HEALING
WITH HEAT
2025
HARVIA PLC
ANNUAL REPORT
CONTENTS
In 75 years, Harvia has evolved from a Finnish heater
workshop in 1950s into the global sauna market leader.
Following the 1980s entry into electric heaters, 1990s
export expansion, and a strategic shift to full sauna
solutions in the 2000s, Harvia now has a comprehensive
portfolio encompassing all sauna types, serving consumers
and professionals alike. This transformation has been
driven by both organic growth and targeted acquisitions.
Capitalizing on the global wellness megatrend, Harvia
continues to drive industry consolidation and deliver
greatsauna experiences in nearly 100 countries.
HARVIA IN BRIEF 3
KEY FIGURES 4
Q&A WITH CEO MATIAS JÄRNEFELT 5
STRATEGY 7
BUSINESS OPERATIONS IN 2025 13
SUSTAINABILITY IN 2025 18
HARVIA AS AN INVESTMENT 23
CORPORATE GOVERNANCE STATEMENT 2025 25
REMUNERATION REPORT 2025 41
BOARD OF DIRECTORS’ REPORT AND
FINANCIAL STATEMENTS 2025 52
2Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia is the global leader in the sauna market
in terms of revenue and reach. With deep roots
in Finland dating back to 1950, the company has
evolved into a worldwide sauna solutions company,
leveraging decades of expertise to serve the diverse
sauna traditions and wellness needs of nearly 100
countries. Today, Harvia oers a comprehensive
ecosystem of products for all sauna types, from
heaters and their components to full-scale
sauna solutions.
Harvia’s growth strategy, which combines organic
expansion with targeted acquisitions, has delivered
solid financial results. In 2025, the company reported
revenue of EUR 198.9 million and an adjusted
operating profit of EUR 39.1 million, reflecting a
robust margin of 19.6%.
Delivering great sauna experiences across the world
HARVIA IN BRIEF
With estimated over 5% share of the entire global
sauna market and its clearly over 20% share of
the heater and component market in 2025, Harvia
continues to bring wellness to life through a variety
of hot and cold experiences. The company features
two global master brands, Harvia and EOS, alongside
three specialized regional brands: Almost Heaven
Saunas, ThermaSol, and Kirami. With their wide range
of products, Harvia oers customized solutions for
consumers and professionals alike.
Harvia employs over 700 professionals across Europe,
North America, and Asia. Roughly one-third of the
workforce is based in Muurame, Central Finland, home
to the company’s global headquarters and largest
production facility.
The company’s shares are listed on the ocial list of
Nasdaq Helsinki (trading code HARVIA).
REVENUE IN 2025
198.9M€
PERSONNEL IN 2025
735
Global main brands
Regional brands
3Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
REVENUE, EUR MILLION
0
50
100
150
200
2021
2022
2023
2025
179.1
172.4
150.5
175.2
198.9
ADJUSTED OPERATING PROFIT AND
ADJUSTED OPERATING PROFIT MARGIN
0
10
20
30
40
50
2021
2022
2023
2025
47.3
36.5
33.7
37.1
39.1
Adjusted operating profit*, EUR million
0
10
20
30
40
50
26.4
21.1
22.4
21.2
19.6
Adjusted operating profit margin, %
* Adjusted by items aecting comparability
NET DEBT AND LEVERAGE
0
10
20
30
40
50
60
2021
2022
2023
2025
43.8
54.5
37.6
57.2
57.7
Net debt, EUR million
0
0.3
0.6
0.9
1.2
1.5
1.8
0.8
1.3
0.9
1.3
1.2
Leverage
EARNINGS PER SHARE AND
DIVIDEND PER SHARE, EUR
0.0
0.5
1.0
1.5
2.0
2021
2022
2023
2025
1.80
1.45
1.25
1.30
1.41
0.60
0.64
0.68
0.75
0.77
*
Earnings per share, EUR
Dividend per share, EUR
* Dividend per share for 2025 is the dividend proposal of Harvia’s
Board of Directors to the 2026 Annual General Meeting.
Strong growth and profitability in 2025
KEY FIGURES
198.9
REVENUE, EUR MILLION
39.1
ADJUSTED OPERATING PROFIT, EUR MILLION
19.6%
ADJUSTED OPERATING PROFIT MARGIN
26.5
OPERATING FREE CASH FLOW, EUR MILLION
48.3%
EQUITY RATIO
4Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Q&A with CEO Matias Järnefelt
HOW DO YOU SUMMARIZE HARVIA’S
PERFORMANCE IN 2025?
2025 was a good year for both the sauna market
and Harvia. Despite general economic uncertainty,
currency headwinds and trade policy uncertainty, the
demand in the sauna market remained firm, which is
a strong signal of resilience and interest in wellbeing
through sauna. A big thank you goes to the entire
Team Harvia and our partners for their eorts and
dedication in 2025.
We had a strong start to the year with record-high
sales and strong profitability and cash flow in the
first quarter. The growth continued at a lower level in
Q2 due to a temporary slow-down in North America,
reflecting increased market uncertainty and delivery
timing eects. The revenue growth accelerated in the
third quarter, and we saw double-digit growth across
all regions. In Q4, growth in all sales regions continued
despite a very strong comparison period.
In summary, Harvia proved throughout the
year its ability to deliver solid financial results,
exemplified by a 13.5% revenue growth to EUR
198.9 million. It is notable that our growth is
increasingly global, with revenue outside Europe
already at 49% in 2025. Adjusted operating
profit reached EUR 39.1 million, making up 19.6%
of the revenue. Leverage was 1.2 – well below
Harvia’s long-term financial target of under 2.5,
as in the previous year. For our shareholders,
the Board of Directors has proposed a dividend
of EUR 0.77 per share, corresponding to a
54.6% payout of the Group’s earnings per share
for 2025.
In 2026, we remain fully
focused on capturing the market
demand in all sales regions while
ensuring healthy profitability
also in the short term. At the
same time, we continue to invest
and drive Harvia’s long-term
success.”
”
5Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
HOW WAS HARVIA’S STRATEGY IMPLEMENTED
DURING THE YEAR?
We have defined Harvia’s strategic role as “Shaping
the global sauna market so that everyone has a reason
to experience sauna”. In 2025 we took significant
steps forward in implementing Harvia’s strategy:
to shape, grow and lead the global sauna market
through exciting innovations, commercial excellence,
winning in key countries, and strengthening the
operational foundation for growth and eciency.
During the year, we strengthened our product and
portfolio leadership with several innovations. The new
MyHarvia smart sauna app and technology platform
enhanced our digital leadership, while theworld’s
first o-the-grid electric sauna including a solar
panel and the hydrogen-powered sauna showcased
Harvia’s industry-leading energy saving solutions. We
continued pursuing growth instrategically important
markets in North America and the APAC &MEA
region and made growth-fueling investments
in common IT infrastructure and our facilities,
supportingbest-in-class operational eciency.
IN YOUR OPINION, WHAT WAS THE HIGHLIGHT
OFHARVIA’S YEAR 2025?
The year 2025 marked Harvia’s 75th anniversary.
Duringthese years, we have built our unique
expertise and the company’s globally leading
position in the sauna market. I was pleased and
proud to celebrate Harvia at various events together
with Harvia employees, our customers, and our
otherclose stakeholders.
WHAT ARE HARVIA’S FOCUS AREAS IN 2026?
We see that the solid market drivers continue to
support the growth of the sauna industry, and Harvia
intends to continue as a strong leader in this market.
We have a global manufacturing footprint, leading
innovations, powerful brands, and expertise and
passion to drive continued success.
In 2026, we continue the systematic execution of our
strategy in the areas of product leadership, winning
thekey markets, developing most inspiring brands
of the industry and developing our operational
excellence. If the right opportunity emerges, we are
prepared toact swiftly also on the M&A front. Year
2026 is full ofpossibilities for Harvia.
6Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
STRATEGY
In 2025, Harvia took significant steps forward in implementing its strategy.
The company aims to lead and shape the global sauna market throughexciting
innovations, winning in key countries and channels, and strengthening
theoperationalfoundation for growth and eciency.
7Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Industry trends shaping the market
Sauna provides significant
health and wellness benefits,
which people are willing
to invest in. Regular sauna
bathing several times a
week has been scientifically
proven to reduce the risk
of cardiovascular disease,
stroke, and dementia, while
improving sleep and skin
health. In line with its Healing
with heat philosophy, Harvia is
developing sauna experiences
that have targeted wellness
benefits. Read more
Consumers globally are
willing to spend more on
experiences that enrich their
lives. Harvia aims to ensure
pleasant, relaxing, and easy
to access sauna experiences
for everyone and inspire
people through exciting sauna
innovations. Read more
Sauna culture is gaining
significant momentum in
the U.S. and Asian markets.
Driven by social media and
public wellness trends, the
total addressable market
is continuously expanding.
Through its portfolio of
market-leading brands and
digital presence, Harvia is
positioned to educate new
demographics, capture this
rising global demand, and lead
the increasing conversation
around sauna bathing.
Read more
Sauna and thermal wellness
have significant innovation
potential. The integration
of saunas into smart homes
opens new revenue streams
and value propositions.
Harvia is digitalizing the
sauna experience through
advanced IoT solutions that
oer remote control, in-
sauna entertainment, and
personalized experiences.
Digital innovations also drive
energy eciency. Read more
As demand for responsible and
safe sauna solutions increases,
sustainability becomes a
competitive advantage.
Harvia leverages its market
leadership and engineering
expertise to set the industry
standard for environmental
and social responsibility. By
commercializing energy-
ecient, durable, and safe
to use solutions, Harvia aims
to meet evolving regulatory
standards and drive the
industry’s sustainability
agenda. Read more
The global sauna market
remains highly fragmented,
oering consolidation
opportunities. As the industry
matures and large players
enter the market, the pace
of development accelerates.
Taking an active consolidator
role in the industry through
M&A is a strategic focus area
for Harvia. Read more
Harvia has identified six key drivers that impact the sauna industry. These trends
were clearly visible in 2025 and are expected to drive market demand and oer
strategic growth opportunities for Harvia also in the coming years.
Wellness
andhealth
Experience
economy
Growing
awareness
Technology Sustainability Market
consolidation
8Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia is the leading player in the global sauna
market, which is estimated at close to 4 billion euros
in value. The company defines its strategic role as
“Shaping the global sauna market so that everyone
has a reason to experience sauna”. This means that
Harvia wants to be an active market maker and
create exciting innovations and more sustainable
solutions for all markets, sauna cultures and sauna
types. In line with its financial targets, Harvia seeks
profitable growth in both the short and long term
byfocusing on the following areas:
• Delivering the full sauna experience
• Winning in strategically important markets
• Leading in key channels
• Best-in-class operations and great people.
In the volatile market environment of 2025,
Harvia’s strategy execution focused especially
on activities enabling sustainable long-term
growth, while ensuring operational eciency and
profitability in theshort term. These included
significant investments in developing market-leading
innovations, strengthening the company’s multi-
channel sales capabilities, and modernizing the
ITlandscape.
Strengthening the foundations for long-term success
Financial targets
In 2025, we proved that Harvia
can grow with solid profitability
through uncertainty while building
the capabilities required for the
next phase of global expansion.”
– CEO Matias Järnefelt
”
In 2026, Harvia will continue the systematic
execution of its strategy. The main priority is to
continue the company’s long-term growth and
success and strengthen its position as the global
leader of the sauna industry. In addition to organic
growth, Harvia will continue to seek opportunities
also on the M&A front.
Harvia has set long-term financial targets
related to growth, profitability, and leverage.
The company targets
• an average annual revenue growth of 10%
• an adjusted operating profit margin
exceeding 20%
• a net debt/adjusted EBITDA below 2.5x.
Harvia does not publish short-term
financial targets.
Harvia reached two of its three long-term
financial targets in 2025. The company’s
revenue increased by 13.5% from 2024,
while the adjusted operating profit margin
was 19.6%. What is noteworthy is that at
comparable exchange rates, the revenue
increased by 16.0% and the adjusted operating
profit margin reached 20.2%. Net debt to
adjusted EBITDA ratio was 1.2. Read more
9Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Executing strategic focus areas in 2025
Harvia seeks to make sauna a broader experience, oering a
complete portfolio of all sauna types, cold plunges, hot tubs,
and other sauna related extensions, and constantly bringing new,
exciting innovations to the market. In addition to leading the market
in traditional sauna, Harvia also aims to make steam and infrared
saunas a more sizeable part of Harvia’s business, both organically
and through M&A.
In 2025, the steam product category grew due to the acquisition of
steam solutions manufacturer ThermaSol in 2024 and represented
8.7% of the total revenue. Harvia also delivered several new
innovations to the market, showcasing digital leadership and
pioneering energy solutions, such as solar- and hydrogen-powered
saunas, as well as smart sauna platforms and apps. Read more
about Harvia’s innovations on page 11.
Harvia pursues growth in strategically important markets
outside Europe in North America and the APAC & MEA
region. In Europe, the company focuses on further
strengthening its position and capturing growth.
In 2025, major IT infrastructure upgrades were
implemented in North America to support growth
through improved transparency and process automation,
as well as enhanced inventory management. In addition,
the expansion of the Lewisburg factory in West Virginia
began. In APAC & MEA, Harvia continued to make strong
progress, for example, in China, Japan, and Middle East.
The results of these eorts were visible in the regions’
double-digit revenue growth in 2025: 22.1% in North
America and 25.4% in APAC & MEA. Read more about
Harvia’s business in its sales regions on page 16.
Harvia aims to develop its channel strategy and the
Group-level sales and customer service capabilities
to drive synergies and cross-sell opportunities.
The direct-to-consumer channel has been a
significant part of Harvia’s success in North
America, and its development continued in 2025.
D2C channel development was started also in
Germany and Austria, with roll-out in early 2026.
In addition, the Continental European commercial
team was reorganized to streamline go-to-market
eorts. The Group-level marketing approach was
further sharpened to support brand leadership
andto drive demand.
Leading
in key channels
Winning in strategically
important markets
Delivering the full
sauna experience
Harvia seeks to continuously improve productivity to ensure profitability as well
as to deepen integration within Harvia Group to drive productivity and growth.
Operational eciency is driven by scaling up and automating operations while
expanding capacity in the strongly growing regions, such as North America.
In 2025, Harvia continued to invest significantly in its production facilities and
common IT landscape. A production layout change was implemented at the
Muurame factory, and the expansion of the production facility in Lewisburg, West
Virginia, began. A new state-of-the art coating system was installed in Germany.
During the year, ThermaSol’s full integration as a core part of Harvia’s North
American business and team was successfully completed. Group-level purchases
and streamlined processes, alongside the new IT infrastructure, are already
delivering significant synergies. Continued investments in supporting employee
development and well-being also yielded positive results, as Harvia’s eNPS
score in the 2025 employee satisfaction survey rose significantly, from 10 to 19.
Readmore about Harvia’s operations in 2025 on page 13.
Best-in-class
operations &
great people
10Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia’s innovation pipeline delivered excellent results
in 2025, showcasing the company’s market-leading
sauna innovations in terms of digital leadership and
energy eciency.
FENIX CONTROL PANEL AND MYHARVIA MOBILE
APPLICATION CONNECTED TO A NEW IoT
CLOUD SERVICE
Key Harvia product launches for the year included
Harvia’s Fenix control panel and MyHarvia mobile
app, which complements the control panel with
remote operation capabilities, usage statistics, and
maintenance notifications. The Fenix control panel,
Innovations support future growth
designed for both private consumers and commercial
users, analyzes the heater’s performance and uses
that data to optimize heating times. The panel and the
app feature the same user-friendly interface design
and are seamlessly integrated with Harvia’s new IoT
cloud service.
The new IoT cloud generates data which will be
harnessed to continuously improve Harvia’s products
and services. The data enables deep understanding
on how users interact with Harvia’s saunas, allowing
us to design solutions optimized for performance and
user satisfaction. Harvia is also building capabilities
for dealers and partners to monitor their installed
base, facilitating proactive maintenance and ensuring
optimal performance of Harvia products worldwide.
This approach enhances customer loyalty and
product longevity. Looking ahead, Harvia envisions
opportunities to develop services that can link sauna
usage data with other wellness metrics, such as sleep
data, to oer personalized recommendations for
enhanced well-being.
U-COMMAND CONTROL UNIT FROM EOS
Key EOS product launch was the U-Command control
unit, comprising a new control panel and power unit,
which also connects to Harvia’s advanced IoT cloud.
11Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Furthermore, the Spa Control application for EOS
has been updated and migrated to the new platform
to ensure that existing customers benefit from the
enhanced functionality and connectivity features.
MYHARVIA SMART SAUNA SENSOR:
A STEP IN SMART SAUNA TECHNOLOGY
Additionally, MyHarvia Smart Sauna Sensor represents
a significant step in smart sauna technology, oering
new possibilities for personalized sauna experiences.
It turns any sauna into a smart sauna – even wood-
heated ones. It measures temperature, humidity, and
usage continuously, and in woodburning saunas,
even tracks the need to add a batch of firewood. In
addition, it tells the user when sauna is ready, helping
to optimize energy usage. Long-term analytics reveal
usage patterns, optimize energy eciency, and
maintain consistent comfort. These digital innovations
reflect Harvia Group’s ongoing commitment to a
digitally advanced and user-centric product ecosystem.
INNOVATIONS FOR SUSTAINABLE
SAUNA EXPERIENCES
Harvia also advanced sustainable sauna innovations
during the year. The company’s collaboration with
Toyota Motor Corporation yielded the innovative
hydrogen sauna project, which has shown promising
results related to clean energy and minimal
environmental impact. By applying hydrogen to sauna
heaters, the system generates only steam and warm
air, emitting no CO
2
during use. In addition, Harvia
introduced the first solar-powered sauna in theUnited
States, which operates completely o-grid. TIME
Magazine named ThermaSol Solaris as one of thebest
inventions of 2025.
12Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
In 2025, Harvia continued to drive profitable
growth by strengthening the foundations of its
global operations. While the macroeconomic
landscape stabilized in terms of material availability
and inflation, the geopolitical uncertainty and
volatility in U.S. tari policies created a level
of unpredictability in the market, highlighting
the need to adapt to rapid changes in the cost
structure. Consequently, Harvia developed its
tools and processes for pricing management and
supply chain agility and optimization, including
increasing the readiness to move some production
between China and Finland. The company’s global
manufacturing and operations network is helping
it to navigate the volatile tari environment. The
majority of Harvia’s revenue in the United States
comes from products manufactured within the
country, which also partly shields the company
from tari impacts.
As in the previous year, market dynamics varied
significantly between regions in 2025. In North
America and APAC & MEA, awareness of sauna and
its health benefits continued to grow and market
demand developed favorably. In Europe, the overall
macroeconomic environment slowly improved.
Building resilience and efficiency
through operational excellence
BUSINESS OPERATIONS
13Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
REVENUE BY SALES REGION
Northern Europe
Continental Europe
North America
APAC & MEA
23.4% (25,0%)
28.0% (30.1%)
38.1% (35.4
%
)
10.5% (9.5
%
)
198.9
MEUR
REVENUE BY PRODUCT GROUP
Heating equipment*
Saunas and Scandinavian hot tubs
Steam products**
Accessories and heater stones
Spare parts and services
* Sauna heaters,
control units,
IR components
** Including steam
generators and other
steam equipment
54.3% (53.6%)
23.9% (26.7%)
8.7% (6.1%)
6.6% (6.7%)
6.6% (6.9%)
198.9
MEUR
InContinental Europe, market conditions strengthened
in many countries, while in Northern Europe, there
were positive signs of slowly improving market
sentiment especially towards the end of the year.
Read more about Harvia’s operating environment.
THE POWER OF BEST-IN-CLASS OPERATIONS
One of Harvia’s strategic focus areas is to continuously
improve productivity. In 2025, Harvia made tangible
progress in increasing its cross-unit collaboration and
harmonizing its processes globally. This transformation
was powered by significant developments in Harvia’s
IT infrastructure. Modernized IT systems were rolled
out especially in the U.S. operations during the year,
already delivering results in the form of improved
demand and capacity forecasting, proactive inventory
management, and a more ecient and transparent
production environment. Currently, Harvia is focused
on further enhancing eciency across its operations
in the United States by building shared operational
resources for functions such as HR and finance.
To support continued double-digit growth and drive
operational excellence, Harvia also made several
strategic investments in its facilities in 2025. In United
States, the expansion of the Lewisburg factory in
West Virginia was initiated. Harvia also opened a
second logistics center near the factory to improve
delivery capacity. In Germany, a new state-of-the
art coating system was installed at the EOS factory
in Driedorf to support production capacity. This
was complemented by a new hybrid thermal power
plant, which became operational in late 2025 and
significantly reduces the factory’s energy footprint.
At the headquarters in Muurame, Finland, the R&D
department was relocated to expand logistics and
production operations. At its stone factory in Luvia,
Harvia completed a comprehensive modernization
of the production lines, equipping them with new
control systems and electricals to enhance output
and reliability.
In 2026, Harvia will focus on optimizing productivity
and driving operational excellence by continuing
the unification of the Group IT infrastructure
across the European operations, which will help
in further harmonizing processes on Group level.
Competencies will also be strengthened, for
example, in digital solutions.
14Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
NORTH AMERICA
Revenue EUR 75.8 million (+22.1%)
158 employees
Production facilities in West Virginia
and Texas
NORTHERN EUROPE
Revenue EUR 46.6 million (+6.4%)
262 employees
Three production facilities and headquarters
inFinland
CONTINENTAL EUROPE
Revenue EUR 55.6 million (+5.5%)
258 employees
Production facilities in Germany, Italy
and Romania
APAC & MEA
Revenue EUR 21.0 million (+25.4%)
57 employees
One production facility in China
We embrace local sauna cultures in nearly
100 countries
The revenue figures are for 2025 and the number
of personnel for the year-end 2025.
Production facilities and Muurame headquarters
Other Harvia locations
15Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
NORTHERN EUROPE
Traditional saunas make up almost
theentire market in Northern Europe,
the key region for Harvia’s wood-
burning heaters. Harvia’s home
market, Finland has the highest
number ofsaunas per capita in
the world, overone sauna per
two persons.
There were some positive signs of slowly
improving market sentiment, even if the
macroeconomic challenges – including
weak consumer confidence and challenges
in the construction sector – remained
largely unchanged. To drive growth,
Harvia strengthened channel access in
Scandinavia. Sales performance in Northern
Europe improved especially during the
second half of the year and in Finland,
andthe region returned to 6.4% growth
in2025 after two years of sales decline.
CONTINENTAL
EUROPE
While an established sauna market,
Continental Europe has a larger
professional and full solutions
market and higher price points than
Northern Europe. The region also
has a sizeable infrared and steam
sauna market.
The sauna market continued to be
rather stable throughout the year in
Continental Europe. The gradually
improving market conditions supported
solid sales in most of Harvia’s key
markets, including Germany, France,
and the United Kingdom. Revenue
growth in 2025 was on the previous
year’s level at 5.5%.
Harvia’s growth eorts during the year
were supported, among other activities,
Growth in all sales regions in 2025
Harvia has four sales regions: Northern Europe, Continental Europe, North America, and APAC & MEA.
by the development of a Direct-to-
Consumer online channel in
Germany and Austria, with roll-out
in early 2026, and the appointment
of new Head of Region and the
member of the Management Group,
Ivan Sabato, from April 2025.
16Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
NORTH AMERICA
With an installed base of just
over 1million saunas, the sauna
penetration in North America is still
low when compared to many mature
sauna markets. Infrared saunas are
the most popular sauna type in
North America, but also traditional
saunas and steam saunas have a
growing presence in the region.
APAC & MEA
The region Asia-Pacific, Middle East
and Africa comprises several distinct
sauna markets, each with its own
characteristics and sauna cultures.
Allsauna types are present in the
region, but in 2025 the demand
wasfocused especially on more
high-end products and commercial
sauna solutions.
There were no significant changes
in market development in APAC &
MEA during the year, and most of
the markets continued on a growth
path with increasing awareness of
sauna andits health benefits. With
25.4% revenue growth year-on-year,
APAC & MEA was Harvia’s fastest
growing region in 2025 driven by
positive development in several key
markets, such as Japan and China.
Going forward, the region continues
Sauna market demand continued to
increase in the region in 2025. Despite
volatility related to trade policies and
the weak U.S. dollar, the positive long-
term fundamentals of the high-potential
market – including growing awareness
of sauna and its health benefits –
continued to support demand. The
sales performance was particularly
good in large campaigns, like Black
Friday in November. North America
achieved 22.1% sales growth in 2025.
Harvia made significant investments
in North America during the year,
including IT infrastructure upgrades
and the expansion of the Lewisburg
factory. Nathan Hagemeier was
appointed as Head of Region,
North America and President of
Harvia US Inc. in October to drive
the sustainable growth of Harvia’s
business in the region.
to be one of the company’s strategically
most important areas and long-term
growth engines.
17Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Sustainability initiatives deliver results
#1 FOR GOOD & HEALTHY LIVING
Harvia remains dedicated to promoting a good and
healthy life by positively impacting people’s health
and longevity through its oerings. In 2025, our eorts
continued to focus on advancing innovative solutions,
conducting scientific research, and ensuring an optimal
and informed customer experience. We actively share
science-backed information on the health benefits of
heat and promote the healthy regimen of using sauna
3 times per week for at least 15 minutes.
Harvia continued to strengthen the scientific
foundation of sauna’s health benefits through
research initiatives. In 2025, we continued our in-
depth research, including a collaboration with Toyota
Motor Corporation and Finnish Institute of High
Performance Sport KIHU to study sauna experiences,
covering four sauna types: hydrogen, electric, wood,
and gas saunas. This extensive study, involving 69
participants, measured 11 dierent biomarkers and
provided a rich dataset which complements earlier
research conducted in previous decades. What sets
this research apart is the unprecedented precision
in measuring the sauna environments themselves.
Each of the four sauna types was instrumented with
26 sensors, capturing an array of environmental
conditions. This data, combined with the
comprehensive human biomarker insights, represents
the study’s most valuable contribution, promising
years of profound analysis and groundbreaking
discoveries. While the full results are pending
publication, this study underscores Harvia’s dedication
to validating traditional wisdom with modern science.
In line with our commitment to promoting sauna’s
health advantages, we actively communicated its
benefits through various channels. Social media
platforms were utilized to share science-backed
insights into sauna use. Harvia launched cooperation
with Dr. Emilia Vuorisalmi who provides content about
sauna’s health benefits first to audiences in the United
States. Read more about the cooperation.
A core focus for Harvia’s Almost Heaven Saunas D2C
brand throughout the year was helping consumers
to find the right solution for their individual needs
and supporting them in getting the most out of it.
We introduced an easy-to-use sauna quiz to guide
customers toward suitable options and presented
our oering in a more needs-based way. Through
influencer collaborations, we also shared user stories
and practical tips on how to use our solutions and
benefit from them in everyday life, with a strong
emphasis on wellbeing and positive experiences.
#2 FOR SUSTAINABLE EXPERIENCES & ENJOYMENT
Commitment to fostering sustainable experiences and
enjoyment continued to drive Harvia’s research and
development eorts. In 2025, we advanced our digital
capabilities and deepened our understanding of the
sauna experience to optimize energy consumption,
enhance user well-being, and strengthen our
product oering.
Building on the strategy to connect and optimize
our products, we have developed our own IoT device
cloud. The platform is designed to serve Harvia’s
Harvia reports on its sustainable development actions in accordance with the sustainability
program that concluded in 2025. During the year, significant progress was made, particularly
in research and product development, as well as in energy-ecient solutions. Furthermore,
the company prepared a sustainability program for the years 2026–2030.
18Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
diverse brand portfolio and enable smarter sauna
solutions. It ensures better device management and
seamless connectivity for the current and future
products. Currently, Harvia’s Fenix control panel,
MyHarvia mobile app, and EOS’s U-Command control
unit, all launched in 2025, are integrated into the new
IoT cloud.
In addition, we launched MyHarvia Smart Sauna
Sensor, which turns any sauna into a smart sauna. It
gathers user data and reveals user patterns, thus helps
to optimize energy eciency. MyHarvia Smart Sauna
can be used also in wood-heated saunas.
Collaboration with Toyota Motor Corporation yielded
the innovative hydrogen sauna project, which has
shown promising results related to clean energy and
minimal environmental impact. By applying hydrogen
to sauna heaters, the system generates only steam and
warm air, emitting no CO
2
during use.
We also conducted our own research and studied the
optimal temperature and humidity of sauna to gain
the strongest physiological reaction. The results show
that ‘löyly’ is a key factor for good sauna experience,
maybe even more than sauna temperature. This
research guides Harvia in developing products and
sauna usage recommendations that maximize health
benefits with minimal energy consumption.
Through these eorts in digital innovation and
scientific research, Harvia is not only setting new
industry standards but also creating experiences for
the global community of sauna enthusiasts that are
more sustainable, enjoyable, and beneficial for health.
#3 FOR MINIMIZING ENVIRONMENTAL
FOOTPRINT
Harvia is dedicated to minimizing its environmental
footprint and contributing to global eorts
against climate change. Our systematic approach
encompasses energy eciency, the integration of
renewable energy, optimized logistics, and circular
economy principles.
In 2025, we took significant steps in enhancing
energy eciency and expanding the use of
renewable energy. In Germany, a new hybrid power
plant was installed. Its phased commissioning
began in late 2025, and the plant will reach its full
operational capacity in early 2026. Another major
project was the comprehensive modernization of a
paint shop line in our German factory, resulting in
substantially improved energy eciency and the
transition from oil to emission-free energy source.
Embracing circular economy principles, the old paint
shop line from the Lewisburg factory in the U.S. will
be relocated to our factory in Romania. This move
helps to extend the life span of existing assets and
meets the specific capacity needs of our Romanian
operations eciently and sustainably.
We are actively pursuing economically viable
renewable energy projects globally. An investment
decision has been made for a solar power plant
in China, with commissioning planned for 2026.
Eorts are also ongoing to establish a solar power
plant in the U.S., and suitable suppliers are currently
being evaluated.
In Finland, the production lines at our stone factory
underwent a modernization, including a complete
overhaul of electrical systems. To support sustainable
mobility, a substantial number of electric vehicle
(EV) charging stations were installed at our Muurame
factory. We aim to extend this initiative to the other
Finnish units and explore its feasibility for our global
operations.
Our Group-level online energy consumption
monitoring tool, which proved instrumental in
identifying key areas for eciency improvements, was
successfully phased out in 2025 after achieving its
initial objectives. Monitoring continues at a local level
in each facility to ensure ecient energy management
and optimization.
We continue to explore more sustainable
transportation solutions for our logistics operations.
While electric vehicles are well-suited for last-mile
deliveries, our high-volume, long-distance transport
largely depends on diesel trucks due to current
limitations in available power sources. We are
closely monitoring the development of hydrogen-
powered trucks, which we believe hold promising
potential for future large-scale transportation on
specific routes, particularly as the hydrogen fueling
infrastructure expands.
Harvia’s Group-level Scope 1 CO₂ emissions in 2025
were 850 tCO₂ (1,023) and Scope 2 market-based
emissions 1,535 tCO₂ (1,404). Total market-based
emissions decreased by 2% compared to 2024 despite
growth in both business operations and production
19Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
volumes. More detailed scope 1 & 2 emissionsdata
canbe found in Harvia’s CSRD report.
Harvia’s solar panels at the Muurame factory produced
129 MWh (125) of electric energy in 2025.
Scope 3 emissions were in 2025 265,000 tCO₂e
(210,000). Over 80% of the scope 3 emissions are
from the use of the products and the increase in sales
was reflected in the calculated emission. Product-use
emissions are based on estimated usage and expected
product durability: the longer the product lifecycle,
the higher the emissions generated over time. 12%
of scope 3 emissions are from purchased goods and
services, and 4% from transportation and distribution.
Harvia actively seeks to reduce emissions through
its own initiatives and innovations as well as in
cooperation with suppliers and service providers as
stated in the company’s climate transition program.
#4 FOR SAFE AND WARM COMMUNITY
Our commitment for safe and warm community
focuses on ensuring the safety, equality and
continuous competence development of our people.
Robust corporate governance and adherence to
ethical business standards are crucial for earning the
confidence of various stakeholders.
Occupational safety is always a top priority.
Although there was an increase in minor incidents
in 2025 compared to previous years, there were
no serious occupational accidents. During the
past year, we achieved a significant milestone
with all our units globally consistently reporting
near-misses and accidents for the first time. These
reports are reviewed by local safety committees and
unit leaders, ensuring that corrective actions are
promptly implemented. This structured approach
is fostering a proactive safety culture throughout
the organization.
Employee well-being and engagement are
cornerstones of the Harvia community. The 2025
Employee Survey yielded positive results, with
the eNPS score rising significantly from 10 to 19.
The response rate also saw a substantial increase
from 56% to 75%, ensuring a highly representative
reflection of employee sentiment. The results show
a positive development on employee perception of
the company’s future and communication of strategy
along with employee recognition and value.
Competence development is implemented through
various programs. The adoption of a new digital
training platform has facilitated group-wide training in
IT security, covering topics like phishing and identity
theft, and enabled the rollout of an updated Code of
Conduct training for white-collar employees. Group-
wide anti-bribery training was also provided for the
management group, and sales, finance and purchasing
teams. Furthermore, AI training was introduced for all
white-collar sta to enhance their understanding and
safe application of artificial intelligence.
We piloted an employee exchange program between
our Finnish and German operations, allowing four
production and logistics employees to gain valuable
international experience, share best practices, and
foster cross-cultural understanding. The feedback
was positive, and the program will be further
conceptualized during 2026.
As part of our community eorts in Finland, we
hosted numerous student groups and continued
our partnership with a local high school in 2025. In
addition, we oered various trainee and summer job
opportunities, equipping young people with essential
work-life skills.
Harvia carried out a customer satisfaction survey
with approximately 4,000 reseller customers at
the end of 2025 (compared to 11,000 in 2024). The
response rate was 10% (7%). While the results varied
by brand and market, the Group-level Net Promoter
Score (NPS) remained strong and was 53 on average
(71). Across all Harvia Group brands, customers
particularly valued product quality and the extensive
product range. However, feedback from certain
markets indicated challenges in customer service and
technical support. These valuable insights guide the
Group’s ongoing eorts to understand and enhance
customer experience.
20Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia started a significant brand ambassador and
content partnership with Dr. Emilia Vuorisalmi in
late 2025. This collaboration, initially launched in
North America across the Harvia, Almost Heaven
Saunas, and ThermaSol brands, enhances Harvia’s
ambition to spread the wellness benefits of sauna
toabroader audience.
The North American wellness market is experiencing
rapid expansion, with sauna emerging as one of
the growth categories. North America is Harvia’s
largest sales region with 38.1% share of revenue in
2025 and the key market for driving growth, in line
with the company’s strategic focus areas. Through
this partnership, Harvia is well positioned to raise
awareness of authentic Finnish sauna and make
expert-led knowledge more accessible to consumers
in this high-potential market. The collaboration aims
to inspire healthier living by oering science-based
content and inspiring sauna experiences.
There is proven evidence of sauna’s benefits for
stress management and cardiovascular health, for
example. Dr. Emilia Vuorisalmi is a Finnish medical
doctor, bestselling author, and wellness expert who
can translate complex medical science into practical,
everyday habits. “Finnish sauna is a space for presence,
safety, and balance,” she explains. “Heat and quiet help
the body unwind and support recovery – while shared
moments on the bench strengthen connection.”
“Sauna has been part of everyday life in Finland for
generations – a place to restore balance, connect
withyourself and others, and feel good inside and
out,” notes Päivi Juolahti, Head of Marketing & Brands
at Harvia. “By partnering with Dr. Vuorisalmi, we are
championing a lifestyle grounded in ancient traditions
and validated by modern science.”
As part of the collaboration, Dr. Vuorisalmi will host
amultimedia content series featuring wellness voices,
athletes, and sauna users. This series will provide
science-backed guidance and simple rituals designed
to promote balance, recovery, and connection. While
the initial focus is on North America, selected content
from the program will also be made available to
audiences in Europe and beyond, further amplifying
Harvia’s message of wellbeing globally.
Partnership with Dr. Emilia Vuorisalmi reinforces
Harvia’scommitment to promote wellbeing
Image: Olga Poppius
21Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia updated its Sustainability Program for 2026–
2030, encompassing the whole Group, in November
2025. The program is aligned with Harvia’s business
strategy and Double Materiality Analysis (DMA)
and compliant with the Corporate Sustainability
Reporting Directive (CSRD). The program addresses
the most significant topics to Harvia Group: climate
change, circular economy, own workforce, workers
in the value chain, consumers and end-users, and
business conduct.
The program is guided by principles that prioritize
a strategy and business-driven approach, foster
realistic and actionable initiatives, and ensure
regulatory compliance. Harvia’s overarching
sustainability vision is to contribute to a good and
long life with minimal environmental impact, safely
and fairly. This vision is articulated through four
core commitments:
Promoting Wellbeing & Trust in every customer
experience. Harvia aims to make it eortless for
customers to enjoy the scientifically backed health
benefits of sauna by providing reliable product
information and practical guidance and support
on the safe and sustainable use of its products.
Progress in this area will be measured through
reseller satisfaction, for example.
Harvia Group’s Sustainability Program
for 2026–2030
Designing for Sustainability in every product we
create. This commitment underscores Harvia’s
dedication to develop durable, safe products that
utilize materials wisely. Harvia focuses on design
principles that enhance repairability, recyclability,
and reduce environmental impact throughout the
product lifecycle. Metrics for this commitment will
track the percentage of renewable or recycled
materials in products and the availability of spare
parts to extend the useful life of products.
Operating Responsibly across our supply chain
and operations. Harvia takes accountability for the
energy, materials, and working conditions behind
its products. This involves eorts to cut emissions,
reduce waste, and uphold fair practices across the
value chain. Key performance indicators will monitor
total greenhouse gas emissions, particularly Scope
1 and 2 reductions, and the proportion of purchases
audited to ensure supply chain integrity.
Empowering People & Fairness in everything we
do. We are committed to fostering a workplace
where every individual feels safe, respected, and
empowered. By embedding trust, fairness, and
responsible behavior into daily operations, Harvia
aims to cultivate a resilient organization ready for
future challenges. Measurements in this area will
focus on enhancing employee safety, as reflected
in the Lost Time Injury Frequency Rate (LTIFR),
and fostering a high level of employee engagement
and satisfaction.
22Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia as an investment
#2 #3
Growing global sauna market Leading global player Strong brands, comprehensive
product and service oering
and market-leading innovations
• Market potential is significant: the global
sauna market is close to 4 billion euros and
highly fragmented.
• Thanks to the increasing awareness of sauna
and its health benefits, the market is poised
for growth, estimated to exceed the historical
average of 5% for the next five years.
• The sauna market boasts resilience, especially
inthe more mature regions, thanks to consistent
replacement demand.
• Harvia’s management estimates that the company’s
market share has increased during the last few
years and surpassed 5% in 2025. The share in sauna
heaters and components is estimated to be well
over 20%.
• Harvia is the leading player in its main markets:
North America (38% of revenue in 2025), Continental
Europe (28%) and Northern Europe (23%). In
addition to North America, APAC & MEA (11%)
hasbeen one of Harvia’s fastest growing regions
in the past few years and is one of its strategically
most important growth areas going forward.
• Harvia is committed to an active industry
consolidator role through M&A.
• The capacity and global reach of Harvia’s operations
and scale advantages e.g. in production and
sourcing create a sharp competitive edge to Harvia,
honed by deep experience in the sauna business
andin the B2B and consumer products market.
• Harvia’s global master brands are Harvia and EOS,
backed with regional and tactical brands Almost
Heaven Saunas, Kirami and ThermaSol.
• Awareness and position of Harvia Group’s brands
is strong in the company’s main markets. Harvia
is one of the most often recognized international
sauna brands.
• Harvia oers a complete product portfolio for
professionals and consumers alike – all sauna
types and dierent price ranges to cater for the
full sauna experience.
• Future growth is supported by market-leading
and sustainable innovations with winning design,
unparalleled user experience and cutting-edge
digital solutions to elevate the sauna experience.
#1
Harvia oers investors the opportunity to be part of a globally growing wellness trend. Harvia’s leading
market position, strong brands, and business model create a solid foundation for the company to lead
the sauna market also in the future – demonstrating growth, strong margins, and increasing dividends.
23Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
• Harvia’s business model is very capital ecient
due to typically low investment needs as well
as ecient and flexible production processes.
• Harvia demonstrates robust operational eciency,
supported by unified processes and modern
production facilities.
• Key elements in ecient operations include
advanced sales & operations planning, global
sourcing strategy, automating operations,
as well as agile transportation network.
• Sustainability across the supply chain is one
of the key focus areas.
• Harvia serves a large and diverse customer
base in nearly 100 countries, including sauna
specialist stores, retail stores, wholesalers, sauna
integrators and sauna builders, DIY chains as well
as renovation and construction companies.
• Products are sold globally mainly via the
distributor network as well as directly to end users.
• Harvia strengthens its distributor network
continuously in both B2B and D2C channels in
order to gain a wider customer base and drive
growth in the key markets.
• The stability of the business, typically strong
cash conversion and low investment needs
together with Harvia’s performance provide
a solid foundation for healthy profits. The
company has demonstrated average annual
revenue growth of approx. 17% since the IPO
and delivered consistently strong adjusted EBIT
margin over 20%.
• Harvia’s dividend policy is to pay a regularly
increasing dividend with a bi-annual payout, and
the dividend per share has increased annually
since the IPO in 2018. The Board of Directors’
dividend proposal for 2025 is EUR 0.77 per share
in total, while earnings per share were EUR 1.41.
• Harvia’s focus is to remain focused on capturing
the market demand in all sales regions while
ensuring healthy profitability, also in the
short term.
#4 #5 #6
Ecient business model Long-standing customer
relationships and diverse
distribution channels
Strong profitability and cash flow,
regularly increasing dividends
INVESTOR INFORMATION
Harvia’s shares are listed on the ocial list of Nasdaq
Helsinki in the Mid Cap segment. Harvia has one class
of shares, and the trading code is HARVIA.
Please find more information on Harvia’s website at
www.harviagroup.com.
INVESTOR CALENDAR 2026
• Annual General Meeting: 15 April
• January−March 2026 interim report: 7 May
• January−June 2026 half-year financial review:
6 August
• January−September 2026 interim report:
29 October
24Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
GOVERNANCE
AND REMUNERATION
25Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
INTRODUCTION
Harvia Plc’s (“Harvia” or “the company”) corporate governance complies with the
Finnish Limited Liability Companies Act and Securities Markets Act, regulations
concerning listed companies, the company’s Articles of Association, and the rules
and regulations of Nasdaq Helsinki Ltd. The company adheres to the Finnish
Corporate Governance Code.
This report has been prepared in accordance with the Corporate Governance Code
eective from 1 January 2025 (“Corporate Governance Code 2025”) set by the
Securities Market Association and available at www.cgfinland.fi. In its governance in
2025, Harvia complied with the Corporate Governance Code 2025 with no departures.
The Corporate Governance Statement is issued separately from the company’s
Reportby the Board of Directors, and it is published together with Harvia’s Report
ofthe Board of Directors, Financial Statements and Remuneration Report for 2025
onthe company website at www.harviagroup.com.
The Audit Committee of Harvia’s Board of Directors has reviewed the Corporate
Governance Statement and it has been approved by the Board. The company’s auditor
has reviewed that the Corporate Governance Statement has been issued and that the
included description of the principles of internal control and risk management systems
related to the financial reporting process is consistent with the financial statements.
Corporate Governance
Statement 2025
26Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
HARVIA’S GOVERNANCE MODEL
Harvia’s governing bodies comprise the Annual General Meeting, the Board of Directors, and
the CEO. The General Meeting of shareholders is the highest decision-making body of the
company. The Board of Directors and the CEO are responsible for the management of Harvia.
The Board has an Audit Committee and a Personnel and Remuneration Committee, which assist
the Board. The Management Team assists the CEO in managing the company and the group.
Auditor
Audits the financial statements and accounting
as well as the company’s administration.
Shareholders’ Nomination Board
Prepares and presents proposals for the
composition and remuneration of the
Board of Directors.
General Meeting
The highest decision-making body of Harvia Plc .
Board of Directors
The Board is comprised of 3–7 members, elected
by the General Meeting. The Board sees to the
strategic management of the company.
Audit Committee
Supervises the financial reporting process as
well as monitors the eciency of internal control
and auditing and the risk management system,
among others.
Personnel and Remuneration Committee
Prepares the remuneration and appointment
matters of the CEO and other senior management,
as well as the key principles and practices related
to the remuneration of the personnel.
CEO
Harvia’s Board of Directors appoints the CEO,
who manages Harvia’s business operations.
Management Team
Supports the CEO in implementing the strategy
and managing business operations.
Sustainability auditor
Assures the group sustainability statement.
27Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
ANNUAL GENERAL MEETING
The General Meeting of shareholders is the highest
decision-making body of Harvia that decides on matters
stipulated by the Finnish Limited Liability Companies Act
and the company’s Articles of Association. In the General
Meeting, all shareholders of the company are entitled to
raise questions and propose resolutions regarding issues
on the agenda. Harvia has one share series, and every
share entitles to one vote in the General Meeting.
The Annual General Meeting is held annually on a date
set by the Board of Directors within six months of the
end of the financial period. An Extraordinary General
Meeting can be convened to resolve on a specific issue
if the Board of Directors deems it necessary or it is
otherwise required by law. Harvia’s General Meeting is
held in Muurame, where the company has a registered
oce, or in Helsinki, and is convened by the Board
of Directors.
The Annual General Meeting’s agenda includes:
• presenting the financial statements, which include
the consolidated financial statements and the
Report by the Board of Directors;
• presenting the Auditor’s Report;
• deciding on the adoption of the financial statements
and use of profit shown in the balance sheet;
• deciding on the discharging of the members
of the Board of Directors and the CEO from liability;
• deciding on the remuneration of the members
of the Board of Directors and the auditor;
• deciding on the number of members
of the Board of Directors;
• electing the members of the Board of Directors;
• electing the auditor; and
• handling other possible matters included
in the notice of the General Meeting.
The notice of the General Meeting is published on the
company’s website or by a newspaper announcement
which is published in at least one national daily newspaper
designated by the Board of Directors. The notice shall be
delivered to shareholders no earlier than three months
and no later than three weeks before the meeting, and
inany case at least nine days before the record date.
To be entitled to participate in the General Meeting, a
shareholder needs to be registered in the company’s
shareholder register at least eight (8) business days
prior to the General Meeting (record date of the General
Meeting). To be entitled to exercise their right to
speak, vote and ask questions in the General Meeting,
a shareholder must have registered their participation
in the meeting in the manner stated in the meeting
notice and no later than the date specified in the
meeting notice which cannot be earlier than ten (10)
days before the General Meeting. Holders of nominee-
registered shares may also attend the General Meeting
by temporary registration in the company’s shareholder
register. A shareholder may attend the General Meeting
either in person, or via a representative authorized by
the shareholder.
2025 ANNUAL GENERAL MEETING
Harvia’s Annual General Meeting was held on 8 April 2025
in Helsinki. 285 shareholders were represented in the
meeting via either advance voting, in person or a legal
orauthorized proxy representative.
At the opening of the meeting, the participants
represented 11,803,561 shares and votes, which amounted
to approximately 63.2% of all shares and votes.
The shareholders and their representatives could
participate in the Annual General Meeting and use their
shareholder rights by both voting in advance and by
submitting counterproposals and asking questions in
advance, as well as by attending the Annual General
Meeting event in person. In addition, they could follow
the Annual General Meeting 2025 online via a webcast.
Further information and the documents related to the
General Meeting are available on Harvia’s website.
SHAREHOLDERS’ NOMINATION BOARD
Harvia has a Shareholders’ Nomination Board,
established by the Annual General Meeting in 2020. The
Nomination Board prepares proposals concerning the
election and remuneration of the Board Members, as
well as the remuneration of the members of the various
Board committees, to be submitted to Annual General
Meetings and to any Extraordinary General Meetings
where necessary.
The Shareholders’ Nomination Board consists of
representatives appointed by the company’s four
largest shareholders. Each year, those four shareholders
that hold the largest share of the votes conferred by
all shares in the company on the first working day
of the September preceding the applicable Annual
General Meeting pursuant to the shareholders’ register
maintained by Euroclear Finland Ltd will be entitled
to appoint members that represent the shareholders.
If a shareholder does not wish to exercise its right of
appointment, the right will be transferred to the next
largest shareholder that would otherwise not have the
right of appointment.
The Chair of the Board of Directors will convene the
first meeting of each term of oce of the Shareholders’
Nomination Board, and the representative of the largest
shareholder will be appointed as the Chair of the
Shareholders’ Nomination Board, unless the Nomination
Board specifically decides otherwise.
28Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
The Shareholders’ Nomination Board submits its proposal
to the company’s Board of Directors on an annual basis
and at the latest on 31 January preceding the applicable
Annual General Meeting.
NOMINATION BOARD COMPOSITION
The Nomination Board composition was appointed
by the Harvia shareholders listed below, based on the
shareholding on 1 September 2025. The Nomination
Board consists of one female (25% of total) and three
male (75% of total) members. The Nomination Board
appointed in September 2025 convened four times
during 2025 with an average attendance rate of 100%.
The Nomination Board also held a meeting in January
2026 with all members present.
NOMINATION BOARD APPOINTED BASED ON 1 SEPTEMBER 2025 SHAREHOLDINGS
Shareholder
Shareholding
on 1 Sep. 2025 Representative
Meeting attendance
in 2025
Nordea Nordic Small Cap Fund /
Nordea Funds Oy 5.03% Josefin Degerholm, Chair 4/4
Evli Fund Management Company Ltd 4.60% Janne Kujala 4/4
Onvest Oy 4.43% Juho Lipsanen 4/4
Tiipeti Oy 1.83% Timo Harvia 4/4
29Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
In addition to the members, Catharina Stackelberg-
Hammarén, the Chair of Harvia’s Board of Directors,
serves since 17 November 2025 as an expert in the
Nomination Board but is not a member. Heiner
Olbrich, the previous Chair of the Board, served as
an expert in the Nomination Board until 17 November
2025.
Summary of background for the Nomination
Board members:
Josefin Degerholm
• Principal occupation: CEO, Nordea Funds Oy
• Born 1983, Finnish citizen, female
• Master of Laws (LL.M.)
• Chair of Harvia’s Nomination Board 2025–,
member 2024–
Janne Kujala
• Principal occupation: Head of Nordic Equities,
Evli Fund Management Company Ltd
• Born 1972, Finnish citizen, male
• M.Sc. (Econ.)
• Member of Harvia’s Nomination Board 2024–
Juho Lipsanen
• Principal occupation: Board professional
• Born 1961, Finnish citizen, male
• M.Sc. (Finance), MBA
• Member of Harvia’s Nomination Board 2020–
Timo Harvia
• Principal occupation: Head of Innovation and
Technology, Harvia Plc
• Born 1978, Finnish citizen, male
• M.Sc. (Engineering)
• Member of Harvia’s Nomination Board 2023–2024,
2025–
On 30 January 2026, the Nomination Board submitted
its proposals for the number of members of the
Board of Directors, for the composition and for the
remuneration of the Board of Directors to Harvia Plc’s
Annual General Meeting 2026. The Nomination Board
was unanimous in its proposals.
Members of the Shareholders’ Nomination Board during
the term between 9 September 2024 and 8 September
2025 included Juho Lipsanen (Onvest Oy), Minna
Laaksonen (WestStar Oy), Janne Kujala (Evli Fund
Management Company Ltd) and Josefin Degerholm
(Nordea Funds Oy). Heiner Olbrich served as an expert
in the Nomination Board but was not a member.
This Nomination Board convened once in 2025, all
members participating. It submitted its proposals to
the company’s Annual General Meeting 2025 on 17
January 2025.
BOARD OF DIRECTORS
According to Harvia’s Articles of Association, the
company’s Board of Directors consists of three to seven
members, as the maximum number of members was
resolved by the Annual General Meeting 2025 to be
increased from six to seven. The members are elected in
the Annual General Meeting for a term which expires at
the end of the Annual General Meeting following their
election. The Board of Directors elects a Chair from
among its members for its term.
The majority of the Board members shall be independent
of the company, with at least two of these members also
being independent of the significant shareholders of the
company. The Board of Directors assesses its members’
independence of the company and its significant
shareholders annually and as needed, in accordance
with the criteria set in the Corporate Governance Code
2025. In the selection of members, attention shall be
paid tomembers’ mutually complementary experience
and competence in the company’s field of business
and development stage.
DUTIES OF THE BOARD OF DIRECTORS
The duties and activities of the Board of Directors are
defined by the Finnish Limited Liability Companies
Act, the Corporate Governance Code, other applicable
legislation, Harvia’s Articles of Association and the
Rules of Procedure of the Board of Directors.
The key duties and operating principles of the Board of
Directors are defined in the Rules of Procedure of the
Board of Directors. The Board has general authority to
decide on all matters related to the administration of
the company and other issues that, according to the
law or the Articles of Association, do not fall under the
jurisdiction of the General Meeting or the CEO.
The Board of Directors:
• convenes the Annual and Extraordinary General
Meetings in addition to preparing and submitting
proposals to the General Meeting,
• defines the company’s profit-sharing policy and
submits a proposal concerning profit sharing to the
General Meeting,
• decides on charitable donations within the
framework provided by the Finnish Limited Liability
Companies Act,
• defines the operating principles of the company’s
risk control system and internal controls,
• discusses and adopts the annual report and financial
statements as well as the interim reports,
• decides on the establishment or disbandment of
committees and confirms their charters,
• defines the diversity policy of the company’s Board
of Directors,
30Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
ATTENDANCE IN BOARD MEETINGS 2025
Member Role Attendance Attendance, %
Catharina Stackelberg-
Hammarén
Chair from 17 Nov.
Deputy Chair until 17 Nov. 14/15 93%
Markus Lengauer Deputy Chair from 17 Nov. 15/15 100%
Petri Castrén Member from 8 April 10/10 100%
Anders Holmén Member 15/15 100%
Hille Korhonen Member 10/15 67%
Olli Liitola Member 15/15 100%
Heiner Olbrich Chair until 17 Nov. 14/15 93%
• monitors and assesses the financial
reporting system,
• monitors and assesses internal control
and inspection and eciency of risk
management systems,
• monitors and assesses the independence of
theauditor and, in particular, non-audit services
provided by the auditor,
• monitors the company’s auditor, and prepares
theelection of the company’s auditor.
In addition to the duties prescribed by law and the
Articles of Association, the Board of Directors handles
matters that are significant to and have a long-term
impact on the extent and quality of the operations
ofthe company and Harvia Group:
• the long-term vision and strategic goals and
guidelines as well as the primary financial goals,
• the group structure and the budgets of group
companies as part of the group’s budget,
• strategically or financially important investments
ofthe group, significant expansions or reductions
inbusiness operations,
• corporate transactions and business asset deals, and
• significant contingent liabilities and other
matters with a material impact on the group’s
business operations.
The Board of Directors also appoints and dismisses the
CEO and the members of the management team for
their duties and decides on their terms of employment
and incentive systems.
The Board of Directors convenes usually 9–10 times
a year in accordance with an agreed schedule. The
Board will hold extraordinary meetings as necessary,
which may also be held as teleconference meetings.
Matters may also be decided upon without convening
an actual meeting by drawing up a final protocol that
is signed by all board members. The Board of Directors
is quorate when more than half of its members are
present. The Board of Directors strives to make
unanimous decisions. If necessary, the matter is resolved
by a vote. Decisions are made by a simple majority
of votes. In the event of a tie, the Chairperson’s vote
is decisive.
THE BOARD OF DIRECTORS IN 2025
Between 1 January and 8 April 2025, the members ofthe
Board of Directors were Heiner Olbrich (Chair), Catharina
Stackelberg-Hammarén (Deputy Chair), Anders Holmén,
Hille Korhonen, Markus Lengauer, and Olli Liitola.
The Annual General Meeting on 8 April 2025 elected
the members of the Board of Directors for a term that
expires at the end of the next Annual General Meeting.
Anders Holmén, Hille Korhonen, Markus Lengauer, Olli
Liitola, Heiner Olbrich, and Catharina Stackelberg-
Hammarén were re-elected as members. Petri Castrén
was elected as a new member. The organizational
meeting of the Board of Directors elected from among
its members Heiner Olbrich as its Chair. Catharina
Stackelberg-Hammarén was elected as Deputy Chair of
the Board.
On 17 November 2025, the Board of Directors elected
from among its members Catharina Stackelberg-
Hammarén as the Chair of the Board following the
announcement by Heiner Olbrich that he will resign
from his position as Chair and will not be available for
re-election in the Annual General Meeting 2026 for
personal reasons. The change was made to ensure
seamless continuity of board work following Olbrich’s
announcement. Markus Lengauer was elected as the
Deputy Chair.
In 2025, the Board of Directors focused on Harvia’s
strategy, Asean business, potential acquisition projects,
investments, and new business initiatives. The Board of
Directors held a total of 15 meetings in 2025.
31Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
The Board of Directors
on 31 December 2025
• Chair of the Board November 2025–, Deputy
Chair 2024–November 2025, member 2023–
• Chair of the Personnel and Remuneration
Committee November 2025–,
member 2024–2025
• Master of Science (Business Administration)
• Born 1970, Finnish citizen, female
• Main occupation: Senior Vice President
of Knowit Insight Oy 2022–
• Harvia shares on 31 December 2025: 1,836
CATHARINA
STACKELBERG-
HAMMARÉN
• Member of the Board 2025–
• Chair of the Board’s Audit Committee 2025–
• LL.M., MBA
• Born 1962, Finnish citizen, male
• Main occupation: Kemira Oyj,
Chief Financial Ocer 2013–
• Harvia shares on 31 December 2025: 301
PETRI
CASTRÉN
• Chair of the Board 2024–November 2025, Deputy
Chair of the Board 2023–2024, member 2022–
• Chair of the Personnel and Remuneration
Committee 2024–November 2025
• PhD (Economics), Master of Science
(Business Administration)
• Born 1965, German citizen, male
• Main occupation: Board professional
• Harvia shares on 31 December 2025: 3,000
HEINER
OLBRICH
• Member of the Board 2021–
• Member of the Personnel and Remuneration
Committee November 2025–
• Member of the Audit Committee
2022–November 2025
• Master of Science (Economics)
• Born 1977, Finnish citizen, male
• Main occupation: Managing Director
of Fyrklöver-Invest Oy Ab 2013–
• Harvia shares on 31 December 2025: 1,986
ANDERS
HOLMÉN
• Deputy Chair of the Board November 2025–,
member 2023–
• Member the Audit Committee 2024–
• PhD (Mechanical Engineering),
Master of Science (Engineering)
• Born 1965, Austrian citizen, male
• Main occupation: Board professional
• Harvia shares on 31 December 2025: 880
MARKUS
LENGAUER
• Member of the Board 2014–,
Chair of the Board 2014–2024
• Member the Personnel and Remuneration
Committee 2024–
• Master of Science (Engineering)
• Born 1957, Finnish citizen, male
• Main occupation: Board professional
• Harvia shares on 31 December 2025: 42,174
OLLI
LIITOLA
• Member of the Board 2021–
• Chair of the Audit Committee 2023–2025,
member 2021−
• Licentiate of Technology
• Born 1961, Finnish citizen, female
• Main occupation: Board professional
• Harvia shares on 31 December 2025: 5,407
HILLE
KORHONEN
32Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
LENGTH OF MEMBERSHIP
IN HARVIA’S BOARD OF DIRECTORS
BOARD OF DIRECTORS’
NATIONALITY
BOARD OF DIRECTORS’
GENDER DISTRIBUTION
BOARD OF DIRECTORS’
AGE DISTRIBUTION
Less than 2 years
2–5 years
Over 5 years
1 member
14%
5 members
71%
1 member
14%
Finland
Germany
Austria
5 members
71%
1 member
14%
1 member
14%
Female
Male
5 members
71%
2 members
29%
45–50 years
51–55 years
56–60 years
61–65 years
Over 65 years
1 member
14%
1 member
14%
1 member
14%
2 members
29%
2 members
29%
INDEPENDENCE OF THE MEMBERS OF THE BOARD
OF DIRECTORS
In accordance with the Corporate Governance
Code, the majority of the Board members shall be
independent of the company. At least two of these
members shall also be independent of the major
shareholders of the company.
The Board of Directors assesses its members’
independence of the company and its major
shareholders annually. The members of the Board
of Directors, elected in the Annual General Meeting
on 8 April 2025, were deemed to be independent
of the company and its major shareholders based
on an assessment of independence in accordance
withtheCorporate Governance Code 2025.
DIVERSITY OF THE BOARD OF DIRECTORS
Harvia’s Shareholders’ Nomination Board takes
into account the principles concerning the Board
of Directors’ diversity in its work and its proposals.
A person elected as a member of Harvia’s Board
of Directors must have qualifications required
for the task as well as adequate availability for
carrying out the duties of a Board member. In the
selection of members, attention shall be paid to
members’ mutually complementary experience
andcompetence in the company’s field of business
and development stage.
Varied professional and educational backgrounds
support the diversity of the Board. The goal is to
promote gender equality in the selection of Board
members. Additionally, the objective is to ensure that
the composition of the Board as a whole enables
ecient management of the Board’s responsibilities
and supports the development of Harvia’s business.
33Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia has evaluated that the diversity principles in
relation to the composition of the Board of Directors
were applied in the financial year 2025. The experience
and competence profiles of the Board members are
evaluated to be versatile and mutually complementary.
The members include five Finnish citizens as well as
one German and one Austrian citizen. Among the
seven Board members elected by the Annual General
Meeting in April 2025 based on the proposal of
the Shareholders’ Nomination Board, there are two
females (28.6%) and five males (71.4%).
Harvia’s Board composition with both genders being
represented in the Board elected by the Annual
General Meeting on 8 April 2025 is in compliance
with the recommendation 8 of the Finnish Corporate
Governance Code 2020 applied until 30 June 2026.
SELF-ASSESSMENT
According to its Charter, the Board of Directors
assesses its activities and ways of working annually
as an internal self-assessment. The Board defines the
criteria used in the assessment in the annual action
plan. The aim of the evaluation is to measure and
elicit feedback e.g. on the structure, processes and
eectiveness of the board work to get an overview
of areas that are of distinction and on the other hand,
areas where more focus is warranted from the Board’s
perspective.
The Board of Directors conducted a self-assessment
with a detailed questionnaire in October 2025. The
self-assessment emphasized the quality of the board
work in general and from various angles. The Chair of
the Board reviewed and discussed the results of the
self-assessment together with the Board members.
The results were also presented to the Shareholders’
Nomination Board before they met with the Board
members individually.
AUDIT COMMITTEE
To enhance the eciency of its work, the Board
of Directors has set up an Audit Committee. The
Committee has no independent decision-making
authority; it functions as a preparatory body, and
the matters it addresses are brought to the Board
ofDirectors for decision.
The Board of Directors annually selects from among
its members the chair and the members of the
Committee and adopts its written Rules of Procedure.
The Audit Committee consists of a minimum of three
Board members. The majority of the members of the
Committee must be independent of the company, with
at least one member also being independent of the
significant shareholders of the company. The members
must have the qualifications required for the fulfillment
of the Audit Committee’s role, and at least one
member must have expertise especially in accounting,
bookkeeping or auditing.
According to its Charter, the Audit Committee focuses
particularly on processing and preparing matters
that relate to the company’s financial reporting and
internal control. The Audit Committee’s duties consist
particularly of
• monitoring the company’s financial reporting
process as well as the financial status and financing
situation of the Group;
• handling the budget, forecast and assumptions
related thereto;
• handling financial statements and board reports,
interim financial reports and profit releases before
they are submitted to the Board of Directors
for approval;
• monitoring the eciency of the company’s
internal control and internal audits as well as risk
management systems;
• preparing a financial risk management policy
andmonitoring significant financial and other risks;
• monitoring the statutory audits;
• assessing the independence of the auditor
andthequality and scope of the audit services;
• monitoring and assessment of other
non-audit services;
• monitoring and assessing the company’s corporate
responsibility and sustainability reporting processes
as well as monitoring and evaluation
of sustainability report verification;
• preparing the election procedure for
sustainability auditor;
• monitoring the procedures followed in sustainability
reporting and the eectiveness of internal control
and risk management;
• monitoring, assessing and handling general
corporateresponsibility matters;
• monitoring and assessing the company’s
tax planning, reporting and matters.
AUDIT COMMITTEE IN 2025
Between 1 January and 8 April 2025, the members
of the Audit Committee were Hille Korhonen (Chair),
Anders Holmén and Markus Lengauer. The Board of
Directors, appointed in the Annual General Meeting on
8 April 2025, elected from among its members Petri
Castrén (Chair), Anders Holmén, Hille Korhonen and
Markus Lengauer as members of the Audit Committee.
Following the change of Chair of the Board of Directors
on 17 November 2025, the Board also decided on a
change to the Audit Committee. As of 17 November2025,
the Committee comprises of Petri Castrén (Chair),
HilleKorhonen and Markus Lengauer.
34Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
ATTENDANCE IN COMMITTEE MEETINGS 2025
Audit Committee Personnel and Remuneration Committee
Member Attendance Attendance, % Attendance Attendance, %
Catharina Stackelberg-Hammarén 6/6 100%
Markus Lengauer 6/7 86%
Petri Castrén 5/5 100%
Anders Holmén 7/7 100% 1/1 100%
Hille Korhonen 6/7 86%
Olli Liitola 6/6 100%
Heiner Olbrich 5/5 100%
In 2025, the Audit Committee convened 7 times. The
members’ attendance in the meetings is described
in the table below. In addition to the normal annual
plan-related duties of the Audit Committee, the
Committee focused in its work in 2025 especially on
CSRD sustainability reporting, following group-wide
integration and IT matters, and developing further the
audit committee work and future agenda.
PERSONNEL AND REMUNERATION COMMITTEE
The Personnel and Remuneration Committee
assists the Board by preparing the remuneration
and appointment matters of the CEO and other
senior management of the Group, as well as the key
principles and practices related to the remuneration
ofthe company’s personnel.
The Board selects from among its members the
members and the chair of the Committee at the
organizational meeting. The Committee shall consist
of at least three Board members. The majority of
the members of the Personnel and Remuneration
Committee shall be independent of the company.
According to its Charter, the duties of the Personnel
and Remuneration Committee include
• preparing the governing bodies’ remuneration
policy and report;
• presenting the governing bodies’ remuneration
policy and report to the General Meeting and
answering questions about them;
• preparing the appointment of the CEO and
other members of the Management Team and
succession planning;
• preparing and reviewing the remuneration of the
CEO and other members of the Management Team;
• planning the remuneration of other personnel
andorganizational development; and
• monitoring and developing the company’s
organization and personnel matters.
In addition, the Personnel and Remuneration
Committee may have other tasks that are appropriate
to fulfill the role of the Committee. When carrying out
its duties, the Committee shall act independently in
relation to the operative management of the company.
PERSONNEL AND REMUNERATION COMMITTEE
IN 2025
The Board of Directors, appointed in the Annual
General Meeting on 8 April 2025, elected from its
members Heiner Olbrich (Chair), Olli Liitola and
Catharina Stackelberg-Hammarén as members of
the Personnel and Remuneration Committee. The
composition of the Committee was the same between
1 January and 8 April 2025.
Following the change of Chair of the Board
of Directors on 17 November 2025, the Board
35Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
GENDER DISTRIBUTION IN THE HARVIA
MANAGEMENT TEAM
Male
Female
1 member
9%
10 members
91%
also decided on a change to the Personnel and
Remuneration Committee. As of 17 November 2025,
the Committee comprises of Catharina Stackelberg-
Hammarén (Chair), Anders Holmén and Olli Liitola.
In 2025, the Personnel and Remuneration Committee
convened 6 times. The members’ attendance in the
meetings is described in the table on page 35. In 2025,
the Personnel and Remuneration Committee focused
on the recruitment matters of the Head of Continental
Europe and Head of North America business regions,
developing the remuneration policies for the Harvia
management and key personnel, to be approved by
the Board of Directors.
CEO
The CEO is responsible for the day-to-day
management of the company. The CEO is responsible
for ensuring that the targets, plans, guidelines and
goals set by the Board are carried out within Harvia.
According to the Finnish Limited Liability Companies
Act, the CEO ensures that the accounting practices
of the company comply with the law and that the
company’s financial administration is arranged in
areliable manner.
The Board of Directors appoints and, if necessary,
dismisses the CEO and decides on the CEO’s terms of
service, defined in a written service contract approved
by the Board. The CEO is appointed for the post until
further notice. The Board of Directors evaluates the
CEO’s work and performance in achieving the assigned
targets. The CEO cannot be elected as Chair of the
Board of Directors.
Matias Järnefelt has acted as the CEO of Harvia
since March 2023. The CEO’s financial benefits are
introduced in the 2025 Remuneration Report.
THE GROUP’S MANAGEMENT TEAM
The Management Team supports the CEO and is
responsible for the development and operational
management of the Group and its business, in
accordance with the goals set by the Board of
Directors and the CEO. The Management Team also
defines the operating principles and procedures in line
with the direction given by the Board of Directors.
The Management Team convenes monthly, and when
needed, and focuses on strategic questions concerning
the Group and its businesses. Questions and reports
concerning financial development, governance,
corporate responsibility and development projects are
regularly on the agenda. The CEO acts as the chair
ofthe Group’s Management Team.
In addition to the ordinary business management
and development duties, the Management Team
focused in 2025 on working eectively on the current
organizational model, strategic planning, executing the
ThermaSol integration and developing new business
initiatives and their execution.
36Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Members of the Management Team
on 31 December 2025
• CEO
• M.Sc. (Industrial Engineering and Management)
• Born 1974, Finnish citizen, male
• CEO and member of the Management Team 2023−
• Harvia shares on 31 December 2025: 0
• Head of Region Asia-Pacific-MEA
• Vocational qualification in business and administration
• Born 1966, Finnish citizen, male
• Head of Region Asia-Pacific-MEA 2024−,
member of the Management Team 2014−
• Harvia shares on 31 December 2025: 82,983
• Chief Financial Ocer
• M.Sc. (Engineering) and MBA
• Born 1963, Finnish citizen, male
• Chief Financial Ocer and member
of the Management Team 2014−
• Harvia shares on 31 December 2025: 151,650
MATIAS
JÄRNEFELT
ARI
VESTERINEN
DAVID
AHONEN
• Head of Region Northern Europe
• Vocational qualification in business and administration
• Born 1964, Finnish citizen, male
• Head of Region Northern Europe 2024−,
member of the Management Team 2014−
• Harvia shares on 31 December 2025: 63,052
• Head of Region North America
• Bachelor of Business Administration
• Born 1980, U.S. citizen, male
• Head of Region North America, member of the Management
Team, and President of Harvia US Inc. November 2025−
• Harvia shares on 31 December 2025: 0
NATHAN
HAGEMEIER
ANSSI
PELKONEN
IVAN
SABATO
• Head of Region Continental Europe
• Master of Business Administration
• Born 1989, Italian Citizen, male
• Head of Region Continental Europe and member
of the Management Team April 2025–
• Harvia shares on 31 December 2025: 0
37Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
• Head of Operations
• Master of Engineering
• Born 1975, Finnish citizen, male
• Head of Operations 2024−, member of the Management
Team 2016−
• Harvia shares on 31 December 2025: 35,000
MIKA
SUOJA
• Head of Marketing and Brands
• M.Sc. (Economics and Business Administration)
• Born 1976, Finnish citizen, female
• Head of Marketing and Brands 2024−,
member of the Management Team 2020−
• Harvia shares on 31 December 2025: 3,371
• Head of Products and Solutions, Head of Region Continental Europe
• Technical chemistry studies
• Born 1974, Austrian citizen, male
• Head of Products and Solutions 2024−,
member of the Management Team 2017−
• Harvia shares on 31 December 2025: 106,960
PÄIVI
JUOLAHTI
PHILIPP
KRAUTH
• Managing Director of EOS, Head of EOS Brands and Products
• Diplom Betriebswirt (BA), Business, Management,
International Marketing
• Born 1967, German citizen, male
• Managing Director of EOS, Head of EOS Brands and Products
and member of the Management Team 2024−
• Harvia shares on 31 December 2025: 0
• Head of Innovation and Technology
• M.Sc. (Engineering)
• Born 1978, Finnish citizen, male
• Head of Innovation and Technology 2024−,
member of the Management Team 2014−
• Harvia shares on 31 December 2025: 103,316
TIMO
HARVIA
Members of the Management Team
on 31 December 2025
MARKUS
WÖRMANSEDER
Jennifer Thayer acted as Head of Region, North
America and President of Harvia US Inc, until 30 May
2025. Nick Larrick, Vice President of Operations at
Harvia North America, served as Interim Head of
Region, North America, and as an interim member
of Harvia’s Management Team from 1 June 2025 until
1November 2025, when Nathan Hagemeier assumed
his position.
The resumes of the members of the Management
Teamare available on the company website at
www.harviagroup.com.
38Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
PRINCIPLES OF INTERNAL CONTROL AND RISK
MANAGEMENT RELATED TO THE FINANCIAL
REPORTING PROCESS
Harvia compiles its financial reporting in accordance with
the International Financial Reporting Standards (IFRS),
the Finnish Securities Markets Act, the Finnish Accounting
Act and the guidelines and statements of the Finnish
Accounting Board, while also complying with the rules
and regulations of the Financial Supervisory Authority and
the rules of the Nordic Main Market Rulebook for Issuers
of Shares.
The principles, instructions, practices and areas of
responsibility in internal auditing and risk management
relating to the company’s financial reporting process are
aimed at ensuring that the company’s financial reporting
is reliable and that the financial statements have been
prepared in accordance with applicable laws, regulations
and the company’s operating principles.
Harvia’s financial reporting is supervised on two levels, in a
separate company and at the Group level. On both levels,
control measures and analyses are carried out to ensure
the validity of financial reporting.
The Audit Committee of the Board of Directors is
responsible for overseeing the financial reporting process.
OVERVIEW OF RISK MANAGEMENT
Risk management is part of Harvia’s business
management. Harvia Group’s risk management is guided
by the Risk Management Policy. The purpose of risk
management is to promote the identification of risks and
their preventive management, to ensure an adequate level
of risk management, and to include risk management as
part of the company’s business.
Harvia has a group-level risk assessment and reporting
model. The Group carries out a comprehensive risk
assessment annually in which the most relevant risks to
the realization of the Group’s strategy or other objectives
are evaluated based on their likelihood and impact on
business operations. As a part of the risk assessment
process, the Group identifies possible scenarios as a
way to identify relevant risks and developments that
could lead to the realization of relevant risks. The annual
risk assessment also evaluates the company’s risk
management measures. If needed, the risk assessment is
updated, for example, for the risk assessment included in
interim reports.
The Group’s Management Team is responsible for the
risk assessment and the execution of risk management.
The results of the risk assessment are reported to the
Audit Committee of the Board of Directors as well as to
the Group’s Board of Directors. The Audit Committee
of the Board of Directors supervises the eciency
and expediency of the Group’s risk management.
Throughout the year, the Committee addresses specific
risk management topics, supported by the results of
the annual risk management process and identified
relevant risks.
INTERNAL CONTROL AND AUDIT
The objective of internal control at Harvia is to ensure
the realization of the company’s strategic, financial,
operational and procedural targets, and to ensure
compliance with applicable laws and regulations in the
Group. The Group’s internal control is an essential part
of business management and of ensuring that the set
objectives are reached. The Group aims to organize
internal control eciently so that any deviations from
targets can be detected as early as possible or that they
can be prevented.
Harvia’s tools of internal control include internal policies,
guidelines and instructions, together with manual controls
as well as controls built into systems. Inaddition, internal
control is implemented in the form of various monitoring
reports and meetings.
The Board of Directors of Harvia is responsible for
organizing the internal control, and the Audit Committee
oversees the eciency of internal control. The Group
Management Team and the CEO of each Group company
are responsible for the Group having functioning control
procedures in use.
Harvia Group does not have its own internal audit
function. The Board of Directors will annually assess the
need for internal audit procedures and, if needed, may use
internal company resources or external service providers
for internal audit measures.
RELATED PARTY TRANSACTIONS
Harvia’s Board of Directors has defined the principles for
monitoring and evaluating related party transactions. The
Group maintains a related party list intended to identify
transactions that involve a person considered arelated
party to Harvia. Harvia’s related parties include the Board
of Directors and the Management Team and their closely
associated persons as well as the companies under the
control of the managers. Harvia’s Board of Directors
processes any significant related party transactions.
The company’s Board of Directors decides on significant
transactions carried out with Harvia’s management and
its related parties. The Board of Directors also decides on
possible related party transactions that do not fall within
the company’s regular business or are not carried out with
regular market terms.
39Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
In 2025, the company had no related party transactions
that were significant to the company and deviated from its
regular business or were carried out on other than normal
market terms.
INSIDER MANAGEMENT
Harvia complies with the Market Abuse Regulation ((EU)
No. 596/2014, “MAR”), including its amendments, and
regulations issued under it, instructions issued by the
authorities, as well as the insider guidelines of Nasdaq
Helsinki Ltd. In addition, the company has supplemented
Nasdaq Helsinki Ltd’s insider guidelines with its own insider
guidelines. The company maintains a list of employees and
service providers who have access to insider information.
The company’s insider list comprises one or more project-
based insider lists. The company has estimated that it
does not have insiders who would require a separate
supplement to the insider list.
The company has appointed a person in charge of insider
issues, who is responsible for maintaining insider lists,
handling trading restrictions and the management of the
obligation to notify and disclose transactions, internal
communications related to insider issues, training on
insider issues and the supervision of insider issues.
Harvia has internal procedures for publishing insider
information, possible delayed disclosure of insider
information and maintaining project-specific insider lists.
Harvia observes the trading ban on managers (closed
window) specified in MAR article 19(11). In addition, the
company has separately defined specific individuals who
participate in preparing financial reports, or who have
access to information related to such reports, as being
restricted by a trading ban of similar length and content
(closed window). The closed window begins 30days prior
to the publication of a financial statements bulletin, half-
year report or interim report.
Harvia uses a whistleblowing channel that enables all
stakeholders to report possible misconduct through Harvia
Group’s website. No suspected violations of the rules and
regulations concerning the financial markets were reported
through the reporting channel in 2025.
MANAGEMENT TRANSACTIONS
Harvia has determined that managers whose transactions
shall be notified include members and deputy members
of the Board of Directors, the CEO, and other members of
the Management Team. These persons and their closely
associated persons are required to notify the company and
the Financial Supervisory Authority of every transaction
conducted on their own account relating to the shares,
debt instruments, derivatives or other financial instruments
of Harvia. Harvia discloses the information via a stock
exchange release without delay, at the latest within three
business days following the execution of the transaction.
Managers may not conduct any transactions on their
own account or on the account of a third party, directly
or indirectly, relating to Harvia’s shares, debt instruments,
derivatives or other financial instruments during a closed
period of thirty (30) calendar days before the publication
of a financial statements bulletin, half-year report or an
interim report.
EXTERNAL AUDIT AND SUSTAINABILITY ASSURANCE
The statutory audit covers the company’s accounting,
financial statements and administration for the financial year.
In addition to the annual auditor’s report, the auditors
regularly report their auditing observations to the Board
ofDirectors and participate in the meetings of the Board’s
Audit Committee.
The company shall have an auditor which is an auditing
organization approved by the Finnish Patent and
Registration Oce. The term of the auditor expires at
the conclusion of the Annual General Meeting following
their election.
The company’s Audit Committee prepares a proposal on
the auditor and the remuneration of the auditor to the
General Meeting, which elects the auditor and decides on
their remuneration.
EXTERNAL AUDIT AND SUSTAINABILITY ASSURANCE
IN 2025
The Annual General Meeting on 8 April 2025 re-elected
Authorized Public Accounting firm Deloitte Oy as the
company’s auditor with Johan Groop, Authorized Public
Accountant, as the principal auditor. The fees paid to
Deloitte Oy in 2025 totaled EUR 301 thousand (166
thousand). Of the fees paid, EUR 274 thousand (160
thousand) were fees for the statutory audit and EUR 27
thousand (6 thousand) were comprised of other fees
related to audit opinions on mergers.
Audit fees paid to other firms totaled EUR 105 thousand
(143 thousand). Of the fees paid, EUR 59 thousand (69
thousand) were fees for a statutory audit and
EUR 46 thousand (75 thousand) were comprised of other
fees. The other fees were related to auditor opinions
and certificates.
The Annual General Meeting 2025 elected sustainability
audit firm Deloitte Oy as the authorized sustainability
assurer for the term that lasts until the end of the
company’s Annual General Meeting 2026. The fees for the
assurance work totaled EUR 55 thousand (0 thousand).
40Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia Plc’s Remuneration
Report 2025
DEAR HARVIA SHAREHOLDER,
On behalf of Harvia Plc’s Board of Directors, I am
pleased to present the company’s Remuneration
Report for the financial year 2025. The Remuneration
Report describes the remuneration of the company’s
Board of Directors and CEO in 2025 and how the
company’s remuneration policy has been implemented.
The Remuneration Report 2025 has been drafted in
accordance with the Finnish Corporate Governance
Code 2025 of the Securities Market Association, and it
will be presented at Harvia’s Annual General Meeting
2026 for an advisory vote.
HARVIA’S KEY PRINCIPLES OF REMUNERATION
Harvia’s remuneration policy outlines the key principles
for the remuneration of the Board of Directors and
the CEO. The Annual General Meeting approved
the company’s updated remuneration policy on 8
April 2025.
The long-standing key principles of remuneration
at Harvia are transparency, market orientation, and
rewarding good performance. The aim is to encourage
and reward the company’s Board of Directors and
CEO for operating in accordance with the company’s
strategy and values and to motivate them to strive
for Harvia’s success. The objective of remuneration
is to promote the long-term profitable growth and
competitiveness of the company and to ensure
that Harvia is an attractive employer for competent
management and the entire personnel.
2025: A YEAR OF GROWTH
Despite the uncertainty in the global economy, the
year 2025 was a time of strong growth and stable
profitability for Harvia: the company’s revenue grew
by 13.5% and the adjusted operating profit was
19.6% of revenue. Growth was particularly strong in
North America and the APAC & MEA region, and the
European markets also showed signs of recovery.
Growing awareness of sauna’s health benefits and
thewellness trend supported the demand for Harvia’s
sauna solutions globally.
I would like to express my warmest thanks to Harvia’s
management and the entire sta for their excellent
work in driving the company’s profitable growth in
2025 and implementing strategic projects that support
Harvia’s future success.
REMUNERATION IN 2025
In the financial year 2025, the remuneration of
Harvia’s Board of Directors and CEO was compliant
with the company’s remuneration policy.
The Annual General Meeting 2025 resolved that
approximately 40% of the monthly remuneration
of the members of the Board of Directors is
paid in company shares. In exceptional cases,
the remuneration can be paid fully in cash. The
remuneration to be paid to the members of the
Board of Directors for the term 2025–2026 remained
unchanged in accordance with the proposal of the
Shareholders’ Nomination Board.
In 2025, the remuneration of CEO Matias Järnefelt
consisted of a monthly salary, a short-term
performance bonus as well as a share-based long-
term incentive program. Based on the short-term
incentive scheme, the maximum bonus payable for
the financial year 2025 can account for a maximum
of 70% of the CEO’s fixed annual salary. The
performance outcome was 54%, and the criteria
were related to Harvia’s adjusted operating profit
and personal targets. The performance criteria of
41Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
the 2023–2025 period of the long-term incentive
scheme were the total shareholder return of
Harvia’s share, revenue growth, and reducing CO
2
emissions. The reward to be paid to CEO Järnefelt
for the period is 8,032 shares, which is 58.1% of the
maximum earning.
DEVELOPING REMUNERATION
We want Harvia’s remuneration policy to
reflect market expectations and support the
competitiveness of the company’s remuneration
also in the future.
The Shareholders’ Nomination Board annually
submits its proposal to the Annual General
Meeting concerning the remuneration of the
Board of Directors and the development of the
remuneration. For the Annual General Meeting
2026, the Nomination Board has proposed
increases to the monthly remuneration and
meeting fees of the members of the Board of
Directors. The proposed increases are based on an
analysis commissioned by the Nomination Board
of the total remuneration of the members of the
Boards of Directors at comparable Finnish listed
companies. Regarding the remuneration of Harvia’s
management, the Board of Directors considers the
promotion of the company’s long-term success and
strategic targets. The remuneration criteria related
to growth, profitability, and sustainability will play a
key role also going forward.
Members of the Personnel and Remuneration
Committee until 17 November 2025:
• Heiner Olbrich, Chair
• Olli Liitola
• Catharina Stackelberg-Hammarén
Members of the Personnel and Remuneration
Committee from 17 November 2025:
• Catharina Stackelberg-Hammarén, Chair
• Anders Holmén
• Olli Liitola
We will continue to develop our remuneration
systems so that they support Harvia’s growth and
sustainability targets in an optimal way and help to
generate value for all of Harvia’s stakeholders.
Catharina Stackelberg-Hammarén
Chair of the Board of Directors
Chair of the Board’s Personnel and
Remuneration Committee
Harvia Plc
42Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
INTRODUCTION
Harvia Plc’s (“Harvia” or “the company”) remuneration
report for the year 2025 (“Remuneration Report”)
describes the remuneration of the company’s Board
of Directors and CEO in 2025 and how the company’s
remuneration policy has been implemented. Harvia
adheres to the Finnish Corporate Governance Code
2025 of the Securities Market Association.
The Remuneration Report has been drafted in
accordance with the Corporate Governance Code
2025 and other regulation. The Personnel and
Remuneration Committee of Harvia’s Board of
Directors has reviewed the Remuneration Report and
it has been approved by the Board. The company’s
auditor has reviewed that the report has been
issued. The Remuneration Report will be presented
at Harvia’s Annual General Meeting 2026 for an
advisory vote.
Harvia has a remuneration policy that outlines the
principles for the remuneration of the Board of
Directors, CEO and possible deputy CEO. In 2025,
Harvia adhered to the Remuneration Policy 2024
until the Annual General Meeting 2025. The amended
Remuneration Policy 2025 was presented to the
Annual General Meeting, held on 8 April 2025, for an
advisory vote. The Annual General Meeting resolved
toadopt the Remuneration Policy 2025.
The main changes compared to the Remuneration
Policy2024 were:
• The expected regular level and maximum earning
potential of the short-term incentive scheme as
a percentage of fixed salary was included in the
remuneration policy.
• The expected target level and maximum earning
potential of the long-term incentive scheme as
a percentage of fixed salary was included in the
remuneration policy.
• The performance periods of the long-term incentive
scheme were defined as minimum three financial years.
• The criteria for the long- and short-term incentive
schemes were further specified and it was indicated
that the majority of the remuneration criteria is
to be based on financial indicators.
• Additionally, certain other minor specifications,
updates and additions were made to the policy.
The Remuneration Report 2024 received a ‘for’ vote
from a majority of shareholders in the Annual General
Meeting 2025.
In 2025, the remuneration of the Board of Directors and
CEO complied with the remuneration policy eective at
the time when the decisions on such remuneration were
made and there were no deviations. The remuneration of
the Board of Directors or CEO were not clawed back or
adjusted in the financial year 2025.
KEY REMUNERATION PRINCIPLES
According to the Remuneration Policy 2025, Harvia’s
remuneration principles apply to the entire personnel
ofthe company. Transparency and market-orientation
and remuneration based on good performance are
keyprinciples in remuneration.
The objective of the company’s remuneration policy
is to encourage and reward management for work
that is in line with the company’s strategy at a given
time and for compliance with the set rules, as well
as to motivate them to strive for the success of
the Company.
Well-functioning and competitive remuneration is an
essential tool for engaging competent directors and
executives. This, in turn, contributes to the financial
success of the company and the implementation
of good corporate governance. In addition to
supporting the company’s long-term profitability
and competitiveness, remuneration supports the
company’s strategy.
Remuneration, in accordance with the Remuneration
Policy 2025, consists of the following components:
• Basic salary and other benefits, which are in
compliance with the local market practices, laws,
and regulations.
• Short-term incentive scheme, which is meant
to guide the performance of an individual and
the organization as well as to support rapid
implementation of strategic projects.
• Long-term remuneration scheme, which is meant
for committing the CEO and other key persons to
the company and harmonizing their interests with
those of shareholders.
43Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
REVENUE, EUR MILLION
0
50
100
150
200
2021
2022
2023
2025
179.1
172.4
150.5
175.2
198.9
ADJUSTED OPERATING PROFIT AND
ADJUSTED OPERATING PROFIT MARGIN
0
10
20
30
40
50
2021
2022
2023
2025
47.3
36.5
33.7
37.1
39.1
Adjusted operating profit*, EUR million
0
10
20
30
40
50
26.4
21.1
22.4
21.2
19.6
Adjusted operating profit margin, %
* Adjusted by items aecting comparability
EARNINGS PER SHARE AND
DIVIDEND PER SHARE, EUR
0.0
0.5
1.0
1.5
2.0
2021
2022
2023
2025
1.80
1.45
1.25
1.30
1.41
0.60
0.64
0.68
0.75
0.77
*
Earnings per share, EUR
Dividend per share, EUR
* Dividend per share for 2025 is the dividend proposal of Harvia’s
Board of Directors to the 2026 Annual General Meeting.
The CEO’s basic salary shall be aligned with the
interest of the company and its shareholders. The
basic salary shall be competitive in order to be able
to induce and engage talented professionals to the
company’s service.
The Personnel and Remuneration Committee assists
the Board of Directors in monitoring and supervising
the functionality of the remuneration policy, the
competitiveness of remuneration and how the
remuneration policy promotes the company’s and
group’s long-term objectives. The Board of Directors
proposes amendments to the remuneration policy to
the Annual General Meeting on the recommendation
of the Personnel and Remuneration Committee,
if necessary. The remuneration policy must be
presented to the Annual General Meeting at least every
four years for an advisory vote and whenever material
changes have been made to it.
DEVELOPMENT OF THE REMUNERATION
Harvia is one of the leading companies operating in the
sauna market globally, as measured by revenue. Since
its initial public oering in 2018, Harvia has more than
doubled its size in revenue while delivering consistently
strong profitability. Harvia has defined its strategic role
in the industry as “shaping the global sauna market
so that everyone has a reason to experience sauna”.
The strategic focus areas are: Delivering the full sauna
experience; Winning in strategically important markets;
Leading in key channels; and Best-in-class operations
&great people.
During the five-year period reviewed in the
Remuneration Report, the Group’s revenue has increased
from EUR 179.1 million in 2021 to EUR 198.9 million in
2025. Harvia proved again its ability to deliver solid
financial results during the year, including 13.5% revenue
growth, while taking leaps forward in strategic initiatives
that ensure the company’s success in the future. The
adjusted operating profit amounted to EUR 39.1 million
in 2025, while it was EUR 47.3 million in 2021. Adjusted
operating profit margin was 19.6 percent in 2025.
Dividends paid by Harvia have increased by 47.1%
in 2021–2025. The total shareholder return (TSR) of
Harvia’s share was 88.1% in 2021–2025. Dividends paid in
2021–2025 and the price development of Harvia’s share
have been taken into account in the TSR.
44Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
REMUNERATION PAID TO THE CEO, MEUR
Based on remuneration paid to Tapio Pajuharju until 31 May 2023
and remuneration paid to Matias Järnefelt as of 1 June 2023.
0.0
0.5
1.0
1.5
2.0
2021
2022
2023
2025
Salary
Short-term incentive bonus
Performance bonus
Long-term incentive
Supplementary pension
REMUNERATION
(EUR 1,000) 2021 2022 2023 2024 2025
Chair of the Board 53 53 61 58 63
Change from the previous year, % -8% 1% 14% -5% 9%
Other Board members on average 28 30 32 37 49
Change from the previous year, % 36% 10% 6% 16% 30%
CEO’s fixed monthly salary including taxable benefits
1)
524 510 570 511 567
Change from the previous year, % 9% -3% 12% -10% 11%
CEO’s remuneration in total
1), 2)
1,774 1,523 695 581 839
Change from the previous year, % 190% -14% -54% -16% 44%
The salary of a Harvia employee on average
3)
33 33 39 45 49
Change from the previous year, % -2% 0% 18% 16% 8%
1) Based on remuneration paid to Tapio Pajuharju by 31 May 2023 and remuneration paid to Matias Järnefelt as of 1 June 2023.
2) Rewards based on Harvia’s long-term incentive program were paid to Pajuharju in shares in May 2021 for the 2018–2020 performance period
with the gross value of EUR 1,012,291.35, and in May 2022 for the 2019−2021 performance period with the gross value of EUR 721,052.57.
3) The average salary of a Harvia employee is calculated by taking the total salaries and bonuses paid to employees other than the members
of the Board of Directors, as defined in the financial statements for the financial year, and dividing the amount by the number of employees.
45Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
REMUNERATION OF THE BOARD OF DIRECTORS
IN 2025
In accordance with the Finnish Limited Liability
Companies Act, the shareholders decide on the
remuneration of the members of the Board of
Directors in the Annual General Meeting. Decisions
concerning the remuneration of the Board of
Directors are made in the Annual General Meeting
for a single term of oce at a time based on a
proposal of the Shareholders’ Nomination Board,
established following the decision of the Annual
General Meeting 2020.
The Annual General Meeting 2025 resolved on the
following monthly remuneration for the members of
the Board of Directors for their term ending after the
Annual General Meeting 2026:
• Chairperson of the Board EUR 5,000 (EUR 5,000
resolved by the Annual General Meeting 2024)
• Deputy Chair of the Board EUR 3,500 (3,500)
• Other members of the Board EUR 3,000
(EUR 3,000).
According to the Annual General Meeting’s
resolution in 2025, the monthly remuneration of
the Board members is paid in company shares
and in cash in such a way that 40% of the total
monthly remuneration will be paid in company
shares purchased at a price determined in public
trading on Nasdaq Helsinki Ltd or via a share issue
and 60% will be paid in cash. The company will
pay any trading costs and transfer tax related to
the purchase of the remuneration shares. In case
the remuneration cannot be paid in the company’s
shares due to legal or other regulatory restrictions
or due to other reasons related to the company or a
member of the Board of Directors or if the payment
of the remuneration in shares would prove to be
unreasonably dicult in practice, the remuneration will
be paid in cash. A member of the Board of Directors
may not assign the shares received as remuneration
for Board membership in 2025 until two years have
passed since the date of the receipt of the shares.
In addition, the Shareholders’ Nomination Board
had proposed that the remuneration of the Board
committee members be paid as meeting fees as
follows: EUR 1,000 per meeting for the Chair of a
committee (1,000) and EUR 600 per meeting for the
other members (600). The remuneration for the Board
committee work is paid in cash.
The Annual General Meeting also resolved that the
members of the Board of Directors living outside
Finland will be paid EUR 900 per meeting if the
member travels to Finland only for that meeting (900).
The fee is paid in cash. If a member participates in
a meeting via phone or other electronic means, no
separate meeting fee will be paid. No fee is paid for
decisions made without convening a meeting.
The travel expenses of the members of the Board of
Directors are compensated in accordance with the
company’s travel policy.
Remuneration for the company’s Board members does
not include pension payments, and Board members
are not paid other fringe benefits. The members of the
Board of Directors are not included in Harvia’s short
or long-term incentive programs. The Board members
have not received any rewards from other Harvia
Group companies.
46Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Member
Monthly
remuneration
in total in 2025,
EUR
1)
Monthly
remuneration in
shares, EUR
2)
Monthly
remuneration in
pcs
3)
Monthly
remuneration in
cash, EUR
Remuneration for
Audit Committee
membership, EUR
Remuneration
for Personnel
and Remunera-
tion Committee
membership, EUR
Meeting fees,
EUR
4)
Remuneration
paid in financial
year 2025 in
total, EUR
Catharina
Stackelberg- Hammarén
Chair from 17 Nov.
Deputy Chair until 17 Nov. 55,625 16,612 351 39,013 4,000 59,625
Markus Lengauer,
Deputy Chair from 17 Nov. 36,750 36,750 4,200 1,800 42,750
Petri Castrén,
Member from 8 April 36,000 14,245 301 21,755 5,000 41,000
Anders Holmén 45,750 14,245 301 31,505 4,200 49,950
Hille Korhonen 45,750 14,245 301 31,505 4,400 50,150
Olli Liitola 45,750 14,245 301 31,505 3,600 49 350
Heiner Olbrich
Chair until 17 Nov. 57,000 57,000 5,000 2,700 64,700
Total 322,625 73,592 1,555 249,033 17,800 12,600 4,500 357,525
1) The monthly remuneration includes the payment for 1–4/2025 (the remuneration for the Board of Directors for the term 2024–2025 was paid fully in cash due to the insider project related to the ThermaSol acquisition in 2024)
and the remuneration for the term 2025–2026. In accordance with the decision of the Annual General Meeting 2025, 40% of the monthly remuneration for the term 2025–2026 is paid in Harvia Plc shares and 60% in cash.
Some members receive their monthly remuneration fully in cash for the term in question. For the members to whom their monthly remuneration is paid partly in Harvia shares, the share component was paid in full on
23 May 2025. For these members, the monthly remuneration includes the share purchase-related transfer tax that was paid by the company.
2) 40% of the monthly remuneration for the Board membership for the term beginning from the Annual General Meeting 2025 on 8 April 2025 and expiring at the end of the Annual General Meeting 2026.
3) The number of shares is based on the volume-weighted average price of the Harvia share on the Nasdaq Helsinki Ltd during 21 May 2025 (EUR 47.81 per share).
4) The members of the Board of Directors living outside Finland were paid EUR 900 per meeting if the member traveled to Finland only for that meeting.
REMUNERATION PAID TO THE BOARD OF DIRECTORS IN 2025
Due to the decision-making cycle, Board remuneration from 1 January 2025 until the
Annual General Meeting on 8 April 2025 was based on the decision made by the Annual
General Meeting 2024. For the term 2024−2025, the remuneration for the Board of
Directors was paid fully in cash due to the insider project related to the ThermaSol
acquisition at the time of the remuneration payment in 2024. From the Annual General
Meeting 2025 until 31 December 2025, the remuneration was based on the Annual
General Meeting 2025 decision.
In all, the members of the Board of Directors were paid EUR 357,525 (245,586) in 2025.
The total sum reflects the diering schedules and means for paying the remunerations
related to the 2024–2025 and 2025–2026 terms.
1)
47Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
SUMMARY OF CEO REMUNERATION COMPONENTS IN 2025
Remuneration component Description of remuneration
Fixed:
Salary Monthly salary including taxable benefits: car benefit and telephone benefit
Fixed:
Pension Statutory pension in Finland; no supplementary pension arrangement.
Variable:
Short-term incentive scheme
The purpose is to support the achievement of the company’s short-term financial and
strategic objectives. The performance period for the CEO’s short-term incentive scheme
is one year.
The payment of the bonus is based on achieving the target level for Harvia’s consolidated
adjusted operating profit and personal targets. If the criteria are met, the CEO may be
entitled to a reward with maximum vesting of 70% of the fixed annual salary.
Variable:
Long-term incentive scheme
The share-based long-term incentive scheme aims to support the implementation of the
company’s strategy, align the objectives of the CEO and the company’s shareholders
to increase the value of the company and improve the performance of the company,
and commit the CEO to the company. The performance periods are of minimum three
financial years. Maximum reward levels are 70% of the fixed annual salary at the target
with upper range of vesting at 140% of the fixed annual salary.
In 2025, the CEO was no longer part of the performance bonus covering the entire personnel
of Harvia’s companies inFinland. The bonus was converted into the base salary of the CEO.
CEO REMUNERATION IN 2025
The Board of Directors decides on the remuneration
of the CEO as well as on the key terms and conditions
of the CEO’s service. The target levels and maximum
levels of the variable remuneration-related measures
are based on the long-term strategic objectives
defined by the Board of Directors. The fulfilment
of the criteria supports the company’s long-term
financial success.
According to the Remuneration Policy 2025, the
remuneration of the CEO consists of a monthly salary
and other taxable benefits, and performance-based
incentive systems. The incentive systems consist of an
annual short-term performance incentive scheme and
a long-term share incentive scheme. The remuneration
of the CEO may also include a supplementary pension
arrangement and a severance payment. Also, the CEO
may possess a life insurance, a permanent disability
insurance, a private accident insurance, a business
travel insurance and a director’s liability insurance
provided by Harvia.
48Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
TOTAL COMPENSATION IN 2025
In 2025, CEO Matias Järnefelt was paid a total
remuneration of EUR 839,153 (580,776). Variable
remuneration constituted 32% (12%) of the overall
remuneration and fixed pay 68% (88%).
FIXED SALARY
CEO Matias Järnefelt’s monthly salary paid in 2025
totaled to EUR 566,545 (510,639) including taxable
benefits (car, telephone).
SHORT-TERM INCENTIVE SCHEME
In 2024, the bonus payable based on the short-term
incentive (STI) scheme could account for a maximum
of 50 percent of the CEO’s fixed salary including
benefits. In the STI performance period 2024, the
personal targets related to Harvia’s growth as well as
to developing the Group strategy, implementation of
the new operational model as well as the development
of the US business. The STI bonus was paid in March
2025.
In the financial year 2025, the CEO’s personal targets
were related to the success of the steam business,
development of the D2C channel in Continental
Europe, and developing the infrared strategy. The STI
bonus for the year 2025 will be paid in March 2026.
The STI bonus to the CEO for 2026 is based on the
criteria of the consolidated adjusted operating profit
and on three personal targets. The Board of Directors
has defined the maximum incentive to be 70% of the
fixed annual salary including benefits.
STI bonus criteria in 2024 Weight Performance outcome
1)
Consolidated adjusted operating profit 66.7% 66.7%
Personal targets 33.3% 29.5%
Total 100.0% 96.2%
Bonus payment for 2024 EUR 243,556
(paid in 2025)
1) Maximum incentive 50% of the fixed annual salary including benefits.
STI bonus criteria in 2025 Weight Performance outcome
1)
Consolidated adjusted operating profit 70.0% 37.3%
Personal targets 30.0% 16.7%
Total 100.0% 54.0%
Bonus payment for 2025 EUR 213,717
(to be paid in 2026)
1) Maximum incentive 70% of the fixed annual salary including benefits.
STI bonus criteria for 2026 Weight
Consolidated adjusted operating profit 70%
Personal targets 30%
Total 100.0%
49Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Performance
period Performance criteria and their weighting Payment date
The maximum number of shares
to be paid to the CEO, gross
The reward earned by the CEO
in relation to the maximum
The number of the gross
(net) shares earned by
the CEO
2022–2024
• Absolute TSR (50%)
• Organic revenue growth (35%)
• Reducing CO₂ emissions (15%)
26 March 2025 16,889
• 0 (Järnefelt not covered by
the performance period)
0
2023−2025
• Absolute TSR (50%)
• Organic revenue growth (35%)
• Reducing CO₂ emissions (15%)
Spring 2026 13,835 • 58.1% 8,032
2024−2026
• Absolute TSR (50%)
• Revenue growth (40%)
• Reducing CO₂ emissions (10%)
Spring 2027 11,893 • Ongoing performance period
2025–2027
• Absolute TSR (50%)
• Revenue growth (40%)
• Reducing CO₂ emissions (10%)
Spring 2028 11,894 • Ongoing performance period
LONG-TERM INCENTIVE SCHEME
For each performance period, the Board of Directors
separately decides the performance criteria and
related targets, as well as the minimum, target, and
maximum reward potentially payable based on target
attainment. The payment of rewards based on the
performance criterion concerning revenue growth
requires that Harvia achieves a certain EBIT margin in
the performance period.
If the targets of the plan are reached, rewards will be
paid during the spring following the end of the given
performance period. If the CEO’s service ends before
the payment of the reward, no reward would be paid
as a rule. The program has no commitment period
or terms and conditions associated with the number
of shareholdings.
The potential rewards paid through the incentive
program represent gross earning, from which the
withholding tax and possible other applicable
contributions are deducted, and the remaining net
amount is paid in shares. However, the company
has the right to pay the reward fully in cash under
certain circumstances.
50Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
THE KEY TERMS OF SERVICE OF THE CEO
The management contract of CEO Järnefelt is valid until
further notice. The CEO’s contract contains a mutual
six-month period of notice and a 12-month non-compete
period upon its termination.
If the company terminates the service contract, the
CEO is entitled to a severance payment corresponding
to six months’ basic salary. The CEO’s retirement age is
determined by the statutory pension system.
REMUNERATION PAID TO THE CEO IN 2025
Remuneration component EUR
Fixed monthly salary, in total
1)
566,545
Short-term incentives from 2024 243,556
Performance bonus from 2024 29,052
Total 839,153
1) Including taxable benefits (car and telephone benefit).
REMUNERATION TO BE PAID TO THE CEO IN 2026 BASED ON THE
2025 PERFORMANCE
Remuneration component
Short-term incentives from 2025, EUR 213,717
Long-term incentives 2023−2025, shares
1)
8,032
1) Gross value of the rewards. The CEO will be paid 8,032 shares (gross) on or about in March and the value
of the shares on the payment date will be based on the closing price of the company’s share on that date.
Withholding tax and possible other applicable contributions will be deducted from the gross earning and
the remaining net amount will be paid in shares.
51Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
REPORT BY THE
BOARD OF DIRECTORS AND
CONSOLIDATED FINANCIAL
STATEMENTS 2025
52Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
CONTENTS
CONSOLIDATED FINANCIAL STATEMENTS IFRS 133
Consolidated statement of comprehensive income 133
Consolidated statement of financial position 134
Consolidated statement of changes in equity 135
Consolidated statement of cash flows 136
Notes to the Financial Statements 137
Section 1: Basis Of Preparation 137
Section 2: Group Performance 140
Section 3: Capital Employed 148
Section 4: Net Working Capital 159
Section 5: Net Debt And Contingencies 163
Section 6: Other Notes 176
PARENT COMPANY FINANCIAL STATEMENTS FAS 187
Parent company Profit & Loss Statement 187
Parent company Balance Sheet 188
Parent company Cash flow statement 189
Notes to the financial statements
of the parent company 190
Proposal by the Board of Directors
for distribution of profit 198
Signatures for the Financial Statements, Sustainability
Statement and the Board of Directors’ report 199
Auditor’s Report
(Translation of the Finnish Original) 200
Auditor’s ESEF assurance report 204
Assurance report on the sustainability statement 206
This Annual Report is not an xHTML document compliant with the ESEF (European Single Electronic Format)
regulation. The Financial Statements and the Report of the Board of Directors 2025 in accordance with the
ESEF regulations are available at www.harviagroup.com.
REPORT BY THE BOARD OF DIRECTORS FOR 2025 54
Sustainability Statement 61
ESRS2 general disclosures 61
ESRS E1 Climate change 86
ESRS E5 Resource use and circular economy 100
Statement on eu taxonomy for sustainable
economic activities 107
ESRS G1 Business conduct 114
Share capital and shares 129
Calculation of key figures and reconciliation
of alternative performance measures 131
53Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Report by the Board of Directors for 2025
GENERAL INFORMATION OF HARVIA
Harvia is the global industry leader in sauna products.
Harvia has a comprehensive product offering that
strives to meet the needs of the global sauna
market, for industry professionals and consumers
alike. Harvia’s largest client groups are retailers and
wholesalers who sell Harvia products to builders and
end customers. Harvia’s product offering is divided
into five categories: heating equipment, saunas and
Scandinavian hot tubs, steam products, accessories
and heater stones, and spare parts and services.
Harvia’s headquarters are located in Muurame, Finland.
The group production facilities are located in Finland,
Germany, China, the United States, Romania and Italy.
Additionally, the group has companies specialized in
sales and customer service in Austria, Hong Kong, and
Japan, and a branch office in Sweden. Harvia’s products
are distributed globally through a network of dealers.
PROFIT PERFORMANCE, KEY FIGURES AND
STATEMENT OF FINANCIAL POSITION
Harvia’s key figures for the period 1 January – 31
December 2025 are presented below (EUR thousand,
unless otherwise indicated).
2025 2024 2023
Key statement of comprehensive income indicators
Revenue 198,900 175,206 150,547
EBITDA 45,748 42,455 39,298
EBITDA margin, percent 23.0% 24.2% 26.1%
Adjusted EBITDA 46,511 44,060 39,924
Adjusted EBITDA margin, percent 23.4% 25.1% 26.5%
Operating profit 38,301 35,486 33,044
Operating profit margin, percent 19.3% 20.3% 21.9%
Adjusted operating profit 39,064 37,100 33,670
Adjusted operating profit margin, percent 19.6% 21.2% 22.4%
Basic EPS (EUR) 1.41 1.30 1.25
Diluted EPS (EUR) 1.40 1.29 1.24
Key cash flow indicators
Cash flow from operating activities 34,957 31,668 39,139
Operating free cash flow 26,492 35,003 44,601
Cash conversion, percent 57.0% 79.4% 111.7%
Investments in tangible and intangible assets -14,771 -6,149 -3,124
Financial position key figures
Net debt 57,726 57,216 37,569
Net debt / adjusted EBITDA (Leverage), percent 1.2 1.3 0.9
Net working capital 47,879 44,955 36,132
Capital employed excluding goodwill, average 94,638 81,539 76,129
Capital employed excluding goodwill at the end of period 99,020 90,255 72,823
Adjusted return on capital employed (ROCE), percent 41.3% 45.5% 54.5%
Equity ratio, percent 48.3% 47.2% 47.3%
Return on equity (ROE), percent 20.7% 20.8% 30.8%
54Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
The Group’s revenue increased in January–December
by 13.5% to EUR 198.9 million (175.2), driven especially
by growth in North America. At comparable exchange
rates, revenue increased by 16.0% to EUR 203.3 million.
During the period, revenue increased in all sales
regions, with significant growth in APAC & MEA and
North America. Growth in the APAC & MEA region
was driven by multiple key markets, such as China
and Japan. Sales in Continental Europe and Northern
Europe grew moderately. In Continental Europe,
gradually improving market conditions supported sales
throughout the year, while in Northern Europe, Harvia’s
sales performance improved especially during the
second half of the year and in Finland.
Harvia’s revenue increased in all product groups. The
significant growth in steam products was primarily
driven by the acquisition of ThermaSol in 2024, with
increased sales in Continental Europe also contributing
to the revenue to a lesser extent. During the review
period, the demand for heating equipment grew
in most regions, with significant increase in North
America.
Operating profit for January–December increased
to EUR 38.3 million (35.5), while the operating profit
margin was 19.3% (20.3%). The operating profit
included EUR -0.8 million (-1.6) of items affecting
comparability, mainly related to business transactions
and restructuring. Changes in exchange rates
weakened the operating profit by approximately EUR
4.4 million, caused mainly by the value changes of the
U.S. dollar.
Adjusted operating profit increased to EUR 39.1
million (37.1) and the adjusted operating profit margin
was 19.6% (21.2%). Net financial items for January–
December were EUR -5.1 million (-3.6).
Profit before taxes was EUR 33.2 million (31.9). The
Group’s taxes amounted to EUR 6.8 million (7.6).
The net result for January-December was EUR 26.4
million (24.2) and undiluted earnings per share were
EUR 1.41 (1.30).
The Group’s investments in January-December 2025
were EUR 14.8 million (6.1). During 2025, Harvia
made significant investments in its IT infrastructure
especially in the United States. In addition, the
company continued investing in its facilities in multiple
sites, including a production layout change in the
Muurame factory and work to expand the facility in
the Lewisburg, West Virginia. In the U.S., Harvia also
sold its former production site and the surrounding
land area in Renick, West Virginia that had previously
been used for production purposes. Harvia invested
in a new state-of-the art coating system in Germany
to increase operational reliability and to support
production capacity. The large-scale investment
ensures the quality of products, increases flexibility
in the production process, and makes an important
contribution to energy efficiency. The ongoing
investments are part of continued efforts to support
Harvia’s long-term growth, operational efficiency, and
competitiveness.
PERSONNEL
The number of personnel employed by the Group
at the end of December 2025 was 735 (696) and
averaged 733 (661) in January–December. Of the
personnel at the end of December, 260 (255) worked
in Finland, 158 (145) in the United States, 141 (125) in
Germany, 61 (61) in Romania, 57 (56) in China and
Hong Kong, 40 (34) in Austria, 16 (12) in Italy, 0 (6) in
Estonia and 2 (2) in Sweden. In 2025, Harvia sold its
business operations in Estonia, and in connection with
the transaction, the employees were transferred to the
new owner.
Personnel expenses totaled EUR 42,029 thousand
(EUR 35,213 thousand) in 2025, of which wages,
salaries and remuneration amounted to EUR 35,979
thousand (EUR 29,913 thousand).
RESEARCH AND PRODUCT DEVELOPMENT
In 2025, Harvia introduced a concept for the
world’s first hydrogen sauna that the company has
developed in co-operation with Japanese automotive
manufacturer Toyota. Harvia also introduced two
new innovations designed to make sauna control
intuitive, modern, and future-ready: the Harvia Fenix
control panel and MyHarvia mobile app. The smart
and updated MyHarvia sauna app complements the
panel with remote control capabilities, usage statistics,
and maintenance notifications, while the Harvia Fenix
control panel learns how heaters perform and uses
that data to optimize heating times.
Harvia’s research and development activities build on
the company’s four strategic priorities: 1. Delivering
the full sauna experience; 2. Winning in strategically
important markets; 3. Leading in key channels and
4. Best-in-class operations and great people. The
company aims at launching new products and
solutions especially in the sauna category, expanding
the company’s portfolio especially outside Europe
and strengthening the company’s digital capabilities.
In addition, the company focused on increasing
automation and improving efficiency throughout its
55Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
operations and ensuring its operations support the
long-term growth of the company.
During 1 January – 31 December 2025, there were
on average 27 employees working in research and
development. The Group’s research and development
expenditure amounted to EUR 3.8 million (EUR 2.2
million in 2024), of which EUR 2.1 million (EUR 1.8
million in 2024) were recognized as expenses.
ASSESSMENT OF THE MOST SIGNIFICANT
RISKS AND UNCERTAINTIES
Harvia’s business is exposed to several risks and
uncertainties. This is partly a result of the company’s
global presence and supply chain network, even
though these factors also help Harvia to recognize
and actively mitigate its risks. Harvia is familiar with
operating successfully in an environment shaped by
changing market conditions and risks, but the full
impact of all changes in different markets is difficult to
foresee, as situations often develop fast and are hard
to fully predict.
General economic, social and political conditions
impact Harvia’s operating environment. Economic
uncertainty and rapid developments in Finland,
Europe, North America or more widely across the
globe can affect the company’s business in many
ways and make accurate predictions and planning
of future business more difficult than usual. Changes
in consumer confidence and the resulting demand
implications directly impact Harvia’s business.
Especially in the direct-to-consumer market,
deteriorating consumer confidence can result in
individual consumers postponing investments in
new saunas and components, and to a lesser extent,
in postponed replacement demand. In addition, the
availability of energy and energy prices may impact
consumer confidence and the frequency of sauna
usage.
Geopolitical events and uncertainties can affect Harvia
either directly or indirectly through, for example,
deteriorating market conditions. A notable example
of this is the Russian invasion of Ukraine in February
2022, after which Harvia suspended its operations in
Russia in March 2022 and later completed its exit from
the market. The indirect impacts of the invasion have
related especially to decreased economic growth and
caution in consumers’ discretionary spending across
Europe. Developments related to the war in Ukraine
as well as other geopolitical developments around the
world can affect Harvia also in the future.
Geopolitical tensions often give rise to or are fueled by
tightening trade policies, including increasing tariffs
and other hindrances of international trade. When
involving Harvia’s key countries, such as members of
the European Union or the United States, tariffs may
have an impact on Harvia, either directly or through
weakening general market conditions. In 2025, the
tensions in international trade and tariffs between the
United States and several of its key trade partners
increased, and the overall predictability of trade
policies decreased significantly. The high pace of
changes and significant uncertainty in trade policies
and global economy in general may continue to affect
both the sauna market and Harvia, and developments
in the area can be very rapid and difficult to foresee.
Harvia’s advantage in the United States is that
around 70% of the end products it sells there
are manufactured domestically, which reduces
the company’s exposure to U.S. tariffs, especially
compared to many of its key competitors. Harvia can
also shift production between its factories as well
as change its suppliers for many key materials and
components. During 2025, the company carried out
actions in its supply chain to mitigate potential future
impacts, including increasing the readiness to move
some production from China to Finland. Harvia actively
monitors the developments related to the situation and
can usually react to changes in an agile manner, but
the very high unpredictability and speed of changes
may occasionally cause challenges for the company to
react and fully mitigate the potential negative impacts.
Further deteriorating consumer confidence in the
United States and high uncertainty in tariff policies
may have a negative impact on consumers’ buying
behavior and make U.S. B2B customers more hesitant
to place orders that may become subject to significant
tariffs. During the very high tariff uncertainty that took
place especially in the second quarter of 2025, this
type of negative impact on customer demand was
witnessed.
Overall, the self-sufficiency of the Group’s
manufacturing process, the backup supplier system
for materials and the widely dispersed customer
base balance potential strategic risks. Production is
based on the company’s own design and patents,
and these are used to manage potential operational
risks. Damage risks are covered with insurance where
possible, and their coverage is assessed annually
together with the insurance company. However,
disruptions in Harvia’s global supply chain or logistics
network as well as significant strikes and other
industrial actions in key countries, such as Finland, can
have a negative impact on the company’s business.
The increase in cyber threats worldwide alongside the
growing dependency on digital infrastructure cause
risks to Harvia’s business and its critical data. The
56Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
impacts of these risks can occur either directly by
disrupting or endangering Harvia’s daily operations
or compromising data or indirectly through
attacking Harvia’s suppliers or customers, and thus
can potentially result in financial, operational or
reputational damage to the company. The company
continuously takes actions to prepare for these risks
by protecting its digital infrastructure, operations
and people against them. In addition to having
various technical solutions, the company focuses on
training its personnel to recognize potential threats
and to mitigate cyber risks with their own actions.
Harvia has business operations in several countries
and is exposed to transaction and translation
risks. These risks relate mostly to the U.S. dollar,
where the exchange rate changes can affect the
company either positively or negatively. Harvia has
not protected itself from these risks with currency
derivatives. The Group’s loans consist of long-term
liabilities. The loans include covenants, which in
unfavorable business conditions may require new
financing negotiations with the bank. The company
protects itself from interest risks arising from bank
loans with interest rate swaps amounting to EUR
56.5 million.
DERIVATIVES
The Group uses derivative financial instruments
such as interest rate swaps to hedge its risks
associated with interest rate fluctuations. The fair
value of the interest rate swap fluctuates according
to interest rate market expectations. Derivative
financial instruments are initially recognized at fair
value on the date a derivative contract is entered
into and subsequently measured per contract at
their fair value through profit or loss, if they do
not qualify for hedge accounting. If a derivative is
designated as a hedging instrument, its fair value
is recognized in the balance sheet in the fair value
reserve.
Harvia is exposed to interest rate risk in the floating
interest rate payments on loans drawn under the
Loan Facility agreements. The interest rate risk is
that the future cash flows will fluctuate because of
changes in market interest rates. Harvia protects this
cash flow from interest rate risk by using hedges.
The objective is to minimize the effect of interest
rate fluctuations on the Group’s annual result and
manage exposure to interest rate risk.
The nature of the risk being hedged is the interest
rate risk relating to cash flows from the increase and
variability in 1-month Euribor. This hedge is classified
as a cash flow hedge, and it is categorized under
Level 2 of the fair value hierarchy.
There is an economic relationship between the
hedged item and the hedging instrument: The loan
interest payments are linked to 1-month Euribor and
derivative payments received are linked to 1-month
Euribor. The interest rate setting for both hedging
instrument and the hedged item are defined on the
same date.
The effect of credit risk does not dominate the value
changes that result from that economic relationship.
A condition for applying hedge accounting is that
the effect of credit risk does not dominate the value
changes that result from the economic relationship
that is the subject of the hedge. Standard & Poor’s
long-term rating for the derivative counterparty
Danske Bank is AA-. The credit risk is considered low
and does not dominate the hedge relationship.
The hedge ratio of the hedging relationship is the
same as that resulting from the quantity of the
hedged item that the entity hedges and the quantity
of the hedging instrument that the entity uses to
hedge that quantity of hedged item. The hedge ratio
is 1:1. Prospectively the hedged item and the hedge
instruments have terms and conditions that meet the
1:1 ratio. Harvia evaluates qualitatively each quarter
that the conditions have not changed.
The Group had interest rate swap agreements with
fair value of EUR 468 thousand and EUR -13 thousand
at the end of 2025 (2024: EUR 982 thousand and -4
thousand). Changes in the fair value of the swap have
no impact on cash flow. Nominal values of the interest
rate swap contracts were EUR 36,500 thousand and
EUR 20,000 thousand as of 31 December 2025 (2024:
EUR 36,500 thousand and 20,000 thousand). The
interest rate swap contracts mature on 15 December
2026 and 22 July 2027.
GROUP STRUCTURE
Harvia Plc is a holding company and the parent
company of the Harvia Group. Harvia Plc owns all
Harvia subsidiaries and subgroups through Harvia
Group Oy. Harvia Finland Oy is a subsidiary of Harvia
Group Oy that manufactures heaters, saunas and
sauna products. Harvia Finland Oy owns the subgroup
Harvia (HK) Sauna Co. Ltd subgroup and the non-
operative LLC Harvia RUS and Harvia Estonia ОÜ,
as well as Sauna-Eurox Oy and Phoenix El-Mec Srl.
The Harvia Austria Group is another subgroup of
Harvia Group Oy that specializes in control units,
sauna rooms and sauna heaters. In 2018, Harvia
Group Oy established the subgroup Harvia US
Holdings Inc. in the United States, which owns the
operating company Harvia US Inc. Harvia Group Oy
57Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
owns Scandinavian hot tub manufacturer Kirami
Oy. In addition, Harvia Group Oy owns 100% of EOS
Group in Germany, which manufactures premium
quality heaters and other sauna products, and 51% of
Harvia Japan Limited that imports and sells Harvia’s
products to local dealers. In 2024, Harvia established
the ThermaSol subgroup, which owns the operating
company ThermaSol Steam Bath LLC. ThermaSol
Steam Bath LLC is a leading manufacturer of high-end
steam showers and steam rooms in the United States
while Harvia US manufactures sauna products and
sells Harvia brand products to local dealers.
RECENT CHANGES IN GROUP STRUCTURE
In 2025 Harvia sold its business operations in Estonia
and its 60% ownership interest in a sales company,
Kirami Sweden AB. Harvia also simplified its group
structure by merging Parhaat Löylyt Oy into Sauna-
Eurox Oy at the year-end.
ANNUAL GENERAL MEETING
Harvia Plc’s Annual General Meeting, held on 8
April 2025, approved the financial statements and
discharged the members of the Board of Directors
and the company’s CEO from liability for the financial
year 2024. The Annual General Meeting approved
in an advisory decision the remuneration report for
governing bodies and the revised remuneration policy
for the company’s governing bodies.
The Annual General Meeting approved the Board
of Directors’ proposal that EUR 0.75 per share be
paid as dividend and that the remainder of the
distributable funds be transferred to shareholders’
equity. The dividend is paid in two instalments. The
first instalment, EUR 0.38 per share, was paid to
shareholders who were registered in the shareholders’
register maintained by Euroclear Finland Ltd on the
record date of the dividend of 10 April 2025. This
instalment of the dividend was paid on 17 April 2025.
The second instalment, EUR 0.37 per share, was paid
in October 2025. The record date of the dividend date
was 21 October 2025 and the dividend payment date 28
October 2025.
In accordance with the proposal of the Board of
Directors, the Annual General Meeting resolved to
amend 5 § of the Articles of Association so that the
maximum number of members of the Board of Directors
is increased from six to seven.
The Annual General Meeting resolved that the Board of
Directors consists of seven members. Heiner Olbrich,
Catharina Stackelberg-Hammarén, Anders Holmén,
Hille Korhonen, Markus Lengauer and Olli Liitola were
re-elected to the Board of Directors and Petri Castrén
was elected as a new member. Authorized Public
Accounting firm Deloitte Oy was elected as the Auditor
of the company and Authorized Public Accountant
Johan Groop will act as the Responsible Auditor. The
sustainability audit firm Deloitte Oy was elected as the
company’s authorized sustainability assurer for a term
that lasts until the end of the company’s next Annual
General Meeting. Johan Groop, ASA, APA will act as the
authorized sustainability auditor.
The Board of Directors was authorized to resolve on
the repurchase of a maximum of 934,711 shares in the
company in one or several tranches. The maximum
number of shares to be repurchased represents
approximately 5% of all the shares in the company
on the date of the Annual General Meeting. The
authorization may be used e.g. for the purposes of
the company’s share-based incentive systems, for the
purposes of board compensation and other matters
decided by the Board of Directors. In addition, the
Board of Directors was authorized to decide on the
issue of shares, options and other special rights entitling
to shares. The aggregate number of shares to be
issued, including the shares to be received based on
special rights, must not exceed 1,869,423 shares. The
authorization entitles the Board of Directors to decide
on all other matters related to the issuance of shares
and special rights entitling to shares, including the right
to deviate from the pre-emptive right of shareholders to
subscribe to shares to be issued. The authorization may
be used for the purpose of strengthening the balance
sheet and financing position of the company, for the
purposes of board compensation or for other purposes
decided by the Board of Directors. Both authorizations
are valid until the closing of the next Annual General
Meeting, but no longer than until 30 June 2026.
BOARD OF DIRECTORS’ ORGANIZATIONAL
MEETING
Heiner Olbrich was elected the Chair and Catharina
Stackelberg-Hammarén was elected the Vice Chair
of the Board of Directors at the Board of Directors’
organizational meeting on 8 April 2025. The Board of
Directors elected from among its members Petri Castrén
(Chair), Hille Korhonen, Anders Holmén and Markus
Lengauer as members of the Audit Committee. The
Board of Directors elected from among its members
Heiner Olbrich (Chair), Olli Liitola and Catharina
Stackelberg-Hammarén as members of the Personnel
and Remuneration Committee.
The full resolutions by the Annual General Meeting as
well as the decisions by the organizational meeting
of the Board of Directors were published in stock
exchange releases on 8 April 2025.
58Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
SHAREBASED INCENTIVE PLAN
Harvia has a share-based long-term incentive plan for
the CEO, the Management Team members and some
other key employees. The plan forms a part of Harvia
Plc’s remuneration program for its executives, and
the aim of the plan is to support the implementation
of the company’s strategy, to align the interests of
the executives with interests of the shareholders
to increase the value of the company, to improve
the performance of the company, and to retain the
executives.
The long-term incentive plan consists of three
performance periods of three calendar years each:
2023–2025, 2024–2026 and 2025–2027. During 2025
Harvia paid out the rewards regarding the performance
period 2022–2024. The Board of Directors decides
separately for each performance period the plan
participants, performance criteria, and related targets,
as well as the minimum, target, and maximum reward
potentially payable based on target attainment.
On 10 March 2025, The Board of Directors of Harvia
Plc decided to continue the Long-term Performance
Share Plan for the management team and other key
employees for the performance period 2025–2027.
In the performance period 2025–2027, the plan
has 34 participants at most and the targets for the
performance period relate to the company’s total
shareholder return, revenue growth, EBIT margin
and CO2 emissions. The number of shares to be paid
based on the performance period 2025–2027 is a
maximum of 79,100 Harvia Plc’s shares. This number
of shares represents the gross earnings, from which
the withholding of tax and possible other applicable
contributions are deducted, and the remaining net
amount is paid in shares. However, the company
has the right to pay the reward fully in cash under
certain circumstances. Potential rewards from the
performance period 2025–2027 will be paid out
during spring 2028.
BOARD OF DIRECTORS PROPOSAL
FOR DISTRIBUTION OF PROFIT
Harvia Plc’s total unrestricted equity amounts to EUR
78,653,392.73 in total, of which profit for the period
accounts for EUR 11,553,096.02. Harvia aims to pay a
regularly increasing dividend with a bi-annual payout.
In order to determine the amount of dividend, the
Board of Directors has assessed the company’s
solvency and financial standing after the end of the
period.
Harvia’s Board of Directors proposes to the Annual
General Meeting that the company distributes
a dividend of EUR 0.77 (0.75) per share, EUR
14,394,561.72 in total, for the financial period ended
31 December 2025. The Board of Directors proposes
the dividend to be paid in two instalments, EUR 0.39
per share in April 2026 and EUR 0.38 per share in
October 2026.
THE COMPANY'S ORGANIZATION,
MANAGEMENT AND AUDITORS
The Board of Directors of Harvia Plc comprised
the following members: Olli Liitola, Hille Korhonen,
Anders Holmén, Heiner Olbrich, Markus Lengauer,
Catharina Stackelberg-Hammarén and Petri Castrén.
Heiner Olbrich served as the Chair of the Board
until 17 November 2025, and Catharina Stackelberg-
Hammarén as of 17 November 2025, while Matias
Järnefelt held the position of Chief Executive Officer.
The company’s auditor was Deloitte Oy, with Johan
Groop, APA, as the responsible auditor.
The members of the group management team were
Matias Järnefelt, CEO; Ari Vesterinen, CFO; David
Ahonen, Head of Region Asia Pacific, Middle East
and Africa; Timo Harvia, Head of Innovation and
Technology; Päivi Juolahti, Head of Marketing and
Brand; Anssi Pelkonen, Head of Region Northern
Europe; Mika Suoja, Head of Operations; Markus
Wörmanseder; Head of Products and Solutions, Head
of Region Continental Europe Ivan Sabato (as of 1
April 2025); Jennifer Thayer, Head of Region North
America. (until 30 May 2025), interim Head of Region
North America Nick Larrick (as of 1 June 2025 until
30 October 2025); Head of Region North America
Nathan Hagemeier (as of 1 November 2025), and
Philipp Krauth, Managing Director of EOS Group.
CHANGES IN MANAGEMENT AND ORGANIZATION
On 1 April 2025, Ivan Sabato started in his position as
Head of Region, Continental Europe, and as a member
of Harvia’s Management Team. He was appointed to the
position on 19 December 2024.
On 16 May 2025, Harvia announced the resignation
of Jennifer Thayer, Head of Region, North America
and President of Harvia US Inc. Thayer continued
in her position until 30 May 2025. Nick Larrick, Vice
President of Operations at Harvia North America,
served as Interim Head of Region, North America, and
as an interim member of Harvia’s Management Team
between 1 June – 30 October 2025.
On 27 October 2025, Harvia appointed Nathan
Hagemeier as Head of Region, North America
and President of Harvia US Inc., and a member of
the management team of Harvia Group, effective
immediately. In his role, Hagemeier is responsible for
leading the North American commercial organization
59Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
and driving the sustainable growth of Harvia’s business
in the region. He reports to the CEO Matias Järnefelt.
On 17 November 2025, Harvia announced the
resignation of the Chair of the Board, Heiner Olbrich,
as Chair. In its meeting on 17 November 2025, the
Board of Directors of Harvia Plc elected from among
its members the Deputy Chair Catharina Stackelberg-
Hammarén as the Chair of the Board. Olbrich will
continue to serve as a member of the Board until the
end of its current term.
SHAREHOLDERS’ NOMINATION BOARD
On 8 September 2025, Harvia announced the
composition of the Shareholders’ Nomination Board,
which is comprised of representatives appointed
by the company’s four largest shareholders. Josefin
Degerholm, Janne Kujala, Juho Lipsanen and
Timo Harvia were appointed to the Shareholders’
Nomination Board. In addition, Heiner Olbrich, the
Chairman of the Board of Directors of Harvia, serves
as an expert in the Nomination Board without being
a member. The now appointed Nomination Board will
forward its proposals for the 2026 Annual General
Meeting to the Board of Directors by 31 January 2026.
OUTLOOK FOR FUTURE
According to Harvia management’s estimate, the
global sauna market is close to EUR 4 billion in value
and there are over 18 million saunas in the world.
The total market value is driven by both the growing
installed base of saunas as well as the significant
aftermarket for saunas and sauna heaters. Over half of
the global installed base are in the few largest sauna
markets: Finland, Germany, Russia, and the United
States. Traditional saunas make up most of the sauna
market globally and especially in Europe, whereas
infrared and steam saunas form a significant part of
the market especially in North America and Asia.
Historically, the sauna market has grown annually by
an average of 5% and has witnessed some seasonality
with slightly stronger demand in the early and
late part of the year and lower demand during the
summer months. However, the market growth and
seasonality have varied over time and by region.
Harvia’s management estimates that during the next 5
years, the global sauna market will grow faster than its
historical average annual rate of 5%, supported by the
increasing awareness of sauna and its health benefits.
In the short term, market growth can be impacted by
developments in macroeconomic conditions, trade
policies, and geopolitical tensions.
According to the management’s estimate, Harvia’s
share of the sauna market has increased during the
last few years. This development was estimated to
have continued also in 2025. In 2025, Harvia’s share
of the sauna market was estimated to have exceeded
5%. The company’s share of the sauna heater and
sauna component market is estimated to be clearly
over 20%. The company’s management estimates that
Harvia has the leading position in the global sauna
market.
SIGNIFICANT EVENTS AFTER
THE REVIEW PERIOD
On 20 January 2026, Harvia announced that it had
received a notification pursuant to Chapter 9, section
5 of the Securities Markets Act, according to which the
total holding of SEB Funds AB (Stockholm, Sweden)
in Harvia Plc shares and votes had fallen below five
percent on 19 January 2026 and was 4.34%.
On 30 January 2026, Harvia published the proposals
by the Shareholders’ Nomination Board to the Annual
General Meeting, planned to be held on 15 April 2026.
The Nomination Board proposes that the number of
members of the Board of Directors shall be seven.
The Nomination Board also proposes that the current
members Catharina Stackelberg-Hammarén, Petri
Castrén, Anders Holmén, Hille Korhonen, Markus
Lengauer and Olli Liitola be re-elected to the Board of
Directors. In addition, the Nomination Board proposes
that Martin Richter be elected as a new member to
the Board of Directors. The Nomination Board also
proposes changes to the monthly remuneration
and meeting fees of the members of the Board of
Directors.
60Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Sustainability Statement
ESRS2 GENERAL DISCLOSURES
In this Sustainability Statement, Harvia Group is
reporting according to the European Union Corporate
Sustainability Reporting Directive (CSRD) and
the underlying European Sustainability Reporting
Standards (ESRS). The reporting requirements provide
a structured framework for identifying, assessing and
managing sustainability-related impacts, risks, and
opportunities. Harvia has adopted these standards
and is committed to continuously improving its
sustainability practices and reporting. This statement
reflects Harvia’s current progress and approach to
integrating sustainability into business operations.
General basis for preparation
Harvia Plc (Harvia), a parent company, has prepared
this Sustainability Statement on consolidated basis for
all Harvia Group companies. The list of companies is
presented in Harvia Group’s Financial Statements in
note 6.1 Group structure and consolidation.
The reporting period and the scope of consolidation
are the same as for the consolidated Financial
Statements of Harvia Group and apply from 1 January
to 31 December 2025.
This sustainability statement has been prepared in
accordance with sustainability reporting directive
and the European Sustainability Reporting Standards.
This statement does not cover the tagging of the
Harvia’s Sustainability Statement with digital XBRL
sustainability tags under Chapter 7, Section 22,
Paragraph 1, Item 2 of the Accounting Act, as it has
not been possible for the sustainability reporting
companies to comply with this provision due to the
absence of the ESEF Regulation or other European
Union legislation.
The comparative information prior to 2024 presented
in the 2025 sustainability statement has not been
externally assured and this comparative information
isnot in the scope of the 2025 limited assurance.
The figures presented in the sustainability statement
are rounded and therefore the sum of individual
figures may differ from the presented sum figure.
REPORTING SCOPE
The disclosed sustainability matters are based on
Harvia Group’s double materiality assessment. In
general, this sustainability statement covers the entire
Harvia Group and its value chain where applicable
and material.
Harvia assessed its material impacts, risks and
opportunities through its direct and indirect business
relationships in its upstream and downstream value
chain as part of the double materiality assessment and
the supplementing impacts, risks and opportunities
assessment (IRO assessment) performed. The
concentration of impacts, risks and opportunities to
Harvia’s own operations as well as its upstream and
downstream value chain has been presented in the
table set out in section Material impacts, risks and
opportunities of this Sustainability Statement. Harvia’s
assessment of impacts, risks and opportunities in
respect of its upstream and downstream value chain
is based on information available in-house, such as
information received from long-term customers,
partner and supplier relationships and experience,
publicly available information, and surveys and
interviews conducted with stakeholders.
Harvia’s upstream value chain encompasses supplier
and partner operations, including raw material
acquisitions, while its downstream value chain
includes business-to-business customers and partners,
consumers, end-users, and communities.
Harvia has not used the option to omit a specific piece
of information corresponding to intellectual property,
know-how or the results of innovation or impending
developments or matters in the course of negotiations.
SPECIFIC REPORTING CIRCUMSTANCES
Time-horizons
In this statement, Harvia has used short-, medium- and
long-term time-horizons. Short-term reporting period
refers to a period of less than one year. Medium-term
reporting period refers to a period starting from
the end of the short-term reporting period to up to
five years, and long-term reporting period refers to
a period of more than five years.The selected time
horizons correspond to the typical planning horizons
used in the company: less than 1 year is covered by
61Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
annual plans and budgets; up to 5 years by medium-
and long-term plans; and more than 5 years represents
a strategic outlook where detailed plans are rarely
defined.
Data estimates
For calculating greenhouse gas (GHG) emissions
and energy consumption, location-based estimates
have been used for those group companies for which
market-based data is not available. These units are
Harvia Japan, Harvia US, Phoenix El-Mec and Harvia
Estonia. The calculations where location-based data
have been used are the 2021–2025 emission–free
electricity share, the 2025 scope 2 electricity emissions
and the 2024 and 2025 energy consumption and
energy mix data. The margin for error for energy
mix and emissions data from the Climate Database
Initiative is ±5%. The data provided is based on data
and statistics that seem reliable, but for example local
variance within a country may occur.
For metrics regarding waste data, product recyclability
and expected product durability in the ESRS E5
Resource use and circular economy, value chain data
estimations have been used due to incomplete primary
data or lack of industry averages. This data was
estimated mainly using management’s expertise and
data from public sources. More detailed description
of the calculation methodologies and assumptions
used are described under chapter E5 Resource use
and circular economy in section Resource outflow. The
margin for errors for the waste data is estimated to
be ±5% as there are not many variables involved: Bin
size and frequency of emptying are known. The only
variable is the filling rate of the bin, which is estimated
to have very little variance. For the recyclability,
the margin for error is estimated to be ±10%, due
to varying practices in different locations. For the
expected product durability, the margin for error
is estimated to be ±10% as the use environment
and how the product is used vary. Harvia seeks to
improve the data accuracy over time through supplier
engagement.
References used
In this sustainability statement, references have been
made to the information presented in the Financial
Statements. Below is a list of the referenced data and
the corresponding data points:
The revenue and its accounting policy in Note 2.1
Revenue in the Financial Statements. Data points
ESRS2 SBM-1, 40 a and 40 b, E1-5 40, E1-6 53 & 55,
E1-6 AR 55 and E5-5 35.
Intangible assets and its accounting policy in Note
3.2 Intangible assets and impairment testing and for
tangible assets. Data points ESRS 2 MDR-A 69 b and
ESRS E1-3 29 c i.
Use of phase-in provisions
According to the consolidated balance sheet
of Harvia Group for the financial year ended at
31 December 2025, the average number of 750
employees during the financial year was not
exceeded and thus, Harvia Group omits information
required under the ESRS S1 Own workforce, ESRS S2,
Workers in the value chain and ESRS S4 Consumers
and end-users.
Harvia Group has assessed such topical standards
to be material in the double materiality assessment
conducted and, on the provision of the phase-in,
provides only limited disclosures regarding these
material topics. The impacts, risks and opportunities
of these topics and their targets are presented
together with all material topics in the section Material
impacts, risks and opportunities of this General
Disclosures chapter.
Governance
ADMINISTRATIVE, MANAGEMENT AND
SUPERVISORY BODIES
The administrative, management and supervisory
bodies of the Harvia Group are the following:
the Annual General Meeting, the Shareholders’
Nomination Board, the Board of Directors including
its Audit Committee and Personnel and Remuneration
Committee, the Group Chief Executive Officer (CEO),
and the Group Management Team.
The Annual General Meeting is the highest decision-
making body of Harvia Plc. The Board of Directors,
elected annually by the Annual General Meeting,
exercises the highest decision-making power in the
Harvia Group between the Annual General Meetings.
The CEO of the Group, elected by the Board of
Directors, manages the company's operations
supported by the Group Management Team.
The Shareholders’ Nomination Board
The Shareholders’ Nomination Board prepares
proposals concerning the election and remuneration
of the Board Members as well as the remuneration of
the members of the various Board committees.
Board of Directors of Harvia Plc
Harvia’s Board of Directors holds the ultimate
responsibility for sustainability. It evaluates ESG
activities and risks, and approves the Sustainability
62Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Committee until 16 of November and Hille Korhonen
and Markus Lengauer as members and Petri Castrén
as Chair of the Audit Committee since 17 of November.
The audit committee is responsible for monitoring
and assessment of sustainability reporting and its
effectiveness.
Audit Committee
The Audit Committee monitors the effectiveness
of internal controls, risk management systems, and
statutory audits. Crucially, it oversees corporate
responsibility and sustainability reporting processes,
including monitoring the effectiveness, preparing for
sustainability report verification, and handling general
corporate responsibility matters. The Audit Committee
functions as a preparatory body for the Board.
Sustainability-related risks are regularly handled by
the Audit Committee as part of the risk management
protocol. The topics are proposed by the management
based on their continuous risk evaluations. The topics
vary and can concern e.g., cyber risks or product
liability issues. Impacts and opportunities are handled
at least annually, but also as needed.
Personnel and Remuneration Committee
The Personnel and Remuneration Committee assists
the Board by preparing remuneration and appointment
matters for the CEO and senior management, including
key principles and practices related to personnel
remuneration, ensuring alignment with sustainability
objectives where applicable.
CEO and the Management Team
The CEO is responsible for the day-to-day
management and implementation of Board-
approved targets, plans, and guidelines, including
the Sustainability Program. The Management Team
supports the CEO in the development and operational
management of the Group, defining operating
principles and procedures in line with Board direction.
They are responsible for implementing the Code of
Conduct and Supplier Code of Conduct and report to
the Board on the Sustainability Program’s progress.
When necessary, the Group Management Team
proposes updates and revisions to the Sustainability
Program and sustainability targets to the Board of
Directors of Harvia Plc.
The Management Team convenes monthly and when
needed and focuses on strategic questions concerning
the Group and its businesses. Questions concerning
financial development, governance, corporate
responsibility and development projects are regularly
on the agenda. The CEO acts as the chairperson of the
Group’s Management Team.
Sustainability Steering Group
The Sustainability Steering Group manages Harvia
Group’s strategic sustainability work and oversees its
implementation across business areas. It evaluates
amendments to strategic direction, goal setting, and
new policies, which are then approved by the Board.
The group tracks implementation and progress,
reporting to the Group Management Team.
The duties and responsibilities for sustainability are
formalized within Harvia’s group-wide Sustainability
Policy and the Audit Committee Charter. Management
proposes sustainability-related risk topics based
on continuous evaluations, and the Board oversees
the setting and monitoring of progress towards
sustainability targets.
Policy, Code of Conduct, the Group’s long- and short-
term remuneration schemes, and the Sustainability
Program and its targets. The Board also reviews and
approves the annual Double Materiality Assessment
(DMA) and IRO assessment (last approved 5
November 2025). The Board of Directors assesses
its operations and ways of working annually as an
internal self-assessment.
The Board of Directors of Harvia Plc consists of
seven (six in 2024) non-executive members. As of 31
December 2025, the Board comprised two (two in
2024) female members (28.6%, 33.3% in 2024) and
five (four in 2024) male members (71.4%, 66.7% in
2024), resulting in a gender diversity ratio of 2:5 (1:2
in 2024). Members represent diverse nationalities,
including 71.4% (66.7% in 2024) Finnish, 14.3% (16.7%
in 2024) German, and 14.3% (16.7% in 2024) Austrian
citizens. All, 100% of Board members elected at
the Annual General Meeting on 8 April 2025 were
assessed as independent of the company and its
major shareholders, in accordance with the Corporate
Governance Code. Harvia Group’s employees and
other workers are not represented on the Board of
Directors.
The members of the Board of Directors of Harvia
Plc are Heiner Olbrich, Chairman of the Board
of Directors until 16 November 2025, Catharina
Stackelberg-Hammarén, Deputy Chair until 16
November 2025 and Chairman of the Board since 17
November 2025, Anders Holmén, Deputy Chair since
17 November 2025, Petri Castrén, Hille Korhonen,
Markus Lengauer, and Olli Liitola. In 2025, the Board
of Directors elected from among its members Anders
Holmén, Hille Korhonen and Markus Lengauer as
members and Petri Castrén as Chair of the Audit
63Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Local units and cross-functional teams
Tactical implementation of sustainability is done within
local units as well as via cross-functional teams. Local
units and cross-functional teams are responsible for
local sustainability performance reporting. Harvia
Group’s employees and anyone working for or acting
on behalf of a Harvia Group Company is responsible
for complying with the Sustainability Policy and other
applicable sustainability principles, Harvia Group’s
values, existing sustainability commitments and Code
of Conduct and all applicable laws and regulations.
Nomination Board considers diversity, complementary
experience, and competence, especially related to
the company’s business field and development stage,
when proposing Board members. The Board members
have broad expertise, strategic insight, and a deep
understanding of business ethics from executive
positions in diverse industries where sustainable
development is integral.
The Audit Committee members have expertise in
accounting, bookkeeping, auditing, internal audits,
or financial reporting. To continuously develop and
update sustainability expertise, Harvia provides training
on material topics and their IROs through relevant
meetings and an e-learning platform. This mandatory
CSRD training was introduced in 2024 for the Board,
Audit Committee, Group Management Team, and
Sustainability Steering Committee. This ensures that
the collective bodies have the necessary skills to
oversee Harvia’s material sustainability impacts, risks,
and opportunities.
Information provided to and sustainability
matters addressed by administrative,
management and supervisory bodies
Harvia’s governance bodies are systematically
informed about sustainability matters and regularly
address them. The Board of Directors reviews and
approves the annual DMA and IRO assessment,
prepared by the Sustainability Program commitment
owners, Sustainability Steering Group, material topic
experts, local operations, and external consultants.
These assessments are revised at least annually or if
significant changes occur.
The Audit Committee regularly discusses sustainability-
related risks as part of its risk management protocol.
The Sustainability Steering Group convenes quarterly
to monitor sustainability matters and reports progress
to the Group Management Team. The CEO, on behalf
of the Group Management Team, reports to the
Board of Directors on the implementation of the
Sustainability Program on a case-by-case basis.
The DMA serves as the foundation for Harvia’s
sustainability work, development and reporting. The
DMA was reviewed by the Sustainability Steering
Group in September 2025. The Board approved the
reviewed DMA and IRO assessment in November 2025.
During 2025 Harvia planned the Sustainability Program
continuation for 2026–2030. The new program,
including sustainability targets and key actions, was
reviewed and approved by the Board of Directors in
November 2025.
During 2024, the Board of Directors approved the
group-wide Sustainability Policy which establishes
the main framework for sustainability governance and
reporting at Harvia Group. The Sustainability Steering
group reviews the policy annually. In 2025 the policy
had only a minor update related to Harvia Group’s ESG
priorities and enablers based on the DMA assessment
results approved by the Board of Directors.
The evaluation of impacts, risks, and opportunities
is an integral part of Harvia’s decision-making.
IROs are continuously assessed as part of everyday
business, extending beyond purely financial aspects to
include sustainability. For projects and decisions with
substantial business or sustainability impacts, risks are
assessed case-by-case, with scenarios and analyses
conducted as relevant. The Group Management Team
has reviewed the Enterprise Risk Management (ERM)
process to incorporate IROs.
Expertise of Administrative, management
and supervisory bodies
Harvia ensures that its administrative, management,
and supervisory bodies possess or have access to
relevant sustainability expertise. The Shareholders’
Sustainablilty Governance
Board of Directors
Audit Committee
Group CEO and
Group Management Team
Sustainabilty Steering Group
Local Units
Cross-functional
teams
64Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Sustainability-related remuneration
Harvia Group has sustainability-related performance
metrics as part of Harvia's incentive schemes to ensure
alignment with its strategy, supporting long-term
profitability and competitiveness and Harvia’s long-
term sustainability targets.
Sustainability-related remuneration is a component
of the long-term incentive (LTI) Program, applicable
to the Harvia Group CEO, Management Team, and
selected key employees. The performance principles
and metrics are consistent across all participants.
Long-term remuneration
The LTI performance periods cover three years. For
2025, three LTI Programs, 2023–2025, 2024–2026,
and 2025–2027, included sustainability-related
remuneration.
The performance criterion is the reduction of scope
1 and scope 2 greenhouse gas emissions, indexed
against the base line and calculated in relation to sales
volumes. Harvia sets minimum, target, and maximum
index levels, with payout varying on a linear basis.
Apredefined maximum number of shares can be paid
upon reaching the maximum target.
The Board of Directors makes separate decisions for
each performance period regarding plan participants,
performance criteria, targets, and potential rewards.
Remuneration for Board members is based on
resolutions by the Annual General Meeting, following
proposals from the Shareholders’ Nomination
Board. The Board of Directors determines the salary,
bonuses, and other benefits of the CEO.
Due diligence
Harvia applies a continuous improvement
approach to due diligence in operations impacting
the environment, people, and governance.
This process is guided by Harvia’s policies and
internationally recognized frameworks, such as
the OECD Guidelines for Multinational Enterprises
and the OECD Guidelines for Good Corporate
Governance.
Harvia strives to identify and engage with employees
and suppliers to mitigate environmental, social, and
governance risks. Harvia acts on the due diligence
findings to remedy negative impacts, working together
with employees and suppliers. If a supplier is non-
responsive and remediation cannot be achieved,
Harvia may terminate the commercial relationship.
Whistleblowing mechanisms are in place for individuals
to report concerns about serious risks or wrongdoing.
A detailed mapping, showing where information about
Harvia’s due diligence process and its core elements is
presented within this sustainability statement, can be
found in Appendix 1.
Risk management and internal controls over
sustainability reporting
Harvia’s sustainability reporting aligns with the EU’s
CSRD and the company’s group-level principles for
statutory reporting, risk management, and internal
control. These principles are consistent with those for
financial reporting, ensuring reliability and compliance
with applicable laws, regulations, and operating
principles.
Sustainability reporting is supervised at two levels:
company and Group. Company-level checks ensure data
quality and validity before reporting to the Group level.
At the Group level, control measures review and validate
data for Harvia Group’s sustainability reporting, with
centralized reporting and data management ensuring
consistency across the Group. The Audit Committee
oversees the sustainability reporting process and
receives regular reports on its status and findings.
Internal control over sustainability reporting focuses
on identifying and analyzing material risks and
implementing effective controls. The key risks identified
include accuracy and availability of data particularly
Active sustainability-related performance periods:
Performance
period
Performance criteria related
to sustainability Base-line year Target
Proportion of total
remuneration
2023–2025
Scope 1 & 2 GHG emission reduction
index in relation to sales volumes
2022 -23.1% 15%
2024–2026
Scope 1 & 2 GHG emission reduction
index in relation to sales volumes
2023 -10% 10%
2025–2027
Scope 1 & 2 GHG emission reduction
index in relation to sales volumes
2021 -3,12 g CO₂e /EUR 10%
65Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
concerning value chain, completeness of the data and
timely reporting. To mitigate these risks, Harvia has
embedded processes and internal controls within its
business operations. This includes internal reviews,
consultations, and the application of internal guidelines
and instructions. Systematic, regular reporting
(annually, quarterly, or monthly) supports continuous
improvement in data accuracy and availability. Harvia
continuously evaluates and enhances its reporting and
internal control framework, with ongoing development
of manual and system-built controls for ESG data
accuracy and completeness.
Strategy, business model and value chain
Harvia Group is an international company in
sauna business, headquartered in Muurame,
Finland. Founded in 1950, Harvia has grown from a
traditional Finnish sauna heater manufacturer into an
international company operating worldwide. Harvia’s
purpose is to promote a long and good life through
healing with heat.
Harvia designs, manufactures, and markets a wide
range of sauna products, including electric and
wood-burning heaters, control units, sauna rooms,
infrared and steam solutions, and related components
and accessories. Its product portfolio serves both
residential and professional customers across home
wellness, hospitality, and public spa segments. Harvia
combines traditional sauna heritage with modern
technology to provide sauna experiences. Harvia has
grouped its significant product and service offering
based on the categories presented in the table below.
The company uses this grouping in its financial
reporting, but also for internal purposes, for which the
company also has moregranular groupings.
Harvia’s brand portfolio includes two main brands
Harvia and EOS, and local brands supporting the main
brands Almost Heaven Saunas, ThermaSol and Kirami,
each serving distinct market segments and customer
needs.
Harvia is not aware of any bans related to any of its
products or services in any of its operating countries.
Here, it is considered that bans do not include typical,
often market-specific regulation involving technical
and product feature requirements and restrictions that
limit the usage of some of the company’s products
in some of its operating countries, especially without
proper product localization and technical certification.
STRATEGY
Harvia Group’s strategy and several sustainability-
related goals are well connected and aligned. Harvia’s
strategic role is shaping the global sauna market so
that everyone has a reason to experience sauna, its
health benefits, the enjoyment and entertainment.
Harvia has taken an active role in raising awareness of
sauna and its health benefits.
Harvia aims to deliver the full sauna experience
and enables that by bringing new solutions and
innovations to meet the needs of different sauna
cultures. From the sustainability point of view, this
means educating people about the sauna, especially
the right way of using different saunas, guiding
customers in selecting sustainable solutions suited
to their needs, and introducing products that utilize
energy-efficient technologies and alternative zero-
emission energy sources, such as digital solutions for
optimized energy use and sauna concepts powered
by hydrogen or solar energy.
Revenue by
product group
(EUR million) 2025 2024
Heating equipment 107.9 54% 94.0 54%
Saunas and Scandinavian
hot tubs 47.5 24% 46.8 27%
Steam products 17.2 9% 10.7 6%
Accessories and
heater stones 13.1 7% 12.1 7%
Spare parts
and services 13.1 7% 11.7 7%
Total 198.9 100% 175.2 100%
Harvia has four geographical sales regions, which
are North America, Northern Europe, Continental
Europe, and Asia-Pacific-MEA (Middle East &
Africa) and Harvia’s products are sold in nearly 100
countries. Harvia operates through a global network
of subsidiaries, production facilities, and distributors
across the globe. The company’s production sites are
located in Finland, United States, China, Germany,
Romania and Italy. The number of personnel at the
end of December 2025 in countries where Harvia has
personnel is presented in the table below.
Number of personnel per country 2025 2024
Finland 260 255
United States 158 145
Germany 141 125
Romania 61 61
China and Hong Kong 57 56
Austria 40 34
Italy 16 12
Sweden 2 2
Estonia 0 6
Total 735 696
66Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Winning in strategically important markets relates
to the company’s global reach and position as the
market leader, also in the field of sustainability.
The focus area ’Leading in key channels’ is about
mastering the “Right product through right channel”
approach and being the best long-term partner for
B2B customers and strengthening the role of direct-
to-consumer sales. In addition, Harvia supports the
consumers and end-users throughout the product
lifecycle.
Best-in-class operations & great people are the basis
for Harvia’s success. The wellbeing of the employees
and partners alike is of great importance. This is
stated in the company’s Code of Conduct which also
considers the human rights perspective. From the
production and product point of view, the operational
efficiency covers both the company’s resources and
energy efficiency, the latter being important also for
the consumers and end-users.
Harvia’s largest product groups are ’heating
equipment’ and ’saunas and Scandinavian hot tubs,
even though the company also offers various other
sauna solutions and services. Harvia puts strong
effort in reducing the environmental footprint of its
products throughout the product lifecycle as well as
ensuring their safe use, the latter being considered
in both product design as well as customer and
end-user training. Developing innovative products
contributes both to the company’s environmental
targets and the strategic target of 'shaping the
sauna market so that everyone has a reason to
experience sauna'. In addition, Harvia aims to
increase people’s awareness of sauna and its health
benefits globally, which contributes to both its
strategic target of ’winning in strategically important
markets’ as well as its sustainability goals, e.g., ’for
good and healthy living’.
Harvia Group has a growth strategy, and it operates
globally. Due to the growth, the company’s
sustainability impacts, both negative and positive,
are likely to increase in absolute terms. Upholding the
continuous improvement of the company’s production
processes and operations as a whole is highly
important from both efficiency and sustainability
point of view. In addition, developing more sustainable
products is a key factor for sustainability, strategy
and differentiation. This may include making the
current offering more sustainable but also developing
completely new products, such as digital solutions.
As Harvia Group aims to grow especially in markets
where sauna and its health benefits are not widely
known, educating customers and end-users on sauna
and its health benefits as well as instructing them on
the right and safe use of the products is increasingly
important.
BUSINESS MODEL
Harvia’s business model focuses on manufacturing
and supplying sauna products, accessories, digital
services and full solutions. Environmental and safety
perspectives are considered in the product lifecycle,
from design to production, sourcing, logistics, use and
recycling.
Harvia’s business model relies on a range of
inputs, including raw materials, energy, people,
financial resources, intellectual property, and digital
technologies. The availability of these inputs is secured
and developed by supplier and partner management,
research and development (R&D), production,
product differentiation and distribution.
Harvia’s outputs and outcomes for customers are
to produce sauna products & solutions, and well-
being experiences, produced with consideration for
environmental, social, and governance matters. In
addition, Harvia seeks to increase knowledge of safe
use of its products and to encourage customers to
use its products in a more sustainable manner and
instructs, for instance, about the energy efficient
ways of using electric heaters.
Harvia’s outputs and outcomes for investors and
society are to create economic value in many ways,
such as by paying dividends to its shareholders,
paying taxes on profits of its business operations,
and creating jobs.
Harvia promotes driving the sauna industry towards
more sustainable production and use of sauna
products, for instance, by innovating solar and
hydrogen -powered saunas and optimizing materials
used in operations and product design.
VALUE CHAIN
In the sauna industry, Harvia acts as an active market
maker, inspirer, innovator, manufacturer, educator,
and trainer. As presented in the picture on the
next page, Harvia can impact environmental and
social matters by product innovation, resource use
efficiency, manufacturing of products, selection
of and cooperation with suppliers and business
partners, responsible operations and business
ethics and educating business-to-business (B2B)
customers, consumers and end-users on a more
sustainable way to use sauna.
67Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
HARVIA GROUP'S VALUE CHAIN
Optimization of the manufacturing process
Control units &
digital solutions
Innovation and research throughout the value chain
Infrared heaters
& controllers
Steam
products
Hot & Cold
tubs
Own workforce and workers in the value chain
60º60º
Logistics, distribution and transportation
Sauna heaters Sauna cabins Heater stones
Excess stones are recycled
or used for other purposes.
Wood waste is
recycled and reused.
All excess steel is recycled.
Stainless steel is 100% recyclable.
97% of all waste is
recycled or combusted.
Sauna heaters are
~100% recyclable.
Own operationsUpstream
Wood
Steel
Stainless steel is
manufactured from
over 90% recycled steel.
Components
Downstream
Customer support,
maintenance and
spare parts
Health and
wellbeing from
sauna bathing
Educating customers,
consumers and end-
users on the correct
use of products
Stones
B2B customers,
consumers and
end-users
68Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia’s upstream value chain consists of suppliers’
and business partners’ operations, for instance,
manufactures of raw materials (steel, wood, stone)
and components utilized in Harvia’s products, and
transportation service providers.
Harvia’s downstream value chain consists of
various B2B customers, consumers and end-users
experiencing and sharing the health and wellbeing
opportunities of sauna. Harvia supports the end-users
and consumers throughout the product lifecycle, for
instance by providing product support, a wide range
of spare parts for the sauna products and by educating
them on the correct use of Harvia products.
Cross-cutting functions throughout the entire value
chain include workforce, innovations and research for
more sustainable solutions and logistics, distribution
and transport optimization.
Consideration of interests and views
of stakeholders
Harvia Group actively engages with its stakeholders
to receive insights and feedback to direct its
strategic planning and risk management processes,
sustainability work and development, especially related
to the sauna industry, due diligence processes, goal-
setting and enhanced understanding of stakeholders’
needs and expectations.
Better understanding of stakeholders, their needs and
expectations and possible concerns, enables Harvia to
continuously enhance its performance and to receive
information for assessment of impacts, risks, and
opportunities related to environmental, social and
governance aspects.
The table on the following page presents the most
important stakeholders of Harvia Group, how they are
engaged and the sustainability topics of interest to
the specific stakeholder group.
Stakeholders’ views and opinions on Harvia’s impacts,
risks, and opportunities related to environmental,
social and governance topics have been considered
and are integrated in the Harvia Group’s double
materiality assessment conducted to understand
their expectations and involving them in defining
the material topics. During the process, Harvia
gained deeper understanding of stakeholder
views and interest, which gives Harvia confidence
that its strategy and business model are aligned
with stakeholder expectations. Engaging with
stakeholders is continuous work and stakeholders’
views and interests will be taken into account in
business development. Harvia reviews the double
materiality and IRO assessments annually and has
considered the stakeholder views also in the planning
of Sustainability Program for 2026–2030.
In addition to gaining valuable information on how
Harvia can perform better on ESG topics, Harvia
Group aims to assist its upstream and downstream
stakeholders with their sustainability work by
arranging training, sharing instructions and studies,
and to raise awareness of best practices. In addition,
Harvia has supported its key customers and
institutional investors in compiling sustainability-
related information for their own reporting purposes.
69Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Stakeholder group Engagement Stakeholders’ expectations and key sustainability topics
Employees
Supervisory work incl. constant dialogue and performance reviews
Surveys (e.g., employee, sustainability)
Cooperation with employee representatives
Safety observations and safety committees
Employee forum
Initiative and feedback channels incl. whistleblowing channel
Trainings
Safe working conditions
Employee well-being and job security
Fair working conditions (wage, benefits, labor rights)
Career and competence development
Open and transparent information on sustainability targets and progress incl. examples of practical steps taken
Customers
Customer visits and negotiations
Customer support and service
Training
Customer surveys
Fair events
Competitive and sustainable offering responding to end-customers’ needs
Effective customer support, service and channels
Product quality and safety
Product sustainability data incl. longevity, environmental impacts and recyclability of products
Certifications and compliance with industry standards and local requirements
Sustainability targets and progress
Ethical business practices (e.g., Code of Conduct)
Sustainable supply chain
Consumers and
end-users
Customer service
Feedback and contact channels
Fair events
Online services
Social media
Product quality and safety
Product repairability and availability of spare parts
Guidance on selecting the right product
Guidance on proper and sustainable product use and maintenance
Reliable information and data about the health benefits of sauna
Suppliers
Supplier visits
Supplier audits and performance assessments
Supplier training
Business partner events
Cooperation projects
Supplier surveys and questionnaires
Whistleblowing channel
Financial stability and reliable payment of invoices
Reliability and good reputation as a business partner, responsible and fair supplier practices
Predictability and forecasts of demand
Transparency of expectations, requirements and assessment criteria for suppliers
Owners, investors
and the Board of
Directors
Annual general meeting
Events such as Capital Markets Day
Site visits
Reports and releases
Meetings, interviews and surveys
Financial performance, incl. growth, profitability and commercial success
Long-term value creation
Accountability of ESG performance, clear sustainability targets and progress towards the targets
Compliance
Risk managementincl. processesand action plans
Media & influencers
Events
Interviews and articles
Reports and releases
Social media
Reliable information and data about the health benefits of sauna
Active role in driving sustainability forward through sustainable products and innovations
Verifiable environmental claims and avoidance of potential greenwashing
Open and transparent information on sustainability targets and examples of practical steps taken
Authorities
Audits and supervision activities
Certificates
Cooperation and contribution to industry standardization
Regulatory compliance
Product safety and certifications
Collaboration and transparency
Contribution to standardization work
Universities and
other educational
institutions
Joint studies
Joint research and development projects
Internships and thesis work
Cooperation events and webinars
Co-research collaborations and funding opportunities for joint research projects
Connection between educational institutes and companies
Availability of assets for testing and experimentation purposes
70Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Double materiality assessment
In 2024, Harvia conducted its first comprehensive
double materiality assessment in accordance with the
requirements of the CSRD and ESRS. The purpose
of the assessment is to identify and prioritize the
sustainability topics most significant to Harvia’s
business and stakeholders also covering the value
chain. The results form the foundation for Harvia’s
sustainability strategy and work.
The double materiality assessment applied the two
complementary perspectives defined by the ESRS:
- Impact materiality assesses the actual and potential
positive and negative impacts of Harvia’s operations,
products, and value chain on people, communities,
and the environment.
- Financial materiality evaluates how sustainability-
related risks and opportunities may affect Harvia’s
business performance, financial position, resilience,
and long-term enterprise value.
To ensure relevance and reflect changes in Harvia’s
operating environment, stakeholder expectations,
and regulatory landscape, the double materiality
assessment was reviewed and updated in 2025. The
updated assessment re-evaluated the materiality
and topic prioritisation resulting in the same material
topics at the level of topical standards as before.
LOW MATERIALITY
OR NOT MATERIAL
MEDIUM
MATERIALITY
HIGH
MATERIALITY
E2 Pollution
E3 Water and marine resources
E4 Biodiversity and ecosystems
S3 Aected Communities
G1 Business
conduct
S1 Own
workforce
S2 Workers in
the value chain
E5 Resource use and
circular economy
E1 Climate
Change
S4 Consumers
and end-users
Impact Materiality
Financial Materiality
MediumLow High
Low Medium High
Positive and Negative Materiality Low materiality or not material
MATERIAL TOPICS:
E1 Climate Change
- Climate change mitigation
- Climate change adaptation
- Energy
E5 Resource use and
circular economy
- Resource inflows,
including resource use
- Resource outflows and waste
S1 Own workforce
- Working conditions: Health & Safety
- Working conditions: Equal treatment
and opportunities for all
S2 Workers in the value chain
- Working conditions
- Other work-related rights:
Child labor, forced labor
S4 Consumers and end-users
- Personal safety of consumers
and end-users: Health and safety
G1 Business Conduct
- Corporate culture
- Protection of whistle-blowers
- Corruption and Bribery
- Management of relationships
with suppliers
71Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
The outcomes of the assessment are illustrated in
Harvia’s double materiality matrix (see previous page),
which positions each identified sustainability topic
according to its assessed level of impact materiality
and financial materiality.
Double materiality matrix
Topics located in the upper-right area of the matrix
are considered as highly material for Harvia’s business,
including both positive and negative materiality of
Consumers and end-users and Climate change. With
positive and negative materiality Resource use and
circular economy, Own workforce, Workers in the value
chain and Business conduct have been assessed to
have medium level materiality. Pollution, Water and
marine resources, Biodiversity and ecosystems and
Affected Communities have been assessed to have low
materiality or to be non-material and are not included
in this sustainability statement. The detailed IROs
are presented later in this section and the process of
the DMA and IRO-assessment is described in section
Description of process to identify and assess material
impacts, risks and opportunities.
The material topics are well aligned with Harvia’s
business model and strategy. In addition to being
aligned, Harvia’s strategy and business model are
resilient against identified and assessed sustainability-
related impacts and risks. Harvia’s business is global,
and key market areas are widely spread, which reduces
geographical risk. Harvia will continue to strengthen its
position further in multiple different regions and areas
to drive growth. The company’s in-house expertise,
experience and knowledge of the sauna industry is an
advantage in utilizing opportunities but also providing
continuity and agility, in the event of unforeseen
situations. Long-term relationships with key suppliers
and customers provide stability and flexibility
in a balanced manner. Harvia also has financial
resilience from growing profitably both organically
and inorganically. These examples of resilience are
considered on all time horizons.
The key elements of Harvia’s current Sustainability
Program for 2022–2025 are a commitment to
promoting a long and good life, providing safe and
sustainable experiences, minimizing the carbon
footprint and ensuring the well-being and safety of
key stakeholders.The program includes the material
topics, but some only on a high level. When planning
the continuation Program for 2026–2030, the material
topics set the foundation for the program, targets and
key actions.
Material impacts, risks and opportunities
As a result of the double materiality assessment and
the supplementary IRO assessment, Harvia Group
has deemed the impacts, risks, and opportunities
described in tables on the following pages to be
material to its own and/or upstream/downstream
business activities. Each material impact is classified
either as positive or negative, and each impact, risk or
opportunity is further identified as actual or potential.
The tables also indicate the part of the value chain
in which each material impact, risk, or opportunity
is concentrated. Information on the management of
material impacts, risks, and opportunities is provided
under the relevant topical standard sections of this
report. Where a phase-in provision is applied, the
management approach is instead disclosed in the table
on the following pages.
Most of the material impacts originate from or are
connected to Harvia’s strategy, such as material
impacts related to product development, own
workforce and value chain workers. The following
impacts originate from or are connected to Harvia’s
business model: emissions and energy consumption,
use of natural resources and raw materials, and waste
generation. None of the potential negative impacts
originate from Harvia’s strategy or are in relation to
Harvia’s business model. Rather, the strategy and
principles are linked to how Harvia seeks to address
the negative impacts.
72Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
MATERIAL IMPACTS RISKS AND OPPORTUNITIES RELATED TO TOPICAL STANDARDS REPORTED IN THIS SUSTAINABILITY STATEMENT
Type Impact, risk or opportunity (IRO) Value chain
E1
Climate Change
CLIMATE CHANGE MITIGATION
Impact
Actual
Negative
Creation of GHG emissions
GHG emissions from Harvia Group’s own operations (scope 1 & 2) as well as from upstream and downstream value chain (scope 3) have negative impact
toclimate change.
Most significant emissions from own operations are use of electricity in facilities where emission free electricity is not available by choice (scope 2)
and use of fossil fuels for heating, cars and machines (scope1).
Most significant scope 3 emissions come from sauna heater usage in areas where the share of emission free electricity is low.
Upstream
Own operations
Downstream
Impact
Actual
Positive
Increased availability of products and solutions with reduced environmental impact
Harvia products are designed to be durable and repairable, and Harvia offers spare parts services for them. Another significant positive factor is the good
recyclability of both the materials used in the products and the product itself.
Harvia conducts continuous development and research to develop energy-efficiency in products and new innovations taking climate matters into account.
Upstream
Own operations
Downstream
Risk
Potential
Changes in climate-related regulation
The transition to a lower-carbon economy poses a regulatory risk as the political and regulatory landscape imposes stricter climate-related regulations,
reporting requirements, and emissions standards. This will require extra effort and may increase costs to comply with mitigation targets, enable transparent
climate reporting, and invest in low-carbon technologies.
Own operations
Risk
Potential
Changing customer behavior and expectations
If evolving customer expectations or needs are not met, this may lead to unwanted changes in customer behavior and decreased revenue as in transitioning
to a lower-carbon economy consumers are expected to prefer climate-aligned brands. Also, energy availability and energy price changes as well as acute
weather hazards may have impact on consumer confidence and frequency of sauna use and result in changing customer behavior.
Own operations
Opportunity
Potential
Climate-related transition opportunity due to evolving expectations from customers and other stakeholders
Meeting the evolving requirements and expectations around sauna business builds trust for stakeholders.
The transition to a low-carbon economy creates opportunities for sustainable products & services, as demand grows for solutions that enable climate
mitigation. By providing low-emission solutions and innovations, Harvia may increase revenue through customer acquisition, market expansion, and
strengthened climate positioning.
By credible climate transition program and execution, the transition to a low-carbon economy also creates a capital & financing opportunity with stronger
investor trust in Harvia, access to impact-aligned capital, and sustainable finance instruments.
Own operations
CLIMATE CHANGE ADAPTATION
Risk
Potential
Supply chain disruptions
Climate-related physical hazards – including acute events such as floods, storms, and wildfires, and chronic stressors such as droughts and extreme heat –
may disrupt supplier operations or logistics infrastructure, leading to supply chain interruptions that increase input costs or delay deliveries, thereby raising
the company’s cost of revenue.
Upstream
Opportunity
Actual
Climate-related opportunity for resilient supply chain
Growing climate-related disruptions to global supply chains expose companies to increased input volatility and delivery risk.
The rapidly changing market conditions of the past years have proven that Harvia has a strong ability to ensure availability.
Upstream
ENERGY
Impact
Actual
Negative
Consumption of energy
Energy use from fossil fuels has negative impact on climate change.
Own operations
Risk
Potential
Risk of cost increase from dependency of energy
Rising prices can substantially increase costs of production processes in own operations and upstream.
Stricter energy efficiency requirements will require investments to upgrade equipment and improve energy performance.
Upstream
Own operations
Opportunity
Actual
Energy efficiency
Harvia’s energy efficient operations can realize both energy source and resource efficiency opportunities by reducing overall energy consumption
and shifting to cleaner, more cost-stable energy inputs.
Own operations
73Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Type Impact, risk or opportunity (IRO) Value chain
E5 Resource use and circular economy
RESOURCE INFLOWS INCLUDING RESOURCE USE
Impact
Actual
Negative
Consumption of natural resources
Natural resources, non-renewable virgin materials and non-recyclable content in raw materials will always be needed to some extent.
Upstream
Own operations
Impact
Actual
Positive
Extension of the lifespan of products, thereby reducing the demand for raw materials
Harvia considers the entire product lifecycle when designing the products: Material usage and circularity of the materials to ensure durability of the product,
spare parts and services to extend the product lifecycle, and recyclability of the product at the end of product lifecycle.
Own operations
Downstream
Risk
Potential
Regulatory transition risk of resource use
The transition to efficient and circular resource use poses a regulatory risk, as regulators introduce reporting requirements, efficiency standards, and material
phase-outs. This may affect raw materials' profitability and increase costs due to higher material prices, additional costs to update products and manufacturing
methods when shifting to sustainable alternatives, availability issues due to high-demand, supplier lock-ins and negative impacts on product reliability and
quality.
Upstream
Own Operations
Opportunity
Potential
Circular economy products & solutions opportunity
Shifting consumer expectations around circular economy solutions create a products & services opportunity, as demand grows for offerings that reduce
material use, extend product lifecycles, and enable waste recovery. By providing circular alternatives — such as spare parts, clear recycling alternatives, or
waste-to-resource infrastructure — the company may increase revenue by supporting low-waste lifestyles and positioning itself as a sustainability enabler.
Own operations
Down stream
RESOURCE OUTFLOWS AND WASTE
Opportunity
Actual
Resource use efficiency opportunity
Improved resource efficiency has been a strength for Harvia with reduced material costs and efficient production performance. By using fewer materials,
optimizing material use for products, and adopting and increasing the amount of recycled material, Harvia has gained lower long-term cost of revenue
andincreased operational efficiency.
Own operations
Impact
Actual
Negative
Generation of waste
Waste is generated in Harvia’s operations.
Own operations
74Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Type Impact, risk or opportunity (IRO) Value chain
G1
Business conduct
CORPORATE CULTURE
Impact
Actual
Positive
Corporate culture
Harvia is committed to ethical and sustainable business conduct and creating economic value to its stakeholders.
Upstream
Own operations
Downstream
PROTECTION OF WHISTLEBLOWERS
Impact
Actual
Positive
Protection of whistleblowers
Harvia’s whistleblower protection strengthens ethical standards and transparency by providing a safe channel for reporting misconduct. This reduces
compliance risks, fosters accountability, and builds trust among employees and stakeholders, enhancing the company’s reputation and long-term resilience.
Upstream
Own operations
Downstream
MANAGEMENT OF RELATIONSHIPS WITH SUPPLIERS INCLUDING PAYMENT PRACTICES
Impact
Actual
Positive
Long-term relationships with Harvia suppliers and partners and together developing sustainability
Harvia’s long-term supplier relationships enable continuous collaboration to improve sustainability performance across the value chain. Through its Supplier
Code of Conduct, assessments, commitment from suppliers and joint development, Harvia promotes ethical, responsible, and transparent business practices.
Upstream
Own operations
CORRUPTION AND BRIBERY
Impact
Potential
Negative
Potential corruption and anti-bribery violations
Failure to meet corruption or anti-bribery standards may lead to human rights violations and environmental harm through
unethical business practices.
Upstream
Own operations
Downstream
Impact
Actual
Positive
Prevention of corruption and bribery in society
Active successful actions in prevention of corruption and bribery build trust among own employees as well as in stakeholders.
Upstream
Own operations
Downstream
75Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
MATERIAL IMPACTS RISKS AND OPPORTUNITIES RELATED TO TOPICAL STANDARDS WITH PHASE-IN PROVISION
Type Impact, risk or opportunity (IRO) Management Value chain
S1
Own workforce
WORKING CONDITIONS: HEALTH AND SAFETY
Impact
Actual
Negative
Occupational injuries and health issues
Health and safety hazards, which can cause lost workdays, reduced performance,
financialcosts, and adverse effects on employee wellbeing and company reputation.
Harvia Group manages health and safety hazards by complying
with local and international regulations, conducting regular
risk assessments and safety training, providing proactive health
care with an early support model, and promoting work-life
balance. The company also uses systematic incident and
near-miss reporting with a continuous improvement approach,
all aligned with Harvia’s sustainability commitment #4 “For a
safe and warm community.”
Own operations
Risk
Potential
Risk of occupational injuries and health issues
Inadequate health and safety protections pose a workforce risk arising from business conduct,
as employees may experience burnout, injury, or lack of trust in workplace safety. This could
increase costs through absenteeism, turnover, or higher insurance and training costs.
Own operations
WORKING CONDITIONS & EQUAL TREATMENT AND OPPORTUNITIES FOR ALL
Impact
Actual
Positive
Good working conditions, job satisfaction, equal opportunities & long-term employment
A key factor behind Harvia’s success is the skilled and motivated personnel, whose well-
being the company looks after. Key sustainability elements related to personnel include
promoting well-being and job satisfaction, attracting and retaining talent, respecting the
rights of employees, and health and safety at work.
Harvia Group promotes good working conditions, job satis-
faction, equal opportunities, and long-term employment by
developing employee capabilities for future success, fostering
a supportive work environment, and ensuring work-life balan-
ce. These areas, together with transparent leadership practices
and employee engagement, are embedded in Harvia’s own
workforce policy principles covering the entire employment
lifecycle. All actions are aligned with the sustainability com-
mitment #4 “For a safe and warm community,” emphasizing
safety, equality, competence development, and collaboration.
Own operations
Risk
Potential
Working conditions and opportunities not meeting employee expectations
Risk of inability to attract, retain and motivate qualified individuals in key roles and
unsuccessful career planning if working conditions and opportunities are not meeting
employee expectations may have a negative impact on the company’s ability to make
profitable business, develop the business and on employer brand.
Own operations
S2 Workers in the value chain
TYÖOLOSUHTEET JA MUUT TYÖHÖN LIITTYVÄT OIKEUDET
Impact
Potential
Negative
Working conditions or work-related rights of the value chain not up to requirements
or expectations
Inadequate working time conditions, paying inadequate wages for employees and potential
deficiencies in working safety and health.
Harvia Supplier Code of Conduct sets clear requirements for
fair working conditions, human rights, occupational safety and
ethical business conduct for Harvia’s suppliers and their supp-
liers. Supplier assessments, audits, and close cooperation with
long-term partners ensure that this commitment is upheld and
that Harvia suppliers operate in line with Harvia’s ethical and
legal requirements.
Upstream
Risk
Potential
Working conditions or work-related rights of the value chain not up to requirements
or expectations
Possible violations of adequate and expected working conditions of the value chain may
pose a possible reputation damage and affect consumer and investor behavior.
Upstream
Impact
Actual
Positive
Promoting good working conditions in the value chain
Exposing the value chain to Harvia’s expectations and requirements of good working
conditions and work-related rights to retain and develop mutual sustainable long-term
business partnership.
Upstream
76Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Type Impact, risk or opportunity (IRO) Management Value chain
S4 Consumers and end-users
PERSONAL SAFETY OF CONSUMERS AND END-USERS
Impact
Potential
Negative
Deviations in product quality affecting safe use of products and services
A potential failure to meet product safety and quality standards leading to e.g.,
potentialaccidents and loss of positive reputation.
As Harvia states in the quality policy, Harvia strictly adheres
to all applicable laws, regulations, and safety standards,
ensuring the safety, reliability, and excellence of Harvia
products and services. Harvia’s commitment to quality ensures
that every product leaving their facilities meets or exceeds
industry benchmarks, providing customers with reliable
solutions they can trust.
Downstream
Risk
Potential
Risk for product-related injury or accident or deficiencies in product safety
Deficiencies in product safety or product-related accidents may pose risks to consumer
wellbeing and trust. Potential consequences include injuries, claims, recalls, and damage
toHarvia’s reputation and business performance.
Downstream
Impact
Actual
Positive
Promoting overall health and wellbeing of consumers and end-users.
Creating joy andwellbeing
Harvia promotes the overall health and wellbeing of consumers and end-users by offering
sauna solutions that support relaxation, recovery, and balance in everyday life. Through
safe, durable, and user-friendly products, Harvia enables people to experience the
scientifically proven physical and mental health benefits of sauna bathing while enjoying
the joy and cultural heritage of sauna experiences.
Strategic role of Harvia: “Shaping the global sauna market
sothat everyone has a reason to experience sauna.”
The health benefits of sauna bathing are backed up by
scientific studies and Harvia guides the users on sustainable,
safe and enjoyable user experiences.
Harvia Sustainability Program Commitment #1:
“For good and healthy living”. Aspirational long-term goal
related to thecommitment: Everyone with access to sauna.
Harvia Sustainability Program Commitment #2:
“For sustainable experiences & enjoyment.”
Downstream
Opportunity
Actual
Wellbeing building business
The wellbeing and enjoyment are the purpose of Harvia’s business. Harvia is known to have
safe products with excellent price-quality ratio. The trust in Harvia products and solutions
promotes long-term customer relationships and good reputation. Providing and actively
sharing guidance to end-users in the responsible, safe and sustainable use of Harvia’s
products creates a positive and reliable image of the company.
Downstream
Compared to material impacts, risks and opportunities from 2024, the main difference is that Harvia
has more clearly separated the impacts from the risks and opportunities which has resulted in changes
in the material impacts, risks and opportunities compared to previous reporting period. Some topics
have been reassessed not to be material. Additionally, descriptions of material impacts, risks and
opportunities have been reviewed and refined. The table on the next page summarises the impacts,
risks, and opportunities for which the materiality assessment differs from previous reporting period.
77Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Below is a list of topics with changes in the materiality:
Topical standard Impact, risk or opportunity (IRO) Change in materiality Reason for the change in materiality
E1 Climate change
Creation of GHG emissions
All emissions, scope 1, 2 & 3 have been combined
together. This topic is considered only as an impact
and no longer directly as an opportunity.
Separating impacts clearly from risks and opportunities and reevaluating
the evaluation criteria of the topic. Based on the thresholds the topic
is an impact but no longer an opportunity.
Changes in climate-related regulation
This topic is assessed to be only as a risk and no
longer an impact and a risk.
Separating impacts clearly from risks and opportunities and reevaluating
the evaluation criteria of the topic. Based on the thresholds, the topic
is a risk but no longer an impact.
Changing customer behavior and
expectations
This topic is assessed to be only a risk and no longer
an impact and a risk.
Separating impacts clearly from risks and opportunities and reevaluating
the evaluation criteria of the topic. Based on the thresholds, the topic
is a risk but no longer an impact.
Climate-related transition opportunity due
to evolving expectations from customers
and other stakeholders
This topic was previously an opportunity, with a
description of “Increased availability of products with
reduced environmental impact to mitigate climate
change and limiting use of natural resources”.
The description was changed to better describe the opportunity
on a wider perspective and separate impacts clearly from risks and
opportunities.
Climate related opportunity for resilient
supply chain
New opportunity.
A resilient supply chain was assessed to also create a financial
opportunity. This topic was considered previously only as a risk.
Energy efficiency New opportunity.
Energy efficiency was assessed to also create a financial opportunity.
This topic was considered previously only as a risk.
E5 Resource use and
circular economy
Regulatory transition risk of resource use
The topic was previously described to be related
tothe use of natural resources and raw materials
butnow also considering the regulatory aspect.
Previously only the use of natural resources was considered as a risk e.g.,
from cost and availability perspective, but with the increasing regulation,
the risk is described linked to the regulation.
S1 Own workforce
Good working conditions, job satisfaction,
equal opportunities & long-term
employment
This topic is assessed to be only an impact
and no longer an impact and an opportunity.
Separating impacts clearly from risks and opportunities and reevaluating
the evaluation criteria of the topic. Based on the thresholds, the topic
is an impact but no longer an opportunity.
Working conditions and opportunities
not meeting employee expectations.
This topic is assessed to be only a risk
and no longer an impact and a risk.
Separating impacts clearly from risks and opportunities and reevaluating
the evaluation criteria of the topic. Based on the thresholds, the topic
is a risk but no longer an impact.
S4 Consumers
and end-users
Social inclusion of consumers and/or
end-users
This topic was reassessed not to be material.
This topic did not exceed the threshold for the impact or opportunity
to be material. Harvia's products are available for all as a standard.
Non-discriminating and inclusion promoting
marketing
This topic was reassessed not to be material.
This topic did not exceed the threshold for the impact or opportunity to
be material. Harvia's marketing can be considered as non-discriminating
and inclusion promoting as a standard.
Potential customer data privacy breaches This topic was reassessed not to be material.
This topic did not exceed the threshold for the impact or risk to be
material. Harvia does not collect or store data about the customers or
end users that could be considered highly sensitive, such as health-related
data. For other customer related data, Harvia follows related regulations
such as GDPR and is committed to ensure customer data privacy.
G1 Business conduct
Potential conflict between maximizing short-
term performance and employee satisfaction
or stakeholder expectations
This topic was reassessed not to be material.
This topic did not exceed the threshold for the impact or risk to be
material. Harvia has a track record of long-term business growth while
maintaining good employee satisfaction and trust from stakeholders.
Protection of whistleblowers New impact.
In previous assessment protection of whistleblowers was considered as a
must have and therefore the scoring did not exceed the threshold. In new
evaluation the scoring was reevaluated, and the thresholds were exceeded.
78Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
TARGETS RELATED TO MATERIAL IMPACTS,
RISKS AND OPPORTUNITIES
Harvia’s sustainability program 2022–2025 includes
public targets for most of the material topics, which
guide progress and demonstrate effectiveness of
actions done. Most of the targets are set in 2021, but
the climate related targets have been set in 2025 as
a result of Harvia’s climate transition program. Due
to the phase in of scope 3 emissions Harvia will not
disclose the 2025 total emission achievement.
Harvia has defined sustainability-related targets that
apply across its entire business and value chain when
applicable. These targets are set at the company level
and are not limited to specific product or service
groups, customer categories, geographical areas,
or stakeholder segments. Instead, the targets are
designed to guide the overall development of the
company’s environmental, social, and governance
performance.
The achievements in 2025 have on a long-term basis
progressed to the right direction:
- Scope 1 and 2 emissions have been reduced by 14%,
despite the increase in Harvia’s production volume
since base year 2021. Harvia has identified that
achieving the emission targets will require significant
investments. The climate transition plan and the
actions presented in Chapter ESRS E1 Climate
Change outline the pathway for reaching these
targets.
- The annual target of reducing the Lost Time Injury
Frequency Rate (LTIFR) by 5% was not met, as LTIFR
increased by approximately 13% from 2024 to 2025.
Despite this short-term setback, the longer-term
trend remains positive. Since 2023, LTIFR has
declined by roughly 18% overall, corresponding
to an average annual improvement of about 10%.
This indicates that safety performance is steadily
improving over time, even though annual results vary.
- Harvia has made strong progress in supplier
commitment to responsible business practices.
Despite an increasing number of suppliers driven
by business growth and acquisitions, 86% of
existing suppliers have committed to the Supplier
Code of Conduct, and overall commitment has
improved by 31% since the base year.
For the new Sustainability Program 2026–2030
Harvia has set new targets, which address the
material topics which currently do not have a public
targets. The new sustainability targets build on the
foundation established by the previous goals, further
raising the level of ambition and strengthening
Harvia’s long-term commitment to sustainable
development. The new targets will be valid from the
beginning of 2026 onwards.
TARGETS RELATED TO MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Material topic Key Performance Indicator (KPI) Target Achievement 2025
Achievement
2024
E1 Climate change
Total emissions (scope 1, 2 and 3) Net zero by 2050
-
(Phase in)
-
(Phase in)
Scope 1 and 2 emissions (own
operations)
-60% by 2030 compared to base year 2021
-14%
Change to base year 2021
-12%
Change to base year 2021
S1 Own workforce:
Health and safety
Lost time incident frequency rate
(LTIFR)
5% annual reduction
12.9
Change to 2024: 13%
11,4
Change to 2023: -28%
S2 Workers in the
value chain
Supplier commitment to responsible
business practices
100% of suppliers whose annual purchases are over EUR 20,000
agree and commit Harvia supplier code of conduct by 2027
86% 87%
G1 Business conduct
79Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Description of process to identify and
assess material impacts, risks and
opportunities
As described in section Double materiality
assessment Harvia identified the most significant
sustainability topics for Harvia from two perspectives:
1. How Harvia Group’s business and its value chain
impact people, society or the environment
(impacts in relation to ESG matters), which is the
impact materiality.
2. Whether different aspects of sustainability
generate risks or opportunities affecting Harvia
Group’s financial performance and business
development, which is the financial materiality.
Both processes of defining impact materiality and
financial materiality included the following steps, but
the assessments for impact materiality and financial
materiality were conducted separately:
1. Identification of impacts, risks and opportunities
related to sustainability matters
2. Prioritizing criteria
3. IRO assessment
4. Management of the impacts, risks and
opportunities
1. IDENTIFICATION OF IMPACTS, RISKS AND
OPPORTUNITIES RELATED TO SUSTAINABILITY
MATTERS
Harvia’s business strategy, purpose and values,
external data driven analysis with insight on Harvia’s
key figures, business and product information and
reflecting that against scientific studies and third-
party databases as well as prior assessment of
material topics were utilized as background sources
for the mapping of topics and identification of
impacts, risks and opportunities. Additionally, the
risks and impacts recognized and assessed in Harvia’s
general risk management process were considered
in the identification. In the initial assessment of
potential risks, the risk mitigation actions were not
yet included. The initial material topics were cross-
checked against EU’s CSRD and ESRS. EFRAG’s
guidelines for conducting a double materiality
assessment were utilized throughout the process. In
addition, Harvia conducted a benchmark study on
material topics.
Harvia’s internal and external stakeholders were
involved in the double materiality assessment
process. Insights on Harvia Group’s material
sustainability impacts, risks and opportunities were
collected through an online sustainability survey
from Harvia employees, communities potentially
impacted by Harvia, business-to-business customers,
consumers and end-users, suppliers and investors.
The questions in the survey were derived from the
sustainability topics of the ESRS standards. The
survey results were part of the external data driven
analysis, also analyzed by Harvia's sustainability
experts and integrated into the assessment end-
result approved by the top management.
Finally, all the insight including the materiality results
from the data engine and results of the surveys were
mapped against all of the sustainability matters
under the ESRS standards.
After the initial assessment of the material impacts,
risks and opportunities, Harvia deepened its insight
of the impacts, risks and opportunities by evaluating
and describing them on a more precise level.
2. PRIORITIZING CRITERIA
To prioritize the identified impacts, risk and
opportunities into materiality categories low,
medium and high, Harvia has defined numerical
thresholds and criteria for the assessment.
For impact materiality, the assessment includes the
following dimensions: scale, scope, irremediability
and likelihood. The assessment was complemented
by dividing impacts into the following categories:
positive or negative, actual or potential.
Irremediability was considered only for negative
impacts. The final severity was determined based on
scale, scope and irremediability. Any of these three
dimensions can make a negative impact severe. If a
potential negative human rights impact is identified,
the severity of the impact takes precedence over
its likelihood. The likelihood was determined in the
same way as in Harvia’s general risk management.
The numerical thresholds for the impact materiality
categories were:
- Low: < 25
- Medium: 25–50
- High: > 50
For financial materiality, the possible connections
between the impacts and dependencies and the
risks and opportunities were identified, and their
effects on Harvia’s business development were
described. It was also evaluated whether these were
sources of risks or opportunities. The following
dimensions were used in evaluating the financial
materiality: the magnitude and probability of
the financial effect. The assessment of financial
materiality was based on the annual effect on profit
for the year.
80Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
The numerical thresholds for the financial materiality
categories were:
- Low: <1% annual effect on profit
- Medium: 1–2% annual effect on profit
- High: > 2% annual effect on profit
The identified impacts, risks and opportunities were
classified in line with the final topical sub-categories
of the ESRS standards.
3. IRO ASSESSMENT
The prioritization of topics was based on the total
numerical score resulting from the scores of the
defined criteria and scoring formula. Harvia set
thresholds to represent a sufficiently comprehensive
set of sustainability topics and information for the
company. The final scores were calculated based on
the following formulas:
Materiality score for an impact = scale x scope x
irremediability x likelihood
To make the negative and positive materiality scores
comparable, with the positive impact score lacking
the irremediability score, the negative and positive
materiality scores were normalized by dividing
the calculation score with the maximum value and
multiplying it by 100.
Financial effect = probability x magnitude x affected
financial item value
In addition to the threshold scores, Harvia used a
qualitative assessment when necessary to prioritize
impacts, risks and opportunities. Harvia took into
account the information needs and views of key
stakeholders on topics relevant to the company and
evaluated and mirrored these views and needs against
its own business and business relationships. At this
point of the assessment Harvia also considered risk
mitigation actions already in place when assessing the
risks. Harvia used short- (1 year), medium- (1–5 years)
and long-term (over 5 years) time horizons in its IRO
assessment.
Affected stakeholders, meaning groups whose interests
are affected or could be affected by Harvia’s activities,
were not directly involved in the assessment of material
impacts, risks or opportunities, but their views were
taken into account.
Impacts, risks and opportunities material to Harvia
and the set thresholds were discussed and approved
by Harvia’s Management Team, Audit Committee and
Board of Directors.
Harvia’s material impacts, risks and opportunities
related to the material topics as well as actions to
manage these are described in the table included in
section Impacts, risks and opportunities.
MATERIAL IMPACTS, RISKS AND OPPORTUNITIES
Description of the process to identify and assess
material climate-related impacts, risks and
opportunities
Harvia identified and assessed material climate-
related impacts, risks and opportunities in its double
materiality assessment. Harvia first evaluated its own
business activities and their impacts against the GHG
protocol. Harvia screened its own operations and
their emissions. Based on the assessment, the total
climate impact of Harvia’s own business activities is
relatively low on a large scale (approximately 2,000
tCO₂e per year), but it is still important to minimize the
impact. Similar approach was used for upstream value
chain evaluation based on estimated emissions and
for downstream based on the usage and end of life
treatment of Harvia products.
Harvia also used different scenarios in the IRO
assessment phase. The scenarios were related for
example to availability, price and type of energy and
technology, regulatory changes, market shifts, and
climate-related hazards, such as floods, heat stress,
and storms, and analyzed their probability to occur
geographically in Harvia’s own operations and along
the upstream and downstream value chain.
The potential climate-related hazards were assessed in
accordance with the dimensions set out in the section
Prioritizing criteria. Harvia assessed the regional
climate-related hazards in the locations where it
operates globally and based on the location, history
data and surrounding environment, assessed these
not to be material. However, in respect of potential
climate-related hazards, the upstream value chain may
face some potential climate-related hazards which
might cause disturbances in supply chain due to
various locations. Harvia has assessed that potential
climate-related hazards are mitigated by having
several suppliers for key components.
The IRO assessment considered, also on all time
horizons, whether there are risks arising from the
physical impacts of climate change, i.e., physical risks,
or whether there are risks associated with the shift
towards a lower-carbon energy, i.e., transitional risks.
In addition to the results of the IRO assessment, Harvia
verified and supplemented the results in a resilience
81Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
analysis performed after the IRO assessment. The
resilience analysis is found under the chapter ESRS
E1 Climate Change, section Transition program for
climate change mitigation, where two long-term
emissions scenarios by the Intergovernmental Panel on
Climate Change (IPCC) climate scenarios were used.
In the resilience analysis, the material climate-related
risks were also divided into transitional and physical
risks. This is presented in the section Climate-related
resilience analysis. The climate-related resilience
analysis supported Harvia’s risk management as the
results of the analysis were well aligned with previously
identified material climate-related risks.
Additionally, Harvia has assessed how transition events
may affect its business and assets, by using previously
identified risks from its ERM, internal data, such as
energy consumption and emissions, and stakeholder
views. The assessment covered all assets and business
activities of Harvia. Harvia identified the following
transition events: possible changes in regulation,
changing customer behavior, cost and availability
issues related to lower-emission technology,
substitution of existing products and services with
lower-emission options. Assessment was conducted by
using the dimensions set out in the section Prioritizing
criteria.
Harvia has identified potential incompatibility of its
operations with transition to climate-neutral economy
in regions where emission-free energy is not freely
available, but in the long-term time horizon, it is
expected that the energy production will shift to
emission-free options also in these regions. In the
medium-term time horizon, Harvia will invest in solar
energy to reduce the need for purchased electricity.
The climate-related risks have been identified prior to
the IRO assessment in Harvia’s ERM process. Harvia’s
risk management covers all aspects of business, with
climate-related resilience analysis being one element.
Harvia’s material impacts, risks and opportunities
related to climate change as well as Harvia’s response
to manage them are described in the table included in
section Impacts, risks and opportunities.
Description of the process to identify and assess
material impacts, risks and opportunities related
to resource use and circular economy
Harvia identified and assessed material impacts, risks
and opportunities related to resource use and circular
economy related impacts, risks and opportunities in
its double materiality assessment. Harvia analyzed
and identified resource inflows and outflows in all
of its own operations and value chain’s operations.
When analyzing and identifying the material impacts,
risks and opportunities for waste, only Harvia’s own
operations were considered. Harvia has screened its
assets and activities when identifying impacts, risks and
opportunities. This was based on Harvia’s purchases,
sales and waste data. Data delivered by Harvia’s
suppliers related to the materials and recyclability of
the material supported the assessment. Additionally,
material consistency of Harvia’s products was evaluated
from recyclability point of view. Harvia also gathered
data related to waste to assess the amount and nature
of waste generated via its operations. The lifecycle of
Harvia’s products was also assessed. One of Harvia’s
outflows, spare parts, was considered and assessed as
part of the circular economy.
Harvia did not conduct direct consultations with
affected communities when assessing impacts, risks
and opportunities related to resource use and circular
economy. Harvia’s business is dependent on the
availability of main raw materials, which are wood and
steel, used in the manufacturing of Harvia’s products,
as well as heater stones.
Description of the process to identify and assess
material impacts, risks and opportunities related
to own workforce
Harvia identified and assessed material own
workforce-related impacts, risks and opportunities in
its double materiality assessment. Harvia’s business,
innovations and business growth are dependent on
talented workforce. Harvia’s strategy and business
model take into account the personnel’s well-being by
promoting good working conditions and by mitigating
risks related to work safety and employee wellbeing.
In the IRO assessment, Harvia has identified that
risks related to health and work safety are more likely
to impact production workers due to the physical
working conditions with tools and machines. The
project team that identified and assessed the impacts,
risks and opportunities was composed of experts from
different functions to ensure a broad perspective on
various aspects and contexts.
Description of the process to identify and assess
material impacts, risks and opportunities related
to workers in the value chain
Harvia identified and assessed material impacts, risks
and opportunities related to workers in the value chain
in its double materiality assessment. Identified and
assessed material impacts, risks and opportunities
relate to Harvia’s business model and environment
and are focused on Harvia’s upstream value chain,
promoting good working conditions, potential
misconduct among its suppliers or on work-related
rights or deeper in the upstream value chain in the
82Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
purchasing of raw materials and components used in
Harvia’s products. Harvia identified and assessed that
all material negative impacts were potential. In the
IRO assessment, Harvia has identified that potential
violations of adequate working conditions are a higher
risk for factory workers and workers doing manual
work due to the nature of the work and the working
environment.
Description of the process to identify and assess
material impacts, risks and opportunities related
to consumers and end-users
Harvia identified and assessed material impacts, risks
and opportunities related to consumers and end-users
in its double materiality assessment. Use of Harvia’s
products promotes health and well-being of consumers
and end-users having positive impact. Harvia provides
directly or through its partners, guidance for the safe
and environmentally good way of using its products.
Harvia's products are used by consumers and end-
users, including minors, and ensuring product safety
is therefore essential to mitigate safety risks, but also
potential business risks and negative impacts.
Description of the process to identify and assess
material impacts, risks and opportunities related
to business conduct
Harvia identified and assessed material impacts,
risks and opportunities related to business conduct
in its double materiality assessment. The identified
material impacts, risks and opportunities are related
to corporate culture, protection of whistleblowers,
management of relationships with suppliers including
payment practices, and corruption and bribery. In the
assessment, the geographic locations, activity, sector
and business structure of Harvia’s operations have been
taken into account.
NON-MATERIAL IMPACTS, RISKS
ANDOPPORTUNITIES
Description of the processes to identify and
assess material impacts, risks and opportunities
related to pollution
Harvia identified and assessed material impacts, risks
and opportunities related to pollution in its double
materiality assessment. Harvia screened all its site
locations and business activities when identifying its
actual and potential impacts, risks and opportunities
related to pollution in its own operations. Harvia
identified the materials and components used for
its products and evaluated how the production
of such materials and components might pollute.
Considering the other end of the value chain, Harvia
took into account the pollution from the usage of
its products. Harvia compared impacts caused by
the manufacturing of the materials and products
and usage of Harvia’s products to large-scale
impacts. Harvia did not directly consult with affected
communities when assessing impacts, risks and
opportunities related to pollution.
Description of the processes to identify and
assess material impacts, risks and opportunities
related to water and marine resources
Harvia identified and assessed material impacts,
risks and opportunities related to water and marine
resources in its double materiality assessment. Harvia
screened its assets and activities when identifying its
actual and potential impacts, risks and opportunities
related to water and marine resources and assessed
this in its own production and in upstream and
downstream value chain. Harvia assessed its own
production and downstream water use to be minor,
as the manufacturing process or the usage of the
products does not require significant water resources.
Harvia assessed its share of water usage in the
downstream value chain during material production
and found it to be minor. Harvia did not directly
consult with affected communities when assessing
impacts, risks and opportunities related to water and
marine resources.
Description of the processes to identify and
assess material impacts, risks and opportunities
related to biodiversity and ecosystem
Harvia identified and assessed material impacts, risks
and opportunities related to material biodiversity
and ecosystem in its double materiality assessment.
Harvia identified and assessed its actual and potential
impacts on biodiversity and ecosystems at its own site
locations and assessed whether they are located in or
near biodiversity-sensitive areas and whether activities
related to these sites negatively affect these areas.
One of Harvia’s sites is located in biodiversity-sensitive
area “Natura 2000”. Harvia assessed whether the site
negatively affects Natura 2000 area or its habitats
and species. The site has ISO 14001 standard and the
environmental risks are evaluated regularly. As part of
ISO 14001, the site is also regularly audited.
Harvia also assessed the impacts, risks and
opportunities of its downstream and upstream value
chain related to biodiversity and ecosystem. Regarding
its upstream value chain, Harvia identified the use of
wood.
However, Harvia assessed that the wood material used
in its production is minor compared to that used in
the construction business, for instance. In addition,
the company sources wood from certified suppliers,
depending on availability in various markets. Since
83Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia’s impact is assessed minor, no biodiversity
mitigation measures have been identified as necessary.
Harvia has not recognized dependencies or systemic
risks related to biodiversity and ecosystems.
Harvia has not divided the analyzed risks related to
biodiversity and ecosystems in transition and physical
risks nor conducted consultations with the affected
communities on the sustainability assessments of
shared biological resources and ecosystems.
4. MANAGEMENT OF THE IMPACTS, RISKS
ANDOPPORTUNITIES
Harvia’s ERM process covers all risks, including
sustainability risks, but the more detailed IRO
assessment is done for the sustainability risks based
on the ESRS requirements.
Both in terms of risks and opportunities, the process
is integrated into normal business operations, and
the relevant aspects are brought to the attention of
the necessary people. Commitment owners and a
sufficiently broad range of evaluators also take into
account the issues of the operations in the assessment
of risks and opportunities.
Harvia has described its actions to manage material
impacts, risks and opportunities in table set out in
section Impacts, risks and opportunities. Harvia will
take into account the results of the IRO assessment
in its operations and in developing its due diligence
processes further, including practices, policies, targets
and metrics.
Disclosure Requirements in ESRS covered
by sustainability statements
The ESRS (European Sustainability Reporting
Standards) disclosure requirements that Harvia reports
in this Sustainability Statement for 2025 are listed on
Appendix 2. The disclosure requirements are based on
the results of the double materiality assessment and
the supplementary IRO assessment performed in 2025.
In this Sustainability Statement for financial year
2025, Harvia has utilized the opportunity for phased-
in disclosure requirements under paragraph 10.3 of
the ESRS1 to omit all disclosure requirements under
S1 Own workforce, S2 Workers in the value chain,
and S4 Consumers and end-users. In addition, Harvia
has utilized the opportunity to omit the following
disclosure requirements:
- ESRS 2 Strategy, business model and value chain
(SBM-1): Breakdown of total revenue by significant
ESRS sector and list of additional significant ESRS
sectors
- ESRS 2 Material impacts, risks and opportunities
(SBM-3): The anticipated financial effects of the
undertaking’s material risks and opportunities on
its financial position, financial performance and
cash flows over the short-, medium- and long-term,
including the reasonably expected time horizons
forthose effects
- ESRS E1 GHG Emissions (E1-6): Datapoints on scope
3 emissions and total GHG emissions
- ESRS E1 (E1-9): Anticipated financial effects from
material physical and transition risks and potential
climate-related opportunities
- ESRS E5 (E5-6): Anticipated financial effects from
resource use and circular economy-related impacts,
risks and opportunities
Disclosure of topics assessed not to be material
In preparation of the IRO assessment, Harvia
determined criteria and thresholds for materiality.
Based on the use of set thresholds against identified
impacts, risks and opportunities and the results of
the IRO assessment, the ESRS standards that did not
exceed the materiality threshold are the following:
E2 Pollution, E3 Water and marine resources, E4
Biodiversity and ecosystems, and S3 Affected
communities.
84Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Standard Explanation
E2 Pollution
Harvia has not identified impacts related to pollution of water or soil.
Harvia’s impacts on air pollution in its own operations or from the usage of
the products are minor, and therefore not considered material. Harvia does
offer cleaner burning solutions, but today, without general and harmonized
regulation, the impacts, risks, and opportunities can be considered material
depending on end-users’ choices and product usage.
Harvia is actively guiding customers and end-users on sustainable use of
Harvia’s products. Harvia has mitigated possible impacts from upstream
value chain by selection of suppliers with whom Harvia can develop mutual,
sustainable long-term business partnership.
E3 Water and
marine resources
In Harvia Group’s own operations, water is mainly used in painting lines.
The usage of water is limited, and Harvia follows the local regulations in all
locations. Impact of this activity has been considered very limited. Harvia
has mitigated possible impacts from upstream value chain by selection of
suppliers with whom Harvia can develop mutual, sustainable long-term
business partnership.
E4 Biodiversity
and ecosystems
Harvia Group’s primary means of supporting global biodiversity conservation
is by reducing greenhouse gas emissions and increasing recycling efforts,
which helps to preserve natural resources. The direct effects of Harvia Group’s
operations on biodiversity are minor. Harvia Group’s production facilities are
not located in biodiversity sensitive areas apart from EOS factory in Germany.
EOS has ISO 14001 certificate and complies with local regulation, ensuring
responsible environmental management and limited harm to surrounding
environment. In the raw material chain, Harvia has mitigated possible impacts
from upstream value chain by selection of suppliers with whom Harvia can
develop mutual, sustainable long-term business partnership. The use of wood
is relatively minor and Harvia uses certified wood suppliers when possible.
S3 Affected
communities
Harvia has always been working closely with local organizations, such as
schools and other businesses, and committing to involvement in research,
industry standardization, and innovation. This has been part of Harvia Group’s
good governance and business ethics practices. However, the business
risks and opportunities related to Harvia’s impacts and dependencies on
local communities are minor. Harvia’s actual and potential impacts on e.g.
communities’ economic, social and cultural rights have been assessed as low.
DATAPOINTS THAT DERIVE FROM OTHER EU LEGISLATION
Appendix 3 presents the datapoints that derive from other EU legislation and the
indication where they can be found in this Sustainability Statement, including those
that Harvia has assessed as not material, in which case Harvia has indicated “Not
material” in the table.
85Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
ENVIRONMENT
ESRS E1 CLIMATE CHANGE
Material impacts, risks and opportunities related to climate change
Based on the double materiality assessment, climate change mitigation, climate
change adaptation and energy are material sub-topics for Harvia. The following
table describes the material impacts, risks and opportunities and how Harvia
manages them.
Material
sub-topic Type Material impact, risk, or opportunity (IRO) Management
Climate
change
mitigation
Impact
Actual
Negative
Creation of GHG emissions
GHG emissions from Harvia Group’s own operations (scope 1 & 2) as well as from upstream
and downstream value chain (scope 3) have negative impact to climate change.
Most significant emissions from own operations are use of electricity in facilities where
emission free electricity is not available by choice (scope 2) and use of fossil fuels for heating,
cars and machines (scope 1).
Most significant scope 3 emissions come from sauna heater usage in areas where the share
ofemission free electricity is low.
Effective operations including continuously developing the sustainability
of Harvia’s operations and value chain serve as a basis for Harvia’s
strategic focus areas.
Net zero by 2050. This target is supported by the climate transition
program.
Harvia’s sustainability program 2022–2025 commitment #3: “For
minimizing our environmental footprint”, with focus on minimizing
emissions to limit global warming and contribute to global efforts in
safeguarding the environment.
Impact
Actual
Positive
Increased availability of products and solutions with reduced environmental impact
Harvia's products are designed to be durable and repairable, and Harvia offers spare parts
services for them. Another significant positive factor is the good recyclability of both the
materials used in the products and the product itself.
Harvia conducts continuous development and research to develop energy-efficiency
inproducts and new innovations taking climate matters into account.
Strategic focus area “Delivering the full sauna experience” includes
innovating new energy efficient and sustainable solutions for evolving
customer and user needs.
Harvia’s sustainability program 2022–2025 commitment #2: “For
sustainable experiences and enjoyment” with focus on actively guiding
end-users in responsible use of Harvia products, investing in research
and development of product and solutions that reduce emissions and
optimize energy consumption and using sustainably sourced materials.
Risk
Potential
Changes in climate-related regulation
The transition to a lower-carbon economy poses a regulatory risk as the political and
regulatory landscape impose stricter climate-related regulations, reporting requirements,
and emissions standards. This will require extra effort and may increase costs to comply
with mitigation targets, enable transparent climate reporting, and invest in low-carbon
technologies.
Harvia promotes the adaptation of harmonized standardization and
is actively involved in industry standardization internationally through
committees and research projects.
Regulatory compliance is embedded in Harvia’s operating principles
andis a standard requirement in all activities.
Risk
Potential
Changing customer behavior and expectations
If evolving customer expectations or needs are not met, this may lead to unwanted changes
in customer behavior and decreased revenue as the transition to a lower-carbon economy
isexpected consumers to prefer climate-aligned brands. Also, energy availability and energy
price changes as well as acute weather hazards may have impact on consumer confidence
and frequency of sauna use and result in changing customer behavior.
The mitigation of this risk is strongly linked to the positive impact
of increased availability of products and solutions with reduced
environmental impact, and the risk is managed by understanding current
and future customer needs and innovating new solutions enhancing the
health and wellbeing of customers and end-users in a sustainable way.
86Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Material
sub-topic Type Material impact, risk, or opportunity (IRO) Management
Climate
change
mitigation
Opportunity
Potential
Climate-related transition opportunity due to evolving expectations from customers and
other stakeholders
Meeting the evolving requirements and expectations around sauna business builds trust
for stakeholders.
The transition to a low-carbon economy creates opportunities for sustainable products
& services, as demand grows for solutions that enable climate mitigation. By providing
low-emission solutions and innovations, Harvia may increase revenue through customer
acquisition, market expansion, and strengthened climate positioning.
With a credible climate transition program and its execution, the transition to a low-carbon
economy also creates a capital & financing opportunity with stronger investor trust in Harvia,
access to impact-aligned capital, and sustainable finance instruments.
Harvia’s vision is to be the industry leader in sustainability and the
targets set and actions done build confidence among Harvia and its
stakeholders in reaching this so that sustainability is strongly connected
to Harvia's strategy and supports the business.
Active engagement with Harvia’s stakeholders, embedding sustainability
in the communications, and strong commitment to Harvia’s sustainability
program and climate targets set a solid path towards meeting the
stakeholder expectations and needs.
Climate
change
adaptation
Risk
Potential
Supply chain disruptions
Climate-related physical hazards – including acute events such as floods, storms, and wildfires,
and chronic stressors such as droughts and extreme heat – may disrupt supplier operations
or logistics infrastructure, leading to supply chain interruptions that increase input costs or
delay deliveries, thereby raising the company’s cost of revenue.
Harvia puts effort in long-term supplier relationships, climate-resilient
supply network with supplier diversification and backup supplier systems
for material, and weather-adaptive logistics systems to increase the
resilience of the supply chain.
Harvia’s own operations are flexible and capable of acting as back up
ifsupplier availability issues occur. Harvia’s own operations are not in
high-risk areas.
Opportunity
Actual
Climate related opportunity for resilient supply chain
Growing climate-related disruptions to global supply chains expose companies to increased
input volatility and delivery risk.
The rapidly changing market conditions of the past years have proven that Harvia has a strong
ability to ensure availability.
Energy
Impact
Actual
Negative
Consumption of energy
Energy use from fossil fuels has negative impact on climate change.
Harvia is continuously optimizing energy use in own operations and
transitioning to emission free energy through investments in energy-
efficient solutions, energy recovery and the deployment of renewable
energy, such as solar power at Harvia’s own facilities.
Risk
Potential
Risk of cost increase from dependency on energy
Rising prices can substantially increase costs of production processes in own operations
and upstream.
Stricter energy efficiency requirements will require investments to upgrade equipment
andimprove energy performance.
Opportunity
Actual
Energy efficiency
Harvia’s energy efficient operations can realize both energy source and resource
efficiency opportunities by reducing overall energy consumption and shifting to cleaner,
more cost-stable energy inputs.
87Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Transition program for climate change mitigation
Harvia Group’s Climate Transition Program 2025–2050
outlines a structured pathway to achieve net zero
emissions by 2050, aligning with EU climate targets
and the Paris Agreement’s 1.5 °C goal. To ensure
this alignment, Harvia has based its roadmap on
internationally recognized 1.5 °C-aligned mitigation
pathways, including IPCC and IEA Net Zero scenarios,
prioritizing deep emission reductions of 90–95%
across scopes 1, 2, and 3 before considering limited
high-quality offsetting in the final phase. The plan is
connected to a variety of decarbonization levers, such
as energy efficiency, electrification, use of renewable
or emission-free energy, circular economy and resource
efficiency, supply-chain decarbonization, changes in
the product and service portfolio and adoption of new
technologies.
The program includes scope 1, 2, and 3 emission targets
and actions, but since Harvia applies the phase-in
for scope 3 emission reporting, no scope 3 data is
disclosed in this Sustainability Statement. Hence, the
transition program does not fulfill the ESRS standard
requirements set for a transition plan for climate
change mitigation, which require to report the baseline
emissions and progress. The program addresses
regulatory requirements like the CSRD and EU Climate
Law, emphasizes circular economy principles, and
strategically focuses on reducing major emission
sources. The resilience analysis conducted in 2024 has
been considered in this program. The detailed emission
reduction targets are presented in the section Targets
related to climate change mitigation and adaptation
inthis report.
The transition pathway (2025–2050) details five-year
reduction periods with expected emission reductions
and priority actions, supported by enabling external
factors such as regulation, market dynamics,
technology, and supply chain developments. Harvia
Group recognizes that reaching the target will require
investments e.g. in technology at Harvia facilities and
in research and development. High-quality offsetting
may be considered only as a complementary measure
in the final phase (2045–2050) to balance the small
amount of emissions that cannot be reduced internally.
Harvia has two emission scenarios:
- Scenario 1 (Harvia’s own measures only): Describes
the emission reduction potential that Harvia Group
can achieve through actions entirely under its
own control, without relying on broader market or
industry changes. It focuses on internal decisions,
investments, and collaborations that Harvia can
independently initiate and implement, including
decarbonizing scope 1 and 2 emissions close to zero
by 2040. This conservative scenario projects a 9%
total emission reduction by 2050.
- Scenario 2 (Harvia’s own measures and favorable
external decarbonization): An ambitious pathway
combining internal actions with broader industry
transformation and technological development such
as low-carbon materials, electrified logistics, and
the global decarbonization of electricity grids. It
assumes close to zero scope 1 and 2 emissions by
2040. This scenario projects a 90% total emission
reduction by 2050.
Key focus areas and actions evolve across the timeline:
- 2025–2030: Laying the foundations by phasing
out fossil fuels, investing in emission-free energy
generation such as solar power, integrating
sustainability into communications, and introducing
climate criteria in procurement.
- 2030–2035: Advancing emission-free and
renewable energy use, deepening value chain
collaboration, and improving supplier emissions
data management, and transitioning to low-carbon
logistics.
- 2035–2040: Accelerating towards net zero by
eliminating nearly all scope 1 and 2 emissions,
promoting new sauna concepts, and expanding
circular economy principles in product development.
- 2040–2045: Deepening collaboration with key
suppliers to reach scope 3 reductions, scaling up
the use of low-carbon and circular materials across
product lines and launching low-emission sauna
products.
- 2045–2050: Sustaining net zero status primarily
through ongoing in-house and value chain emission
reductions, complemented by limited use of high-
quality carbon credits for residual emissions, while
exploring innovations such as integrating saunas
into energy storage systems.
Examples of actions by decarbonization levers:
- Energy efficiency & electrification: phasing out
fossil fuels such as oil heating and upgrading
production processes.
- Use of renewable or emission-free energy: investing
in solar power and other emission-free energy
sources.
- Circular economy and resource efficiency:
increasing recycled and low-carbon materials in
products and packaging.
- Supply-chain decarbonization: introducing climate
criteria in procurement and improving supplier GHG
data management.
88Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
- Product and service portfolio changes: developing
low-emission sauna concepts and designs for
durability and recyclability.
- Adoption of new technologies: developing sauna
solutions utilizing new technologies such as
hydrogen and future energy storage solutions.
The section Action and Resources in Relation to
Climate Change Policies includes a description of the
key actions implemented in 2025 or planned to be
implemented before 2030.
Recommended next steps include enhancing climate-
related financial impact quantification, expanding
circular economy initiatives, strengthening value chain
collaboration, integrating climate screening into M&A,
and establishing robust monitoring and reporting
mechanisms for enhanced continuous improvement.
At present, Harvia has a limited amount of locked-in
emissions due to technological and market constraints.
However, based on expected advancements in low-
carbon technologies, renewable energy availability,
and regulatory developments, these constraints are
anticipated to be resolved by 2050, enabling full
alignment with the net-zero target. The program
acknowledges uncertainties related to policy and
regulatory developments, the pace of energy system
decarbonization in key markets, the availability and
cost of low-carbon technologies and materials, the
scalability and credibility of carbon removals, and
evolving market and consumer dynamics.
Regarding EU Taxonomy, Harvia has identified both
taxonomy eligible and taxonomy aligned activities
under the target Climate Change Mitigation. Harvia
continues to develop products and services that meet
the technical screening criteria of the EU-Taxonomy
and that reduce energy consumption and emissions
during product use, responding to expected increasing
demand from customers and end-users for such
solutions. These efforts will not only increase the share
of taxonomy aligned revenue and Capital expenditure
(Capex) but also support progress towards Harvia’s
net zero target by reducing scope 3 emissions.
Harvia has integrated its Climate Transition Program
into its overall strategy, guiding sustainability actions
through new solutions and innovations and improving
operations with focus on energy efficiency and
emission reductions.
The owner of the Climate Transition Program is
Harvia Group’s Head of Operations. The program
was drafted and will be reviewed annually by Harvia
Group’s Sustainability Steering Group. The program
is approved by Harvia Group’s Management Team
and Board of Directors. Data related to scope 3
emissions, including the climate transition program’s
full alignment with the ESRS E1 standard reporting
requirements, will be reported in line with the
regulatory requirements, while assessing the use of
applicable transitional or phase-in provisions. Harvia is
not excluded from the EU’s Paris-aligned Benchmarks.
89Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
2024
(base year) 2030
LAYING THE FOUNDATIONS
FOR DECARBONIZATION
-26%
-46%
(-20%)
-64%
(-18%)
-79%
(-15%)
-90%
(-11%)
• Scope 1 & 2 Emission
Reductions – up to 60%,
requires significant energy
and eciency investments
(replacing oil heating in
Germany, solar power in
China & the U.S.)
• Targeting 85 % renewable
or emission-free electricity
in all operations (incl. the
U.S. and China)
• Supplier collaboration &
data collection
• Climate-focused
procurement criteria
• Customer & consumer
education
• Integrate sustainability
perspectives more
consistently into
communications
2035
ADVANCING RENEWABLE
ENERGY AND VALUE CHAIN
COLLABORATION
HARVIA CLIMATE TRANSITION PROGRAM 20252050
Transition program towards net-zero in 2050
• Near 100% emission-free
electricity across sites, incl.
on-site production and
storage
• Climate criteria integrated
into procurement contracts
and supplier collaboration
• IoT-optimized product
usage, AI-driven logistics
optimization
• Supplier GHG data
embedded in procurement
and tracked via digital
systems
• Internal carbon pricing
introduced to guide
investments
2040
ACCELERATING TOWARDS
NET ZERO
• Scope 1 & 2 emissions near-
zero; refrigerants phased
out
• Low-carbon materials
prioritized; suppliers set
science-based targets
• Modular sauna line
and renewable energy
integrations
• Energy dashboard rollout
with user incentives
2045
CLOSING THE NET ZERO
GAP
• 100% emission-free energy
with on-site solutions
• Net zero-aligned supplier
network & circular materials
• New low-emission sauna
products
2050
SUSTAINING NET ZERO AND
BEYOND
• Net zero across scopes 1–3
with minimal osets
• Carbon capture
technologies implemented
Scenario 1: Harvia’s own measures only
Scenario 2: Harvia’s own measures and favorable
external decarbonization development
Regulation & policy
• Tightening of EU Eco-design and sustainable
product rules
• Global emission regulations for logistics and
manufacturing
• Public procurement and financial disclosure rules
(ESG/CSRD/etc.)
• Application of polluter pays principle (e.g., carbon
pricing, extended producer responsibility)
Market dynamics
• Evolving customer preferences (energy-ecient,
sustainable products)
• ESG expectations from business partners
• Reputational and brand pressure across sectors
Technology & infrastructure
• Decarbonization of global electricity grids
• Development of zero-emission logistics
(electric, hydrogen)
• Digitalization and smart energy systems
inbuildings and products
• AI-enabled emissions tracking, smart product
optimization, and predictive analytics
Supply chain & materials
• Shift toward recycled and low-carbon materials
(metals, electronics, wood)
• Supplier-side emission reductions driven
byregulation and customers
• Increasing traceability and emissions
transparency in procurement
Product use environment
• Transition of buildings and homes to energy-
ecient systems
• Growing role of smart devices and behavioral
nudging tools
• Regional improvements in grid carbon intensity
Carbon compensation & residual management
• Emergence of robust carbon credit markets
• Use of osets only for unavoidable emissions
infinal stages
• Potential for nature-based or tech-based
removals
Systemic transition drivers
• Green economy transformation shaping
investment, regulation, and innovation agendas
External factors aecting
thetransitionprogram
(prerequisites and key enablers incl.
regulatory framework, customer market
evolution and infrastructure development
&o-setting)
90Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
CLIMATE-RELATED RESILIENCE ANALYSIS
Harvia conducted a climate resilience analysis in
2024 to further evaluate climate-related risks and
opportunities, building on the insights gained from
the IRO assessment. This analysis took mostly a
long-term view of the company’s ability to adapt to
and mitigate the impacts of climate change. Harvia’s
sustainability management together with operations
conducted the resilience analysis in 2024, and it
was approved on 3 December 2024 by the Head
ofOperations.
The scope of the resilience analysis was climate
change resilience covering the entire value chain.
Harvia considered two different scenarios in
evaluating climate related resilience:
1. IPCC SSP1-1.9 scenario, which is aligned with
the Paris agreement and is targeted to limit
global warming to 1.5˚C. From climate mitigation
perspective, this scenario will require strict
policies, global cooperation on carbon pricing
andrapid utilization of new technological
solutions to reduce greenhouse gas emissions
and reach net-zero in 2050. Extreme weather
conditions are more frequent, but the radical
consequences of climate change are avoided.
2. IPCC SSP2-4.5 scenario with approximately
2.7˚C global warming by the end of the century.
In this scenario, greenhouse gas emissions
remain at around current level until mid-century
before they start declining. Progress towards
targets is relatively slow and the regulative and
technological transition is modest. Extreme
weather conditions are frequent, sea level will
rise and there will be impacts on ecosystems
andbiodiversity.
The scenarios were selected based on the likelihood
ofthe scenario and for the timeframe being reasonable
to predict the possible risks and impacts.
In scenario 1, the material risks identified were more
transitional rather than physical. Due to increased
regulation and carbon pricing, Harvia estimates a
moderate increase in carbon taxes and energy costs,
especially over the medium- and long-term time
horizon, while the technology for more sustainable
solutions is still under rapid development. At the same
time, Harvia sees great potential in being the leader of
the industry, complying with increasing regulation and
investing in more sustainable solutions in its operations
and offering. Investments, such as the ones described
in Harvia’s Climate Transition Program, will be needed
to reduce energy consumption and emissions.
In scenario 2, the risks were assessed to be more
physical rather than transitional. This is because of the
more frequent extreme weather conditions and less
pressure from regulatory requirements. The increase
in physical risks is more likely over the long-term time
horizon. Even if the regulatory pressure in scenario 2
is smaller, it is expected that there will still be demand
from customers and end-users for more sustainable
and energy-efficient solutions, and Harvia’s leading
role in the industry will be a significant competitive
advantage. Harvia’s own operations are assessed
not to be exposed to high-level risks, and potential
impacts remain manageable and temporary, even
when extreme weather conditions become more
frequent and intense.
Harvia’s strength lies in its extensive network of
suppliers, long-term partnerships and flexible in-house
operations. These will continue to ensure Harvia’s
security of supply even in unusual situations. A global
market helps to balance overall demand, even if there
are acute or long-term changes in some markets.
Harvia’s business model, strategy, operations and
governance structures support climate resilience
well in both scenarios analyzed also from the risk
management perspective. Harvia’s climate risks are
considered in the Group’s risk management process
and are well managed on a regular basis and on a
broad scope in terms of risk assessment, identification
and response. Harvia has the capability to adapt its
strategy as required. However, based on the current
analysis, no immediate adjustments are necessary in
the short term. Harvia developed a climate transition
program in 2025, and the program is aligned with the
resilience analysis. No updates for the analysis were
needed during 2025. The climate change resilience
analysis and climate transition program served as
the foundation for Harvia’s sustainability program
continuation regarding the planning and target setting
of the climate commitments. In addition to these
concrete actions, the resilience analysis for climate-
related risks will serve as a basis for assessing potential
strategic or business model changes in the medium-
and long-term.
CLIMATE-RELATED RISKS
The climate-related risks assessed to be material for
Harvia, in its own operations or in the value-chain,
were divided into physical and transition risks.
Physical risks include possible acute or chronic
physical climate impacts, such as extreme weather
conditions and rising sea levels, which could disrupt
operations, supply chain, energy availability and costs
as well as infrastructure.
91Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Transition risks include possible regulatory and
customer expectation changes, availability of energy
and low-emission solutions as well as stakeholder
expectations.
The climate-related material risks are listed below with
an explanation on whether the risk is a climate-related
physical risk or a climate-related transition risk:
Harvia’s climate-related
material risk
Climate-related
transition or physical risk
Changes in climate related
regulation
Transition risk
Changing customer behavior
and expectations
Transition risk
Supply chain disruption Physical risk
Cost increase from dependency
on energy
Transition risk
The description of the general process for identifying
and assessing the impacts, risk and opportunities
is found in the section Description of process to
identify and assess material impacts, risks and
opportunities and the process for specifically
identifying and assessing climate-related risks is in
the section Description of the process to identify and
assess material climate-related impacts, risks and
opportunities.
Policies related to climate change mitigation
and adaptation
Harvia Group is committed to operating responsibly
and minimizing the environmental impacts of its
operations and products throughout their entire
lifecycle, with an overarching climate target to achieve
net zero emissions by 2050. This commitment is
formally articulated in the Harvia Group Environmental
Policy and further detailed in the Climate Transition
Program, which together establish a framework for
managing climate-related material impacts, risks,
and opportunities. Concrete actions and more
detailed objectives are presented in Harvia Group’s
Sustainability Program.
The Environmental Policy outlines key principles
designed to prevent, mitigate, and remediate actual
and potential impacts, address risks, and pursue
opportunities related to climate change. These include:
- Compliance with legislation and other
requirements: Ensuring adherence to applicable
environmental laws and regulations, actively
monitoring changes, and implementing necessary
adjustments, thereby addressing risks associated
with evolving climate-related regulation.
- Continuous improvement: Optimizing productivity
and operating practices across the value chain, from
purchasing to logistics, to reduce environmental
impacts, directly contributing to energy efficiency
opportunities and GHG emission reductions.
- Product innovation, design, energy efficiency,
andlife cycle management: Developing new
concepts and solutions to minimize environmental
impacts, improve energy efficiency, and extend
product lifespan. This approach leverages positive
impacts and opportunities related to changing
customer behavior and market expectations for
sustainable solutions.
- Responsible sourcing and supply chain
management: Ensuring resilient and responsible
sourcing, supporting suppliers in improving their
environmental performance, and requiring legal
compliance. This addresses supply chain disruption
risks and fosters a climate-resilient supply chain.
- Energy and emissions: Prioritizing emission-free
and renewable energy sources, reducing energy
consumption in production facilities, optimizing
transportation, and promoting cleaner combustion.
This directly targets the reduction of GHG emissions
and mitigates the risk of cost increases from energy
dependency.
The Climate Transition Program 2025–2050 provides
a structured pathway to achieve net zero emissions
by 2050, specifically addressing scope 1, 2, and 3
emissions. This program, informed by the Climate-
related Resilience Analysis, systematically identifies
and assesses both transitional risks (e.g., regulatory
changes, carbon pricing, changing customer demands)
and physical risks (e.g., extreme weather conditions,
supply chain disruptions), alongside strategic
opportunities for market leadership and innovation in
sustainable solutions. Harvia regularly monitors and
measures its environmental impacts and is prepared
to adjust actions if needed. Progress towards climate
targets, including scope 1 and 2 emission reductions
and energy consumption, is diligently tracked and
reported.
The Environmental Policy applies to the entire Harvia
Group and its personnel in all markets, covering
topics throughout the value chain from sourcing to
production and product use. Harvia also expects
its suppliers to adhere to the policy. The Climate
Transition Program is designed to cover the entire
value chain (Scope 1, 2, and 3 emissions), ensuring a
holistic approach to climate action.
The Harvia Group Management Team is responsible
for approving the Environmental Policy and ensuring
its effective implementation, with the Quality Director
92Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
accountable for its development and maintenance.
The Climate Transition Program is owned by Harvia
Group’s Head of Operations, drafted and annually
reviewed by the Sustainability Steering Group, and
approved by Harvia Group’s Management Team and
Board of Directors, ensuring commitment at the
highest organizational levels.
Harvia’s climate strategy, including its net zero target
and transition program, aligns with EU climate targets
and the Paris Agreement’s 1.5°C goal. The program
addresses regulatory requirements such as the
Corporate Sustainability Reporting Directive (CSRD)
and the EU Climate Law. Emissions calculations
adhere to the GHG Protocol. For wood materials,
Harvia strives for Chain of Custody certification
where feasible.
Harvia openly communicates its Environmental
Policy, Sustainability Program and objectives to all
key stakeholders, including customers, personnel,
suppliers, investors, shareholders, and authorities.
The policy and the program are embedded in
daily operations, with personnel trained and
actively encouraged to participate in achieving
environmental objectives. The Harvia Group Supplier
Code of Conduct, which includes environmental
responsibility requirements, must be agreed
upon by all significant suppliers, ensuring broad
dissemination and commitment across the value
chain. The consideration of evolving expectations
from customers and other stakeholders is integrated
into the development of sustainable solutions and the
overall climate strategy.
Actions and resources in relation
to climate change policies
To address the actual or potential impacts and the
risks and opportunities described in the chapter
General disclosures, section Material impacts, risks
and opportunities, Harvia has conducted several
actions which are listed as recent and current. In
line with Harvia’s principles under the Sustainability
Program and climate related targets, Harvia intends
to continue investing in the development of energy-
efficient and more sustainable solutions in its
offering, own operations and its value chain. These
are described below under the heading Future key
actions. The actions are divided according to which
decarbonization lever they are most essentially
related to.
ENERGY EFFICIENCY
Recent and current key actions
- New hybrid thermal plant and painting line at EOS,
Germany. In 2025, EOS in Germany began the
implementation of a major investment to transition
from oil-based heating to a carbon-neutral hybrid
thermal plant and to renew the factory’s painting
line. The implementation began during the summer
of 2025 with the renewal of the painting line. In Q4
of 2025, the implementation of the hybrid thermal
plant commenced. The renewed painting line is
more energy-efficient and will utilize heat from the
hybrid thermal plant once it becomes operational.
Until then, the line is heated with electricity.
- The total investment is estimated to reduce Harvia
Group’s scope 1 GHG emissions from the level
before to the investment by approximately 30%,
corresponding to about 300 tCO₂e annually. During
2025, the painting line renewal alone resulted in a
reduction of 95 tCO₂e, aligning with the expected
fullyear impact. The total Capex allocated for the
project was EUR 1.79 million.
USE OF RENEWABLE OR EMISSION-FREE ENERGY
Recent and current key actions
- Heat pump at Kirami, Finland. At the Kirami site in
Sastamala, Finland, Harvia invested in heat pump
technology. The new heat pump is more energy-
efficient and almost completely replaces the use of
light fuel oil at the Kirami site in Finland. The main
decarbonization lever is the use of renewable and
emission-free energy, but this action also impacts
energy efficiency positively. The new heat pump
was taken in use at the end of 2024, and the actual
savings in the emissions were not verifiable until
2025. The actual annual emission reduction for
2025 was 56 tCO₂e. The operating expenditure
(Opex) for this investment was EUR 13,800 in 2025.
This investment is also reported in the financial
statements.
Future key actions
- Installing solar power systems in China and in the
U.S., where emission-free energy is not available by
choice, is planned to take place during 2026–2027.
The expected decrease in emissions from electricity
in China will be about 65%, contributing to the total
emissions with an estimated reduction of 250 tCO₂e.
The design work for the solar power system in the
United States is underway, and emission reductions
cannot yet be reliably estimated. The target is that
solar power would cover approximately 50% of
Harvia US electricity consumption, resulting in an
approximate reduction of 400 tCO₂e. Future Capex
allocated for solar power systems is EUR 600,000.
93Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
The key actions are targeted to reduce total annual
emissions of the operations of Harvia Group by
approximately 1,000 tCO₂e, which is over 40% of all
scope 1 & 2 market-based emissions in the reporting
year.
EXAMPLES OF OTHER ACTIONS TO ADDRESS
IMPACTS, RISKS AND OPPORTUNITIES OF CLIMATE
CHANGE
To drive electrification, Harvia has invested in
electrical forklifts and charging stations for electrical
vehicles. At Harvia’s headquarters and largest
manufacturing site in Muurame, Harvia has a solar
power plant to increase the share of renewable
and emission-free energy sources. Harvia has also
optimized road freight routes in the EU, reduced
overlapping inventories and selected a contract with
a key logistics partner that enables approximately
60% fewer emissions than a standard contract to
reduce transportation carbon footprint. Harvia
continuously educates consumers and end-users
inthe sustainable use of Harvia products.
Harvia has not taken any remedial actions to support
those harmed by actual material impacts related to
climate change mitigation and energy.
Targets related to climate change mitigation
and adaptation
Harvia has set a long-term target to be net zero
by 2050. Due to the phase-in of scope 3 emission
reporting, this target and its progress will not be
reported as part of the 2025 sustainability statement.
During 2024 Harvia’s business grew significantly in
the United States, where the availability of emission-
free electricity for Harvia’s needs is limited, and Harvia
acknowledged and reported that the prior target of
carbon neutrality in its own operations by 2030 was
no longer feasible. For scope 1 & 2 emissions Harvia set
a renewed target while planning the climate transition
program for 2025–2050. The new set target for scope
1 and 2 emissions is a 60% reduction by 2030 from the
2021 base line.
The achievement of this emissions reduction
target is supported by identified decarbonization
levers, including the increased use of renewable or
emission-free energy sources and electrification
of company-owned assets. The primary emissions
reduction impact is expected to result from the
increased use of renewable or emission-free energy,
including investments in new technology such as a
modernized painting line, hybrid power generation
and solar energy. Measures related to the increased
use of renewable or emission-free energy sources are
estimated to account for approximately 98% of the
total scope 1 & 2 emissions reduction. Electrification
of company-owned assets includes company-owned
forklifts and vehicles, with a target for approximately
50% of the fleet to be electric. This measure is
expected to contribute approximately 2% of the total
scope 1 & 2 emissions reduction. Scope 1 emissions
reduction is expected to be approximately 51%
and scope 2 (market-based) emissions reduction
approximately 49%.
Harvia’s target to reduce scope 1 and scope 2
greenhouse gas emissions by 60% by 2030 is directly
aligned with the company’s Environmental Policy
objectives. The policy emphasizes minimizing the
environmental impact of operations, improving energy
efficiency, and transitioning towards low-carbon
solutions. By setting a measurable reduction goal
for operational emissions, Harvia demonstrates its
commitment to these objectives and ensures that
climate action is embedded in strategic decision-
making, operational practices and continuous
improvement.
Material topic
Key Performance
Indicator (KPI) Target Achievement 2025 Achievement 2024
E1 Climate Change
Total emissions
(scope 1, 2 and 3)
Net zero by 2050
-
(Phase in)
-
(Phase in)
Scope 1 and 2 emissions
(own operations)
-60% by 2030 compared
to base year 2021
-14%
Change to
base year 2021
-12%
Change to
base year 2021
94Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
This target was established while planning the
climate transition program for 2025–2050 through
a detailed analysis of historical emissions data,
anticipated business growth, and the impact of
planned investments in emission reduction measures.
Thetarget-setting process involved:
- Recalculating baseline emissions for 2021
- Simulating future emissions scenarios, both with
and without investments, to assess the feasibility
ofdifferent reduction levels
- Factoring in expected operational changes, such as
the electrification of company vehicles, investments
in emission-free heating solutions and solar panels,
and the phase-out of high-emission energy sources.
This approach ensures that the target is ambitious
yet achievable, and that it reflects both Harvia’s
operational context and its commitment to continuous
improvement in environmental performance.
Both climate-related targets consider only market-
based scope 2 emissions, and as described in the
section Transition Program for Climate Change
Mitigation, the targets are aligned with climate-science
pathways, to limit global warming to 1.5 degrees,
based on IPCC and IEA decarbonization scenarios.
These targets have not been validated to be science-
based by a third-party initiative such as the Science
Based Targets initiative (SBTi).
Stakeholder expectations have been considered in
the target-setting process. Harvia employees who
regularly interact with customers, investors, suppliers,
and other stakeholders have provided insights into
stakeholders’ needs and expectations. Stakeholders
have not been directly involved in setting the targets,
but their views, especially regarding climate goals
aligned with the Paris Agreement, have informed
Harvia’s approach.
PROGRESS OF SCOPE 1 AND 2 EMISSIONS TARGET
(MARKET-BASED)
In 2025, Harvia achieved a 14% reduction in scope
1 and scope 2 (own operations) greenhouse gas
emissions compared with the 2021 baseline. Emission
levels have decreased despite growth in both business
operations and production volumes, indicating that
Harvia is progressing toward its targets as planned.
Harvia recognizes that the key measures outlined
in the section Actions and Resources in Relation
to Climate Change Policies, and scheduled for
implementation before 2030, are vital for reaching the
company’s climate objectives. These actions form an
essential part of Harvia’s pathway toward achieving its
medium and longterm emission reduction targets.
95Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Energy consumption and mix
Energy consumption (1,000 MWh) 2025 2024 Change
Total energy consumption 15.6 15.2 3%
Total fossil energy consumption 5.8 6.1 -5%
Fuel consumption from coal and coal products 0 0 0%
Fuel consumption from crude oil and petroleum
products 3.3 4.1 -20%
Fuel consumption from natural gas 0 0 0%
Fuel consumption from other fossil sources 0 0 0%
Consumption of purchased or acquired electricity,
eat, steam, and cooling from fossil sources 2.5 2.0 25%
Share of fossil sources in total energy consumption 37% 40% -3% p.p.
Consumption from nuclear sources 4.1 3.7 11%
Share of consumption from nuclear sources in total
energy consumption 26% 24% +2% p.p.
Total renewable energy consumption 5.7 5.4 6%
Fuel consumption from renewable sources 1.6 1.1 45%
Consumption of purchased or acquired electricity, heat,
steam, and cooling from renewable sources 4.0 4.2 -5%
Consumption of self-generated non-fuel renewable
energy 0.1 0.1 0%
Share of renewable sources in total energy
consumption 37% 36% +1% p.p.
Non-renewable energy production 1.6 2.2 -27%
Renewable energy production 1.7 1.2 42%
Total energy consumption from activities in high
climate impact sectors per net revenue from activities
in high climate impact sectors (MWh/EUR million) 78.4 86.8 -10%
The total energy use of Harvia Group increased by 3% in 2025 compared to 2024.
This is due to the increase in production volumes and business. Biggest increases
were in consumption from nuclear sources, 11%, and renewable energy consumption,
6%, while the total fossil energy consumption decreased by 5%. The increase in
nuclear power is a result from the increase in production volumes and business, as
nuclear power is widely used in different Harvia Group companies. The changes in
renewable and fossil energy are primarily due to the painting line renewal at EOS,
which shifted from oil to electricity heating until the new hybrid thermal plan is up
and running, and Kirami shifting from oil heating to heat pump generated heating.
These have resulted in a 20% decrease in fuel consumption from crude oil and
petroleum products. The increases in the fuel consumption from renewable sources
and renewable energy production are due to increased heating compared to 2024
atthe Domo factory inRomania.
ACCOUNTING POLICY
The energy consumption and mix data is based on the GHG emissions data
collection and accounting. For those companies where the market-based
data is not available, location-based data of the energy mix from the Carbon
Database Initiative has been used. These companies include Harvia Japan,
Harvia US, Phoenix El-Mec and Harvia Estonia. For 2024 reporting Harvia Japan
and ThermaSol energy-mix data was also location-based.
In 2025 a clarification was made to the calculation of Domo’s heat production
resulting in 2024 fuel consumption from renewable sources decreasing by
400MWh, which also decreased the total energy consumption by 3% and led
to the reporting of Domo’s heating under the fuel consumption from renewable
sources instead of consumption of self-generated non-fuel renewable energy.
Harvia has harmonized its reporting units in 2025. Energy intensity will
henceforth be reported as MWh per EUR million instead of the previous
Wh per EUR.
Based on Harvia’s most significant products and services, all of Harvia’s
business activities have been considered to operate in high-climate impact
sectors. The net revenue used is EUR 198.9 (EUR 175.2 million for 2024) million,
as reported in the Financial Statements.
96Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
GHG emissions
2021 2025 2024 Change % Target
GHG Emissions, scope 1 and 2 (tCO₂e) Base year 2024 2030
Change %
Annual target/
base year
Scope 1 GHG emissions
Gross scope 1 GHG emissions 1,271 850 1,023 -17% N/A -33%
Scope 2 GHG emissions
Gross location-based scope 2 GHG emissions - 2,642 2,259 17% N/A -
Gross market-based scope 2 GHG emissions 1,486 1,535 1,404 9% N/A 3%
Total Scope 1 and 2 GHG emissions
Total GHG emissions (location-based) - 3,492 3,282 6% N/A -
Total GHG emissions (market-based) 2,757 2,385 2,428 -2% 1,103 -14%
GHG emissions by business unit, scope 1 and 2
(tCO₂e)
2025 2024 2025 2024 2025 2024 2025 2024 2025 2024
Scope 1 Scope 2 location-based Scope 2 market-based Total location-based Total market-based
Harvia Finland (Finland) 177 198 491 544 18 37 668 742 195 236
Kirami (Finland) 44 108 27 24 0 0 71 132 44 108
Sauna-Eurox (Finland) 61 69 60 59 0 0 121 128 61 69
Harvia Estonia (Estonia) 3 15 16 33 13 26 19 48 16 41
EOS (Germany) 433 518 296 219 0 0 729 737 433 518
Harvia Austria (Austria) 34 34 31 29 9 8 65 64 43 43
Domo (Romania) 40 31 93 99 75 80 133 131 115 111
Phoenix El-Mec (Italy) 0 0 47 37 47 37 47 37 47 37
Harvia China (China) 20 18 569 451 379 451 589 469 399 469
Harvia Japan (Japan) 0 0 36 25 36 25 36 25 36 25
Harvia US (U.S.) 38 32 822 673 822 673 860 705 860 705
Thermasol (U.S.) 0 0 153 67 137 67 153 67 137 67
Total 850 1,023 2,642 2,259 1,535 1,404 3,492 3,282 2,385 2,428
97Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Biggest emissions in 2025 were in the United States,
China, and Germany, representing approximately
70% of total emissions. The planned and ongoing
investments are targeted to reduce the emissions
significantly as presented in the section Actions and
resources in relation to climate change policies. The
total market-based scope 1 and 2 GHG emissions
decreased by 2% compared to the previous year,
despite the increase in total production volume and
ThermaSol being included in the full-year reporting for
2025. In the 2024 reporting, ThermaSol was included
from August onwards.
The comparison between market-based and location-
based scope 2 emissions shows that Harvia effectively
utilizes the opportunity for emission-free electricity
whenever possible, resulting in market-based scope 2
GHG emissions being almost 56% (30 % in 2024) lower
than location-based scope 2 emissions.
None of Harvia’s scope 1 greenhouse gas emissions are
subject to regulated emission trading schemes (0%).
ACCOUNTING POLICY
Harvia uses the GHG Protocol to calculate the GHG
emissions.
The direct emissions, scope 1, cover all direct
emissions from Harvia owned or controlled sources,
including fuels of cars and forklifts owned and used
by Harvia, self-produced energy for heating from
light fuel oil and burning wood and direct emissions
from processes using methane. The local companies
report their consumption to the centralized
emission accounting. In emission accounting,
the consumption of energy is multiplied by the
emission factor. The emission factor used for scope 1
accounting is from Defra (2024).
Scope 2 emissions include purchased electricity
and purchased heat, with the energy sources of
district heating and natural gas. For the market-
based scope 2 emissions, the energy supplier
provides either the total emissions or the emission
factor. The consumption of energy along with the
supplier-specific emission factor or total emissions
is reported by each company to the centralized
emission accounting. The consumption of energy
is multiplied by the emission factor. For location-
based scope 2 emissions, a country-specific
emission factor from Carbon Database Initiative
(2024) was used. For purchased heat, the emission
factor was obtained from Defra, except for district
heating where an emission factor from Statistics
Finland (2022) was used. Harvia calculated its
location-based scope 2 emissions for the first
time in 2024. For market-based GHG accounting
at facilities where energy suppliers or landlords
have not provided market-based data, location-
based emission factors from the Carbon Database
Initiative have been used. These facilities include
Harvia Japan, Harvia US, Phoenix El-Mec in Italy and
Harvia Estonia. For 2024 reporting, Harvia China
and ThermaSol scope 2 market-based data was
calculated by using location-based emission factors.
Harvia has recalculated and updated its base year
2021 emissions data as part of the development of
its calculation processes. The updates take more
broadly into account the changes in the Group
structure that occurred between 2021–2025, and
a clarification has been made to the calculation
of Domo’s heat production. As a result of these
updates, Scope 1 emissions for the 2021 base year
increased by a net total of 2 tCO₂e and market-
based Scope 2 emissions increased by 194 tCO₂e.
In total, Scope 1 and 2 emissions increased by
196 tCO₂e. The refinement of Domo’s calculation
reduced 2024 Scope 1 emissions by 4 tCO₂e and
biogenic emissions by 151 tCO₂e.
98Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Between 2024 and 2025 the scope 1 and 2 emissions relative to production volumes
decreased by 13% due to the higher production volume and reduced market-based
scope 1 and 2 emissions. The scope 1 and 2 market-based emission intensities relative
to net revenue decreased by 13%. The metric of emissions relative to production
volume is not validated by an external body other than the assurance provider.
Biogenic emissions of CO₂ from combustion or biodegradation of biomass not
included in scope 1 and 2 GHG emissions were 1,323 tCO₂e (1,493 tCO₂e in 2024).
Harvia has a contract with the electricity supplier for renewable energy at EOS in
Germany and for CO₂-free electricity in Finland at the Muurame factory, Sauna-Eurox
and Kirami. Percentage of contractual instruments, scope 2 GHG emissions, is 58%
(45% in 2024). Harvia does not use contractual instruments to purchase unbundled
energy attribute certificates for scope 2 GHG emissions. Therefore, the proportion
of scope 2 GHG emissions covered by contractual instruments used to purchase
electricity with generation-related attributes is also 58% (45 % in 2024), and the
proportion covered by contracts used to purchase unbundled energy attribute
certificates is 0% (0% in 2024).
Datapoints on scope 3 emissions and total GHG emissions will be reported in line
with the regulatory requirements while assessing the use of applicable transitional
orphase-in provisions.
ACCOUNTING POLICY
The market-based scope 1 and 2 GHG emissions in relation to production
volumes have been calculated by using an index to balance the different
types of products into a comparable value. The index is calculated for each
company separately by dividing monthly production quantity of end-products
by monthly work hours. The final index is the average for the entire year. The
year-end total quantity is divided by the total index, to calculate the balanced
production volume. Finally, the total emissions from all companies are divided
by the total balanced production volume. This metric considers only production
facilities with standard end-products, meaning that project work or component
manufacturing is not included. Harvia Austria, Harvia Estonia, Harvia Japan and
Phoenix El-Mec and the emissions from those companies are not included in
the calculation.
Due to the harmonization of the reporting units in 2025 emission intensity
will be reported tCO₂e/EUR million instead of the previous gCO₂e/EUR.
The GHG emission in relation to net revenue has been calculated by dividing
the total emissions by net revenue. The net revenue used is EUR 198.9 million
(EUR 175.2 million for 2024), as reported in the Financial Statements.
The percentage of contractual emissions is calculated by comparing market-
based scope 2 electricity consumption (MWh) tied to contractual instruments
with total energy generation (MWh) related to scope 2 emissions.
GHG Intensity, scope 1 and 2 2025 2024 Change
Scope 1 and 2 market-based GHG emissions in relation
toproduction volumes (kgCO₂e /pc) 3.5 4.0 -13%
Scope 1 and 2 market-based GHG emissions in relation
tonet revenue (tCO₂e/EUR million) 12.1 13.9 -13%
Scope 1 and 2 location-based GHG emissions in relation
to net revenue (tCO₂e/EUR million) 17.6 18.7 -6%
99Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
ESRS E5 RESOURCE USE AND CIRCULAR ECONOMY
Material impacts, risks and opportunities related to resource use
andcircular economy
Based on the double materiality assessment, resource inflows, resource use and waste
are material sub-topics for Harvia. The following table describes the material impacts,
risks and opportunities and how Harvia manages them.
Material sub-topic Type Material impact, risk, or opportunity (IRO) Management
Resource inflows,
including resource
use
Impact
Actual
Negative
Consumption of natural resources
Natural resources, non-renewable virgin materials and non-recyclable content in raw
materials will always be needed to some extent.
Harvia’s sustainability program 2022–2025 commitment #2:
“For sustainable experiences and enjoyment” with resource use
focus on sustainable and efficient use of materials in product design,
manufacturing and at the end of the product lifecycle.
There are typically many types of material and supplier options
available. Making sustainable decisions in relation to materials and
suppliers to promote sustainable business.
Impact
Actual
Positive
Extension of the lifespan of products, thereby reducing the demand for raw materials
Harvia considers the entire product lifecycle when designing the products: Material
usage and circularity of the materials to ensure durability of the product, spare parts and
services to extend the product lifecycle, and recyclability of the product at the end of
product lifecycle.
Harvia focuses strongly on supporting the end user throughout
the product lifecycle by product design and guidance ensuring
good product durability and maintenance, offering spare parts
andmaintenance services and guiding on recyclability.
Risk
Potential
Regulatory transition risk of resource use
The transition to efficient and circular resource use poses a regulatory risk, as regulators
introduce reporting requirements, efficiency standards, and material phase-outs. This
may affect raw materials' profitability and increase costs due to higher material prices,
updating products and manufacturing methods when shifting to sustainable alternatives,
availability issues due to high-demand, supplier lock-ins and negative impacts on product
reliability and quality.
Harvia has long-term supplier relationships with key suppliers who
share the same commitment to sustainability as Harvia and are the
leaders in their industry in sustainability matters. These partnerships
enable staying ahead of regulatory changes.
Opportunity
Potential
Circular economy products & solutions opportunity
Shifting consumer expectations around circular economy solutions create products &
services opportunities, as demand grows for offerings that reduce material use, extend
product lifecycles, and enable waste recovery. By providing circular alternatives – such
as spare parts, clear recycling alternatives, or waste-to-resource infrastructure – the
company may increase revenue by supporting low-waste lifestyles and positioning itself
as a sustainability enabler.
By efficient material use, focusing on designing long lasting products
with repairability, spare parts, and recycling alternatives, the company
strengthens customer loyalty and trust with sustainable product
offerings.
Opportunity
Actual
Resource use efficiency opportunity
Improved resource efficiency has been a strength for Harvia with reduced material costs
and efficient production performance. By using fewer materials, optimizing material use
for products, and adopting and increasing the amount of recycled material Harvia has
gained lower long-term cost of revenue and increased operational efficiency.
Profitability is one of Harvia’s core strategic goals and is driven
by efficient resource management. By streamlining operations,
optimizing material use and minimizing waste, the company enhances
cost-effectiveness and sustains long-term profitability.
Waste
Impact
Actual
Negative
Generation of waste
Waste is generated at Harvia’s operations.
Harvia manages waste creation by preventing it at the source,
improving process efficiency, and promoting recycling and reuse
throughout its operations.
100Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
responsible sourcing, with a commitment to using
recycled stainless steel (averaging approximately
90% recycled content) and sustainably sourced,
deforestation-free wood materials. In its manufacturing
processes, Harvia employs continuous optimization,
automation, and material-saving techniques to
reduce waste generation. All excess steel is recycled,
and innovative solutions, such as converting wood
waste into sawdust for local agricultural use, are
implemented to divert materials from landfill. Harvia
recycles all excess stone materials from heater stone
manufacturing, integrating them back into mining sites
or supplying them for construction uses. These actions
directly mitigate the negative impacts of natural
resource consumption and waste generation, while
enhancing resource use efficiency and addressing
regulatory transition risks.
The Harvia Group Environmental Policy applies to the
entire Harvia Group, its personnel, and all operating
markets. It covers the full value chain, from upstream
raw material sourcing to internal production processes
and downstream product use and end-of-life
management. Harvia expects its suppliers to adhere
to the principles outlined in this policy and the Harvia
Group Supplier Code of Conduct.
The Quality Director of Harvia Group is responsible for
the development, implementation, and maintenance
of the Environmental Policy. The Harvia Group
Management Team ensures the policy’s approval and
the allocation of necessary resources for its effective
implementation. The entire personnel are responsible
for the daily implementation of and adherence to
these principles. Harvia regularly monitors and
measures its environmental impacts and annually
evaluates the effectiveness of its Environmental Policy
Policies related to resource use and
circular economy
Harvia Group’s commitment to operating responsibly
and minimizing environmental impacts throughout the
product lifecycle shapes its approach to resource use
and the circular economy. This approach is primarily
governed by the Harvia Group Environmental Policy,
which provides the framework for managing material
impacts, risks, and opportunities across the entire
value chain. Harvia Group’s Sustainability Program
is the platform for objectives, Key Performance
Indicators and concrete actions.
Harvia’s circularity strategy can be summarized in two
core principles:
1. Design for circularity and longevity:
Harvia focuses on ensuring the lasting quality and
durability of its products. Products are specifically
designed to be durable, repairable, and maintainable,
incorporating modular construction to facilitate
part replacement and extend their lifespan. This
commitment directly addresses the positive impact
of extending product usability and thereby reducing
the demand for virgin raw materials. Harvia actively
provides customers, consumers, and distributors
with information on the correct use of its products
to maximize their energy efficiency and extend
their service life. These design principles align with
opportunities for developing circular economy
products and solutions and responding to evolving
customer expectations for sustainable offerings.
2. Resource efficiency and waste management:
Harvia prioritizes optimizing resource utilization
and minimizing waste throughout its operations and
supply chain. This includes a strong emphasis on
and Sustainability Program to ensure continuous
improvement.
Harvia’s commitment is reflected in its adherence to
relevant standards and practices, including procuring
wood materials from suppliers with a valid Chain of
Custody certification where feasible and complying
with regulations concerning Waste Electrical and
Electronic Equipment (WEEE). The company actively
seeks to collaborate with key partners and suppliers
to increase the recyclable content in materials and
components, fostering a more circular economy.
Consideration of stakeholder interests is embedded
in Harvia’s approach, from meeting customer
demands for durable, energy-efficient, and sustainable
products to engaging with suppliers on environmental
performance through the Supplier Code of Conduct.
Harvia openly communicates its Environmental Policy,
objectives, and environmental performance to all
key stakeholders, including customers, personnel,
suppliers, investors, shareholders, and authorities.
The Supplier Code of Conduct, which delineates
environmental responsibility requirements, is a
mandatory commitment for all significant suppliers,
ensuring policy awareness and compliance across the
supply chain.
Actions and resources related to resource use
and circular economy
Harvia is continuously implementing measures to
optimize resource use and promote the circular
economy, integrating them into its operational
framework and practices. While there is no
comparative baseline data or reliable industry averages
to quantify their individual impact, they are reflected
in stakeholder engagement and operational efficiency.
101Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
In the new sustainability program from 2026 onwards
Harvia has set concrete action plans with targets, but
since these are valid from 2026 onwards, they are not
yet reported in this Sustainability Statement.
The actions during the reporting period promoting
resource use and circular economy are divided
below based on the subtopics defined in the ESRS 1,
Appendix A, that they are most material to. All the key
actions related to the impacts, risk or opportunities of
resource use and circular economy are implemented
and monitored in operations on a daily basis. The
implementation of the actions does not require
significant financial resources. Harvia has not taken
any remedying actions for those harmed by actual
material impacts related to resource use and circular
economy.
RESOURCE INFLOWS INCLUDING KEY ACTIONS
RELATED TO RESOURCE USE
- Material use. The main materials used in
manufacturing Harvia’s products are steel and
wood. On average, the stainless steel Harvia uses
is approximately 90% recycled steel. The share of
biological materials in the material inflow, including
mainly wood & cardboard, is 62% (65 % in 2024)
of all material inflow, excluding stones. The biggest
inflow material measured in weight is stone, with
over 67% (70 % in 2024) of total resource inflow
weight. The mining process creates material for
various needs, from which approximately 20–30%
is for heater stones and the rest 70–80% for gravel
or other stone-based material for example for
construction use. The excess stone material from
heater stone manufacturing is recycled back to the
mining site or sold to local companies to be used
for construction or landscaping. Mining, heater
stone manufacturing, and recycling are all located
within approximately 20 km radius and the transport
between mining and heater stone manufacturing is
optimized to have load in both directions.
Together with its key partners, Harvia is aiming to seek
ways to increase the recyclable content in materials
and components used in Harvia’s products where
possible. Cooperation opportunities and financial
resources required for them are being investigated.
RESOURCE OUTFLOWS INCLUDING RESOURCE USE
RELATED KEY ACTIONS
- Resource optimization is a part of Harvia’s product
development and operations, and it covers both
the production and the lifecycle of the products.
Over the years, Harvia has increased automation in
its manufacturing facilities and developed its own
equipment and ways of working to optimize material
use and to reduce waste.
- Extending product lifecycle. The products are
designed to be repairable, and Harvia offers spare
parts and maintenance services to extend the
lifetime of the products.
- Material recyclability. The materials used in
manufacturing Harvia products, and the products
themselves have good recyclability at the end of the
product lifecycle. Harvia’s most significant product
group, heating equipment, are 99% recyclable.
KEY ACTIONS RELATED TO WASTE
- Recycling. Harvia recycles all excess steel used in its
production processes.
- Waste management. In all other facilities, except the
ones in the United States and Italy, waste is recycled
or treated with combustion, covering 97% (98 % in
2024) of all waste.
- Reducing waste. At Harvia’s production site in
West Virginia in the United States, the company has
invented ways to reduce wood waste. The excess
board material is turned into sawdust and sold to
local farms to be used as animal bedding instead
of ending up as landfill waste. The total amount of
sawdust was 936 tons in 2025 (160 tons in 2024).
Harvia continues to find ways of minimizing the
landfill waste in the facilities in United States and Italy.
Harvia does not have remedying actions in place for
generation of waste or use of natural resources and
raw materials but rather focuses on minimizing the
waste.
Targets related to resource use and circular
economy
In the current Sustainability Program for 2022–2025,
Harvia has not set measurable targets related to
resource use and circular economy. The principles and
actions related to resource use and circular economy
are strongly linked to the qualitative targets Harvia
has, such as increasing the recyclable content in
material inflow, products designed to be long-lasting
and repairable and at the end of the product lifecycle
recyclable and minimizing non-recyclable waste.
Profitability is a strategic goal of Harvia and linked to
resource efficiency profitability. Optimizing operations,
efficient use of resources and reducing waste are
ways of enhancing cost-effectiveness. This core focus
area has been an important factor in achieving the
strategic goal since company’s establishment. Harvia
tracks the effectiveness of its resource use and circular
economy principles and actions in relation to the
material impacts, risk and opportunities by monitoring
the recyclable content of the inflow materials and
102Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
monitoring the waste quantities and types of waste. Harvia has not set level of
ambition to be achieved but strives for continuous positive development.
Harvia will include the resource use and circular economy in its Sustainability Program
from 2026 onwards. The continuation program was planned during 2025 and Harvia
has set targets for resource use and circular economy as part of the program which
take place from 2026 onwards.
Resource inflows
The materials used in Harvia’s products and packaging are of great importance to
the impacts, risks and opportunities of resource inflow. The main materials in Harvia’s
material inflows in the upstream value chain include the following:
- Stainless steel
- Cold and hot-rolled steel
- Other metals (such as aluminum, copper, Aluzinc alloy coated steel)
- Wood
- Electrical components and electronics
- Cardboard
- Glass
- Plastic
- Stones
RESOURCE INFLOWS 2025 2024 Change
Overall total weight of products and technical
and biological materials used (1,000 kg) 78,500 67,000 17%
Percentage of biological materials 20% 21% -1 p.p.
The absolute weight of secondary reused or
recycled components, secondary intermediary
products and secondary materials used to
manufacture the undertaking’s products and
services (including packaging) (1,000 kg) 4,200 2,500 68%
Percentage of secondary reused or recycled
components, secondary intermediary products
and secondary materials 5% 4% +1 p.p.
Stones account for the biggest amount of resource inflow in kilograms with over 67%
(70% in 2024) of total resource inflow weight. Below, the resource inflow is calculated
with the stones excluded to give a view of biological and reused or recycled material
in contrast to all other materials:
RESOURCE INFLOWS WITHOUT STONES 2025 2024 Change
Overall total weight of products and technical and
biological materials used (1,000 kg) 25,600 21,100 21%
Percentage of biological materials 62% 65% -3 p.p.
The absolute weight of secondary reused or recycled
components, secondary intermediary products
and secondary materials used to manufacture the
undertaking’s products and services (including
packaging) (1,000 kg) 4,200 2,500 68%
Percentage of secondary reused or recycled
components, secondary intermediary products and
secondary materials 16% 12% +4 p.p.
The total resource inflow increased by 17% and without the stones 21 % compared
to 2024. This is in line with the business and production volume growth achieved in
2025. The significant increase of 68% in the secondary reused or recycled resource
inflow is primarily due to the increase in steel material use from business growth and
ThermaSol being included in the reporting for the full year 2025 compared to 2024,
when ThermaSol was part of Harvia Group from August 2024 onwards.
103Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia will continue to develop the material inflow together with its suppliers to
increase the share of reused and recycled materials.
Resource outflows
Harvia’s largest product group is heating equipment, which equals 54% of Harvia’s total
revenue. Harvia’s R&D and operations evaluate the products to improve material efficiency
in production, and the company offers maintenance services and spare parts. The stainless
steel Harvia uses is on an average manufactured with approximately 90% of recycled
steel and the steel itself is recyclable. The use of steel is optimized in the production
process and all excess steel is recycled. Harvia instructs the recycling of its products
inthe product packages but has no access to information on how end-users behave.
Saunas and Scandinavian hot tubs, which represent the second largest product group
and account for 24% of total revenue, contribute to the material flow of wood. Harvia
sources wood from certified suppliers, depending on availability in various markets.
The European sauna factories of Harvia procure their wood materials from suppliers
with a valid Chain of Custody certification. During production, scrap wood is minimized
by techniques such as finger jointing, which enables the use of shorter wood pieces.
Atthe end of its lifecycle, wood is recyclable.
Harvia aims to minimize the use of plastic in packaging, but at the same time considers
the optimal packaging method to keep the goods in good condition and to avoid
damages during transport or warehousing. The plastics Harvia uses in its products
andpackaging are recyclable.
EXPECTED DURABILITY OF PRODUCTS
The expected durability of Harvia’s products is estimated in the table below. There
is no reliable industry average information available and the estimates are based
on experience and testing. There are no changes to the estimates in comparison to
previous year. It is important to note that the expected durability has been assessed
based on having the right product for the use and space, correct installation, average
use, and proper maintenance without repairs with spare parts:
Product Expected durability (years) NOTE
Electric heater 8
Spare parts and good
maintenance can extend
the expected durability and
product use significantly.
Woodburning heater 10
Control units (separate from heater) 10
Sauna cabins 20
Infrared heaters 8
Infrared controllers 10
Steam generators 4
Hot & Cold tubs 10
Sauna stones 3–5*
Annual re-stacking
of the stones required.
* Due to large variation in temperature, the sauna stones disintegrate in use. The stones are required
to be re-stacked at least once a year or even more often if the sauna is in frequent use.
RECYCLABLE MATERIAL IN PRODUCTS AND PACKAGING
Product
Rate of recyclable material
in product (%)
Rate of recyclable material
in product packaging (%)
Electric heater 99 100
Woodburning heater 99.8 100
Control units (separate from heater) 99 100
Sauna cabins 92 100
Heater stones 0 100
Infrared heaters 99 100
Infrared controllers 99 100
Steam generators 99 100
Hot & Cold tubs 100 100
ACCOUNTING POLICY
The calculations in the tables are based on the quantities of main materials,
components or products Harvia Group has purchased, and the percentage of
secondary, reused or recycled materials used to manufacture Harvia products. The
content of the materials, including the percentage of reused or recycled material,
has been provided by suppliers. Harvia cannot reliably determine whether the
data from the suppliers is based on estimates or direct measurements. To avoid
double counting, Harvia has collected the data from each group company
individually and excluded inter-company trade. If no data was received, the
percentage of reused or recycled content was considered to be zero.
104Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
The vast majority of the materials used in Harvia products are recyclable. Exceptions
are glass windows and doors, insulation materials and heater stones. The heater
stones are natural material, but their end-of-life disposal remains an area for
improvement. The heater stones can be used in earthworks or as decorative stones
for example in the garden, however not everyone has this opportunity and the
acceptance and recycling of stones in recycling centers varies greatly. Harvia is
committed to exploring alternative solutions that include, for example, investigating
new recycling and reuse possibilities for sauna stones in collaboration with waste
management partners. All packaging material used is 100% recyclable.
WASTE
Waste (1,000 kg) 2025 2024 Change
Total waste generated 21,708 26,430 -18%
Hazardous waste diverted from disposal 9 6 50%
Hazardous waste diverted from disposal
due to preparation for reuse 0 0 0%
Hazardous waste diverted from disposal
due to recycling 9 6 50%
Hazardous waste diverted from disposal
due to other recovery operations 0 0 0%
Non-hazardous waste diverted from disposal 20,949 25,795 -19%
Non-hazardous waste diverted from disposal
due to preparation for reuse 0 0 0
Non-hazardous waste diverted from disposal
due to recycling 20,949 25,795 -19%
Non-hazardous waste diverted from disposal
due to other recovery operations 0 0 0%
Hazardous waste directed to disposal 19 39 -51%
Hazardous waste directed to disposal by incineration 19 39 -51%
Hazardous waste directed to disposal by landfilling 0 0 0
Hazardous waste directed to disposal by other
disposal operations 0 0 0
Non-hazardous waste directed to disposal 730 590 24%
Non-hazardous waste directed to disposal
by incineration 47 36 31%
Non-hazardous waste directed to disposal
by landfilling 684 553 24%
Non-hazardous waste directed to disposal
by other disposal operations 0 0 0%
Non-recycled waste 750 629 19%
Percentage of non-recycled waste 3% 2% +1 p.p.
The total waste generated decreased by 18 % in 2025 mainly due to having
significantly less stone waste than in 2024. The decrease in stone waste is also seen
in the 19 % reduction of non-hazardous waste diverted from disposal due to recycling.
The 50 % increase in hazardous waste diverted from disposal due to recycling is from
the increased amount of hazardous electrical waste which is recycled, and the 51 %
decrease in hazardous waste directed to disposal by incineration is from the decrease
ACCOUNTING POLICY
The rates of recyclable material in products have been estimated based on
the waste management of Finland, where Harvia’s headquarters are located.
There have been no changes in the estimates compared to 2024.
105Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
ACCOUNTING POLICY
Waste data is collected from each group company individually to avoid double
counting. Most of the data is provided by the waste management companies.
When it is not possible to get the data from the waste management company,
the calculation is done based on the size of the waste bin and the frequency of
bin emptying. The estimated waste quantity is less than 1% of the total waste.
in waste paint and washing products from the painting lines. The 24 % increase in
thenon-hazardous waste directed to disposal by landfilling is from the U.S. facilities.
The main waste streams include soil and stones, other than those containing
hazardous substances, mixed metal, sawdust, shavings, cuttings, wood, particle board,
and veneer, other than those containing hazardous substances, discarded electronic
equipment, mixed municipal waste, paper and cardboard waste and waste paint and
varnish containing hazardous substances. The vast majority (84%) of the waste is
stones. Excess stone material from manufacturing is recycled back to the mining site
or sold for use in road and earthworks construction, for example. 97% of all waste
is recycled or disposed by combustion (incineration). Harvia does not generate
radioactive waste. In all other facilities, except the ones in the United States and Italy,
all waste is recycled or treated with combustion. Harvia continues to find ways of
minimizing the landfill waste in the facilities in United States and Italy.
106Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
STATEMENT ON EU TAXONOMY FOR
SUSTAINABLE ECONOMIC ACTIVITIES
Disclosure according to the EU Taxonomy
Regulation
The Taxonomy Regulation 2020/852 is a key
component of the European Commission’s action plan
to redirect capital flows towards a more sustainable
economy. It represents a step towards achieving
carbon neutrality by 2050 in line with EU goals as the
Taxonomy is a classification system for environmentally
sustainable economic activities. The six environmental
objectives defined under the EU Taxonomy are:
1. climate change mitigation,
2. climate change adaptation,
3. sustainable use and protection of water
andmarine resources,
4. transition to a circular economy,
5. pollution prevention and control, and
6. protection and restoration of biodiversity
and ecosystems.
Taxonomy Regulation (Regulation (EU) 2020/852,
Article 8) applies to companies like Harvia that report
according to the European CSRD (2022/2464/EU).
The following section presents the share of group
net turnover i.e., revenue, Capex and Opex for the
reporting period 2025, which are associated with
Taxonomy-aligned and Taxonomy-eligible economic
activities. Taxonomy-aligned and Taxonomy-eligible
compliance have been analyzed on the basis of
taxonomy legislation, Climate Delegated Act and
Environmental Delegated Act. Taxonomy-aligned
compliance is achieved when Taxonomy-eligible
economic activities contribute significantly to at
least one environmental objective by meeting pre-
Sustainable use and protection of water and marine
resources: The manufacturing process of control
units does not include use of significant amount
of water nor require an Environmental Impact
Assessment in line with Directive 2011/92/EU. The
manufacturing sites are either ISO 140001 certified
or implement an environmental management system
corresponding to the ISO14001. The manufacturing
sites do not need a permit to operate in the vicinity
of a water.
Transition to a circular economy: In electronics
manufacturing, the use of reused or recycled
materials in the production of new products is not
common, as products must meet strict industry-
specific requirements, and suitable alternatives are
not always available. However, the availability of
recycled and reused materials is increasing, and their
use is being considered on a case-by-case basis.
In the design process, the key factors to consider
are product durability and customer requirements.
Electronics and packaging materials are recyclable at
the end of the product’s lifecycle.
Pollution prevention and control: Harvia has
assessed to meet all the relevant criteria related
to DNSH and to Pollution prevention presented in
Appendix C.
Protection and restoration of biodiversity and
ecosystems: Harvia’s control units are manufactured
on facilities located in or near biodiversity-sensitive
areas. As part of the ISO 14001 the environmental
impacts and risks are assessed. Based on the
assessments and by complying with all environmental
laws and regulations, Harvia has assessed not to
cause any harm on the biodiversity and ecosystems.
defined technical screening criteria, the activities do
not cause significant harm to other environmental
objectives according to the Do No Significant Harm
(DNSH) criteria, and the Minimum Safeguards defined
in the Taxonomy are met.
Harvia has assessed the relevant taxonomy-
aligned and taxonomy-eligible economic activities
in accordance with Regulation (EU) 2020/852.
The assessment was conducted together with
representatives from different business areas,
the sustainability reporting team, and the finance
department. Harvia assesses its activities as
compliant with the taxonomy criteria described
below.
SUBSTANTIAL CONTRIBUTION
Harvia has reviewed the substantial contribution
criteria for economic activity CCM 3.5 “Manufacture
of energy efficiency equipment for buildings” and
assessed to be aligned. According to the criteria,
the activity must manufacture one or more of
the products listed in the taxonomy or its key
components. The list includes manufacturing energy
efficient building automation and control systems for
residual and non-residual buildings. Control units and
control automation, with energy saving features, are
considered to belong to this product group.
DO NO SIGNIFICANT HARM CRITERIA
Climate change adaptation: Harvia has assessed
physical climate risks regarding the manufacturing
ofthe control units by mapping potential chronic and
acute physical risks and their potential impact on the
control unit and control automation manufacturing.
Based on the assessment, physical climate risks are
not considered material.
107Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
MINIMUM SOCIAL SAFEGUARDS
Harvia has assessed its Minimum Safeguards
against the minimum requirements of the EU
Taxonomy Regulation (EU) 2020/852 on human
rights, corruption, bribery, tax regulation, and fair
competition. The topics are covered in the Harvia
code of Conduct and in the Code of Conduct for
Harvia suppliers. Harvia Code of Conduct sets the
policies, guidelines, and ways of working for all Harvia
employees. Harvia expects that all its suppliers act
responsibly and in accordance with Harvia Supplier
Code of Conduct. The policies and activities are
aligned with the Minimum Safeguards criteria.
Harvia is also committed to:
- operating in accordance with the UN Charter
on Human Rights and core conventions of the
International Labor Organization (ILO),
- ensuring compliance with the OECD Guidelines
forMultinational Enterprises and
- ensuring compliance with the OECD Guidelines
forGood Corporate Governance.
Taxonomy-aligned and Taxonomy-eligible
revenue
For fiscal year 2025, Harvia has identified one
Taxonomy activity related to the Climate Change
Mitigation (CCM) objective that is both Taxonomy-
aligned and Taxonomy-eligible: CCM 3.5 “Manufacture
of energy efficiency equipment for buildings”. The
activities that have been considered aligned under the
activity CCM 3.5. relate to energy-saving automation
for the control and maintenance of sauna technology.
The activities that have been considered eligible
under the activity CCM 3.5 relate to energy efficiency
for heating products, appliances, saunas, and sauna
technology. Under the Circular Economy (CE)
objective, activity CE 5.2 “Sale of spare parts” is also
Taxonomy-eligible. Harvia products are built to last,
designed to be serviceable, repairable, and durable.
With a comprehensive range of spare parts, Harvia
support circular economy.
Increased number of taxonomy-aligned and -eligible
products and increase in the sales of products that
impact energy efficiency of saunas have increased
the share of both taxonomy-aligned and taxonomy-
eligible revenue.
ACCOUNTING POLICY
The proportion of Taxonomy-aligned economic
activities has been calculated as the part of
revenue derived from products and services
associated with Taxonomy-aligned economic
activity CCM 3.5 divided by Harvia’s consolidated
revenue (see Note 2.1 Revenue in the Financial
Statements).
The proportion of Taxonomy-eligible economic
activities has been calculated by dividing
the revenue from the sales associated with
Taxonomy-eligible economic activities CCM 3.5
and CE 5.2 by Harvia’s consolidated revenue.
108Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
PROPORTION OF TURNOVER FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2025
Financial year N 2025 Substantial contribution criteria
DNSH criteria
(’Do No Significantly Harm’) (h)
Economic activities
Code (a) (2)
Turnover (3)
Proportion of Turnover. year N (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (A.1.)
or eligible (A.2.) turnover
Category enabling activity (19)
Category transitional activity (20)
€ %
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of energy efficient equipment for buildings
CCM
3.5.
9,070,000 4.6% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 4.2%
Turnover of environmentally sustainable activities
(Taxonomy-aligned) (A.1)
9,070,000 4.6% 4.6% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 4.2%
Of which Enabling 9,070,000 4.6% 4.6% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 4.2% E
Of which Transitional 0 0% 0% Y Y Y Y Y Y Y 0% T
A.2 Taxonomy-Eligible but not environmentally
sustainable activities (not Taxonomy-aligned
activities) (g)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
Manufacture of energy efficient equipment for buildings
CCM
3.5.
3,158,000 1.6% EL N/EL N/EL N/EL N/EL N/EL 1.3%
Sale of spare parts
CE
5.2.
5,432,000 2.7% N/EL N/EL N/EL N/EL EL N/EL 2.5%
Turnover of Taxonomy-eligible but not
environmentally sustainable activities (not
Taxonomy-aligned activities) (A.2)
8,590,000 4.3% 1.6% 0% 0% 0% 2.7% 0% 3.7%
A. Turnover of Taxonomy eligible activities (A.1+A.2) 17,660,000 8.9% 6.1% 0% 0% 0% 2.7% 0% 7.9%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
Turnover of Taxonomy-non-eligible activities 181,240,000 91.1%
TOTAL 198,900,000 100%
109Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Taxonomy aligned and -eligible Capex
During the fiscal year 2025, Harvia invested in
developing digital solutions and specifically
in automation for energy efficient control and
maintenance of sauna technology. These investments
are under the Taxonomy-aligned economic activity
CCM 3.5.
Harvia has invested in Taxonomy-eligible activity
related to the Climate Change Mitigation objectives
CCM 3.1 “Manufacture of renewable energy
technologies” in developing hydrogen burning sauna
heater, CCM 3.5 in developing technology for sensors,
alerts and guidance for the sauna users, CCM 4.16
“Installation and operation of electric heat pumps”
in hybrid thermal plant replacing oil heating, CCM
7.3 “Installation, maintenance and repair of energy
efficiency equipment” in low energy consumption
lighting and CCM 7.4 “Installation, maintenance and
repair of charging stations for electric vehicles in
buildings (and parking spaces attached to buildings)”
in charging stations for electrical cars.
Harvia undertook substantial investments in the
development of advanced digital solutions to enhance
the control and monitoring of sauna usage, with
the objective of reducing energy consumption and
emissions associated with sauna bathing and the
use of Harvia products. In addition, a major capital
investment was made at the EOS facility in Germany
to modernize the painting line and transition from oil
heating to a hybrid thermal plant. These initiatives
resulted in a significant increase in taxonomy-eligible
Capex compared to 2024.
ACCOUNTING POLICY
The Taxonomy-aligned Capex is defined as
Taxonomy-aligned Capex divided by the total
Capex. The Taxonomy-eligible Capex is defined
as Taxonomy-eligible Capex divided by the total
Capex.
Total Capex consists of additions to tangible and
intangible fixed assets during the financial year,
before depreciation and amortization. Additions
resulting from business combinations are also
included. Goodwill is not included in Capex.
For further details on accounting policies see
additions from Harvia’s consolidated Financial
Statements as follows: additions regarding
intangible assets see Note 3.2 Intangible assets
and impairment testing and for tangible assets
see Note 3.3 Property, plant, and equipment.
110Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
PROPORTION OF CAPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2025
Financial year N 2025 Substantial contribution criteria
DNSH criteria
(’Does Not Significantly Harm’) (h)
Economic activities
Code (a) (2)
Turnover (3)
Proportion of Turnover.
year N (4)
Climate Change
Mitigation (5)
Climate Change
Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change
Mitigation (11)
Climate Change
Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy
aligned (A.1.) or eligible
(A.2.) turnover
Category enabling
activity (19)
Category transitional
activity (20)
€ %
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
Manufacture of energy efficient equipment for buildings
CCM
3.5.
812,000 5.2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 5.0%
CapEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 
812,000 5.2% 5.2% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 5.0%
Of which Enabling 812,000 5.2% 5.2% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 5.0% E
Of which Transitional 0 0% 0% Y Y Y Y Y Y Y 0% T
A.2 Taxonomy-Eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)(g)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
EL; N/EL
(f)
Manufacture of renewable energy technologies
CCM
3.1.
80,000 0.5% EL N/EL N/EL N/EL N/EL N/EL 0.0%
Manufacture of energy efficiency equipment for buildings
CCM
3.5.
158,000 1.0% EL N/EL N/EL N/EL N/EL N/EL 0.0%
Installation and operation of electric heat pumps
CCM
4.16.
600,000 3.8% EL N/EL N/EL N/EL N/EL N/EL 0.0%
Installation, maintenance and repair of energy efficiency
equipment
CCM
7.3.
1,186,000 7.6% EL N/EL N/EL N/EL N/EL N/EL 0.5%
Installation, maintenance and repair of charging stations
for electric vehicles in buildings (and parking spaces
attached to buildings)
CCM
7.4.
24,000 0.2% EL N/EL N/EL N/EL N/EL N/EL 0%
CapEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities)
(A.2)
2,048,000 13.1% 13.1% 0% 0% 0% 0% 0% 0.5%
A. CapEx of Taxonomy eligible activities(A.1+A.2) 2,860,000 18.3% 18.3% 0% 0% 0% 0% 0% 5.5%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non-eligible activities 12,770,000 81.7%
TOTAL 15,630,000 100%
111Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Taxonomy aligned and -eligible Opex
For financial year 2025 there was no Taxonomy-aligned Opex.
Harvia has identified as Taxonomy-eligible Opex in relation to climate change
mitigation objective under activities
CCM 4.16, CCM 6.5. “Transport by motorbikes, passenger cars and light commercial
vehicles” and CCM 6.6.”Freight transport services by road”. The non-capitalized
taxonomy-eligible activities are related to heating with heat pump technology,
leasing electric vehicles and forklifts.
EU Taxonomy Regulation and reporting requirements will develop in the coming
years, and Harvia will update its Taxonomy assessment and reporting according
tothe requirements.
Row Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development,
demonstration and deployment of innovative electricity generation facilities that
produce energy from nuclear processes with minimal waste from the fuel cycle
NO
2.
The undertaking carries out, funds or has exposures to construction and safe
operation of new nuclear installations to produce electricity or process heat,
including for the purposes of district heating or industrial processes such as
hydrogen production, as well as their safety upgrades, using best available
technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing
nuclear installations that produce electricity or process heat, including for the
purposes of district heating or industrial processes such as hydrogen production
from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
4.
The undertaking carries out, funds or has exposures to construction or operation
of electricity generation facilities that produce electricity using fossil gaseous
fuels.
NO
5.
The undertaking carries out, funds or has exposures to construction,
refurbishment, and operation of combined heat/cool and power generation
facilities using fossil gaseous fuels.
NO
6.
The undertaking carries out, funds or has exposures to construction,
refurbishment and operation of heat generation facilities that produce heat/cool
using fossil gaseous fuels.
NO
ACCOUNTING POLICY
The Taxonomy-eligible Opex is defined as Taxonomy-eligible Opex divided
by the total Opex as defined in the Taxonomy Regulation. For additional
information on Opex see Note 2.3 Operating income and expenses in the
Financial Statements.
Total Opex consists of direct non-capitalized 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.
Double counting has been avoided by allocating Taxonomy-aligned and -eligible
turnover, Capex and Opex to only one economic activity.
112Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
PROPORTION OF OPEX FROM PRODUCTS OR SERVICES ASSOCIATED WITH TAXONOMY-ALIGNED ECONOMIC ACTIVITIES – DISCLOSURE COVERING YEAR 2025
Financial year N 2025 Substantial Contribution Criteria
DNSH criteria
(’Does Not Significantly Harm’) (h)
Economic activities
Code (a) (2)
Turnover (3)
Proportion of Turnover. year N (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum Safeguards (17)
Proportion of Taxonomy aligned (A.1.)
or eligible (A.2.) turnover
Category enabling activity (19)
Category transitional activity (20)
€ %
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y; N; N/
EL (b)
(c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities
(Taxonomy-aligned)
OpEx of environmentally sustainable activities
(Taxonomy-aligned) (A.1) 
0% 0% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0%
A.2 Taxonomy-Eligible but not environmentally sustainable
activities (not Taxonomy-aligned activities)(f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
EL; N/
EL (f)
Installation and operation of electric heat pumps
CCM
4.16
14,000 0.2% EL N/EL N/EL N/EL N/EL N/EL 0.0%
Transport by motorbikes, passenger cars and light
commercial vehicles
CCM
6.5.
27,000 0.4% EL N/EL N/EL N/EL N/EL N/EL 0.2%
Freight transport services by road
CCM
6.6.
30,000 0.4% EL N/EL N/EL N/EL N/EL N/EL 0.5%
Installation, maintenance and repair of instruments and
devices for measuring, regulation and controlling energy
performance of buildings
CCM
7.5.
0 0.0% EL N/EL N/EL N/EL N/EL N/EL 0.4%
OpEx of Taxonomy-eligible but not environmentally
sustainable activities (not Taxonomy-aligned activities) (A.2)
71,000 0.9% 0.9% 0% 0% 0% 0% 0% 1.0%
A. OpEx of Taxonomy eligible activities(A.1+A.2) 71,000 0.9% 0.9% 0% 0% 0% 0% 0% 1.0%
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non-eligible activities 7,504,000 99.1%
TOTAL 7,575,000 100%
113Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
GOVERNANCE
ESRS G1 Business Conduct
Material impacts, risks and opportunities related to business conduct
Based on the double materiality assessment, corporate culture, protection of
whistleblowers, management of relationships with suppliers including payment
practices and corruption and bribery are material sub-topics for Harvia. The following
Material sub-topic Type Material impact, risk, or opportunity (IRO) Management
Corporate culture
Impact
Actual
Positive
Corporate culture:
Harvia is committed to ethical and sustainable business conduct
andcreating economic value to its stakeholders.
Harvia’s strategy is based on long-term profitable growth, supported by ethical,
responsible, and sustainable business practices. The Code of Conduct defines
clear expectations for behavior and compliance throughout the organization
and value chain. Leadership, employee training, and internal controls ensure
these principles are embedded in daily operations. This approach strengthens
trust, safeguards reputation, and enables lasting economic value creation for
shareholders and other stakeholders.
Protection of
whistleblowers
Impact
Actual
Positive
Protection of whistleblowers:
Harvia’s whistleblower protection strengthens ethical standards and
transparency by providing a safe channel for reporting misconduct. This
reduces compliance risks, fosters accountability, and builds trust among
employees and stakeholders, enhancing the company’s reputation and
long-term resilience.
Harvia provides a whistleblowing channel that is open to all employees and
external stakeholders for reporting suspected misconduct or unethical behavior.
Reports can be submitted anonymously and are handled according to established
procedures ensuring strict confidentiality.
Management of
relationships with
suppliers including
payment practices
Impact
Actual
Positive
Long-term relationships with Harvia suppliers and partners
and developing sustainability together:
Harvia’s long-term supplier relationships enable continuous collaboration
to improve sustainability performance across the value chain. Through its
Supplier Code of Conduct, assessments, commitment from suppliers and
joint development, Harvia promotes ethical, responsible, and transparent
business practices.
Harvia manages supplier relationships by requiring all partners to follow its
Supplier Code of Conduct and by integrating sustainability into negotiations
and long-term partnership collaboration. Cooperation focuses on continuous
development, competence building, and mutual support in line with Harvia’s
“Safe and Warm Community” sustainability commitment.
Corruption and bribery
Impact
Potential
Negative
Potential corruption and anti-bribery violations:
Failure to meet corruption or anti-bribery standards may lead to human
rights violations and environmental harm through unethical business
practices.
Harvia Code of Conduct for all Harvia employees and Supplier Code of Conduct
for upstream value chain set clear requirements for fair working conditions,
human rights, occupational safety and ethical business conduct.
Harvia organizes internal training to recognize and prevent corruption and bribery.
Supplier assessments, audits, and close cooperation with long-term partners
ensure that supplier commitment is upheld and that Harvia suppliers operate in
line with Harvia’s ethical and legal requirements.
Impact
Actual
Positive
Prevention of corruption and bribery in society:
Active successful actions in prevention of corruption and bribery
build trust among own employees as well as stakeholders.
114Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
table describes the material impacts, risks and
opportunities and how Harvia manages them.
Policies related to business conduct
andcorporate culture
Harvia believes that sustainable success is built on
trust between employees, customers, suppliers,
partners, and all other stakeholders. This trust is earned
and strengthened every day through responsible,
transparent, and ethical business practices. These
principles form the foundation of Harvia’s corporate
culture and guide actions and decisions across the
Group.
Harvia’s Sustainability Policy sets out the key principles
and rules that steer the Group’s development across
environmental, social, and governance (ESG) aspects,
including business conduct. Harvia Group is committed to:
- Operating in accordance with the UN Charter
on Human Rights and core conventions of the
International Labor Organization (ILO);
- Ensuring compliance with the OECD Guidelines
for Multinational Enterprises; and
- Ensuring compliance with the OECD Guidelines
for Good Corporate Governance.
The Harvia Code of Conduct translates these
commitments into day-to-day guidance for all
employees. It defines the ethical standards and
expected behaviors that apply across the Group,
promoting a healthy corporate culture and responsible
conduct in every interaction and decision making.
The Code of Conduct outlines Harvia’s commitment
to lawful and ethical business practices and is directly
linked to the material impacts, risks and opportunities
related to business conduct. It covers, among other
topics: environment; health and safety; product safety;
competition law; anti-bribery and anti-corruption;
political activity; relationships with business partners;
conflicts of interest; communication principles; data
protection and access control; prohibition of money
laundering and international sanctions; human rights;
and non-harassment and non-discrimination.
The purpose of the Code is to ensure that Harvia
Plc and all its subsidiaries operate under a shared
set of ethical principles. It applies to all employees,
regardless of their role or location, and compliance
is expected without exception. The Code of Conduct
is approved by the Board of Directors, and its
implementation is led by top management and all
supervisors, whose consistent example reinforces
aculture of integrity throughout the Group.
Harvia expects that all its suppliers and their
subcontractors act responsibly and in accordance
with Harvia Supplier Code of Conduct, which requires
suppliers and partners to commit to:
- Complying with all mandatory laws and regulations
- Condemning corruption
- Promoting fair competition
- Avoiding conflicts of interests
- Preventing money laundering and complying with
privacy protection and trade sanctions
- Respecting intellectual property rights and
confidentiality
- Respecting human & labor rights
- Promoting occupational health and safety
- Promoting environmental well-being and preventing
climate change
- Reporting any suspected misconduct they observe.
Commitment to the Supplier Code of Conduct is a
requirement for all suppliers whose annual purchases
are over 20,000 EUR in total.
The Supplier Code of Conduct is approved by the
Board of Directors of the Harvia Group. The CEO
and the Group’s Management Team are responsible
for its implementation, but all individuals involved in
contracts or purchases also share responsibility for
promoting its implementation.
HARVIA’S BUSINESS CONDUCT PRINCIPLES
In Harvia’s Sustainability Program, business
conduct is one part of the Commitment #4 “For
safe and warm community”. The program sets out
group principles to be applied in all Harvia Group
companies’ business operations that are directly
linked to Harvia’s corporate culture. Related to
business conduct, Harvia follows these group-level
principles:
- We believe that when we collaborate and support
each other, it results in wellbeing and long
relationships with everyone from our employees
tocustomers and partners.
- We look after the safety, equality and competence
development of our people.
- Our operating is based on values such as equality,
diversity and ’welcoming’.
- We always comply with laws and regulations and
generally accepted best practices.
The commitment for safe and warm community is
managed by the Chief Financial Officer of Harvia
Group. Stakeholder views and expectations have
been considered when setting the policies by
involving people at Harvia who regularly interact
115Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
with different stakeholders and thus understand
their expectations and needs. All policies and
commitments related to business conduct are
publicly available on Harvia’s website.
WHISTLEBLOWING CHANNEL
Harvia has a whistleblowing channel through which
Harvia Group employees or external stakeholders
can report any matter they find unethical or
suspected misconduct. Reports can be made
anonymously, and they are treated as confidential.
Harvia has defined an official investigation process
for reports. All members of the appointed and
trained whistleblowing team receive an immediate
notice when a report is submitted. Access to reports
received through Harvia’s whistleblowing channel is
restricted to appointed individuals with the authority
and training to handle whistleblowing cases. Their
actions are logged, and handling is confidential,
independent and objective. A confirmation of receipt
is sent to the whistleblower within seven days and
the case is assessed by the whistleblowing team.
When needed, follow-up communication can be
arranged via an anonymous channel. If the report
is accepted, appropriate measures for investigation
will be taken. When needed, individuals who can
add expertise may be included in the investigation
process, upon consent from the whistleblower in
case identity of the reporting person is disclosed.
These individuals can access relevant data and are
also bound to confidentiality. Applicable action is
taken and monitored based on the investigation
results and the whistleblower shall be provided
with feedback about the actions taken or the
grounds for the choice of follow-up. Feedback to
the whistleblower about the report follow-up is
sent within three months of the acknowledgment
ofreceipt.
The whistleblowing team may not investigate the
reported alleged misconduct if:
- The alleged conduct is not reportable conduct
under the Whistleblowing guidelines
- The report has not been made in good faith
or is malicious
- There is insufficient information to allow for further
investigation
- The subject of the report has already been solved.
Harvia’s whistleblowing service is provided by
an external partner to ensure anonymity. The
communication channel is encrypted and password
protected. When the channel was established,
all employees were informed and provided with
guidance on the use of the channel. Whistleblowing
isalso part of the Harvia Code of Conduct training.
The whistleblowing service may collect personal
data on the person specified in a report, the person
submitting the report (if not sent anonymously) and
any third person involved, in order to investigate
facts on the declared misdeeds and inappropriate
behavior eligible under Harvia’s Code of Conduct
or internal rules. The processing is based on
statutory obligations and the legitimate interest of
the controller to prevent reputational risks and to
promote an ethical business activity. The provided
description and facts under the processing are only
reserved to the competent and authorized persons
who handle the information confidentially. The
whistleblower may exercise the right of access, of
rectification and of opposition, as well as of limited
processing of personal data, in accordance with the
local data protection legislation. These rights are
subject to any overriding safeguarding measures
required to prevent the destruction of evidence or
other obstructions to the processing and investigation
of the case. The data is stored within the EU.
A person expressing genuine suspicion or misgiving
according to these guidelines will not be at risk of
losing their job or suffering any form of sanctions or
personal disadvantages as a result. It does not matter
if the whistleblower is mistaken, provided that he or
she is acting in good faith.
Management of relationships with suppliers
One of Harvia values is “We believe in long-term
partnerships, built on mutual respect and trust”. Harvia
generally has long-term business relationships with its
suppliers and partners.
Successful relationships with suppliers and partners
stem from living the values, good collaboration and
risk management. The Supplier Code of Conduct sets
clear requirements for suppliers, and supplier visits,
audits and assessments are used to assess and verify
the commitment in practice. The supplier visits also
strengthen the mutual respect and trust and deepen
understanding of the needs and expectations of one
another. Supplier risks related to human and labor
rights, environmental performance and compliance
with laws and regulations are assessed continuously.
Sustainability aspects are part of the supplier selection
process and new suppliers shall commit to Harvia’s
Supplier Code of Conduct requirements. When
selecting suppliers, Harvia treats all potential suppliers
equally despite the size of the company. This means
116Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
that all suppliers have equal opportunity to become
asupplier.
Environmental aspects play an important role when
selecting the most substantial suppliers, like suppliers
of steel or logistics services. Harvia has used stainless
steel which is manufactured from recycled steel for
several years. Another steel used in Harvia’s products
is carbon steel. Both are manufactured in Finland,
which is favorable in terms of logistics. The stainless
steel from the same manufacturer is also used in
Germany.
Harvia requires that its logistics partner must have
targets for reducing emissions. The current logistics
partner is committed in reducing the GHG emission
tothe lowest possible level by 2050.
Harvia does not have a specific policy to prevent late
payments for suppliers. Harvia applies reasonable
payment terms in its operations, according to the
company’s own assessment. Payment terms are
described in more detail in the section Payment
Practices.
Prevention and detection of corruption
or bribery
Harvia’s policy and approach to anti-bribery and
anti-corruption is consistent with the United Nations
Convention against Corruption and defined in Harvia
Group’s Code of Conduct, stating that all forms of
corruption and bribery are prohibited.
When it comes to communicating about Harvia’s
approach to corruption and bribery, the training is
included as part of Harvia’s online Code of Conduct
training, which was piloted in the headquarters in
2023–2024 and was expanded to cover also other
Harvia units during 2025. All new employees are
introduced with the Code of Conduct as part of the
orientation program. Harvia’s suppliers and partners
are familiarized to Harvia’s approach and requirements
through Harvia’s Supplier Code of Conduct. All
trainings on anti-corruption and anti-bribery have
covered topics on definition of corruption and bribery,
company policies and guidelines and what to do when
suspecting or detecting possible violations.
To prevent potential corruption and bribery cases,
the personnel is advised to consult with the Chief
Financial Officer of Harvia Group or the local
managing director before entertaining guests or
business partners, or accepting an invitation by a
business partner, in case the personnel feel uncertain
of the correct way to act. In addition, entertaining
a public authority in any capacity always requires
special advance consideration and is subject to Harvia
Group’s Chief Financial Officer’s or the local managing
director’s consent. Any risk of possible violation
shall be reported in the anonymous whistleblowing
channel.
Harvia has processes and internal controls guidelines
and procedures in place to prevent and detect
corruption or bribery. For example, competitive
tendering and transparent price comparison are
required in procurement. Unexplained variance
in unit’s profitability or when significant matters
rely too much on one person also warrants closer
scrutiny. During mergers and acquisitions (M&As) a
comprehensive due diligence is made to detect any
conflicts with Harvia’s business ethics. Harvia Group
does not have its own internal audit function. As far
as feasible, the financial organization of Harvia also
carries out internal audits on corruption and bribery.
If allegations or reported incidents arise, the matter is
discussed with senior management and investigated.
Action is taken on the results of the investigation,
and the results are reported to the administrative,
management and supervisory bodies as appropriate
and relevant.
Harvia has identified that the functions most vulnerable
to corruption and bribery from its internal operations
are the management, finance, those that procure
materials, supplies and services, as well as sales
operations, based on the high level of decision-making
authority, control over financial transactions and
potential for influence. In 2025, Harvia implemented an
online training program for these functions. A total of
147 employees work in these higher risk functions and
are expected to complete the training. 136 employees
completed the online training, resulting in a 93%
completion rate and covering 100% of the management
team. The training is mandatory for all employees in
the higher risk functions, but the completion may be
missing from, for example, recently started employees
and due to longer absences. These functions cover the
anti-corruption and anti-bribery topics also in team
meeting discussions on a regular basis to ensure the
consistent awareness and application of the policies
and practices. The Board of Directors approves the
Code of Conduct and, in doing so, demonstrates their
understanding of anti-corruption and anti-bribery
principles. This approval reflects their awareness
of relevant regulations, ethical standards, and best
practices in preventing misconduct. Harvia has not
organized a dedicated anti-corruption and anti-
bribery training for the Board of Directors during 2025.
Harvia has not had any cases or convictions related to
corruption or bribery in 2025 or 2024.
117Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Actions and resources related to business
conduct
To address the actual or potential impacts, risks
and opportunities described in chapter General
disclosures, section Material impacts, risks and
opportunities, Harvia has conducted several actions
which are continuous and divided and listed below
based on the subtopics defined in the ESRS 1,
Appendix A, that they are most material to.
CORPORATE CULTURE
- Harvia Code of Conduct and responsible business.
The Code of Conduct training is an integral part
of new employee onboarding, and Harvia requires
employees to complete the training bi-annually,
reinforcing awareness of ethical principles across
the organization. The online training platform,
piloted at the headquarters in late 2023, has
continued its phased expansion. In 2025, all Harvia
Finland employees, both blue-collar and white-
collar, were required to complete the Code of
Conduct e-learning program. In Harvia’s other
global units, the requirement currently applies to
allwhite-collar employees. Expansion of the training
requirement to all blue-collar employees across all
units is scheduled for 2026.
The completion rate for employees with access
to the training is 76% (70% in 2024), which is
approximately 59% (26%) of all Group employees.
- Whistleblowing channel for reporting possible
grievances. Harvia has a whistleblowing channel
through which Harvia Group employees or external
stakeholders can report any matter they find
unethical or suspected misconduct. Reports can
be made anonymously, and they are treated as
confidential. During 2025 or 2024, no reports were
made through the whistleblowing channel.
- Commitment to employee well-being and
satisfaction. Harvia evaluates its corporate culture
by conducting an annual employee survey. The
employee survey includes four indices: Commitment,
Leadership, Performance, and Engagement. The
results of the survey provide guidelines for the
development of personnel activities, leadership and
internal communication, which play an important role
in fostering Harvia’s corporate culture.
Harvia measured its Employee Net Promoter Score
(eNPS) for the first time in 2024, resulting in a
baseline score of +10 on a scale from –100 to +100. In
the 2025 survey, Harvia’s eNPS rose to +19, indicating
a clear positive shift. At the same time, the overall
response rate increased significantly, rising from 56%
in 2024 to 75% in 2025, strengthening the reliability
and representativeness of the results.
- Customer satisfaction survey. Harvia strives to
continuously improve its services and operations
and to build long-term trust with its customers.
To support this, the Group conducts an annual,
Group-wide customer satisfaction survey among its
business-to-business customers to gather structured
feedback on Harvia Group as a business partner. The
2025 survey was conducted at the end of the year
and sent to approximately 4,000 reseller customers
(11,000 in 2024). The response rate was 10%
(7% in 2024).
The results show variation across brands and
markets. At Group level, Net Promoter Score (NPS)
remained at a good level, and some brands achieved
excellent NPS scores. Across all Harvia Group brands,
customers expressed strong appreciation for product
quality and the breadth of the offering. In certain
markets, feedback highlighted challenges related to
customer service and technical support, which had a
negative impact on the Group’s overall NPS, resulting
in an average NPS of 53 (71 in 2024). The survey
provides valuable insights into customer perceptions
and supports the Group’s ongoing efforts to
understand and develop the customer experience.
- 75th anniversary and company culture. In 2025,
Harvia celebrated its 75th anniversary, marking
an important milestone in the Group’s history.
Throughout the year, the anniversary was celebrated
together with employees, customers, partners
and other stakeholders, with a shared emphasis
on appreciation, collaboration and continuity. The
celebrations provided an opportunity to thank
our stakeholders for their long-standing trust and
cooperation, while at the same time reinforcing
a forward-looking mindset. The anniversary year
helped strengthen a shared sense of purpose and
culture across the organization, supporting Harvia’s
ambition to shape the global sauna market so that
everyone has a reason to sauna.
MANAGEMENT OF RELATIONSHIPS WITH SUPPLIERS
INCLUDING PAYMENT PRACTICES
- Supplier Code of Conduct. 86% of existing suppliers
of goods and services at Harvia have agreed to
comply with the Code of Conduct. The company’s
goal is that all suppliers whose annual purchases by
Harvia total at least 20,000 EUR have committed
tothe Code of Conduct by 2027.
- Supplier visits, audits and assessments. Harvia
visits, audits or assesses its existing and new
suppliers according to company guidelines to gain
better view to manage the supplier’s integrity,
to mitigate risks, identify and seize possible
opportunities and drive positive ESG impact. They
also strengthen the mutual respect, trust and deeper
understanding of the needs and expectations of one
another promoting long-term partnerships.
118Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
CORRUPTION AND BRIBERY
- Training. Harvia provides annual anti-corruption
and anti-bribery training covering principles and
guidelines to prevent misconduct for all employees
identified most vulnerable to corruption and bribery
including management, finance, procurement, and
sales. In 2025, 136 out of 147 employees in these
high-risk functions completed the training, resulting
in a 93% completion rate, including 100% of the
management team.
Targets related to business conduct
In 2021 Harvia set Supplier Code of Conduct
commitment target related to business conduct as
part of Harvia’s Sustainability Program for 2022–2025.
Supplier Code of Conduct
Harvia requires that all its suppliers act responsibly and
that its suppliers commit to the Harvia Supplier Code
of Conduct, which is divided into ethics, corruption,
labor force, health and safety, and environment.
Commitment to the suppliers’ own respective code of
conduct is also accepted when the ethical principles
are similar to Harvia’s Supplier Code of Conduct.
The commitment includes suppliers of materials,
components, goods and services and covers all
Harvia Group companies. The target percentage is the
suppliers committed to the Supplier Code of Conduct
compared to all suppliers with annual purchases
at least EUR 20,000. Local units are responsible
for monitoring if the limit is exceeded based on
the purchases and report to the Group level. The
signed commitments are stored in Group’s contract
management database. All Harvia Group companies
are included in the reporting for 2025, ThermaSol,
Harvia Japan and Phoenix El-Mec being new additions
compared to 2024 reporting. The vast majority, 86% of
existing suppliers of goods and services, have agreed
to comply with the Harvia Supplier Code of Conduct.
The company’s goal is that all suppliers whose
annual purchases by Harvia total at least EUR 20,000
have committed to the Code of Conduct by 2027.
Commitment to the Supplier Code of Conduct has
increased by 31 percentage points since the base year.
The metric is not validated by an external body other
than the assurance provider.
When setting the target, Harvia has considered
alignment with International Frameworks such as
UNGuiding Principles on Business and Human Rights
(UNGPs), the OECD Guidelines for Multinational
Enterprises, and ILO labor standards. Also, stakeholder
views and expectations have been considered by
involving people at Harvia who regularly interact
with different stakeholders and thus understand their
expectations and needs, but stakeholders have not
been directly involved. Stakeholders expect Harvia to
act responsibly when it comes to any business conduct
-related topics. There have been no changes in the
target or corresponding metrics.
Payment practices
Harvia’s payment terms are typically between 14 to
60 days. 14 days is typical for small-sized service
providers and entrepreneurs, 30 days to medium-sized
companies and longer than 30 days payment terms
for the remainder. Harvia does not have Group wide
standard payment terms.
The average time Harvia takes to pay an invoice from
the date when the contractual or statutory term of
payment starts to be calculated is estimated to be
close to 30 days (30 in 2024). The effort required to
collect this information accurately and reliably in the
entire Group would be disproportionate. Reporting will
be developed to make the information more accessible
in the future.
Harvia is not a party to any legal proceedings due to
late payments.
Target
2021
Base year 2025 2024
Change to
base year
2027
Target
Suppliers committed to Supplier Code of Conduct (%) 55 86 87 +31 p.p. 100
119Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
CORE ELEMENTS
OF DUE DILIGENCE CHAPTER AND SECTION IN THE SUSTAINABILITY STATEMENT
Embedding
due diligence
in governance,
strategy and
business model
ESRS2 General Disclosures
Governance
Due Diligence
E1 Climate Change
Policies related to climate change mitigation and adaptation
E5 Resource use and circular economy
Policies related to resource use and circular economy
G1 Business conduct
Business conduct policies and corporate culture
Whistleblowing channel
Engaging
with affected
stakeholders in all
key steps of the due
diligence
ESRS2 General disclosure
Consideration of interests and views of stakeholders
G1 Governance
Business conduct policies and corporate culture
Whistleblowing channel
Identifying and
assessing adverse
impacts
ESRS2 General disclosure
Material impacts, risks and opportunities
Description of process to identify and assess material impacts,
risks and opportunities
Description of the process to identify and assess material climate-related
impacts, risks and opportunities
Description of the process to identify and assess material impacts,
risksand opportunities related to resource use and circular economy
Description of the process to identify and assess material impacts,
risksand opportunities related to business conduct
E1 Climate Change
Material impacts, risks and opportunities related to climate change
E5 Resource use and circular economy
Material impacts, risks and opportunities related to resource use
andcircular economy
G1 Governance
Material impacts, risks and opportunities related to business conduct
Business conduct policies and corporate culture
Appendices
APPENDIX 1: TABLE OF DUE DILIGENCE MAPPING
CORE ELEMENTS
OF DUE DILIGENCE CHAPTER AND SECTION IN THE SUSTAINABILITY STATEMENT
Taking actions
to address those
adverse impacts
E1 Climate Change
Material impacts, risks and opportunities related to climate change
Transition program for climate change mitigation
Actions and resources in relation to climate change policies
E5 Resource use and circular economy
Material impacts, risks and opportunities related to resource use
andcircular economy
Actions and resources related to resource use and circular economy
G1 Governance
Material impacts, risks and opportunities related to business conduct
Management of relationships with suppliers
Prevention and detection of corruption or bribery
Actions and resources related to business conduct
Tracking the
effectiveness of
these efforts and
communicating
E1 Climate Change
Actions and resources in relation to climate change policies
Targets related to climate change mitigation and adaptation
Energy consumption and mix
GHG emissions
E5 Resource use and circular economy
Actions and resources related to resource use and circular economy
Resource inflows
Resource outflows
G1 Governance
Actions and resources related to business conduct
Targets related to business conduct
120Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
APPENDIX 2: TABLE OF DISCLOSURE REQUIREMENTS IN ESRS COVERED BY SUSTAINABILITY STATEMENTS
The following table lists the disclosure requirements of the European Sustainability Reporting Standards (ESRS) that Harvia has followed in preparing this sustainability
statement based on double materiality, as well as information on those disclosure requirements that Harvia has assessed as immaterial based on double materiality. In
addition, the table indicates the phased-in disclosure requirements permitted by the ESRS.
The table can be used to navigate to information regarding the disclosure requirements in the sustainability statement.
Datapoint Disclosure requirement Chapter and section in the sustainability statement
Material /
Non-material
ESRS 2 General disclosures
BP-1 General basis for preparation of the sustainability statement ESRS2: General basis for preparation Material
BP-2 Disclosures in relation to specific circumstances ESRS2: General basis for preparation Material
GOV-1 The role of the administrative, management or supervisory bodies ESRS2: Governance Material
GOV-2
Information provided to and sustainability matters addressed by the undertaking’s
administrative, management and supervisory bodies
ESRS2: Information provided to and sustainability matters addressed by
administrative, management and supervisory bodies
Material
GOV-3 Integration of sustainability-related performance in incentive schemes ESRS 2: Sustainability-related remuneration Material
GOV-4 Statement on due diligence
ESRS 2: Due Diligence
Appendix 1: Table of Due Diligence Mapping
Material
GOV-5 Risk management and internal controls over sustainability reporting ESRS 2: Due Diligence Material
SBM-1 Strategy, business model and value chain ESRS 2: Strategy, business model and value chain Material
SBM-2 Interests and views of stakeholders ESRS 2: Consideration of interests and views of stakeholders Material
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and
business model
ESRS2: Double materiality assessment
ESRS2: Material impacts, risks and opportunities
Material
IRO-1
Description of the processes to identify and assess material climate-related impacts,
risks and opportunities
ESRS 2: Description of process to identify and assess material impacts, risks
and opportunities
Material
IRO-2 Disclosure requirements in ESRS covered by the company’s sustainability statement ESRS 2: Disclosure Requirements in ESRS covered by sustainability statements Material
ESRS E1 Climate change
E1. ESRS 2
GOV-3
Integration of sustainability-related performance in incentive schemes ESRS 2: Sustainability-related remuneration Material
E1-1 Transition program for climate change mitigation ESRS E1; Transition program for climate change mitigation Material
E1. ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction with strategy and
business model
ESRS2; Material impacts, risks and opportunities
ESRS E1: Material impacts, risks and opportunities related to climate change
Material
E1. ESRS 2
IRO-1
Description of the processes to identify and assess material climate-related impacts,
risks and opportunities
ESRS 2: Description of process to identify and assess material impacts, risks
and opportunities
Material
E1-2 Policies related to climate change mitigation and adaptation ESRS E1: Policies related to climate change mitigation and adaptation Material
121Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Datapoint Disclosure requirement Chapter and section in the sustainability statement
Material /
Non-material
E1-3 Actions and resources in relation to climate change policies ESRS E1: Actions and resources in relation to climate change policies Material
E1-4 Targets related to climate change mitigation and adaptation ESRS E1: Targets related to climate change mitigation and adaptation Material
E1-5 Energy consumption and mix ESRS E1: Energy consumption and mix Material
E1-6 Gross Scopes 1, 2, 3 and Total GHG emissions ESRS E1: GHG emissions Material
E1-7 GHG removals and GHG mitigation projects financed through carbon credits - Non-material
E1-8 Internal carbon pricing - Non-material
E1-9
Anticipated financial effects from material physical and transition risks
andpotential climate-related opportunities
Phase-in Material
ESRS E2 Pollution
E2. ESRS 2
IRO-1
Description of the process to identify and assess material impacts,
risks and opportunities related to pollution
ESRS 2: Description of process to identify and assess material impacts,
risksand opportunities
Material
E2-1 Policies related to pollution - Non-material
E2-2 Actions and resources related to pollution - Non-material
E2-3 Targets related to pollution - Non-material
E2-4 Pollution of air, water and soil - Non-material
E2-5 Substances of concern and substances of very high concern - Non-material
E2-6 Anticipated financial effects from pollution-related impacts, risks and opportunities - Non-material
ESRS E3 Water and marine resources
ESRS 2 IRO-1
Description of the processes to identify and assess material water and marine
resources-related impacts, risks and opportunities
ESRS 2: Description of process to identify and assess material impacts,
risksand opportunities
Material
E3-1 Policies related to water and marine resources - Non-material
E3-2 Actions and resources related to water and marine resources - Non-material
E3-3 Targets related to water and marine resources - Non-material
E3-4 Water consumption - Non-material
E3-5
Anticipated financial effects from water and marine resources-related impacts,
risks and opportunities
- Non-material
ESRS E4 Biodiversity and ecosystems
E4-1
Transition plan and consideration of biodiversity and ecosystems in strategy
and business model
- Non-material
E4. ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction with strategy
and business model
- Non-material
E4. ESRS 2
IRO-1
Description of the processes to identify and assess material biodiversity
andecosystems-related impacts, risks and opportunities
ESRS 2: Description of process to identify and assess material impacts,
risksand opportunities
Material
122Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Datapoint Disclosure requirement Chapter and section in the sustainability statement
Material /
Non-material
E4-2 Policies related to biodiversity and ecosystems - Non-material
E4-3 Action and resources related to biodiversity and ecosystems - Non-material
E4-4 Targets related to biodiversity and ecosystems - Non-material
E4-5 Impact metrics related to biodiversity and ecosystems change - Non-material
E4-6
Anticipated financial effects from biodiversity and ecosystem-related risks
andopportunities
- Non-material
ESRS E5 Resource use and circular economy
E5. ESRS 2
IRO-1
Description of the processes to identify and assess material resource use and circular
economy-related impacts, risks and opportunities
ESRS 2: Description of process to identify and assess material impacts,
risksand opportunities
Material
E5-1 Policies related to resource use and circular economy ESRS E5: Policies related to resource use and circular economy Material
E5-2 Actions and resources related to resource use and circular economy ESRS E5: Actions and resources related to resource use and circular economy Material
E5-3 Targets related to resource use and circular economy ESRS E5: Targets related to resource use and circular economy Material
E5-4 Resource inflows ESRS E5: Resource inflows Material
E5-5 Resource outflows ESRS E5: Resource outflows Material
E5-6
Anticipated financial effects from resource use and circular economy-related impacts,
risks and opportunities
Phase-in Material
ESRS S1 Own workforce
S1. ESRS 2
SBM-2
Interests and views of stakeholders ESRS 2: Consideration of interests and views of stakeholders Material
S1. ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction with strategy
andbusiness model
ESRS2: Double materiality assessment
ESRS2; Material impacts, risks and opportunities
Material
S1-1 Policies related to own workforce Phase-in Material
S1-2
Processes for engaging with own workers and workers’ representatives about
impacts
Phase-in Material
S1-3
Processes to remediate negative impacts and channels for own workers to raise
concerns
Phase-in Material
S1-4
Taking action on material impacts on own workforce, and approaches to mitigating
material risks and pursuing material opportunities related to own workforce, and
effectiveness of those actions
Phase-in Material
S1-5
Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Phase-in Material
S1-6 Characteristics of the undertaking’s employees Phase-in Material
S1-7 Characteristics of non-employee workers in the undertaking’s own workforce Phase-in Material
S1-8 Collective bargaining coverage and social dialogue - Non-material
S1-9 Diversity metrics Phase-in Material
123Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Datapoint Disclosure requirement Chapter and section in the sustainability statement
Material /
Non-material
S1-10 Adequate wages - Non-material
S1-11 Social protection - Non-material
S1-12 Persons with disabilities - Non-material
S1-13 Training and skills development metrics Phase-in Material
S1-14 Health and safety metrics Phase-in Material
S1-15 Work-life balance metrics Phase-in Material
S1-16 Compensation metrics (pay gap and total compensation) - Non-material
S1-17 Incidents, complaints and severe human rights impacts - Non-material
ESRS S2 Workers in the value chain
S2. ESRS
2SBM-2
Interests and views of stakeholders ESRS 2: Consideration of interests and views of stakeholders Material
S2. ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction with strategy
andbusiness model
ESRS2: Double materiality assessment
ESRS2; Material impacts, risks and opportunities
Material
S2-1 Policies related to value chain workers Phase-in Material
S2-2 Processes for engaging with value chain workers about impacts Phase-in Material
S2-3
Processes to remediate negative impacts and channels for value chain workers
toraise concerns
Phase-in Material
S2-4
Taking action on material impacts on value chain workers, and approaches to
managing material risks and pursuing material opportunities related to value chain
workers, and effectiveness of those actions
Phase-in Material
S2-5
Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Phase-in Material
ESRS S3 Affected communities
ESRS 2
SBM-2
Interests and views of stakeholders ESRS 2: Consideration of interests and views of stakeholders Material
ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction with strategy
andbusiness model
- Non-material
S3-1 Policies related to affected communities - Non-material
S3-2 Processes for engaging with affected communities about impacts - Non-material
S3-3
Processes to remediate negative impacts and channels for affected communities
toraise concerns
- Non-material
S3-4
Taking action on material impacts on affected communities, and approaches to
managing material risks and pursuing material opportunities related to affected
communities, and effectiveness of those actions
- Non-material
124Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Datapoint Disclosure requirement Chapter and section in the sustainability statement
Material /
Non-material
S3-5
Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
- Non-material
S4 Consumers and end-users
ESRS 2
SBM-2
Interests and views of stakeholders ESRS 2: Consideration of interests and views of stakeholders Material
ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction with strategy
andbusiness model
ESRS2: Double materiality assessment
ESRS2; Material impacts, risks and opportunities
Material
S4-1 Policies related to consumers and end-users Phase-in Material
S4-2 Processes for engaging with consumers and end-users about impacts Phase-in Material
S4-3
Processes to remediate negative impacts and channels for consumers and end-users
to raise concerns
Phase-in Material
S4-4
Taking action on material impacts on consumers and end-users, and approaches
tomanaging material risks and pursuing material opportunities related to consumers
and end-users, and effectiveness of those actions
Phase-in Material
S4-5
Targets related to managing material negative impacts, advancing positive impacts,
and managing material risks and opportunities
Phase-in Material
ESRS G1 Business conduct
G1. ESRS
GOV-1
The role of the administrative, supervisory and management bodies ESRS2: Governance Material
G1. ESRS
IRO-1
Description of the processes to identify and assess material impacts,
risksand opportunities
ESRS 2: Description of process to identify and assess material impacts,
risks and opportunities
Material
G1-1 Corporate culture and business conduct policies ESRS G1: Policies related to Business Conduct and Corporate Culture Material
G1-2 Management of relationships with supplier
ESRS G1: Management of relationships with suppliers
ESRS G1: Actions and resources related to business conduct
Material
G1-3 Prevention and detection of corruption and bribery
ESRS G1: Prevention and detection of corruption or bribery
ESRS G1: Actions and resources related to business conduct
Material
G1-4 Confirmed incidents of corruption or bribery ESRS G1: Prevention and detection of corruption or bribery Non-material
G1-5 Political influence and lobbying activities - Non-Material
G1-6 Payment practices ESRS G1: Payment practices Material
125Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
APPENDIX 3: TABLE OF DATAPOINTS THAT DERIVE FROM OTHER EU LEGISLATION
The following table includes all other data points derived from EU legislation listed in Annex B of ESRS 2. The table shows where the data points can be found in Harvia’s
sustainability statement and which data points have been assessed as immaterial based on the double materiality analysis.
Disclosure
requirement Datapoint Sustainability information
Chapter and section in the
sustainability statement
Reference to other EU legislation
SFDR Pillar 3
Benchmark
Regulation
EU Climate
Law
ESRS 2 GOV-1 21 (d) The board’s gender diversity ESRS 2: Governance x x
ESRS 2 GOV-1 21 (e) Percentage of board members who are independent ESRS 2: Governance x
ESRS 2 GOV-4 30 Statement of due diligence ESRS 2: Due Diligence x
ESRS 2 SBM-1 40 (d) i Involvement in activities related to fossil fuel Non-material x x x
ESRS 2 SBM-1 40 (d) ii Involvement in activities related to chemical production Non-material x x
ESRS 2 SBM-1 40 (d) iii Involvement in activities related to controversial weapons Non-material x x
ESRS 2 SBM-1 40 (d) iv Involvement in activities related to cultivation and production of tobacco Non-material x
ESRS E1-1 14 Transition plan to reach climate neutrality by 2050
ESRS E2: Transition program
forclimate change mitigation
x
ESRS E1-1 16 (g) Undertakings excluded from Paris-aligned benchmarks
ESRS E2: Transition program for limate
change mitigation l
x x
ESRS E1-4 34 GHG emissions reduction targets
ESRS E2: Targets related to climate
change mitigation and adaptation
x x x
ESRS E1-5 38
Energy consumption from fossil sources disaggregated by sources
(only high climate impact sectors)
ESRS E2: Energy consumption and mix x
ESRS E1-5 37 Energy consumption and mix ESRS E2 Energy consumption and mix x
ESRS E1-5 40–43 Energy intensity associated with activities in high climate impact sectors ESRS E2: Energy consumption and mix x
ESRS E1-6 44 Gross Scope 1, 2, 3 and Total GHG emissions ESRS E2: GHG emissions x x x
ESRS E1-6 53–55 Gross GHG emissions intensity ESRS E2: Energy consumption and mix x x x
ESRS E1-7 56 GHG removals and carbon credits Non-material x
ESRS E1-9 66 Exposure of the benchmark portfolio to climate-related physical risks Not applicable x
ESRS E1-9
66 (a);
66 (c)
Disaggregation of monetary amounts by acute and chronic physical risk Phase-in x
ESRS E1-9 67 (c)
Breakdown of the carrying value of its real estate assets
by energy-efficiency classes
Phase-in x
ESRS E1-9 69 Degree of exposure of the portfolio to climate-related opportunities Phase-in x
ESRS E2-4 28
Amount of each pollutant listed in Annex II of the E-PRTR Regulation
emitted to air, water and soil
Non-material x
ESRS E3-1 9 Water and marine resources Non-material x
ESRS E3-1 13 Dedicated policy Non-material x
ESRS E3-1 14 Sustainable oceans and seas Non-material x
126Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Disclosure
requirement Datapoint Sustainability information
Chapter and section in the
sustainability statement
Reference to other EU legislation
SFDR Pillar 3
Benchmark
Regulation
EU Climate
Law
ESRS E3-4 28 (c) Total water recycled and reused Non-material x
ESRS E3-4 29 Total water consumption in m3 per net revenue on own operations Non-material x
ESRS 2 SBM-3 - E4 16 (a) i Non-material x
ESRS 2 SBM-3 - E4 16 (b) Non-material x
ESRS 2 SBM-3 - E4 16 (c) Non-material x
ESRS E4-2 24 (b) Sustainable land / agriculture practices or policies Non-material x
ESRS E4-2 24 (c) Sustainable oceans / seas practices or policies Non-material x
ESRS E4-2 24 (d) Policies to address deforestation Non-material x
ESRS E5-5 37 (d) Non-recycled waste ESRS E5: Resource outflows x
ESRS E5-5 39 Hazardous waste and radioactive waste ESRS E5: Resource outflows x
ESRS 2 SBM-3 - S1 14 (f) Risk of incidents of forced labor Phase-in x
ESRS 2 SBM-3 - S1 14 (g) Risks of incidents of child labour Phase-in x
ESRS S1-1 20 Human rights policy commitments Phase-in x
ESRS S1-1 21
Due diligence policies on issues addressed by the fundamental
International Labor Organisation Conventions
Phase-in x
ESRS S1-1 22 Processes and measures for preventing trafficking in human beings Phase-in x
ESRS S1-1 23 Workplace accident prevention policy or management system Phase-in x
ESRS S1-3 32 (c) Grievance/complaints handling mechanisms Phase-in x
ESRS S1-14 88 (b) & (c) Number of fatalities and number and rate of work-related accidents Phase-in x x
ESRS S1-14 88 (e) Number of days lost to injuries, accidents, fatalities or illness Phase-in x
ESRS S1-16 97 (a) Unadjusted gender pay gap Non-material x x
ESRS S1-16 97 (b) Excessive CEO pay ratio Non-material x
ESRS S1-17 103 (a) Incidents of discrimination Non-material x
ESRS S1-17 104 (a)
Non-respect of UNGPs on Business and Human Rights principles
and OECD guidelines
Non-material x x
ESRS 2 SBM-3 - S2 11 (b) Significant risk of child labour or forced labour in the value chain Phase-in x
ESRS S2-1 17 Human rights policy commitments Phase-in x
ESRS S2-1 18 Policies related to value chain workers Phase-in x
ESRS S2-1 19
Non-respect of UNGPs on Business and Human Rights
and OECD guidelines
Phase-in x x
ESRS S2-1 19
Due diligence policies on issues addressed by the fundamental
ILO Conventions
Phase-in x
ESRS S2-4 36
Human rights issues and incidents connected to its upstream
and downstream value chain
Phase-in x
127Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Disclosure
requirement Datapoint Sustainability information
Chapter and section in the
sustainability statement
Reference to other EU legislation
SFDR Pillar 3
Benchmark
Regulation
EU Climate
Law
ESRS S3-1 16 Human rights policy commitments Non-material x
ESRS S3-1 17
Non-respect of UNGPs on Business and Human Rights,
ILO principles or OECD guidelines
Non-material x x
ESRS S3-4 36 Human rights issues and incidents Non-material x
ESRS S4-1 16 Policies related to consumers and end-users Phase-in x
ESRS S4-1 17
Non-respect of UNGPs on Business and Human Rights
and OECD guidelines
Phase-in x x
ESRS S4-4 35 Human rights issues and incidents Phase-in x
ESRS G1-1 10 (b)
Principles for anti-corruption or anti-bribery consistent
with the UN Convention against Corruption
ESRS G1: Policies related to Business
Conduct and Corporate Culture
x
ESRS G1-1 10 (d) Protection of whistle- blowers ESRS G1: Whistleblowing channel x
ESRS G1-4 24 (a) Fines for violation of anti-corruption and anti-bribery laws Not applicable x x
ESRS G1-4 24 (b) Standards of anti- corruption and anti-bribery
ESRS G1: Prevention and detection
of corruption or bribery
x
128Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Share capital and shares
Harvia’s registered share capital is EUR 80,000 and
at the end of the review period, the company held
18,694,236 (31 December 2024: 18,694,236) shares. The
ticker symbol for the shares is HARVIA and their ISIN
code is FI4000306873. Harvia has one series of shares,
and each share is entitled to one vote in the company’s
general meeting.
The company’s shares are included in a book-entry
system. The share trading volume on Nasdaq Helsinki
in January–December was EUR 299.0 million (311.4)
and 7,098,764 shares (8,089,223). The share’s volume
weighted average price during the review period was
EUR 42.12 (38.50), the highest price was EUR 52.40
(47.90) and the lowest EUR 33.95 (25.18). The closing
price of the share at the end of December 2025 was
EUR 42.20 (42.85). The market value of the share
capital on 31 December 2025 was EUR 802.0 million
(801.0) including own shares. According to Harvia’s
knowledge, the company’s shares were also traded on
Cboe Europe Equities, Cboe, ITG Posit, London Stock
Exchange, and Aquis Stock Exchange trading venues.
On 25 February 2025, The Board of Directors of
Harvia decided on a directed share issue without
consideration for the payment of rewards earned
under the company’s share-based incentive program.
The share payments concern the performance period
2022–2024 of the company’s share-based incentive
program launched in 2022. In the share issue, 9,852 own
shares held by the company were transferred without
consideration to the key employees participating in the
share-based incentive program in accordance with the
terms and conditions of the program.
On 23 May 2025 Harvia Plc transferred 1,555 own
shares held by the company to the members of the
Board of Directors without consideration as part of the
remuneration of the members of the Board of Directors,
in order to implement the decision of the Annual
General Meeting of Shareholders. The number ofshares
to be transferred to the members of the Board of
Directors was calculated by converting approximately
40% of the total monthly remuneration of a member
of the Board of Directors into shares at the volume
weighted average price of the share on the Nasdaq
Helsinki Ltd during 21 May 2025. The transfer of own
shares was based on the authorization granted by the
Annual General Meeting held on 8 April 2025. After the
transfer of shares, the company holds a total of 3,800
own shares.
The number of registered shareholders at the end
ofDecember was 30,425 (31,716), including nominee
registers. At the end of the review period, nominee-
registered and direct foreign shareholders held
47.0% (49.7) of the company’s shares. The ten largest
shareholders held a total of 22.1% (22.6) of Harvia’s
shares and votes at the end of December 2025.
Shareholder Profile 31 December 2025 Total % Total pcs
Foreign holding and nominee-registered 51.36 9,601,656
Households 19.19 3,588,544
Companies 14.08 2,632,467
Financial institutions and insurance companies 15.33 2,866,224
General Government 0.01 1 545
Harvia Oyj own shares 0.02 3 800
Total 100.00 18,694,236
129Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Shareholders
on 31 December 2025 Pcs
Percentage of shares
and votes
ONVEST OY 828,689 4.43
NORDEA NORDIC SMALL CAP FUND 634,747 3.40
EVLI FINNISH SMALL CAP FUND 493,216 2.64
WESTSTAR OY 435,868 2.33
EVLI FINLAND SELECT FUND 355,563 1.90
TIIPETI OY 342,790 1.83
ELO KESKINÄINEN TYÖELÄKEVAKUUTUSYHTIÖ 316,968 1.70
KESKINÄINEN ELÄKEVAKUUTUSYHTIÖ ILMARINEN 269,820 1.44
KTR-INVEST OY 242,625 1.30
MANTEREENNIEMI OY 214,645 1.15
VESTERINEN ARI JUHANI 151,650 0.81
PAJUHARJU TAPIO OLAVI 139,000 0.74
HARVIA TIMO TAPIO 103,316 0.55
SIJOITUSRAHASTO EQ SUOMI 97,073 0.52
OP FIN SMALL CAP 95,928 0.51
Total 4,721,898 25.26
* According to the fund’s announcement. Harvia has 45 % of nominee registered shareholders, and all the major nominee registered shareholders are not listed here.
Management holdings
Members of the Board of Directors, CEO and
Management Team of the Group, and the companies
under their control owned on 31 December 2025 a total
of 604,076 Harvia shares, corresponding to 3.2 percent
of shares and votes inthe company. (31 Dec 2024:
507,816 shares and 2.7%).
130Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Calculation of key figures and reconciliation of alternative
performancemeasures
Alternative performance measures, i.e. performance measures not based on financial
statement standards provide meaningful supplemental information by excluding
items that may not be indicative of the operating result or cash flows of Harvia.
Alternative performance measures enhance comparability from period to period and
are frequently used by analysts, investors and other parties. APMs should not be
considered as a substitute for measures of performance in accordance with the IFRS.
EUR thousand 1–12/2025 1–12/2024
Operating profit 38,301 35,486
Depreciation and amortization 7,447 6,976
EBITDA 45,748 42,455
Items affecting comparability
Business transactions related expenses 152 1,565
Restructuring expenses 611 50
Total items affecting comparability 763 1,615
Adjusted EBITDA 46,511 44,060
Depreciation and amortization -7,447 -6,976
Adjusted operating profit 39,064 37,100
Finance costs, net -5,118 -3,605
Adjusted profit before income taxes 33,945 33,495
131Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
CALCULATION OF KEY FIGURES
Key figure Definition
Operating profit Profit before income taxes, finance income and finance costs.
EBITDA Operating profit before depreciation and amortization
Items affecting comparability
Material items outside the ordinary course of business, which relate to i) costs related to the listing ii) strategic development projects, iii)
acquisition and integration related expenses, iv) restructuring expenses and v) net gains or losses on sale of assets and grants received.
Adjusted operating profit Operating profit before items affecting comparability.
Adjusted EBITDA EBITDA before items affecting comparability.
Adjusted profit before income taxes Profit before income taxes excluding items affecting comparability.
Earnings per share, undiluted Profit for the period attributable to the owners of the parent divided by weighted average number of shares outstanding.
Earnings per share, diluted
Profit for the period attributable to the owners of the parent divided by weighted average number of shares outstanding
taken into consideration the effects associated with any parent company’s obligations regarding the possible share issue in the future.
Net debt Lease liabilities and current and non-current loans from credit institutions less cash and cash equivalents.
Leverage Net debt divided by adjusted EBITDA (12 months).
Net working capital Inventories, trade and other receivables less trade and other payables.
Capital employed excluding goodwill Capital employed excluding goodwill is total equity and net debt less goodwill.
Adjusted return on capital employed (ROCE) Adjusted operating profit (12 months) divided by average capital employed excluding goodwill.
Operating free cash flow
Adjusted EBITDA added/subtracted by the change in net working capital in consolidated statement of cash flows less investments
in tangible and intangible assets.
Cash conversion Operating free cash flow divided by adjusted EBITDA.
Equity ratio Total equity divided by total assets less advances received.
Return on Equity (ROE) Profit for the period divided by average total equity
132Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Consolidated financial statements IFRS
Consolidated statement of comprehensive income
EUR thousand Note
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Revenue 2.1 198,900 175,206
Other operating income 2.3 1,528 1,001
Materials and services -71,229 -62,602
Employee benefit expenses 2.3 -42,029 -35,213
Other operating expenses 2.3 -41,423 -35,929
Depreciation and amortization 2.4 -7,447 -6,976
Operating profit 38,301 35,486
Share in profits and losses of associated
companies
3.1 0 -76
Finance income 5.4 1,081 1,959
Finance costs 5.4 -5,685 -4,601
Changes in fair values 5.1 -514 -887
Finance costs, net -5,118 -3,605
Profit before income taxes 33,182 31,880
Income taxes 6.3 -6,776 -7,638
Profit for the period 26,406 24,242
Attributable to:
Owners of the parent 26,437 24,242
Non-controlling interests -30 0
EUR thousand Note
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Other comprehensive income
Items that may be reclassified to profit or loss
in subsequent periods:
Translation differences 6.4 -7,142 2,778
Items that will not be reclassified to profit or loss:
Actuarial gains and losses 5.6 -224 -156
Gains and losses on cash flow hedges -9 -4
Other comprehensive income, net of tax -7,375 2,618
Total comprehensive income 19,031 26,860
Attributable to:
Owners of the parent 19,062 26,860
Non-controlling interests -30 0
Earnings per share for profit attributable
to the owners of the parent:
Basic EPS (EUR) 2.5 1.41 1.30
Diluted EPS (EUR) 2.5 1.40 1.29
The notes are an integral part of these consolidated financial statements.
133Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Consolidated statement of financial position
EUR thousand Note 31-Dec-2025 31-Dec-2024
ASSETS
Non-current assets
Intangible assets 3.2 19,202 16,874
Goodwill 3.2 89,250 91,046
Property, plant and equipment 3.3 31,554 28,173
Right-of-use assets 3.4 7,265 8,092
Derivative financial instruments 5.1 0 982
Deferred tax receivables 6.3 1,399 841
Total non-current assets 148,669 146,007
Current assets
Inventories 4.1 52,078 49,151
Trade and other receivables 4.2 24,595 22,278
Derivative financial instruments 5.1 468 0
Income tax receivables 291 626
Cash and cash equivalents 5.2 45,183 46,447
Total current assets 122,614 118,502
Total assets 271,283 264,509
EUR thousand Note 31-Dec-2025 31-Dec-2024
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 6.4 80 80
Other reserves 6.4 30,191 35,935
Retained earnings 6.4 72,696 62,583
Profit for the period 6.4 26,437 24,242
Total equity attributable to owners of the parent 129,404 122,840
Non-controlling interests 6.4 1,139 1,244
Total equity 130,543 124,085
Liabilities
Non-current liabilities
Loans from credit institutions 5.1 95,372 95,400
Lease liabilities 3.4 6,230 7,307
Derivative financial instruments 5.1 13 4
Deferred tax liabilities 6.3 2,241 2,773
Employee benefit obligations 5.6 1,462 1,754
Other non-current liabilities 5.1 931 2,965
Provisions 3.5 916 979
Total non-current liabilities 107,166 111,182
Current liabilities
Loans from credit institutions 5.1 4 5
Lease liabilities 3.4 1,303 951
Employee benefit obligations 5.6 149 159
Income tax liabilities 3,169 1,359
Trade and other payables 4.3 28,644 26,474
Provisions 3.5 305 295
Total current liabilities 33,574 29,243
Total liabilities 140,740 140,425
Total equity and liabilities 271,283 264,509
The notes are an integral part of these consolidated financial statements.
134Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Consolidated statement of changes in equity
EUR thousand
Attributable to owners of the parent
Note Share capital
Fair value
reserve
Invested unrestricted
equity reserve
Translation
differences
Retained
earnings
Equity
attributable
to owners of
the parent
Non-controlling
interests Total
Equity at 1 January 2024 80 33,334 -921 75,081 107,575 1,082 108,656
Share-based incentive plan 1,430 1,430 1,430
Dividend distribution -12,709 -12,709 -12,709
Prior year adjustment 210 210 210
Repurchase of own shares -483 -483 -483
Share-based payments -43 -43 -43
Total transactions with shareholders 6.4 903 -12,499 -11,595 -11,595
Profit for the period 24,242 24,242 24,242
Acquisitions 0 163 163
Gains and losses on cash flow hedges, net of tax -4 -4 -4
Actuarial gains and losses 5.6 -156 -156 -156
Translation differences 2,778 2,778 2,778
Total comprehensive income -4 -156 2,778 24,242 26,860 26,860
Equity at 31 December 2024 80 -4 34,081 1,857 86,825 122,840 1,244 124,085
Equity at 1 January 2025 80 -4 34,081 1,857 86,825 122,840 1,244 124,085
Share-based incentive plan 2,005 2,005 2,005
Dividend distribution -14,017 -14,017 -14,017
Derecognition of non-controlling interest 0 -75 -75
Transfer of own shares 73 73 73
Share-based payments -558 -558 -558
Total transactions with shareholders 6.4 1,519 -14,017 -12,498 -75 -12,572
Profit for the period 26,437 26,437 -30 26,406
Gains and losses on cash flow hedges, net of tax -9 -9 -9
Actuarial gains and losses 5.6 -224 -224 -224
Translation differences -7,031 -111 -7,142 -7,142
Total comprehensive income -9 -224 -7,031 26,325 19,062 -30 19,031
Equity at 31 December 2025 80 -13 35,378 -5,174 99,133 129,404 1,139 130,543
The notes are an integral part of these consolidated financial statements.
135Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Consolidated statement of cash flows
EUR thousand Note
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Cash flows from operating activities
Profit before taxes 33,182 31,880
Depreciation and amortization 2.4 7,447 6,976
Finance income and finance costs 5.4 5,113 3,605
Other adjustments 697 163
Cash flows before changes in working capital 46,440 42,625
Change in working capital
Increase (-) / decrease (+) in trade and other
receivables 4.2 -3,300 -589
Increase (-) / decrease (+) in inventories 4.1 -5,072 -8,745
Increase (+) / decrease (-) in trade and other payables 4.3 3,124 6,418
Cash flows from operating activities
before financial items and taxes 41,192 39,709
Interest and other finance costs paid -657 -56
Interest and other finance income received 143 188
Income taxes paid 6.3 -5,721 -8,173
Net cash from operating activities 34,957 31,668
EUR thousand Note
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Cash flows from investing activities
Purchases of tangible and intangible assets 3.2, 3.3 -14,771 -6,149
Sale of tangible and intangible assets 470 8
Proceeds from sale of subsidiaries, net of cash 3.1 50
Acquisition of subsidiaries, net of cash acquired 3.1 3.1 -1,253 -24 908
Dissolution of an associated company, net of cash 61 61
Interest and other finance costs received 943 938 938
Net cash from investing activities -14,561 -30,050
Cash flows from financing activities
Proceeds from non-current loans 5.1 20,000
Repayment of non-current liabilities 5.1 -258 71
Change in current liabilities 5.1 -1
Repayment of lease liabilities 3.4 -1,006 -927
Interest and other finance costs paid -5,145 -2,727
Dividends paid 6.4 -14,017 -12,709
Net cash from financing activities -20,426 3,708
Net change in cash and cash equivalents -30 5,325
Cash and cash equivalents at 1 January 5.2 46,447 40,581
Exchange gains/losses on cash and cash equivalents -1,234 540
Cash and cash equivalents at 31 December 45,183 46,447
The notes are an integral part of these consolidated financial statements.
136Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Notes to the Financial Statements
This section presents the Group’s accounting policies to the extent that they are not
disclosed in other notes. These principles have been applied consistently in all the periods
presented, unless otherwise stated.
Section 1: Basis Of Preparation
- Harvia Estonia Oü, former steam room equipment
and sauna products manufacturer (business
operations sold on 4 August 2025)
- LLC Harvia RUS, a former sales company. The
company has not been operative since Harvia’s exit
from Russia in 2022.
- Holding company Harvia US Holdings Inc. and
sauna manufacturing company Harvia US Inc. The
company also sells Harvia sauna products in the
Unites States. The companies were established in
November 2018.
- Harvia Holding GmbH which is parent of EOS
Saunatechnik GmbH in Germany. EOS manufactures
heaters and other sauna products. (78.6% acquired
on 30 April 2020, in July 2022 Harvia acquired the
minority shareholding)
- Kirami Oy manufacturing Scandinavian stillwater hot
tubs (acquired on 28 May 2021)
- Sauna-Eurox Oy specializing in selling heater stones
(acquired on 31 August 2021)
- Harvia Japan Limited, a company selling heaters and
saunas (established in August 2023)
1.1 GENERAL INFORMATION
Harvia Plc (the “Parent company”) is a Finnish
limited liability company and the parent company
of the Harvia Group (“Harvia”, “Harvia Group” or
the “Group”). The registered address of Harvia Plc is
Teollisuustie 1-7, PO BOX 12, 40951 Muurame, Finland.
Harvia is a leading global sauna company with
five brands well known in the market: Harvia, EOS,
Almost Heaven Saunas, Kirami, and ThermaSol. For
over 75 years, Harvia has expanded its operations
from a manufacturer of heaters to a provider of
wide range of sauna products. Harvia’s products are
exported to over 90 countries. The Group’s product
range includes sauna heaters, sauna rooms, infrared
and steam saunas, steam showers, spa components,
Scandinavian hot tubs, control units, heater stones,
sauna accessories and sauna interior solutions such
as sauna benches, audio speakers and lighting
solutions. The Group also provides limited range of
sauna installations, maintenance and repair services.
At the end of the financial year 2025 the company had
735 employees (31.12.2024: 696), of which 260 (255)
worked in Finland, 158 (145) in the United States, 141
(125) in Germany, 61 (61) in Romania, 57 (56) in China
and Hong Kong, 40 (34) in Austria, 16 (12) in Italy, 0
(6) in Estonia and 2 (2) in Sweden.
Harvia Plc is the parent company of the Group. The
following subsidiaries are consolidated to the Group’s
financial statements:
- Harvia Group Oy which is the second management
company of the Group
- Harvia Finland Oy, manufacturing heaters and sauna
and steam bath products
- Harvia Austria GmbH subgroup specialized in
control units, sauna products and electric heaters
(acquired on 4 November 2016)
- Harvia (HK) Sauna Co. Ltd subgroup manufacturing
sauna heaters, steam generators and components of
similar equipment
137
Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
- Phoenix El-Mec srl, a manufacturer of
electromechanical timers (acquired on 29
September 2023)
- Holding company TS Spa Holdings LLC (established
in July 2024) and ThermaSol Steam Bath LLC, a
manufacturer of high-end steam showers and steam
rooms (acquired on 31 July 2024).
The parent company Harvia Plc is a Finnish public
company, established according to the Finnish
legislation. Harvia Plc shares are traded at NASDAQ
OMX Helsinki main list. The Group financial statements
are available at the head office at Teollisuustie 1-7,
40950 Muurame and at the Group’s home pages
harviagroup.com.
The Board of Directors of Harvia Plc has approved
these consolidated financial statements for issue
on 11 February 2026. Under the Finnish Limited
Liability Companies Act, shareholders can approve
or disapprove the consolidated financial statements
in the Annual General Meeting held after the release.
The Annual General Meeting is also entitled to
amend the consolidated financial statements.
1.2 ACCOUNTING POLICIES
The consolidated financial statements of Harvia Group
have been prepared in accordance with International
Financial Accounting Standards (IFRS) as adopted
by the European Union. IFRS Accounting Standards
refer to the standards and interpretations applicable
by corporations set out by the Finnish Accounting
Act and other regulations set out on basis of this
ordinance enforced for application in accordance
with the procedure stipulated in the regulation (EC)
No 1606/2002 of the European Parliament and of
the Council. The notes to the consolidated financial
statements also comply with the Finnish accounting
and corporate legislation complementing the IFRS
Accounting Standards.
The figures presented in the financial statements are
rounded and therefore the sum of individual figures
may differ from the presented sum figure.
How should Harvia Group’s accounting
policies be read?
Harvia Group’s accounting policies of the financial
statements are described in conjunction with
each note in the aim of providing enhanced
understanding of each accounting area. The
table below summarizes the note in which each
accounting policy is presented and the relevant
IFRS Accounting Standard.
Accounting principle Note IFRS standardRevenue 2.1 Revenue IFRS 152.3 Other income and expense itemsEmployee benefits IAS 19 5.6 Defined benefit obligationsBusiness combinations 3.1 Business combinations IFRS 3Intangible assets 3.2 Intangible assets IAS 36, IAS 38Property, plant and equipment 3.3 Property, plant and equipment IAS 16, IAS 36Leases 3.4 Leases IFRS 16Provisions 3.5 Provisions IAS 37Inventories 4.1 Inventories IAS 2Financial assets and liabilities 5.1, 5.2 Financial assets and liabilities IAS 32, IFRS 7, IFRS 13, IFRS 9Financial risk management 5.3 Financial risk management IAS 32, IFRS 7, IFRS 13, IFRS 9Share based payments 6.2 Related party transactions IFRS 2Taxes 6.3 Taxes IAS 12 Shareholder’s equity 6.4 Shareholder’s equity IAS 1
138Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Historical cost convention
The consolidated financial statements of Harvia Group
have been prepared on a historical cost basis, unless
otherwise stated.
Foreign currency translation
Items included in the financial statements of the
group’s entities are measured using the currency of
the primary economic environment in which the entity
operates (the functional currency). The consolidated
financial statements are presented in thousands of
euros unless otherwise stated.
Foreign currency transactions are translated into
the functional currency using the exchange rates
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement
of such transactions and from the translation of
monetary assets and liabilities denominated in foreign
currencies at year end exchange rates are recognized
in profit or loss.
The results and financial position of foreign operations
that have a functional currency different from
the presentation currency are translated into the
presentation currency as follows:
- assets and liabilities for each balance sheet
presented are translated at the closing rate at the
date of that balance sheet
- income and expenses for each statement of profit or
loss are translated at average exchange rates, and
- all resulting exchange differences are recognized in
other comprehensive income.
New and amended standards and interpretations
Harvia has not applied any new standards or
interpretations with material impact on consolidated
financial statements.
Harvia has not early adopted any new or amended
standards or interpretations that have been issued
but are not yet effective. The new and amended
standards and interpretations issued by the IASB that
are effective in future periods are not expected to
have a material impact on the consolidated financial
statements of Harvia when adopted. The effects of
implementing IFRS 18 on the financial statements are
currently under evaluation. Harvia intends to adopt
these new and amended standards and interpretations,
if applicable, when they become effective and are
endorsed by the EU.
1.3 CRITICAL ACCOUNTING ESTIMATES AND
SIGNIFICANT MANAGEMENT JUDGMENTS
The Group’s most significant accounting policies
are primarily described together with the applicable
note. The preparation of Harvia Group’s consolidated
financial statements requires the use of estimates,
judgment and assumptions that may affect the
application of accounting policies and the recognized
amounts of assets and liabilities at the date of the
financial statements. In addition, the recognized
amounts of revenue and expenses during the periods
presented are affected. Actual results may differ from
previously made estimates and judgments.
Estimates and judgments are reviewed regularly.
Revisions to accounting estimates are recognized in
the period in which the estimate is revised and in all
subsequent periods.
The sources of uncertainty and management judgment
which have been identified by the Group, and which
are considered to fulfill these criteria are presented in
connection with the items considered to be affected.
The table below discloses where to find these
descriptions.
Sources of major estimation uncertainty and management judgment NoteSegment reporting 2.2Research and development expenses 3.2Provisions 3.5Defined benefit obligations 5.6Share-based payments 6.2Taxes 6.3
139Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Section 2: Group Performance
This section focuses on the Group’s result and how it is formed. The notes presented
on the following pages explain the different components of the Group’s operating
profit and provide information on the company’s earnings per share.
2.1 REVENUE
Harvia is one the world’s leading sauna companies. The
Group’s product range includes sauna heaters, sauna
rooms, infrared and steam saunas, steam showers
and steam rooms, steam sauna and spa components,
Scandinavian hot tubs, control units, sauna accessories
and sauna interior solutions such as sauna benches,
audio speakers and lighting solutions. The Group
also provides a limited range of sauna installation,
maintenance and repair services. In 2025, the biggest
market areas of Harvia were North America and
Continental Europe.
Harvia Group’s revenue includes mainly sales of
products. Only minor part comes from selling of sauna
installation, maintenance and repair services provided
COMPONENTS OF OPERATING PROFIT
EUR thousand 2025 % of revenue 2024 % of revenueRevenue 198,900 175,206 Other operating income 1,528 1% 1,001 1%Materials and services -71,229 -36% -62,602 -36%Employee benefit expenses -42,029 -21% -35,213 -20%Other operating expenses -41,428 -21% -35,929 -21%Depreciation and amortization -7,447 -4% -6,976 -4%Operating profit 38,301 19% 35,486 20%
by Group companies. Harvia sells most of its products
to retailers, distributors or sauna builders. Harvia
has customer contracts with clients, but typically
the contracts are short term (most typical contract
type is an annual contract). Long-term customer
relationships are based on customer loyalty. Harvia’s
largest customer relationship accounted for a total
of approximately 11% of the Group’s net sales in 2025
(2024: 9%).
During the period, revenue increased in all sales
regions, with significant growth in APAC & MEA and
North America. Growth in the APAC & MEA region
was driven by multiple key markets, such as China
and Japan. In North America, sauna market demand
continued to increase. While consumer confidence
remained below the recent years’ level, the sauna
market demand was driven by affluent consumers
rather than the general economic sentiment.
Sales in Continental Europe and Northern Europe grew
moderately. In Continental Europe, gradually improving
market conditions supported sales throughout the year,
while in Northern Europe, Harvia’s sales performance
improved especially during the second half of the year
and in Finland. In Northern Europe, there were some
positive signs of slowly improving market sentiment,
also in Finland, even if the macroeconomic challenges –
including weak consumer confidence and challenges in
the construction sector – remained largely unchanged.
140Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
2.1.1 ACCOUNTING POLICY
Harvia’s revenue mainly consists of the sales of
sauna and spa products that it has produced. Harvia
sells most of its products to retailers, distributors or
export companies. Sales of goods are recognized
when the control is transferred to the buyer. This
is when the goods have been delivered to the
buyer. Delivery is deemed to have taken place
when the products have been delivered to the
agreed location, and the risk of obsolescence and
damage of products has been transferred to the
customer. In addition, for certain contract terms, a
transportation service is considered to be a separate
performance obligation when control to the goods
is transferred to the buyer before the goods are
delivered. However, transportation service is
typically performed during the same day as control
is transferred to the customer and therefore the
revenue from goods and transportation service is
recognized at the same time.
Amounts disclosed as revenue are net of returns,
volume-based marketing subsidies and rebates.
Goods are often sold with volume discounts based
on aggregate sales over a 12-month period. Revenue
from sales is recognized based on the price specified
in the contract, net of the estimated volume-
based discounts. A contract liability is recognized
for expected volume discounts and marketing
subsidies payable to customers in relation to sales
made until the end of the reporting period. Certain
wholesale customers are given a right of return in
respect of certain campaign products if the goods
are not sold within six months after the purchase
or the legislation concerning products will change.
Products directly sold to consumers via online shops
are subject to a 14-day return policy. A contract
liability for the expected refunds to customers is
recognized as adjustment to revenue. Accumulated
experience is used to estimate and provide for the
discounts, volume-based marketing subsidies and
returns, and revenue is only recognized to the extent
that it is highly probable that a significant reversal
will not occur.
As for the sold products, they are usually given a
payment period between 30 and 120 days which
is consistent with the market practice, and thus no
finance element is included in the sales. A receivable
is recognized when the goods are delivered.
This is the point in time that the consideration is
unconditional because only the passage of time is
required before the payment is due.
Minority of Harvia Group’s revenue comes from
rendering services, but mainly from installation and
maintenance services. Revenue from services is
recognized in the accounting period in which the
services are rendered.
Marketing subsidies are allocated to allowances
included in the revenue and marketing costs
included in other expenses. Marketing subsidies
determined as the percentage of sales volume and
against which marketing services are not obtained,
are reducing the revenue. Other marketing subsidies
are allocated to operating expenses.
141Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Revenue by sales region
Harvia reports its revenue by sales region and
by product group.
EUR thousand 2025 % 2024 %Northern Europe* 46,560 23% 43,757 25%Continental Europe** 55,596 28% 52,686 30%North America*** 75,778 38% 62,049 35%APAC & MEA**** 20,967 11% 16,714 10%Total 198,900 100% 175,206 100%
* Finland, Sweden, Denmark, Norway, Iceland, Estonia, Latvia, Lithuania
** Europe excluding countries specified as Northern Europe
*** The United States and Canada
**** The region Asia-Pacific, Middle East, Africa, and all other countries excluding above
Revenue by product group
EUR thousand 2025 % 2024 %Heating equipment* 107,937 54% 94,012 54%Saunas and Scandinavian hot tubs 47,522 24% 46,758 27%Steam products** 17,239 9% 10,675 6%Accessories and heater stones 13,057 7% 12,060 7%Spare parts and services 13,144 7% 11,700 7%Total 198,900 100% 175,206 100%
* Sauna heaters, control units, IR components
** Including steam generators and other steam equipment
Revenue from projects recognized over time was
EUR 0 thousand in 2025 (2024: EUR 0 thousand).
Group does not disclose transaction price allocated
to fully or partly unfilled performance obligations,
because performance obligation is part of a contract
where contract period is less than one year.
142Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
2.2 SEGMENT REPORTING
The Group constitutes a single operating segment.
This is consistent with the way that internal reporting
is provided to the chief operating decision maker
(”CODM”) and the way that chief operating decision
maker determines allocation of resources and assesses
the performance.
2.2.1 SIGNIFICANT MANAGEMENT JUDGMENT
Determining operating segments
The management of Harvia Group has used
judgment when determining Group’s segment
reporting. Areas requiring judgment have been
the determination of CODM, the decisions made
and reports used when managing the Group. The
Board of Directors has been determined as the chief
operating decision maker. The Board of Directors,
taking into account its composition and its active
participation in key strategic and operative decision-
making, is responsible for allocating resources and
assessing the performance. The management of
Harvia Group, using its judgment, has determined
that the Group has one operating segment. The
company operates as a unified entity, with all
operations closely interconnected. The board
monitors the overall organization and ensures the
achievement of shared goals.
The Group’s non-current assets are allocated geographically as follows:
EUR thousand 31-Dec-2025 31-Dec-2024Finland 66,887 65,072Germany 18,350 15,486United States 58,542 60,717Other European countries 2,922 2,884Asia 1,969 1,848Total non-current assets 148,669 146,007
Revenue by sales regions has been presented in note 2.1.
143Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
2.3 OPERATING INCOME AND EXPENSES
This note provides information on other components
of operating profit: other operating income, material
and service expenses, employee benefit expenses,
other operating expenses as well as depreciations
and amortizations. Other operating income includes
gains on the sale of property plants and equipment
and sales of scrap metal, which is generated from
production.
Materials and services in the consolidated statement
of comprehensive income consist mainly purchases
of electricity and electronic components such as
heating elements, control units and wood timber for
saunas. The change in inventories of finished goods
and work in progress will adjust the income statement
The following table presents different components of employee benefit expenses:
EUR thousand 2025 2024Wages and salaries 35,979 29,913Pension costs 2,608 2,496Other employee benefit expenses 3,442 2,804Total 42,029 35,213
by the cost effect of items booked and removed from
inventory at the end of the period. The most significant
items of other operating expenses relate to sales (such
as sales freight costs), IT costs and marketing.
Harvia’s production facilities are characterized by
efficient production. Harvia has a long experience in
manufacturing of heaters and other sauna and spa
products, and the staff is qualified and experienced.
The company’s operations are highly integrated. Own
R&D department is specialized in the development
of production process and products. The company’s
own department in Muurame, specialized in tools
and machinery used in production, ensures the
cost-effectiveness of the production equipment and
machinery maintenance and repair.
Harvia Group employed a total of 735 employees as
of 31 December 2025 (2024: 696 employees). Of the
total average number of employees in 2025, 289 were
officers and 446 workers.
Pension plans of employees of the Group in Finland,
Austria, Romania, China, USA and Hong Kong are
defined contribution plans. Harvia has a defined benefit
pension plan in Germany, which is described further in
the note 5.6.
2.3.1 ACCOUNTING POLICY
A defined contribution plan is a pension plan
under which the Group pays fixed contributions
into pension insurances. The Group has no
legal or constructive obligations to pay further
contributions if the insurance does not hold
sufficient assets to pay all employees the
benefits relating to employee service in the
current and prior periods.
144Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Other significant expense items are as follows:
Other operating expenses
EUR thousand 2025 2024Sales and marketing* 21,304 19,175Travel and cars 2,132 1,883Plant & machinery maintenance 3,064 2,712Electricity, heating and water 1,889 1,910Audit, accounting, consulting and legal expenses 1,981 2,938Rents 691 642IT and telecommunication 3,309 2,068Voluntary staff expenses 1,557 985Insurances 1,009 943Office & administration 1,879 1,221Other** 2,606 1,451Total 41,423 35,929
* Sales and marketing include, among others, warranty costs, sales freight costs, sales commissions, and marketing expenses.
** Other expenses include patent expenses, membership fees, exchange rate differences, and other minor expense categories.
Audit, accounting, consulting and legal expenses and
other expense items include items that are related
to the Group’s strategic development projects,
acquisitions and loss on sales of assets and affect the
comparability between the different periods.
The auditor’s fees recognized during 2025 to Deloitte
Oy amounted to 266 EUR thousand (in 2024, fees to
PricewaterhouseCoopers: EUR 10 thousand and to
Deloitte Oy EUR 241 thousand). Of these, EUR 253
thousand were fees relating to statutory audit (2024:
EUR 235 thousand to Deloitte and EUR 10 thousand
to PricewaterhouseCoopers). EUR 12 thousand were
related to auditor opinions and certificates (2024:
EUR 6 thousand) and EUR 0 thousand were related
to other fees (2024: EUR 26 thousand). Audit fees
paid to other auditors were EUR 59 thousand (2024:
EUR 69 thousand) and EUR 0 thousand was related
to auditor opinions and certificates (2024: EUR 18
thousand) and EUR 0 thousand were related to other
fees EUR 46 thousand.
Harvia Group’s research and development department
employed an average of 27 people (2024: 21 persons),
and expensed research and development costs totaled
EUR 2,136 thousand in the financial year 2025 (2024:
EUR 1,759 thousand).
145Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
2.4 DEPRECIATION AND AMORTIZATION
2.4.1 ACCOUNTING POLICY
Property, plant and equipment
Land and buildings are recognized at historical cost.
Land is not depreciated. Buildings are depreciated
over their useful lives.
Machinery and equipment as well as other tangible
assets are depreciated over their useful lives. Most
machinery and equipment are depreciated in 3 to
10 years and exceptionally long-lasting machines in
20 years. Useful lives are based on estimates of the
period over which the assets will generate revenue.
Depreciation is recognized on a straight-line basis
based on the cost of the assets and estimated useful
lives. Impairment tests for depreciable non-current
assets are performed if there are indications of
impairment at the balance sheet date. Land areas are
also assessed for any possible impairment indicators.
- The useful lives of the assets are as follows:
- Buildings 15-30 years
- Machinery and equipment 3-20 years
- Other tangible assets 3-5 years
Intangible assets
Purchased and internally generated intangible assets
are recognized at historical cost. Intangible assets
acquired in business combinations are measured
at fair value at acquisition. Intangible assets are
amortized over 10 to 15 years except for capitalized
development costs and software licenses, which are
amortized in 3 to 5 years.
The following table presents depreciation and amortization by asset class:
EUR thousand 2025 2024Depreciation by classBuildings and constructions 1,088 1,017Machinery and equipment 2,207 1,923Other tangible assets 162 149Total property, plant and equipment 3,457 3,089Leased buildings and structures 934 706Leased machinery and equipment 260 199Total right-of-use assets 1,194 905
EUR tuhatta 2025 2024Amortization by class Development costs 653 489Customer relationships 756 1,074Brand 805 618Technology 179 111Other intangible assets 403 371Impairment charges 0 318Total intangible assets 2,797 2,982Total depreciation and amortization 7,447 6,976
146Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
2.5 EARNINGS PER SHARE
Basic earnings per share is calculated by dividing the
profit for the period attributable to the owners of the
parent company by the weighted average number
of shares outstanding during the financial period.
Diluted earnings per share is calculated on the same
basis as basic earnings per share unless it takes into
consideration the effects associated with any parent
company’s obligations regarding the possible share
issue in the future.
2025 2024Profit for the period attributable to the owners of the parent company, EUR thousand 26,437 24,242Weighted average number of shares outstanding during the financial period, ’000 18,688 18,689Basic earnings per share, EUR 1.41 1.30Share-based long-term incentive plan 132 137Weighted average number of shares outstanding during the year, diluted, ’000 18,820 18,827Diluted earnings per share, EUR 1.40 1.29
147Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Section 3: Capital Employed
This section describes the assets that are required to have to run the business and
Harvia’s acquisitions. The Information on net working capital is presented in section 4.
3.1 BUSINESS COMBINATIONS
For Harvia, acquisitions are a way to speed up the implementation of its strategy. In
2025, Harvia had no business combinations. In 2024, Harvia acquired ThermaSol Steam
Bath LLC, which is a leading manufacturer of high-end steam showers and steam
rooms in the United States.
3.1.2 ACCOUNTING ESTIMATES AND
MANAGEMENT JUDGMENT
Net assets acquired through business
combinations are measured at fair value. The
measurement of fair value of the acquired
net assets is based on market value of similar
assets (property, plant and equipment), or an
estimate of expected cash flows (intangible
assets). The valuation, which is based on
prevailing repurchase value, expected cash
flows or estimated sales price, requires
management judgment and assumptions. The
management trusts that the applied estimates
and assumptions are sufficiently reliable for
determining fair values.
3.1.1 ACCOUNTING POLICY
The acquisition method is applied for business
combinations. The consideration transferred for
the acquisition of a subsidiary is the fair values of
the assets transferred, the liabilities incurred to the
former owners of the acquiree and the shares issued
by the Group. The consideration transferred includes
the fair value of any asset or liability resulting from a
contingent consideration arrangement. Identifiable
assets acquired and identifiable liabilities assumed
in a business combination are measured initially at
their fair values at the acquisition date. Identifiable
assets include tangible assets as well as intangible
assets, such as customer relationships, brand and
technology.
Acquisition related costs are expensed as incurred
and presented as other operating expenses in the
income statement.
In the comparison period 2024, Harvia acquired ThermaSol Steam Bath LLC, which
is a leading manufacturer of high-end steam showers and steam rooms in the United
States. The transaction was closed on 31 July 2024. The purchase price was USD 30.4
million and Harvia financed the acquisition with a bullet loan of EUR 20 million and
with cash funds. In 2024, other non-current liabilities included EUR 2,739 thousand
holdback of purchase price consideration related to the acquisition of ThermaSol. In
2025, Harvia paid EUR 930 thousand of the withheld purchase price.
148Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
3.2 INTANGIBLE ASSETS AND IMPAIRMENT TESTING
The majority of the goodwill was recognized in connection to the formation of Harvia
group companies in 2014. There were no additions to goodwill in 2025. In the previous
year, goodwill increased due to the acquisition of ThermaSol.
3.2.1 ACCOUNTING POLICY
Goodwill
Goodwill arises on the acquisition of subsidiaries
and represents the excess of the consideration
transferred over the fair value of the identifiable net
assets acquired.
For the purpose of impairment testing, goodwill
acquired in a business combination is allocated to
cash generating units (CGU’s), that are expected to
benefit from the synergies of the combination. This
unit to which the goodwill is allocated represents the
lowest level within the entity at which the goodwill is
monitored for internal management purposes.
Goodwill impairment reviews are undertaken
annually or more frequently if events or changes in
circumstances indicate a potential impairment. The
carrying value of the CGU containing the goodwill is
compared to the recoverable amount, which is the
higher of value in use and the fair value less costs of
disposal. Any impairment is recognized immediately
as an expense and is not subsequently reversed.
Intangible assets
Intangible assets mainly include customer
relationships, brands and technology acquired
in business combinations that are recognized in
fair value at the date of acquisition. These are
amortized on a straight-line basis over 10-15 years.
Other intangible assets also include capitalized
development expenditures and software licenses
and are amortized on a straight–line basis in 3 to
5 years.
Capitalized development costs
Development costs are capitalized when certain
criteria related to economic and technical
feasibility are met and when it is expected that
the product will generate economic benefits in
the future. Capitalized development costs mainly
include materials, supplies and direct labor costs.
Development costs booked earlier as expenses
will not capitalized later. Intangible assets under
development are not amortized but are tested for
impairment at least annually.
149Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
The following tables present the movements in intangible assets including goodwill during the reported periods:
Development Advance Customer Other intangible EUR thousand Goodwillexpenditurepaymentsrelationships Brand Technologyassets Total2025 Cost at 1 January 91,046 4,252 1,451 10,311 9,581 1,836 4,351 122,827Business combinations 0Additions 886 4,875 755 6,516Disposals -104 -92 -293 -489Reclassifications 1,214 -1,805 496 -95Exchange differences -1,796 -9 0 -267 -499 -93 -35 -2,700Cost at 31 December 89,250 6,239 4,429 10,044 9,082 1,742 5,273 126,060Accumulated depreciation at 1 January -2,919 -5,889 -2,603 -475 -3,024 -14,909Amortization -653 -756 -805 -179 -403 -2,797Disposals 104 52 157Exchange differences -25 -26 -9 -61Accumulated depreciation at 31 December 0 -3,468 0 -6,671 -3,435 -663 -3,374 -17,610Net book amount at 1 January 91,046 1,334 1,451 4,422 6,978 1,361 1,327 107,918Net book amount at 31 December 89,250 2,772 4,429 3,373 5,647 1,079 1,899 108,451
150Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Development Advance Customer Other intangible EUR thousand Goodwillexpenditurepaymentsrelationships Brand Technologyassets Total2024 Cost at 1 January 73,402 3,771 491 7,391 4,961 746 3,614 94,377Business combinations 17,580 2,920 4,590 1,090 306 26,485Additions 311 1,541 63 1,916Disposals -54 -40 -95Reclassifications 166 -527 409 48Exchange differences 63 4 30 0 98Cost at 31 December 91,046 4,252 1,451 10,311 9,581 1,836 4,352 122,828Accumulated depreciation at 1 January -2,436 -4,818 -1,976 -358 -2,682 -12,271Amortization -489 -1,074 -618 -111 -371 -2,664Disposals 30 30Exchange differences 6 4 -9 -5 0 -5Accumulated depreciation at 31 December 0 -2,919 0 -5,889 -2,603 -475 -3,024 -14,909Net book amount at 1 January 73,402 1,335 491 2,573 2,985 388 932 82,106Net book amount at 31 December 91,046 1,334 1,451 4,422 6,978 1,361 1,328 107,919
151Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
IMPAIRMENT TEST FOR GOODWILL
The allocation of goodwill to the Group’s cash-generating units is presented below:
EUR thousand 31-Dec-2025 31-Dec-2024Northern Europe 41,422 42,476Central Europe 10,899 10,899North America 36,929 37,671Total 89,250 91,046
The management monitors goodwill at the level of Northern Europe, Central Europe
and North America CGU.
The recoverable amount of cash-generating units has been determined based
on value-in-use calculations using the projected discounted cash flows. These
calculations use pre-tax cash flow projections based on the budgets and forecasts
approved by management covering a five-year period.
Key assumptions in the projections are the development of net sales and key cost
items; the discount rate used in the calculation as well as the cash flow growth rate
after the five-year forecast period. The projections have been prepared to reflect the
past performance and expectations for the future considering the Group’s market
position and the general economic environment. Cash flows beyond the five-year
period are extrapolated using the estimated growth rates. The discount rate used
in the impairment testing is weighted average pre-tax cost of capital (WACC). The
discount rate reflects the total cost of equity and debt, and the market risks related
to the Group.
The key assumptions used for value-in-use calculations and basic information are as
follows:
31-Dec-2025 31-Dec-2024Long-term growth rate 1.0% 1.0%Average revenue growth for the forecast period Northern Europe 8.2% 7.4%Central Europe 7.1% 7.3%North America 15.6% 21.3%Average EBITDA for the forecast period (% of revenue)Northern Europe 28.3% 27.0%Central Europe 25.4% 24.9%North America 18.6% 23.4%Pre-tax discount rate Northern Europe 8.7% 9.4%Central Europe 9.3% 10.8%North America 10.5% 11.5%
As a result of the impairment tests performed no impairment loss has been recognized
for any period presented.
152Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
3.3 PROPERTY, PLANT, AND EQUIPMENT
In 2025, Harvia invested in its facilities in multiple sites, including a production layout
change in the Muurame factory and work to expand the facility in the Lewisburg, West
Virginia. In the US, Harvia also sold its former production site and the surrounding land
area in Renick, West Virginia that had previously been used for production purposes.
Harvia invested in a new state-of-the art coating system in Germany to increase
operational reliability and to support production capacity.
Harvia’s most significant land areas are located in Muurame and West Virginia.
Harvia’s biggest factory and office buildings are in Muurame, Finland, where the
Harvia Group’s management companies operate. The Group has large production
and warehouse facilities in West Virginia, USA. The production and office facilities of
EOS Saunatechnik GmbH are located in Diedorf, Germany. The factory in Gheorgheni,
Romania, is owned by a Romanian real estate company, K&R Imobiliare, which is wholly
owned by the Harvia Group. Kirami’s production and office premises are in Sastamala,
Finland, and Sauna-Eurox’s premises in Luvia, Finland. The factory in Guangzhou,
China, ThermaSol’s factory in Texas, USA and the factory in Belluno, Italy, operate
on leased premises. Harvia also has significant production machinery located in the
factories mentioned above.
For depreciations see also note 2.4.
3.3.1 ACCOUNTING POLICY
Property, plant and equipment are presented at acquisition cost less
depreciation and potential impairment losses. Subsequent costs are included in
the carrying amount when they can be measured reliably and future economic
benefits associated with the these will flow to the entity.
Significant leasehold improvements are included in the asset’s carrying amount
or are separated as a separate asset when it is probable that they will be
economically useful in the future and the costs incurred can be distinguished
from normal repair and maintenance costs.
The Group assesses at every reporting date whether there is any indication
of impairment of an asset. If there are any indications, the asset is tested for
impairment. An impairment test estimates the recoverable amount of the asset.
The recoverable amount is the higher of the asset’s fair value less costs to sell or
cash flow-based value-in-use. If the recoverable amount cannot be determined
at the level of an individual asset, the need for impairment is reviewed at the
level of the lowest cash generating unit (CGU), which is largely independent of
other units and its cash flows can be distinguished from the cash flows of other
similar entities.
153Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Changes in property, plant and equipment are presented in the following tables for the financial periods presented in the financial statements.
Buildings and Machinery and Other tangible Construction in EUR thousand Landstructuresequipmentassetsprogress Total2025 Cost at 1 Jan 3,086 31,067 28,468 2,215 382 65,218Business combinations 0Additions 16 916 2,226 158 5,798 9,114Disposals -155 -780 -39 -35 -116 -1,125Reclassifications 0 174 592 0 -1,105 -339Exchange differences -154 -395 -280 -31 -33 -893Cost at 31 Dec 2,793 30,982 30,968 2,307 4,925 71,975Accumulated depreciation at 1 Jan -16,198 -19,314 -1,533 -37,045Depreciation -1,088 -2,207 -162 -3,457Disposals 35 35Reclassifications 0Exchange differences 1 49 -4 46Accumulated depreciation at 31 Dec -17,285 -21,472 -1,663 0 -40,421Net book amount at 1 Jan 3,086 14,869 9,154 682 382 28,173Net book amount at 31 Dec 2,793 13,697 9,495 643 4,925 31,554
154Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Buildings and Machinery and Other tangible Construction in EUR thousand Landstructuresequipmentassetsprogress Total2024 Cost at 1 Jan 2,083 29,889 24,934 1,871 2,006 60,783Business combinations 18 15 17 50Additions 967 510 1,712 337 707 4,233Disposals -119 -119Reclassifications 471 1,804 1 -2,331 -56Exchange differences 17 183 120 6 326Cost at 31 December 3,086 31,067 28,468 2,215 382 65,218Accumulated depreciation at 1 Jan -15,139 -17,348 -1,393 -33,879Depreciation -1,017 -1,923 -149 -3,089Impairment 0Disposals 79 79Reclassifications 0Exchange differences -42 -121 8 -155Accumulated depreciation at 31 Dec -16,198 -19,314 -1,533 0 -37,045Net book amount at 1 Jan 2,083 14,750 7,586 478 2,006 26,904Net book amount at 31 Dec 3,086 14,869 9,154 682 382 28,173
155Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
3.4 RIGHT-OF-USE ASSETS
IFRS 16 Leases standard specifies the definition of leases, recognition and valuation of
the lease agreements and disclosures of the leases. According to the standard, a lease
is recognized as a right-of-use-asset (the right to use the leased asset) and as a lease
liability to pay rentals, recorded under interest-bearing liabilities.
3.4.1 ACCOUNTING POLICY
According to IFRS 16 Leases standard a lease is recognized as a right-of-use-
asset (the right to use the leased asset) and as a lease liability to pay rentals,
recorded under interest-bearing liabilities.
Lease liability is calculated discounting the future lease payments with the
incremental borrowing rate. The Group is implementing the exemptions
provided by the standard and is not recognizing low-value or short-term leases
as right-to-use-assets or lease liability. The Group applies same discount rate to
a group of similar lease contracts.
Lease period is the non-cancellable period of the lease plus periods covered by
an option to extend or an option to terminate if the lessee is reasonably certain
to exercise the extension option or not exercise the termination option. Right-
of-use assets are depreciated over their useful lives.
Lease liability and interest payment is presented in cash flow from financing
activities in the consolidated statement of cash flows.
156Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia’s most significant right-of-use assets are the factories in China and Italy, as well
as ThermaSol’s manufacturing facility in the United States.
Leases were recognized in the balance sheet and profit and loss statement as follows:
AMOUNTS RECOGNIZED IN THE BALANCE SHEET
Buildings and Machinery and EUR thousandstructuresequipmentRight-of-use assets Book amount at 1 Jan 2024 2,120 369Additions 158 104Acquisitions 6,182 Exchange differences 65 Depreciations -706 -199Book value at 31 Dec 2024 7,818 274Book amount at 1 Jan 2025 7,818 274Additions 20 550Acquisitions Disposals Exchange differences -205 Depreciations -934 -260Book value at 31 Dec 2025 6,700 564EUR thousand 2025 2024Lease liabilities Non-current 6,230 7,307Current 1,303 951Book value at 31 Dec 7,533 8,258
AMOUNTS RECOGNIZED IN PROFIT AND LOSS
EUR thousand 2025 2024Depreciation Buildings and structures -934 -706Machinery and equipment -260 -199 -1,194 -905Interest expense (included in finance cost) -223 -167Expense relating to short-term and low-value leases (other operating expenses) -691 -642Total amounts recognized in profit and loss -2,108 -1,714
Amounts booked to balance sheet are considered in the IAS 36 impairment testing.
Cash flows resulting from lease contracts have been disclosed in the consolidated
statement of cash flows and maturities of the lease contracts in note 5.3.
157Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
3.5 PROVISIONS
The Group provides warranties for its products and recognizes provision for this
obligation. The warranty provision includes all expenses required to settle the present
obligation. The amount of accrued estimated warranty costs is primarily based on
historical experience and current information on repair costs and processing costs of
the claims.
Changes in warranty provisions are as follows:
EUR thousand 31-Dec-2025 31-Dec-2024At 1 January 1,274 623Additions 1,221 1,274Reversed provisions -1,274 -623At 31 December 1,221 1,274of which current 305 295non-current 916 979Total 1,221 1,274
In 2025, Harvia’s provision decreased to EUR 1,221 thousand relating to revenue 2025
(2024: EUR 1,274 thousand). The provision is divided into current and non-current
liability. Most of the Harvia’s products sold have two years’ warranty for private use
and one years’ warranty for professional use. Warranty provision is calculated for
external warranty costs, for employees processing complaints and for warranty parts.
For exported products, no warranty provision is recognized as under these contracts,
the counterparty is responsible for warranty work.
3.5.2 ACCOUNTING ESTIMATES
The amount of warranty provision involves uncertainty as estimated warranty
claims may not be realized as predicted. Typically the claims are realised
frontloaded during the warranty period. Estimates and assumptions are
reviewed quarterly. The differences between actual and estimated warranty
claims may affect the amount of the provisions to be recognised in future
financial periods.
3.5.1 ACCOUNTING POLICY
Provision is made for estimated warranty claims in respect of products sold
which are still under warranty at the end of the reporting period. Management
estimates the provision based on historical warranty claim information and
any recent trends that may suggest future claims could differ from historical
amounts.
158Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Section 4: Net Working Capital
This section describes components of net working capital.
Net working capital management is one of the key elements of Harvia’s cash flow management. At times, Harvia
increases its level of net working capital due to risk management in procurement or preparation for high-demand
seasons.
EUR thousand 31-Dec-2025 31-Dec-2024Net working capital Inventories 52,078 49,151Trade receivables 20,702 19,173Other receivables 3,892 3,105Trade payables -13,668 -13,070Other payables -15,125 -13,404Total 47,879 44,955Change in net working capital in the statement of financial position 2,924 8,823Items not taken into account in change in net working capital in the statement of cash flows and the effect of which is included elsewhere in the statement of cash flows* 2,323 -5,907Change in net working capital in the statement of cash flows** 5,248 2,916
* The most significant items are related to finance costs, unrealized exchange rate gains and losses, acquisitions and investments.
** An increase in net working capital decreases cash flow, and a decrease in net working capital increases cash flow.
159Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
4.1 INVENTORIES
The inventory of the Group consists of raw materials such as steel, stone, and wood,
work in progress, as well as finished goods on sale (sauna heaters, barrel saunas,
Scandinavian hot tubs, and other Harvia Group’s products).
The inventory is divided as follows:
EUR thousand 31-Dec-2025 31-Dec-2024Materials and supplies 21,521 22,684Work in progress 3,787 3,322Finished goods 26,770 23,145Total 52,078 49,151
Harvia recognized items related to changes in the value and quantity of inventories
in its profit and loss for a total of EUR 343 thousand (in 2024: EUR 664 thousand).
Harvia’s material and service costs totaled EUR 71,229 thousand (2024: EUR 62,602
thousand). The inventory obsolescence reserve was EUR 1,145 thousand (31 December
2024: EUR 1,279 thousand).
4.1.1 ACCOUNTING POLICY
Materials and supplies, work in progress and finished goods are measured
at the lower of cost and net realizable value. Cost of work in progress and
finished goods comprises direct materials, direct labor costs and an appropriate
proportion of variable and fixed overhead expenditure, the latter being
allocated based on normal operating capacity. The acquisition cost is assigned
to individual items of inventory based on weighted average cost formula.
The cost of purchased inventory is determined after deducting rebates and
discounts. Net realizable value is the estimated selling price in the ordinary
course of business less the estimated costs of completion and the estimated
costs necessary to make the sale.
160Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
4.2 TRADE AND OTHER RECEIVABLES
Trade and other receivables consist of trade receivables, other receivables (mainly
VAT receivables) and prepayments and accrued income. Income tax receivables are
presented on a separate row in the consolidated statement of financial position.
Payment terms of trade receivables vary according to customer type and
creditworthiness. Advance payment is required from certain customers. Information on
the impairment of trade and other receivables and the Group’s exposure to credit risk,
refer to note 5.3.
The following tables present the different components of trade receivables and other
receivables:
EUR thousand 31-Dec-2025 31-Dec-2024Trade receivables 20,702 19,173Prepayments and accrued income 2,520 1,845Other receivables 1,373 1,260Total 24,595 22,278
Material items included in prepayments and accrued income:
EUR thousand 31-Dec-2025 31-Dec-2024Social costs 1 13Insurances 107 93Advance payments 1,083 898Other 1,328 842Total 2,520 1,845
Other accrued income included mainly items related to materials costs, marketing and
IT. Due to the short-term nature of the current receivables, their carrying amount at
initial recognition is assumed to be the same as their fair value.
4.2.1 ACCOUNTING POLICY
Trade receivables are amounts due from customers for goods sold or services
performed in the ordinary course of business. They are classified as at
amortized cost if collection of the amounts is expected in one year or less, they
are classified as current assets. Otherwise, they are presented as non-current
assets. Trade receivables are generally due for settlement within 30-120 days
and therefore are all classified as current. Impairment and other accounting
policies for trade and other receivables are outlined in note 5.3.
Other receivables include mainly prepaid expenses and accrued income from
the usual operating activities of the Group.
The receivables are included in current assets, except for maturities longer than
12 months after the end of the reporting period.
161Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
4.3 TRADE AND OTHER PAYABLES
Trade and other payables include trade payables, other liabilities, advance payments
and accrued expenses related the usual operating activities of the Group.
The following tables present the different components of trade and other payables:
EUR thousand 31-Dec-2025 31-Dec-2024Trade payables 13,668 13,070Advance payments 914 1,745Accrued expenses 11,737 11,246Other liabilities 2,324 413Total 28,644 26,474
Trade payables are unsecured and are usually paid within 30 to 60 days of recognition.
Material items included in accrued expenses:
EUR thousand 31-Dec-2025 31-Dec-2024Accrued personnel costs 6,395 5,748Accrued annual discounts 1,063 1,145Accrued interests 720 980Other 3,560 3,373Total 11,737 11,246
Other accrued expenses included items related to material costs, marketing, and sales
commissions. At initial recognition the carrying amounts of trade and other payables
are assumed to be the same as their fair values due to their short-term nature.
4.3.1 ACCOUNTING POLICY
Trade payables are payment obligations arising from goods or services acquired
from suppliers or service providers in the ordinary course of business. Trade
payables are classified as current liabilities if payment is due within one year
or less. Trade and other payables are classified as other financial liabilities at
amortized cost.
162Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Section 5: Net Debt And Contingencies
This section describes how the Group has financed its operations. This section also describes exchange
rate, interest rate, liquidity and credit risks related to financial assets and liabilities. This section also
provides information how the Group addresses above mentioned risks.
5.1.1 ACCOUNTING POLICY
Borrowings are recognized initially at fair value, net of transaction costs
incurred. Borrowings are subsequently carried at amortized cost; any difference
between the proceeds (net of transaction costs) and the redemption value is
recognized in the income statement over the period of the borrowings using the
effective interest rate method.
Fees paid on the revolving credit facility arrangements are capitalized as a
prepayment for liquidity services and amortized as expense over the period
of the facility to which it relates, if there is no certainty that some or all of the
facility will be drawn down. This reflects the finance cost of the undrawn facility.
To the extent that it is probable that some or all of the facility will be drawn
down, the fees are recognized as transaction costs when the loan is drawn
down and recognized in profit and loss using the effective interest rate method.
Financial instruments measured at fair value under IFRS13 are divided into
three different levels according to their valuation principles: level 1 instruments
are valued at the quoted market price; level 2 instruments are valued using
information other than quoted market prices and level 3 instruments are valued
based solely on information other than quoted market prices.
5.1 BORROWINGS AND OTHER FINANCIAL LIABILITIES
In 2025, Harvia renegotiated the terms of EUR 36,5 million term loan and EUR 5 million
revolving credit limit, which mature in February 2029. The Group uses interest rate
swap agreements to hedge against interest rate risk arising from variable rate of bank
loans.
The following tables present the classification of the financial liabilities as well as
carrying values:
Other financial liabilities at EUR thousandamortized cost31-Dec-2025 Liabilities per balance sheet Loans from credit institutions 95,376Lease liabilities 7,533Other non-current liabilities 931Trade and other payables 15,992Total 119,833
Financial liabilities at amortized cost31-Dec-2024 Liabilities per balance sheet Loans from credit institutions 95,405Lease liabilities 8,258Other non-current liabilities 2,965Trade and other payables 13,483Total 120,111
163Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
LOANS FROM CREDIT INSTITUTIONS AND
SHAREHOLDER LOANS
Loans from credit institutions
Harvia has term loans totaling EUR 95,500 thousand
and EUR 10,000 thousand revolving credit limit. Harvia
has not utilized the revolving credit limit. The term
loans mature in three instalments. In 2025, Harvia
renegotiated the terms of EUR 36,500 thousand
term loans and 5,000 thousand revolving credit limit
which mature in February 2029. The term loan of EUR
39,000 thousand and the revolving credit limit EUR of
5,000 thousand mature in March 2027, and the term
loan of EUR 20,000 thousand matures in July 2027.
The nominal interest of the loans is tied to Euribor, and
its margin is tied to the Group’s net debt / adjusted
EBITDA ratio.
Compliance with loan covenants
The bank loans include covenants according to the
financing agreement, such as net debt to adjusted
EBITDA ratio and interest cover ratio. Covenants are
monitored quarterly. The Group has complied with all
covenants related to new bank loans in 2025 and 2024.
Fair values
The fair values of non-current borrowings are based on
discounted cash flows using a current borrowing rate.
They are classified as level 2 in the fair value hierarchy
due to the use of unobservable inputs, including own
credit risk.
The Group’s management has determined that there
is no essential difference between carrying value and
fair value. Margins of loans are considered to reflect
different conditions and the subordination of the loans
with reasonable accuracy.
effect of interest rate fluctuations to manage exposure
to interest rate risk. on the Group’s annual result.
Nature of the risk being hedged is the interest rate risk
relating to cash flows from the increase and variability
in 1-months Euribor. This hedge is classified as a cash
flow hedge, and it’s categorized under Level 2 of the
fair value hierarchy.
Harvia is exposed to interest rate risk in the floating
interest rate payments on loans drawn under the Loan
Facility agreement. The interest rate risk is that the
future cash flows will fluctuate because of changes
in market interest rates. The objective is to minimize
the effect of interest rate fluctuations on the Group’s
annual result.
There is an economic relationship between the hedged
item and the hedging instrument: The loan interest
payments are linked to 1-month Euribor and derivative
payments received are linked to 1-month Euribor. The
interest rate setting for both hedging instrument and
the hedged item are defined on the same date.
The effect of credit risk does not dominate the value
changes that result from that economic relationship.
A condition for applying hedge accounting is that
the effect of credit risk does not dominate the value
changes that result from the economic relationship
that is the subject of the hedge. Standard & Poor’s
long-term rating for the derivative counterparty
Danske Bank is AA-. The credit risk is considered low
and does not dominate the hedge relationship.
The hedge ratio of the hedging relationship is the
same as that resulting from the quantity of the hedged
item that the entity hedges and the quantity of the
DERIVATIVE FINANCIAL INSTRUMENTS
5.1.2 ACCOUNTING POLICY
Derivative financial instruments are initially
recognized at fair value on the date a derivative
contract is entered into and subsequently
measured per contract at their fair value through
profit or loss if they do not qualify for hedge
accounting. If a derivative is designated as a
hedging instrument, its fair value is recognized
in the balance sheet in the fair value reserve.
The fair value of an interest rate swap varies
according to the expectations of the interest rate
markets and the change in value is recognized,
on a contract-by-contract basis, either in the
income statement under changes in the fair value
of financial items or, by using hedge accounting,
in the fair value reserve in equity.
The Group uses derivative financial instruments such
as interest rate swaps to hedge its risks associated
with interest rate fluctuations. The fair value of the
interest rate swap fluctuates according to interest
rate market expectations, and the change in value is
recorded per contract in either net financial items as
changes in fair value or by hedging it in the fair value
reserve in equity.
Harvia is exposed to interest rate risk in the floating
interest rate payments on loans drawn under the Loan
Facility agreements. The interest rate risk is that the
future cash flows will fluctuate because of changes in
market interest rates. The objective is to minimize the
164Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
hedging instrument that the entity uses to hedge that
quantity of hedged item. The hedge ratio is 1:1 e.g.
EUR 20 million/EUR 20 million and 1-month Euribor/1-
month Euribor. Prospectively the hedged item and
the hedge instruments have terms and conditions that
meet 1:1. Harvia will evaluate qualitatively each quarter
that the conditions have not changed.
The Group had interest rate swap agreements with
fair value of EUR 468 thousand and -13 thousand at
the end of 2025 (2024: EUR 982 thousand and EUR -4
thousand). Changes in the fair value of the swap have
no impact on cash flow. Nominal values of the interest
rate swap contracts were EUR 36,500 thousand and
EUR 20,00 thousand as of 31 December 2025 (2024:
EUR 36,500 thousand and EUR 20,000 thousand). The
interest rate swap contracts mature on 15 December
2026 and 22 July 2027.
The fair value of interest rate swap is calculated as the
present value of the estimated future cash flows based
on observable yield curves. The fair value is level 2 in
the fair value hierarchy.
OTHER NON-CURRENT LIABILITIES
The Group had long-term additional purchase price
liabilities related to acquisitions of EUR 0 thousand
(2024: 226 thousand). In 2025, Harvia paid EUR 300
thousand purchase price related to the acquisition of
Sauna-Eurox Oy in 2021. Harvia’s additional purchase
price liabilities were linked to the development of the
key performance indicators of the acquired company
(typically to EBITDA).
5.1.3 ACCOUNTING POLICY
Harvia’s other long-term liabilities consist of
redemption and additional purchase price liabilities
related to acquisitions. Redemption and additional
purchase liabilities are initially recognized at fair
value at the date of acquisition of the subsidiaries.
Subsequently, they are measured at fair value
through profit or loss or equity.
Additionally, Harvia paid EUR 953 thousand purchase
price holdback related to the acquisition of ThermaSol
in 2024. Following this payment, other long-term
liabilities include EUR 930 thousand of the purchase
price withheld from the ThermaSol acquisition, which
is scheduled to be paid in two instalments over the
next two years.
165Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
5.2 CASH AND CASH EQUIVALENTS
Cash and cash equivalents amounted to EUR 45,183
thousand at the end of 2025 (31 December 2024:
EUR 46,447 thousand).
5.3.1 ACCOUNTING POLICY
Classification and measurement of financial assets
The Group’s financial assets consist of trade
receivables, certain other receivables and accrued
income as well as cash and cash equivalents. A
financial asset is measured at fair value at initial
recognition, to which are added transaction costs
directly attributable to the acquisition, excluding
trade receivables that are measured at transaction
price when they do not contain a significant
financing component.
Harvia’s management has determined which business
models are applied for the Group’s financial assets
at the date of application of IFRS 9 as of January 1,
2018, and classified financial assets into categories
according to IFRS 9. All financial assets of the group,
excluding possible derivative assets, are classified as
at amortized cost.
Impairment of financial assets
Financial assets consist mainly of trade receivables
and for the recognition of expected credit losses the
group applies the simplified approach, which permits
the use of the lifetime expected loss provision for all
trade receivables. To measure the expected credit
losses, trade receivables have been grouped based
on shared credit risk characteristics and the days past
due. Expected credit losses also incorporate forward
looking information.
Classification and measurement of financial
liabilities
Loans from credit institutions are recognized initially
at fair value, net of transaction costs incurred.
Borrowings are subsequently carried at amortized
cost; any difference between the proceeds (net
of transaction costs) and the redemption value is
recognized in the income statement over the period
of the borrowings using the effective interest rate
method.
Fees paid on the revolving credit facility arrangements
are capitalized as a prepayment for liquidity services
and amortized as expense over the period of the
facility to which it relates, if there is no certainty that
some or all of the facility will be drawn down. This
reflects the finance cost of the undrawn facility. To
the extent that it is probable that some or all of the
facility will be drawn, the fees are partly recognized as
transaction costs, when the loan is drawn, recognized
in the income statement over the period of the
borrowings using the effective interest rate method.
Derivative financial instruments
Derivative financial instruments are initially recognized
at fair value on the date a derivative contract is
entered into and subsequently measured per contract
at their fair value through profit or loss if they do
not qualify for hedge accounting. If a derivative is
designated as a hedging instrument, its fair value
is recognized in the balance sheet in the fair value
reserve.
In the consolidated statement of cash flow, cash and
cash equivalents include cash in hand and deposits
held at call from banks. The short-term deposits are
considered readily convertible to cash as those have
original maturities of three months or less. Cash and
cash equivalents on the statement of financial
position equals the cash and cash equivalents of
the consolidated statement of cash flows. Cash
and cash equivalents are financial assets and
valued at amortized cost.
5.3 FINANCIAL RISK MANAGEMENT
AND CAPITAL MANAGEMENT
This note explains Harvia Group’s exposure to financial
risks and how these risks could affect Harvia Group’s
future financial performance. Profit and loss information
for the period has been included where relevant to add
further context.
This note also describes how the Group monitors
its capital structure and what are the targets for
the structure.
166Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
The Group’s overall risk management program focuses on the unpredictability of
financial markets and seeks to minimize potential adverse effects on the Group’s financial
performance. Derivative financial instruments are used to hedge certain risk exposures.
The Group’s risk management is carried out by a finance department under guidelines
provided by the Board of Directors. Finance department identifies, evaluates and
hedges financial risks in close co-operation with the Group’s business operations.
FOREIGN EXCHANGE RISK
Harvia operates in several countries. In 2024, Harvia was mainly exposed to transaction
risk and translation risk associated with the US dollar arising when the parent
company’s investments to subsidiaries outside euro area are converted into euros.
Transaction risk associated with subsidiaries outside the euro area consists primarily of
trade receivables and trade payables from these subsidiaries arising in the operational
business of the Group companies.
Due to the fluctuation of US dollar, the transaction risks have been on the rise during
2025, but Harvia has not yet hedged against these risks by currency derivatives. In
other respects, the Group’s income and expenses are denominated almost exclusively in
euros and U.S. dollars. The Group’s net investment to units outside the euro area consist
of the investments in subsidiaries in China, Hong Kong, Sweden, Japan, Russia, Romania
and the United States. Foreign exchange risk related to net investments is not hedged.
During the financial period, the following foreign exchange-related amounts were
recognized in profit or loss and other comprehensive income:
EUR thousand 2025 2024Amounts recognized in profit or loss Net foreign exchange gains/losses included in operating income/expenses 9 56Net foreign exchange gains/losses included in finance income/costs -1,313 451Total net foreign exchange gains/losses recognized in profit before income tax for the period -1,303 507Gains/losses recognized in other comprehensive incomeTranslation differences of foreign operations -7,031 2,778
INTEREST RATE RISK
The Group faces interest rate risk primarily from its non-current borrowings with
variable rates, which expose it to cash flow interest rate risk. To manage this risk,
Harvia converts a portion of its floating-rate loans into fixed-rate loans using interest-
rate swaps. As a result, the overall interest rates are lower than what the Group would
have paid if it had borrowed at fixed rates directly.
Harvia has interest rate swaps with nominal values of EUR 36.5 million and 20.0 million.
The following table shows the sensitivity analysis of Harvia’s interest-bearing liabilities
to a 1% increase in interest rates:
EUR thousand 2025 2024Interest bearing liabilities 95,376 95,405Leasing liabilities 7,533 8,258Interest rate swap 56,500 56,500Share of liabilities covered with interest rate swaps 55% 55%Impact on interest costs if interest rates were to rise by 1% 1,029 1,037Interest rate swap -565 -565Total, Impact on interest costs if interest rates were to rise by 1% 464 472
* The amount of debt to be tested is the nominal value of Harvia’s cash flows related to loan and lease agreements,
which is also presented in the reconciliation of net debt and cash flow.
The Group’s target is to keep closer to 60% of its borrowings at fixed rates and, if
necessary, use interest rate swaps to achieve this. The Group’s variable rate loans
in 2025 and 2024 were mainly denominated in euros and the interest rate swaps
covered 55% of principal outstanding on 31 December 2025 and 55% on 31 December
2024. Based on the sensitivity analysis, if the interest rate on uncovered variable rate
borrowings were to increase by one percentage point with all other variables held
constant, the Group’s interest expense would increase by EUR 464 thousand (in 2024:
EUR 488 thousand).
167Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
During 2025, EUR 249 thousand (2024: EUR 96 thousand) was recognized in the profit and loss statement in relation
to credit losses. The loss allowance on 31 December 2025, EUR 922 thousand (2024: EUR 788 thousand), is specified
as follows:
31-Dec-2025Allowance for EUR thousand Gross book valuebad debtNot due 16,476 8Overdue by 0Less than 30 days 1,714 730-60 days 949 1261-90 days 414 1091-180 days 874 87181-360 days 476 119Over 360 days 720 678Total 21,624 922
31-Dec-2024Allowance for EUR thousand Gross book valuebad debtNot due 14,895 8Overdue by Less than 30 days 2,578 1030-60 days 1,006 1361-90 days 143 491-180 days 296 30181-360 days 401 100Over 360 days 642 623Total 19,961 788
The other classes within other receivables do not contain essentially impaired or overdue assets. Based on the credit
history of these other classes, it is expected that these amounts will be received when they are due. The Group does
not hold any collateral in relation to these receivables.
CREDIT RISK
Credit risk refers to the risk that a counterparty will
default on its contractual obligations resulting in a
financial loss to the company. Credit risk arises from
cash and cash equivalents, as well as from credit
exposures to customers from outstanding receivables.
Insurance for certain customers and for some
customers advance payments are in use. The credit
risk on cash and cash equivalents is limited because
the counterparties are banks with high credit ratings
assigned by international credit rating agencies. To
spread the credit risk, Harvia deposits its cash reserves
with different banks.
The Group considers that there is evidence of
impairment if any of the following indicators are
present:
- significant financial difficulties of the debtor
- probability that the debtor will enter bankruptcy
or financial reorganization, and
- default or delinquency in payments
In certain circumstances, Harvia has supported its
distribution and dealership relationships by accepting
longer than ordinary terms of payment periods and
by agreeing on a new payment plan in respect of
receivables due. Trade receivables increased due to
strong demand in North America supported by the
growing awareness of sauna and its health benefits
as well as strong consumer confidence and economic
conditions. North American customers have short
payment times, as most transactions are made with
credit cards. Harvia has no significant concentration of
credit risks due to the large number and geographic
dispersion of companies that comprise the Group’s
customer base.
168Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
LIQUIDITY RISK
Cash flow forecasting is performed at the Group level.
Group finance department monitors Harvia Group’s
liquidity requirements to ensure it has sufficient
cash to meet operational needs while maintaining
sufficient headroom on its undrawn committed loan
facility so that the Group does not breach loan limits
or covenants on its loan facility. At the end of the
reporting period, Harvia is in clear compliance with
the loan covenants.
The Group has undrawn interest-bearing facilities
(revolving credit facility) of EUR 10,000 thousand as
of 31 December 2025 (EUR 10,000 thousand as of 31
December 2024). The undrawn interest-bearing facility
is available constantly. Operating cash flows and liquid
funds are the main source of financing for the future
payments together with possible new debt or equity
financing.
The table below shows future repayments, interest
expenses and capitalized interest expenses of Group’s
financial liabilities divided into maturity groupings based
on the remaining contractual maturity at the balance
sheet date. The amounts disclosed in the table are the
contractual undiscounted cash flows. Harvia has interest
rate swaps with nominal values of EUR 36.5 million and
EUR 20.0 million that mature on 15 December 2026
and 22 July 2027. Fair value of the interest rate swap
fluctuates according to interest rate market expectations,
and the change in value is recorded in the net financial
items as changes in fair value for the old contract, and
for the new contract, in the fair value reserve in equity.
Between 1 and Between 2 and Total contractual EUR thousand Less than 6 months 6 – 12 months2 years5 years Over 5 yearscash flows Carrying amount31-Dec-2025Non-derivativesLoans from credit institutions 4 36,500 59,000 95,504 95,376Lease liabilities 700 534 1,030 2,110 4,271 8,646 7,533Pension liabilities 75 75 145 406 841 1,541 1,612Redemption and purchase price liabilityOther liabilities 930 930 1,860 1,860Trade payables 13,668 13,668 13,668Non-derivatives 14,447 1,538 38,605 61,516 5,112 121,218 120,049Interest rate swapsInterest rate swaps -238 -241 -471 495 -455 -455Total derivatives -238 -241 -471 495 -455 -455
169Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
CAPITAL MANAGEMENT
The Group’s objectives when managing capital are to
safeguard the Group’s ability to continue as a going
concern to provide returns and increase in value of
invested capital for shareholders. The Group monitors
net debt to adjusted EBITDA ratio and to net working
capital.
Net debt is calculated as loans from credit institutions
(included in the current and non-current interest-
bearing liabilities) less cash and cash equivalents. The
target of the net debt and net debt position to EBITDA
are linked to a covenant of borrowing facilities. The
ratio of net debt to EBITDA has an impact on the loan
margins of the Harvia’s loan agreements.
The table below shows the net debt position.
EUR thousand 31-Dec-2025 31-Dec-2024Loans from credit institutions 95,376 95,405Lease liabilities 7,533 8,258Less cash and cash equivalents -45,183 -46,447Net debt 57,726 57,216
Between 1 and Between 2 and Total contractual EUR thousand Less than 6 months 6 – 12 months2 years5 years Over 5 yearscash flows Carrying amount31-Dec-2024Non-derivativesLoans from credit institutions 5 36,500 59,000 95,505 95,405Lease liabilities 583 535 993 2,197 5,474 9,784 8,258Pension liabilities 80 80 155 438 1,099 1,852 1,914Redemption and purchase price liability 250 250 226Other liabilities 913 1,826 2,739 2,739Trade payables 13,070 13,070 13,070Non-derivatives 13,988 1,528 39,474 61,635 6,573 123,200 121,612Interest rate swapsInterest rate swaps -612 -619 -1,211 1,463 -979 -979Total derivatives -612 -619 -1,211 1,463 -979 -979
170Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Reconciliation of net debt:
Loans from credit institutions Loans from credit institutions EUR thousand Cash and cash equivalentsdue within 1 yeardue after 1 year Lease liabilities Total net debt1-Jan-2024 40,581 -6 -75,404 -2,741 -37,569Cash flows 30,173 1 -19,970 951 11,154Acquisitions -24,908 -6,182 -31,320Dissolution of an associated company 61 61Exchange differences 540 540Other non-cash movements -26 -287 -84 -57,21631-Dec-2024 46,447 -5 -95,400 -8,258 -57,216Cash flows 1,223 1 28 1,006 2,258Acquisitions -1,253 -1,253Exchange differences -1,234 -1,234Other non-cash movements -1 -281 -28131-Dec-2025 45,183 -4 -95,372 -7,533 -57,726
171Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
5.4 FINANCE INCOME AND COSTS
This note presents the finance income and finance
costs of the Group. The Group has entered into interest
rate swap agreements to hedge against interest rate
changes arising from the variable rate external bank
loans.
For information about derivatives and financial
liabilities, refer note 5.1.
For information about cash and cash equivalents,
refer note 5.2.
Group’s interest and other finance income are related
mainly to foreign exchange gains, interest income from
trade receivables and gains on valuation of derivative
contracts. They amounted to EUR 1,087 thousand
during 2025 (2024: EUR 1,959 thousand). Finance costs
are related mainly to loans from financial institutions,
exchange differences, and losses on the valuation of
derivative contracts. See the following table:
EUR thousand 2025 2024Finance incomeInterest income766 1,126Exchange rate gains 150 786Other finance income 166 47Total 1,081 1,959Finance costs Interest costs -3,208 -3,405Other finance charges paid/payable for financial liabilities not at fair value through profit or loss -896 -861Exchange rate losses -1,463 -335Changes in fair values -119Fair value losses on interest rate swaps -514 -887Total -6,200 -5,488Finance costs, net -5,118 -3,529
172Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
5.5 COMMITMENTS AND CONTINGENT LIABILITIES
This note provides information about items not recognized in
the financial statements as they do not yet satisfy the recognition
criteria in the reporting period. These are guarantees, pledges,
and contingent liabilities.
EUR thousand 31-Dec-2025 31-Dec-2024Other guarantees: Pledged accounts 25 19Customs guarantee 50 50Total 75 69
OTHER COMMITMENTS
Harvia becomes involved from time to time in various
claims and lawsuits arising in the ordinary course of
its business, such as disputes with customers and
proceedings initiated by public authorities. During the
reporting periods, Harvia has not been a party to legal,
arbitration or administrative proceedings, which could
have a significant impact on the Group’s financial
position or profitability.
173Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
5.6.1 ACCOUNTING POLICY
A defined contribution plan is a post-employment
benefit plan under which an entity pays fixed
contributions into an insurance company or a
separate entity fund. The entity will have no legal or
constructive obligation to pay further contributions
if the fund does not hold sufficient assets to pay
all employee benefits relating to employee service
in the current and prior periods. Contributions to
the defined contribution plans are charged directly
to the profit or loss in the year to which these
contributions relate. Defined benefit plans are
post-employment benefit plans other than defined
contribution plans.
Under defined benefit plans both actuarial and
investment risks are on the responsibility of
the Group, and the defined benefit obligation
is recognized. The defined benefit obligation
represents the present value of future cash flows
from payable benefits, which are calculated for
by using the projected unit credit method. The
discount rate used in calculating the present value
of the defined benefit obligation is based on the
market yields of high-quality corporate bonds
with appropriate durations. Pension expenses
are recognized in the profit or loss by allocating
the current service cost over the service lives of
employees based on actuarial calculations. The
net interest is included as part of the personnel
expenses.
The liability (or asset) recognized in the
consolidated statement of financial position is the
defined benefit obligation at the closing date less
the fair value of plan assets. Actuarial gains and
losses arising from experience adjustments and
changes in actuarial assumptions are charged or
credited to equity in other comprehensive income in
the period in which they arise.
The valuation of defined benefit obligation is
based on management’s estimates about actuarial
assumptions such as discount rate, inflation and
future mortality rates.
5.6 DEFINED BENEFIT OBLIGATIONS
Defined benefit obligations are recognized according to
IAS 19. Harvia has an unfunded defined benefit pension
plan in Germany. German pension plan was acquired at
1.5.2020. Harvia’s other pension plans, such as statutory
Finnish TyEL plan are classified as defined contribution
plans.
German pension plan is a salary-based plan which
provides old-age, disability and survivor benefits for
plan members. The pension plan is administrated
according to local legislation and practices. The pension
plan includes pensioners, active and deferred vested
plan members.
Defined benefit plans expose Harvia to risks the most
relevant being the interest risk relating to the discount
rate. If the discount rate decreases, the defined
benefit obligation will increase. Changes in an inflation
assumption or mortality models may also increase the
defined benefit obligation.
174Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Actuarial assumptions used in calculating the defined benefit obligation are as
follows:
2025 2024Discount rate 4.22% 3.33%Benefit increase 2.00% 2.00%Salary increase 1.00% 1.00%Turnover rate 0.00% 0.00%Mortality model Richttafeln 2018 G
The sensitivity analysis of the defined benefit obligation is as follows. The
sensitivity analysis below is based on a change in an assumption while holding all
other assumptions constant:
EUR thousand 2025 2024Impact of the change in the discount rate (+0.50%) on the defined benefit obligation -58 -76Impact of the change in the discount rate (0.50%) on the defined benefit obligation 62 82
The duration of the defined benefit pension obligation is approximately 9 years in
2025. The defined benefit plan has no plan assets.
The actuarial gains and losses and defined benefit expense recognized in
comprehensive income and other comprehensive income are as follows:
EUR thousand 2025 2024Net interest59 73Actuarial gains (-) / losses (+) caused by changes in financial assumptions113 66Experience adjustments-110 -149Total in Group profit and comprehensive income62 -11
The reconciliation of the net defined benefit liability and the defined benefit
obligation is as follows:
EUR thousand 2025 2024The defined benefit obligation 1.1. 1,852 2,023Net interest 59 73Actuarial gains (-) / losses (+) -224 -84Benefits paid 146 -160Total 1,833 1,852
175Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Section 6: Other Notes
This section of the notes includes other information that must be disclosed
to comply with accounting standards and other pronouncements.
6.1 GROUP STRUCTURE AND CONSOLIDATION
This note provides information of the Group structure and accounting principles
for consolidation.
6.1.1 ACCOUNTING POLICY
Subsidiaries are all entities over which the Group
has control. The Group controls an entity when
the group is exposed to, or has rights to, variable
returns from its involvement with the entity and
has the ability to affect those returns through
its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date
on which control is transferred to the Group.
Intercompany transactions, balances and unrealized
gains on transactions between Group companies are
eliminated. When needed, the financial statements
by subsidiaries have been adjusted to conform to
the Group’s accounting policies.
176Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Acquired / established Parent company Country of incorporation Nature of business Parent ownership (%) Group ownership (%)(month/year)Harvia Oyj Finland Parent companySubsidiariesHarvia Group Oy Finland Holding 100 100 4/2014Harvia Finland Oy Finland Manufacturing 100 4/2014Harvia (Hong Kong) Sauna Co. Ltd Hong Kong Sales 100 4/2014Guangzhou City Harvia Sauna Co. Ltd China Manufacturing 100 4/2014Harvia Estonia Oü Estonia Not operational 100 12/2014LLC Harvia RUS Russia Not operational 100 6/2015Harvia Austria GmbH Austria Sales 100 11/2016Domo Wellness Romania Srl Romania Manufacturing 100 11/2016K&R Imobiliare Romania Real estate 100 11/2016Harvia US Holdings Inc. United States Holding 100 11/2018Harvia US Inc. United States Manufacturing 100 11/2018Harvia Holding GmbH Germany Holding 100 02/2020EOS Saunatechnik GmbH Germany Manufacturing 100 04/2020Kirami Oy Finland Manufacturing 100 05/2021Sauna-Eurox 0y Finland Manufacturing 100 08/2021Harvia Japan Limited Japan Sales 51 08/2023Phoenix El-Mec srl Italy Manufacturing 100 09/2023TS Spa Holdings LLC United States Holding 100 0 7/ 2 024ThermaSol Steam Bath LLC United States Manufacturing 100 07/2 0 24TS Spa Holdings LLC United States Holding 100 0 7/ 2 024ThermaSol Steam Bath LLC United States Manufacturing 100 07/2 0 24
SUBSIDIARIES
The Group’s subsidiaries as of 31 December 2025 are set out below. Unless otherwise
stated, they have share capital consisting solely of ordinary shares that are held
directly by the Group, and the proportion of ownership interests.
177Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
6.2 RELATED PARTY TRANSACTIONS
This note provides information of Harvia Group’s related parties and transactions
with related parties. The Group’s related parties include the parent company, the
Group companies mentioned in note 6.1 above. The related parties include also key
management personnel and their family members as well as companies controlled
by these. Key management personnel are members of the Board of Directors, Chief
Executive Officer and management team.
For share-based payments, see also Note 6.4.
RELATED PARTY TRANSACTIONS
Harvia’s key management personnel, the members of the Board of Directors, and their
family members are entitled to purchase sauna products from Harvia in accordance
with the policy applying to the entire personnel of Harvia.
Transactions with related parties have been made on an arm’s length basis.
EUR thousand 2025 2024Sales of goods and services 44 63Purchases of goods and services 76 242
6.2.1 ACCOUNTING POLICY
Share-based payments
Share-based incentive plans have been recognized as an expense during the
earnings period in the income statement item personnel expenses. The fair
value of the arrangement is the share value at benefit’s grant date. The amount
to be recognized as an expense is based on estimate of the number of shares,
which are expected to be earned during the vesting period. The estimate of the
shares earned will be assessed at every balance sheet date. If the estimate of
the shares change in later periods, the change shall be adjusted in the income
statement at that period the change is noticed. The contra account for shares
to be granted according to the incentive plans is invested unrestricted equity
reserve. Harvia’s share-based incentive plans, that are paid net in shares after
deducting withholding tax, are booked as share paid arrangements although
Harvia pays taxes in cash in favor of the incentive plan participant.
178Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
MANAGEMENT HOLDINGS
The following table indicates the ownership interests
of the members of the Board of Directors, the
Chief Executive Officer and the members of the
management team in the parent company’s shares
outstanding on 31 December 2025:
2025 2024Members of the Board of Directors 0.3% 0.3%Chief Executive Officer 0.0% 0.0%Other Management team 2.9% 3.0%
MANAGEMENT HOLDINGS
The Board of Directors decides on the amount of
and basis for the remuneration of the Chief Executive
Officer (CEO) and the members of the management
team. The remuneration of the CEO and the members
of the management team consist of a monthly
salary plus a bonus. The bonus to the CEO and the
members of the management team is paid based on
the achievement of personal objectives as well as
objectives relating to profitability for the financial
year. The bonus including the performance-based
bonus and short-term incentive scheme must not
exceed 56% of the fixed salary of the CEO and of the
other members of the management team.
The CEO of the Group is entitled to statutory
pension, and the age of retirement is determined in
accordance with the statutory employee pension
system. The term of notice for the CEO has been
specified as 6 months, and he is entitled to salary
for the term of notice. If the company terminates the
employment contract of the CEO, he is, under certain
conditions, entitled to compensation that equals full
salary for 6 months.
KEY MANAGEMENT PERSONNEL COMPENSATION
EUR thousand 2025 2024Chief executive officer Salaries and other short-term employee benefits 839 581Pension costs - defined contribution plans 150 105Total 989 686Other management team Salaries and other short-term employee benefits 2,185 1,662Long-term incentive program 680 62Pension costs - defined contribution plans 244 219Total 3,108 1,943
REMUNERATION TO MEMBERS OF BOARD
OF DIRECTORS
EUR thousand 2025 2024Olli Liitola (as of 11 March 2014) 49 36Olbrich Heiner (as of 7 April 2022) 65 58Anders Holmén (as of 8 April 2021) 50 36Hille Korhonen (as of 8 April 2021) 50 40Catharina Stackelberg-Hammarén (as of 20 April 2023) 60 35Markus Lengauer (as of 20 April 2023) 43 40Petri Castrén (as of 8 April 2025) 41 0Total 357 246
SHARE-BASED INCENTIVE PLAN
Harvia has a share-based long-term incentive plan for
the CEO and Management Team members. The plan
forms a part of Harvia Plc’s remuneration program for
its executives, and the aim of the plan is to support
the implementation of the company’s strategy, to align
the interests of the executives with interests of the
shareholders to increase the value of the company,
to improve the performance of the company, and to
retain the executives.
The long-term incentive plan consists of three
performance periods of three calendar years each,
2023-2025, 2024-2026 and 2025-2027. During
2025 Harvia paid out the rewards regarding the
performance period 2022-2024. The Board of
Directors decides separately for each performance
period the plan participants, performance criteria, and
related targets, as well as the minimum, target, and
maximum reward potentially payable based on target
attainment.
In the performance period 2022-2024, the plan
had at most 16 participants and the targets for the
performance period related to company’s total
shareholder return, revenue growth, sustainability
targets and EBIT margin. The maximum number
of shares in Harvia Plc to be paid based on the
performance period 2022-2024 was 73,600. This
number of shares represents gross earnings, from
which the withholding of tax and possibly other
applicable contributions are deducted, and the
remaining net amount was paid in shares. Costs
from share-based incentive plans totaling EUR 2,005
thousand were recognized as an expense during the
financial year.
On 25 February 2025, The Board of Directors of
Harvia decided on a directed share issue without
consideration for the payment of rewards earned
under the company’s share-based incentive program.
179Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
employees for the performance period 2025-2027.
In the performance period 2025-2027, the plan
has 34 participants at most and the targets for the
performance period relate to the company’s total
shareholder return, revenue growth, EBIT margin
and CO2 emissions. The number of shares to be paid
based on the performance period 2025-2027 is a
maximum of 79,100 Harvia Plc’s shares. This number
of shares represents the gross earnings, from which
the withholding of tax and possible other applicable
contributions are deducted, and the remaining net
amount is paid in shares. However, the company
has the right to pay the reward fully in cash under
certain circumstances. Potential rewards from the
performance period 2025-2027 will be paid out during
spring 2028.
The share payments concern the performance period
2022–2024 of the company’s share-based incentive
program launched in 2022. In the share issue, 9,852
own shares held by the company were transferred
without consideration to the key employees
participating in the share-based incentive program
in accordance with the terms and conditions of the
program.
In the performance period 2023-2025, the plan
has 16 participants at most and the targets for
the performance period relate to company’s total
shareholder return, revenue growth, sustainability
targets and EBIT margin. The maximum number
of shares in Harvia Plc to be paid based on the
performance period 2023-2025 is 61,600. Potential
rewards from the performance period 2023-2025 will
be paid during spring 2026.
In the performance period 2024–2026, the plan
has 27 participants at most and the targets for the
performance period relate to the company’s total
shareholder return, revenue growth, CO2 emissions
and EBIT margin. The maximum number of Harvia Plc
shares to be paid based on the performance period
2024–2026 is 68,100. This number of shares represents
the gross earnings, from which the withholding of
tax and possible other applicable contributions are
deducted, and the remaining net amount is paid in
shares. However, the company has the right to pay
the reward fully in cash under certain circumstances.
Potential rewards from the performance period 2024–
2026 will be paid out during spring 2027.
On 10 March 2025, The Board of Directors of Harvia
Plc decided to continue the Long-term Performance
Share Plan for the management team and other key
180Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
6.3.1 ACCOUNTING POLICY
The tax expense for the period comprises
current and deferred tax. Tax is recognized in
the consolidated profit or loss statement or if
tax relates to items recognized in profit and loss
statement or directly in equity, then the related
tax is recognized in other comprehensive income
or equity correspondingly.
The current income tax charge is calculated
based on the tax laws enacted or substantively
enacted at the balance sheet date in the
countries where the company and its subsidiaries
operate and generate taxable income.
INCOME TAX EXPENSE
EUR thousand 2025 2024Current tax: Current tax on profits for the year -7,743 -7,985Adjustments in respect of prior years 6 -17Total current tax expense -7,737 -8,001Deferred tax: Change in deferred taxes 961 363Income taxes -6,776 -7,638
RECONCILIATION OF INCOME TAX EXPENSE AND TAXES CALCULATED AT THE FINNISH TAX RATE 20%
EUR thousand 2025 2024Profit before tax 33,182 31,880Tax calculated at Finnish tax rate 20% -6,636 -6,376Effect of other tax rates for foreign subsidiaries -985 -939Expenses not deductible for tax purposes -322 -328Income not subject to tax 258 -84Currency translation on subsidiary net investments 652 242Other items* 257 -153Taxes in income statement -6,776 -7,638
* Comparative information has been reclassified so that currency translation on subsidiary net investments
is presented as a separate line item, consistent with the presentation of the current period.
6.3 TAXES
This note provides an analysis of the Group’s taxes.
181Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
DEFERRED TAXES
6.3.3 MANAGEMENT JUDGMENT
Determining to which extent deferred tax assets can
be recognised requires management judgment. The
management of Harvia Group has used judgment
when determining if deferred tax asset is recognised
for an unused tax loss carryforward or unused tax
credits. Recognition is done only to the extent that it
is probable that future taxable profits will be available
against which the loss or credit carryforward can
be utilised.The Group estimates positions taken
in tax return with respect to situations in which
applicable tax regulation is subject to interpretation.
If necessary, the booked amounts are adjusted to
correspond to amounts expected to be paid to the
tax authorities.
Harvia’s tax assets include old tax assets arising from
intra-group interest payments. The deductibility of
these interest expenses is limited by tax legislation.
In 2025 EUR 2,947 thousand intra-group interests
were deducted in taxation (2024: EUR 2,947
thousand). There were EUR 306 thousand remaining
intra-group interest expenses at 31 December 2025.
There is no time limit for the deduction of net
interest expenses in taxation.
6.3.2 ACCOUNTING POLICY
Deferred income tax is recognized on temporary
differences arising between the tax bases of assets
and liabilities and their carrying amounts in the
consolidated financial statements. However, deferred
tax liabilities are not recognized if they arise from the
initial recognition of goodwill; deferred income tax is
not accounted for if it arises from initial recognition
of an asset or liability in a transaction other than
a business combination that at the time of the
transaction affects neither accounting nor taxable
profit or loss. Deferred income tax is determined
using tax rates (and laws) that have been enacted
or substantively enacted by the balance sheet date
and are expected to apply when the related deferred
income tax asset is realized or the deferred income
tax liability is settled.
Deferred tax assets are recognized only to the extent
that it is probable that future taxable amounts will be
available to utilize those temporary differences.
Deferred tax assets and liabilities are offset when
there is a legally enforceable right to offset current
tax assets against current tax liabilities and when the
deferred taxes assets and liabilities relate to income
taxes levied by the same taxation authority on either
the same taxable entity or different taxable entities
where there is an intention to settle the balances on
a net basis.
182Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Harvia has no expiring deferred tax assets. The movement in deferred tax assets and liabilities during the year, without
taking into consideration the offsetting of balances within same tax jurisdiction, is as follows:
Recognized in Recognized in Translation At 31 EUR thousand At 1 Januaryprofit or lossequitydifferencesDecember2025 Deferred tax assets Tax losses and net interest costs 53 225 393 671Internal margin of inventories 574 227 -58 743Provisions 281 4 -19 267Derivative financial instruments 1 2 3Loans from credit institutions 0 0Other items 814 27 -393 -13 435Total 1,723 485 0 -90 2,118Netting of deferred taxes -882 163 -719Net deferred tax asset 841 485 163 -90 1,3992025 Deferred tax liabilities Measurement of acquired net assets at fair value 3,062 -400 -234 2,428Accumulated depreciation differences 209 11 220Property, plant and equipment 336 -39 297Inventories 47 -47 0Other items 1 0 15 16Total 3,655 -475 0 -219 2,960Netting of deferred taxes -882 163 -719Net deferred tax liabilities 2,773 -475 163 -219 2,241
183Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Recognized in Recognized in Business At 31 EUR thousand At 1 Januaryprofit or lossequitycombinationsDecember2024 Deferred tax assets Tax losses and net interest costs 642 -589 53Internal margin of inventories 401 173 574Provisions 99 19 163 281Derivative financial instruments 0 1 1Other items 639 324 -149 814Total 1,782 -73 1,723Netting of deferred taxes -737 18 -163 -882Net deferred tax asset 1,045 -73 8412024 Deferred tax liabilities Measurement of acquired net assets at fair value 1,416 -462 -34 2,142 3,062Accumulated depreciation differences 138 71 209Property, plant and equipment 341 -39 34 336Inventories 0 0 47 47Other items 24 -5 -18 1Total 1,919 -436 3,655Netting of deferred taxes -737 18 -163 -882Net deferred tax liabilities 1,182 -436 2,773
The Group has not recognized deferred tax liability on the undistributed profits of its subsidiaries in the countries
where the dividend distribution causes tax penalties, but dividend distribution is considered unlikely.
184Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
6.4 EQUITY
This note describes what is included in the equity of
Harvia Group.
The total equity consists of the share capital, the
invested unrestricted equity reserve, currency
translation differences and accumulated profits.
SHARE CAPITAL AND NUMBER OF SHARES
Harvia has one share class, and shares entitle the
holders equal rights to dividends and votes in the
general meeting of Harvia.
Number of EUR thousand Share capitalsharesAt 31 December 2024 80 18,694,236At 31 December 2025 80 18,694,236
Harvia Plc held a total of 3,800 own shares on 31
December 2025. The repurchased shares were acquired
based on the Company’s incentive program.
OTHER RESERVES
The following table shows a breakdown of the balance
sheet line-item other reserves and the movements
in the reserves during the year. A description of the
nature and purpose of each reserve is provided on the
table below.
Fair value Invested unrestricted Translation EUR thousandreserveequitydifferences TotalAt 1 January 2024 0 33,334 -921 32,414Share-based incentive plan 1,430 1,430Revaluation of minority redemption liability Repurchase of own shares -483 -483Share-based payments -43 -43Gains and losses on cash flow hedges, net of tax -4 -4Actuarial gains and losses -156 -156Translation differences 2,778 2,778At 31 December 2024 -4 34,081 1,857 35,935Share-based incentive plan 2,005 2,005Revaluation of minority redemption liability Repurchase of own shares 73 73Share-based payments -558 -558Gains and losses on cash flow hedges, net of tax -9 -9Actuarial gains and losses -224 -224Translation differences -7,031 -7,031At 31 December 2025 -13 35,377 -5,174 30,191
INVESTED UNRESTRICTED EQUITY RESERVE
Under the Finnish Companies Act, the subscription price of new shares is credited to the share capital, unless it is
provided in the share issue resolution that it is to be credited in full or in part to the invested unrestricted equity
reserve. Contributions to the reserve for invested unrestricted equity can also be made without share issues.
TRANSLATION DIFFERENCES
6.4.1 ACCOUNTING POLICY
Translation differences that arise when translating the
financial statements of subsidiaries are recognized
in other comprehensive income and accumulated in
translation differences reserve in equity.
Exchange rate differences arising on translation of
the foreign controlled entity are recognized in other
comprehensive income as described in note 5.3 and
accumulated in a separate reserve within equity. The
cumulative amount is reclassified to profit or loss
when the net investment is disposed of.
185Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
RETAINED EARNINGS
Movements in retained earnings were as follows:
EUR thousand 2025 2024At 1 January 86,825 75,081Dividend distribution -14,017 -12,709Prior year adjustment -111 210Profit for the period 26,437 24,242At 31 December 99,133 86,825
In 2025, Harvia paid a dividend of EUR 0.75 per share, in total EUR 14,017 thousand.
Harvia identified an adjustment of EUR 111 thousand related to foreign exchange losses
attributable to the financial year 2024. The adjustment was recognized in the financial
year 2025 as an adjustment to retained earnings. The adjustment is considered
immaterial in accordance with IAS 8, and therefore the comparative financial
information for the year ended 31 December 2024 has not been restated.
Harvia Plc’s total unrestricted equity amounts to EUR 78,653,392.73 in total, of
which profit for the period accounts for EUR 11,553,096.02. Harvia targets a regularly
increasing dividend with a bi-annual dividend payout. In order to determine the
amount of dividend, the Board of Directors has assessed the company’s solvency and
financial standing after the end of the period.
Harvia’s Board of Directors proposes to the Annual General Meeting that the company
distributes a dividend of EUR 0.77 (0.75) per share, EUR 14,394,561.72 in total, for
the financial period ended 31 December 2025. The Board of Directors proposes the
dividend to be paid in two instalments, EUR 0.39 per share in April 2026 and EUR 0.38
per share in October 2026.
EQUITY ATTRIBUTABLE TO NON-CONTROLLING INTERESTS
Movements in non-controlling interests were as follows:
EUR thousand 2025 20241-Jan 1,244 1,082Disposals -75 163Dividend distribution 0 0Loss for the period -30 031-Dec 1,139 1,244
The non-controlling interest consists of minority interests in Harvia Japan Limited.
6.5 EVENTS OCCURRING AFTER THE REPORTING DATE
On 20 January 2026, Harvia announced that it had received a notification pursuant
to Chapter 9, section 5 of the Securities Markets Act, according to which the total
holding of SEB Funds AB (Stockholm, Sweden) in Harvia Plc shares and votes had
fallen below five percent on 19 January 2026 and was 4.34%.
On 30 January 2026, Harvia published the proposals by the Shareholders’ Nomination
Board to the Annual General Meeting, planned to be held on 15 April 2026. The
Nomination Board proposes that the number of members of the Board of Directors
shall be seven. The Nomination Board also proposes that the current members
Catharina Stackelberg-Hammarén, Petri Castrén, Anders Holmén, Hille Korhonen,
Markus Lengauer and Olli Liitola be re-elected to the Board of Directors. In addition,
the Nomination Board proposes that Martin Richter be elected as a new member to
the Board of Directors. The Nomination Board also proposes changes to the monthly
remuneration and meeting fees of the members of the Board of Directors.
186Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Parent company financial statements (FAS)
Parent company Profit & Loss Statement
EUR 1 Jan - 31 Dec 2025 1 Jan - 31 Dec 2024
Revenue 1,083,600.00 1,083,600.00
Other operating income 298.63 31.87
Staff expenses
Wages and salaries -1,605,168.31 -1,388,701.66
Social security expenses
Pension expenses -217,037.87 -201,268.62
Other social security expenses -31,620.32 -21,124.86
Other operating expenses -1,495,574.76 -1,443,076.15
Depreciation and amortization
Depreciation according to plan -11,700.26 -6,820.00
Operating loss -2,277,202.89 -1,977,359.42
Finance income
Financial income from holdings in group undertakings 0.00 15,000,000.00
From group undertakings 2,621,030.12 3,019,711.35
From others 1,744,829.16 3,985,068.43
Finance costs
To group undertakings -258,902.13 -665,025.01
To others -8,527,912.55 -6,065,656.38
Finance income and expenses total -4,420,955.40 15,274,098.39
Loss before income appropriations and taxes -6,698,158.29 13,296,738.97
Appropriations
Group contribution 21,140,000.00 6,452,000.00
Income taxes -2,888,745.69 -950,956.59
Profit for the period 11,553,096.02 18,797,782.38
187Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Parent company Balance Sheet
EUR
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
ASSETS
Non-current assets
Intangible assets
Intangible rights 46,118.06 0.00
Other long-term expenses 0.00 568.32
Advance payments and construction in process 66,474.40 0.00
Investments
Holdings in group undertakings 85,909,022.95 85,909,022.95
Total non-current assets 86,021,615.41 85,909,591.27
Current assets
Long-term receivables
Receivables from group companies 66,603,340.35 68,835,451.44
Other receivables 0.00 982,223.00
Short-term receivables
Receivables from group companies 25,557,772.51 23,714,384.36
Other receivables 654,798.25 140,594.60
Prepayments and accrued income 25,722.65 268,779.92
Cash and cash equivalents 20,018,290.65 19,473,525.30
Total current asset 112,859,924.41 113,414,958.62
Total assets 198,881,539.82 199,324,549.89
EUR
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
EQUITY AND LIABILITIES
Equity
Share capital 80,000.00 80,000.00
Fair value reserve -12,781.00 -3,554.00
Reserve for invested unrestricted equity 50,379,821.97 50,307,317.13
Retained earnings 16,720,474.74 11,939,928.46
Profit for the period 11,553,096.02 18,797,782.38
Total equity 78,720,611.73 81,121,473.97
Liabilities
Non-current liabilities
Loans from credit institutions 95,500,000.00 95,500,000.00
Amounts owed to group undertakings 8,000,000.00 8,000,000.00
Other non-current liabilities 12,781.00 3,554.00
Total non-current liabilities 103,512,781.00 103,503,554.00
Current liabilities
Trade payables 122,094.76 273,308.64
Amounts owed to group undertakings 14,669,948.87 12,725,829.26
Other liabilities 58,281.51 73,233.75
Accrued expenses 1,797,821.95 1,627,150.27
Total current liabilities 16,648,147.09 14,699,521.92
Total liabilities 120,160,928.09 118,203,075.92
Total equity and liabilities 198,881,539.82 199,324,549.89
188Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Parent company Cash flow statement
EUR
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Cash flow from operating activities:
Profit (loss) before taxes -6,698,158.29 13,296,738.97
Adjustments to operating profit (+/–) for:
Depreciation and amortization 11,700.26 6,820.00
Financial income and expenses 4,420,955.40 -15,274,098.39
Other adjustments 9,227.00 3,554.00
Cash flow before working capital changes -2,256,275.63 -1,966,985.42
Working capital changes:
Increase/decrease in trade an other short-term interest-
free receivables 80,564.14 -1,212,282.19
Increase/decrease in short-term interest-free liabilities -135,879.67 460,293.73
Change in working capital -2,311,591.16 -2,718,973.88
Operating cash flow before financing items and taxes -99.94 -290.68
Interest received relating to operating activities 404,348.25 602,186.38
Income taxes paid (-), received (+) -2,280,956.53 2,863,941.32
Cash flow from operating activities: -4,188,299.38 746,863.14
EUR
1 Jan - 31 Dec
2025
1 Jan - 31 Dec
2024
Cash flow from investments
Purchase of tangible and intangible items (-) -123,724.40 0.00
Loans granted -1,005,549.22 -26,492,731.71
Loans reveived or granted (group accounts) 1,953,759.90 7,997,749.98
Repayment of loan receivables 80,000.00 50,000.00
Interest received from investments 1,862,682.23 2,471,937.83
Dividends received 13,500,000.00 15,000,000.00
Cash flow from investments 16,267,168.51 -973,043.90
Cash flows from financing activities
Repurchase of own shares 0.00 -483,431.13
Transfer of own shares -72,504.84 0.00
Proceeds from non-current loans 0.00 20,000,000.00
Interest and other financing expenses paid (–) -3,896,362.84 -2,727,800.35
Dividends paid -14,017,236.10 -12,708,925.62
Group contributions received 6,452,000.00 3,650,000.00
Cash flows from financing activities -11,534,103.78 7,729,842.90
Net increase (+) / decrease (-) in cash and cash
equivalents 544,765.35 7,503,662.14
Cash and cash equivalents at beginning of period 19,473,525.30 11,969,863.16
Cash and cash equivalents at end of period 20,018,290.65 19,473,525.30
189Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Notes to the financial statements of the parent company
NOTES TO THE FINANCIAL STATEMENTS OF THE
PARENT COMPANY
Harvia Plc’s Financial Statements are presented
according to the Finnish Account Standards (FAS). The
financial statements are in Euros.
The preparation of Harvia Plc’s financial statements
requires the use of estimates, judgment and
assumptions that may affect the application of
accounting policies and the recognized amounts
of assets and liabilities at the date of the financial
statements. Actual results may differ from previously
made estimates and judgments.
NON-CURRENT ASSETS
Intangible assets are recognized at the acquisition cost
less the depreciation according to plan. Acquisition
costs consist of direct costs of the acquisition. The
depreciation has been calculated straight-line basis over
the financial use of the asset. The depreciation period of
intangible assets is 3 years.
Investments to group companies are valued at
acquisition cost or net realizable value, if the investment
value has deteriorated significantly and permanently.
RECEIVABLES
Receivables are valued at acquisition cost or the likely
recoverable value if lower.
INCOME TAXES
Income taxes have been recognized based on the
current year profit according to Finnish tax legislation,
with any adjustments resulting from prior years. The
parent company does not book deferred taxes.
DIVIDENDS
Dividend that the Board of Director has proposed
has not been booked to the financial statements. The
dividends will be booked based on the decisions of
Annual General Meeting.
CASH FLOW STATEMENT
The interest payments on the loan taken by the
company have been presented under financing cash
flows in the cash flow statement to ensure consistency
with the presentation in the Groups’ cash flow
statement.
INTEREST SWAP
The interest rate swaps are recorded at fair value under
the Finnish Accounting Act (1336/1997), Section 5 2 a §.
190Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
NOTES TO THE PROFIT AND LOSS STATEMENT
2025 2024
Notes relating to personnel
Number of personnel at the end of the financial year 2 2
Average number of personnel during the financial year
Officers 2 2
EUR 2025 2024
Management compensation
Members of the Board of Directors and CEO 1,196,078.25 826,362.10
Auditors’ fees
Statutory audit 185,500.00 119,272.18
Other services 14,776.98 4,275.00
200,276.98 123,547.18
EUR 2025 2024
Finance income and costs
Other interest income
Group undertakings 2,621,030.12 3,019,711.35
Other than group companies 1,744,829.16 3,985,068.43
Total finance income 4,365,859.28 7,004,779.78
Interest and finance charges
Group undertakings -258,902.13 -665,025.01
Other than group companies -8,527,912.55 -6,065,656.38
Total financial expenses -8,786,814.68 -6,730,681.39
Total financial income and expenses -4,420,955.40 274,098.39
Income taxes
Income taxes for ordinary business -2,888,745.69 -950,956.59
191Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
NONCURRENT ASSETS
EUR 2025 2024
Intangible assets
Acquisition cost at 1 January 2,123,591.25 2,123,591.25
Additions 57,250.00
Acquisition cost at 31 December 2,180,841.25 2,123,591.25
Accumulated amortization at 1 January -2,123,022.93 -2,116,202.93
Amortization for the financial year -11,700.27 -6,820.00
Accumulated amortization at 31 December -2,134,723.20 -2,123,022.93
Advance payments on intangible assets 66,474.40 0.00
Book value 31 December 112,592.45 568.32
Machinery and equipment
Acquisition cost at 1 January 107,497.05 107,497.05
Acquisition cost at 31 December 107,497.05 107,497.05
Accumulated depreciation at 1 January -107,497.05 -107,497.05
Accumulated depreciation at 31 December -107,497.05 -107,497.05
Book value 31 December 0.00 0.00
Investments
Acquisition cost 1 January 85,909,022.95 85,909,022.95
Acquisition cost 31 December 85,909,022.95 85,909,022.95
Book value 1 January 85,909,022.95 85,909,022.95
Book value 31 December 85,909,022.95 85,909,022.95
192Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
HOLDINGS IN GROUP UNDERTAKINGS
Group companies
Parent ownership
31-Dec-2025
Harvia Group Oy, Muurame 100%
Domo Wellness Romania Srl.
Guangzhou City Harvia Sauna Co. Ltd
Harvia Estonia Oü
Harvia Finland Oy, Muurame
Harvia (HK) Sauna Co. Ltd
Harvia US Holdings Inc.
Harvia US Inc.
K&R Imobiliare
LLC Harvia RUS
Harvia Austria GmbH
EOS Saunatechnik GmbH
Harvia Holding GmbH
Kirami Oy
Sauna-Eurox 0y
Harvia Japan Limited
Phoenix El-Mec Srl
TS Spa Holdings LLC
ThermaSol Steam Bath LLC
All Group companies have been consolidated to the Group consolidated IFRS
financial statements.
193Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
RECEIVABLES
EUR 2025 2024
Long-term receivables
Loans to group companies 66,603,340.35 68,835,451.44
Other receivables
Interest rate swap receivables 0.00 982,223.00
Total 67,071,232.35 69,817,674.44
Short-term receivables
Receivables from group companies
Trade debtors 1,422,805.17 1,526,232.89
Other receivables 22,640,467.98 21,452,000.00
Interest receivables 1,494,499.36 736,151.47
Total 25,557,772.51 23,714,384.36
Receivables from others
Other receivables 186,906.25 140,504.06
Interest rate swap receivables 467,892.00 0.00
Prepayments and accrued income 25,722.65 268,779.92
680,520.90 409,283.98
Material amounts included in prepayments and accrued income
Insurances 12,401.50 20,591.89
Others 13,321.15 29,144.62
Tax receivables 0.00 219,043.41
25,722.65 268,779.92
194Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
LIABILITIES
EUR 2025 2024
Long-term liabilities
Loans from credit institutions 95,500,000.00 95,500,000.00
Loans from group companies 8,000,000.00 8,000,000.00
Other long-term liabilities 12,781.00 3,554.00
103,512,781.00 103,503,554.00
Liabilities to group companies
Trade creditors 6,250.62 16,358.90
Other liabilities 14,650,958.51 12,696,730.63
Accruals and deferred income 12,739.74 12,739.73
14,669,948.87 12,725,829.26
Liabilities for others
Trade creditors 122,094.76 273,308.64
Other liabilities 58,281.51 73,233.75
Accruals and deferred income 1,797,821.95 1,627,150.27
1,978,198.22 1,973,692.66
Material amounts shown under accruals and deferred income
Wages and salaries including social security expenses 546,148.39 558,202.04
Interest expenses 717,876.25 976,345.05
Income taxes 388,745.75 0.00
Other 145,051.56 92,603.18
1,797,821.95 1,627,150.27
195Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
EQUITY
EUR 2025 2024
Restricted equity
Subscribed capital 1 January 80,000.00 80,000.00
Subscribed capital 31 December 80,000.00 80,000.00
Fair value reserve 1 January -3,554.00 0.00
Disposals -9,227.00 -3,554.00
Fair value reserve 31 December -12,781.00 -3,554.00
Total restricted equity 67,219.00 76,446.00
Unrestricted equity
Reserve for invested unrestricted equity 1 January 50,307,317.13 50,790,748.26
Repurchase of shares 0.00 -483,431.13
Transfer of shares 72,504.84 0.00
At 31 December 50,379,821.97 50,307,317.13
Retained earnings from previous financial years 30,737,710.84 24,648,854.08
Dividend distribution -14,017,236.10 -12,708,925.62
Retained earnings from previous financial years 16,720,474.74 11,939,928.46
Profit (loss) for the financial year 11,553,096.02 18,797,782.38
Total unrestricted equity 78,653,392.73 81,045,027.97
Total equity 78,720,611.73 81,121,473.97
Distributable unrestricted equity
Reserve for invested unrestricted equity 50,379,821.97 50,307,317.13
Retained earnings from previous years 16,720,474.74 11,939,928.46
Profit for the financial year 11,553,096.02 18,797,782.38
Distributable unrestricted equity 78,653,392.73 81,045,027.97
196Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
NOTES ON FAIR VALUE MEASUREMENT
Hedged item:
Loan, EUR 36,500,000
Hedge derivative instrument:
Interest rate swap nominal amount EUR 36,500,000,
for the period 21 Jan 2022 to 15 Dec 2026. The
company receives 6 months Euribor interest rate and
pays fixed interest rate. The fair value of the contract
at the balance sheet date was EUR 467,892.
The cash flows and the fair value adjustment of the
interest rate swap are recognized in the income
statement.
Hedged item:
Loan, EUR 20,000,000
Hedge derivative instrument:
Interest rate swap nominal amount EUR 20,000,000,
for the period 22 Nov 2024 to 22 July 2027. The
company receives 6 months interest rate and pays
fixed interest rate. The fair value of the contract at the
balance sheet date was EUR -12,781
The cash flows of the interest rate swap are recognized
in the income statement, but the fair value adjustment
is recognized in fair value reserve.
Harvia is exposed to interest rate risk related to the
floating interest rate payments of a €20 million term
loan. Interest rate risk refers to the fluctuation of cash
flows due to changes in market interest rates. Harvia
mitigates this risk with an interest rate hedge, aimed at
minimizing the impact of interest rate fluctuations.
GUARANTEES AND COMMITMENTS
EUR 2025 2024
Rental payments under lease contracts
Payable during the following financial year 34,706.74 44,865.96
Payable in later years 34,704.73
34,706.74 79,570.69
Derivatives
Interest rate swap 21.1.2022-15.12.2026
Nominal value 36,500,000.00 36,500,000.00
Fair value 467,892.00 982,223.00
Interest rate swap 22.11.2024-22.7.2027
Nominal value 20,000,000.00 20,000,000.00
Fair value -12,781.00 -3,554.00
There is an economic relationship between the hedged
item and the hedging instrument: The loan interest
payments are linked to 1-month Euribor and derivative
payments received are linked to 1-month Euribor. The
interest rate setting for both hedging instrument and
the hedged item are defined on the same date.
The effect of credit risk does not dominate the value
changes arising from this financial relationship. The
application of hedge accounting requires that the
impact of credit risk does not dominate the value
changes resulting from the financial relationship being
hedged. Standard & Poor’s long-term credit rating for
the counterparty in the derivatives transaction, Danske
Bank, is AA-. Credit risk is considered low and is not a
dominant factor in the hedge relationship.
The hedge relationship is 1:1, and the terms are
assessed qualitatively on a quarterly basis.
197Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
PROPOSAL BY THE BOARD OF DIRECTORS
FOR DISTRIBUTION OF PROFIT
Harvia Plc’s total unrestricted equity amounts to
EUR 78,653,392.73 in total, of which profit for the
period accounts for EUR 11,553,096.02. Harvia targets
a regularly increasing dividend with a bi-annual
dividend payout. In order to determine the amount
of dividend, the Board of Directors has assessed the
company’s solvency and financial standing after the
end of the period.
Harvia’s Board of Directors proposes to the Annual
General Meeting that the company distributes
a dividend of EUR 0.77 (0.75) per share, EUR
14,394,561.72 in total, for the financial period ended
31 December 2025. The Board of Directors proposes
the dividend to be paid in two instalments, EUR 0.39
per share in April 2026 and EUR 0.38 per share in
October 2026.
198Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
SIGNATURES FOR THE FINANCIAL STATEMENTS, SUSTAINABILITY STATEMENT AND THE BOARD
OF DIRECTORS’ REPORT
To the best of our knowledge, the consolidated financial statements prepared in accordance with IFRS Accounting
Standards and the parent company financial statements in accordance with Finnish Accounting Standards (FAS),
give a true and fair view of the assets, liabilities, financial position and profit or loss of the issuer and the undertakings
included in the consolidation taken as a whole.
The Board of Director’s report includes a fair review of the development and performance of the business and the
position of the company, and the undertakings included in the consolidation taken as a whole, together with a
description of the principal risks and uncertainties that they face.
The sustainability statement included in the Board of Director’s report is prepared in accordance with sustainability
reporting standards referred to in Chapter 7 of the Finnish Accounting Standards (FAS) and Article 8 of Regulation
(EU) 2020/852 of the European Parliament and of the Council.
In Helsinki, 11 February 2026
AUDITOR’S NOTE
A report on the audit performed has been issued today.
In Helsinki, 11 February 2026
Deloitte Oy
Authorized Public Audit Firm
Johan Groop
Authorized Public Accountant (KHT)
Catharina von Stackelberg-Hammarén
Chairman of the Board
Matias Järnefelt
CEO
Olli Liitola
Member of the Board
Anders Holmén
Member of the Board
Hille Korhonen
Member of the Board
Petri Castrén
Member of the Board
Markus Lengauer
Member of the Board
Heiner Olbrich
Member of the Board
199Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Auditor’s Report (Translation of the Finnish original)
To the Annual General Meeting of Harvia Plc
REPORT ON THE AUDIT OF THE FINANCIAL
STATEMENTS
OPINION
We have audited the financial statements of Harvia
Plc (business identity code 2612169-5) for the year
ended 31 December 2025. The financial statements
comprise the consolidated statement of financial
position, consolidated statement of comprehensive
income, consolidated statement of changes in equity,
consolidated statement of cash flows and notes,
including material accounting policy information, as
well as the parent company’s balance sheet, profit
and loss statement, cash flow statement 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 2.3 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.
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.
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.
200Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
KEY AUDIT MATTER HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
Valuation of Goodwill
Refer to Note 3.2 to the financial statements
The consolidated goodwill balance, as of 31 December 2025, amounts to €89.3 million and has
been allocated to three cash-generating units for the purpose of impairment testing. Goodwill
represents 32.9 % of the total assets in the balance sheet.
The Company’s evaluation of goodwill for impairment involves the comparison of the
recoverable amount of each applicable cash generating unit (“CGU”) or group of units to its
carrying value on at least an annual basis, in line with International Accounting Standard (“IAS”)
36 ‘Impairment of Assets’.
The Company based the recoverable amount on the value in use, which uses a discounted
cash flow model. Management’s discounted cash flow model consists of budgets and financial
estimates for an explicit period of five years and cash flows beyond the five-year period are
extrapolated using estimated growth rates.
We identified the valuation of goodwill as a key audit matter due to the significant estimates and
assumptions management made in the value in use calculation. Auditing these judgements and
assumptions required a high degree of auditor judgement and increased audit effort.
Our audit procedures focused on evaluating the revenue, profit margins, and growth rates used
in the discounted cash flow model to determine the value in use, and included the following
audit procedures, among others:
- We evaluated management’s ability to accurately forecast future revenue, profit margins and
growth rates by performing procedures such as comparing actual results to management’s
historical forecasts for the most significant cash generating units.
- We evaluated the reasonableness of management’s revenue and profit margin forecasts
by comparing the forecasts for the most significant cash generating units to:
- Historical revenues and profit margins.
- Internal communications to the Board of Directors.
- Forecasted information included in the Company’s earnings releases as well as in analyst
reports for the Company.
- We evaluated the mechanical accuracy of the impairment model and the reasonableness
of the valuation methodology.
- We evaluated the adequacy of the Company's disclosures against the requirements of IAS 36.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
There are no significant risks of material misstatement referred to in EU regulation No 537/2014, point (c) of Article 10(2) relating to the consolidated financial statements or the parent company’s
financial statements.
201Harvia 2025 Strategy Business operations Sustainability Investors Governance 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.
- 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.
- Plan and perform the group audit to obtain sufficient
appropriate audit evidence regarding the financial
information of the entities or business units within
the group as a basis for forming an opinion on the
group financial statements. We are responsible for
the direction, supervision and review of the audit
work performed for purposes 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.
202Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
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 on 26 April 2024, and
our appointment represents a total period of
uninterrupted engagement of 2 years.
OTHER INFORMATION
The Board of Directors and the Managing Director
are responsible for the other information. The other
information comprises the report of the Board of
Directors and the information included in the Annual
Report but does not include the financial statements
or 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
compliance with the applicable provisions, excluding
the sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in the
sustainability reporting standards.
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 compliance with the
applicable provisions. Our opinion does not cover the
sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in the
sustainability reporting standards.
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, 11 February 2026
Deloitte Oy
Audit Firm
Johan Groop
Authorised Public Accountant (KHT)
203Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Independent auditor’s report on the ESEF financial statements of Harvia Plc (Translation of the Finnish Original)
regulatory technical standard. We express an opinion
on whether the consolidated financial statements that
are included in the ESEF financial statements have
been tagged, in all material respects, in accordance
with the requirements of Article 4 of the Commission’s
regulatory technical standard.
Our responsibility is to indicate in our opinion to what
extent the assurance has been provided. We conducted
a reasonable assurance engagement in accordance
with International Standard on Assurance Engagements
(ISAE) 3000.
The engagement includes procedures to obtain
evidence on:
- whether the primary financial statements in the
consolidated financial statements that are included
in the ESEF financial statements have been
tagged, in all material respects, with iXBRL tags in
accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard and
- whether the notes and company’s identification data
in the consolidated financial statements that are
included in the ESEF financial statements have been
tagged, in all material respects, with iXBRL tags in
accordance with the requirements of Article 4 of the
Commission’s regulatory technical standard and
To the Board of Directors of Harvia Plc
We have performed a reasonable assurance
engagement on the financial statements
(7437002ULTBOWQQOXL69-2025-12-31-1-fi.zip) of
Harvia Plc (2612169-5) that have been prepared in
accordance with the Commission’s regulatory technical
standard for the financial year ended 31.12.2025.
RESPONSIBILITIES OF THE BOARD OF DIRECTORS
AND THE MANAGING DIRECTOR
The Board of Directors and the Managing Director
are responsible for the preparation of the company’s
report of the Board of Directors and financial
statements (the ESEF financial statements) in such
a way that they comply with the requirements of the
Commission’s regulatory technical standard. This
responsibility includes:
- preparing the ESEF financial statements in
XHTML format in accordance with Article 3 of the
Commission’s regulatory technical standard
- tagging the primary financial statements, notes and
company’s identification data in the consolidated
financial statements that are included in the ESEF
financial statements with iXBRL tags in accordance
with Article 4 of the Commission’s regulatory
technical standard and
- ensuring the consistency between the ESEF financial
statements and the audited financial statements.
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
ESEF financial statements in accordance with the
requirements of the Commission’s regulatory technical
standard.
AUDITOR’S INDEPENDENCE AND QUALITY
MANAGEMENT
We are independent of the company in accordance
with the ethical requirements that are applicable in
Finland and are relevant 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 regulatory
requirements.
AUDITOR’S RESPONSIBILITIES
Our responsibility is to, in accordance with Chapter
7, Section 8 of the Securities Markets Act, provide
assurance on the financial statements that have
been prepared in accordance with the Commission’s
204Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
- whether there is consistency between the ESEF
financial statements and the audited financial
statements.
The nature, timing and extent of the selected
procedures depend on the auditor’s judgment. This
includes an assessment of the risk of a material
deviation due to fraud or error from the requirements
of the Commission’s regulatory technical standard.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
OPINION
Our opinion pursuant to Chapter 7, Section 8 of the
Securities Markets Act is that the primary financial
statements, notes and company’s identification data
in the consolidated financial statements that are
included in the ESEF financial statements of Harvia
Plc (7437002ULTBOWQQOXL69-2025-12-31-1-fi.zip)
for the financial year ended 31.12.2025 have been
tagged, in all material respects, in accordance with the
requirements of the Commission’s regulatory technical
standard.
Our opinion on the audit of the consolidated financial
statements of Harvia Plc for the financial year ended
31.12.2025 has been expressed in our auditor’s report
dated 11.2.2026. With this report we do not express
an opinion on the audit of the consolidated financial
statements nor express another assurance conclusion.
Helsinki, 12. March 2026
Deloitte Oy
Audit Firm
Johan Groop
Authorised Public Accountant (KHT)
205Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
Assurance report on the sustainability statement (Translation of the Finnish original)
To the Annual General Meeting of Harvia Oyj
We have performed a limited assurance engagement
on the group sustainability statement of Harvia Oyj
(2612169-5) that is referred to in Chapter 7 of the
Accounting Act and that is included in the report
of the Board of Directors for the reporting period
1.1.–31.12.2025.
OPINION
Based on the procedures we have performed and
the evidence we have obtained, nothing has come
to our attention that causes us to believe that the
group sustainability statement does not comply, in
all material respects, with
- the requirements laid down in Chapter 7 of the
Accounting Act and the sustainability reporting
standards (ESRS), and
- the requirements laid down in Article 8 of the
Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment
of a framework to facilitate sustainable investment,
and amending Regulation (EU) 2019/2088 (EU
Taxonomy).
Point 1 above also contains the process in which Harvia
Oyj has identified the information for reporting in
accordance with the sustainability reporting standards
(double materiality assessment).
Our opinion does not cover the tagging of the
group sustainability statement with digital XBRL
sustainability tags in accordance with Chapter 7,
Section 22, Subsection 1(2), of the Accounting Act,
because sustainability reporting companies have not
had the possibility to comply with that requirement
in the absence of requirements for the tagging of
sustainability information in the ESEF regulation or
other European Union legislation.
BASIS FOR OPINION
We performed the assurance of the group
sustainability statement as a limited assurance
engagement in compliance with good assurance
practice in Finland and with the International Standard
on Assurance Engagements (ISAE) 3000 (Revised)
Assurance Engagements Other than Audits or Reviews
of Historical Financial Information.
Our responsibilities under this standard are further
described in the Responsibilities of the Authorised
Group Sustainability Auditor section of our report.
We believe that the evidence we have obtained is
sufficient and appropriate to provide a basis for our
opinion.
AUTHORISED GROUP SUSTAINABILITY AUDITOR’S
INDEPENDENCE AND QUALITY MANAGEMENT
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 engagement, and we have fulfilled our
other ethical responsibilities in accordance with these
requirements.
The authorised group sustainability auditor applies
International Standard on Quality Management ISQM
1, which requires the authorised sustainability audit
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
regulatory requirements.
206Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
RESPONSIBILITIES OF THE BOARD OF DIRECTORS
AND THE MANAGING DIRECTOR
The Board of Directors and the Managing Director
of Harvia Oyj are responsible for:
- the group sustainability statement and for its
preparation and presentation in accordance with
the provisions of Chapter 7 of the Accounting Act,
including the process that has been defined in the
sustainability reporting standards and in which
the information for reporting in accordance with
the sustainability reporting standards has been
identified,
- the compliance of the group sustainability
statement with the requirements laid down in
Article 8 of the Regulation (EU) 2020/852 of
the European Parliament and of the Council on
the establishment of a framework to facilitate
sustainable investment, and amending Regulation
(EU) 2019/2088, and
- such internal control as the Board of Directors and
the Managing Director determine is necessary to
enable the preparation of a group sustainability
statement that is free from material misstatement,
whether due to fraud or error.
INHERENT LIMITATIONS IN THE PREPARATION
OF A GROUP SUSTAINABILITY STATEMENT
In preparing the group sustainability statement,
the company is required to conduct a materiality
assessment to identify relevant matters to be reported.
This process involves significant management
judgement and choices. Due to the nature and
characteristics of sustainability reporting, this type of
information involves estimates and assumptions, as
well as measurement and evaluation uncertainties.
In reporting forward-looking information according to
ESRS standards, management is required to prepare
the forward-looking information on the basis of
disclosed assumptions about events that may occur in
the future, possible future actions by the Group, and
prepare the forward-looking information based on
these assumptions. The actual outcome is likely to be
different since anticipated events frequently do not
occur as expected.
The determination of greenhouse gas emissions
involves inherent uncertainty due to incomplete
scientific knowledge used to define the numerical
values for emission factors and the combination of
emissions from different gases.
RESPONSIBILITIES OF THE AUTHORISED GROUP
SUSTAINABILITY AUDITOR
Our responsibility is to perform an assurance
engagement to obtain limited assurance about
whether the group sustainability statement is free from
material misstatement, whether due to fraud or error,
and to issue a limited assurance report that includes
our opinion. 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 decisions of users taken on the basis of
the group sustainability statement.
Compliance with the International Standard on
Assurance Engagements (ISAE) 3000 (Revised)
requires that we exercise professional judgment and
maintain professional skepticism throughout the
engagement. We also:
- Identify and assess the risks of material
misstatement of the group sustainability
statement, whether due to fraud or error, and
obtain an understanding of internal control
relevant to the engagement in order to design
assurance 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.
- Design and perform assurance procedures
responsive to those risks to obtain 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.
DESCRIPTION OF THE PROCEDURES THAT HAVE
BEEN PERFORMED
The procedures performed in a limited assurance
engagement vary in nature and timing from, and
are less in extent than for, a reasonable assurance
engagement. The nature, timing and extent of
assurance procedures selected depend on professional
judgment, including the assessment of risks of
material misstatement, whether due to fraud or error.
Consequently, the level of assurance obtained in a
limited assurance engagement is substantially lower
207Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
than the assurance that would have been obtained
had a reasonable assurance engagement been
performed.
OUR PROCEDURES INCLUDED FOR EX. THE
FOLLOWING:
- Performed inquiries of the company’s
management and personnel responsible for
collecting and reporting the information
contained in the sustainability statement at the
group level and for subsidiaries, as well as at
the different levels and business areas of the
organization.
- Obtained an understanding of the company’s
sustainability reporting process, internal
controls, and information systems related to the
sustainability reporting process through inquiries.
- Reviewed the company’s internal guidelines and
policies relevant to the information presented in
the group sustainability statement.
- Reviewed the supporting documentation
and records prepared by the company,
where applicable, and assessed whether they
support the information included in the group
sustainability statement.
- Performed site visits at selected locations.
- With respect to the double materiality
assessment process, we evaluated the
implementation of the process conducted by
the company in relation to the requirements of
the ESRS standards and assessed whether the
disclosed information on the double materiality
assessment is in accordance with the ESRS
standards.
- Evaluated whether the group sustainability
statement meets the requirements of the ESRS
standards, in all material aspects, regarding material
sustainability matters to a significant extent.
- With respect to the EU taxonomy information, we
obtained an understanding of the process by which
the company has identified taxonomy-eligible and
taxonomy-aligned economic activities and assessed
the compliance of the related disclosed information
with the regulations.
Helsinki, 11 February 2026
Deloitte Oy
Authorised Sustainability Audit Firm
Johan Groop
Authorised Sustainability Auditor
208Harvia 2025 Strategy Business operations Sustainability Investors Governance Financial statements
HARVIA PLC
Teollisuustie 1-7
40950 Muurame, Finland
www.harviagroup.com
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