ANNUAL REPORT 2023
2BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
Table of Content
Highlights from 2023
CEO´s Review
7
Strategy 2024-2028
9
Innovative Products
10
Corporate Governance Statement 2023
11
Information for Shareholders
19
Board of Directors
20
Group Management Team
22
Financial Statements
23
3BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
Biohit Oyj is a globally operating Finnish biotechnology company that develops diagnostic and other health products. Biohit’s mission is “Innovating for Health”. Biohit
is headquartered in Helsinki and has subsidiaries in Italy and the United Kingdom. Biohit’s Series B shares (BIOBV) have been listed on NASDAQ OMX Helsinki
since 1999, in the Small Cap / Healthcare segment. The company was established in 1988.
BIOHIT IN BRIEF
“ Globally operating Finnish
biotechnology company. ”
4BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
GLOBAL OPERATIONS
Biohit is a Finnish health technology
company with profitable growth in
international markets. 98.4% of
Biohit’s business comes from exports.
Biohit diagnostics is for sale in Europe,
Asia and South America. In 2023, the
most important regions in terms of
sales were Europe and Asia.
Biohit was actively involved in health
technology trade fairs. Biohit had an
impressive presence at MedLab in
Dubai, UEGW in Copenhagen and
Medica in Düsseldorf.
Clinical trials for the flagship product
GastroPanel are ongoing in countries
such as Belgium, South Korea,
India and Chile.
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HIGHLIGHTS FROM 2023
September
Biohit launches a new logo. The new logo
creates a dynamic visual identity for the
company to the present day while respect-
ing its heritage of innovation.
Biohit launches a new website. The web-
site is functionally divided according to
user groups. Investors, professionals and
consumers will have easy access to the
content that interests them.
Biohit launches the GastroPanel
®
version
using a fingerprick blood sample, Gastro-
Panel
®
quick test NT. The GPQT NT gives
results in 15 minutes and is therefore ideal
for rolling tests.
April
Biohit launches a new strategy for the
years 2024-2028. The strategy defines the
company as a premium specialist in the
diagnosis and prevention of gastrointes-
tinal diseases. The company aims to grow
its turnover annually over the strategy
period by 15-20% at least at an operating
profit rate of 10.
November
“ Biohit launches the GastroPanel
®
version
using a fingerprick blood sample,
GastroPanel
®
quick test NT. ”
November
6BIOHIT Healthcare ANNUAL REPORT 2023
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13
12
11
10
9
8
7
6
5
4
3
2
1
0
2019
2020 2021 2022 2023
Key figures 2023 2022
Revenue (MEUR)
13.1 11.0
EBITDA (MEUR)
2.2 1.6
Operative EBITDA (MEUR)
2.4 1.8
Operating profit/loss (MEUR)
1.8 1.1
Profit/loss before taxes (MEUR)
2.2 0.9
Profit/loss for the period (MEUR)
1.9 0.6
Average number of personnel
44 45
Number of personnel at the end of the period
46 43
Equity ratio (%)
73.0% 68.3%
Earnings per share (EUR), Undiluted
0.12 0.04
Earnings per share (EUR), Diluted
0.12 0.04
Shareholders' equity per share (EUR)
0.62 0.50
Average number of shares during the period
15,097,153 15,045,593
Number of shares at the end of the period
15,113,593 15,045,593
Revenue 2019-2023, MEUR
13.1meur
SUMMARY 2023
REVENUE FROM
INTERNATIONAL OPERATIONS
OPERATIVE EBITDAEQUITY RATIOREVENUE
73.0 % 2.4 meur 98.4 %
7BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
PRESIDENT AND CEO JUSSI HAHTELA
2023 was a financially strong year for Biohit. We
accelerated the growth of our revenue and improved
our operating profit percentage from what was also a
financially strong 2022, and a turning point of a year
for the company. In November, we published a new
strategy with which we will ensure that we stay on a
profitable growth path in the years 2024–2028.
Profitable growth
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In 2023, our revenue grew to EUR 13.1 million
from EUR 11.0 million in the previous year.
This is an increase of 19.4%. Operating prof-
it amounted to EUR 1.8 million, up from EUR
1.1million in the previous year. In addition
to revenue, profitability also improved. The
operating profit percentage was 14.0, while in
2022 it was 10.3%.
Broad-based growth
The parent company as well as the UK and
Italian subsidiaries all improved their sales
markedly. Quick tests sold well overall and the
sales of all the product variations of the flag-
ship product GastroPanel were strong.
Growth was the strongest in Europe. Regional
and product diversification is a favourable
development from the point of view of risk
management.
Strategy for 2024–2028
Biohit’s business has turned to profitable
growth. In three years, our revenue has in-
creased by EUR 6.0 million (83.1%) and the ope-
rating result by EUR 5.0 million. Prioritising sales,
strict cost control and systematic development
of operational efficiency have borne fruit.
With our new strategy, we are aiming for con-
tinued growth on a profitable path. In line
with the strategy published in November, the
financial targets for the years 2024–2028 are
revenue growth of 15–20% annually, with the
operating profit percentage being at least 10.
The five most important points to sum
up the strategy are:
1. Expert of the diagnostics of the
gastrointestinal tract
2. Widening the markets
3. Completing the product range
4. Active selling
5. A company that attracts investors
and talents
The implementation of the strategy started
already last year, and as one of the key mea-
sures, we separated the strategic manage-
ment of sales from the management of the
sales process. The change ensures that the
strategic priorities are reflected in sales. With
this more efficient group-level integration of
sales, we are also enabling internal synergies
and seeking scalability.
With confidence into the new year
We started 2024 confident and well prepared.
There is a global need for diagnostics of the
gastrointestinal tract, and Biohit has a global
solution that produces added value. Biohit’s
diagnostics improve cost-efficiency and the
effectiveness of treatment. This benefits both
society and patients. Lack of resources in the
public sector is a global and chronic fact. Fast,
reliable, and minimally invasive diagnostics
enable a more efficient allocation of the scarce
resources.
Biohit is primed to achieve results, and the
new strategy, which functions as a daily prioriti-
sation tool, ensures that the focus stays on the
right things.
Once again, a big thank you goes to our staff,
Team Biohit, who have committed to moving
the reforms forward. It is a joy and an honour
to work with you all. Thanks also to our cus-
tomers, owners and partners for your support!
In line with the financial targets we set in our
strategy, we expect our revenue to rise to EUR
15.1–15.7 million in 2024 and our operating
profit percentage to be at least 10.
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STRATEGY 20242028
Ageing population
Gastrointestinal related problems
Scarce health care resources
Global problems - Global solutions
Widening markets
Presence in all relevant markets
Europe, Asia, South America, North America
Widening product portfolio
Sustainable high-quality offering
Dynamic portfolio management
Partnerships
Active sales
Market driven sales
Need - Solution - Value-add
Closer to the customer
Attractive for talents and investors
Profitable growing healthtech
Active talent acquisition
Investor policy
Gastrointestinal tract expert
Combining the business and the science
Innovations
R&D
Collaborations
Premium brand
Annual growth 15-20%
EBIT min 10%
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Biohit´s R&D cooperation
across different scientific fields,
innovations and applications
have established valuable
results for the healthcare
worldwide.
GastroPanel
®
tests and Acetium
®
products are examples of our
innovative products for the
promotion of health and
prevention of diseases.
INNOVATIVE PRODUCTS
GastroPanel® quick test NT
Revolutionary quick test innovation of
GastroPanel® is available as a Point-of-Care test
GastroPanel® quick test NT is the further development of the unique Biohit
GastroPanel® examination. Sample can be easily taken from the fingertip and
results are available within 15 minutes. GastroPanel® quick test NT allows
fast diagnosis of and screening for Helicobacter pylori, atrophic gastritis
with related risks as well as high acid output of stomach in symptomatic and
asymptomatic patients.
GastroPanel® quick test NT saves costs and unnecessary clinical appoint-
ments. It helps to target endoscopic examinations to those patients, who
need them most urgently. It significantly improves the patient safety, as it
speeds up the referral to further examinations, treatment and follow-up.
Acetium® capsule
A unique innovation for
protection of the stomach
Acetium® capsule is a patented product to protect the gastric mucosa from acetaldehyde in people who have an
acid-free stomach. Acetium® capsule is indicated for gastric protection in three high-risk groups: i) those with
atrophic gastritis, ii) those taking PPIs or H2 blockers, iii) those with chronic Helicobacter pylori infection.
Acetium® capsule slowly release L-cysteine, an amino acid that binds acetaldehyde derived from alcohol, food and
microbes in the stomach. The Acetium® capsule effectively protects the stomach against the exposure to acetaldehyde
and its carcinogenic effects. This can contribute to reducing the risk of gastric and oesophageal cancer in at-risk groups.
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CORPORATE GOVERNANCE STATEMENT 2023
INTRODUCTION
Biohit Oyj has prepared this Corporate Gover-
nance Statement based on Section 54 of the
Finnish Corporate Governance Code for listed
companies issued by the Securities Market
Association. The company will publish a separate
remuneration report for the financial year 2023
for governing bodies according to the new share-
holders right directive. The existing remunera-
tion policy and information on the remuneration
for the rest of the management team are pub-
lished by Biohit at www.biohithealthcare.com.
The Report of the Board of Directors, Auditor’s
Report, full Corporate Governance Statement,
remuneration policy and the rest of the mana-
gement team’s remuneration are available at
www.biohithealthcare.com.
RULES OBSERVED BY BIOHIT
Biohit Oyj is a Finnish public limited company
whose series B shares are listed on Nasdaq
Helsinki in the Small cap/Healthcare group.
Biohit Group (hereinafter referred to as “Biohit”)
comprises the parent company, Biohit Oyj and
its foreign subsidiaries, which primarily focus
on sales and marketing for Biohit Oyj’s
products. Biohit is headquartered in Helsinki.
Biohit’s governance complies with the appli-
cable legislation, standards and recommen-
dations concerning public listed companies,
the regulations of Nasdaq Helsinki Ltd and
Biohit Oyj’s Articles of Association. Biohit Oyj
has administered its affairs in compliance with
the corporate governance code 2020 for Finnish
listed companies, and this Statement has been
prepared in accordance with the code. The
Corporate Governance Code is available at
www.cgfinland.fi.
Three of the members of the five-person Board
of Directors are independent of the company so
that the company fulfils recommendation num-
ber 10 stating that the majority of the members
of the Board of Directors must be independent
of the company. Biohit’s Board of Directors
is one of the best of its size according to the
Nordic Business Diversity Index, which mea-
sures Board diversity in Finland, Sweden and
Denmark through four different variables: age,
gender, education background and nationality.
The Board of Directors evaluates its indepen-
dence annually.
The company strives to comply with high inter-
national standards of corporate governance
and the key principles of corporate governance
among Finnish listed companies.
BIOHIT’S ADMINISTRATIVE BODIES IN 2023
The highest decision-making power at Biohit
Oyj is exercised by the company’s shareholders
at the Annual General Meeting. The company’s
Board of Directors supervises the adminis-
tration and organisation of the company and
the Group’s earnings trends. The President &
CEO is responsible for operative management
and is assisted by the Management Team.
Annual General Meeting
Biohit Oyj held its 2023 Annual General Meeting
on 14 June in Helsinki. There were 2,018,310 A
shares and 569,160 B shares represented at
the meeting, corresponding to 17.12% of all
the shares in the company and 57.13% of the
votes. 28 shareholders were represented at
the general meeting. The meeting was attended
by two of the five members of the Board of
Directors, the President & CEO and the principal
auditor.
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Board of Directors
The Board of Directors, which comprises 5–7
members elected by the Annual General
Meeting, is responsible for the administration
and appropriate organisation of Biohit’s busi-
ness operations. Proposals concerning mem-
bership of the Board of Directors are prepared
by the Board of Directors. Biohit has defined
the principles applying to diversity within the
Board of Directors in accordance with
recommendation 9 of the corporate gover-
nance code. Biohit’s objective is for both sexes
to be represented on the company’s Board of
Directors. In line with this objective, the Board
of Directors had members of both sexes.
The Board of Directors elects a chairman from
amongst its members. Board members’ terms
of office run from the date of their election by
the AGM until the end of the next AGM.
The Board’s areas of responsibility are stated
in the written rules of procedure approved by
the Board.
They are as follows:
• Increasing shareholder value
• Ensuring the appropriate organisation of
accounting and financial management
• Approving Biohit Oyj’s financial statements,
consolidated financial statements and the
Report of the Board of Directors for the
most recent financial period
• Approving the half year financial report
annually for the period ending at the
end of June
• Deciding on Biohit’s business plan, budget
and investment plan
• Deciding on Biohit’s financing and risk
management policies
• Approving the remuneration and incentive
schemes for senior managers
• Appointing the President & CEO
• Deciding on Biohit’s strategy, organisational
structure, investments and other wide-
reaching and significant issues
The Board’s decision-making is based on the
reports prepared by the company’s operative
management on the operational development
of the Group and its business units.
The Chairman is responsible for convening
Board meetings and arranging the work of the
Board. The Board convenes 5–12 times per
year, usually meeting once every month or
once every two months, and the meeting
schedule for the entire term is confirmed in
advance. When necessary, Board meetings are
held more frequently or by teleconference.
Board of Directors in 2023
Until the Annual General Meeting held on 15
June 2023, the following six people were on
the Board of Directors: Lea Paloheimo (chair-
man), Franco Aiolfi, Liu Feng, Kalle Härkönen
and Osmo Suovaniemi. At the Annual General
Meeting, Liu Feng, Kalle Härkönen, Lea Palo-
heimo and Osmo Suovaniemi were re-elected
to the Board of Directors to serve until the end
of the Annual General Meeting in 2024. Vesa
Silaskivi was elected as a new member to the
Board of Directors. The Board of Directors
elected Vesa Silaskivi as its chairman.
Biohit Oyj’s Board of Directors convened 10
times in 2023 (6 times in 2022). The average
attendance was 96 per cent (92 per cent).
Biohit Oyj’s Board of Directors
on 31 December 2023
Vesa Silaskivi, Chairman (b. 1968) LL.D, Lic (BA)
• Member of the Board since 2023
• Independent of the major shareholders
and the company
• Professional board member since 2016,
several senior management positions,
for example in Valio, Elisa and HPP
Attorneys Ltd
• Attended 6 Board meetings in 2023
• Direct shareholding: No shares
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“ Biohit’s business operations and
administration aim to realise the company’s
values, of which the most important is
to promote health and well-being
through innovation. ”
Lea Paloheimo (b. 1951), PhD
(clinical biochemistry), hospital chemist
• Member of the Board since 2019
• Independent of the major shareholders
and the company
• Employed by Biohit Oyj during 2001-2019,
recently working as a Production and
Product Development Director and
Business Development Director
• Attended 10 Board meetings in 2023
• Direct shareholding: series B shares: 7,000
Liu Feng (b. 1972), General Manager of Hefei
Medicine Co., Ltd, Owner of Biohit Healthcare
Hefei
• Member of the Board since 2018
• Non-independent of the major shareholders
and of the company
• Special researcher at the Counsellor’s
Office of Anhui Provincial People’s
Government
• The vice chairman of the Chinese National
Early Gastrointestinal-Cancer Prevention &
Treatment Centre
• Alliance member of the council of the China
Health Promotion Foundation
• Attended 9 Board meetings in 2023
• Indirect shareholding via Biohit Healthcare
(Hefei) Co., Ltd.: series A shares: 850,000,
B shares: 4,095,415
Kalle Härkönen (b. 1968), MSc (Tech.)
• Member of the Board since 2022
• Independent of the major shareholders
and the company
• CEO at Foamit Oy
• Attended 9 Board meetings in 2023
• Direct shareholding: series B shares: 4,333
Osmo Suovaniemi (b. 1943), MD, PhD
• Member of the Board since 1988
and Chairman 2011-2021
• Non-independent of the major shareholders
and of the company
• Founder of Biohit and its former President
& CEO
• Attended 9 Board meetings in 2023
• Direct shareholding: series A shares:
2,018,310
Board committees
The Board of Directors have assessed that the
scope of the Biohit Oyj’s business does not
require the appointment of a separate Audit
Committee, and consequently no separate
committees have been appointed to increase
the efficiency of the Board.
President & CEO
The President & CEO is responsible for the day-
to-day management of the company in accor-
dance with the instructions and regulations
issued by the Board of Directors. The President
& CEO of the parent company is elected by the
Board and acts as Group President.
He also ensures the appropriate organisation
and legality of the company’s accounting and
asset management. The terms of employment
of the President & CEO are based on a written
contract that is approved by the Board of
Directors. The President & CEO cannot be
elected Chairman of the Board. During the
financial period, Jussi Hahtela MSSc Econ.
acted as the CEO.
Jussi Hahtela (b. 1973)
• MSSc (Econ.)
• With Biohit Oyj since 2021
(CFO until 1 September 2022)
• Previously: Chief Strategist, Head of FX &
Money Markets Sales Finland,
Nordea Markets
• Direct shareholding: series B shares: 20,000
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Group Management Team
The composition and areas of responsibility of
the Group’s Management Team were as follows:
Jussi Hahtela (President & CEO), Jussi Sorvo
(finance, ICT, HR), Suvi Elomaa (production),
Panu Hendolin (R&D), Ilari Patrakka (sales and
marketing) and Daniela Söderström (quality
and registration).
Jussi Sorvo (b. 1990)
• MSc (Econ.)
• CFO
• With Biohit Oyj since 2021
• Previously: Financial auditor, PwC
• Direct shareholding: series B shares: 8,000
Ilari Patrakka (b. 1980)
• MSc (Econ.)
• Chief Commercial Officer
• With Biohit Oyj since 2012, Sales and
Marketing director until 22 November 2023
• Previously: retail sales channel manager at
Marioff Corporation Oy, marketing and
export manager at Gasmet Technologies Oy,
sales manager at Gasmet Technologies
(Asia) Ltd.
• Direct shareholding: series B shares: 12,116
Suvi Elomaa (b. 1985)
• Biotechnology and food engineer
• Production Director
• With Biohit Oyj since 2013
• Previously: Project engineer at the Institute
of Biomedicine, Department of Physiology at
University of Turku
• Direct shareholding: series B shares: 8,000
Graham Johnson (b. 1977)
• BSc (Hons) Biomedical Science
• Head of Global Sales and Marketing,
Managing Director Biohit Healthcare Ltd. (UK)
• With Biohit Oyj since 2002, e.g. as Sales and
Marketing Director (UK)
• Previously: Virology in Public
health laboratories
• Direct shareholding: No shares
Panu Hendolin (b. 1971)
• Ph.D. (Molecular medicine)
• R&D Director
• Previously: At Biohit as R&D and Production
Director in 2007-2008 as well as 2012-2017,
Head of Technical Product management at
Biohit in February 2022 - December 2022.
Production Director at United Medix
Laboratories Oy, Chief Technology
Officer at Sulapac Oy.
• Direct shareholding: series B shares: 5,177
Daniela Söderström (b. 1987)
• MSc (Tech.)
• Quality and Regulatory Affairs Director
• With Biohit Oyj in the field of quality
management since 2014
• Direct shareholding: series B shares: 38,000
Management of subsidiaries
The Managing Directors of the subsidiaries are
responsible for the management of subsidiary
operations and they report to the President &
CEO of the parent company. The subsidiaries
are responsible for the sales and marketing
of Biohit’s products in their market areas. The
managers of subsidiaries operate under the
management and supervision of Biohit’s Presi-
dent & CEO. In 2023, the Managing Directors of
Biohit’s subsidiaries were: Graham Johnson
(United Kingdom) and Franco Aiolfi (Italy).
The personal details and shareholdings of
Biohit Oyj’s Board of Directors and
operative management are available at
https://investors.biohithealthcare.com/en/.
Decision-making procedure
concerning remuneration
The remuneration policy and the rest of the
management team’s remuneration are available
at www.biohithealthcare.com.
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Remuneration of members of
the Board of Directors
The Annual General Meeting approves the fees
of Biohit Oyj’s Board of Directors. The remu-
neration paid to the other members of Biohit
Oyj’s Board of Directors is decided by the com-
pany’s Board of Directors in accordance with
the company’s rules on related-party trans-
actions, which are described in the section
“related-party transactions”.
President & CEO and other
company management
The Board approves the President & CEO’s
remuneration and terms of employment. The
severance payment is dependent on the
duration of the CEO’s term.
The Board approves the remuneration and
terms of employment of members of the
Management Team. Biohit Oyj’s Board of
Directors approves the principles of the incen-
tive schemes for Management Team members
and the President & CEO.
The President & CEO approves the salaries
and profit-based incentives of subsidiaries’
Managing Directors in accordance with the
instructions provided by Biohit’s Board of
Directors. Profit-based incentives are dependent
on sales and profitability trends for each unit.
Pension plans
No other pension arrangements, beyond those
mandated by law, have been made with the
Managing Directors of Group companies.
MAIN CHARACTERISTICS OF INTERNAL
CONTROL OF THE FINANCIAL REPORTING
PROCESS AND RISK MANAGEMENT
Biohit’s internal control is responsible for
ensuring that the Group carries out its busi-
ness operations within the framework of
the current regulations and legislation and
in accordance with the instructions of the
Board of Directors. Internal control seeks to
ensure that the Group operates with maxi-
mum efficiency and that efforts are made at
various levels of the organisation to achieve
the objectives set in the strategy approved by
the Board of Directors. Risk management is
geared towards supporting the achievement of
these objectives by anticipating and managing
business-related risks.
Control environment
Biohit’s business operations and administration
aim to realise the company’s values, of which
the most important is to promote health and
well-being through innovation. According to
the strategy for 2024-2028, Biohit is a global
intestinal tract expert, relating to which it
carries out manufacturing, sales and marketing
activities.
Biohit’s control environment is defined by
the Board of Directors, which, as the highest
administrative body, is responsible for organi-
sing internal control. The President & CEO is
responsible for maintaining the efficiency of
the control environment and the functionality
of internal control. Biohit’s financial depart-
ment is responsible for the functionality of
financial reporting as well as the interpre-
tation and application of financial statement
standards in line with the separately approved
instructions.
Risk assessment
In the assessment of the risks related to
financial reporting, Biohit’s objective is to
identify the major risks associated with the
Group’s business operations and environment.
The cost-effective management and monitoring
of these risks will then ensure that the company’s
strategic and operational targets can be reached
as intended.
The Board of Directors carries the main respon-
sibility for risk assessment and monitoring
the implementation of risk management. The
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President & CEO works with the parent com-
pany’s operative management and subsidiaries’
managers to ensure that the Group’s risk mana-
gement is duly arranged. The parent company’s
operative management is responsible for iden-
tifying and managing the risks involved within
each business area, while the subsidiaries’
Management Teams are responsible for those
in their own market areas.
Risk management is one of the areas covered
by Biohit’s internal control processes, which
regularly monitor the risks associated with
the company’s business operations, identify
any changes and, if necessary, take appro-
priate action to hedge against them. Risk
management focuses on ensuring the conti-
nuity of business operations and preventing
financial misconduct.
Control measures
Internal control measures are integrated
into the Group’s general business manage-
ment and reporting process. The subsidiaries
report to Group Management on business
and earnings trends and the most significant
deviations on a monthly and quarterly basis.
The Group’s Management Team reports to the
Board of Directors on the overall development
of business; these two bodies, together with the
President & CEO, decide on overall corporate
strategies and procedures guiding the opera-
tions of the Group.
The subsidiaries’ Boards follow business
developments and ensure that the parent com-
pany’s approved instructions and guidelines
are followed. As a rule, the Boards of Direc-
tors of the subsidiaries meet monthly. Board
work in the subsidiaries is based on financial
reports and the written monthly and annual
reports drawn up by subsidiary management.
Biohit’s business control is carried out in
accordance with the management system
described hereinabove. The company provides
the reporting systems necessary for busi-
ness and financial management. The financial
department of the parent company provides
instructions for drawing up annual and interim
financial statements and prepares the consoli-
dated financial statements.
The parent company’s finance department
retains central control of funding and adminis-
trative matters within the framework of the
instructions provided by the Board of Directors
and the President & CEO and is also responsible
for the management of interest and exchange
rate risks. The Managing Directors of the sub-
sidiaries ensure that the subsidiaries’ reporting
is carried out in accordance with the instruc-
tions given by the Group’s Management Team.
The parent company’s administration depart-
ment controls and provides instructions on
Group-level personnel policies and any agree-
ments made within the Group.
Disclosure policy
Biohit aims to provide all its stakeholders with
information about the company’s operations in
a proactive, consistent and timely manner. The
company seeks to take the special require-
ments and interests of all its stakeholders
into account in its communications in order to
increase confidence in the company and there-
by promote its business operations. Biohit’s
Board of Directors has approved an informa-
tion release policy with a view to ensuring
the accuracy and reliability of any information
released. The policy also specifies who is
responsible for communications in different
situations.
Biohit’s financial department regularly pro-
vides information on processes related to finan-
cial administration reporting. This ensures the
real-time availability of data, which is a pre-
requisite for efficient internal control.
Financial administration guidelines and the
17BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
company’s information release policy aim to
ensure the promptness and comprehensiveness
of communications as well as the release of
the information required for internal control
purposes.
Monitoring
The efficiency of internal controls on financial
reporting is overseen by the Board of Direc-
tors, the President & CEO, Management Team
members and the Managing Directors of sub-
sidiaries. Control focuses on following weekly
and monthly financial reports and forecasts
and analysing any deviations from business
plans. Monitoring is performed at all Board
and Management Team meetings where
reports are reviewed. It is supported by regular
contact between Group Management and the
company’s auditor, and analysis of any devia-
tions, which occurs at least once per quarter.
The audit frameworks for the Group’s sub-
sidiaries and key audit areas are jointly defined
by the Group’s financial management and the
chief auditor. Biohit has not appointed a sepa-
rately organised function for internal auditing
purposes, but Biohit’s financial department
has the responsibility to implement it in
practice.
The Group has internal control reporting sys-
tems required for financial management and
monitoring business development. The reporting
systems produce monthly financial data so that
financial management can ensure compliance
with the parent company’s approved instructions
on matters such as authorisation.
The Group’s auditor and the auditors of each
subsidiary evaluate the effectiveness of the
internal control system in connection with the
external audit.
AUDIT 2023
The auditor elected by the AGM is responsible
for Biohit’s statutory audit. According to the
Articles of Association, the company must have
one auditing body approved by the Central
Chamber of Commerce. The 2023 Annual
General Meeting re-elected auditing firm Price-
waterhouseCoopers Oy as the company’s audi-
tor for a one-year term, with Tiina Puukkoniemi,
Authorised Public Accountant, as chief auditor.
Auditor and auditor’s fees
The 2023 Annual General Meeting decided to
pay auditor’s fees in accordance with the audi-
tor’s invoice. The Group’s invoiced auditors’
fees for the 2023 financial period totalled EUR
124,000 (EUR 127,000 in 2022). In addition to
this, PricewaterhouseCoopers Oy was paid a
total of EUR 3,000 for other services (EUR 0
in 2022).
RELATED-PARTY TRANSACTIONS
The company keeps a list of its related parties,
and it regularly engages in transactions with
some of these parties. These transactions are
related to the company’s ordinary business
activities, they are appropriate in terms of the
company’s operations and they are executed
on ordinary market terms. The company’s
financial management monitors and super-
vises related-party transactions as part of the
company’s normal reporting and supervision
practices. Relevant transactions between the
company and its related parties are reported
annually in the notes to the company’s con-
solidated financial statements. The company’s
Board of Directors makes all the relevant deci-
sions concerning related-party transactions.
Decision-making is based on particularly thor-
ough preparation and appropriate reports,
statements and estimates. Preparation of the
related-party transactions, decision-making
and approval have been arranged to take
account of the disqualification rules and
appropriate decision-making entities.
18BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
Biohit Oyj’s Board of Directors made the
following decision on 2023 related
party transactions:
1. As part of his work as the head of scientific
advisory board, Osmo Suovaniemi’s
compensation amounted EUR 144,000
(2022: EUR 129,000).
2. As part of his work as the managing director
of Biohit Healthcare S.r.I, Franco Aiolfi
will be paid a fixed fee of EUR 18,000
in 2023 (2022: EUR 18,000).
3. The members of the scientific advisory
board will be paid EUR 85 per hour for the
work outside the scientific advisory board.
INSIDERS
Biohit applies the Guidelines for Insiders
approved by Nasdaq Helsinki Ltd as well as any
relevant amendments.
Biohit’s President & CEO is responsible for
insider control. He ensures that those who
handle insider information are aware of the
insider regulations and that they adhere to the
trading restrictions. Insiders are not allowed
to trade Biohit Oyj securities for 30 days before
the publication of the company’s financial state-
ment bulletin and interim reports. Insiders par-
ticipating in projects are not allowed to trade
shares in Biohit before an announcement has
been made of the continuation or discontinu-
ation of a project.
Information on the shareholdings of Biohit’s
insiders and their trading activity is available
at https://investors.biohithealthcare.com/en/.
19BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
INFORMATION FOR SHAREHOLDERS
General meeting of shareholders
Biohit Oyj’s Annual General Meeting has been
planned for Wednesday 5 June 2024 in Helsinki.
The Board of Directors will call the General
Meeting at a later date.
Board´s proposal for distributions of profit
The parent company’s distributable funds
(unrestricted equity) on 31 December 2023 are
EUR 6,107,520.93 of which the period net profit
is EUR 1,666,264.33. The Board of Directors
proposes to the Annual General Meeting that
no dividend be paid for the fiscal year.
Shares
Total number of shares:
15,113,593 (15,045,593 in 2022)
Series A shares (20 votes per share):
2,975,500 (2,975,500 in 2022)
Series B shares (1 vote per share):
12,138,093 (12,070,093 in 2022)
Biohit Oyj’s series B shares are listed in the
Nasdaq Helsinki Ltd Small Cap group. The
shares are traded under the symbol BIOBV.
More detailed information about Biohit Oyj’s
shares is provided in the notes to the
consolidated financial statements and on
https://sijoittajat.biohithealthcare.com/en/.
Financial communication
The financial reviews and other stock exchange
releases published by Biohit are available on
https://sijoittajat.biohithealthcare.com/en/.
You can also subscribe to receive financial
communications by email using the subscription
form on the website.
Next financial report
The half-year financial report for January -
June 2024 (H1) will be published on Wednesday
7 August 2024.
Silent period
Biohit observes a silent period of 30 days
before results are published. During this period,
Biohit’s management and other personnel will
not provide information about the company’s
financial position or market related comments,
nor will they meet with representatives from
equity markets or the financial media. However,
if an event that requires immediate publication
takes place during the silent period, Biohit
will publish information without delay in accor-
dance with disclosure regulations. In such
cases, the company is able to comment on
the event.
20BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
BOARDS OF DIRECTORS
Lea Paloheimo
born in 1951
PhD (clinical biochemistry), hospital chemist
Member of the Board of Biohit Oyj since 2019
Independent of the major shareholders and the company
Other relevant experience:
With Biohit Oyj during the years 2001-2019. Production
and Product Development Director,
Business Development Director
Liu Feng
born in 1972
General manager of Hefei Medicine Co., Ltd,
Member of the Board of Biohit Oyj since 2018
Non-independent of the major shareholders and of the company
Other relevant experience:
Special researcher at the Counselor’s Office of
Anhui Provincial People’s Government
The vice chairman of the Chinese National Early
GastrointestinalCancer Prevention & Treatment
Center Alliance
Member of the council of the China Health
Promotion Foundation.
In 2013, Liu Feng and his companies and Biohit Oyj
established a joint venture Biohit Healthcare (Hefei) Co., Ltd
Vesa Silaskivi
born in 1968
LL.D, Lic (BA)
Chairman of Biohit Oyj’s Board of Directors
Member of the Board since 2023
Independent of the major shareholders and the company
Other relevant experience:
• Professional board member since 2016,
several senior management positions,
for example in Valio, Elisa and HPP
Attorneys Ltd
21BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
BOARDS OF DIRECTORS
Kalle Härkönen
born in 1968
Foamit Group Oy, CEO, and MD Uusioaines Oy
Member of the Board of Biohit Oyj since 2022
Independent of the major shareholders and the company
Other relevant experience:
More than 25 years of experience in international business in various
industries, especially in managing and developing companies and
their global supply chains through digitalization and innovation.
Teknos Group Oy, Deputy CEO, COO, Head of Group
Operation and Logistics, 2016 – 2020
Fazer Confectionery Ltd, Vice President Supply chain &
sourcing, 2013 – 2016
Sartorius Biohit Liquid Handling Oy, part of Sartorius Lab
Holding GmbH, Vice President, Liquid Handling Operation,
2012 – 2013
Biohit Oyj, Chief Operational Officer (COO), 2001 – 2012
Osmo Suovaniemi
born in 1943
MD, PhD, Professor
Member of the Board of Biohit Oyj since 1988, Chairman 2011-2021
Non-independent of the major shareholders and of the company
Other relevant experience:
The founder of Biohit Oyj
The founder, main shareholder, chairman, and CEO of
Labsystems Oyj and Eflab Oy
Received an award in 1992 for having most patents in Finland.
A board member, vice-chairman, and chairman of the General
Industry Group in Finland in 1978-1986
A board member of the Confederation of Finnish Industry in 1986
A member of the Academy of Technical Sciences from 2003
22BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
GROUP MANAGEMENT TEAM
Ilari Patrakka
born in 1980
MSc (Econ.),
CCO
With Biohit Oyj
since 2012.
Daniela Söderström
born in 1987
MSc (Tech.), Quality
and Regulatory
Affairs Director
With Biohit Oyj
since 2014.
Jussi Hahtela
born in 1973
MSSc,
President and CEO
With Biohit Oyj
since 2021.
Panu Hendolin
born in 1971
Ph.D.
(Molecular medicine),
R&D Director
With Biohit Oyj
since 2022.
Suvi Elomaa
born in 1985
Biotechnology and
food engineer,
Production Director
With Biohit Oyj
since 2013.
Jussi Sorvo
born in 1990
MSc (Econ.), CFO
With Biohit Oyj
since 2021.
Graham Johnson
born in 1977
Head of Global Sales
and Marketing, Managing
Director Biohit
Healthcare Ltd. (UK)
With Biohit Oyj
since 2002.
23BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
FINANCIAL STATEMENTS
Table of Content
1. Report by the Board of Directors
24
2. Consolidated Financial Statements*
30
Consolidated Comprehensive Income Statement
30
Consolidated Balance Sheet
31
Statement of Changes in Consolidated Shareholders´ Equity
33
Consolidated Cash Flow Statement
34
Notes to the Consolidated Financial Statements
36
3. Key Indicators
66
4. Shares and Shareholders
68
5. Formulae for Calculating Key Indicators
71
6. Parent Company’s Financial Statement*
72
7. Board of Director´s Proposal Regarding the Distribution of Profits*
87
8. Auditor´s Report
88
* Part of the financial statements
24BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
1. REPORT BY THE BOARD OF DIRECTORS 2023
SUMMARY
Revenue EUR 13.1 million (EUR 11.0 million)
Revenue grew by 19.4% compared to year 2022
Operative EBITDA EUR 2.4 million (EUR 1.8 million)
Cash at the end of the period EUR 3.0 million (EUR 2.1 million)
ROE 21.9% (8.1%)
Fair value of Genetic Analysis AS investment EUR 0.1 million
(EUR 0.3 million 31 December 2022)
Revenue from international operations 98.4% (97.9%) of total revenue
Equity ratio 73.0% (68.3%)
Biohit’s revenue grew 19.4% from the previous year. Profitability has also improved. EBIT-% was 14.0% compared to 10.3% in 2022. The strong balance sheet creates good conditions to further
develop business and to stay on the growth track. Biohit’s equity ratio was 73.0% at the end of the financial year (68.3%). The company’s financial assets totalled EUR 6.7 million (EUR 5.9 million).
BIOHIT GROUP KEY FIGURES
1–12/2023 1–12/2022
Revenue (MEUR) 13.1 11.0
EBITDA (MEUR) 2.2 1.6
Operative EBITDA (MEUR) 2.4 1.8
Operating profit/loss (MEUR) 1.8 1.1
Profit/loss before taxes (MEUR) 2.2 0.9
Profit/loss for the period (MEUR) 1.9 0.6
Average number of personnel 44 45
Number of personnel at the end of the period 46 43
Equity ratio (%) 73.0% 68.3%
Earnings per share (EUR), Undiluted 0.12 0.04
Earnings per share (EUR), Diluted 0.12 0.04
Shareholders' equity per share (EUR) 0.62 0.50
Average number of shares during the period 15,097,153 15,045,593
Number of shares at the end of the period 15,113,593 15,045,593
25BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
CONSOLIDATED REVENUE AND OPERATING PROFIT
2023 2022
Revenue MEUR 13.1 11.0
Operating income MEUR 1.8 1.1
ALTERNATIVE PERFORMANCE MEASURES
Bridge calculation of EBITDA
EUR million
1-12/2023 1-12/2022
Operating profit/loss 1.8 1.1
Depreciation and amortization 0.4 0.5
EBITDA
2.2 1.6
Bridge calculation of operative EBITDA
EUR million
1-12/2023 1-12/2022
Operating profit/loss 1.8 1.1
Depreciation and amortization 0.4 0.5
IFRS 2 Share based payments 0.2 0.2
Operative EBITDA
2.4 1.8
REPORTING
Biohit’s product portfolio consists of diagnostic tests, analysis systems,
products binding carcinogenic acetaldehyde into a harmless compound
and monoclonal antibodies. The entire product and service portfolio is
reported under a single segment.
REVENUE AND EBIT
Revenue grew by 19.4% from 2022. Revenue from international opera-
tions was 98.4% (97.9%) of total revenue. EBIT was EUR 1.8 million
(EUR 1.1 million).
BALANCE SHEET, FINANCING AND OPERATIONAL CONTINUITY
On 31 December 2023 the balance sheet totalled EUR 12.9 million
(EUR 11.0 million on 31 Dec 2022). At the end of the reporting period our
equity ratio stood at 73.0% (68.3% 31 December 2022).
Profitable financial period increased the balance sheet.
Biohit Oyj has a stable financial position. On 31 December 2023, the
company’s financial assets totalled EUR 6.7 million (EUR 5.9 million)
which does not include Genetic Analysis AS shares.
The company has managed to keep its working capital on a good level
and the management believes that working capital will cover the opera-
tions for the next 12 months and the company is not dependent on
external financing to be able to guarantee the continuity of its operations.
Cash flow from operating activities was EUR 0.9 million during the
review period and EUR 1.3 million during the second half of the year.
The company’s management assessment is that the company’s ability
to continue its operations is good and there are no indications of events
or circumstances that alone or combined might give a significant reason
to doubt the organisation’s ability to continue its operations.
26BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
“ The most significant contributor
to the sales was GastroPanel
®
with its many variants. ”
INVESTMENTS
Gross investments during the 1-12/2023 reporting period totalled EUR
0.3 million (EUR 0.1 million).
PERSONNEL
During the review period, the Biohit Group employed on average 44 (45)
people of whom 35 (36) were employed by the parent company and 9 (9)
by the subsidiaries.
SHORT-TERM RISKS AND UNCERTAINTY FACTORS
Biohit’s key risks are related to the success of product registrations as
well as the selection and development of new market areas and distri-
bution channels.
The diagnostic industry is heavily regulated, and this may have an effect
on Biohit’s sales. The duration of the product registration process is
different in each market area. For this reason, conquering new markets
may be slow.
It is also critical to implement the changes required by the new IVDR EU
regulation so that sales of the existing products can continue.
When investing liquid assets, the objective is to gain a return on invest-
ment with a low risk of equity loss. The investment portfolio consists of
deposits, investment funds and corporate loans. A fundamental aspect
in portfolio management is sufficient diversification across different
asset classes, investment instruments and counterparties. The invest-
ment portfolio is subject to equity risk that is managed by diversification
and allocation decisions. The portfolio is also subject to interest rate
risk, which is managed by adjusting the duration of the portfolio. In
addition, general instability in the financial markets may have a negative
impact on the value of the investment portfolio.
The Group’s investment in listed Genetic Analysis AS is subject to changes
in share price and the EUR/NOK foreign exchange rate.
Biohit’s customer base is widely diversified, with the exception of
GastroPanel® sales in China, which currently represents a major
single business for Biohit. Biohit HealthCare (Hefei) Co. Ltd. has, based
on a security agreement signed on 8 February 2022, pledged to Biohit
1,500,000 class B Biohit shares as security for its obligations referred
to therein. The pledge significantly decreases the risks that are related
to sales in China.
Otherwise, the company is not significantly dependent on individual
customers or project deliveries.
The balance sheet and sales of the Biohit’s UK subsidiary are in GBP.
As a result, Biohit is exposed to the risk of GBP weakening. Otherwise,
most of the company’s business is conducted in EUR and the indirect
effects of the currency exchange rate fluctuations are considered
insignificant.
27BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
OUTLOOK FOR 2024
Biohit expects its revenue to grow according to the strategy to 15.1 –
15.7 million euros and EBIT-% to be at a minimum of 10.
MAIN EVENTS IN THE FINANCIAL YEAR
Biohit’s revenue continued to grow reaching EUR 13.1 million (2022:
EUR 11.0 million, growth 19.4%). The profitability also improved.
Operative EBITDA was EUR 2.4 million. Growth from the previous year
was EUR 0.6 million. EBIT rose to EUR 1.8 million from EUR 1.1 million
in 2022. Gross margin was 61.6% (62.2% in 2022).
Growth in revenue was broad-based both regionally and product wise.
The most significant contributor to the sales was GastroPanel with its
many variants. The ELISA version is a fit for large scale laboratory use.
Quick-test version analyses health of the stomach mucosa in just 15
minutes in Point-of-Care use.
Biohit was granted funding for two R&D projects by the European Union
and Business Finland in 2021. The total amount of these grant fundings
is EUR 0.9 million, of which EUR 0.2 million was deferred as revenue to
the reporting period. Centre for Economic Development, Transport and
the Environment decided to grant Biohit Oyj EUR 0.2 million support
for corporate development. This support had no financial impact on the
reporting period.
In 2022 the Italian subsidiary made EUR 0.3 reservation regarding the
Italian state’s demand of ex post compensation from suppliers of
medical equipment for the budget overruns of the Italian administrative
regions in the years 2015-2019. Like other operators in the field,
Biohit has denied the demands. Reservation decreased the 2022 revenue.
This is still an unfinished business, which means that reservation was
not recognised as revenue or cost in 2023.
Biohit owns 5.71% of the listed Norwegian Genetic Analysis AS. Valuation
of the shareholding decreased by EUR 0.2 million to EUR 0.1 million
in 2023.
Strategy for 2024-2028
In November Biohit released a strategy for 2024-2028. The strategy-
driven financial targets are annual revenue growth of 15%-20% and
EBIT-% of minimum 10.
Five key cores of the strategy are:
1. Gastrointestinal tract expert
2. Widening markets
3. Widening portfolio
4. Active in sales
5. Attractive for talents and investors
Changes in the management group
Ilari Patrakka was appointed Chief Commercial Officer. Patrakka has
previously worked as Biohit’s Director of Sales and Marketing. Patrakka’s
responsibility is to make sure that strategic cores will be prioritised in
sales.
Graham Johnson, Managing Director of Biohit’s UK subsidiary, was
appointed Head of Global Sales and Marketing as well as a member of
the Management Group. Johnson will continue to lead the UK subsidiary.
The target of the group level integration in sales is to utilise internal
synergies and scalability.
28BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
RESEARCH AND DEVELOPMENT AS WELL AS CLINICAL STUDIES
R&D operations focus on innovations, as well as product development
and further improved usability. Biohit also employs external experts
and subcontractors in its R&D operations.
In 2023 EUR 0.2 million of development expenditure was capitalised
(EUR 0 million). Research and development expenditure during the
1-12/2023 reporting period amounted to EUR 1.2 million (EUR 1.2
million) of which the second half-year accounted for EUR 0.6 million
(EUR 0.7 million).
R&D of the new products proceeded as planned in 2023. IVDR and MDR
related regulation compliance consumed extensive resources, but this
was provided for.
FINANCIAL REPORTING
In 2024 Biohit will publish the half-year financial report for period January
- June 2024 (H1) at 9:30 am on Wednesday 7 August 2024.
MAJOR EVENTS AFTER THE CLOSE OF THE REVIEW PERIOD
The company’s management is not aware of any other material events
which have occurred since the balance sheet date.
RELATED PARTY LOANS
The CEO of the group has been granted a market-based long-term loan
of EUR 20 thousand (EUR 0) and the management team EUR 97
thousand (EUR 57 thousand). The loan interest rate is 12-month Euribor
plus 0.3%. Interest is paid annually in arrears. The loan period is five
years. The borrower is entitled to pay back the loan early.
GOVERNMENT
Annual General Meeting in 2023
AGM decided on 14 June, 2023, as suggested by the Board of Directors,
that no dividend will be paid for financial year 2022.
The AGM resolved that five (5) members are elected to the Board of
Directors and that CEO Liu Feng, CEO Kalle Härkönen, PhD Lea
Paloheimo, LL.D, Lic (BA) Vesa Silaskivi and professor h.c., MD, PhD
Osmo Suovaniemi are elected as members of the Board of Directors
until the end of the next AGM.
AGM decided to choose PricewaterhouseCoopers as the audit firm.
Biohit Oyj’s Management Team
The members of Biohit’s Management Team are: CEO Jussi Hahtela,
CFO Jussi Sorvo, CCO Ilari Patrakka, Production Director Suvi Elomaa,
Research and Development Director Panu Hendolin, Head of Global Sales
and Marketing Graham Johnson and Quality and Regulatory Affairs
Director Daniela Söderström.
29BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
BIOBV/NASDAQ OMX Helsinki 1-12/2023 1-12/2022
High (EUR) 2.22
2.15
Low (EUR)
1.57
1.05
Average (EUR)
1.93
1.71
Latest (EUR)
1.89
1.57
Turnover (EUR 5,163,409 6,398,774
Turnover volume 2,680,632 3,751,374
SHARES AND SHAREHOLDERS
Biohit Oyj’s number of shares is 15,113,593 (15,045,593), of which
2,975,500 (2,975,500) are Series A shares and 12,138,093 (12,070,093)
are Series B shares. The Series B shares are quoted on NASDAQ Helsinki
in the Small cap/Healthcare group under the code BIOBV.
Shareholders
At the end of the reporting period on 31 December 2023 the company
had 7,923 shareholders (7,734 on 31 December 2022). Private house-
holds held 60.3% (60.2%), companies 5.3% (6.7%) and public sector
organisations 0.0% (0.0%). Foreign ownership or nominee registrations
accounted for 34.5% (33.1%) of shares.
Further information on the shares, major shareholders and
management shareholdings is available on the company’s website.
https://investors.biohithealthcare.com/en/
BOARD’S PROPOSAL FOR DISTRIBUTIONS OF PROFIT
The parent company’s distributable funds (unrestricted equity) on
31 December 2023 are EUR 6,107,520.93.02 of which the period net
profit is EUR 1,666,264.33. The Board of Directors proposes to the
Annual General Meeting that no dividend be paid for the fiscal year.
AGM in 2024
Biohit Oyj’s Annual General Meeting has been planned for Wednesday
5 June 2024. The Board of Directors will call the General Meeting later.
Corporate governance statement
Biohit Oyj will release a separate Corporate Government Statement at:
https://investors.biohithealthcare.com/en/investors/corporate_governance
Helsinki 13 February 2024
Biohit Oyj
Board of Directors
30BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
€ 1,000 Note 1 Jan - 31 Dec 2023 1 Jan - 31 Dec 2022
Revenue 2.3 13,076 10,951
Change in inventories of finished and unfinished products 90 -16
Other operating income 2.5 279 299
Materials and services 2.6 -4,702 -3,823
Expenses arising from employment benefits 2.7 -4,086 -3,618
Other operating expenses 2.8 -2,468 -2,184
EBITDA 2,188 1,610
Depreciation and amortization 2.10 -364 -481
Operating profit/loss 1,825 1,129
Financial income 2.11 530 92
Financial expenses 2.11 -159 -352
Profit/loss before taxes 2,195 868
Income taxes 2.12 -344 -267
Profit/loss for the financial period 1,851 601
Other items of comprehensive income
Items that may later be reclassified through profit and loss
Translation differences 12 -31
Items that will not be reclassified through profit and loss
Changes in the fair value of equity instruments measured at fair value through other comprehensive income -173 -609
Total comprehensive income for the period 1,691 -39
Distribution of profit/loss for the financial period
To the owners of the parent company 1,851 601
Total 1,851 601
Distribution of comprehensive income for the financial period
To the owners of the parent company
Total
Earnings per share calculated from earnings attributable to the owners of the parent company
Undiluted earnings per share (EUR)
2.13 0.12 0.04
Diluted earnings per share (EUR)
2.13 0.12 0.04
2. CONSOLIDATED FINANCIAL STATEMENTS
Consolidated Comprehensive Income Statement
31BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
€ 1,000 Note 31 Dec 2023 31 Dec 2022
ASSETS
Non-current assets
Intangible assets 2.14 183 41
Property, plant and equipment 2.15 140 140
Right-of-use assets 2.15, 2.16 626 853
Other non-current financial assets 2.17 118 58
Deferred tax assets
2.19 20 22
Total non-current assets 1,087 1,115
Current assets
Inventories 2.20 890 920
Trade and other receivables 2.17, 2.21 4,129 2,753
Other current financial assets 2.17 3,787 4,105
Cash and cash equivalents 2.17, 2.18 3,027 2,122
Total current assets 11,833 9,900
Total assets 12,920 11,015
Consolidated Balance Sheet
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€ 1,000 Note 31 Dec 2023 31 Dec 2022
SHAREHOLDERS’ EQUITY AND LIABILITIES
Shareholders' equity
Share capital 2.22 2,350 2,350
Fair value reserve 2.22, 2.23 -1,873 -1,701
Invested unrestricted equity fund 2.22, 2.23 5,206 5,138
Translation differences -95 -107
Retained earnings 3,837 1,777
Shareholders' equity attributable to shareholders of the parent company 9,426 7,458
Total shareholders' equity 9,426 7,458
Long-term liabilities
Lease liabilities 2.16, 2.18, 2.24 427 686
Deferred tax liabilities 2.19, 2.25 2 2
Other liabilities 2.18, 2.25 7 8
Total long-term liabilities 436 696
Short-term liabilities
Trade payables
2.17, 2.25 465 676
Tax liabilities
2.17, 2.25 371 139
Short-term interest-bearing liabilities
2.16, 2.18, 2.24 275 257
Other liabilities
2.25 1,947 1,789
Total short-term liabilities 3,059 2,862
Total shareholders' equity and liabilities 12,920 11,015
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Statement of Changes in Consolidated Shareholders´ Equity
SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY
€ 1,000 Share capital
Invested
unrestricted
equity fund
Translation
differences
Fair value
reserve
Retained
earnigns
Total
shareholders'
equity
Shareholders' equity 1 January 2023 2,350 5,138 -107 -1,701 1,777 7,458
Share-based payments
- - - -
Exercise of share options - 68
- 68
Adjustments of translation differences - -
- -
0 0
Total comprehensive income for the period - - 12 -173 1,851 1,691
Shareholders’ equity 31 December 2023 2,350 5,206 -95 -1,873 3,837 9,426
SHAREHOLDERS’ EQUITY ATTRIBUTABLE TO SHAREHOLDERS OF THE PARENT COMPANY
€ 1,000 Share capital
Invested
unrestricted
equity fund
Translation
differences
Fair value
reserve
Retained
earnigns
Total
shareholders’
equity
Shareholders' equity 1 January 2022 2,350 5,138 -76 -1,092 979 7,300
Share-based payments - - - -
Adjustments of translation differences - -
Total comprehensive income for the period - - -31 -609 601 -39
Shareholders' equity 31 December 2022
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Consolidated Cash Flow Statement
€ 1,000 Note 2023 2022
Cash flow from operating activities
Profit/loss for the financial period 1,851 601
Adjustments to profit for the financial period
Business activities with no payment transactions*
Depreciation and impairment 2.10 364 481
Unrealised exchange rate gains and losses 2 -2
Financial income and expenses -371 248
Income taxes 2.12 344 267
Total adjustments to income for the financial period 563 1,199
Change in working captial
Increase (-)/ decrease (+) in short-term interest-free trade receivables -1,392 -29
Increase (-)/ decrease (+) in inventories 34 -165
Increase (+)/ decrease (-) in short-term interest-free liabilities -16 547
Total change in working capital -1,375 353
Interest paid -361 -106
Interest received 355 122
Realised exchange rate gains and losses 28 -9
Income tax paid -160 -313
Net cash flow from operating activities 902 1,848
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€ 1,000 Note 2023 2022
Cash flow from investments
Investments in tangible and intangible assets -248 -59
Income from disposal of tangible and intangible assets - -
Investments in funds and deposits -1,924 -2,900
Profit from the sale of investments in funds and deposits 2,425 2,334
Loans -60 -
Net cash flow from investments 192 -625
Cash flow from financial activities
Repayment of lease liabilities -267 -186
Excercise of share options 68 -
Net cash flow from financial activities -199 -186
Change in financial assets 895 1,036
Cash and cash equivalents at the beginning of the period
Effects of changes in exchange rates
Cash and cash equivalents at the end of the period 3,027 2,122
* Includes EUR 209 thousand options costs (EUR 195 thousand year 2022)
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NOTES TO THE PARENT COMPANY´S FINANCIAL STATEMENTS
2.1 BASIC INFORMATION ON THE COMPANY
The parent company’s domicile is Helsinki, Finland.
A copy of the consolidated financial statements is available on the
website, www.biohithealthcare.com and at the headquarters of the
Group’s parent company at Laippatie 1, Helsinki, Finland.
publication on 14 February 2024. In accordance with the Finnish Limited
Liability Companies Act, shareholders have the opportunity to approve
or reject the financial statements at the Annual General Meeting, which
is to be held after the financial statements have been published. At the
Annual General Meeting, it is also possible for a decision to be made to
alter the financial statements.
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INTANGIBLE ASSETS
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Impairments of tangible and intangible assets
On the closing day of each financial period, the Group assesses whether
there are indications of impairment in the value of a particular asset. If
there are such indications, the recoverable amount from the said asset
is estimated. Additionally, the recoverable amount is estimated annually
for goodwill, regardless of whether there is any indication of impairment.
The need for impairment is reviewed at the level of cash-generating units,
that is, the lowest unit level that is largely independent of other units,
and whose cash flow can be separated from other cash flows. The
discount rate used is the interest rate that is determined before taxes
and that describes the market’s view of the time value of money and the
risks incorporated in the tested asset.
The recoverable amount is the asset’s fair value, less costs arising from
transfer or a higher utility value. Value in use is the estimated future
net cash flow from the asset or cash-generating unit, which is discounted
to its present value. Impairment loss is recognised if the book value
of the asset is higher than the recoverable amount. Impairment loss
is recognised immediately in the income statement. If the impairment
loss is allocated to a cash-generating unit, it is first allocated to reduce
the goodwill of the cashgenerating unit and then to reduce the other
assets of the unit pro rata. The impairment loss is cancelled if there
is a change in the conditions and the recoverable amount from the
asset has changed since the impairment loss was booked. However,
the impairment loss may not be reversed in excess of what the asset’s
book value would be without the recognition of the impairment loss.
Impairment losses recognised for goodwill are never reversed.
Pension obligations
In Group companies, pension cover is arranged in accordance with the
pension legislation and practices of the country in question. The pension
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arrangements are defined-contribution plans. The payments related
to defined-contribution pension plans are recognised as costs in the
financial period in which they arise.
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Concept of operating profit and loss
IAS 1 Presentation of Financial Statements does not define the concept
of operating profit. The Group has defined it as follows: operating
profit or loss is a net total that can be calculated by adding other
operating income to net sales, subtracting purchase expenses adjusted
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by the change in the stock of finished and unfinished products as well as
expenses caused by production for own use, subtracting expenses from
employee benefits, depreciation and potential impairment losses, as
well as other operating expenses. All other items, including discontinued
operations, are presented beneath operating profit or loss. Exchange
differences and changes in the fair value of derivatives are included
in operating profit or loss providing they arise from business-related
items. Otherwise, they are recognised as financial items. Exchange dif-
ferences related to the Group’s internal receivables and liabilities are
recognised as financial items.
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Application of new or amended IFRS standards
and IFRIC interpretations
Biohit will begin applying new or amended IFRS standards and interpre-
tations as of the date on which they enter into force or when they are
approved for adoption in the EU. The consolidated financial statements
were prepared in compliance with the same principles used in 2022, with
exception of the standard IAS 38 – Intangible assets and the following
new standards, interpretations and changes to the existing accounting
standards, which the group has applied as of January 1, 2023:
Changes to IAS 1 - Presentation of financial statements, to IFRS Practice
Statement 2, to IAS 8 - Accounting principles, changes in accounting
estimates and errors: Presentation of accounting principles and
definition of accounting estimates. Changes or interpretations of the
new standards do not have a significant impact on the financial statements.
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2.4 ACQUIRED BUSINESSES
No new businesses were acquired in the 2023 and 2022 financial periods.
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2.18 NET LIABILITIES
€ 1,000 2023 2022
Cash and cash equivalents 3,027 2,122
Other investments 3,679 3,825
Non-current liabilities -7 -8
Lease liabilities -702 -943
Net liabilities 5,997 4,996
Liquid assets and other financial assets 6,706 5,947
Gross liabilities - fixed interest -709 -951
Net liabilities 5,997 4,996
Other investments are short-term money market investments that are traded on active markets and that are measured at fair value through profit
and loss. In addition, other investments include short-term deposits, which are valued at amortised cost.
Financial liabilities include trade payables EUR 465 thousand
(EUR 676 thousand).
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Tax losses carried forward
€ 1,000
Expiring year Losses
2023 2,828
2024 4,241
2025 3,395
2026 2,421
2027
1,684
2028 2,247
2029
296
2030
2,188
2031
299
2031
299
2032
288
2033
-
The table for tax losses carried forward is presented below.
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Options granted during the 2021 financial period:
Scheme
I 2021
Types A, B, C,
D, E
I 2021
Types A, B,
C, D
Nature of the scheme Share options Types A, B, C, D, E
Date of granting 7 December 2021 7 December 2021
Number of instruments granted 440,000 440,000
Subscription price EUR 1.00 EUR 2.00
Share price at the time of granting EUR 1.93 EUR 1.93
Period of validity (years)
6.24 6.24
Realisation In shares In shares
Options granted during the 2022 financial period:
Scheme
I 2022
Types A, B, C,
D, E
I 2022
Types A, B,
C, D
Nature of the scheme Share options Share options
Date of granting
29 November 2022 29 November 2022
Number of instruments granted 80,000 80,000
Subscription price EUR 1.00 EUR 2.00
Share price at the time of granting EUR 1.76 EUR 1.76
Period of validity (years)
5.26 5.26
Realisation In shares In shares
For series I 2021 and I 2022 the share subscription is 1.3.2023-1.3.2028
and for series II 2021 and II 2022 1.3.2024-1.3.2028. The right to exercise
shares requires the fulfilment of specifically determined profit objec-
tives. If a option rights holders employment ends for whatever reason,
they are obligated to return those option rights whose subscription
period has not begun when the employment or management position
ceases to the Company.
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2.24 INTEREST-BEARING LIABILITIES
Balance sheet values of interest-bearing liabilities
€ 1,000 2023 2022
Long-term interest-bearing liabilities
Lease liabilities 427 686
Total interest-bearing long-term liabilities 427 686
Short-term interest-bearing liabilities
Lease liabilities 275 257
Total interest-bearing short-term liabilities 275 257
Total interest-bearing liabilities 702 943
Subordinated loans
The company has no subordinated loans.
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“ Biohit’s customer base primarily
consists of solvent companies. “
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IFRS IFRS IFRS IFRS IFRS
2019 2020 2021 2022 2023
Revenue € 1,000 10,052 7,123 9,361 10,951 13,076
Change in revenue % 1.2% -29.1% 31.4% 17.0% 19.4%
Operating profit/loss € 1,000 -1,412 -3,174 -1,480 1,129 1,825
Proportion of revenue (%) -14.0% -44.6% -15.8% 10.3% 14.0%
Profit/loss before extraordinary items and taxes € 1,000 -1,227 -3,261 -1,305 868 2,195
Proportion of revenue (%) -12.2% -45.8% -13.9% 7.9% 16.8%
Profit/loss before taxes € 1,000 -1,227 -3,261 -1,305 601 1,851
Proportion of revenue (%) -12.2% -45.8% -13.9% 5.5% 14.2%
Return on equity (%) -9.3% -28.5% -18.7% 8.1% 21.9%
Return on investments (%) -8.0% -25.8% -15.3% 15.3% 25.4%
Equity ratio (%) 83.9% 80.8% 76.3% 68.3% 73.0%
Investments in fixed assets € 1,000 48 15 37 55 277
Proportion of revenue (%) 0.5% 0.2% 0.4% 0.5% 2.1%
Research and development expenditure € 1,000 1,232 1,043 1,219 1,237 1,173
Proportion of revenue (%) 12.3% 14.6% 13.0% 11.3% 9.0%
Balance sheet total € 1,000 17,372 10,777 9,613 11,015 12,920
Average number of personnel 46 45 44 45 44
3. KEY INDICATORS
3.1 INDICATORS OF FINANCIAL TRENDS
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IFRS IFRS IFRS IFRS IFRS
2019 2020 2021 2022 2023
Earnings per share, undiluted (EUR) -0.09 -0.22 -0.10 0.04 0.12
Shareholders' equity attributable to the owners of the parent company (EUR per share) 0.97 0.58 0.49 0.50 0.62
Price-to-earnings ratio (P/E) -37.3 -11.3 -18.5 39.3 15.7
Series B share price trend (EUR)
- average 2.99 2.56 2.11 1.71 1.93
- low 2.10 1.90 1.82 1.05 1.57
- high 3.70 4.30 2.54 2.15 2.22
- price 31 December 3.36 2.48 1.84 1.57 1.89
Market capitalisation EUR 1,000
(presuming the same market value for Series A shares as for Series B shares) 50,553 37,313 27,609 23,622 28,458
Turnover of Series B shares (thousands) 3,362 5,518 4,213 3,751 2,681
- proportion of the total (%) 27.9% 45.7% 34.9% 31.1% 22.1%
Average ex-rights adjusted number of shares 15,005,253 15,045,593 15,045,593 15,045,593 15,097,153
- taking into consideration the diluting effect of options and convertible bonds 15,005,253 15,045,593 15,045,593 15,065,486 15,127,361
Ex-rights adjusted number of shares at the end of the financial period 15,045,593 15,045,593 15,045,593 15,045,593 15,113,593
- taking into consideration the diluting effect of options and convertible bonds 15,045,593 15,045,593 15,045,593 15,065,486 15,143,800
3.2 Share-specific indicators
The company has had options that had a dilutive effect in previous financial years. As the company was loss making, no dilutive effect has been presented.
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4. SHARE AND SHAREHOLDERS
4.1 FINAL MARKET VALUES OF SHARES
4.2 SHARES AND SHAREHOLDERS
Shareholdings by owner group 31 December 2023
Series A shares
Number
of owners
shares %
Number of
shares %
1. Companies 2 22.2 874,990 29.4
2. Households 7 77.8 2,100,510 70.6
Total number of Series A shares 9 100.0 2,975,500 100.0
Series B shares
Number
of owners
shares %
Number of
shares %
1. Households 7,678 97.0 7,009,025 57.7
2. Financial and insurance institutions 4 0.1 8,683 0.1
3. Companies and housing companies 190 2.4 755,229 6.2
4. Non-profit organisations 5 0.1 2,261 0.0
5. Public corporations 0 0.0 0 0.0
6. Nominees and foreign owners 37 0.5 4,357,303 35.9
In joint and clearing accounts 0 0.0 5,592 0.0
Total number of Series B shares 7,914 100.0 12,138,093 100.0
Total number of Series A and Series B shares 7,923 15,113,593
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Series A shares
Number of
owners shares %
Number of
shares %
1–1,000 0 0.0 0 0.0
1,001–10,000 5 55.6 25,000 0.8
10,001–100,000 2 22.2 82,190 2.8
More than 100,001 2 22.2 2,868,310 96.4
Total number of Series A shares 9 100.0 2,975,500 100.0
Series B shares
Number of
owners shares %
Number of
shares %
1–1,000 6,856 86.6 1,569,752 12.9
1,001–10,000 924 11.7 2,714,621 22.4
10,001–100,000 122 1.5 3,132,170 25.8
More than 100,001 2 0.0 4,550,580 37.5
Nominee registered shares 10 0.1 165,378 1.4
Shares in joint and clearing accounts 0 0.0 5,592 0.0
Total number of Series B shares 7,914 100.0 12,138,093 100.0
Total number of Series A and Series B shares 7,923 15,113,593
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Largest registered shareholders 31 December 2023
10 largest owners in terms of the number of shares Series A shares Series B shares Total number of shares %
Biohit Healthcare (Hefei) Co., Ltd. 850,000 4,095,415 4,945,415 32.7
Suovaniemi Osmo Antero 2,018,310 0 2,018,310 13.4
Härkönen Matti 57,200 267,965 325,165 2.2
Interlab Oy 0 130,000 130,000 0.9
Virkkala Juha Jarkko 0 86,517 86,517 0.6
The estate of Suovaniemi Vesa 0 85,353 85,353 0.6
Syrjälä Pekka 0 77,650 77,650 0.5
Jaakkola Sami Juhani 0 76,600 70,600 0.5
Ruusila Ari Tapio 0 70,000 70,000 0.5
Oy Tech Know Ltd 24,990 43,600 68,590 0.5
10 largest owners in terms of the number of votes Series A shares Series B shares Total number of votes %
Suovaniemi Osmo Antero 2,018,310 0 40,366,200 56.3
Biohit Healthcare (Hefei) Co.. Ltd. 850,000 4,095,415 21,095,415 29.4
Härkönen Matti 57,200 267,965 1,411,965 2.0
Oy Tech Know Ltd 24,990 43,600 543,400 0.8
The estate of Luostarinen Reijo 10,000 14,460 214,460 0.3
Interlab Oy 0 130,000 130,000 0.2
Virkkala Juha Jarkko 0 86,517 86,517 0.1
The estate of Suovaniemi Vesa 0 85,353 85,353 0.1
Syrjälä Pekka 0 77,650 77,650 0.1
Jaakkola Sami Juhani 0 76,600 76,600 0.1
Senior management ownership 31 December 2023
On 31 December 2023, the members of the Board of Directors and President & CEO owned a total of 2,868,310 Series A shares and 4,256,748 Series
B shares, either directly or through companies under their control. These correspond to 47.1% of all of the shares in the company and 86.0% of all
of the votes.
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5. FORMULAE FOR CALCULATING KEY INDICATORS
Return on equity, %
profit/loss for the financial period
x 100
shareholders’ equity (average for the year)
Return on investments, %
profit before extraordinary items + interest and other financial expenses
x 100
balance sheet total - interest-free liabilities (average for the year)
Equity ratio, %
shareholders’ equity on the balance sheet
x 100
balance sheet total - advances received
Earnings per share (EUR)
profit/loss for the financial period
average number of ex-rights shares during the period
Shareholders’ equity per share (EUR)
shareholders' equity on the balance sheet
number of shares on the balance sheet date
Dividend per share
dividend distributed for the financial period
number of shares on the balance sheet date
Dividend payout ratio, %
dividend per share
x 100
earnings per share
Effective dividend yield, %
dividend per share
x 100
last transaction rate in the financial period
Price-to-earnings ratio (P/E)
last transaction rate in the financial period
earnings per share
The new instructions issued by the European Securities and Markets
Authority (ESMA) on Alternative Performance Measures (APMs) took
effect for the 2016 financial period. In conjunction with the transition to
an income statement model based on expense types, Biohit will present
APMs to describe the financial development of its business and improve
comparability between different periods. APMs should not be considered
substitutes for the key indicators specified in the IFRS norms for financial
statements. The operational key indicators have been adjusted for certain
measurement items that do not constitute part of ordinary business activi-
ties or that do not affect cash flow during the period but that affect compa-
rability. The items that affect comparability and the APMs used by Biohit Oyj
are defined as follows:
Items that affect comparability:
Certain business transactions that do not constitute part of ordinary business
activities or measurement items that do not affect cash flow but that have a
significant effect on the income statement for the period have been adjusted
for items that affect comparability. These items arise through nonrecurring
transactions such as:
Asset impairments
Asset sales or purchases
Expense entries for benefits in accordance with IFRS 2
In addition, Biohit Oyj presents the following APMs:
EBITDA (EUR) = operating profit + depreciation and impairment
Operative EBITDA (EUR) = operating profit + depreciation,
impairment - items affecting comparability
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PARENT COMPANY’S INCOME STATEMENT (FAS)
€ 1,000 Note 1 Jan - 31 Dec 2023 1 Jan - 31 Dec 2022
Revenue 6.2 9,009 7,811
Change in inventories of finished and unfinished products 68 -1
Other operating income 6.3 830 749
Materials and services 6.4 -2,904 -2,380
Expenses arising from employment benefts 6.5 -3,260 -2,765
Other operating expenses 6.6 -2,157 -1,894
EBITDA 1,586 1,519
Depreciation and amortization 6.7 -90 -142
Operating profit/loss 1,496 1,377
Financial income and expenses 6.9 378 -238
Profit/loss before taxes 1,874 1,138
Withholding taxes 6.10 -208 -204
Profit/loss for the financial period 1,666 935
6. PARENT COMPANY´S FINANCIAL STATEMENT (FAS)
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€ 1,000 Note 31 Dec 2023 31 Dec 2022
Assets
Non-current assets
Intangible assets 6.11 183 18
Tangible assets 6.12 144 154
Investments
Shares in Group companies 6.13 31 31
Other investments 6.13 2 2
Total non-current assets 359 203
Current assets
Inventories 6.14 686 742
Long-term receivables 6.15 272 212
Short-term receivables 6.15 3,664 2,204
Financial securities 6.16 3,775 4,079
Cash at bank and in hand
6.17
1,900 1,409
Total current assets 10,297 8,646
Total Assets 10,656 8,849
€ 1,000 Note 31 Dec 2023 31 Dec 2022
Liabilities and shareholders’ equity
Shareholders’ equity
Share capital 6.18 2,350 2,350
Fair value reserve 6.18 -1,873 -1,701
Invested unrestricted equity found 6.18 4,110 4,042
Retained earnings 6.18 2,370 1,435
Profit/loss for the financial period 6.18 1,666 935
Total shareholders’ equity 8,623 7,062
Liabilities
Long-term liabilities 6.19 - -
Short-term liabilities
6.21 2,032 1,787
Total liabilities 2,032 1,787
Total liabilities and shareholders’ equity 10,656 8,849
PARENT COMPANY’S BALANCE SHEET (FAS)
74BIOHIT Healthcare ANNUAL REPORT 2023
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€ 1,000 Note 2023 2022
Cash flow from operating activities:
Profit/loss before appropriations and taxes
1 874 1 138
Adjustments:
Planned depreciation
90 142
Unrealised exchange rate gains and losses
-2 -2
Other income and expenses unconnected to payment
21 16
Financial income and expenses
-378 238
Change in working capital:
Increase (-)/decrease (+) in short-term interest-free trade receivables
-1 483 -4
Increase (-)/decrease (+) in inventories
56 -194
Increase (+)/decrease (-) in short-term interest-free liabilities
132 291
Realised exchange rate gains and losses
-4 -
Interest paid and payments on other operating financial expenses
-483 -104
Dividends received
- 1
Income and interest received from business activities
515 124
Paid direct taxes
-95 -237
Cash flow from operating activities 242 1,409
Cash flow from investments:
Investments in tangible and intangible assets -246 -55
Investments in other instruments -1,939 -2,900
Revenue from disposal of other investments 2,425 2,334
Granted loans -60 -
Repayments of loans - 100
Cash flow from investments 180 -521
Cash flow from financing activities:
Warrants 68 -
Repayment of long-term loans - -8
Cash flow from financing activities 68 -8
Increase (+)/decrease (-) in cash and cash equivalents 490 881
Cash and cash equivalents at the beginning of the period 1,409 528
Cash and cash equivalents at the end of the period 6.17 1,900 1,409
PARENT COMPANY’S CASH FLOW STATEMENT
75BIOHIT Healthcare ANNUAL REPORT 2023
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NOTES TO PARENT THE COMPANY´S FINANCIAL STATEMENT
6.1 ACCOUNTING PRINCIPLES
When preparing the financial statements in accordance with good
accounting practices, the company’s senior managers are called upon
to make estimates and assumptions that affect the content of the finan-
cial statements. The outcomes may differ from these estimates.
The parent company’s financial statements have been prepared in
accordance with the Finnish Accounting Act.
The financial statements present figures in thousands of euros based
on the original values of business transactions, with the exception of
financial securities, a component of current assets, which are measured
at fair value.
Valuation of property, plant and equipment
Property, plant and equipment are recognised on the balance sheet at
acquisition cost, less received contributions, planned depreciation and
impairments. Planned depreciation is calculated using a straight-line
model based on the useful life of the asset.
The planned depreciation periods are as follows:
Intangible rights 3 -10 years
Other long-term expenses 5 - 10 years
Plant and equipment 3 -10 years
Valuation on inventories
Inventories are presented in accordance with the FIFO principle at
acquisition cost or replacement cost or likely sale price, whichever is
lower. The acquisition cost of inventories includes variable costs as
well as the allotted proportion of the fixed expenses of purchasing and
manufacturing.
Valuation of financial securities
Financial securities, which belong to current assets, are measured at
fair value in accordance with section 5.2a§ of the Finnish Accounting
Act. The fair value of investments is determined based on price quo-
tations on active markets, i.e., the buy quotation on the closing date of
the financial period. Unrealised profits and losses due to changes in the
fair value of money market investments are recognised in the income
statement under financial income and expenses in accordance with the
Group’s updated accounting policies.
Investments recognised via the fair value reserve consist solely of the
equity investment in the unlisted shares in Genetic Analysis AS. Genetic
Analysis AS was listed on the Spotlight Stock Market in Stockholm on 1
October 2021. Despite being traded in Sweden, the Genetic Analysis AS
shares are listed in Norwegian krone. The valuation is consistent with
the accounting principles of the Group.
76BIOHIT Healthcare ANNUAL REPORT 2023
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6.2 REVENUE BY BUSINESS SECTOR
€ 1,000 2023 2022
Diagnostics 9,009 7,811
Total 9,009 7,811
REVENUE BY MARKET AREA
€ 1,000 2023 2022
Finland 211 235
Europe, other 1,637 1,453
North and South America 320 271
Asia 4,565 4,731
Other countries 2,276 1,121
Total 9,009 7,811
6.3 OTHER OPERATING INCOME
€ 1,000 2023 2022
From Group companies 553 455
Grants 277 294
Other 0 -
Total 830 749
Research and development expenditure
Research expenses are recognised as annual expenses in the year in
which they were incurred.
Principle for revenue recognition
When calculating net sales, indirect sales taxes and discounts are
deducted from sales revenues. Sales of work performances are recognised
when they are handed over.
Maintenance and repairs
Maintenance and repair expenses are recognised as expenses for the
financial period.
Pensions
The company’s statutory pension cover and any applicable additional
benefits is insured by a pension insurance company. Pension expenses
are recognised on the basis of work performed by employees during
working hours.
Deferred taxes
No deferred taxes have been recognised on the balance sheet. In
accordance with general guidelines issued by the Accounting Board
on 12 September 2006, the amounts of deferred taxes that must be
entered into the balance sheet are presented in the notes, along with
the amounts of tax liabilities and assets that should not be entered into
the balance sheet because they are unlikely to be realised.
Items denominated in foreign currencies
Receivables and liabilities in foreign currencies have been translated
into euros at the exchange rate quoted by the European Central Bank on
the balance sheet date. Translation differences have been recognised
through profit and loss.
77BIOHIT Healthcare ANNUAL REPORT 2023
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6.5 PERSONNEL EXPENSES AND NUMBER OF PERSONNEL
€ 1,000 2023 2022
Salaries 2,745 2,339
Pension expenses 456 380
Other personnel expenses 58 46
Total personnel expenses 3,260 2,765
In the financial period, the parent company employed an average of
2023 2022
Office personnel 35 36
Average number of personnel 35 36
Number of personnel at the end of
the financial period
37 34
6.6 OTHER OPERATING EXPENSES
€ 1,000 2023 2022
Travel expenses and other
personnel expenses 205 150
Rents and maintenance expenses 372 286
Sales and marketing expenses 292 246
Other external services 903 693
Change in value of trade receivables 18 16
Other operating expenses 367 502
Total 2,157 1,894
6.7 DEPRECIATION AND IMPAIRMENT
€ 1,000 2023 2022
Intangible assets 13 35
Plant and equipment 76 107
Total 90 142
6.8 AUDITORS’ FEES
€ 1,000 2023 2022
Companies belonging to the
PricewaterhouseCoopers chain
Auditors' fees 70 70
Other services 3 -
Total fees paid to the auditor 73 70
6.4 MATERIALS AND SERVICES
€ 1,000 2023 2022
Purchases during the financial period 2,780 2,576
Change in inventories 124 -196
Total materials and supplies 2,904 2,380
Total materials and services 2,904 2,380
78BIOHIT Healthcare ANNUAL REPORT 2023
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6.9 FINANCIAL INCOME AND EXPENSES
€ 1,000 2023 2022
Dividend income
From others 1 1
Total dividend income 1 1
Other interest and financial income
From Group companies 4 5
From others 502 71
Other interest and financial income 506 76
Total financial income 507 77
Interest expenses and other financial expenses
To Group companies - -
To others -128 -315
Total financial expenses -128 -315
Total financial income and expenses 378 -238
Financial income and expenses include foreign exchange gains/losses (net) 4 -29
6.10 INCOME TAXES
€ 1,000 2023 2022
Withholding tax -208 -204
Total -208 -204
The items above operating profit include foreign exchange losses/gains (net) or EUR 27 thousand (EUR 20 thousand)
79BIOHIT Healthcare ANNUAL REPORT 2023
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6.11 INTANGIBLE ASSETS
2023
€ 1,000
Intangible
rights Total
Acquisition cost at the beginning of the financial period 7,952 7,952
Decreases from previous years -7,942 -7,942
Increases 178 178
Acquisition cost at the end of the financial period 189 189
Accumulated depreciation and impairment in the financial period -7,934 -7,934
Accumulated depreciation of decreases 7,942 7,942
Depreciation and impairment in the financial period -13 -13
Accumultd dprcition t th nd of th finncil priod -6 -6
Book value at the beginning of the financial period 18 18
Book value at the end of the financial period 183 183
2022
€ 1,000
Intangible
rights Total
Acquisition cost at the beginning of the financial period 7,942 7,942
Increases 11 11
Acquisition cost at the end of the financial period 7,952 7,952
Accumulated depreciation and impairment in the financial period -7,899 -7,899
Depreciation and impairment in the financial period -35 -35
Accumulated depreciation at the end of the financial period -7,934 -7,934
Book value at the beginning of the financial period 42 42
Book value at the end of the financial period 18 18
80BIOHIT Healthcare ANNUAL REPORT 2023
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6.12 TANGIBLE ASSETS
2023
€ 1,000
Plant and
equipment Total
Acquisition cost at the beginning ofthe financial period 1,641 1,641
Decreases from previous years -470 -470
Increases 67 67
Acquisition cost at the end of the financial period 1,239 1,239
Accumulated depreciation and impairment in the financial period -1,488 -1,488
Accumulated depreciation of decreases 470 470
Depreciation in the financial period
-76 -76
Accumulated depreciation at the end of the financial period -1,094 -1,094
Book value at the beginning of the financial period 154 154
Book value at the end of the financial period 144 144
2022
€ 1,000
Plant and
equipment Total
Acquisition cost at the beginning of the financial period 1,602 1,602
Increases 39 39
Acquisition cost at the end of the financial period 1,641 1,641
Accumulated depreciation and impairment in the financial period -1,381 -1,381
Depreciation in the financial period
-107 -107
Accumulated depreciation at the end of the financial period -1,488 -1,488
Book value at the beginning of the financial period 221 221
Book value at the end of the financial period 154 154
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6.13 INVESTMENTS
Shares 2023
€ 1,000
Group
companies Others Total
Book value at the beginning of the financial period 31 2 32
Book value at the end of the financial period 31 2 32
Shares 2022
€ 1,000
Group
companies
Others Total
Book value at the beginning of the financial period 31 2 32
Book value at the end of the financial period 31 2 32
6.14 INVENTORIES
€ 1,000 2023 2022
Materials and supplies 433 533
Work in progress 5 13
Finished products/goods 248 196
Total inventories 686 742
82BIOHIT Healthcare ANNUAL REPORT 2023
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6.15 RECEIVABLES
€ 1,000 2023 2022
Long-term receivables
Receivables from Group companies
Loan receivables 155 155
Receivables from others
Loan receivables 117 57
Total non-current receivables 272 212
Short-term receivables
Receivables from Group companies
Trade receivables 338 237
Loan receivables - -
Accrued income 4 2
Receivables from others
Trade receivables 2,904 1,590
Other receivables 116 178
Accrued income 302 197
Total current receivables 3,664 2,204
83BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
6.16 FINANCIAL SECURITIES
Assets measured at fair value
€ 1,000 2023 Level 1 Level 2
Traded securities and investment to Genetic Analysis AS * 3,775 863 2,912
* Genetic Analysis AS 108 thousand euros on level 1
Assets measured at fair value
€ 1,000 2022 Level 1 Level 2
Traded securities and investment to Genetic Analysis AS * 4,079 1,654 2,425
* Genetic Analysis AS 280 thousand euros on level 1
Financial securities consist of fixed-income investments, corporate loans and money market investments.
The hierarchy levels are described in the Group’s note 2.17.
6.17 CASH AND CASH EQUIVALENTS
€ 1,000 2023 2022
Cash in hand and at bank 1,900 1,409
84BIOHIT Healthcare ANNUAL REPORT 2023
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6.18 SHAREHOLDERS’ EQUITY
€ 1,000 2023 2022
Share capital 1 January 2,350 2,350
Share capital 31 December 2,350 2,350
Fair value reserve 1 January -1,701 -1,092
Increases - -
Decreases -173 -609
Fair value reserve 31 December -1,873 -1,701
Invested unrestricted equity fund 1 January 4,042 4,042
Increases 68 -
Invested unrestricted equity fund 31 December 4,110 4,042
Retained earnings 1 January 2,370 1,435
Retained earnings 31 December 2,370 1,435
Reported profit/loss for the financial period 1,666 935
Total shareholders' equity 8,623 7,062
Shares and voting rights
Biohit’s shares are divided into Series A and Series B shares. The series from each other in that each Series A share entitles its holder to twenty
(20) votes at general meetings, while each Series B share carries one (1) vote. The dividend The dividend paid for Series B shares is, however, two
(2) per cent of the nominal value higher than that paid for Series A shares. When this regulation is applied, the nominal value of the shares is taken
to be EUR 0.17, which was the nominal value of the company’s shares when it decided to discontinue using nominal values for shares.
85BIOHIT Healthcare ANNUAL REPORT 2023
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Calculation of distributable equity 31 December
€ 1,000 2023 2022
Retained earnings 2,370 1,435
Profit/loss for the financial period 1,666 935
Invested unrestricted equity fund 4,110 4,042
Fair value reserve -1,873 -1,701
Capitalized development expenditure -166 -
Total 6,108 4,712
Parent company’s share capital structure
2023
shares
%
of shares
%
of votes
2022
shares
Series A shares (20 votes per share) 2,975,500 19.7 83.1 2,975,500
Series B shares (1 vote per share) 12,138,093 80.3 16.9 12,070,093
Total 15,113,593 100.0 100.0 15,045,593
6.19 LONG-TERM LIABILITIES
€ 1,000 2023 2022
Loans from Group companies - -
Loans from financial institutions - -
From others
- -
Total - -
The company’s share capital is EUR 2,350,350.81. The company does not hold any of its own shares. Based on a resolution of the AGM held on
16 September 2020, the Board of the company is authorised to decide on the issue of shares and to issue the special rights referred to in Chapter 10
of the Limited Liability Companies Act so that the maximum number of new Series B shares to be issued pursuant to the special rights is 3,000,000,
which corresponds to approximately 24.9% of all of the company’s Series B shares. In 2021 and in 2022, the company issued shares options
for 760,000 new shares.
86BIOHIT Healthcare ANNUAL REPORT 2023
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6.21 SHORT-TERM LIABILITIES
€ 1,000 2023 2022
Loans from financial institutions.
current proportion - -
Advances received 4 104
Trade payables 408 506
Accruals and deferred income 1,140 834
Other liabilities 481 343
Total short-term liabilities 2,032 1,787
6.22 PLEDGES, CONTINGENT LIABILITIES AND OTHER LIABILITIES
€ 1,000 2023 2022
Debts for which mortgages have
been pledged
The company has not pledged
any collateral.
Leasing commitments
Payable in the next financial period 61 62
Payable later 58 120
Total 119 182
Rental commitments
Payable in the next financial period 186 181
Payable later
745 724
Total 932 905
Other contingent liabilities
Guarantees 4 4
6.20 DEFERRED TAX ASSETS AND LIABILITIES
Deferred tax liabilities
There are no deferred tax liabilities.
Deferred tax assets
The tax-deductible losses have not been noted in the balance sheet.
There is a total of EUR 19.2 million loss in Finland.
(Year 2013-2021: EUR 19.2 million)
The significant items of accruals and deferred income are salary-
related deferred items valued at EUR 916 thousand
(EUR 666 thousand).
Leasing and rental fees mainly consist of fixed-term leasing and rental
agreements lasting longer than one year.
Contingent liabilities on behalf of Group companies
The company has no contingent liabilities on behalf of Group companies.
87BIOHIT Healthcare ANNUAL REPORT 2023
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7. BOARD OF DIRECTOR’S PROPOSAL REGARDING
THE DISTRIBUTION OF PROFITS
On 31 December 2023 the parent company’s distributable assets (unrestricted equity) amounted to EUR 6,107,520.93 , including the profit for the
financial period of EUR 1,666,264.33. The Board of Directors proposes to the Annual General Meeting that the company distribute no divided for the
last financial year and that the profit for the financial year be transferred to retained earnings.
Helsinki, 13 February 2024
Vesa Silaskivi
Chairman of the Board of Directors
Auditor’s statement
A statement has been issued today on the completed audit.
Helsinki, 13 February 2024
PricewaterhouseCoopers Oy
Firm of auditors
Liu Feng
Member of the Board of Directors
Kalle Härkönen
Member of the Board of Directors
Lea Paloheimo
Member of the Board of Directors
Osmo Suovaniemi
Member of the Board of Directors
Jussi Hahtela
President & CEO
Tiina Puukkoniemi
Authorised Public Accountant
88BIOHIT Healthcare ANNUAL REPORT 2023
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8. AUDITOR’S REPORT
Opinion
In our opinion
the consolidated financial statements give a true and fair view of
the group’s financial position, financial performance and cash flows
in accordance with IFRS Accounting Standards as adopted by the EU
the financial statements give a true and fair view of the parent
company’s financial performance and financial position in accor-
dance with the laws and regulations governing the preparation
of financial statements in Finland and comply with statutory
requirements.
Our opinion is consistent with the additional report to the Board
of Directors.
What we have audited
We have audited the financial statements of Biohit Oyj (business identity
code 0703582-0) for the year ended 31 December 2023. The financial
statements comprise:
• the consolidated balance sheet, consolidated comprehensive income
statement, statement of changes in consolidated shareholders’
equity, consolidated cash flow statement and notes, which include
material accounting policy information and other explanatory
information
• the parent company’s balance sheet, income statement,
cash flow statement and notes.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in
Finland. Our responsibilities under good auditing practice are further
described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Independence
We are independent of the parent company and of the group companies in
accordance with the ethical requirements that are applicable in Finland
and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
To the best of our knowledge and belief, the non-audit services that
we have provided to the parent company and group companies are in
accordance with the applicable law and regulations in Finland and we
have not provided non-audit services that are prohibited under Article
5(1) of Regulation (EU) No 537/2014. The non-audit services that we
have provided are disclosed in note 2.9 to the Financial Statements.
Report on the Audit of the Financial Statements
89BIOHIT Healthcare ANNUAL REPORT 2023
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OUR AUDIT APPROACH
Overview
Materiality
Overall group materiality: € 129 thousand, which represents
1% of total assets
Audit scope
In addition to the parent company, our group scope consists
of two foreign subsidiaries.
Key audit matter
Cut-off of Revenue recognition
Royalty income from License included in Distribution Agreement
(Biohit HealthCare (Hefei) Co. Ltd)
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in the financial statements. In particular,
we considered where management made subjective judgements; for example, in respect of significant accounting estimates that involved making
assumptions and considering future events that are inherently uncertain.
MATERIALITY
The scope of our audit was influenced by our application of materiality. An audit is designed to obtain reasonable assurance whether the financial
statements are free from material misstatement. Misstatements may arise due to fraud or error. They are considered material if individually or in
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including the overall group materiality for the
consolidated financial statements as set out in the table below. These, together with qualitative considerations, helped us to determine the scope
of our audit and the nature, timing and extent of our audit procedures and to evaluate the effect of misstatements on the financial statements as
a whole.
Materiality
Audit Scope
Key audit matters
90BIOHIT Healthcare ANNUAL REPORT 2023
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Overall group materiality € 129 thousand (€ 110 thousand in 2022)
How we determined it 1% of total assets
Rationale for the materiality benchmark applied Based on our assessment the total assets provide a more solid base
for determining the materiality than the commonly used income
statement-based benchmarks.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of
the group, the accounting processes and controls, and the industry in
which the group operates. Biohit Oyj is a Finnish biotechnology company
operating on global markets, which has foreign subsidiaries in Great
Britain and Italy.
We determined the type of work that needed to be performed at group
companies. This work was performed by the group audit team. Audit
was performed for the parent company and for Biohit Healthcare Ltd,
UK. For the Italian subsidiary, we performed selected audit procedures
on specified account balances. In addition, we performed audit proce-
dures on the group level.
By performing the procedures above, we have obtained sufficient and
appropriate evidence regarding the financial information of the Group
as a whole to provide a basis for our opinion on the consolidated financial
statements.
KEY AUDIT MATTERS
Key audit matters are those matters that, in our professional judgment,
were of most significance in our audit of the financial statements of
the current period. These matters were addressed in the context of our
audit of the financial statements as a whole, and in forming our opinion
thereon, and we do not provide a separate opinion on these matters.
As in all of our audits, we also addressed the risk of management over-
ride of internal controls, including among other matters consideration
of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
91BIOHIT Healthcare ANNUAL REPORT 2023
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KEY AUDIT MATTER IN THE AUDIT OF THE GROUP
Cut-off of Revenue recognition
Refer to the financial statements accounting principles and
the financial statements note 2.3 Net sales and segment
information
Biohit Oyj (“Biohit”) is a Finnish Biotechnology company
operating on global markets. Biohit’s product portfolio
consists of diagnostic tests, analysis systems, products that
bind carcinogen acetaldehyde in monoclonal antibodies and
service laboratory operations. The Group’s revenue is pre-
dominately generated from distribution agreements signed
with several distributors who then sell the products further
to healthcare operators.
Revenue from distribution agreement-based product sales
is recognized at a point of time when the control has trans-
ferred to a distributor in accordance with delivery terms.
We determined cut-off of revenue recognition as an audit
focus area, as there is a risk that revenue in the financial
statements is recognized in an incorrect period due to either
errors or fraud.
HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
We gained an understanding of the revenue recognition
process; and we performed substantive audit procedures
to ensure revenue is recorded in the correct period. Our
substantive audit procedures included:
testing a sample of selected distribution agreements
to ensure the correctness of revenue recognition
criteria applied
testing revenue transaction that occurred close to
the year end
testing certain revenue related balances recognised in
the balance sheet
testing a sample of revenue transactions occurred
during the year
testing the basis for revenue recognition cut-off
for selected manual journal entries posted in
revenue accounts
• auditing the notes and accounting principles regarding
revenue recognition
92BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
Royalty income from License included in Distribution
Agreement (Biohit HealthCare (Hefei) Co. Ltd)
Refer to the financial statements accounting principles and
the financial statements note 2.3, Net sales and segment
information and note 2.27 Related party transactions
Biohit Oyj’s shareholder Biohit HealthCare (Hefei) Co. Ltd
(”Hefei”) acts as the exclusive distributor of Biohit’s certain
GastroPanel products in China. The parties have in February
2022 agreed on multiannual distribution agreement for
certain GastroPanel products in China.
As disclosed in note 2.27 “Related parties”, royalty income
from license to Hefei, 2.2 million euros (2.2 million euros
in 2022) forms a significant portion of company’s turnover.
This is based on the distribution agreement, its IFRS-
accounting interpretation, cash flow probabilities and
timing (note 2.3).
As disclosed in note 2.27, Hefei has pledged 1.5 million of
its Biohit class B (value approximately 2.8 million euros on
December 31, 2023) shares to Biohit as a security for its
payment obligations under the new distribution agreement.
Royalty income from License included significant manage-
ment estimation.
We determined that Royalty income from License is a key
audit matter due to the significance of the transaction and
due to the estimation uncertainty relating to it.
HOW OUR AUDIT ADDRESSED THE KEY AUDIT MATTER
We obtained understanding of the impact of the distribution
agreement to royalty income from license and related
balance sheet items. Our substantive audit procedures
included following procedures:
we read the Distribution agreement signed 8 February
2022 and obtained evidence that Hefei pledged 1.5 million
of its Biohit class B shares (value approximately
2.8 million euros at 31.12.2023) to Biohit, as a security
for its payment obligations
we made an accounting analysis of the royalty income
from license based on IFRS 15
we reconciled the management calculation of estimated
royalty income based on distribution agreement to the
accounting records and financial statements and
ensured those were correctly accounted for based
on estimated amount
we audited royalty payments by Hefei to Biohit in 2023
we assessed the recoverability of royalty income in
terms of cash flow probabilities, cash flow timing,
the pledge, and payments received
• we audited balance sheet items relating to royalty
income from license
we audited the notes and accounting principles
regarding royalty income from license
93BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
Responsibilities of the Board of Directors and the Managing
Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for
the preparation of consolidated financial statements that give a true
and fair view in accordance with IFRS Accounting Standards as adopted
by the EU, and of financial statements that give a true and fair view in
accordance with the laws and regulations governing the preparation
of financial statements in Finland and comply with statutory require-
ments. The Board of Directors and the Managing Director are also respon-
sible for such internal control as they determine is necessary to enable
the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the
Managing Director are responsible for assessing the parent company’s
and the group’s ability to continue as a going concern, disclosing, as
applicable, matters relating to going concern and using the going concern
basis of accounting. The financial statements are prepared using the
going concern basis of accounting unless there is an intention to
liquidate the parent company or the group or to cease operations, or
there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the
financial statements as a whole are free from material misstatement,
whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance,
but is not a guarantee that an audit conducted in accordance with good
auditing practice will always detect a material misstatement when it
exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the
basis of these financial statements.
As part of an audit in accordance with good auditing practice, we
exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk
of not detecting a material misstatement resulting from fraud is higher
than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the over ride of internal
control.
The above-mentioned Key audit matter “Royalty income from License included in Distribution Agreement (Biohit HealthCare (Hefei) Co. Ltd)“ is
also a key audit matter with respect to our audit of the parent company financial statements. Our audit procedures were aligned with the ones
presented above
There are no significant risks of material misstatement referred to in Article 10(2c) of Regulation (EU) No 537/2014 with respect to the consolidated
financial statements or the parent company financial statements.
94BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
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 Director’s use of the going concern basis of accounting and
based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt
on the parent company’s or the group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related dis-
closures in the financial statements or, if such disclosures are inade-
quate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However,
future events or conditions may cause the parent company or the
group to cease to continue as a going concern.
Evaluate the overall presentation, structure, and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events so that the financial statements give a true and fair view.
Obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business activities within the group to
express an opinion on the consolidated financial statements. We are
responsible for the direction, supervision and performance of the
group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among
other matters, the planned scope and timing of the audit and significant
audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that
we have complied with relevant ethical requirements regarding inde-
pendence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence,
and where applicable, related safeguards.
From the matters communicated with those charged with governance,
we determine those matters that were of most significance in the audit
of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report
unless law or regulation precludes public disclosure about the matter
or when, in extremely rare circumstances, we determine that a matter
should not be communicated in our report because the adverse conse-
quences of doing so would reasonably be expected to outweigh the public
interest benefits of such communication.
95BIOHIT Healthcare ANNUAL REPORT 2023
BIOHIT IN BRIEF CEO´S REVIEW STRATEGY CORPORATE GOVERNANCE FINANCIAL STATEMENT
OTHER REPORTING REQUIREMENTS
Appointment
We were first appointed as auditors by the annual general meeting on
14 April 2014. Our appointment represents a total period of uninterrupted
engagement of 10 years.
Other Information
The Board of Directors and the Managing Director are responsible for
the other information. The other information comprises the report of the
Board of Directors and the information included in the Annual Report,
but does not include the financial statements and our auditor’s report
thereon. We have obtained the report of the Board of Directors prior to
the date of this auditor’s report and the Annual Report is expected to be
made available to us after that date.
Our opinion on the financial statements does not cover the other
information.
In connection with our audit of the financial statements, our responsi-
bility is to read the other information identified above and, in doing so,
consider whether the other information is materially inconsistent with
the financial statements or our knowledge obtained in the audit, or other-
wise appears to be materially misstated. With respect to the report
of the Board of Directors, our responsibility also includes considering
whether the report of the Board of Directors has been prepared in
accordance with the applicable laws and regulations.
In our opinion
the information in the report of the Board of Directors is consistent
with the information in the financial statements
the report of the Board of Directors has been prepared in
accordance with the applicable laws and regulations.
If, based on the work we have performed on the other information
that we obtained prior to the date of this auditor’s report, we conclude
that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Helsinki 13 February 2024
PricewaterhouseCoopers Oy
Authorised Public Accountants
Tiina Puukkoniemi
Authorised Public Accountant (KHT)
www.biohithealthcare.com
Biohit Oyj
Laippatie 1
00880 Helsinki
Finland
Tel. +358 9 773 861
info@biohit.fi