Chairman of the Board Member of the Board
Tuomas Sarkola Marika af Enehjelm
Member of the Board Member of the Board
Svein Olav Stølen Ville Rantala
Member of the Board CEO
Auditor's note
A report on the audit performed has been issued on 23 April 2024.
KPMG Oy Ab
Turo Koila
Authorised Public Accountant
In Helsinki, 23 April 2024
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To the Annual General Meeting of PHM Group Holding Oyj
Report on the Audit of the Financial Statements
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of
the report is legally binding.
Opinion
We have audited the financial statements of PHM Group Holding Oyj (business identity
code 3123811-8) for the year ended 31 December 2023. The financial statements comprise
the consolidated balance sheet, income statement, statement of comprehensive income,
statement of changes in equity, statement of cash flows and notes, including material
accounting policy information, as well as the parent company’s balance sheet, income
statement, statement of cash flows and notes.
In our opinion
- the consolidated financial statements give a true and fair view of the group’s financial
position, financial performance and cash flows in accordance with IFRS Accounting
Standards as adopted by the EU
- the financial statements give a true and fair view of the parent company’s financial
performance and financial position in accordance with the laws and regulations governing
the preparation of financial statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our
responsibilities under good auditing practice are further described in the Auditor’s
Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group companies in accordance with
the ethical requirements that are applicable in Finland and are relevant to our audit, and we
have fulfilled our other ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the
parent company and group companies are in compliance with laws and regulations applicable
in Finland regarding these services, and we have not provided any prohibited non-audit services
referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit services that we have
provided have been disclosed in note 2.4.1 to the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is
determined based on our professional judgement and is used to determine the nature, timing
and extent of our audit procedures and to evaluate the effect of identified misstatements on
the financial statements as a whole. The level of materiality we set is based on our assessment
of the magnitude of misstatements that, individually or in aggregate, could reasonably be
expected to have influence on the economic decisions of the users of the financial statements.
We have also taken into account misstatements and/or possible misstatements that in our
opinion are material for qualitative reasons for the users of the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most
significance in our audit of the financial statements of the current period. These matters were
addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on these matters. The significant
risks of material misstatement referred to in the EU Regulation No 537/2014 point (c) of Article
10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes
consideration of whether there was evidence of management bias that represented a risk of
material misstatement due to fraud.
Auditor's Report
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The key audit matter
How the matter was addressed in
the audit
Revenue recognition - Accounting principles of the consolidated financial
statements and note 2.1
- Completeness and accuracy of revenue
recognition is a key audit matter due to the
following reasons:
- Sales are generated by individual services
rendered in multiple locations.
- The volume of sales transactions is high and
the group uses several pricing- and contract
models.
- We have evaluated the group’s revenue
recognition and accounting practises in
relation to the principles specified in IFRS.
- We have tested the operating effectiveness
of the key internal controls ensuring the
completeness and accuracy of revenue
recognition.
- In addition, we have performed substantive
audit procedures over the completeness,
accuracy and cut-off of revenue recognition
and evaluated the appropriate presentation
of the notes to the consolidated financial
statements.
Valuation of goodwill and intangible assets related to acquisitions (Accounting
principles and note 3.1 and 3.2 to the consolidated financial statements)
- At the end of financial year 2023 the goodwill
and intangible assets were together EUR 808
million represents a significant part, 74%, of the
consolidated balance sheet total.
- Goodwill is tested for impairment annually and
whenever there is any indication that the goodwill
may be impaired. If any such indication exists, the
recoverable amount of the asset is estimated. The
recoverable amount is determined based on value
in use. The preparation of goodwill impairment
testing requires estimates be made about the
future. Management estimates and associated
critical uncertainties relate to the components
of the calculation of recoverable amount, which
include the discount rate, terminal growth rate,
and the development of net sales and operating
profit, including cost levels for the company.
- The intangible assets mainly consist intangible
assets identified in connection the acquisitions.
- Due to the significance of the carrying amount and
significant management judgments involved in the
forecasts, valuation of goodwill is considered a key
audit matter.
- We critically assessed the management
fundamentals and assumptions underlying
the cash flow projections for the coming
years.
- We utilised our own valuation specialists
that assessed the appropriateness of the
discount rate, the technical accuracy of the
calculations and the assumptions used in
relation to market and industry information.
- In addition, we considered the appropriate
presentation of the disclosures on
goodwill impairment testing in the financial
statements.
Responsibilities of the Board of Directors and the Managing Director for the
Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of
consolidated financial statements that give a true and fair view in accordance with IFRS
Accounting Standards as adopted by the EU, and of financial statements that give a true and
fair view in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements. The Board of Directors and
the Managing Director are also responsible for such internal control as they determine is
necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are
responsible for assessing the parent company’s and the group’s ability to continue as a going
concern, disclosing, as applicable, matters relating to going concern and using the going
concern basis of accounting. The financial statements are prepared using the going concern
basis of accounting unless there is an intention to liquidate the parent company or the group
or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as
a whole are free from material misstatement, whether due to fraud or error, and to issue an
auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with good auditing practice will
always detect a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of the financial
statements.
As part of an audit in accordance with good auditing practice, we exercise professional
judgment and maintain professional skepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial statements, whether
due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
- Obtain an understanding of internal control relevant to the audit in order to design
audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the parent company’s or the group’s internal
control.
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- Evaluate the appropriateness of accounting policies used and the reasonableness of
accounting estimates and related disclosures made by management.
- Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s
use of the going concern basis of accounting and based on the audit evidence obtained,
whether a material uncertainty exists related to events or conditions that may cast
significant doubt on the parent company’s or the group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on
the audit evidence obtained up to the date of our auditor’s report. However, future events
or conditions may cause the parent company or the group to cease to continue as a going
concern.
- Evaluate the overall presentation, structure and content of the financial statements,
including the disclosures, and whether the financial statements represent the underlying
transactions and events so that the financial statements give a true and fair view.
- Obtain sufficient appropriate audit evidence regarding the financial information of the
entities or business activities within the group to express an opinion on the consolidated
financial statements. We are responsible for the direction, supervision and performance of
the group audit. We remain solely responsible for our audit opinion.
- We communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit and significant audit findings, including any
significant deficiencies in internal control that we identify during our audit.
- We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and communicate with
them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
- From the matters communicated with those charged with governance, we determine those
matters that were of most significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditor’s
report unless law or regulation precludes public disclosure about the matter or when, in
extremely rare circumstances, we determine that a matter should not be communicated in
our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting in 2020, and our
appointment represents a total period of uninterrupted engagement of 4 years.
PHM Group Holding Oyj has been a public interest entity since 9.6.2022.
Other Information
The Board of Directors and the Managing Director are responsible for the other information.
The other information comprises the report of the Board of Directors and the information
included in the Annual Report, but does not include the financial statements and our auditor’s
report thereon. We have obtained the report of the Board of Directors prior to the date of this
auditor’s report, and the Annual Report is expected to be made available to us after that date.
Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information identified above and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit,
or otherwise appears to be materially misstated. With respect to the report of the Board of
Directors, our responsibility also includes considering whether the report of the Board of
Directors has been prepared in accordance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Directors is consistent with the
information in the financial statements and the report of the Board of Directors has been
prepared in accordance with the applicable laws and regulations.
If, based on the work we have performed on the other information that we obtained prior to
the date of this auditor’s report, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Helsinki, 23 April 2024
KPMG OY AB
TURO KOILA
Authorised Public Accountant, KHT
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Independent Auditor’s Reasonable Assurance Report
on PHM Group Holding Oyj’s ESEF Financial Statements
To the Board of Directors of PHM Group Holding Oyj
We have undertaken a reasonable assurance engagement in respect of whether the
consolidated financial statements for the year ended 31 December, 2023 included in the digital
financial statements 7437002P82P6OBDFWT48-2023-12-31-en.zip of PHM Group Holding Oyj
(Business ID 3123811-8) have been marked up with iXBRL markups in accordance with the
requirements of Article 4 of EU Delegated Regulation 2018/815 (ESEF RTS).
The Responsibility of the Board of Directors and Managing Director
The Board of Directors and Managing Director are responsible for preparing the report of the
Board of Directors and financial statements (ESEF financial statements) that comply with the
requirements of ESEF RTS. This responsibility includes:
- preparation of ESEF financial statements in XHTML format in accordance with Article 3 of the
ESEF RTS
- marking up the primary statements and the notes to the consolidated financial statements,
and the company identification data included in the ESEF financial statements with iXBRL tags
in accordance with Article 4 of the ESEF RTS; and
- ensuring consistency between ESEF financial statements and audited financial statements.
The Board of Directors and the Managing Director are also responsible for such internal control
as they deem necessary to prepare the ESEF financial statements in accordance with the
requirements of the ESEF RTS.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical requirements applicable
in Finland, which apply to the engagement we have performed, and we have fulfilled our other
ethical responsibilities in accordance with these requirements.
The auditor applies International Standard on Quality Management ISQM 1, which requires
the firm to design, implement and operate a system of quality management including policies
or procedures regarding compliance with ethical requirements, professional standards and
applicable legal and regulations requirements.
Auditor’s Responsibility
In accordance with the Engagement Letter our responsibility is to express an opinion on
whether the marking up of the consolidated financial statements included in the ESEF financial
statements comply in all material respects with the Article 4 of the ESEF RTS. We conducted
our reasonable assurance engagement in accordance with International Standard on Assurance
Engagements 3000.
The engagement involves procedures to obtain evidence whether;
- the primary statements of the consolidated financial statements included in the ESEF financial
statements are, in all material respects, marked up with iXBRL tags in accordance with Article
4 of the ESEF RTS, and;
- whether the notes to the consolidated financial statements and the company identification
data included in the ESEF financial statements data, have been marked up, in all material
respects, with iXBRL tags in accordance with Article 4 of the ESEF RTS; and
- whether the ESEF financial statements and the audited financial statements are consistent
with each other.
The nature, timing and the extent of procedures selected depend on practitioner’s judgement.
This includes the assessment of the risks of material departures from the requirements set out
in the ESEF RTS, whether due to fraud or error.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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Opinion
In our opinion, the primary statements of the consolidated financial statements, the notes to
the consolidated financial statements and the company identification data included in the ESEF
financial statements of PHM Group Holding Oyj identified as 7437002P82P6OBDFWT48-2023-
12-31-en.zip for the year ended 31 December, 2023 are, in all material respects, marked up in
compliance with the ESEF Regulatory Technical Standard.
Our audit opinion on the audit of the consolidated financial statements of PHM Group Holding
Oyj for the year ended 31 December, 2023 is set out in our Auditor’s Report dated 23 April,
2023. In this report, we do not express any audit opinion or other assurance conclusion on the
consolidated financial statements.
Helsinki 23 April, 2024
KPMG OY AB
Turo Koila
Authorised Public Accountant, KHT
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PHM Group Holding Oyj
Takomotie 1–3
00380 Helsinki, Finland
www.phmgroup.com
info@phmgroup.com