Untitled

BOARD OF DIRECTORS’

REPORT AND FINANCIAL

STATEMENTS

2021

Delete Group Oyj

CONSOLIDATED FINANCIAL STATEMENTS

For the financial year 1.1.–31.12.2021

TABLE OF CONTENTS

Board of Directors’ Report 3

Consolidated Statement of Comprehensive Income 9

Consolidated Statement of Financial Position 10

Consolidated Statement of Cash Flows 12

Consolidated Statement of Changes in Equity 14

Notes to the Consolidated Financial Statements 15

Note 1 Corporate information 15

Note 2 Basis of preparation of the Financial Statements 15

Note 3 Accounting principles for the consolidated 16

financial statements

Note 4 Segments 21

Note 5 Business combinations and Group structure 23

Note 6 Assets held for sale and discontinued operations 24

Note 7 Revenue 25

Note 8 Other operating income 26

Note 9 Materials and services 26

Note 10 Employee benefits 26

Note 11 Depreciation, amortisation and impairment losses 27

Note 12 Other operating expenses 28

Note 13 Finance income and expenses 29

Note 14 Income taxes 30

Note 15 Intangible assets and goodwill 31

Note 16 Property, plant and equipment 34

Note 17 Investments 35

Note 18 Change in deferred tax assets and liabilities 36

Note 19 Inventory 37

Note 20 Trade and other receivables 37

Note 21 Cash and cash equivalents 38

Note 22 Equity, reserves and capital management 38

Note 23 Classification of financial assets and liabilities 39

Note 24 Financial risk management 41

Note 25 Interest bearing loans and borrowings 45

Note 26 Derivative instruments 47

Note 27 Trade payables, other payables and prepayments 48

Note 28 Contingent assets, contingent liabilities 49

and commitments

Note 29 Related party transactions 50

Note 30 Events after balance sheet date 52

Parent company Income Statement 53

Parent company Balance Sheet 54

Notes to the parent company 55

Signatures of the Financial Statements 59

Delete Group Oyj

BOARD OF DIRECTORS’ REPORT 2021

Delete Group Oyj

Delete Group Oyj is the parent company of Delete Group. The company’s main

purpose is to serve as a holding company.

In January 2021, Delete Finland Oy, a group company of the Delete Group, sold

all shares in Delete Demolition Oy, a fully owned subsidiary operating in the

Demolition Services business area, to Lotus Maskin & Transport AB. In Decem-

ber 2021, Delete Sweden AB, a group company of the Delete Group, sold all

its shares in loss making non-core business W-Tech Entreprenad AB, a fully

owned subsidiary.

The Demolition Services business is reported in the Financial Statements 2021

in accordance with the IFRS 5 standard “Assets Held for Sale and Discontin-

ued Operations” and is not included in the nancial statements for continuing

operations. In this Board of Directors’ report, the Demolition Services business

is referred to as Assets held for sale, and Cleaning Services and Recycling

Services are presented as Continuing operations. Unless otherwise stated, all

gures presented in this report include only Continuing operations.

Operations

Delete Group is one of the leading environmental full-service providers in the

Nordic countries. Delete Group offers business-critical services that require

specialist competences and specialised equipment through two business

segments: Cleaning Services and Recycling Services. In January 2021, Delete

Group’s segments included also Demolition Services, which has been reported

as discontinued operations.

THE CLEANING SERVICES business consists of a comprehensive industrial

cleaning services offering as well as real estate services, such as high-power

vacuuming and blowing services, industrial shutdown and maintenance servic-

es, exposure vacuuming of sewers and well emptying, blast cleaning services

and washing and cleaning of facades.

THE RECYCLING SERVICES business segment provides services such as

recycling and waste processing, reception of oily waste, open large waste

container services and crushed concrete aggregate. Delete Group serves its

customers at all stages of material processing: in re-use, recycling, and re-utili-

sation.

Delete Group’s largest customers are industrial and construction companies,

real estate developers and the public sector.

On 31 December 2021, Delete Group’s Continuing operations employed 643

persons at 33 locations in Finland and Sweden.

Operating environment

Cleaning Services

The overall demand for cleaning services has been impacted to some degree

by the coronavirus pandemic, but it is gradually recovering, and the underlying

long-term core demand is relatively resilient and stable. Customers contin-

ue to demand capabilities to handle increasingly complex assignments with

high-quality environmental, health and safety standards, which favours large

professional players like Delete Group with the ability to deliver also in difcult

times.

Recycling Services

Regulatory development in the EU Circular Economy Action plan and national

legislation, as well as generally increasing sustainability awareness, continue

to support the growing demand for recycling services. The market demand for

recycled fuel (REF) has stabilised and is expected to grow through 2022, driven

by the increased use of alternative fuels. The effects of the coronavirus pan-

demic are gradually easing up. There is currently some uncertainty related to

building material supply shortages affecting our customers’ operations to some

degree.

Key events of the 2021 reporting period

In January 2021, Delete Finland Oy, a group company of the Delete Group, sold all

its shares in Delete Demolition Oy, a fully owned subsidiary operating in the Dem-

olition Services business area, to Lotus Maskin & Transport AB. After the transac-

tion, Delete Group no longer operates in the Demolition services business.

In February 2021, the Group’s nancial restructuring was successfully complet-

ed. The signicant decrease of interest-bearing debt and the new share capital

raised had a net impact of EUR 34.8 million on improved consolidated equity.

The nancial restructuring is described in more detail in the section “Financing

and nancial position”.

In December 2021, Delete Sweden AB, a group company of the Delete Group,

sold all its shares in loss making non-core business W-Tech Entreprenad AB, a

fully owned subsidiary.

Net sales, profitability and results

The Group’s net sales in 2021 amounted to EUR 131.1 (116.8) million. The

growth of 12% was enabled by the second quarter performance on the back of

a non-recurring sizable shutdown, while the rst quarter was slightly behind the

previous year due to a harsh winter hindering demand for outdoor services, and

the third and fourth quarters were on similar level to the previous year.

Net sales by segment

EUR million 2021 2020 Change

Cleaning Services 110.2 98.6 12%

Recycling Services 25.0 23.4 7%

Eliminations -3.8 -5.2 -26%

GROUP TOTAL 131.1 116.8 12%

Post Emergency Services and Firestop Installation Services have been reclassified

from Demolition Services to Cleaning Services in 2020. Comparative 2020 sales

have been reclassified accordingly.

The Group’s EBIT for 2021 amounted to EUR -3.1 (-4.1) million. The fair un-

derlying development in 2021 was considerably suppressed by the aforemen-

tioned large one-off maintenance shutdown, with issues in eld efciency and

higher than anticipated resourcing costs, affected to a high degree by addition-

al subcontracting needs to service the expanded scope.

EBIT by segment

EUR million 2021 2020 Change

Cleaning Services 2.7 5.3 -48%

Recycling Services 2.0 -0.6 449%

Administration -7.8 -8.8 10%

GROUP TOTAL -3.1 -4.1 23%

Post Emergency Services and Firestop Installation Services have been reclassified

from Demolition Services to Cleaning Services in 2020. Comparative 2020 sales

have been reclassified accordingly.

In 2021, net nancial expenses amounted to EUR 17.1 (6.6) million, favourably

affected by the EUR 24.8 million write-down of the nominal value of senior se-

cured notes. Gross nancial expenses were EUR -7.0 (-6.6) million.

In the reporting period 2021, the net result for the nancial period including

assets held for sale amounted to EUR 12.0 (-30.1) million.

Key figures for Delete Group

EUR million 2021 2020 2019 2018*

Net sales 131.3 116.8 133.7 114.1

EBITDA 9.9 9.0 12.5 10.1

EBITDA, % 7.5% 7.7% 9.4% 9%

EBIT -3.1 -4.1 -0.2 2.6

EBIT, % -2.4% -3.5% -0.1% 2%

Return on equity 131.4% -229.9% -85.4% -0.7%

Equity ratio 15.8% -1.2% 14.5% 31.5%

Net debt 72.0 118.3 122.7 99.1

*) Implementation of the IFRS 16 standard in 2019 increased net debt and

operating profit compared to previous years.

Post emergency services and firestop installation services have been reclassified

from Demolition Services to Cleaning Services in 2020. Comparative 2020 figures

in the table above have been reclassified accordingly. Information about the for-

mulas and Alternative Performance Measures are presented in the notes section

of the Financial Statements. All figures presented are statutory unless stated

otherwise.

Delete Group Oyj

Delete Group Oyj’s main purpose is to serve as a holding company. In the report-

ing period, the company’s net sales amounted to 0 EUR.

Key figures for Delete Group Oyj

EUR million 2021 2020 2019 2018

Net sales 0.0 0.0 0.0 0.0

Operating prot -0.2 -0.2 -0.2 0.0

Return on equity 38.6% -41.5% -1.0% 0.4%

Equity ratio 56.1% 30.1% 37.9% 44.1%

Net debt 60.0 109.1 109.8 85.0

Financing and financial position

In 2021, cash ow from operating activities was EUR 13.9 (-0.8) million, with the

non-recourse factoring contributing approximately EUR 9.4 million.

Delete Group’s cash and cash equivalents at the end of December 2021 were

EUR 5.2 (7.8) million. The Group’s interest-bearing debt was EUR 79.4 (126.0)

million, consisting mainly of EUR 60.0 million secured notes, an EUR 8.0 million

drawn revolving credit (SSRCF), and lease liabilities of EUR 10.1 million. At the

end of December, the Group had drawn EUR 8.0 million out of the EUR 10.0

million SSRCF facility, used for general corporate purposes, acquisitions, and

capital expenditure. At year end 2021, the only measured covenant for the senior

secured notes and the SSRCF was complied with.

At the end of December 2021, the Group’s net debt amounted to EUR 72.0

(118.2) million. The decrease was mainly due to the nancial restructuring com-

pleted in February 2021 with the following main items:

• The bond maturity was extended by three years to 19 April 2024.

• The bond nominal value was written off by EUR 24.8 million in February 2021.

• The bond was partially repaid by EUR 20.0 million in February 2021 and

further by EUR 5.0 million on 14 May 2021.

• The repayment was funded by EUR 10.0 million newly raised equity in Feb-

ruary 2021, EUR 5.0 million from Demolition Services divestment proceeds,

and EUR 5.0+5.0 million by factoring proceeds.

The signicant reduction of interest-bearing debt and new share capital raised

in the rst quarter 2021 had a net impact of EUR 34.8 million on improved con-

solidated equity, and the amount of the notes outstanding decreased from EUR

109.8 million to EUR 60.0 million.

On 14 April 2021, the SSRCF limit was increased by EUR 3 million to EUR 10

million.

On 30 April 2021, Delete announced that it had reached a factoring threshold

of EUR 10 million. A committed EUR 5 million partial redemption of the notes

due in 2024 was carried out on 14 May 2021, lowering the notes’ nominal value

further down to EUR 60 million.

After the reporting period, in January 2022, Delete extended its SSRCF facility

with Collector Bank to February 2023, with the existing terms.

The balance sheet total at the end of December 2021 was EUR 126.8 (161.5)

million, decreasing mainly because of the sale of W-Tech Entreprenad AB and

the related impairment of assets. Property, plant and equipment totalled EUR

24.7 (31.2) million, decreasing due to deferred capital expenditure during the

coronavirus pandemic period. The equity ratio at the end of December 2021

improved to 15.8% (-1.2%).

Since the completion of the Demolition Services divestment on 29 January

2021, Delete Group no longer carries assets classied under IFRS 5. IFRS 5

implications are reported in more detail in the notes section of the Financial

Statements. W-Tech Entreprenad AB, divested on 30 December 2021, is not

classied as an IFRS 5 asset, but after the divestment decision, the result has

been reported as adjustment item to EBITDA in August–December 2021.

Capital expenditure and corporate transactions

In 2021, capital expenditure in intangible and tangible assets, excluding acqui-

sitions, was EUR 1.8 (2.1) million. Capital expenditure was relatively low, par-

tially due to deferred maintenance investments in preparation for coronavirus

pandemic-related liquidity assurance.

On 29 January 2021, Delete Finland Oy, a group company of the Delete Group,

sold all its shares in Delete Demolition Oy, a fully owned subsidiary operating in

the Demolition Services business area, to Lotus Maskin & Transport AB. After the

transaction, Delete Group no longer operates in Demolition services business.

On 29 December 2021, Delete Sweden AB, a group company of the Delete

Group, sold all its shares in loss-making non-core business W-Tech Entre-

prenad AB, a fully owned subsidiary with a negative sales price.

There were no acquisitions in 2021.

Personnel

Delete Group’s Continuing operations employed 643 (714) people at the end of

December 2021. The average number of personnel in 2021 was 667 (744).

Changes in management

Sirpa Ojala replaced Tommi Kajasoja as Delete’s CEO on 1 November 2021.

Group Management Team member Janika Vilkman re-joined Delete and was

appointed General Counsel after the reporting period on 1 February 2022.

Composition of the Group Management Team as of 1 January 2022:

• Sirpa Ojala, CEO

• Ville Mannola, CFO

• Janika Vilkman, General Counsel (from February 2022)

• Peter Revay, Country Manager, Sweden

Research and development

In 2021, R&D-related expenditure was immaterial and was related to minor

developments of processes and tools.

Summary of significant risks and risk management

Delete Group conducts an extensive annual risk assessment analysis, as a

result of which, risk management capabilities are updated and reviewed and

approved by the Board of Directors.

The Group’s key risks are divided into strategic, operational, and nancing

risks.

Operational risks are mainly related to uncertainty and a lack of visibility and

resourcing due to the coronavirus pandemic, geopolitical developments in

Europe, project execution, and the integration of acquired businesses, both in

terms of quality and nancially. The Group’s business operations also inher-

ently involve risks, such as environmental, health and safety risks, as well as

dependence on suppliers and clients. The internal control environment is under

constant development to improve preventative measures.

Financing risks are mainly related to renancing, credit and liquidity, all of which

may be further affected by coronavirus pandemic-related uncertainties.

Other uncertainties are related to the market environment and ination of costs,

especially for energy and fuel, as well as the successful implementation of the

Group’s transformation strategy, including risks related to the outcome of the

operational improvement plan for increased protability, uncertainty related to

capturing synergies, and risks related to targeted bolt-on acquisitions, person-

nel, and recruitments.

The Group has not identied other relevant changes that can be expected to

have a signicant inuence on the business, given the risks mentioned herein,

at the end of 2021.

Estimates on future development

The underlying demand for Cleaning Services and Recycling Services is ex-

pected to grow in 2022. Delete Group’s efciency and productivity are expect-

ed to improve compared to the previous year.

Delete Group’s operating prot is expected to improve in 2022.

Due to the coronavirus pandemic and the geopolitical developments, the outlook

contains more uncertainty than usual and is based on the assumption that there

are no material changes in the operating environment, postponements of sched-

uled work, or cancellations due to the pandemic and geopolitical development.

Corporate and social responsibility and

non-financial report

Responsibility is an essential part of all Delete Group’s operations. Delete

Group utilises operating principles promoting responsible business methods

and expects all those working for Delete Group to comply with them. Delete

Group actively searches for opportunities to support its customers with servic-

es whose value is substantially based on responsibility and sustainable devel-

opment.

Delete Group publishes a Corporate and Social Responsibility Report on the

company’s website as part of the Annual Report. The report includes the non--

nancial report.

Disclosure according to the

EU Taxonomy Regulation

The EU Taxonomy Regulation, which will progress in phases, partially entered

into force in 2021. The rst delegated act, the Climate Delegated Act, was

introduced in 2021 and covers the rst two of the six environmental objectives:

climate change mitigation and adaptation. In 2022, another delegated act will

be published, the Environmental Delegated Act, which addresses four other

environmental objectives.

In the reporting for 2021, the share of turnover, capital expenditure and opera-

tional expenditure that is taxonomy-eligible, i.e., in accordance with the Climate

Delegated Act are published. For 2021, no assessment of Taxonomy alignment

with detailed technical screening criteria is required.

We have assessed the taxonomy-eligibility of Delete’s business based on

the descriptions in Annex I (climate change mitigation) and Annex II (climate

change adaptation) of the Climate Delegated Act as well as NACE codes. The

EU Taxonomy Regulation will enter into force in stages and is therefore still un-

nished. Delete’s assessment of the taxonomy-eligibility of its operations may

change with the new guidelines and regulations entering into force. With the

entry into force of the Environmental Delegated Act, the targets will be extend-

ed to include the use of resources and the circular economy, which are closely

related to Delete’s Recycling Services business.

According to Delete’s interpretation of NACE code, we have assessed certain

operations of Delete Group as taxonomy-eligible. We estimate these business-

es to account for 9% percent of our net sales.

Shares and shareholders

At year end 2021, the number of registered shares in Delete Group Oyj was

1,085,859,500 P-shares and 308,964,900 C-shares. Each share carries one

vote. The Group is owned by Ax DEL Oy (86% of the shares) and a group of

key employees and other minority investors (14%). The Group does not hold

any of its own shares.

Corporate governance

In its decision-making and administration, Delete Group Oyj applies the Finnish

Companies Act (624/2006, as amended), the Finnish Securities Markets Act

(746/2012, as amended) as well as rules and guidelines of Nasdaq Helsinki Ltd.

Delete Group primarily follows the Finnish Corporate Governance Code 2020,

with a few exceptions due to its ownership structure. These exceptions relate

Sustainable activity

EUR million Revenue OPEX CAPEX

Cleaning Services

Renewal of waste water collection

and treatment

1.0 0.8 0.0

Collection and transport of

non-hazardous waste in source

segregated fractions

4.7 4.1 0.5

Recycling Services

Collection and transport of

non-hazardous waste in source

segregated fractions

6.6 5.1 0.0

Material recovery from

non-hazardous waste

9.8 7.7 0.1

to, among others, rules regarding Annual General Meetings and the composi-

tion of the Board. Delete Group publishes, together with the Annual Report, a

separate Corporate Governance Statement on the company’s website.

Annual General Meeting

Delete Group Oyj’s Annual General Meeting (AGM) held on 13 April 2021 approved

the nancial statements for the nancial year 1 January–31 December 2020 and

discharged the members of the Board of Directors and the CEO from liability. The

AGM resolved that no dividend would be paid for the scal year 2020.

Martin Forss, Åsa Söderström Winberg, Ronnie Neva-aho and Christian

Schmidt-Jacobsen were re-elected as members of the Board of Directors. Con-

vening after the Annual General Meeting, the Board of Directors elected Martin

Forss as its chairman.

KPMG Oy Ab was elected to continue as the auditor of the company with

Teemu Suoniemi, Authorised Public Accountant, acting as the principal auditor.

The Group’s auditor KPMG appointed a new principal auditor for Delete Group,

Ari Eskelinen, CPA, effective from 30 June 2021.

The Chairman of the Board will be paid EUR 50,000 and the Board members

EUR 22,000 as remuneration for 2021. The appointed members of the Audit

Committee and the Project Committee will be paid EUR 4,000 as additional

remuneration, and the appointed members of the Remuneration Committee

EUR 2,000. No remuneration shall be paid for the representatives of Axcel Man-

agement A/S. It was resolved that the remuneration for the auditor shall be paid

against an invoice.

The Board’s proposal for distribution of profit

The consolidated net prot for the year 2021 including assets held for sale

totalled EUR 12.0 million, and the net prot of the parent company was EUR

25.4 million. The parent company’s distributable funds on 31 December 2021

totalled EUR 83.4 million. The Board of Directors will propose to the Annual

General Meeting that no dividend will be paid.

Key events after the reporting period

Management Team member, General Counsel Janika Vilkman, re-joined Delete

on 1 February 2022.

In January 2022, Delete extended its SSRCF facility with Collector Bank to

February 2023, with the existing terms.

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

The financial statements should be read

in conjunction with the accompanying

notes that are an integral part of these

consolidated financial statements.

EUR thousand Note 1.1.-31.12.2021 1.1.-31.12.2020

CONTINUING OPERATIONS

Revenue 131,328 116,759

Other operating income 8 536 206

Materials and services 9 -57,076 -46,950

Employee benefits 10 -51,996 -47,822

Depreciation, amortisation and impairment losses 11 -13,011 -13,068

Other operating expenses 12 -12,911 -13,194

Operating profit -3,131 -4,068

Financial income 13 24,075 33

Financial expenses 13 -6,954 -6,605

Net financial expenses 17,121 -6,571

Profit (-loss) before taxes 13,990 -10,640

Income taxes 14 -18 483

Profit (-loss) for the financial year

from the continuing operations

13,972 -10,157

Profit (-loss) for the financial year

from the discontinued operations

6 -2,048 -20,091

Profit (-loss) for the financial year 11,924 -30,248

OTHER COMPREHENSIVE INCOME

Items that may be subsequently

reclassified to profit or loss

Foreign currency translation difference 53 106

TOTAL COMPREHENSIVE INCOME (-LOSS)

FOR THE YEAR 11,977 -30,142

CONSOLIDATED STATEMENT OF FINANCIAL POSITION – ASSETS

The financial statements should be read

in conjunction with the accompanying

notes that are an integral part of these

consolidated financial statements.

EUR thousand Note 31.12.2021 31.12.2020

ASSETS

NON-CURRENT ASSETS

Goodwill 15 74,140 74,632

Intangible assets 15 2,767 3,602

Property, plant and equipment 16 24,699 31,172

Right of use assets 16 9,957 11,299

Investments 17 7 7

Deferred tax assets 18 1,690 1,999

TOTAL NON-CURRENT ASSETS 113,261 122,711

CURRENT ASSETS

Inventories 19 1,185 1,392

Trade receivables and other current assets 20 7,134 11,889

Tax receivables 86 784

Cash and cash equivalents 21 5,151 7,752

TOTAL CURRENT ASSETS 13,556 21,817

Assets held for sale 6 0 16,952

TOTAL ASSETS 126,817 161,480

CONSOLIDATED STATEMENT OF FINANCIAL POSITION – EQUITY AND LIABILITIES

The financial statements should be read

in conjunction with the accompanying

notes that are an integral part of these

consolidated financial statements.

EUR thousand Note 31.12.2021 31.12.2020

EQUITY

Share capital 22 80 80

Reserve for invested non-restricted equity 79,662 69,661

Translation reserve -774 -827

Retained earnings -70,829 -40,581

Profit (-loss) for the financial year 11,924 -30,248

TOTAL EQUITY 20,063 -1,915

LIABILITIES

NON-CURRENT LIABILITIES

Borrowings from financial institutions 23 60,000 0

Lease liabilities 25 5,111 6,824

Instalment credit 19 161

Derivative liabilities 0 41

Deferred tax liabilities 2,181 2,543

CURRENT LIABILITIES

Interest-bearing financial liabilities 6,995 114,084

Lease liabilities 25 5,036 4,899

Prepayments 7 8 11

Trade payables 7,975 10,044

Instalment credit 10 72

Other payables 7,715 3,471

Tax liabilities 38 79

Accrued expenses and deferred income 27 11,667 13,070

TOTAL LIABILITIES 106,754 155,300

Liabilities directly attributable to assets held for sale 6 0 8,096

TOTAL EQUITY AND LIABILITIES 126,817 161,480

CONSOLIDATED STATEMENT OF CASH FLOWS

CONTINUES

The financial statements should be read

in conjunction with the accompanying

notes that are an integral part of these

consolidated financial statements.

EUR thousand 31.12.2021 31.12.2020

CONTINUOUS OPERATIONS

CASH FLOWS FROM OPERATING ACTIVITIES

Net profit (loss) before taxes 13,990 -10,640

Adjustments:

Depreciation, amortisation and impairment losses 13,011 13,068

Financial expenses -17,121 6,571

Financial income 0 0

Other adjustments 739 -137

Change in net working capital:

Change in trade and other receivables 9,734 8,987

Change in inventory 195 -169

Change in trade and other payables 1,969 -1,844

Received interest 0 0

Paid interest -8,513 -7,164

Income taxes paid -100 110

CASH FLOWS FROM OPERATING ACTIVITIES,

CONTINUING OPERATIONS (A) 13,906 8,782

CASH FLOWS FROM INVESTING ACTIVITIES

Investments in intangible assets -133 -104

Investments in property, plant and equipment -1,910 -2,561

Proceeds from disposal of property, plant and equipment 232 552

Proceeds for business divestments 6,373 0

Change in other receivables 0 -2

CASH FLOWS FROM INVESTING ACTIVITIES,

CONTINUING OPERATIONS (B) 4,562 -2,114

The financial statements should be read

in conjunction with the accompanying

notes that are an integral part of these

consolidated financial statements.

EUR thousand 31.12.2021 31.12.2020

CASH FLOWS FROM FINANCING ACTIVITIES

Maksullinen osakeanti 10,001 0

Repayments of non-current loans and borrowings -148 -819

Change in current loans and borrowings -24,406 -2,263

Principal elements of lease payments -5,831 -5,925

CASH FLOWS FROM FINANCING ACTIVITIES,

CONTINUING OPERATIONS ( C ) -20,384 -9,007

CHANGE IN CASH FLOWS, CONTINUING OPERATIONS (A+B+C) -1,916 -2,338

Cash and cash equivalents on 1 January 7,752 5,211

Exchange rate differences 0 0

Net change in cash from Continued operations -1,916 -2,338

Net change in cash from discontinued operations -685 4,879

Cash and cash equivalents on 31 December 5,151 7,752

Change -2,601 2,541

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

The consolidated nancial statements

should be read in conjunction with the

accompanying notes.

Equity attributable to shareholders of the parent company

EUR thousand

capital

Reserve for

invested non-

restricted equity Translation reserve Retained earnings Total

Equity on 1 January 2021 80 69,661 -827 -70,829 -1,915

Share capital increase 0 10,001 10,001

Comprehensive income

Profit for the reporting period 0 0 0 11,924 11,924

Other comprehensive income

Translation differences 0 0 53 0 53

Total comprehensive income 0 0 53 11,924 11,977

EQUITY ON

31 DECEMBER 2021 80 79,662 -774 -58,905 20,063

Equity on 1 January 2020 80 69,661 -933 -40,581 28,227

Share capital increase 0 0 0

Comprehensive income

Profit for the reporting period 0 0 0 -30,248 -30,248

Other comprehensive income

Translation differences 0 0 106 0 106

Total comprehensive income 0 0 106 -30,248 -30,142

EQUITY ON

31 DECEMBER 2020 80 69,661 -827 -70,829 -1,915

NOTE 1. BASIC INFORMATION FOR THE GROUP

NOTE 2. BASIS FOR PREPARATION FOR THE FINANCIAL STATEMENTS

NOTES TO THE CONSOLIDATED

FINANCIAL STATEMENTS

Delete Group is a service company that operates in

Finland and Sweden providing environmental ser-

vices to corporate customers and the public sector.

Industrial Cleaning business provides services to

industry, power plants, shipyards and customers in

construction business in Finland and Sweden. The

recycling business receives and processes con-

struction and industrial waste in the Helsinki metro-

politan area and in the Tampere region. The Dem-

olition Services business has been divested and is

presented as Discontinued operations and is not

included in the nancial statements for continuing

operations. The gures in the statement of income

and the items related to it, including comparison

gures, have been stated to show the discontinued

operations separately from continuing operations.

The parent company in the Group is Delete Group

Oyj that is domiciled in Helsinki, Finland (business

ID 2565169-4). The parent company’s registered

address is Postintaival 7, 00230 Helsinki , Finland.

The Board of Directors of Delete Group Oyj has au-

thorised these consolidated nancial statements for

issue on 24 March 2022. According to the Finnish

Limited Liability Companies Act, shareholders may

approve or reject the nancial statements in the

Annual General Meeting held after their publication.

The General Meeting may also decide to amend the

nancial statements.

These consolidated nancial statements are pre-

pared in accordance with the International Financial

Reporting Standards (IFRSs) as adopted by EU and

in force on 31 December 2021. The International

Financial Reporting Standards refer to the standards

and associated interpretations in the Finnish Ac-

counting Act and in regulations issued under it that

are endorsed by the EU in accordance with the pro-

cedure laid down in Regulation (EC) No. 1606/2002.

The Group has not early adopted any standards

or interpretations. The notes to the consolidated

nancial statements are also in accordance with the

requirements of the Finnish accounting and corpo-

rate legislation supplementing the IFRS rules.

The consolidated nancial statements have been

prepared under the historical cost convention, except

for nancial assets and nancial liabilities (including

derivative instruments) at fair value through prot.

The preparation of nancial statements in conform-

ity with IFRS requires the Group’s management

to make estimates and assumptions and to make

choices when applying the accounting principles.

Judgements that the management has made when

applying the accounting principles as well as the

assumptions on future development and the key as-

sumptions related to estimates are discussed in the

section “Critical accounting judgments and sources

of estimation uncertainty”.

IFRIC’s new agenda decision regarding cloud

computing and related guidance for capitalisation of

certain implementation costs has no material effect

on Delete Group’s accounting principles or nancial

reporting.

The amended standards in force from the begin-

ning of the reporting period have not had material

impacts on the Group’s consolidated nancial

statements.

NOTE 3. ACCOUNTING PRINCIPLES FOR

THE CONSOLIDATED FINANCIAL STATEMENTS

Consolidation principles

The consolidated nancial statements include the

parent company Delete Group Oyj and all compa-

nies over which the parent company has control.

Control exists when the Group is exposed, or has

rights, to variable returns from its involvement with

the investee and has the ability to affect those

returns through its power over the investee. All sub-

sidiaries are 100 percent owned.

The consolidated nancial statements are prepared

using the acquisition method, according to which

the separately identied assets, liabilities and

contingent liabilities of the acquired company are

measured at their fair value at the date of acquisi-

tion. A subsidiary is consolidated from the date of

acquisition until the date when the parent compa-

ny loses control over the subsidiary. Intra-Group

transactions, balances, income and expenses are

eliminated when preparing consolidated nancial

statements. Unrealised losses are not eliminated in

case losses are due to impairment.

Items in foreign currency

The income statement and balance sheet of each

individual Group company is measured in the

currency of the primary economic environment

in which the company is operating (functional

currency). The consolidated nancial statements

are presented in Euro, which is the functional

and presentation currency of the Group’s parent

company. Subsidiaries ’ nancial statement items

are recognised in the functional currency of each

company.

Transactions in foreign currency are translated into

Euros at the exchange rates prevailing at the trans-

action date.

• Foreign currency-denominated receivables

and liabilities are translated into Euros at the

exchange rates prevailing at the reporting

date.

• Foreign exchange gains and losses arising

from translation of assets and liabilities in

foreign currency in respect of operating items

are presented in the consolidated income

statement affecting operating prot and in

respect of nancial items in nance income

and expenses.

Income statements for those subsidiaries with a

non-Euro functional currency are translated into

Euros at the average exchange rates of the nancial

year. Balance sheets of such companies are trans-

lated into Euros at the closing exchange rates of the

nancial year. The resulting exchange differences as

well as exchange differences arising from the elimi-

nation of acquired net assets of foreign subsidiaries

are recognised as translation differences in other

comprehensive income.

Revenue recognition

Revenue is measured based on the consideration

specied in a contract with the customer. The Group

recognises revenue when it transfers control over a

good or service to a customer.

The Group has mostly written agreements with the

customers. For some customers there are frame

agreements. In those cases, a contract is estab-

lished as a combination of the frame agreement and

each purchase order that the customer has placed

and the Group has approved.

Typically, one service contract includes one perfor-

mance obligation. In some contracts there may be

a discount as a variable component. There are no

signicant nancing components. Each delivery of

scrap metal forms one performance obligation.

If a contract which includes two or more perfor-

mance obligations, the transaction price is allocated

by their stand-alone selling prices, either based on

their list prices or if not available, based on expect-

ed cost plus margin.

Most of the Group’s contracts are service type

contracts. Revenues from short term services are

recognised when the services have been rendered

or evenly over the contract term when the work is

being carried out. Revenues from long-term con-

tracts are recognised over time and the completion

of the project is measured through cost incurred of

the estimated total costs.

Goodwill and intangible assets

Goodwill is measured as the excess of the sum of

consideration transferred and the acquisition date fair

value of any previous equity interest in the acquired

equity over the fair value of the net identiable assets

acquired. It represents a consideration made by the

acquirer in anticipation of future economic benets

from assets that cannot be individually identied and

separately recognised as assets. Goodwill is not am-

ortised, but instead it is subject to impairment testing

once a year, or more frequently if circumstances

indicate that it might be impaired. Subsequent to its

initial recognition, goodwill acquired in a business

combination is carried at initial cost less any accu-

mulated impairment charges.

The Group’s intangible assets mainly consist of

enterprise resource planning systems, licenses,

electricity connections and customer relationships

that are recognised through business combinations.

Intangible assets with a nite useful life are meas-

ured at cost less accumulated amortization and

impairment losses. Amortization is calculated on a

straight-line basis over the estimated useful lives of

the assets. The Group applies average depreciation

period of 3-5 years for all intangible assets, except

for electricity connections which are not amortised.

Intangible assets with indenite useful lives are not

amortised but tested annually for impairment.

Cloud-based software where the Group does not

have control over the software but only license

to use the software under the contract period is

classed as service contracts.

Research and development

Research costs are expensed as incurred. Develop-

ment costs are capitalised when it is probable that a

development project will generate future economic

benets, and the cost can be measured reliably. Oth-

er development costs are expensed. Currently, the

Group has no major ongoing development projects.

Property, plant and equipment

The Group’s property, plant and equipment consist

of land, buildings, machinery and equipment, oth-

er tangible assets and assets under construction.

These items of property, plant and equipment are

recognised in the balance sheet when it is prob-

able that future economic benets will ow to the

Group and their cost can be measured reliably.

The Group’s property, plant and equipment are

measured at cost, less accumulated depreciation

and impairment losses. The cost includes all ex-

penditure attributable to bringing the asset ready

for it to be capable of operating in the intended

use. However, after the initial recognition cost

are capitalized only if it is probable that they will

generate more future economic benet compared

with earlier circumstances. Otherwise, the costs

are recognised as an expense in the income state-

ment.

The Group’s property, plant and equipment are

depreciated on a straight-line basis over the esti-

mated useful lives, except for land.

The Group applies following average depreciation

periods:

• Constructions 10 years

• Buildings 20-30 years

• Installed technical devices 10 years

• Other property,

plant and equipment 10 years

• Machinery and equipment 5-15 years

The Group’s gains or losses related to sale of

property, plant and equipment are recognised

as other operating income or other operating

expenses in the income statement.

Impairment of intangible and

property, plant and equipment

Non-current assets are regularly reviewed for

identifying any indications of impairment. Goodwill

is tested annually for impairment. For this purpose,

goodwill has been allocated to the cash-generating

units.

Allocation is made to such cash-generating units or

groups of cash-generating units that are expected

to benet from the business combination that the

goodwill relates to.

Assets that are depreciated or amortised are sub-

ject to assessment whether there are any changes

in the circumstances that would indicate that the

carrying amounts may not be recoverable. An

impairment loss is the amount by which the carry-

ing amount exceeds the recoverable amount. For

non-current assets the recoverable amount is its

fair value less cost to sell or value in use whichever

is greater. Value in use is determined by discounting

the future cash ows expected to be generated by

the asset.

An impairment charge on goodwill is recognised in

the consolidated income statement, if the impair-

ment test shows that its carrying amount exceeds

its estimated recoverable amount. In that case, the

carrying amount of goodwill is written down to its

recoverable amount. An impairment loss on good-

will is never reversed.

Leases

The Group leases assets such as premises, ma-

chinery and equipment and vehicles as a lessee. At

inception of a contract, the Group assesses wheth-

er a contract is, or contains, a lease. A contract is,

or contains, a lease if the contract conveys the right

to control the use of an identied asset for a period

in exchange for consideration. the Group has elect-

ed to separate non-lease components from the

lease component at commencement of a contract.

The Group recognises a right-of-use asset and a

lease liability at the lease commencement date.

The right-of-use asset is initially measured at cost,

which comprises the initial amount of the lease lia-

bility adjusted for any lease payments made before

the commencement date, incentives received, initial

direct costs incurred and an estimate of costs to

restore the underlying asset. The right-of-use asset

is depreciated using the straight-line method during

the lease term with same principles as the Group’s

property, plant and equipment.

The lease liability is initially measured at the present

value of the lease payments that are not paid at the

commencement date, discounted using the inter-

est rate implicit in the lease or, if that rate cannot

be readily determined, the Group’s incremental

borrowing rate. The lease liability is measured at

amortised cost using the effective interest method.

Lease payments included in the measurement of

the lease liability comprise the following: xed pay-

ments and variable lease payments that depend on

an index or a rate. The options related to extension

of the lease term is included in the lease term if it is

reasonably certain that the option is exercised.

The Group applies the exemptions provided by the

standard not to recognise right-of-use assets and

lease liabilities for leases of low-value assets and

short-term leases. The Group recognises the lease

payments associated with these leases as an ex-

pense on a straight-line basis over the lease term.

Discontinued operations and

non-current assets held for sale

A discontinued operation is a component of the

Group’s business, the operations and cash ows of

which can be clearly distinguished from the rest of

the Group, and which represents a separate major

line of business or geographic area of operations.

Classication as a discontinued operation occurs

at the disposal or when the operation meets the

criteria to be classied as held-for-sale.

When an operation is classied as a discontinued

operation, the comparatives in statement of prot

or loss and OCI is re-presented as if the operation

had been discontinued from the start of the com-

parative year.

Non-current assets, or disposal groups are classi-

ed as held-for-sale if it is highly probable that they

will be recovered primarily through sale rather than

through continuing use. The comparatives in the

balance sheet are not reclassied.

Held for sale assets, or disposal groups, are meas-

ured at the lower of their carrying amount and fair

value less costs to sell. Any impairment loss on a

disposal group is allocated rst to goodwill, and

then to the remaining assets and liabilities on a

pro rata basis, except that no loss is allocated to

inventories, nancial assets, deferred tax assets,

which continue to be measured in accordance with

the Group’s other accounting policies. Impairment

losses on initial classication as held-for-sale or

held-for-distribution and subsequent gains and

losses on remeasurement are recognised in prot

or loss. Once classied as held-for-sale, intangible

assets and property, plant and equipment are no

longer amortised or depreciated.

In case the plan of sale changes so that the clas-

sifying criteria no longer are fullled, the asset or

the disposal group classied as held for sale is

transferred back to assets in continuous use. The

asset or the group of assets is either measured at

its carrying value before classication, adjusted for

any depreciation, amortisation or revaluations that

would have been recognised without classication,

or at the lower recoverable amount.

Inventory

The Group’s inventory consists mainly of materials

used in connection with providing services.

Inventories are measured at cost or net realizable

value, whichever is lower. Net realizable value is

the estimated selling price less the estimated costs

necessary to make the sale in the ordinary course

of business. The cost is based on the FIFO (rst in,

rst out) principle.

Financial assets

Financial assets are classied based on the Group’s

business model for managing nancial assets and

the asset’s contractual cash ow characteristics

into the following categories: nancials assets

measured at amortised cost and nancial assets

measured at fair value through prot or loss. The

asset is classied according to the objective of the

business model and the contractual cash ow char-

acteristics of the asset, or by applying the fair value

option at initial acquisition.

Purchases and sales of nancial assets are rec-

ognised at trade date, which is the date on which

the Group commits to purchase or sell the nancial

instrument. Transaction costs are included in the

original carrying amount of the nancial asset when

the asset is not measured at fair value through prof-

it or loss. Financial assets measured at fair value

through prot or loss are measured at fair value

at initial recognition and the transaction costs are

recognised in prot or loss.

Financial assets measured at

amortised cost

Financial assets whose business model’s objective

is to hold nancial assets to maturity in order to col-

lect contractual cash ows are classied as nan-

cial assets measured at amortised cost. The cash

ows of these assets consist solely of payments

of principal and interest on the principal amounts

outstanding.

Trade receivables and other receivables that are

non-derivative assets are classied as nancial

assets measured at amortised cost. The carrying

amount of current trade receivables and other

receivables is considered to be equal to their fair

value. Trade receivables and other receivables are

presented on the balance sheet as current assets if

they are expected to be realized within 12 months

after the end of the reporting period.

After initial recognition, these nancial assets are

measured at amortised cost using the effective

interest rate method and by deducting any impair-

ment. At each reporting date the Group recognises

an allowance for expected credit losses for nancial

assets recognised at amortised cost.

Expected credit losses are estimated in accordance

with so-called simplied approach allowed in IFRS

9 where credit losses are recognised at an amount

equal to expected credit losses over the entire life-

time of the asset. The Group applies the simplied

approach to receivables measured at amortised

cost. Expected credit losses are recognised using

a provision matrix. Expected credit losses for trade

receivables and assets based on customer con-

tracts are estimated based on historical information

on credit losses and estimation of future prospects.

Expected credit losses are recognised under other

operating expenses in the statement of prot or

loss.

Financial assets measured at

fair value through profit or loss

Financial assets that have been acquired to be

held for trading or that are designated as at fair

value through prot or loss at initial recognition

are classied as nancial assets measured at fair

value through prot or loss. Financial assets held

for trading are acquired primarily for the purpose

of obtaining prot in the short or long term and are

presented in either non-current or current nancial

assets. Financial assets measured at fair value

through prot or loss consist of shares and deriva-

tives that are not subject to hedge accounting.

Realised and unrealised gains and losses arising

from changes in fair value are recognised in prot

or loss. If there are no quoted prices for invest-

ments, the Group applies valuation techniques to

their measurement.

Financial liabilities

Financial liabilities are recognised at trade date and

measured using the effective interest rate meth-

od at amortised cost. Transaction costs for those

nancial liabilities that are measured at amortised

cost are included in the initial cost. Financial lia-

bilities are included in both non-current and cur-

rent liabilities. Financial liabilities are classied as

current unless the Group has an unconditional right

to defer payment for at least 12 months from the

reporting date. Financial liabilities are derecognised

when the liability is paid or becomes due. In this

case, gains or losses on derecognition are recog-

nised in prot or loss.

Derivative instruments

The Group’s nancial instruments measured at fair

value through prot or loss include derivative instru-

ments. The company’s derivatives include inter-

est rate swaps, with which part of the company’s

variable rates are swapped xed. The Group does

not apply hedge accounting in accordance with

IFRS 9. Derivative nancial instruments are includ-

ed in current assets or liabilities, and changes in the

unrealized fair value are recognized in prot or loss.

Cash and cash equivalents

Cash and cash equivalents comprise cash balanc-

es, call bank deposits and other short-term liquid

investments. Cash and cash equivalents have a

maturity of up to three months from the acquisi-

tion date and are recognised on the trade date

and measured at cost. Foreign currency items are

translated into Euros on the closing date exchange

rates.

Borrowing costs

The costs directly related to a specic loan from

nancial institutions are deducted from the original

amount of the loan and recognised as nancial

expenses using the effective interest rate method.

Other interest and other costs related to inter-

est-bearing liabilities are recognised in prot or loss

as incurred.

Operating profit

Operating prot consists of revenue and other op-

erating income less costs of materials and services,

employee benets expenses and other operating

expenses as well as depreciation, amortisation

and impairment losses. Exchange rate differences

resulting from working capital items are included in

operating prot.

Employee benefits

Pension liability

All pension plans in the Group are classied to

dened contribution plans as the Group pays xed

contributions into a separate entity and the Group

has no legal or constructive obligation to pay fur-

ther contributions if the fund does not hold suf-

cient assets to pay retirement benets. The con-

tributions are recognised in the income statement

during the nancial period, to which the charged

contribution applies. There are no dened benet

plans in the Group.

Current income taxes

and deferred taxes

Income taxes consist of current taxes, income tax-

es related to prior periods and deferred taxes. The

income tax charge for the nancial year is based

on taxable income for all Group companies, which

is calculated according to the local tax rates for

each Group company. Current taxes and changes

in deferred taxes that relate to items recognised

in other comprehensive income are recognised in

other comprehensive income.

Generally deferred taxes are calculated for all

temporary differences between the carrying amount

and tax bases of assets and liabilities. Deferred tax

liability is not recognised for initial recognition of

goodwill, or if it arises from the initial recognition of

an asset or liability in a transaction which is not a

business combination and affects neither account-

ing prot nor taxable prot at the time of the trans-

action. Deferred tax liabilities are not recognised

for the retained earnings of subsidiaries, unless it is

probable that the temporary differences will reverse

in a foreseeable future. Deferred tax liabilities shall

be measured at the local tax rates that have been

enacted by the end of the reporting period.

Deferred tax assets are recognised when it is prob-

able that the future taxable prot will be available

against which the temporary difference can be

utilized. The carrying amount of a deferred tax asset

shall be reviewed at the end of each reporting period.

Critical accounting judgments and

sources of estimation uncertainty

Revenue recognition

Revenue recognised over time requires manage-

ment judgments in relation to expected revenue

and cost as well as to reliable measurement of the

Group’s progress towards complete satisfaction of

a performance obligation.

Impairment testing

Impairment testing is affected by the forecasts pre-

pared by management, which impairment testing

calculations are based on. The disclosures required

under IAS 36 on impairment tests are presented in

Note 15.

Business combination:

measurement of acquired assets

In connection with business combinations IFRS 3

standard is applied, which requires the valuation

of assets and liabilities acquired at the acquisition

date at fair value. This fair value measurement re-

quires management estimates. Information related

to business combinations is presented in Note 5.

Adoption of new and amended standards and inter-

pretations applicable in future nancial years

The Group has not early adopted the new or

amended standards and interpretations issued

by the IASB. The Group will adopt them as of the

effective date or, if the date is other than the rst

day of the nancial year, from the beginning of the

subsequent nancial year. The published amended

standards are not expected to have any signicant

effect on the Group’s consolidated nancial state-

ments.

NOTE 4 SEGMENTS

The Group has two reportable segments, Industrial

Cleaning Services and Recycling Services, which

are the Group’s business areas. The reporting

segments have been aggregated from the group’s

three operating segments: the operating segments

for Industrial Cleaning Services in Finland and Swe-

den have been combined as a reportable segment

as they are considered to be similar and having

similar economic characteristics. Demolition Ser-

vices, which was previously reported as a reporta-

ble segment, has been classied as discontinued

operations.

The Industrial Cleaning Services segment consists

of a comprehensive industrial service offering as

well as property services, such as high-power vac-

uuming and blowing services, industrial shutdown

and maintenance, exposure vacuuming of sewers

and well emptying, industrial cleaning, blast clean-

ing services and washing and cleaning of facades.

The Recycling Services Segment provides services

such as recycling and waste processing, reception

of oily waste, open large waste container services

and crushed concrete in the Helsinki metropolitan

area and in the Tampere region.

Segment information is based on IFRS accounting

principles applied in the group, and it is consistent

with the group’s internal reporting.

The measure of prot or loss for the reportable

segment is operating prot, which is regularly re-

viewed by the Group’s management team to make

decisions about resources to be allocated to the

segment and to assess its performance.

Administration costs are not allocated to segments

but are presented separately. Any transactions be-

tween segments are based on market prices.

One external customer exceeded 10 per cent share

of Group revenues in 2021, due to a non-recurring

sizable shut-down.

CONTINUES

EUR thousand 2021 2020

Net sales External Intra group Total External Intra group Total

Industrial Cleaning 107,558 2,610 110,168 95,596 2,959 98,555

Recycling Services 23,770 1,222 24,993 21,162 2,247 23,410

Elimination 3,833 -3,833 5,206 -5,206

GROUP 131,328 131,328 116,759 116,759

DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES

EUR thousand 2021 2020

Industrial Cleaning -8,151 -8,203

Recycling Services -2,973 -2,939

Administration -1,887 -1,925

GROUP -13,011 -13,068

OPERATING PROFIT (EBIT) 2021 2020

Industrial Cleaning 2,718 5,261

Recycling Services 1,999 -572

Administration -7,848 -8,758

Operating profit (EBIT) -3,131 -4,068

Net financial expenses 17,121 -6,571

PROFIT (-LOSS) BEFORE TAXES 13,990 -10,640

GEOGRAPHICAL INFORMATION 2021 2020

EUR thousand Net sales Non-current assets Net sales Non-current assets

Finland 91,398 90,187 78,871 96,402

Sweden 39,930 23,074 37,888 26,309

TOTAL 131,328 113,261 116,759 122,711

NOTE 5 BUSINESS COMBINATIONS AND GROUP STRUCTURE

Changes in ownership in subsidiaries during 2021

Delete Group had no business combinations during 2021. Delete Demolition Oy

was divested in January 2021 and W-Tech Entreprenad AB in December 2021.

Group structure

Parent company in Delete Group is Delete Group Oyj which is domiciled in

Helsinki. The company acts as the Group’s parent company and manages

holdings in subsidiaries. The company’s purpose is to provide intra-group

management services and raise funding.

All subsidiaries have been consolidated in the nancial statements.

On 30 June 2020, Delete incorporated its Recycling Services business

in Finland into Delete Ympäristöpalvelut Oy.

Subsidiary Domicile Ownership interest %

Ax DEL2 Oy Finland 100.0

• Delete Oy Finland 100.0

• Delete Finland Oy Finland 100.0

• Delete Ympäristöpalvelut Oy Finland 100.0

• Sertech Oy Finland 100.0

• Delete Sweden AB Sweden 100.0

• Delete Service AB Sweden 100.0

• Waterjet Entreprenad Karlstad AB Sweden 100.0

• Waterjet Entreprenad i Oslo AS Norway 100.0

• Waterjet Entreprenad i Stockholm AB Sweden 100.0

The Demolition Services business is reported in this report in accordance with

IFRS 5 “Assets Held for Sale and Discontinued Operations” and is not included

in the Financial Statements Bulletin for continuing operations. The gures in the

statement of income and the items related to it, including comparison gures,

have been stated to show the discontinued operations separately from continu-

ing operations.

On 29 January 2021, Delete Finland Oy, a group company of the Delete Group,

sold all its shares in Delete Demolition Oy, a fully owned subsidiary operating

in the Demolition Services business area, to Lotus Maskin & Transport AB for a

purchase price of EUR 7.3 million. After the transaction, Delete Group no longer

operates in the Demolition Services business. Any post-transaction costs relat-

ed to Demolition Services are reported under IFRS 5 during 2021.

In 2021, revenue from services recognised over time was EUR 2.0 (32.0) milion.

Assets held for sale, items on statement of financial position

EUR thousand 2021 2020

Intangible assets and property, plant and

equipment 5,742

Inventories 269

Other receivables 10,941

Trade payables and other liabilities -8,096

NET ASSETS 0 8,856

Cash ﬂows from assets held for sale

EUR thousand 2021 2020

Cash flow from operating activities -677 6,422

Cash flow from investing activities -7 -512

Cash flow from financing activities -1 -1,031

TOTAL -685 4,879

NOTE 6 ASSETS HELD FOR SALE AND DISCONTINUED OPERATIONS

Result for the financial period from the assets held for sale

EUR thousand 2021 2020

Net sales 2,828 51,715

Expenses -4,839 -51,357

TOTAL -2,011 358

Goodwill impairment -15,081

Impairment on tangible assets -5,220

OPERATING RESULT -2,011 -19,942

Net financial expenses -32 -408

Result before taxes -2,043 -20,350

Income taxes -5 259

RESULT FOR THE FINANCIAL PERIOD -2,048 -20,091

NOTE 7 REVENUE

Delete Group’s revenue from continuing operations consist of the following

activities: Industrial Cleaning and Recycling Services. Distribution of revenue

between different reportable segments and between geographical districts is

described in Note 4 Segments.

Disaggregation of revenue

The distribution of revenue from contracts with customers is presented by tim-

ing of revenue recognition.

Contract balances on contracts with customers

Information on trade receivables, contract asset and liabilites is described in the following

table

EUR thousand 2021 2020

Trade receivables 4,714 13,300

Contract assets 0 1,784

Contract liabilities -8 -11

TOTAL 4,707 15,074

Products and services

transferred over time

Products and services

transferred at a point in time

Projects (POC) Materials Services TOTAL

EUR thousand 1-12 2021 1-12 2020 1-12 2021 1-12 2020 1-12 2021 1-12 2020 1-12 2021 1-12 2020

Industrial Cleaning 11,454 13,198 - 98,715 85,357 110,168 98,555

Recycling Services - 24,993 23,410 - 24,993 23,410

Eliminations - - - -3,833 -5,206

GROUP TOTAL 11,454 13,198 24,993 23,410 98,715 85,357 131,328 116,759

The contract asset relate to the Group’s rights to consideration for work com-

pleted but not billed at the reporting date. The contract assets are transferred

to receivables when the rights become unconditional. The contract liabilities

mainly relate to advances received from customers.

More information on trade receivables is included in Note 24.

Transaction price allocated to the remaining performance obligations

The Group applies the practical expedient of IFRS 15 and does not disclose in-

formation about remaining performance obligations that have original expected

durations of one year or less.

NOTE 8 OTHER OPERATING INCOME

NOTE 9 MATERIALS AND SERVICES

NOTE 10 EMPLOYEE BENEFITS

The Group’s personnel expenses consist of wages, salaries and remuneration

and pension costs as well as other social costs. The Group’s pension plans are

classied as dened contribution plans, where contributions are recorded as

an expense in the reporting period. Other personnel expenses consist of statu

tory and voluntary insurance and social security contributions.

Salaries and wages

EUR thousand

2021

2020

Salaries and wages

-40,197

-37,301

Pension costs – defined contribution plans

-6,074

-4,823

Other social security costs

-5,725

-5,698

TOTAL

-51,996

-47,822

Delete Group had an average number of employees during the reporting period

of 667 (744 in 2020). The number of Group personnel at the end of the report

ing period were 643 employees (714 in 2020).

More detailed information on key management’s employee benets is pres

ened in Note 30 Related party transactions.

EUR thousand 2021 2020

Rental income 108 54

Sale of property, plant and equipment 184 87

Other income 245 64

TOTAL 536 206

Other operating income mainly consist of the sale of property, plant and equipment as

well as other non-recurring income.

EUR thousand 2021 2020

Materials and services

Purchases during reporting period -14,698 -13,725

Change in inventories -168 232

Purchased services -42,210 -33,457

TOTAL -57,076 -46,950

NOTE 11 DEPRECIATION, AMORTISATION AND IMPAIRMENT LOSSES

Below the depreciation, amortisation and impairment losses are presented by asset

category.

EUR thousand 2021 2020

Intangible assets

Intangible rights -232 -1,153

Other intangible assets -457 -4

TOTAL -689 -1,157

Property, plant and equipment

Buildings -536 -449

Buildings, right-of-use -3,006 -3,274

Machinery and equipment -5,729 -5,012

Machinery and equipment, right-of-use -2,914 -2,949

Other tangible assets -137 -227

TOTAL -12,322 -11,911

TOTAL DEPRECIATION, AMORTISATION

AND IMPAIRMENT LOSSES -13,011 -13,068

During 2021, a total of EUR 285 thousand of impairment losses was recorded

(EUR 0 in 2020). Impairments are regonised in intagible rights and machinery and

equipment.

NOTE 12 OTHER OPERATING EXPENSES

EUR thousand 2021 2020

Travel expenses -2,366 -1,784

Premises and land rents, maintenance

charges -1,364 -1,413

Sale and marketing expenses -604 -471

Vehicle expenses -1,832 -1,691

Expected credit losses -30 -91

Other expenses -6,715 -7,744

TOTAL -12,911 -13,194

The Group’s rental expenses consist of premises, plots of land and equipment

rental expenses. More detailed information on rentals in the consolidated

income statement is disclosed in Note 25. Other expenses include vehicle

expenses, ICT expenses and consulting and professional fees, among others.

Auditor’s fees 2021 2020

Audit 102 131

Auditors’ statements 5 5

Tax services 28 24

Other services 3 4

TOTAL 138 165

NOTE 13 FINANCE INCOME AND EXPENSES

Financial income

Interest income and other nancial income include:

EUR thousand 2021 2020

Interest and financial income from others 24,807 33

Exchange rate gains 0 0

Change in fair value of derivatives 41 0

Other finance income -772 0

TOTAL 24,075 33

Financial expenses

Interest and other nancial expenses include:

EUR thousand 2021 2020

Interest expenses on borrowings from financial

institutions -6,529 -7,312

Transaction costs of repaid loan 0 0

Exchange rate losses -425 707

Change in fair value of derivatives 0 0

TOTAL -6,954 -6,605

NOTE 14 INCOME TAXES

Income taxes recognised in profit or loss

EUR thousand 2021 2020

Current tax for the reporting year -101 -149

Current tax adjustments for prior years 0 0

Change in deferred taxes 84 632

TOTAL -18 483

Reconciliation between income tax expense

in profit or loss and tax expense calculated

by the Finnish tax rate

EUR thousand 2021 2020

Profit before tax 13,990 -10,640

Tax calculated using Finnish tax rate 20%

(20% in year 2020)

-2,798 2,128

Effect of tax rate in foreign subsidiaries 9 14

Non-deductible expenses -1,729 -1,707

Non-taxable income 4,593 21

Current tax adjustments for prior years -94 -4

Other differences 0 31

INCOME TAXES IN THE STATEMENT

OF PROFIT OR LOSS

-18 482

Effective tax rate % 0.1% 4.5%

NOTE 15 INTANGIBLE ASSETS AND GOODWILL

EUR Thousand Goodwill

Intangible

rights

Other long-term

expenditure Work in progress

Other intangible

assets Total

Cost 1 January 2021 74,632 2,468 20 18 7,737 84,875

Exchange rate differences -491 -40 -531

Additions 133 133

Additions through business combinations 0

Disposals -210 -210

Assets held for sale 0

Transfers 12 -12 0

COST 31 DECEMBER 2021 74,140 2,601 32 6 7,488 84,267

Accumulated amortisation and impairment losses 1 January 2021 -2,201 -12 -6 -4,423 -6,641

Exchange rate differences -29 -29

Amortisation -127 0 -457 -584

Additions through business combinations 0

Impairment -105 -105

ACCUMULATED AMORTISATION AND

IMPAIRMENT LOSSES 31 DECEMBER 2021

0 -2,433 -12 -6 -4,909 -7,359

CARRYING AMOUNT 31 DECEMBER 2021 74,140 169 20 -0 2,579 76,908

Cost 1 January 2020 69,469 2,365 20 58 7,737 79,649

Exchange rate differences 163 163

Additions 104 104

Additions through business combinations -41 -41

Assets held for sale 5,000 5,000

Transfers 0

COST 31 DECEMBER 2020 74,632 2,468 20 18 7,737 84,875

Accumulated amortisation and impairment losses 1 January 2020 0 -2,045 -8 -6 -3,427 -5,485

Exchange rate differences 1 1

Amortisation -156 -4 -997 -1,157

Impairment 0

ACCUMULATED AMORTISATION AND

IMPAIRMENT LOSSES 31 DECEMBER 2020

0 -2,201 -12 -6 -4,423 -6,641

CARRYING AMOUNT 31 DECEMBER 2020 74,632 268 8 12 3,314 78,234

Goodwill and impairment testing

The Group’s goodwill is tested for impairment annually. The recoverable

amount is measured based on value in use. In addition, the Group monitors the

internal and external indications and changes in circumstances, which may in-

dicate an impairment of goodwill. Impairment test is performed at a cash-gen-

erating unit level that can be determined independent cash ows.

Goodwill is allocated for impairment testing purposes to cash-generating units,

which are Cleaning Services Finland, Recycling Services Finland and Cleaning

Services Sweden. The Group’s management monitors goodwill at the level of

these units. In addition, the Group’s management estimates that the efcien-

cies through management system and cost structure savings enabled by the

occurred business divestments are allocated to the above mentioned Cleaning

Services and Recycling Services. Demolition Services Finland and Demolition

Services Sweden have been classied as discontinued operations.

EUR million 31.12.2021 31.12.2020

Goodwill allocated to Cash Generating Units

Industrial Cleaning Finland 49.3 49.3

Recycling Services Finland 12.5 12.5

Industrial Cleaning Sweden 12.8 12.8

TOTAL 74.6 74.6

Goodwill is determined in local currencies and changes in exchange rates will

affect the goodwill in euros. Forecast period used in impairment test is three

years, after which a terminal growth rate has been used in calculation terminal

value.

2021

Industrial Cleaning

Finland

Recycling Services

Finland

Industrial Cleaning

Sweden

Terminal growth rate (%) 2.4% 2.5% 2.3%

WACC (post-tax) 6.9% 6.9% 6.9%

WACC (pre-tax) 8.1% 8.0% 8.1%

2020

Industrial Cleaning

Finland

Recycling Services

Finland

Industrial Cleaning

Sweden

Terminal growth rate (%) 2.4% 2.5% 2.3%

WACC (post-tax) 8.2% 8.2% 7.9%

WACC (pre-tax) 9.8% 9.7% 9.2%

The recoverable amount to exceed the carrying amount

EUR million

CASH GENERATING UNITS 31.12.2021 31.12.2020

Industrial Cleaning Finland 65.1 14.8

Recycling Services Finland 43.7 24.4

Industrial Cleaning Sweden 12.9 4.4

Key assumptions used in the impairment testing

The financial modelling used for the impairment testing is based on Board

approved management budget for the coming year and strategic financial

planning for the following years. The budget and strategic planning both are

based on market outlook information, historical performance and planned

business development initiatives. The terminal growth rates are assessed by a

reputable global consulting group for which a reduction for prudency is made

by the management.

For the year 2021 impairment testing business area Industrial Clean-

ing Services Sweden is closest to impairment. In Industrial Cleaning

Services Sweden, a decrease of -0.5 percentage points in operating

prot margin would lead to the recognition of an impairment loss as

well as 1.0 percentage points increase in the discount rate (WACC).

For Industrial Cleaning Sweden, the comparable 2021 operating

prot was 4.4%. The used level for testing on years 2021-2024 is

between 1.8%-5.8% and the terminal period operating prot 5.5%.

Relative working capital efciency is expected to remain unchanged

for the testing period and the capital investments are expected to

grow from 2021 expenditure and terminal period investments are set

to exceed depreciations slightly.

NOTE 16 PROPERTY, PLANT, EQUIPMENT AND RIGHT-OF-USE

EUR thousand Land areas Buildings

Buildings,

right-of-use

Machinery and

equipment

Machinery and

equipment,

right-of-use

Other

property, plant

and equipment

Construction

in progress Total

Cost 1 January 2021 79 9,596 12,473 83,044 10,393 1,865 27 117,478

Exchange rate differences -3 10 -476 49 -420

Additions through business

combinations -1,525 -1,525

Additions 171 2,223 1,714 3,101 97 16 7,323

Disposals -173 -236 -621 -1,030

Assets held for sale 0

Transfers 0

COST

31 DECEMBER 2021 79 9,765 14,534 82,520 12,922 1,962 43 121,826

Accumulated depreciation and

impairment losses 1 January

2021 7 -3,757 -6,738 -58,442 -4,829 -1,247 -0 -75,006

Exchange rate differences 2 -8 169 -4 159

Additions through business

combinations 0

Disposals 0

Depreciation for the reporting

period -536 -3,006 -5,553 -2,914 -137 -12,146

Impairment -176 -176

Transfers 0

ACCUMULATED

DEPRECIATION AND

IMPAIRMENT LOSSES

31 DECEMBER 2021

7 -4,291 -9,752 -64,002 -7,746 -1,383 -0 -87,169

CARRYING AMOUNT

31 DECEMBER 2021

86 5,473 4,782 18,518 5,176 579 43 34,657

Investments consist of following items:

EUR thousand 2021 2020

Non-listed shares 0 0

Other investments 7 7

TOTAL 7 7

NOTE 17 INVESTMENTS

EUR thousand

Land

areas Buildings

Buildings,

right-of-use

Machinery and

equipment

Machinery and

equipment,

right-of-use

Other

property, plant

and equipment

Construction

in progress TOTAL

Cost 1 January 2020 113 7,415 9,836 81,545 5,761 1,613 1,557 107,840

Exchange rate differences 1 6 56 330 134 14 -0 541

Additions through business

combinations 0

Additions 795 2,714 1,391 5,656 239 26 10,820

Disposals -35 -132 -221 -1,159 -177 -1,724

Assets held for sale 0

Transfers 1,380 -1,380 0

COST 31 DECEMBER 2020 79 9,596 12,473 83,044 10,393 1,865 26 117,477

Accumulated depreciation and

impairment losses 1 January 2018

-14 -3,286 -3,415 -53,388 -1,833 -1,020 -66 -63,022

Exchange rate differences -1 -2 -48 -42 -47 -140

Additions through business

combinations 21 46 67

Depreciation for the reporting

period -449 -3,274 -5,012 -2,949 -227 -11,911

Impairment 0

Transfers -20 20 -0

ACCUMULATED DEPRECI-

ATION AND IMPAIRMENT

LOSSES 31 DECEMBER 2020 7 -3,757 -6,738 -58,442 -4,829 -1,247 -0 -75,006

CARRYING AMOUNT

31 DECEMBER 2020 86 5,840 5,735 24,602 5,564 619 26 42,471

NOTE 18 CHANGES IN DEFERRED TAX ASSETS AND LIABILITIES

2021

1.1.2021

Recognised

through profit

or loss

Exchange rate

differences

Business

combinations

Reclassifications

to assets held

for sale 31.12.2021EUR thousand

DEFERRED TAX ASSETS

Lease 36 91 -0 127

Tax losses carried forward 1,963 -394 -6 1,563

TOTAL DEFERRED TAX ASSETS 1,999 -303 -6 0 0 1,690

DEFERRED TAX LIABILITIES

Intangible assets and property, plant and equipment 1,309 -79 9 1,239

Transaction costs on loans and borrowings 92 -25 67

Voluntary provisions in taxation 1,142 -283 16 875

TOTAL DEFERRED TAX LIABILITIES 2,543 -387 24 0 0 2,180

In the financial statements, deferred tax assets and deferred tax liabilities are determined in accordance with each country’s corporate tax rate. Deferred tax assets of EUR 3,755

thousand (4,483) have not been recognised for accumulated and partially unconfirmed tax losses. Accumulated tax losses expires from 2023 until 2030.

2020

1.1.2020

Recognised

through profit

or loss

Exchange rate

differences

Business

combinations

Reclassifications

to assets held

for sale 31.12.2020EUR thousand

Deferred tax assets

Lease 30 7 -0 36

Tax losses carried forward 1,620 343 0 1,963

TOTAL DEFERRED TAX ASSETS 1,650 350 -0 0 0 1,999

DEFERRED TAX LIABILITIES

Intangible assets and property, plant and equipment 1,598 13 -301 1,309

Transaction costs on loans and borrowings 117 -25 92

Voluntary provisions in taxation 1,411 -270 1 1,142

TOTAL DEFERRED TAX LIABILITIES 3,126 -282 1 -301 0 2,543

The Group presents deferred tax assets and liabilities on a net basis if, and only if, the Group has a legally enforceable right to offset current

tax assets against current tax liabilities and when the deferred tax assets and liabilities relate to the income taxes levied by same tax authority.

NOTE 19 INVENTORY

NOTE 20 TRADE RECEIVABLES AND OTHER CURRENT ASSETS

The carrying amount of trade receivables and other current

receivables is a reasonable estimate of their fair value.

The Group has recognised credit losses of EUR 16 thou-

sand (EUR 89 thousand in 2020). Carrying amounts of

trade receivables and other receivables correspond to the

risk of maximum credit losses.

Aging of trade receivables and trade and other receivables by

currency are presented in Note 24 Financial risk management.

Inventories include materials and supplies used in the production of services.

EUR thousand 2021 2020

Materials and consumables 1,185 1,392

Finished goods 0 0

TOTAL 1,185 1,392

In the financial year and the comparison year no write-downs of inventories were

recognised.

EUR thousand 2021 2020

Trade receivables

4,714 13,300

Accrued income and prepayments

1,977 3,207

Other receivables

443 261

Reclassifications to assets held for sale

-4,879

TOTAL 7,134 11,889

Specification for accrued income and prepayments

EUR thousand 2021 2020

Contract assets 1,784

Rent deposit 311 226

Other deposits 651 366

Employee benefits 375 9

Other accruals 641 822

TOTAL 1,977 3,207

NOTE 21 CASH AND CASH EQUIVALENTS

The Group has pledged cash and cash equivalents, which are described

in note 28.

NOTE 22 EQUITY, RESERVES AND CAPITAL MANAGEMENT

Share capital

The company’s shares are divided into two series:

C series and P-series. All shares have equal voting

rights. The shares have no nominal value. When

distributing the company’s assets, the C shares

holders must always receive the amount corre-

sponding to their relative (pro rata) share of the total

number of shares issued by the company. Total

shares outstanding are equal to shares authorised.

The company has no treasury shares.

Translation reserve

Translation reserve consist of exchange rate differ-

ences arising from the translation of foreign subsid-

iaries’ nancial statements.

Profit

The parent company’s prot for the period was

EUR 25,353 thousand (EUR -19,933 thousand in

2020). The Board of Directors proposes that no

dividend be paid and that the prot be transferred

to retained earnings.

Reserve for invested

non-restricted equity

Reserve for invested non-restricted equity includes

other equity type investments and share subscrip-

tion prices to the extent that it is not recognised

to share capital. During the reporting period 2021,

EUR 10,0 million was invested in the Group.

Capital management

The Group’s capital management objective is to

maintain a capital structure that allows preservation

of the Group’s operating requirements under var-

ious conditions. The objective of capital manage-

ment is to ensure the adequacy of funding, availa-

bility of nancing and nancial cost management.

The Group’s management has not explicitly spec-

ied what items are taken into account in capital

management and no numerical objectives has been

set for capital management. The Group’s loans and

borrowings and covenants are described in Note 25

Interest-bearing loans and borrowings.

EUR thousand 2021 2020

Cash at hand and bank balances 5,151 7,752

TOTAL 5,151 7,752

Number of

P shares

Number of

C shares

TOTAL

1.1.2021 10,858,595 3,089,649

13,948,244

Change 1,075,000,905 305,875,251

1,394,824,400

31.12.2021 1,085,859,500 308,964,900

1,394,824,400

1.1.2020 10,858,595 3,089,649

13,948,244

31.12.2020 10,858,595 3,089,649

13,948,244

NOTE 23 CLASSIFICATION OF FINANCIAL ASSETS AND LIABILITIES

The table below presents carrying amounts and fair values of nancial assets

and liabilities by valuation category

2021 – Carrying amount

EUR thousand

Fair value

through

profit or loss

Financial

assets at

amortised cost

Other financial

liabilities at

amortised cost

TOTAL CARRYING

AMOUNT

TOTAL FAIR

VALUE

Fair value

hierarchy

NON-CURRENT FINANCIAL ASSETS

Other investments 0 7 0 7 7 level 2

CURRENT FINANCIAL ASSETS

Trade and other receivables 0 5,157 0 5,157 5,157

Other financial assets 0 0 0 0 0 level 2

Cash and cash equivalents 5,151 0 5,151 5,151

TOTAL FINANCIAL ASSETS 0 10,315 0 10,315 10,315

NON-CURRENT FINANCIAL LIABILITIES

Loans from financial institutions 0 0 60,000 60,000 60,000 level 2

Lease liabilities 0 0 5,111 5,111

Instalment credit 0 0 19 19 19 level 2

Derivative liabilities 0 0 0 0 0 level 2

CURRENT FINANCIAL LIABILITIES

Loans from financial institutions 0 0 6,995 6,995 6,995 level 2

Lease liabilities 0 0 5,036 5,036 5,036 level 2

Trade payables 0 0 7,975 7,975 7,975

Instalment credit 0 0 10 10 10 level 2

TOTAL FINANCIAL LIABILITIES 0 0 85,147 85,147 85,147

Determination of fair values

Level 1 = Fair values are based on identical assets or liabil-

ities quoted (unadjusted) in active markets

Level 2 = Fair values are based on other than level 1 quot-

ed prices and are observable for the asset or liability, either

directly (i.e. prices) or indirectly (i.e. derived from prices)

Level 3 = Fair values are not based on observable market

data

Transfers between levels

There were no signicant transfers between fair value

levels in 2021 and 2020.

2020 – Carrying amount

EUR thousand

Fair value

through

profit or loss

Financial

assets at

amortised cost

Other financial

liabilities at

amortised cost

TOTAL CARRYING

AMOUNT

TOTAL FAIR

VALUE

Fair value

hierarchy

OTHER INVESTMENTS

Other investments 0 8 0 8 8 level 2

CURRENT FINANCIAL ASSETS

Trade and other recaivables 0 13,561 0 13,561 13,561

Other financial assets 0 0 0 0 0 level 2

Cash and cash equivalents 7,749 0 7,749 7,749

TOTAL FINANCIAL ASSETS 0 21,318 0 21,318 21,318

NON-CURRENT FINANCIAL LIABILITIES

Loans from financial institutions 0 0 0 0 0 level 2

Finance lease liabilities 0 0 6,824 6,824 6,824 level 2

Instalment credit 0 0 161 161 161 level 2

Derivative liabilities 41 0 0 41 41 level 2

CURRENT FINANCIAL LIABILITIES

Loans from financial institutions 0 0 114,084 114,084 114,084 level 2

Finance lease liabilities 0 0 4,899 4,899 4,899 level 2

Trade payables 0 0 10,044 10,044 10,044

Instalment credit 0 0 72 72 72 level 2

TOTAL FINANCIAL LIABILITIES 41 0 136,084 136,125 136,125

NOTE 24 FINANCIAL RISK MANAGEMENT

The principles and organisation of

financial risk management

Group and its operational functions are exposed to

nancial risks. Financial risks arise from interest rates,

exchange rates and other uctuations in market prices.

The Company’s management monitors the nancial risks

related to businesses. The Group does not apply IFRS 9

hedge accounting at the balance sheet date.

Liquidity and refinancing risk

Liquidity risk relates to maintaining adequacy and sustain-

ability of funding required for the Group’s working capital,

debt repayment and investment. The purpose of liquidity

risk management is to constantly maintain an adequate

level of liquidity. The Group primary source of funding are

operating cash ows and loan funding. At the end of the

reporting period, the Group’s cash and cash equivalents

amounted to EUR 5.2 million.

Interest rate risk

Maturity of nancial liabilities is presented in the table

below. The Group has limited interest rate risk, as 50% of

the senior secured notes are hedged for a xed interest

rate 0.0% (EURIBOR 3mo) interst rate cap. Group loan

contracts are further described in Note 25 Interest bearing

loans and borrowings. The loan agreement contain con-

ventional covenants, which are described in more detail

in Note 25. The Group has met all covenants during the

reporting period.

Credit risk

The Group’s customer base consists of broad range of

customers thus the credit risk is low. Payment terms for

customers are usual. Credit losses are recorded on trade

receivables, when there is objective evidence that the re-

ceivables will not be paid as a whole at the original terms.

Ageing of trade receivables and credit losses recorded are

presented below.

The Group uses an allowance matrix, a simplied ap-

proach allowed by IFRS 9, to measure expected credit

losses for trade receivables from customers and contract

assets. The loss allowance is measured at an amount

equal to lifetime expected credit losses for trade receiv-

ables and contract assets. The Group uses its previous

credit losses and historical credit loss experience for trade

receivables to estimate the lifetime expected credit losses

on nancial assets.

Exchange rate risk

The exchange rate risk is associated with transactions and

cash ows in foreign currencies and net investments in

Group companies. The majority of the Group’s income and

expenses arise in the Euro area and in Swedish crowns.

The exchange rate risk was not signicant during the

reporting period. Hedge accounting is not applied and

derivative instruments are not used to hedge the exchange

rate risk.

Maturity of the Group’s financial liabilities

The Group’s financial liabilities are due as follows:

2021 2022 2023 2024 2025 2026 and later

Borrowings from financial institutions 60,000

Interest on borrowings from financial institutions 3,569

Derivative liabilities 0

Lease liabilities, incl. interest 5,058 2,726 1,293 541 660

Trade payables 7,975

TOTAL 16,602 2,726 61,293 541 660

2020 2021 2022 2023 2024 2025 and later

Borrowings from financial institutions 114,280

Interest on borrowings from financial institutions 3,966

Derivative liabilities 41

Finance lease liabilities, incl. interest 5,567 3,889 1,943 954 895

Trade payables 10,044

TOTAL 133,898 3,889 1,943 954 895

Ageing of trade receivables and expected credit losses

The following table provides information about the exposure

to credit risk and the amount of expected credit losses for trade

receivables and contract assets at reporting date:

2021 Gross value

Expected credit

loss rate % Loss allowance Net

TRADE RECEIVABLES

Not past due 4,152 0.0% 0 4,152

Past due

Less than 30 days 176 0.0% 0 176

31-60 days 17 0.0% -1 17

61-90 days 11 0.0% -0 11

Past due over 90 days 388 0.6% -29 359

TOTAL 4,744 0.6% -30 4,714

2020 Gross value

Expected credit

loss rate % Loss allowance Net

CONTRACT ASSETS 1,784 0.0% 1,784

TRADE RECEIVABLES

Not past due 12,285 0.0% 0 12,285

Past due

Less than 30 days 596 0.0% 0 596

31-60 days 106 0.0% -2 105

61-90 days 52 0.0% -1 50

Past due over 90 days 351 0.7% -89 263

TOTAL 13,391 0.5% -91 13,300

TOTAL 15,175 0.6% -91 15,084

The Group uses an allowance matrix to measure the ex-

pected credit losses of trade receivables. The calculation

of expected credit losses is described in risk management

section above.

The carrying amount of trade receivables represent the

maximum credit exposure on the reporting date. The

Group does not require collateral in respect of trade and

other receivables. No signigant concentration of credit

risk relate to receivables. The carrying amount of trade

receivables and other receivables is a reasonable estimate

of their fair value. As at 31 December 2021, the company

had EUR 12.5 million sold receivables under non-recourse

factoring agreement.

Trade and other receivables by currency:

EUR thousand 2021 2020

EUR 5,363 14,657

SEK 1,858 8,306

TOTAL 7,221 12,673

Movements in the allowance for impairment

EUR thousand 2021 2020

Loss allowance at 1 January -93 -91

Reclassifications to assets held for sale 0 0

Expected credit losses on trade receivables -30 -91

Expected credit losses on contract assets

Credit losses 16 89

ALLOWANCE FOR IMPAIRMENT 31 DECEMBER -108 -93

Current liabilities by currency:

EUR thousand 2021 2020

EUR 26,306 136,225

SEK 13,137 9,506

TOTAL 39,443 145,731

Below are presented terms and repayment program of the Group’s interest

bearing non-current and current loans from nancial institutions measured at

amortised cost.

In Note 24 Financial risk management are described maturities of loans from

nancial institutions. Furthermore, the note includes a description of the

Group’s exposure to interest rate risk, foreign currency risk and credit risk.

Loans from financial institutions

The Group’s nancing was restructured during the nancial year through a

voluntary procedure. The nominal value of the bond was cut by EUR 25 million

and repaid by EUR 25 million. Following the transaction, the nominal value of

Delete’s bond is EUR 60 million. In addition, Delete Group has a conrmed

super senior revolving credit facility to be used to nance the company’s opera-

tions, acquisitions and capital expenditures.

NOTE 25 INTEREST BEARING LOANS AND BORROWINGS

Covenants

The Group’s revolving credit facility includes covenants dened in the nancing

agreement. The Group has complied with the requirements of these covenants

during the period.

Carrying amount

EUR thousand 2021 2020

NON-CURRENT LIABILITIES

Borrowings from financial institutions 60,000 0

Lease liabilities 5,111 6,824

CURRENT LIABILITIES

Borrowings from financial institutions 6,995 114,084

Lease liabilities 5,036 4,899

Terms and repayment of interest-bearing liabilities

Currency

Average

interest rate Maturity

Borrowings from financial institutions euro 5,47 2021-2024

1 January 2021 Cash ﬂows Non-cash changes 31 December 2021

Paid in kind

interests

capitalised

Foreign

exchange

movements

Effective

interest rate

New

agreements

Muut

muutokset

Interest-bearing financial

liabilities 114,084 -24,406 1,187 -10 -300 -23,562 66,995

Lease liabilities 11,723 -5,831 83 4,173 10,147

Instalment credit 233 -193 -11 29

TOTAL 126,040 -30,430 1,187 62 -300 4,173 -23,562 77,171

1 January 2020 Cash ﬂows Non-cash changes 31 December 2020

Paid in kind

interests

capitalised

Foreign

exchange

movements

Effective

interest rate

New

agreements

Muut

muutokset

Interest-bearing financial

liabilities 116,303 -2,263 -7 51 114,084

Lease liabilities 10,473 -5,925 59 7,115 11,723

Instalment credit 822 -533 -57 233

TOTAL 127,598 -8,721 - -4 51 7,115 126,040

Amounts recognised in statement of income

Short term leases 2,420

Leases of low value assets 106

Interest expense on leases 466

TOTAL 2,991

Cash ﬂow from leases 8,822

Amounts recognised in statement of income

Interest expense on leases 466

Short term leases 2,420

Leases of low value assets 106

Derivative instruments at fair value through prot or loss

Interest rate swaps

Nominal value

EUR thousand 2021 2020

Interest rate swaps 30,061 73,337

TOTAL 30,061 73,337

Fair value

EUR thousand 2021 2020

Interest rate swaps 99 41

TOTAL 99 41

The Group’s interest rate cap agreement is xed at EURIBOR 3 months at

0.0%. In accordance with the interest rate cap agreement, the company will be

reimbursed the portion of interest that exceeds the interest rate cap; in 2021

the interest rate cap was not exceeded. Hedge accounting in accordance with

IFRS 9 is not applied to the interest rate cap agreement, but the derivatives

have been entered into for hedging purposes.

Fair values of the derivative nancial instruments are determined using publicly

quoted market prices in an active market. The determination of fair value is

described in Note 23 Classication of nancial assets and liabilities.

Maturity of derivative instruments is presented in Note 24 Financial risk man-

agement.

NOTE 26 DERIVATIVE INSTRUMENTS

NOTE 27 TRADE PAYABLES, OTHER PAYABLES AND PREPAYMENTS

Below is presented balance sheet items accounts payable, other

liabilities, hire purchase liabilities and received advance payments.

Carrying amount of trade payables and other payables approximate their fair

value.

In Note 24 Financial risk management a maturity analysis of nancial liabilities

and trade payables by currency is presented. In Note 24 the Group exposure to

exchange rate risk and liquidity risk is described in more detail.

Other liabilities

Other liabilities are mainly related to VAT, withholding taxes and social security

liability.

Instalment credit

The Group companies are partly funding capital expenditure by instalment

credit.

In the table below, the major items of accruals are presented.

EUR thousand 2021 2020

Personnel expenses 8,578 9,073

Finance items 626 1,145

Waste debt accrual 38 894

Other 2,425 1,958

TOTAL 11,667 13,070

EUR thousand 2021 2020

Trade payables 7,975 10,044

Other payables 7,715 3,471

Instalment credit 29 233

Contract liabilities (see note 6) 8 11

Accrued expenses 11,667 13,070

TOTAL 27,394 26,830

Total current 27,374 26,668

Total non-current 19 161

CONTINGENT ASSETS, CONTINGENT LIABILITIES AND COMMITMENTS

Guarantees

EUR thousand 2021 2020

Corporate mortgage, nominal value 1,847,167 1,847,197

Commitments

EUR thousand 2021 2020

Bank guarantee facility 1,763 827

of which available 237 192

Other bank guarantees 132 884

Other 638 773

Pledges

EUR thousand 2021 2020

Pledged cash and cash equivalents 248 592

Carrying amount of pledged shares 241,759 273,076

Borrowings from financial institutions includes covenants, which are described in Note 25

Interest bearing loans and borrowings.

NOTE 29 RELATED PARTY TRANSACTIONS

The Related Parties of the group in addition to parent company and subsidiar-

ies are members of the Board of Directors, Chief Executive Ofcer and mem-

bers of the group management team (Chief Financial Ofcer Ville Mannola, and

country managers (Peter Revay, Sweden and Sirpa Ojala, Finland).

The Group structure is described in Note 5.

Management and related party compensation

and benefits 2021

EUR thousand

Short-term

employee

benefits

Additional

pension

benefits

Post

employment

benefits

Chief Executive Officer

Sirpa Ojala from 1.11.2021 60

Tommi Kajasoja until 1.11.2021 611 0 0

Management 1,134 0 0

Board of Directors

Martin Forss,

Chair of the Board 52 0 0

Åsa Söderström Winberg,

Member of the Board 30 0 0

Ronnie Neva-aho,

Member of the Board 26 0 0

Christian Schmidt-Jacobsen,

Member of the Board 0 0 0

Management and related party compensation and benefits 2020

EUR thousand

Short-term

employee

benefits

Additional

pension

benefits

Post

employment

benefits

Chief Executive Officer

Tommi Kajasoja 277 0 0

Management 805 0 0

Board of Directors

Martin Forss,

Chair of the Board from 9th of January 2020 43 0 0

Åsa Söderström Winberg,

Chair of the Board until 9th of January 2020 24 0 0

Holger C. Hansen,

Member of the Board until 8th of April 2020 0 0 0

Ronnie Neva-aho, Member of the Board 22 0 0

Vilhelm Sundström,

Member of the Board until 8th of April 2020 0 0 0

Christian Schmidt-Jacobssen 0 0 0

Other related party transactions

EUR thousand 2021 2020

Real Estate rental payment to RNAH Invest Oy

an entity under Ronnie Neva-aho’s control 142 122

Consultancy fee to Amnis Quartum Oy an entity

under Martin Forss’s control 50 50

TOTAL 193 172

Fair market values are always applied to Related Party Transactions.

Shares of the Company

The company’s share capital consists of 1,085,859,500 P-shares and 308,964,900 C-shares. Ax DEL

Oy owns 86% of the shares. Rest 14% of the shares are owned by key employees of the company

(including the Board of Directors and Group Management) and certain other minority shareholders.

NOTE 30 EVENTS AFTER BALANCE SHEET DATE

Management team member, General Counsel Janika Vilkman,

re-joined Delete on 1 February 2022.

In January 2022, Delete extended its SSRCF facility with Collector

Bank to February 2023, with the existing terms.

PARENT COMPANY INCOME STATEMENT (FAS)

EUR 1.1.–31.12.2021 1.1.–31.12.2020

REVENUE 0 0

Other operating expenses -236,700 -230,982

OPERATING PROFIT -236,700 -230,982

Impairment on non-current investments 0 -20,300,610

Other financial income and expenses 25,590,168 598,818

Financial income and expenses 25,590,168 -19,701,792

PROFIT BEFORE APPROPRIATIONS AND TAXES 25,353,468 -19,932,775

Income taxes 0 0

PROFIT/LOSS FOR THE PERIOD 25,353,468 -19,932,775

PARENT COMPANY BALANCE SHEET (FAS)

EUR 31.12.2021 31.12.2020

ASSETS

NON-CURRENT ASSETS

Shares and securities in subsidiaries 53,830,722 49,440,606

TOTAL NON-CURRENT ASSETS 53,830,722 49,440,606

CURRENT ASSETS

Receivables

Long term receivables 91,048,063 107,438,178

Short term receivables 3,877,973 1,941,098

Cash and cash equivalents 9,518 721,980

TOTAL CURRENT ASSETS 94,935,554 110,101,257

TOTAL ASSETS 148,766,276 159,541,863

EQUITY AND LIABILITIES

EQUITY

Share capital 80,000 80,000

Reserve for invested non-restricted equity 79,661,957 69,661,220

Retained earnings -21,654,110 -1,721,336

Profit and loss for the year 25,353,468 -19,932,775

TOTAL EQUITY 83,441,315 48,087,110

LIABILITIES

Non-current liabilities 60,000,000 0,00

Current liabilities 5,324,960 111,454,753

TOTAL LIABILITIES 65,324,960 111,454,753

TOTAL EQUITY AND LIABILITIES 148,766,276 159,541,863

NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS

Group information

Delete Group Oyj is part of Ax DEL Oy Group. Parent company in Ax DEL

Group is Ax DEL Oy which is domiciled in Helsinki.

The consolidated nancial statements of Ax DEL Oy are available at Delete

Group’s ofce at Postintaival 7, 00230 Helsinki, Finland.

Measurement and timing principles and methods applied in

the preparation of the financial statements

The acquisition cost of non-current assets includes the variable costs arising from the

acquisition. Receivables and debts are measured at their nominal value or their lower

probable value.

The nancial statements have been prepared with the Government Decree on

the Information presented in the Financial Statements of a Micro-Undertaking

1753/2015.

Comparability of the previous financial year

The previous nancial year is comparable.

The Board of Directors’ proposal regarding the use of profit

The company’s distributable funds amount to EUR 83,361,315.18, of which the

result for the nancial year is EUR 25,353,468.28.

The Board of Directors proposes to the Annual General Meeting that no divi-

dend be paid.

The company’s share capital is distributed as follows:

2021 2020

C-shares 308,964,900 3,089,649

P-shares 1,085,859,500 10,858,595

TOTAL 1,394,824,400 13,948,244

Notes to the income statement

2 FINANCIAL INCOME AND EXPENSES

EUR 2021 2020

Interest income from Group companies 5,720,092,65 6,305,429,38

Other finance income 24,780,000,00 0,00

Interest expenses to Group companies -155,790,00 0,00

Interest and financial expenses to others -4,754,134,43 -5,706,611,59

TOTAL 25,590,168,22 598,817,79

Notes on balance sheet assets

Holdings in other companies

Group companies 2021 2020

Ax DEL2 Oy 49440606,35 49440606,35

Delete Sweden AB 4390115,41 0,00

TOTAL 53830722,76 49440607,35

RECEIVABLES

3 NON-CURRENT RECEIVABLES

EUR 2021 2020

Receivables from Group companies

Loan receivables 91,048,063.63 107,438,178,44

TOTAL 91,048,063.63 107,438,178,44

RECEIVABLES FROM GROUP COMPANIES 91,048,063.63 107,438,178,44

4 CURRENT RECEIVABLES 2021 2020

Receivables from Group companies

Other receivables 3,751,712,67 2,624,252,71

TOTAL 3,751,712,67 2,624,252,71

RECEIVABLES FROM OTHERS

Accrued income and prepayments 126,259,84 38,825,39

TOTAL 126,259,84 38,825,39

CURRENT RECEIVABLES TOTAL 3,877,972,51 2,663,078,10

5 ITEMISATION OF SHAREHOLDERS’ EQUITY

EUR 2021 2020

Restricted shareholders’ equity

Share capital 1.1. 80,000.00 80,000.00

Share capital 31.12. 80,000.00 80,000.00

RESTRICTED SHAREHOLDERS’ EQUITY 80,000.00 80,000.00

Unrestricted shareholders’ equity 2021 2020

Invested unrestricted equity reserve 1.1. 69,661,220.00 69,661,220.00

Invested unrestricted equity reserve 31.12. 10,000,737.32 0.00

Invested unrestricted equity reserve 31.12. 79,661,957.32 69,661,220.00

Retained earnings 1.1. -21,654,110.42 -1,721,335.81

Retained earnings 31.12. -21,654,110.42 -1,721,335.81

Profit for the financial year 25,353,468.28 -19,932,774.61

UNRESTRICTED SHAREHOLDERS’ EQUITY TOTAL 83,361,315.18 48,007,109.58

SHAREHOLDERS’ EQUITY TOTAL 83,441,315.18 48,087,109.58

CALCULATION OF DISTRIBUTABLE SHAREHOLDERS’

EQUITY 2021 2020

Invested unrestricted equity reserve 79,661,957.32 69,661,220.00

Retained earnings -21,654,110.42 -1,721,335.81

Profit for the financial year 25,353,468.28 -19,932,774.61

TOTAL 83,361,315.18 48,007,109.58

6 NON-CURRENT LIABILITIES

EUR 2021 2020

Liabilities to Group companies 0.00 0.00

From others 60,000,000.00 0.00

TOTAL 60,000,000.00 0.00

NON-CURRENT LIABILITIES TOTALS 60,000,000.00 0.00

7 CURRENT LIABILITIES 2021 2020

Liabilities to Group companies

Other payables 4,669,868.94 30,102.30

TOTAL 4,669,868.94 30,102.30

Trade payables 20,446.06 449,560.36

Other debt 8,824.00 109,780,000.00

Accrued liabilities and deferred income 625,821.47 1,194,090.65

TOTAL 655,091.53 111,423,651.01

CURRENT LIABILITIES TOTAL 5,324,960.47 111,454,753.31

DEBTS, COLLATERAL AND CONTINGENT LIABILITIES

EUR 2021 2020

Collateral pledged

Book value of pledged shares 49,440,606.35 49,440,606.35

SIGNATURES OF THE FINANCIAL STATEMENTS

THE AUDITOR’S NOTE

In Helsinki, 24 March 2022.

Our auditor’s report has been issued today.

In Helsinki, 25 March 2022

Martin Forss

Chairman of the Board

Åsa Söderström Winberg

Member of the Board

Christian Schmidt-Jacobsen

Member of the Board

Ronnie Neva-aho

Member of the Board

Sirpa Ojala

CEO

KPMG Oy Ab

Authorised Public Accountants

Ari Eskelinen

Authorised Public Accountant, KHT

AUDITOR’S REPORT

To the Annual General Meeting of

Delete Group Oyj

Opinion

We have audited the nancial statements of Delete

Group Oyj (business identity code 2565169-4) for

the year ended 31 December, 2021. The nancial

statements comprise the consolidated balance

sheet, statement of comprehensive income, state-

ment of changes in equity, statement of cash ows

and notes, including a summary of signicant ac-

counting policies, as well as the parent company’s

balance sheet, income statement and notes.

In our opinion

• the consolidated nancial statements give a

true and fair view of the group’s nancial posi-

tion, nancial performance and cash ows in

accordance with International Financial Report-

ing Standards (IFRS) as adopted by the EU

• the nancial statements give a true and fair

view of the parent company’s nancial perfor-

mance and nancial position in accordance

with the laws and regulations governing the

preparation of nancial 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 ethi-

cal requirements that are applicable in Finland and

are relevant to our audit, and we have fullled 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 re-

ferred to in Article 5(1) of regulation (EU) 537/2014.

The non-audit services that we have provided

have been disclosed in note 12 to the consolidat-

ed nancial statements.

We believe that the audit evidence we have ob-

tained is sufcient and appropriate to provide a

basis for our opinion.

Materiality

The scope of our audit was inuenced by our

application of materiality. The materiality is de-

termined based on our professional judgement

and is used to determine the nature, timing and

extent of our audit procedures and to evaluate the

effect of identied misstatements on the nancial

statements as a whole. The level of materiality

we set is based on our assessment of the mag-

nitude of misstatements that, individually or in

aggregate, could reasonably be expected to have

inuence on the economic decisions of the users

of the nancial statements. We have also tak-

en into account misstatements and/or possible

misstatements that in our opinion are material for

qualitative reasons for the users of the nancial

statements.

Key Audit Matters

Key audit matters are those matters that, in our

professional judgment, were of most signicance

in our audit of the nancial statements of the

current period. These matters were addressed

in the context of our audit of the nancial state-

ments as a whole, and in forming our opinion

thereon, and we do not provide a separate

opinion on these matters. The signicant risks

of material misstatement referred to in the EU

Regulation No 537/2014 point (c) of Article 10(2)

are included in the description of key audit mat-

ters below.

We have also addressed the risk of management

override of internal controls. This includes consid-

eration of whether there was evidence of man-

agement bias that represented a risk of material

misstatement due to fraud.

REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS

The key audit matter How the matter was addressed in the audit

Revenue recognition – Accounting principles and notes 4, 6 and 7

• The consolidated revenue amounted to 131.3 M€

and consists of revenues from two business seg-

ments: Cleaning services and Recycling services.

• Revenue is recognized when the ownership of the

product or service is transferred to the customer

or the service is completed.

• Revenue recognition is considered a key audit

matter due to the considerable number of sales

transactions and risk that revenue is recognized in

an incorrect period.

• Our audit procedures have included an assess-

ment of the internal control environment associ-

ated with the sales processes and testing of the

effectiveness of the key controls. We have con-

ducted also analytical and substantial procedures

to sales items.

• We have analysed the revenue recognition prin-

ciples against IFRS, accounting principles and

contractual terms of projects. We analysed also

the ongoing projects’ income and cost forecasts.

• The audit procedures included interviews with

key personnel in the process to form a complete

understanding and to assess the appropriateness

of the Group’s revenue recognition policies and

practices.

• Additionally, we have assessed the appropriate-

ness of the notes in the nancial statements for

revenue items.

Valuation of goodwill and investment in subsidiaries in the parent company’s balance

sheet – consolidated balance sheet and parent company’s balance sheet and note 15

• At the year-end 2021 the goodwill amounted to

74.1 M€ and accounted for 58.5 % of total assets.

The goodwill decreased from previous year with

0.5 M€ as demolition business was divested from

the Group in early 2021.

• Goodwill is tested for impairment at least annu-

ally. An impairment arises when the recoverable

amount is less than the carrying value of the

asset.

• Delete Group Oyj determines recoverable

amounts for impairments tests based on value in

use. Preparation of cash ow projections underly-

ing impairment tests requires management mak-

ing judgements over protability, long term growth

rate and discount rate.

• The valuation of goodwill is a key audit matter,

as the presumptions and forecasts that relate to

impairment testing include managements’ judge-

ments and the total value of goodwill is substantial.

• The value of the subsidiary shares on parent

company’s balance sheet at year end 2021 is 49.4

M€. Receivables from group companies amount

to 99.2 M€ in total.

• The valuation of the subsidiary shares and receiv-

ables from group companies in parent company’s

balance sheet is dependent on development of

the future protability of the group.

• We have conducted the following audit proce-

dures relating to impairment testing:

• We have reviewed the presumptions used in

the calculations as protability, discount rate

and long-term growth rate.

• We have reviewed the realization of the

forecasts for previous years, prepared by the

management, against actual cash ows.

• Valuation experts from KPMG have partici-

pated in the audit, and they have tested the

technical accounting and compared the pre-

sumptions against market and industry data.

• Additionally, we have assessed the appropriate-

ness of the notes in the nancial statements for

these items.

• We have assessed the methods applied in the

valuation of the subsidiary shares and receivables

from group companies.

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

nancial statements that give a true and fair view

in accordance with International Financial Report-

ing Standards (IFRS) as adopted by the EU, and of

nancial statements that give a true and fair view in

accordance with the laws and regulations govern-

ing the preparation of nancial statements in Fin-

land 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 nancial statements that are free from material

misstatement, whether due to fraud or error.

In preparing the nancial statements, the Board of

Directors and the Managing Director are respon-

sible 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 nancial statements are prepared

using the going concern basis of accounting unless

there is an intention to liquidate the parent compa-

ny 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 nancial statements as a whole

are free from material misstatement, whether due to

fraud or error, and to issue an auditor’s report that in-

cludes 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

inuence the economic decisions of users taken on

the basis of the nancial statements.

As part of an audit in accordance with good au-

diting practice, we exercise professional judgment

and maintain professional skepticism throughout

the audit. We also:

• Identify and assess the risks of material mis-

statement of the nancial statements, wheth-

er due to fraud or error, design and perform

audit procedures responsive to those risks,

and obtain audit evidence that is sufcient

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 omis-

sions, 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 circum-

stances, 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 Di-

rector’s use of the going concern basis of

accounting and based on the audit evidence

obtained, whether a material uncertainty ex-

ists related to events or conditions that may

cast signicant doubt on the parent compa-

ny’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 nancial 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 nancial statements,

including the disclosures, and whether the

nancial statements represent the underlying

transactions and events so that the nancial

statements give a true and fair view.

• Obtain sufcient appropriate audit evidence

regarding the nancial information of the

entities or business activities within the group

to express an opinion on the consolidated

nancial statements. We are responsible for

the direction, supervision and performance of

the group audit. We remain solely responsible

for our audit opinion.

Helsinki, 25 March 2022

KPMG Oy Ab

Ari Eskelinen

Authorised Public Accountant, KHT

We communicate with those charged with govern-

ance regarding, among other matters, the planned

scope and timing of the audit and signicant audit

ndings, including any signicant deciencies in

internal control that we identify during our audit.

We also provide those charged with governance with

a statement that we have complied with relevant

ethical requirements regarding independence and

communicate with them all relationships and other

matters that may reasonably be thought to bear on

our independence, and where applicable, related

safeguards.

From the matters communicated with those charged

with governance, we determine those matters that

were of most signicance in the audit of the nancial

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 pre-

cludes 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 pub-

lic interest benets of such communication.

Other Reporting Requirements

Information on our audit engagement

Delete Group Oyj has become a public interest entity

on 19 April 2018. KPMG Oy Ab has been company’s

auditor during the time it has been public interest

entity.

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 nancial state-

ments and our auditor’s report thereon.

Our opinion on the nancial statements does not

cover the other information.

In connection with our audit of the nancial state-

ments, our responsibility is to read the other infor-

mation identied above and, in doing so, consider

whether the other information is materially incon-

sistent with the nancial statements or our knowl-

edge obtained in the audit, or otherwise appears to

be materially misstated. With respect to the report

of the Board of Directors, our responsibility also in-

cludes considering whether the report of the Board

of Directors has been prepared in accordance with

the applicable laws and regulations.

In our opinion, the information in the report of

the Board of Directors is consistent with the

information in the nancial statements and the

report of the Board of Directors has been pre-

pared in accordance with the applicable laws and

regulations.

If, based on the work we have performed, we con-

clude 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.

INDEPENDENT AUDITOR’S REASONABLE

ASSURANCE REPORT ON DELETE GROUP

OYJ’S ESEF FINANCIAL STATEMENTS

To the Board of Directors of Delete Group Oyj

The Responsibility of the Board of

Directors and Managing Director

The Board of Directors and Managing Director are

responsible for preparing the report of the Board of

Directors and nancial statements (ESEF nancial

statements) that comply with the requirements of

ESEF RTS. This responsibility includes:

• preparation of ESEF nancial statements in

XHTML format in accordance with Article 3 of

the ESEF RTS

• marking up the consolidated nancial state-

ments included in the ESEF nancial state-

ments with iXBRL tags in accordance with

Article 4 of the ESEF RTS; and

• ensuring consistency between ESEF nancial

statements and audited nancial statements.

The Board of Directors and the Managing Director

are also responsible for such internal control as

they deem necessary to prepare the ESEF nancial

statements in accordance with the requirements of

the ESEF RTS.

Auditor’s Independence

and Quality Control

We are independent of the company in accordance

with the ethical requirements applicable in Finland,

which apply to the engagement we have performed,

and we have fullled our other ethical obligations in

accordance with these requirements.

The auditor applies International Standard on

Quality Control 1 and accordingly maintains a

comprehensive system of quality control including

documented policies and procedures regarding

compliance with ethical requirements, profession-

al standards and applicable legal and regulatory

requirements.

Auditor’s Responsibility

In accordance with the Engagement Letter our re-

sponsibility is to express an opinion on whether the

marking up of the consolidated nancial statements

included in the ESEF nancial statements comply in

all material respects with the Article 4 of the ESEF

RTS. We conducted our reasonable assurance en-

gagement in accordance with International Standard

on Assurance Engagements 3000.

The engagement involves procedures to obtain evi-

dence whether;

• the consolidated nancial statements includ-

ed in the ESEF nancial statements are, in all

material respects, marked up with iXBRL tags

in accordance with Article 4 of the ESEF RTS,

and;

• the ESEF nancial statements and the audited

nancial statements are consistent with each

other.

The nature, timing and the extent of procedures

selected depend on practitioner’s judgement. This

includes the assessment of the risks of material de-

partures from the requirements set out in the ESEF

RTS, whether due to fraud or error.

We believe that the evidence we have obtained is

sufcient and appropriate to provide a basis for our

opinion.

Opinion

In our opinion, the consolidated nancial statements

included in the ESEF nancial statements of Delete

Group Oyj’s identied as 7437005RN1C2L4VRU511-

2021-12-31-en.zip for the year ended 31 Decem-

ber, 2021 are marked up, in all material respects,

in compliance with the ESEF Regulatory Technical

Standard.

Our audit opinion relating to the consolidated nan-

cial statements of Delete Group Oyj’s for the year

ended 31 December, 2021 is set out in our Auditor’s

Report dated 22 March, 2022. In this report, we do

not express an audit opinion, review conclusion or

any other assurance conclusion on the consolidated

nancial statements.

Helsinki 25 March, 2022

KPMG OY AB

Ari Eskelinen

Authorised Public Accountant, KHT

We have undertaken a reasonable assurance engagement on the iXBRL

marking up of the consolidated financial statements for the year ended

31 December, 2021, included in the Delete Group Oyj’s digital files

7437005RN1C2L4VRU511-2021-12-31-en.zip prepared in accordance with the

requirements of Article 4 of EU Delegated Regulation 2018/815 (ESEF RTS).

Delete Group Oyj

Postintaival 7

FI-00230 Helsinki

Finland

Tel. +358 10 656 1000

info@delete.fi