SATO ANNUAL REPORT
2022
sato.
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CONTENTS
FINANCIAL STATEMENTS ������������������������������������������������������������������������� 19
 ������������������������������������������������������ 20
 ��������������������������������������� 56
 �������������������������������������������������������������������������������������������� 66

 ������������������������������������������� 69
 �������������������������������������������������������������������������������������� 70
 ������������������������������������������������������������������������ 71
GOVERNANCE ���������������������������������������������������������������������������������������� 73
 ���������������������������������������������������������������������������������������� 74
 ������������������������������������������������������������������������� 76
 ��������������������������������������������������������������� 77
 ������������������������������������������������������������������������������ 82
���������������������������������������������������������������������������������������� 83
 ������������������������������������������������������������������� 85
SATO 2022 ��������������������������������������������������������������������������������������������������3
 ���������������������������������������������������������������������������������������������������3
 ����������������������������������������������������������������������������������������4
 ���������������������������������������������������������������������������������������������������5
REPORT OF THE BOARD OF DIRECTORS �����������������������������������������������6
 ���������������������������������������������������������������������������������7
 �����������������������������������������������������������������������������������������������������������8
 ������������������������������������������������������������������������������������������ 8
 ���������������������������������������������������������������������� 8
 ��������������������������������������������������������������������������������������������� 11
 ��������������������������������������������������������������������������������������������11
 ���������������������������������������������������������������������������������� 14
 ������������������������������������������������������������������������������������������������� 15
 ������������������������������������������������������� 15
 ����������������������������������������������������������������������������������� 16
 ���������������������������������������������������������������������� 16
 ������������������������������������������������������������������������������������������17
 �������������������������������������������������������������������������������������17
 �������������������������������������������������������������������������������������������������������������17
 ��������������������������������������������������������������������������������������������������������17
 �����������������������������������������������������������17
 ������������������������������������������������������������ 17
 ������������������������������������������� 18
��������������������������������������������������������������������������������������������������������� 18

 ��������������������������������������������������������������������������� 18
 ������������������������������������������������������������������������������������������������� 18
SATO 2022 | Report of the Board of Directors GovernanceFinancial statements
||

SATO IN BRIEF
SATO is an expert in sustainable rental housing and one of
Finland’s largest rental housing providers. We own around 25,000
rental apartments in the Helsinki metropolitan area, Tampere and
Turku.
-




-









Our strategy
residents at the end of the year
45,000
SATOhomes
25,000
SATO employees at
the end of the year
326

CUSTOMER
EXPERIENCE
#1


SUSTAINABILITY
#2


PERSONNEL
#3
VALUES: HUMAN TO HUMAN, BE BOLD – AIM HIGH, JOY OF SUCCEEDING TOGETHER
| Report of the Board of Directors GovernanceFinancial statements
||

SATO 2022
SATO 2022
2018 2019 2020 2021 2022
350
300
250
200
150
100
50
0
Net sales, EUR million
291.2
Työnumero 1 VSK
2018 2019 2020 2021 2022
800
700
600
500
400
300
200
100
0
Operating prot, EUR million
198.9
Työnumero 2 VSK
800
700
600
500
400
300
200
100
0
2018 2019 2020 2021 2022
Prot before taxes, EUR million
151.9
Työnumero 3 VSK
During the reporting year,
we completed 191 rental apart-
ments and 52 FlexHomes.
FINANCIAL KEY FIGURES
95�2%
The economic occupancy rate
improved
The economic occupancy rate improved compared to
the previous year. Our tenant turnover for the reporting
year fell and our customer satisfaction improved.
40�7%
Our solvency ratio improved
The Group’s solvency ratio at the end
of the year was 40.7 %.
2,480�9
EUR million
Shareholder’s equity strengthened
| Report of the Board of Directors GovernanceFinancial statements
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
SATO 2022
CEO’S REVIEW
The reporting year was exceptional. The mood at the start of the
year was expectant in terms of the ending of the COVID-19 pan-
demic of the past two years and the lifting of the restrictions, and
the year began with strong economic growth. However, Russia’s
attack on Ukraine in February, created a new kind of uncertainty

The war’s impacts could been seen in our operating environment
as economic uncertainty, rising energy prices and interest

SATO’s business operations during the reporting year. We have
approximately 25,000 homes in the Helsinki metropolitan area,
Tampere and Turku. In addition, SATO has 522 apartments in
St. Petersburg, which make up approximately one per cent of
the value of our investment assets. Since the start of the war in
Ukraine, we have been reviewing opportunities to withdraw from
the Russian business operations and we are searching actively for
a solution.
Despite the economic uncertainty, there is demand for rental
apartments in Finland, and the urbanisation trend continues.
The rise in mortgage interest rates coupled with the increase in
energy and other costs had a partial impact on the growth in
rental apartment demand. Now, also some of the people looking
for an owner-occupied apartment may consider renting an
apartment.
The competition between rental housing providers is tough
and a large number of new rental apartments has been built
especially in the Helsinki metropolitan area in recent years. The
historically high rate of housing construction is slowing. There are

of new apartments will be completed in 2023. This will maintain
the tight competition for good tenants and keep rent increases
moderate, despite the pressure for rent to increase in the future
due to the rising cost level.
During the reporting year, our investments in rental apartments
were EUR 190.5 million (167.1). In 2022, we completed 191 rental
apartments and 52 FlexHomes. On 31 December 2022, a total of
1,418 apartments were under construction. During the second half
of the reporting year, we made a decision to refrain from launching
any new construction projects. Our decision was based on the
dramatic rise in the cost level for construction and property mainte-

remained moderate due to the market situation.

new non-subsidised rental apartment construction projects in
Rykmentinpuisto in Tuusula, Skanssi in Turku and Finnoo in Espoo.

-

In April of the reporting year, we sold 2,009 rental apartments
mainly in the Lahti, Jyväskylä and Oulu areas to the Swedish
investment company Heimstaden. The sale was consistent with
our strategy of focusing our apartment investments on the Helsinki
metropolitan area and its commuting area along the main railway,
and in Tampere and Turku and their surrounding municipalities.
We continued to develop the customer experience at SATO during
the year. The economic occupancy rate improved compared to
the previous year and was 95.2% (94.9). Our tenant turnover for
the reporting year fell and our customer satisfaction improved. We

to the customer experience and focused especially on building a har
-
monised and seamless service experience. In addition to developing
digital services, we invested in our presence near to the customers.
During the reporting year, we continued our sustainability work

our second ever. The themes of the sustainability programme
are sustainable housing, thriving communities and sustainable
-
ing. In our own sustainability goals, we have committed to the UN
Sustainable Development Goals (SDG).


service and products and tips for sustainable living. A sustainability
panel consisting of outside experts in sustainable production
and consumption selected six of SATO’s buildings: Lupajantie
2 in Mellunkylä, Helsinki; Jokiniityntie 28 in Kirkkonummi;
Lincolninaukio 4 in Keimola, Vantaa; Kotkatie 6 in Espoo and
Jokiniementie 46 and 48 in Veräjämäki, Helsinki to be featured
on the website as more sustainable options. We also participated
in Rakli’s Green Homes activities (which started up in 2022), with
altogether 1,100 Green Homes which had either geothermal heat
or consumption-based water invoicing or both.
During the reporting year, we focused on supporting the well-being
of SATO personnel and encouraged SATO employees to learn and
grow continually. Our goal is for each person to be able to come up
with ideas in their work and develop solutions for future rental hous-
ing. We want for everyone at SATO to have the courage to reinvent
themselves and the ability to succeed. During the year, the entire
organisation adopted the objectives and key results (OKR) model
with which we are working towards better setting of objectives,
closer monitoring of results and openness. The constantly increasing
complexity in the operating environment challenges both experts’
and supervisors’ competence and thinking. In order to provide
support to this end, we launched supervisor training in the coaching
management style during the reporting year.
I wish to thank all SATO employees for their committed and excel-
lent work. I also wish to thank our partners and the residents of our
SATOhomes for their good co-operation during the past year.
Antti Aarnio
| Report of the Board of Directors GovernanceFinancial statements
||

SATO 2022

REPORT OF THE
BOARD OF DIRECTORS
The change in the population structure
and development in the prices of owner-
occupied apartments create a stable
foundation for demand for rental housing
especially in the Helsinki metropolitan
area and in Tampere and Turku.
REPORT OF THE BOARD OF DIRECTORS
 
Report of the Board of Directors
Operating environment
-
-

















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-

REPORT OF THE BOARD OF DIRECTORS
1 JANUARY–31 DECEMBER 2022
Dense urban living near
services and along good
public transport con-
nections is becoming
increasingly popular in
Finland.
SATO 2022 | GovernanceFinancial statements
||

Report of the Board of Directors

-


-

-








-

Net sales and prot










Financial position and nancing












-




-



Net sales
291�2
EUR million
47�8%
Equity ratio
5,184�7
EUR million
Balance sheet
Strategy
Customer experience, sustainability and sustainable housing, and
SATO employees lie at the core of SATO’s strategy. We want to
be closely involved in our customers’ daily lives in order to serve
them in the best possible way. We build homes that stand the
test of time and we take care of them in line with the life-cycle
principles. We enable sustainable housing for our residents and
encourage them to make sustainable choices in their daily lives.
We want all SATO employee to be able to contribute ideas and
participate in developing future housing solutions.
SATO is a housing investment company whose basic product
is a rental apartment in an apartment building. We focus our
investments on growth centres: the Helsinki metropolitan area,
Tampere and Turku, because in these areas demand for apart-
ments is the highest and the increase in value is expected to be
stable over the longer term. Our operations are geared towards
protable growth.
During the reporting year, our strategy implementation focused
especially on developing the customer experience, improving
customer satisfaction and retention, and ensuring an excellent
moving-in experience. We prepared a sustainability programme
Strategic goals
Realisation in 2022
Continuously improving NPS during living Fulfilled
• 
• 
Maintaining credit rating Fulfilled
• 



Return on equity target Unfulfilled
• 
SATO 2022 | GovernanceFinancial statements
||

Report of the Board of Directors
150
125
100
75
50
25
0
2018 2019 2020 2021 2022
141.3
Cash earnings, EUR million
Työnumero 4 VSK
50
40
30
20
10
0
2018 2019 2020 2021 2022
Equity ratio, %
Target
> 40%
47.8
Työnumero 8 VSK
2018 2019 2020 2021 2022
60
50
40
30
20
10
0
Solvency ratio, %
Target
< 50%
40.7
Työnumero 9 VSK
2018 2019 2020 2021 2022
Balance sheet, EUR million
6,000
5,000
4,000
3,000
2,000
1,000
0
5,184.7
Työnumero 5 VSK
2018 2019 2020 2021 2022
Shareholders’ equity, EUR million
2,500
2,000
1,500
1,000
500
0
2,480.9
Työnumero 6 VSK
20
15
10
5
0
2018 2019 2020 2021 2022
Secured solvency ratio, %
5.0
Työnumero 7 VSK
SATO 2022 | GovernanceFinancial statements
||

Report of the Board of Directors
90
80
70
60
50
40
30
20
10
0
2019 2020 2021 2022
Unencumbered assets, %
Target
≥ 60
8 9.2
Työnumero 10 VSK
10
8
6
4
2
0
2018 2019 2020 2021 2022
Interest coverage ratio
Target
> 1.8 x
8.2
Työnumero 11 VSK
Debt portfolio, Nominal values 31 Dec 2022,
total EUR 2,150.8 million
Commercial papers 15.0
Corporate bonds 1,074.0
Bank loans 907.4
Interest subsidised 123.7
State subsidised (ARAVA) 30.7
88.1% of loans without
asset-based securities
88.1%
Työnumero 12 VSK
2023 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 2036 2037
500
400
300
200
100
0
›
Maturity prole of long term debt, EUR million
Corporate bonds
Other loans
Työnumero 13 VSK
SATO 2022 | GovernanceFinancial statements
||

Report of the Board of Directors
Group structure







Housing business





















-


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
















2










SATO 2022 | GovernanceFinancial statements
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
Report of the Board of Directors
Key financial indicators Target 2022 2021
  3�3 4�0
  2�4 3�0
 - 2�3 1�7
 > 60 72�7 69� 2


Rental activities in Finland 2022 2021
 17�84 17�46
 95�2 94�9
 28�4 31�2
SATOhomes 2022 2021
 683 744
  
 54�0 54�0
  
 200�4 210�6
Plot reserves 2022 2021
 40�8 43�4
 18�4 15�5
  
 13�5 42�0
New production 2022 2021
 243 306
 191 235
 0 71
 52 0
  
  
 0 0
 0 52
 48 66
 48 66
 0 0
SATOhomes in St. Petersburg 2022 2021
 13 13
 522 525
 69�0 69�3
 60�4 128�1
 2�9 2�9
Repairs 2022 2021
 92�4 93�6
 71�7 75�9
 0�0 0�0
SATO 2022 | GovernanceFinancial statements
||

Report of the Board of Directors
40
30
20
10
0
2019 2020 2021 2022
External tenant turnover, %*
28.4
31.2
* Housing business in Finland
Työnumero 14 VSK
100
98
96
94
92
90
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Q1/2022
Q2/2022
Q3/2022
Q4/2022
Economic occupancy rate of rental housing, %*
* Housing business in Finland
95.6
95.0
94.6
95.5
Työnumero 15 VSK
SATO’s owned rental homes 31 Dec 2022, %*
1h 22.4%
2h 48.2%
3h 22.6%
4h 6.4%
5h 0.4%
On 31 December 2022, SATO had 1,418 rental
apartments under construction in Finland.
During the year, 191 rental apartments and
52 Flex Homes were completed for the SATO
Group in Finland.
* Housing business in Finland
Työnumero 17 VSK
Regional distribution of the housing portfolio,
31 Dec 2022
Helsinki metropolitan area 87.3%
Turku region 5.1%
Tampere region 6.4%
St. Petersburg 1.2%
Total housing portfolio
EUR 4,899.7 million
Työnumero 18 VSK
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Trend in the investment property portfolio value, EUR million
6,000
5,000
4,000
3,000
2,000
1,000
0
5,044.2
Työnumero 16 VSK
600
500
400
300
200
100
0
-100
-200
-300
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Housing investments and divestments, EUR million
 Investments  Divestments
210.6
190.5
Työnumero 19 VSK
SATO 2022 | GovernanceFinancial statements
||

Report of the Board of Directors
Investment properties





Fair value







-

-
-



-




-



Investments, divestments and property development










































-











-















Housing investments
190�5
EUR million
200�4
EUR million
5,044�2
EUR million
Fair value of
investment properties
Net rental income
SATO 2022 | GovernanceFinancial statements
||

Report of the Board of Directors




-


-















Sustainability









































































-
sato.�
Impacts on the environment and society



-

-




SATO 2022 | GovernanceFinancial statements
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
Report of the Board of Directors






-






-

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











-





-











-










-






-



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Development activities













-
-

sato.




-




-


-

Events after the review period


SATO 2022 | GovernanceFinancial statements
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
Report of the Board of Directors
Risk management








-
















-
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

-




-







www.sato.�
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

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Shares












2022�
Personnel





Shareholders’ Nomination Committee
-






-




Board of Directors, CEO and auditors













SATO 2022 | GovernanceFinancial statements
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
Report of the Board of Directors


Members of the Corporate Management Group




Outlook
























-



















Proposal of the Board of Directors
for the distribution of prot









distributed
year 

Shareholders
Largest shareholders 30 December 2022 no. of shares %

  

  
  
  
  
  
  
  
  

  
  


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SATO 2022 | GovernanceFinancial statements
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
Report of the Board of Directors
FINANCIAL STATEMENTS
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Financial statements ||
CONSOLIDATED FINANCIAL STATEMENTS, IFRS
CONSOLIDATED INCOME STATEMENT, IFRS
EUR million note 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Net sales 3 291.2 298.3
Property maintenance expenses -90.8 -87.7
Net rental income 200.4 210.6
Fair value change of investment properties, realised 4, 13 53.1 2.4
Fair value change of investment properties, unrealised 13 -14.9 129.1
Sales, marketing and administrative expenses 6, 7, 8, 9 -40.7 -35.8
Other operating income 5 2.7 -0.2
Other operating expenses 5 -1.6 -1.5
Share of profit of associated companies and joint ventures 0.0 0.0
Operating profit 198.9 304.5
Financial income 10 0.6 0.5
Financial expenses 10 -47.6 -45.6
Net financing expenses -47.0 -45.1
Profit before tax 151.9 259.4
Income tax expenses 11 -31.3 -53.4
Profit for the period 120.6 206.0
Profit for the period attributable to
Equity holders of the parent 120.6 206.0
Non-controlling interests 0.0 0.0
Total 120.6 206.0
Earnings per share attributable to equity holders of the parent 12
Basic, EUR 2.13 3.64
Diluted, EUR 2.13 3.64
Average number of shares, million 56.6 56.6
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME, IFRS
EUR million note 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Other comprehensive income
Items that may be reclassified to income statement
Cash flow hedges 27 60.2 18.8
Translation differences -10.9 2.8
Related tax -12.0 -3.8
Items that may be reclassified to income statement total 37.2 17.9
Other comprehensive income, net of tax 37.2 17.9
Total comprehensive income 157.9 223.9
Comprehensive income attributable to
Equity holders of the parent 157.9 223.9
Non-controlling interest 0.0 0.0
Total 157.9 223.9
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CONSOLIDATED STATEMENT OF FINANCIAL POSITION, IFRS
EUR million note 31 Dec 2022 31 Dec 2021
ASSETS
Non-current assets
Investment property 13 5,044.2 5,032.8
Tangible assets 14 3.3 3.2
Intangible assets 9, 15 7.1 5.7
Investments in associated companies 17 0.1 0.1
Other non-current investments 18, 19 1.0 1.0
Other right-of-use assets 16 4.9 5.8
Derivative receivables 27 38.7 0.0
Non-current receivables 20 3.4 3.1
Deferred tax assets 21 6.0 10.4
Total 5,108.6 5,062.0
Current assets
Account and other receivables 22 13.6 19.1
Current tax assets 2.0 1.8
Cash and cash equivalents 18, 23 60.5 8.5
Total 76.1 29.4
TOTAL ASSETS 5,184.7 5,091.4
SHAREHOLDERS' EQUITY AND LIABILITIES
Equity attributable to equity holders of the parent
Share capital 4.4 4.4
Fair value and other reserves 31.5 -16.6
Reserve fund 43.7 43.7
Reserve for invested non-restricted equity 114.8 114.8
Retained earnings 2,286.6 2,205.1
Total 24 2,481.1 2,351.5
Non-controlling interests -0.2 -0.2
TOTAL SHAREHOLDERS' EQUITY 2,480.9 2,351.3
EUR million note 31 Dec 2022 31 Dec 2021
LIABILITIES
Non-current liabilities
Deferred tax liabilities 21 413.1 416.8
Provisions 28 1.5 1.6
Lease liabilities 16 53.0 54.1
Derivative liabilities 18. 27 0.0 20.1
Long-term non-interest-bearing liabilities 25 0.0 0.9
Long-term interest-bearing liabilities 18. 26 1,721.4 2,076.6
Total 2,189.1 2,570.2
Current liabilities
Accounts payable and other liabilities 29 69.3 67.3
Provisions 28 0.5 0.6
Lease liabilities 16 4.9 5.1
Current tax liabilities 15.8 4.0
Short-term interest-bearing liabilities 18. 26 424.2 92.9
Total 514.8 170.0
TOTAL LIABILITIES 2,703.9 2,740.1
TOTAL SHAREHOLDERS' EQUITY AND LIABILITIES 5,184.7 5,091.4
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CONSOLIDATED STATEMENT OF CASH FLOWS, IFRS
EUR million note 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Cash flow from operating activities
Profit for the period 120.6 206.0
Adjustments:
Non-cash items included in the profit 31 18.7 -127.1
Gains and losses on sales of investment properties and fixed assets -53.1 -2.6
Other adjustments -0.3 0.0
Interest expenses and other financial expenses 10 47.6 45.6
Interest income 10 -0.6 -0.5
Dividend income 0.0 0.0
Income taxes 11 31.3 53.4
Cash flow before change in net working capital 164.2 174.8
Change in net working capital:
Changes in accounts receivable and other receivables 1.6 -3.7
Change in accounts payable and other liabilities 6.2 0.7
Interest paid -45.5 -46.0
Interest received -0.8 0.6
Taxes paid -30.0 -24.0
Net cash flow from operating activities 95.8 102.4
Cash flow from investing activities
Investments in investment properties -209.8 -185.1
Net investment in tangible and intangible assets -3.9 -4.0
Cash receipts from loans receivable and debt securities 37.4 43.6
Loans granted and investments in debt securities -35.4 0.0
Disposals of investment property 225.4 34.5
Net cash flow from investing activities 13.8 -111.0
EUR million note 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Cash flow from financing activities
Repayments (–) / withdrawals (+) of current loans 9.8 -0.5
Withdrawals of non-current loans 137.3 101.2
Repayments of non-current loans -174.3 -313.3
Repayments of lease liabilities -1.6 -0.1
Repayment of capital and dividends paid 24 -28.3 -28.3
Net cash flow from financing activities -57.1 -241.0
Change in cash and cash equivalents 52.5 -249.5
Cash and cash equivalents at the beginning of the period 8.5 258.0
Effect of exchange rate fluctuations on cash held -0.5 0.0
Cash and cash equivalents at the end of the period 60.5 8.5
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CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY, IFRS
Attributable to owners of the parent
EUR million Share capital
Fair value and
other reserves Reserve fund
Reserve for invested
non-restricted equity Retained earnings Total
Non-controlling
interests Total equity
Shareholders’ equity 1 Jan 2022 4.4 -16.6 43.7 114.8 2,205.1 2,351.5 -0.2 2,351.3
Comprehensive income:
Cash flow hedges, net of tax - 48.1 - - - 48.1 - 48.1
Translation differences - - - - -10.9 -10.9 - -10.9
Profit for the period - - - - 120.6 120.6 0.0 120.6
Total comprehensive income - 48.1 - - 109.7 157.9 0.0 157.9
Transactions with shareholders:
Dividend - - - - -28.3 -28.3 - -28.3
Transaction with shareholders, total - - - - -28.3 -28.3 - -28.3
Other adjustments - - - - - - - -
Total of equity movements - 48.1 - - 81.4 129.6 0.0 129.6
Shareholders' equity 31 Dec 2022 4.4 31.5 43.7 114.8 2,286.6 2,481.1 -0.2 2,480.9
Attributable to owners of the parent
EUR million Share capital
Fair value and
other reserves Reserve fund
Reserve for invested
non-restricted equity Retained earnings Total
Non-controlling
interests Total equity
Shareholders’ equity 1 Jan 2021 4.4 -31.7 43.7 114.8 2,024.6 2,155.9 -0.2 2,155.7
Comprehensive income:
Cash flow hedges, net of tax - 15.1 - - - 15.1 - 15.1
Translation differences - - - - 2.8 2.8 - 2.8
Profit for the period - - - - 206.0 206.0 0.0 206.0
Total comprehensive income - 15.1 - - 208.8 223.9 0.0 223.9
Transactions with shareholders:
Dividend - - - - -28.3 -28.3 - -28.3
Transaction with shareholders, total - - - - -28.3 -28.3 - -28.3
Other adjustments - - - - - - - -
Total of equity movements - 15.1 - - 180.5 195.6 0.0 195.6
Shareholders' equity 31 Dec 2021 4.4 -16.6 43.7 114.8 2,205.1 2,351.5 -0.2 2,351.3
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NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS, IFRS
1. ACCOUNTING PRINCIPLES
General company information
SATO Corporation is a Finnish public limited company domiciled
in Helsinki, Finland. SATO’s registered address is Panuntie 4,
00600 Helsinki, Finland. SATO Corporation and its subsidiaries
together form the consolidated SATO Group (“SATO” or “the
Group”). SATO Corporation’s majority shareholder is Balder
Finska Otas AB, whose parent company is Fastighets AB Balder,
which is quoted on the Stockholm Stock Exchange.
The Board of Directors has approved the consolidated financial
statements on 9 February 2023. A copy of the consolidated
financial statements may be obtained from the above-mentioned
address and at www.sato.fi.
SATO provides housing solutions and its operations primarily
consist of investment in housing properties. The focus of
the Group’s operations is on the largest growth centres, and
approximately 87% of its investment property is located in
the Helsinki region. The rest of the operations are located in
Tampere, Turku and St. Petersburg.
SATO’s housing investments include both privately financed and
state-subsidised housing assets. In respect of the latter SATO’s
business is affected by special features of non-profit activities,
which are the result of restrictions set on the company’s business
for state-subsidised housing construction. The non-profit
restrictions affect owner organisations through, among others,
restrictions on distribution of profits, divestment and risk-taking
as well as through the prohibition on lending and providing
collateral. Housing is also affected by property-specific, fixed-
term restrictions, which apply to matters such as the use and
handover of apartments, the selection of the residents, and
the setting of rent. In respect of non-profit activities, SATO’s
supervisory authorities are the Housing Fund of Finland (ARA),
the State Treasury and the Ministry of the Environment, as well as
local authorities in matters concerning the selection of residents.
General accounting principles
SATOs consolidated financial statements have been prepared in
accordance with the International Financial Reporting Standards
(IFRS) as adopted by the European Union observing the
standards and interpretations effective on 31 December 2022.
The notes to the consolidated financial statements are also in
compliance with the Finnish accounting principles and corporate
legislation.
The information in the financial statements is stated in millions
of euros. Figures presented in these financial statements have
been rounded from exact figures and therefore the sum of figures
presented individually can deviate from the presented sum
figure.
The preparation of IFRS financial statements requires judgement
by the management in applying the accounting principles and
making certain estimates and assumptions that are subject to
uncertainty.
In note 2, information is given on key areas where management
judgements or uncertainty factors in estimates and assumptions
may cause the most material effects on the figures presented.
Principles of consolidation
The consolidated financial statements are a consolidation of the
financial statements of the parent company and the subsidiaries.
Subsidiaries are companies over which the parent company has
control. Control over a subsidiary is presumed to exist when the
investor is exposed, or has rights, to variable returns from its
involvement with the investee and has the ability to affect those
returns through its power over the investee.
Acquired subsidiaries are included in the consolidated financial
statements from the date of acquisitions until the control ends.
Acquired companies are included in the financial statements
using the acquisition cost method. The net assets of the acquired
company at the acquisition date are booked at the fair value of
the land areas and buildings. Acquisitions of real property are
generally treated as acquisitions of asset items.
All intra-group transactions, internal receivables and payables, in
addition to profit on internal transactions and the distribution of
profit between Group companies are eliminated as part of the
consolidation process.
Mutual property companies and housing companies, in which
the rights of control over specified apartments are determined by
shareholdings, are treated as joint operations in the consolidated
financial statements. In a joint operation, SATO has rights to
the assets and obligations for the liabilities of the arrangement.
Joint operations are accounted for in the consolidated financial
statements in the manner prescribed in the IFRS 11 Joint
Arrangements standard, by recognising SATO’s assets and
liabilities in the arrangement, including its share of joint assets
and liabilities, and its revenue and expenses, including its share
of joint revenue and expenses. Joint ventures, in which the Group
and another party have joint control in the arrangement and
which give the Group rights to the net assets of the arrangement,
are consolidated in SATO’s consolidated financial statements in
accordance with IFRS 11, i.e. by the equity method.
Transactions denominated in foreign currencies
The financial statements of the Group entities are based on their
primary functional currencies of the economic environment
where the companies are operating. The presentation currency
of the financial statements is the euro, which is also the functional
currency of the parent company.
Transactions in foreign currencies are translated into the
functional currency using the exchange rate of the date of
transactions. At the end of the accounting period, all open
balances of assets and liabilities denominated in foreign
currencies are translated into euros at the closing date exchange
rate.
Receivables and liabilities denominated in a foreign currency are
translated using period-end exchange rates. Foreign exchange
gains and losses related to the primary business are treated
as adjustments to income or expenses. Investment-related
foreign exchange gains and losses are treated as adjustments
to investments. Financial foreign exchange gains and losses
are reported under financial income and expenses. Foreign
exchange gains and losses from the translation of other assets
and liabilities are reported in the income statement. Unrealised
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gains and losses related to cash flow hedges are reported in
other comprehensive income.
The statements of income of foreign subsidiaries, whose
functional currency is not the euro, are translated into euros
based on the average exchange rate of the accounting period.
Items in the statement of financial position, with the exception
of income for the accounting period, are translated into euros
at the closing-date exchange rate. Exchange rate differences
arising from investments in subsidiaries with non-euro currency,
as well as the exchange rate differences resulting from
translating income and expenses at the average rates and assets
and liabilities at the closing rate, are recorded in translation
differences under equity. Respective changes during the period
are presented in other comprehensive income.
Translation differences from acquisition cost eliminations and
post-acquisition profits and losses of foreign operations outside
the euro area are recognised in the statement of comprehensive
income. The cumulative translation differences related to foreign
operations are reclassified from equity to statement of income
upon the disposal of the foreign operation.
As the Russia-Ukraine war has significant effects on the market
value of the Russian rouble rate, SATO has decided to freeze the
Russian rouble rate to the rouble rate published as of 31 March
2022. 31 December 2022 balance sheet date EUR/RUB rate is
91.8305 and the average EUR/RUB rate is 98.6328.
Investment property
As defined in the IAS 40 Investment Property standard,
investment properties are properties of which the Group retains
possession to obtain rental income or appreciation in value and
which are not occupied for use by the Group or for its operations,
nor for sale in the ordinary course of business. Investment
properties also include right-of-use assets that are classified
as investment property based on their nature (right-of-use
investment property), such as land leases.
At initial recognition, owned investment properties are
measured at acquisition value, which includes transaction costs.
Subsequently, investment properties are valued at fair value in
accordance with IAS 40 and IFRS 13 Fair value measurement.
Gains and losses from changes in fair value are recorded through
profit and loss in the period when they are incurred. The fair
value of an investment property represents the price that would
be received for the property in an orderly transaction, taking
place in the local (principal) market at the reporting date,
considering the condition and location of the property.
Some of SATO’s investment properties are subject to legislative
and usage restrictions. The so-called non-profit restrictions apply
to the owning company and the so-called property-specific
restrictions apply to the investment owned. The non-profit
restrictions include, among other things, permanent limitations
on the company’s operations, distribution of profit, lending and
provision of collateral, and the divestment of investments. The
property-specific restrictions include the use of apartments,
the selection of residents, the setting of rent and divestment of
apartments, and they are fixed-term.
Investment properties financed with ARAVA loans and interest-
subsidised loans are initially measured at acquisition cost,
including the transaction costs. Subsequently, they are valued
at the acquisition cost, plus accumulated investments and less
accumulated depreciation and impairments. Unbuilt land and
development projects, whose realisation is uncertain, are valued
at cost or probable value, whichever is lower, if their fair value
cannot be determined reliably.
Right-of-use investment properties are measured at cost upon
their recognition, and subsequently at fair value in accordance
with IFRS 16 and IAS 40 standards. The valuation is based on
the present value of future contractual lease payments, which
is deemed to represent the fair value of the right-of-use assets
arising from the lease agreements.
The fair values of owned investment properties are based on the
following:
• the income value method is used for investment properties in
Finland that are currently let to tenants and can be sold without
restrictions or that can be sold as entire properties and to a
restricted group of buyers;
• sales comparison method is used for the investment properties
in St Petersburg (valuation prepared by an external appraiser);
and
• the fair values of properties funded with ARAVA loans
or interest-subsidised loans, as well as unbuilt land and
development projects, whose realisation is uncertain, are
estimated to be the same as the remaining acquisition cost.
See further information on investment property valuation
methods and related assumptions in notes 2 and 13.
An investment property is derecognised from the balance
sheet when it is handed over or when the investment property
is permanently removed from use and no future economic use
can be expected from the handover. The profits and losses from
divestments or removals from use of investment properties are
presented on separate lines in the profit and loss account.
Tangible assets
Tangible assets are valued at the original acquisition cost less
accumulated depreciation and impairments. Other tangible
assets are depreciated with the straight-line method over their
estimated economic lives, which are as follows:
Machinery and equipment 5–10 years
Other tangible assets 3–6 years
The economic life and residual value of assets are reassessed at
each year-end. Changes in the future economic benefits found in
the assessment are taken into account by adjusting the economic
life and residual value of the assets. Profits and losses arising from
sales and divestments of tangible assets are booked in the profit
and loss account and presented as other income and expenses of
business operations.
Intangible assets
An intangible asset is recognised in the balance sheet only if the
asset is identifiable, its cost can be measured reliably, and it is
likely that an expected economic benefit attributable to the asset
will flow to the Group.
An intangible asset is valued at the original acquisition cost
less amortisation and any impairment. Intangible assets consist
largely of computer software, which is subjected to straight-line
amortisation over 3-6 years.
Lease agreements (SATO as lessee)
SATO applies IFRS 16 Leases in its accounting for lease
agreements. The Group makes assessment of whether an
agreement is a lease agreement in the scope of the standard,
and recognises, at the commencement date of the lease, a right-
of-use asset and a lease liability (except for short-term leases and
leases of low-value assets).
Based on their purpose, right-of-use assets are recognised either
in investment properties, to the extent that they are classified as
investment property, or in other leased assets.
Other right-of-use assets than those classified as investment
property are recognised in the statement of financial position
at the amount of the lease liability, including any initial direct
costs and excluding any lease incentives received, and they are
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depreciated over their expected economic lives. The economic
life is estimated separately for each asset, based on the duration
of the lease and other key terms of the contract, such as extension
or purchase options, if applicable. The right-of-use assets
classified as investment property are subsequently measured at
fair value (see section “Investment property” above). The lease
liability is recognised in the statement of financial position at an
amount equal to the discounted present value of future lease
payments.
If any extension or purchase options are included in the contract,
the Group as assesses whether such an option is reasonably
certain to be exercised and considers its effect on the economic
life and cost of the asset.
The Group applies the recognition exemptions allowed by
IFRS 16 and does not recognise short-term lease agreements
and lease agreements of low-value assets in the statement of
financial position. Leases with a duration of 12 months or less
are considered short-term. The lease payments from these
agreements are expensed in profit and loss over the lease term.
Further information on the initial application of IFRS 16 can be
found below in the section “New and amended standards applied
in the financial year ended”.
Lease agreements (SATO as a lessor)
Rental income from investment properties is recognised in profit
and loss over the lease period and presented in net sales in the
income statement. As a lessor, SATO has no agreements classified
as financial lease agreements.
Impairment
At the end of each reporting period, it is assessed whether there
is any indication that an asset may be impaired. If any such
indication exists, the recoverable amount from the asset item is
estimated. An asset is impaired if the carrying value exceeds the
recoverable amount. An impairment loss is recognised in profit
or loss.
When an impairment loss is booked, the economic life of the
asset item subject to depreciation is reassessed. The impairment
loss booked against the asset item is cancelled if there is an
increase in the value of the assessment used to determine the
recoverable amount from the asset item.
However, the increased carrying amount of an asset attributable
to a reversal of an impairment loss shall not exceed the carrying
amount that would have been determined (net of amortisation or
depreciation) had no impairment loss been recognised for the
asset in prior years.
Financial instruments
SATO’s financial assets are classified, in accordance with IFRS
9 Financial Instruments, into the following categories: financial
assets at fair value through profit and loss (FVTPL), financial assets
at fair value through other comprehensive income (FVTOCI) and
financial assets at amortised cost. The classification is made at
the time of the initial recognition and is based on the contractual
terms of the instrument and the Group’s business model for the
type of financial instruments.
Financial liabilities are classified on financial liabilities at
amortised cost and financial liabilities at fair value through profit
and loss under IFRS 9. The instruments are classified at the time
of the initial recognition, based on the purpose of the instrument.
Sales and purchases of financial instruments, other than those
associated with derivatives, are booked on the clearance date. All
derivatives are booked on the balance sheet on the trade date.
Financial assets and liabilities at fair value through profit and
loss
The category includes derivative instruments for which hedge
accounting in accordance with IFRS 9 is not applied and are
hence classified in the trading portfolio. These instruments are
valued at fair value and gains and losses arising from changes
in the fair value, both realised and unrealised, are recognised in
the income statement for the period.
Financial assets at fair value through other comprehensive
income
Financial assets at fair value through other comprehensive
income are principally stocks and shares, and they are presented
in the statement of financial position in other non-current
investments. Investments in listed securities are valued in the
financial statements at the prices quoted in an active market at
the closing date of the reporting period. Unlisted shares, the
fair value of which cannot be determined reliably, are valued at
acquisition cost. Unrealised changes in the value of the assets
in this class are booked in other comprehensive income, with
allowance for the deferred tax. Accumulated changes in fair
value are not booked from the fair value reserve to profit and
loss until the investment is sold.
Financial assets at amortised cost
Financial assets at amortised cost are non-derivative assets,
for which the cash flows consist of payments of principal and
interest, as applicable, and which are not held for trading
purposes. On the statement of financial position, they are
included in non-current receivables, accounts receivable and
other receivables or cash and cash equivalents, according to
their terms.
At initial recognition, loan receivables are measured at fair value
including any transaction costs, and they are subsequently
measured at amortised cost, using the effective interest rate
method. Short-term accounts receivable are initially measured
at the transaction value. For impairment of accounts receivable,
the Group applies the simplified approach allowed by IFRS 9,
whereby it makes an assessment of the lifetime expected credit
losses for its accounts receivable at each reporting date, and
based on this assessment, recognises the impairment through
profit and loss.
Cash and cash equivalents are comprised of cash in hand, bank
accounts and liquid investments with maturities of three months
or less at the date of initial recognition. Any credit balances of
bank accounts with an overdraft facility are included in current
liabilities. The cash and cash equivalents of non-profit companies
are kept separate from those of companies not subject to non-
profit restrictions.
Financial liabilities at amortised cost
Financial liabilities are initially recognised at a fair value of the
proceeds less transaction expenses. Subsequently, interest-
bearing liabilities are valued at amortised cost using the effective
interest method. Financial liabilities are included in non-current
and current liabilities, and they may be interest-bearing or non-
interest-bearing. Interest is accrued in the income statement for
the accounting period by the effective interest method.
Derivatives and hedge accounting
All derivatives are originally booked at fair value at the trade date
and are subsequently measured at fair value. The accounting
treatment of profits and losses depends on the intended use
of the derivatives. The Group documents the designation of
hedging instruments to hedged items and makes its assessment
as to whether the derivatives used for hedging are highly
effective in negating the changes in the cash flows of the hedged
items. The effectiveness is reviewed both when starting the
hedging and at each reporting date. The fair value of derivatives
is calculated by discounting the contractual cash flows. The fair
value of interest-rate options is calculated by using the market
prices at the balance sheet date and option valuation models.
The Group treats derivatives either as cash flow hedges for
floating-rate loans or as derivatives for which hedge accounting
under IFRS 9 is not applied. Changes in the value of derivatives
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subject to hedge accounting are recorded in other comprehensive
income. Gains and losses are transferred to the interest expenses
in the income statement at the same time as the interest expenses
on the hedged item. Any ineffective part of a hedging relationship
is booked immediately in financial expenses. Changes in the value
of derivatives, for which hedge accounting is not applied, are
recorded in profit and loss.
Provisions
Provisions are recognised when the Group has a legal or
constructive obligation as a result of past events, it is probable that
settling the obligation will require payment or cause an economic
loss, and the amount can be reliably estimated.
The Group recognises a provision for statutory 10-year guarantees
related to new apartments sold. The 10-year provision is
measured based on prior experience of the realisation of these
obligations. In addition, a warranty provision is recognised upon
the recognition of revenue from the project. The amount of the
warranty provision is based on prior experience with the actual
warranty costs and the specific risks related to the project.
A provision for onerous contracts is recognised when the
unavoidable costs of settling the obligations exceed the benefits
received from the contract.
Principles of income recognition
SATO recognises those income items that are not in the scope of
any other standard, according to the revenue recognition principles
of IFRS 15 Revenue from Contracts with Customers. In addition,
the rules in IAS 40 regarding disposals are applied to the sale of
investment properties. Under IFRS 15, a five-step model is applied
to determine when, and at which amount, revenue is recognised.
SATO makes an assessment of the performance obligations
included in the contract, after which income is recognised when (or
as) control is transferred, either over time or at a point in time.
Principles of income recognition for sales of investment
property
Sales of the Group’s investment property normally consist of a
single performance obligation, for which income is recognised
at a point in time, when control of the asset is transferred to the
buyer. SATO assesses for each transaction whether the contract
includes other performance obligations, such as a material
financing component, and determines the expected income from
them. Income from any additional performance obligations is
recognised over time or at a point in time, depending on their
nature.
Principles of income recognition for sales of new homes
Income from sales of new homes is recognised at a point in time
when control of the sold asset is transferred to the buyer. The
sale of an apartment is considered to form a single performance
obligation. In respect of the homes sold during the construction,
the risks and benefits are deemed to be transferred on the
completion date of the property, whereas for completed homes,
they are transferred on the sale date.
Income from services
Income from services, such as property management, is
recognised as the service is performed.
Borrowing costs
Borrowing costs are capitalised as part of an asset’s acquisition cost
when they are due to acquisition, construction or manufacture of a
qualifying asset. A qualifying asset is one for which the completion
for its intended use or sale will necessarily take a substantial period
of time. Other borrowing costs are expensed in the financial
year when they have been incurred. Direct transaction costs from
the raising of loans, which can be attributed to a particular loan,
are included in the cost of the loan and amortised as an interest
expense using the effective interest rate method.
Public grants
For SATO, the main form of public support is state-supported
interest-subsidised loans and ARAVA loans, in which state-
backed housing is funded by low-interest debt subsidised
by the government. The real interest on these loans is lower
than the interest expenses would be on loans with market
terms. The interest benefit obtained through public support is
therefore netted into interest expenses in accordance with IAS 20
Accounting for Government Grants and Disclosure of Government
Assistance and is not separately presented as interest income.
Other direct public grants, such as investment grants, are
recorded as reductions in the book values of the subsidised assets.
The grants received therefore reduce the original acquisition cost
of those assets.
Pension arrangements
SATO’s current pension arrangements are classified as defined
contribution arrangements. Contributions to defined contribution
pension arrangements are recorded as expenses in profit and loss
for the period when they are incurred. The Group has no legal
or actual obligation to make further payments if the recipient of
the payments is unable to perform the payment of these pension
benefits.
Income taxes
Income taxes include taxes based on the taxable profit for the
current year, adjustments to previous years’ taxes, and changes in
deferred taxes. Deferred tax assets and liabilities are calculated
from the differences between the taxational values of assets
and liabilities and their carrying values under IFRS. The tax rate
approved by the financial statement date is used to determine
the deferred taxes. For SATO, the largest temporary differences
arise from investment properties measured at fair value through
profit and loss and from financial instruments measured at fair
value through other comprehensive income. Deferred tax assets
are recorded up to the amount, for which it is likely that there
will be taxable income in the future, against which the temporary
difference can be used.
Net rental income
Net rental income is the sum of net sales less property
maintenance expenses.
Operating profit
Operating profit is the net sum obtained from net rental income,
by adding gains from divestments of investment properties, the
share of the profit of joint ventures and associated companies, and
other operating income, and deducting the sales, marketing and
administrative expenses, losses from divestments of investment
properties and other operating expenses. Also, it includes the
gain or loss from unrealised fair value changes of investment
properties. Exchange gains and losses are included in operating
profit when they arise from items related to ordinary business
operations. Exchange gains and losses attributable to financing
are recorded in financial income and expenses.
New and amended standards applied in the financial year
ended
New IFRS standards, amendments to standards and IFRIC
interpretations which have entered into force on 1 January 2022
have not had any material impact on the Group.
Adoption of new and amended standards and interpreta-
tions applicable in upcoming financial years
New IFRS standards, amendments to standards and IFRIC
interpretations effective on or after January 1, 2023, are not
expected to have any material impact on the Group.
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2. MANAGEMENT JUDGEMENTS AND KEY
ESTIMATES AND ASSUMPTIONS UNDERLYING THE
CONSOLIDATED FINANCIAL STATEMENTS
When the financial statements are prepared, making of
judgements, estimates and assumptions is required in certain
matters, affecting the amounts of assets, liabilities and conditional
liabilities on the consolidated statements of financial position
as well as the amount of income and expenses in the income
statement. The judgements, estimates and assumptions that
have the most material effects on the preparation of the financial
statements, are presented in the following.
Management judgements
In the process of applying the Group’s accounting principles,
management has made the following judgements, which have
a material effect on the amounts recognised in the consolidated
financial statements.
• Classification of acquisitions. The Group acquires subsidiaries
that own real estate. At the time of acquisition, the Group
considers whether each acquisition represents the acquisition
of a business or the acquisition of assets. The Group considers
whether the acquisition represents a business as defined in
IFRS 3 Business combinations, i.e. whether an integrated set of
activities and processes is acquired in addition to the property.
When the acquisition of subsidiaries does not represent a
business, it is accounted for as an acquisition of a group of
assets and liabilities. The cost of the acquisition is allocated to
the assets and liabilities acquired based on their relative fair
values, and no goodwill or deferred tax is recognised.
• Classification of properties. The Group determines whether a
property is classified as an investment property or a tangible
asset. Investment property comprises land and buildings
(primarily housing units) that are not occupied for use by the
Group or for its operations, nor for sale in the ordinary course
of business, but are held primarily to earn rental income and
capital appreciation. These buildings are substantially rented
to tenants. Property in tangible assets comprises other than
investment property and they are occupied for use by the
Group or for its operations.
Key estimates and assumptions
Estimates and assumptions underlying the financial statements
are based on the management’s historical experience, the best
available information about the events at the reporting date, and
other factors, such as expectations concerning the future that
are considered reasonable under current circumstances. Due to
the uncertainty involved, actual amounts may differ materially
from the estimates used in the financial statements. The changes
in estimates, assumptions and the factors affecting them are
followed in the Group by using both internal and external sources
of information.
Revisions of accounting estimates are recorded for the period
in which the estimate is revised if the change in the estimate
only affects that period. If the change in the estimate affects
both the period in which it is made and subsequent periods, the
effect arising from the change in the estimate is correspondingly
recorded in current and subsequent periods.
The key estimates and assumptions, which are considered to
involve a material risk of causing a material adjustment in future
periods, are described below.
• The fair value of investment property is determined using
recognised valuation techniques and the principles of IFRS
13 Fair Value Measurement. Due to the fact that market prices
for properties are not observable on a quoted market, the fair
value measurement for investment property is performed using
indirect valuation techniques that require the use of several
assumptions by the Group management. For the majority of
the Group’s investment property, the fair value measurement
is done with the income value method, whereby the expected
future cash flows of the assets are discounted to their present
value. The cash flow forecasts require making estimates and
assumptions concerning the future rental income, vacancy,
operating expenses and renovation needs of the properties.
The discount rate is comprised of the estimated yield and the
inflation assumption. More information on the methods and
assumptions used by the Group in fair value measurement of
investment property are presented in note 13.
• The amount of provisions recognised on property
development projects requires estimates of the obligations
arising from the projects. The amounts recorded as provisions
are based on the management’s assessment of the specific
risks in each project. Key considerations in the management’s
assessment include technical, contractual and legal aspects
related to the project, as well as the Group’s prior experience
on similar projects.
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3. SEGMENT INFORMATION
SATO has one operating segment. Significant operational decisions at SATO are made by the Board of Directors, which reviews the
operating results and profitability as a single operating segment.
The Group operates in two geographic regions, Finland and Russia.
SATO does not have any single external customers that would account for 10% or more of SATO's revenues.
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Net sales by geographical region
Finland 286.5 292.8
Russia 4.7 5.5
Total 291.2 298.3
Non-current assets by geographical region
31 Dec 2022
EUR million Finland Russia Total
Investment property 4,983.8 60.4 5,044.2
Tangible assets 3.2 0.0 3.3
Intangible assets 7.1 0.0 7.1
Other right-of-use assets 4.9 - 4.9
Investments in associated companies 0.1 - 0.1
Total 4,999.1 60.4 5,059.5
31 Dec 2021
EUR million Finland Russia Total
Investment property 4,904.6 128.1 5,032.8
Tangible assets 3.1 0.0 3.2
Intangible assets 5.7 0.0 5.7
Other right-of-use assets 5.8 - 5.8
Investments in associated companies 0.1 - 0.1
Total 4,919.3 128.2 5,047.5
4. RESULT ON DISPOSAL OF INVESTMENT PROPERTIES
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Gains and losses on sales of investment properties
Gains on sales of investment properties 53.2 2.7
Losses on sales of investment properties -0.1 -0.4
Total 53.1 2.4
Proceeds from the disposal of investment properties include the disposal price received, net of disposal costs. The carrying value of
disposed-of assets includes the fair value recognised on the prior period statement of financial position and any capitalised expenses for
the period.
Specifications of significant investments and disposals are presented in note 13.
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Sale of residential investment properties
Proceeds from disposal of residential investment properties 211.7 8.2
Carrying value of investment properties sold -163.8 -8.0
Total 47.8 0.2
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Sale of land plots
Sales income, land plots 9.5 23.3
Carrying value of land plots sold -4.3 -21.2
Total 5.2 2.1
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6. PERSONNEL EXPENSES
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Personnel expenses
Salaries and wages 17.8 15.7
Defined contribution pension plans 3.1 2.5
Other personnel expenses 0.7 0.6
Total 21.6 18.8
Management employee benefits are presented in note 33. Related party transactions. The average number of personnel during the
period has been 328 (276).
7. AUDITORS' FEES
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Auditors' fees
Audit 0.3 0.2
Other audit-related assignments 0.1 0.0
Tax advisory - 0.0
Total 0.3 0.3
Deloitte Oy, Authorised Public Accountants, have acted as SATO's auditors.
The audit fees include fees relating to audits of SATO, its subsidiaries and the consolidated financial statements of the Group. Other
audit-related assignment fees include assurance and other services related to the audit.
8. DEPRECIATION, AMORTISATION AND IMPAIRMENT CHARGES
EUR million note 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Depreciation, amortisation and impairment charges by asset class
Tangible assets 14 1.1 1.0
Intangible assets 15 1.5 1.0
Other right-of-use assets 16 1.3 1.2
Total 3.9 3.3
9. RESEARCH AND DEVELOPMENT
Research and development expenses during 2022 were EUR 0.6 million (0.8) and capitalised development costs were EUR 2.6 million
(2.3).
5. OTHER OPERATING INCOME AND EXPENSES
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Other operating income
Sales income, new production 10.1 1.6
New production expenses -8.1 -2.5
Other income 0.7 0.7
Total 2.7 -0.2
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Other operating expenses
Bad debts expensed in the period -3.0 -2.9
Post-collection income 1.5 1.9
Other expenses -0.1 -0.4
Total -1.6 -1.5
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11. INCOME TAXES
EUR million note 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Income taxes recognised in the income statement
Current tax from the accounting period 40.2 22.5
Current tax from the previous period 1.2 1.3
Changes in deferred tax assets and liabilities 21 -10.2 2 9.6
Total 31.3 53.4
12. EARNINGS PER SHARE
Undiluted earnings per share are calculated by dividing the parent company profit attributable to equity holders by the weighted average
number of shares outstanding. The total number of SATO’s shares on 31 December 2022 was 56,783,067. At the end of the reporting
period, SATO held 166,000 of its own shares.
1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Profit attributable to equity holders of the parent, EUR million 120.6 206.0
Weighted average of shares, million pcs 56.6 56.6
Earnings per share, EUR
Basic 2.13 3.64
Diluted 2.13 3.64
10. FINANCIAL INCOME AND EXPENSES
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Financial income
Interest income on loans and other receivables 0.6 0.5
Dividend income on other non-current investments 0.0 0.0
Foreign exchange gains 0.0 0.0
Total 0.6 0.5
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Financial expenses
Interest expense on financial liabilities measured at amortised cost -32.1 -29.3
Interest expense on effective cash flow hedges -5.8 -8.0
Foreign exchange losses -0.2 -0.1
Interest expense on lease liabilities* -3.3 -3.3
Other financial expenses -6.2 -5.0
Total -47.6 -45.6
Financial income and expenses, net -47.0 -45.1
*Includes the financial expense component from lease agreements recognised in accordance with IFRS 16 Leases. See note 16 for further information.
Reconciliation between the income tax expense recognised in the income statement and tax expense calculated with the domestic
corporate tax rate (20%) of the parent company:
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Profit before taxes 151.9 259.4
Income tax calculated with the domestic corporate tax rate of the parent 30.4 51.9
Non-deductible expenses and tax-exempt income -0.1 0.1
Effect of different tax rates on foreign operations 0.6 0.9
Taxes from prior periods 0.2 0.4
Other items 0.2 0.2
Total adjustments 0.9 1.5
Income tax expense in the income statement 31.3 53.4
Effective tax rate, % 20.6 20.6
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13. INVESTMENT PROPERTIES
EUR million note 2022 2021
Fair value of investment properties, 1 Jan 5,032.8 4,753.5
Acquisitions of properties 12.9 16.3
New construction and other investments in properties 194.1 1 67.3
Disposals of investment properties -1 69.9 -29.3
Capitalised borrowing costs 34 1.9 1.2
Reclassified from other items -2.9 -6.5
Gains and losses from changes in fair value* -14.9 129.1
Exchange rate differences, no P/L effect -10.9 1.0
Remeasurement of right-of-use investment properties, no P/L effect 16 1.1 0.2
Fair value of investment properties, 31 Dec 5,044.2 5,032.8
* Gains and losses from changes in fair value include foreign exchange gains and losses of EUR -0.3 million (6.3).
Significant acquisitions of investment properties during the period:
The most significant acquisition during the reporting period was the investment in the Mellunpuisto project where approx. 1,000 new
apartments, including approx. 250 SATO rental apartments, will be built in Mellunmäki, Helsinki in the coming years. In addition, SATO
signed a preliminary agreement with VR Group for the purchase of a development property in Ilmala, Helsinki where a total of approx.
250 apartments will be built in the future. SATO did not make significant acquisitions of completed investment properties during the
period.
Significant disposals of investment properties during the period:
The most significant disposal during the period was the sale of 2,009 rental apartments mainly in the Lahti, Jyväskylä and Oulu regions to
a Swedish investment company Heimstaden.
Valuation methods
SATO's investment properties mainly comprise residential properties. In addition, the investment properties include commercial and
parking space, unbuilt land and development projects as well as right-of-use investment properties.
The housing properties are located in the largest growth centres, with approximately 87% of them located in the Helsinki region. The
quality of investment properties is maintained by renovation and repair activities based on their lifecycle and repair plans. Change in the
fair value of SATO's investment property was mainly due to market price levels, reclassifications from one measurement group to another
when legal restrictions have ended and changes in parameters used in valuation, and the change in valuation method (see below section
“Income value method”).
Some of the residential investment properties are subject to legislative and usage restrictions. The so-called non-profit restrictions apply
to the owning company and the so-called property-specific restrictions apply to the investment owned. The non-profit restrictions include,
among other things, permanent limitations on the company’s operations, distribution of profit, lending and provision of collateral, and the
divestment of investments. The property-specific restrictions include the use of apartments, the selection of residents, the setting of rents
and divestment of apartments, and they are fixed-term.
The valuation of investment properties in SATO’s ownership is based on a method which has been prepared by SATO in co-operation
with a third-party expert (currently: JLL). The external expert semi-annually issues a statement on the applicability of SATO’s valuation
methods, the appropriateness of sources of information used and the credibility of the valuation. As part of the valuation process, the
external expert also reviews each SATO's property on-site every three years. Existing properties located in St. Petersburg are valuated
by a third-party expert (DMA Valuation). The principles and methods used in the fair value measurement are approved by the Corporate
Management Group. During the valuation process, all the periodical changes are analysed. The result of the valuation and the periodic
change in fair value recorded through profit and loss are reported to the Corporate Management Group and Board of Directors.
At inception, owned investment properties are recognised at acquisition value, which includes transaction costs. Thereafter, they are
recorded at fair value. Gains and losses from changes in fair value are recorded through profit and loss in the period when they are
incurred. Fair value of an investment property represents the price that, according to the Group's estimate, would be received for the
property in an orderly transaction taking place in the local (principal) market at the reporting date, considering the condition and location
of the property. Unbuilt land and development projects, whose realization is uncertain, are valued at cost or probable value, whichever
is lower, if their fair value cannot be determined reliably. The valuation methods for SATO's owned investment properties are the income
value method, sales comparison method and acquisition cost method.
SATO's right-of-use investment properties include land plots leased for residential construction. The land lease agreements are accounted
for as right-of-use assets classified as investment properties and measured at fair value in accordance with the IFRS 16 Leases and IAS
40 Investment property standards. They are valued at the present value of future lease payments of the underlying agreements, which is
considered to be equivalent to their fair value. Further details about the Group's lease portfolio are presented in note 16.
Income value method
Most of the Group's investment properties that are currently let to tenants are valued using the income value method. The method is
based on a cash flow analysis, whereby forecasted 10-year cash flows are discounted to their present value. The cash flows are based on
forecasts on rent levels, vacancy, operating expenses and renovation needs of the properties. The discount rate is comprised of the yield
and the inflation assumption. The yields are determined based on the location, age and technical condition of the properties.
An external expert (JLL) has issued a statement regarding SATO's valuation method, and the statement is consistent with the valuation of
investment properties in the consolidated financial statements.
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The following table presents the key inputs used in the valuation of investment properties by income value method, as of 31 December
2022.
Average
Yield requirement, % 4.1
Long-term economic occupancy rate, % 98.0
Operating expenses, EUR/sqm/month 4.5
Growth assumption of operating expenses, % 2.3
Growth assumption of market rents, % 2.3
Inflation assumption, % 1.8
Sales comparison method
SATO's investment properties located in St. Petersburg are valued by an external expert (DMA Valuation) with a sales comparison method.
Acquisition cost
Properties funded with ARAVA loans or interest-subsidised loans are valued at cost, less any impairments, which is estimated to represent
their fair value. Unbuilt land and development projects, whose realization is uncertain, are valued at cost or probable value, whichever is
lower, if their fair value cannot be determined reliably.
EUR million note 31 Dec 2022 31 Dec 2021
Investment property classified by valuation method
Income value method 4,664.2 4,585.0
Sales comparison method 60.4 128.1
Acquisition cost 267.0 266.8
Owned investment property, total 4,991.6 4,979.9
Right-of-use investment properties 16 52.6 52.9
Total 5,044.2 5,032.8
Sensitivity analysis of investment property fair values, income value method
The following table illustrates how changes in key parameters used in fair value measurement by the income value method would affect
the fair value of the property portfolio when one parameter at a time is changed. In practice, changes in real estate markets are often
reflected in more than one parameter simultaneously.
Change % -10% -5% 0% 5% 10%
Yield requirement, EUR million 475.7 225.2 -203.6 -388.5
Gross rental income, EUR million -593.4 -296.7 296.7 593.4
Change %-points -1% 0% 1%
Economic occupancy rate, EUR million -62.7 62.7
All SATO's investment properties are classified in hierarchy level 3 under IFRS 13. Items which are included in the hierarchy level 3 are
measured using input data which is not based on observable market data.
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15. INTANGIBLE ASSETS
2022
EUR million note
Intangible
rights
Other intangible
assets Total
Acquisition cost, 1 Jan 0.0 14.2 14.2
Additions - 3.2 3.2
Disposals - -0.2 -0.2
Transfers between items - 0.0 0.0
Acquisition cost, 31 Dec 0.0 17.2 17.2
Accumulated amortisation, 1 Jan 0.0 8.5 8.5
Disposals - - -
Amortisation for the period 8 - 1.5 1.5
Transfers between items - 0.0 0.0
Accumulated amortisation, 31 Dec 0.0 10.1 10.1
Carrying value, 1 Jan 0.0 5.7 5.7
Carrying value, 31 Dec 0.0 7.1 7.1
2021
EUR million note
Intangible
rights
Other intangible
assets Total
Acquisition cost, 1 Jan 0.0 11.5 11.5
Additions - 2.7 2.7
Disposals - - -
Transfers between items - 0.0 0.0
Acquisition cost, 31 Dec 0.0 14.2 14.2
Accumulated amortisation, 1 Jan 0.0 7.5 7.5
Disposals - - -
Amortisation for the period 8 - 1.0 1.0
Transfers between items - 0.0 0.0
Accumulated amortisation, 31 Dec 0.0 8.5 8.5
Carrying value, 1 Jan 0.0 4.0 4.0
Carrying value, 31 Dec 0.0 5.7 5.7
14. TANGIBLE ASSETS
2022
EUR million note
Machinery and
equipment
Other tangible
assets Total
Acquisition cost, 1 Jan 7. 4 1.6 9.0
Additions 0.9 0.0 1.0
Disposals -0.2 - -0.2
Transfers between items 0.3 - 0.3
Acquisition cost, 31 Dec 8.4 1.7 10.1
Accumulated depreciation, 1 Jan 4.8 1.0 5.8
Disposals -0.1 - -0.1
Depreciation and impairments for the period 8 1.0 0.1 1.1
Transfers between items 0.0 - 0.0
Accumulated depreciation, 31 Dec 5.6 1.2 6.8
Carrying value, 1 Jan 2.6 0.6 3.2
Carrying value, 31 Dec 2.8 0.5 3.3
2021
EUR million note
Machinery and
equipment
Other tangible
assets Total
Acquisition cost, 1 Jan 6.4 1.6 8.0
Additions 1.4 0.0 1.4
Disposals -0.4 - -0.4
Transfers between items 0.0 - 0.0
Acquisition cost, 31 Dec 7.4 1.6 9.0
Accumulated depreciation, 1 Jan 4.3 0.9 5.2
Disposals -0.4 - -0.4
Depreciation and impairments for the period 8 0.9 0.2 1.0
Transfers between items 0.0 0.0 0.0
Accumulated depreciation, 31 Dec 4.8 1.0 5.8
Carrying value, 1 Jan 2.1 0.7 2.8
Carrying value, 31 Dec 2.6 0.6 3.2
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Lease liabilities
EUR million 31 Dec 2022 31 Dec 2021
Non-current
From land lease agreements 49.0 49.4
From other lease agreements 4.0 4.7
Total 53.0 54.1
Current
From land lease agreements 3.8 3.8
From other lease agreements 1.1 1.3
Total 4.9 5.1
Total 57.9 59.2
16. LEASES
Right-of-use assets
2022
EUR million note
Right-of-use
investment properties*
Other
right-of-use assets Total
Carrying value, 1 Jan 52.9 5.8 58.7
Additions 0.6 - 0.6
Disposals -1.4 - -1.4
Remeasurement of lease agreements 1.1 0.3 1.5
Changes of fair value in profit and loss 13 -0.6 - -0.6
Depreciation for the period 8 - -1.3 -1.3
Carrying value, 31 Dec 52.6 4.9 57.5
2021
EUR million note
Right-of-use
investment properties*
Other
right-of-use assets Total
Carrying value, 1 Jan 51.8 6.6 58.4
Additions 1.5 - 1.5
Disposals - - -
Remeasurement of lease agreements 0.2 0.4 0.6
Changes of fair value in profit and loss 13 -0.6 - -0.6
Depreciation for the period 8 - -1.2 -1.2
Carrying value, 31 Dec 52.9 5.8 58.7
* Right-of-use investment properties are measured at fair value and presented under investment properties in the statement of financial position. See further
details in note 13.
SATO recognises leases in accordance with the IFRS 16 Leases standard. SATO has recognised right-of-use assets in scope of the standard
under investment properties, to the extent that they are classified as investment properties (right-of-use investment properties, see note
13), and otherwise under a new balance sheet item "Other right-of-use assets".
The right-of-use investment properties include land lease agreements, which are related to residential investment properties. At the end
of the reporting period, the average remaining lease term of the Group's land leases was 17.9 years (18.4). Their lease payments are index-
dependent. Other right-of-use assets include leases for premises for SATO's own use. All lease agreements for SATO's own premises
mature in less than ten years and their lease payments are index-based.
In the current period, the Group has recorded EUR 0.2 million (0.2) of lease expenses from short-term lease agreements in the sales,
marketing and administrative expenses. Total cash outflows for the Group's leases during the period amounted to EUR 5.3 million (5.3).
17. INTERESTS IN OTHER ENTITIES
Group composition
SATO has 21 subsidiaries (23) that are individually material to the Group. Subsidiaries are entities over which SATO has control and they
are consolidated into the Group. There are no material non-controlling interests in any of the Group's subsidiaries.
Mutual property companies and housing companies, in which the rights of control over specified apartments are determined by
shareholdings, are treated as joint operations in the consolidated financial statements. None of these entities is individually material
to the Group. Joint operations are accounted for in the consolidated financial statements in the manner prescribed in the IFRS 11 Joint
Arrangements standard, by recognising SATO’s assets and liabilities in the arrangement, including its share of joint assets and liabilities,
and its revenue and expenses, including its share of joint revenue and expenses.
A list of all entities owned by the Group or the parent company is presented in note 36.
Significant restrictions
The non-profit subsidiaries are subject to regulatory restrictions limiting the distribution of profit from those entities. More information on
the restrictions is presented in note 24: Shareholders' equity.
Joint ventures and associated companies
SATO did not have joint ventures or associated companies material to the Group in 2022 or 2021.
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18. FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
31 Dec 2022
EUR million note
Fair value, other
comprehensive
income
Assets and
liabilities at
amortised cost
Carrying
amount total
Fair value hierarchy
Level 1 Level 2 Level 3
Non-current financial assets
Other non-current investments 19 1.0 - 1.0 - 1.0 -
Loans receivable 20 - - - - - -
Derivative assets 27 38.7 - 38.7 - 38.7 -
Total 39.7 - 39.7
Current financial assets
Accounts receivable 22 - 5.4 5.4 - 5.4 -
Loans receivable 22 - - - - - -
Derivative assets 27 0.2 - 0.2 - 0.2 -
Cash and cash equivalents 23 - 60.5 60.5 - 60.5 -
Total 0.2 65.8 66.0
Non-current financial liabilities
Corporate bonds 26 - 747.7 747.7 620.9 - -
Other loans 26 - 973.8 973.8 - 953.3 -
Derivative liabilities 27 - - - - - -
Total - 1,721.4 1,721.4
Current financial liabilities
Corporate bonds 26 - 324.0 324.0 299.4 24.0 -
Other loans 26 - 100.2 100.2 - 100.2 -
Derivative liabilities 27 0.0 - 0.0 - 0.0 -
Accounts payable 29 - 12.2 12.2 - 12.2 -
Total 0.0 436.4 436.4
31 Dec 2021
EUR million note
Fair value, other
comprehensive
income
Assets and
liabilities at
amortised cost
Carrying
amount total
Fair value hierarchy
Level 1 Level 2 Level 3
Non-current financial assets
Other non-current investments 19 1.0 - 1.0 - 1.0 -
Loans receivable 20 - 0.2 0.2 - 0.2 -
Derivative assets 27 - - - - - -
Total 1.0 0.2 1.2
Current financial assets
Accounts receivable 22 - 5.0 5.0 - 5.0 -
Loans receivable 22 - - - - - -
Derivative assets 27 - - - - - -
Cash and cash equivalents 23 - 8.5 8.5 - 8.5 -
Total - 13.6 13.6
Non-current financial liabilities
Corporate bonds 26 - 1,070.3 1,070.3 1,074.9 24.0 -
Other loans 26 - 1,006.2 1,006.2 - 995.3 -
Derivative liabilities 27 20.1 - 20.1 - 20.1 -
Total 20.1 2,076.6 2,096.7
Current financial liabilities
Corporate bonds 26 - 25.0 25.0 25.4 - -
Other loans 26 - 6 7.9 67.9 - 67.9 -
Derivative liabilities 27 1.2 - 1.2 - 1.2 -
Accounts payable 29 - 12.0 12.0 - 12.0 -
Total 1.2 104.9 106.1
The cash flow hedging derivatives are valued at fair value through other comprehensive income.
The fair values of assets and liabilities at fair value hierarchy level 1 are quoted market prices. Values on hierarchy level 2 are based on
discounted cash flows, with market rates as calculation input.
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19. OTHER NON-CURRENT INVESTMENTS
EUR million 31 Dec 2022 31 Dec 2021
Other non-current investments
Other holdings 1.0 1.0
Total 1.0 1.0
SATO presents its other non-current investments categorised into quoted shares and other holdings. Unrealised valuation gains and
losses from other non-current investments are recognised in other comprehensive income and in fair value reserve, after accounting for
tax effects. Other holdings include shares in unlisted companies and are valued at acquisition cost if their fair value cannot be reliably
determined.
20. NON-CURRENT RECEIVABLES
EUR million note 31 Dec 2022 31 Dec 2021
Non-current receivables
Loans receivable 18 - 0.2
Other non-current receivables 3.4 3.0
Total 3.4 3.1
21. CHANGES IN DEFERRED TAX ASSETS AND LIABILITIES
2022
EUR million 1 Jan
Recognised
through profit
or loss
Recognised
through other
comprehensive
income 31 Dec
Deferred tax assets
Valuation of financial instruments at fair value 4.6 0.1 -4.3 0.4
Periodisation and temporary differences 5.8 -0.2 - 5.6
Total 10.4 -0.1 -4.3 6.0
Deferred tax liabilities
Valuation of investment properties at fair value 372.8 -5.6 -1.1 366.1
Valuation of financial instruments at fair value 1.2 -0.3 7.8 8.8
Reclassification of housing provisions and depreciation differences 41.1 -4.5 - 36.6
Periodisation and temporary differences 0.0 - - 0.0
Allocated acquisition costs 1.6 - - 1.6
Total 416.8 -10.3 6.6 413.1
2021
EUR million 1 Jan
Recognised
through profit
or loss
Recognised
through other
comprehensive
income 31 Dec
Deferred tax assets
Valuation of financial instruments at fair value 8.5 -0.1 -3.8 4.6
Periodisation and temporary differences 5.8 0.0 - 5.8
Total 14.2 -0.1 -3.8 10.4
Deferred tax liabilities
Valuation of investment properties at fair value 338.1 34.6 0.1 372.8
Valuation of financial instruments at fair value 1.7 -0.5 0.0 1.2
Reclassification of housing provisions and depreciation differences 45.7 -4.6 - 41.1
Periodisation and temporary differences 0.0 - - 0.0
Allocated acquisition costs 1.6 - - 1.6
Total 387.2 2 9.5 0.1 416.8
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22. ACCOUNTS RECEIVABLE AND OTHER RECEIVABLES
EUR million note 31 Dec 2022 31 Dec 2021
Accounts receivable and other receivables
Accounts receivable 18 5.4 5.0
Prepaid expenses and accrued income 4.0 2.7
Other receivables 4.3 11.3
Total 13.6 19.1
31 Dec 2022
EUR million Gross amount
Expected
credit loss Carrying amount
Ageing structure of accounts receivable
Not due and less than one month overdue 3.6 -0.6 3.0
1 to 6 months overdue 2.1 -0.6 1.5
More than 6 months overdue 1.9 -1.1 0.9
Total 7.6 -2.2 5.4
31 Dec 2021
EUR million Gross amount
Expected
credit loss Carrying amount
Ageing structure of accounts receivable
Not due and less than one month overdue 3.4 -0.4 3.0
1 to 6 months overdue 1.7 -0.5 1.2
More than 6 months overdue 1.9 -1.1 0.8
Total 7.0 -1.9 5.0
SATO recognises the allowance for bad debts for accounts receivable according to IFRS 9. For measurement of the impairment of accounts
receivable, the Group applies the simplified approach allowed by the standard, whereby it makes an assessment of the lifetime expected
credit losses for its accounts receivable at each reporting date, and based on this assessment, recognises the impairment through profit
and loss. The recorded allowance for bad debts amounted to EUR 2.2 million (1.9) at the end of the period.
EUR million note 31 Dec 2022 31 Dec 2021
Specification of prepaid expenses and accrued income
Prepaid expenses and accrued income related to rental services 0.0 0.0
Prepaid expenses and accrued income related to new constructions 0.0 0.0
Prepayments 0.9 0.4
Purchase price receivables 0.8 0.8
Interest receivables 1.8 0.4
Derivative assets 27 0.2 -
Other 0.2 0.9
Total 4.0 2.7
23. CASH AND CASH EQUIVALENTS
EUR million note 31 Dec 2022 31 Dec 2021
Cash and cash equivalents 18 60.5 8.5
Total 60.5 8.5
The cash assets of group companies subject to non-profit restrictions are kept separately from other companies' cash assets. At the
reporting date, such restricted companies' cash assets totalled EUR 2.7 million (1.2).
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24. SHAREHOLDERS' EQUITY
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
The following dividend and repayment of capital were declared and paid during the period:
Dividends, EUR 0.50 (0.50) per share -28.3 -28.3
Total -28.3 -28.3
No capital repayments were made by SATO in 2022 or 2021.
Description of items in shareholders' equity
Shares and share capital
As of 31 December 2022, the share capital of SATO Corporation totalled EUR 4,442,192, fully paid and divided into 56,783,067 shares. The
number of own shares held by the company at the reporting date was 166,000. SATO has one class of shares, each of which entitles one
vote at the Annual General Meeting. The shares do not have a nominal value.
During the period, there were no changes in the number of the company's shares. At the reporting date 31 December 2022, the Board of
Directors did not have authorisations to acquire or issue the company's own shares.
Reserve fund
Reserve fund includes share premium fund.
Fair value reserves
Fair value reserves include changes in the fair value of financial instruments used in cash flow hedge accounting and fair valuation of
available-for-sale financial assets.
Reserve for invested non-restricted equity
Reserve for invested non-restricted equity includes other equity investments and the subscription price of shares, to the extent that it is not
recorded in share capital.
Dividends
After the balance sheet date of 31 December 2022, the Board of Directors has proposed a dividend distribution of EUR 0.00 per share
(0.50).
Restrictions concerning SATO's shareholders' equity
SATO's retained earnings at the end of the period, EUR 2,286.6 million (2,205.1), included distribution-restricted capital totalling EUR 179.4
million (195.3) attributable to subsidised, non-profit businesses. The figure includes the share of the change in the fair value reported in the
income statement. Part of the Group companies are under statutory, non-profit restrictions according to which a company is allowed to
distribute only a regulated amount of capital.
Management of capital structure
The aim of SATO's management of capital structure is to support the growth targets and to secure the ability to pay dividends. Another
aim is to ensure SATO's prospects of operating in the equity market. SATO's targeted equity ratio measured at fair value is at least 40%.
At the end of the period, SATO's equity ratio measured at fair value was 47.8% (46.2). The Board of Directors reviews and assesses SATO's
capital structure regularly.
Some of SATO's interest-bearing financial agreements include covenants relating to capital structure and profitability (see note 30). SATO
complied with the capital structure and profitability covenants during the reporting period.
25. LONG-TERM NON-INTEREST-BEARING LIABILITIES
The long-term non-interest-bearing liabilities, EUR 0.0 million (0.9), are related entirely to the Group's property development projects.
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26. FINANCIAL LIABILITIES
EUR million 31 Dec 2022 31 Dec 2021
Non-current
Corporate bonds 74 7.7 1,070.3
Bank loans 844.2 845.9
Interest-subsidised loans 103.8 129.4
State-subsidised ARAVA loans 25.9 30.9
Total 1,721.4 2,076.6
EUR million 31 Dec 2022 31 Dec 2021
Current
Corporate bonds 324.0 25.0
Bank loans 60.7 48.2
Interest-subsidised loans 20.0 9.6
State-subsidised ARAVA loans 4.8 5.1
Commercial papers 14.8 5.0
Total 424.2 92.9
Total 2,145.7 2,169.5
During the reporting period, a total of EUR 137.3 million (101.2) of new long-term debt was drawn. At the reporting date, the average
interest on the SATO debt portfolio was 2.3% (1.7).
For purposes of short-term financing, SATO has a commercial paper programme of EUR 400.0 million (400.0), of which EUR 385.0 million
(395.0) were unused, committed credit limits of EUR 700.0 million (350.0), of which EUR 700.0 million (350.0) were unused, and a non-
committed current overdraft limit of EUR 5.0 million (5.0), of which EUR 5.0 million (5.0) were unused. Additionally, SATO’s liquidity was
secured by EUR 130.0 million unused and committed long-term loan facilities.
Corporate bonds include the following bonds issued by SATO Corporation: EUR 300 million unsecured bond maturing on 7 April 2023
and carrying a fixed annual coupon of 2.25%, EUR 350 million unsecured bond maturing on 31 May 2024 and carrying a fixed annual
coupon of 1.375%, EUR 350 million unsecured bond maturing on 24 February 2028 and carrying a fixed annual coupon of 1.375% and
EUR 50 million unsecured bond maturing on 12 June 2030 and carrying a fixed annual coupon of 2.45%. The bonds are listed on the Irish
Stock Exchange and have a public BBB credit rating from Standard & Poor's. Corporate bonds also include the secured bond issued by
SATO Corporation. The EUR 24 million secured bond issued in 2013 will mature in June 2023, and it carries an annual interest consisting of
a margin and a floating Euribor rate. The secured bond is listed on Nasdaq Helsinki Ltd, and it does not have credit rating.
27. DERIVATIVES
Fair values of derivative instruments
EUR million Positive Negative
31 Dec 2022
Net Positive Negative
31 Dec 2021
Net
Non-current
Interest rate swaps, cash flow hedge 38.7 - 38.7 - -20.1 -20.1
Non-current derivatives, total 38.7 - 38.7 - -20.1 -20.1
Current
Interest rate swaps, cash flow hedge 0.2 0.0 0.2 - -1.2 -1.2
Current derivatives, total 0.2 0.0 0.2 - -1.2 -1.2
Derivatives, total 38.9 0.0 38.8 - -21.3 -21.3
EUR million 31 Dec 2022 31 Dec 2021
Nominal values of derivative instruments
Interest rate swaps, cash flow hedge 447.5 510.9
Total 447.5 510.9
Change in fair value of designated interest rate hedges, booked to hedge reserve in other comprehensive income, totalled EUR
48.1 million (15.1). Interest rate swaps are used to hedge interest cash flows against fluctuations in market interest rates. SATO also hedges
the interest rate risk with forward start swaps. On the reporting date, the forward start swaps amounted to EUR 0.0 million (100.0) in
nominal value. Interest rate hedges have maturities ranging mainly between 1–10 years. Typically netting agreements are applied to
derivative contracts, however, the contracts are represented in gross value in financial statements. The method of presentation has no
significant impact on figures on reporting or comparative periods.
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28. PROVISIONS
EUR million 2022 2021
Provision for refund claims, 1 Jan 2.2 2.9
Increases 0.5 1.1
Provisions used -0.5 -1.6
Reversals -0.2 -0.2
Provision for refund claims, 31 Dec 2.0 2.2
EUR million 31 Dec 2022 31 Dec 2021
Non-current provisions 1.5 1.6
Current provisions 0.5 0.6
Total 2.0 2.2
The provision for refund claims includes guarantees related to new construction business and a 10-year warranty period after completion
of the work. The provision for refund claims is measured based on previous claims and an assessment of previous experience. The
provision for refund claims will be used, if applicable, within 10 years from the reporting date. SATO has no other provisions on 31
December 2022.
29. ACCOUNTS PAYABLE AND OTHER LIABILITIES
EUR million note 31 Dec 2022 31 Dec 2021
Accounts payable and other liabilities
Advances received 9.1 10.8
Accounts payable 18 12.2 12.0
Other liabilities 3.9 5.5
Accrued expenses and prepaid income 44.1 39.0
Total 69.3 67.3
EUR million note 31 Dec 2022 31 Dec 2021
Accrued expenses and prepaid income
Personnel expenses 5.3 4.3
Interest expenses 17.6 15.7
Derivative instruments 27 0.0 1.2
Accrued expenses and prepaid income related to new constructions 2.5 3.7
Accrued expenses and prepaid income related to rental services 16.5 12.6
Other accrued expenses 2.2 1.4
Other 0.0 0.1
Total 44.1 39.0
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30. FINANCIAL RISK MANAGEMENT
The goal of SATO’s financial risk management is to protect the company from unfavourable changes occurring in the financial markets.
The main principles of financing and financial risk management are set out in the Treasury Policy, approved by the Board of Directors.
SATO Treasury is responsible for the management of financial risks in accordance with the Treasury Policy. SATO Treasury reports to the
CFO, who is responsible for organising and managing the duties associated with the financing and financial risk management, as well as
ensuring compliance with the principles set in the Treasury Policy.
Interest rate risk
The most significant of SATO market risks is the impact of market interest rate fluctuation on interest cash flows. To manage interest rate
risk, the proportions of fixed and floating rate instruments are balanced in such a way that the risk of a rise in interest expenses is at an
acceptable level and liquidity is secured. Interest rate risk is primarily attributable to market-based loans, but the interest rate risk of other
types of financial liabilities is also monitored.
Market-based loans are primarily drawn at floating rates. In accordance with the Treasury Policy, the interest rate risk arising from these
contracts is hedged using derivative instruments, mainly interest rate swaps and options, so that when hedging is applied, the fixed rate
portion exceeds 60.0% of the nominal value of the total loan portfolio. On 31 December 2022, the fixed rate portion of the loan portfolio
after hedging was 72.7% (69.2), with the average maturity being 3.3 years (4.0).
The interest rate derivatives are accounted for as designated cash flow hedges. No ineffectiveness has occurred, as the hedged items
and the hedging instruments have the same interest periods. The effect of changes in market interest rates on net financial expenses is
examined in the "sensitivity analysis" table below.
Changes in market interest rates also affect interest expense on interest-subsidised loans. However, in interest-subsidised loans, a
subsidy is received for the part exceeding the deductible rate, so the risk of increases in interest rates for interest-subsidised loans are
considerably lower than for market-based loans. The deductible rate on interest-subsidised loans varies between 2.75% to 3.50% and on
the so-called interim model interest-subsidy loans, funded in years 2009 to 2011, is 3.40%. A major part of the interest-subsidised loans is
tied to long reference rates, ranging from 3 to 10 years. Due to the subsidies and long reference rates, the interest rate risk on these loans
is not material. In accordance with the Treasury Policy, SATO does not apply hedging to interest-subsidised loans.
In operations financed with state subsidies, rents are based on absorption cost, and hence any interest risk can be transferred to the rents.
The interest on state-subsidised ARAVA loans is pegged to changes in Finnish consumer prices. The ARAVA rate is fixed in advance for the
following financial period and hence there is no uncertainty about the following period's interest expense. Some state-subsidised loans
have an interest rate cap, the level of which is based on the interest rate of government 10-year bonds. A risk in state-subsidised ARAVA
loans is a substantial increase in interest, which would be difficult to transfer in its entirety to rents without delay.
Currency risk
SATO is exposed to both transaction and translation risks due to investments in St. Petersburg. Transaction risk arises mainly from rouble-
denominated purchase agreements. Committed agreements are fully hedged with currency forward contracts, which are accounted for as
cash flow hedges. On the financial statement date, SATO didn't have any rouble-denominated commitments related to the investments.
The translation risk, i.e. the consolidation of foreign currency-denominated subsidiary accounts, arises due to the investment properties
in St. Petersburg. The fair values of the properties are translated to euros in consolidated financial statements using the closing exchange
rate on the reporting date. The Group has no foreign currency-denominated loans at the moment.
Price risk
At present, SATO has no items which might be subject to significant price risk.
Credit risk
SATO is not exposed to significant concentrations of credit risk. The majority of SATO’s accounts receivable consists of rent receivables.
SATO has over 25,000 tenants, so the risk entailed in a single receivable is insignificant. The use of a security deposit decreases the credit
risk associated with rent receivables. SATO’s actual credit losses have averaged the equivalent of 0.9% (1.2) of rental income. In addition,
treasury functions, such as liquidity investments and derivative instruments, involve a counterparty risk, which is reduced by the careful
selection of counterparties and by diversification of contracts among a number of counterparties.
Liquidity risk
The Group constantly monitors the amount of financing demanded for business operations so that the adequacy of financing will be
assured in all circumstances. The cash flow of the operative business is steady and fluctuation mainly arises from investment activities.
Liquidity is managed with the commercial paper programme of EUR 400.0 million (400.0), committed credit limits of EUR 700.0 million
(350.0), and non-committed credit limits, EUR 5.0 million (5.0). On 31 December 2022, the commercial papers issued amounted to EUR
15.0 million (5.0) in nominal value. The credit facilities in use were EUR 0.0 million (0.0). Additionally, SATO’s liquidity was secured by EUR
130.0 million unused and committed long-term loan facilities. In liquidity management, it is taken into account that the assets of Group
companies subject to non-profit restrictions due to interest subsidies or state-subsidised ARAVA loans are kept separately and allocated to
those non-profit operations.
Standard & Poor's has assigned SATO with BBB credit rating with a negative outlook. With the investment grade credit rating, SATO aims
to widen the investor base and to further limit dependency on any single financing counterparties.
SATO's funding agreements contain covenant clauses relating to the Group's capital structure and interest payment capacity. These
clauses set a ratio of unencumbered assets to total assets of at least 42.5%, a solvency ratio maximum of 65.0%, a secured solvency ratio
maximum of 45.0%, an interest coverage ratio of at least 1.8 and unencumbered assets to unsecured debt at least 150%. At the reporting
date, the ratio of unencumbered assets was 89.2% (87.5), the solvency ratio was 40.7% (42.5), the secured solvency ratio was 5.0% (7.2),
the interest coverage ratio was 8.2 (4.1) and unencumbered assets to unsecured debt was 244.3%.
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Sensitivity analysis, interest rate risk
31 Dec 2022 31 Dec 2021
Profit and Loss Equity Profit and Loss Equity
EUR million 0.1% -0.1% 0.1% -0.1% 0.1% -0.1% 0.1% -0.1%
Floating rate loans -1.0 1.0 - - -0.2 0.2 - -
Interest rate swaps 0.4 -0.4 1.5 -1.5 0.4 -0.4 2.5 -2.5
Total -0.6 0.6 1.5 -1.5 0.2 -0.2 2.5 -2.5
Maturity analysis on financial instruments
31 Dec 2022
Within
1 year
2–5
years
6–10
years
11–15
years
After 15
years Total
Financial liabilities
Market-based loans -457.6 -1,211.8 -523.1 -27.6 -12.7 -2,232.8
Interest-subsidised loans -23.3 -37.7 -50.6 -23.1 -2.9 -137.6
State-subsidised ARAVA loans -4.9 -1 9.5 -4.7 -0.1 0.0 -29.2
Accounts payable -12.2 - - - - -12.2
Financial liabilities total -497.9 -1,269.0 -578.4 -50.8 -15.7 -2,411.8
Derivative contracts
Interest rate derivatives -4.2 -15.5 -4.5 -1.9 -1.1 -27.2
Derivative contracts total -4.2 -15.5 -4.5 -1.9 -1.1 -27.2
Lease liabilities
From land lease agreements -3.9 -15.7 -19.4 -1 9.0 -69.0 -127.1
From other lease agreements -1.1 -4.2 -0.1 0.0 0.0 -5.4
Lease liabilities total -5.1 -19.9 -19.5 -19.0 - 69.0 -132.5
Total -507.1 -1,304.4 -602.4 -71.7 -85.8 -2,571.5
31 Dec 2021
Within
1 year
2–5
years
6–10
years
11–15
years
After 15
years Total
Financial liabilities
Market-based loans -110.1 -1,470.2 -528.1 -27.5 -19.9 -2,155.7
Interest-subsidised loans -10.3 -44.3 -48.2 -27.3 -4.6 -134.6
State-subsidised ARAVA loans -5.3 -17.3 -11.0 -1.6 -0.1 -35.2
Accounts payable -12.0 - - - - -12.0
Financial liabilities total -137.7 -1,531.7 -587.3 -56.3 -24.5 -2,337.5
Derivative contracts
Interest rate derivatives -7.9 -15.1 -5.3 -1.6 -1.3 -31.1
Derivative contracts total -7.9 -15.1 -5.3 -1.6 -1.3 -31.1
Lease liabilities
From land lease agreements -3.9 -15.6 -19.2 -19.1 -72.9 -130.6
From other lease agreements -1.3 -4.0 -1.1 - - -6.4
Lease liabilities total -5.2 -19.6 -20.2 -19.1 -72.9 -137.0
Total -150.8 -1,566.4 -612.8 -76.9 -98.7 -2,505.7
The above figures represent contractual, non-discounted cash flows, including interest payments.
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31. NOTES TO THE CASH FLOW STATEMENT
EUR million note 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Non-cash items included in the profit
Depreciation and amortisation 8 3.9 3.3
Gains and losses from changes in fair value of investment properties 13 14.9 -129.1
Change in provisions 28 -0.2 -1.4
Share of profit of associated companies and joint ventures 0.0 0.0
Total 18.7 -12 7.1
EUR million 2022 2021
Changes in interest-bearing debt during the period
Interest-bearing debt, 1 Jan 2,169.5 2,381.5
Cash changes in interest-bearing debt during the period, total -27.1 -212.6
Non-cash changes:
Change in foreign exchange rates 0.0 -0.7
Interest accrued by the effective interest rate method 2.7 2.4
Transfers of debt to buyers upon disposals of investment property and other
adjustments 0.6 -1.1
Interest-bearing debt, 31 Dec 2,145.7 2,169.5
32. COLLATERAL, COMMITMENTS AND CONTINGENCIES
EUR million 31 Dec 2022 31 Dec 2021
Mortgages and pledges for secured borrowings
Secured borrowings 254.0 366.5
Pledges and mortgages provided, fair value 557.5 634.4
Guarantees for others
Rs-guarantees 1.9 1.8
Other collateral provided
Mortgages provided to secure payment of rent and street maintenance 6.4 6.6
Guarantees and mortgages provided to secure payments of land use contracts 1.9 8.4
Binding purchase agreements
For acquisitions of investment properties 114.3 96.8
Pledges for land use payments on zoned plots 0.6 0.9
Letters of intent on properties under development for which there is a zoning or
other condition 70.5 65.7
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33. RELATED PARTY TRANSACTIONS
SATO Group’s related party consists of SATO Corporation, its parent company, sister companies, subsidiaries, joint ventures and associated
companies. SATO's related party includes shareholders that have direct or indirect control or joint control or significant influence or are a
member of the key management personnel of the reporting entity or of a parent of the reporting entity or are a close family member of
the key management personnel. Shareholders whose holding is 20% or more are automatically considered as a related party of SATO.
When ownership is below 20%, shareholders are considered as a related party when they have considerable influence on the reporting
entity, for example through a position on the Board of Directors.
Shareholders that are considered as SATO's related party in 2022 are Balder Finska Otas AB, other Balder-group companies (parent
company: Fastighets AB Balder), Erik Selin Fastigheter AB, Stichting Depositary APG Strategic Real Estate Pool together with its parent
company and asset manager (parent company: Stichting Pensioenfonds ABP, >95%; asset manager: APG Asset Management NV) and Elo
Mutual Pension Insurance Company.
The members of the Board of Directors of SATO Corporation, the CEO and other members of the Extended Corporate Management
Group and their close family members and the entities controlled or jointly controlled by them and joint venture SV-Asunnot Oy are
considered as SATO's related party. The Extended Corporate Management Group comprises SATO Corporation’s President and CEO;
EVP, Investments; Commercial Director; Chief Financial Officer; EVP, Housing Business; Chief Digital Officer; VP, Human Resources and VP,
General Counsel.
On 30 March 2022, SATO Corporation has received an unsecured revolving credit facility from Fastighets AB Balder in the amount of
EUR 350 million, with the maturity on 31.3.2024. No withdrawals from the facility were made during the period.
The terms and conditions used in the related party transactions are equivalent to the terms used in transactions between independent
parties.
EUR million 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Extended Management Group employee benefits
Salaries and other short-term employee benefits 1.7 1.3
Total 1.7 1.3
EUR thousands 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Compensation paid to the members of the Board of Directors and the President & CEO
Managing Director 375.5 398.5
Erik Selin 41.5 43.0
Jukka Hienonen (till 25 March 2021) - 9.0
Esa Lager 27.0 26.2
Tarja Pääkkönen 24.0 25.5
Timo Stenius 23.0 23.5
Johannus (Hans) Spikker 22.5 23.5
Sharam Rahi (starting from 25 March 2021) 24.5 13.3
Total 538.0 562.5
Incentive schemes
Persons employed by SATO Group are not paid separate remuneration when serving as a member of the Board of Directors or as a
President of a Group company. The members of SATO's Corporate Management Group and SATO's other management are covered by
an annual incentive scheme based on the SATOs profit and fulfilment of the targets for their respective areas of responsibility.
In addition to the members of the Corporate Management Group, the incentive scheme covers around 25 SATO employees in executive,
managerial and expert roles. The terms and conditions of the incentive scheme and the payment of performance bonuses are approved
by the Board of Directors. The aim of the incentive scheme is to harmonize the objectives of shareholders, management and key persons,
bolster the commitment of key persons, improve competitiveness and promote long-term financial success.
34. BORROWING COSTS
note 31 Dec 2022 31 Dec 2021
Capitalised expenses of borrowing costs during the period, EUR million 13 1.9 1.2
Financial expense index, % 2.0 2.0
35. SUBSEQUENT EVENTS
Chief Commercial Office Janne Ojalehto left the company 27 January 2023. No other significant events after the end of the reporting
period.
SATO's Annual report 2022 | 45
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Financial statements ||
36. SUBSIDIARIES OWNED BY THE GROUP AND PARENT COMPANY
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Holding percentages are the same as voting rights.
Subsidiaries held by SATO Corporation
Sato-Asunnot Oy 100.0 100.0
Sato-Rakennuttajat Oy 100.0 100.0
Sato-Joustokoti Oy 100.0 100.0
Sato-Hallintopalvelut Oy 100.0 100.0
Sato-Pysäköinti Oy 100.0 100.0
SATOkoti Oy 100.0 100.0
SATOkoti 21 Oy 100.0 100.0
SATOkoti 23 Oy 100.0 100.0
SATOkoti 24 Oy 100.0 100.0
Suomen Vuokrakodit 3 Oy 100.0 100.0
Suomen Satokodit 21 Oy 100.0 100.0
Suomen Satokodit 22 Oy 100.0 100.0
Suomen Satokodit 24 Oy 100.0 100.0
Sato VK 21 Oy 100.0 100.0
Sato VK 22 Oy 100.0 100.0
Vatrotalot 2 Oy 100.0 100.0
Vatrotalot 5 Oy 100.0 100.0
Uusi Sarfvik Oy 60.0 18.3
Sarfvikin Vesialue Oy 60.0 18.3
Joint ventures and associated companies
SV-Asunnot Oy 50.0 50.0
Other shares
Asunto Oy Kirkkonummen Metsätähdenkuja 5 60.0 18.3
Asunto Oy Kirkkonummen Sarvvikintie 4 100.0 18.3
Asunto Oy Kirkkonummen Sinikellontie 5 60.0 18.3
Asunto Oy Kirkkonummen Ukonkellonkuja 3 60.0 18.3
Kiinteistö Oy Espoon Aallonrivi 100.0 100.0
Kiinteistö Oy Kirkkonummen Sarvvikinportti 60.0 6.8
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Kiinteistö Oy Kunnankero 100.0 100.0
Kiinteistö Oy Outakessa 100.0 100.0
Kiinteistö Oy Vantaan Sato-Kartano 100.0 100.0
Companies held by subsidiaries
Sato-Asunnot Oy
As Oy Espoon Suvikäytävä 29.9 29.9
As Oy Kuhakartano 0.7 0.7
As Oy Tampereen Kuikankatu 2 9.7 9. 7
As. Oy Helsingin Lintulahdenpuisto 100.0 100.0
As. Oy Kotipiennar 2.8 2.8
As. Oy Matinraitti 14 1.0 1.0
As. Oy Näkinkuja 2 2.5 2.5
As. Oy Näsinlaine 1.0 1.0
As. Oy Peltohuhta 1.2 1.2
As. Oy Turun Tallgreninkartano 23.7 23.7
As. Oy Urheilukatu 38 56.0 56.0
As. Oy Valtapolku 1.2 1.2
Asunto – Oy 4 linja 24 33.6 33.6
Asunto O.Y. Kasarmikatu 14 – Bostads A.B. Kasärngatan 14 12.2 12.2
Asunto O.Y. Linjala 14 4.2 4.2
Asunto O/Y Pihlajatie N:o 23 3.0 3.0
Asunto Oy Agricolankuja 3 3.0 3.0
Asunto Oy Agricolankuja 8 82.3 82.3
Asunto Oy Agricolankulma 0.8 0.8
Asunto Oy Albertus 1.1 1.1
Asunto Oy Erkintalo 1.1 1.1
Asunto Oy Espoon Hassel 4.4 4.4
Asunto Oy Espoon Honkavaarantie 5 10.3 10.3
Asunto Oy Espoon Interior 11.4 11.4
Asunto Oy Espoon Kaupinkalliontie 5 47.8 47.8
Asunto Oy Espoon Kivenhakkaajankuja 3 2.3 2.3
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Financial statements ||
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Asunto Oy Espoon Kuunkierros 2 9.3 9.3
Asunto Oy Espoon Myötätuulenmäki 8.5 8.5
Asunto Oy Espoon Niittyhuippu 28.1 28.1
Asunto Oy Espoon Numersinkatu 11 18.8 18.8
Asunto Oy Espoon Omenapuu 16.0 16.0
Asunto Oy Espoon Paratiisiomena 18.3 18.3
Asunto Oy Espoon Puropuisto 58.4 55.8
Asunto Oy Espoon Rastaspuistonpolku 22.6 22.6
Asunto Oy Espoon Rastaspuistontie 8 7.3 7.3
Asunto Oy Espoon Ristiniementie 22 8.2 5.4
Asunto Oy Espoon Ruorikuja 4 3.8 3.8
Asunto Oy Espoon Satokallio 11.6 11.6
Asunto Oy Espoon Saunalyhty 6.8 6.8
Asunto Oy Espoon Sokerilinnantie 1 5.8 4.3
Asunto Oy Espoon Säterinkatu 10 1 9.1 6.1
Asunto Oy Espoon Vanharaide 90.1 90.1
Asunto Oy Espoon Vasaratörmä 5.2 5.2
Asunto Oy Espoon Yläkartanonpiha 10.9 10.9
Asunto Oy Haagan Pappilantie 13 2.6 2.6
Asunto Oy Hakaniemenranta 2.5 2.5
Asunto Oy Hannanpiha 19.1 19.1
Asunto Oy Harjulehmus 7.1 7.1
Asunto Oy Helkalax 1.3 1.3
Asunto Oy Helsingin Akaasia 13.9 13.9
Asunto Oy Helsingin Apollonkatu 19 38.2 38.2
Asunto Oy Helsingin Arabian Kotiranta 4.2 4.2
Asunto Oy Helsingin Arabiankatu 3 13.4 13.4
Asunto Oy Helsingin Casa Canal 13.3 13.3
Asunto Oy Helsingin Cirrus 1.7 1.7
Asunto Oy Helsingin Corona 17.0 17.0
Asunto Oy Helsingin Eiranrannan Estella 30.8 30.8
Asunto Oy Helsingin Eliel Saarisen Tie 10 96.1 96.1
Asunto Oy Helsingin Finniläntalo 80.2 80.2
Asunto Oy Helsingin Follow 0.0 0.0
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Asunto Oy Helsingin Gerbera 12.7 12.7
Asunto Oy Helsingin Happiness 22.2 22.2
Asunto Oy Helsingin Hildankulma 80.1 80.1
Asunto Oy Helsingin Isopurje 3.2 3.2
Asunto Oy Helsingin Kaivonkatsojantie 2 16.4 16.4
Asunto Oy Helsingin Kalevankatu 53 6.6 6.6
Asunto Oy Helsingin Kalliolinna 0.8 0.8
Asunto Oy Helsingin Kanavaranta 8.8 8.8
Asunto Oy Helsingin Kerttulinkuja 1 7.5 7.5
Asunto Oy Helsingin Kokkosaarenkatu 4 20.8 20.8
Asunto Oy Helsingin Koralli 4.1 4.1
Asunto Oy Helsingin Koroistentie 9. 4 9. 4
Asunto Oy Helsingin Kultareuna 1 39.0 39.0
Asunto Oy Helsingin Kuusihovi 25.4 25.4
Asunto Oy Helsingin Kyläkirkontie 13 68.5 68.5
Asunto Oy Helsingin Köysikuja 2 9. 5 9.5
Asunto Oy Helsingin Laivalahdenkaari 1 85.4 85.4
Asunto Oy Helsingin Leikopiha 9.6 9.6
Asunto Oy Helsingin Leikosaarentie 31 18.7 18.7
Asunto Oy Helsingin Leikovuo 9.1 9.1
Asunto Oy Helsingin Lönnrotinkatu 32 55.1 55.1
Asunto Oy Helsingin Mariankatu 19 1.0 1.0
Asunto Oy Helsingin Merenkävijä 5.1 5.1
Asunto Oy Helsingin Minna Canthinkatu 24 1.1 1.1
Asunto Oy Helsingin Mustankivenraitti 5 94.6 94.6
Asunto Oy Helsingin Myllypellonpolku 4 5.1 5.1
Asunto Oy Helsingin Mylläri 2.3 2.3
Asunto Oy Helsingin Nautilus 26.0 26.0
Asunto Oy Helsingin Nukkeruusunkuja 3 15.5 15.5
Asunto Oy Helsingin Otto Brandtin Polku 4 1.4 1.4
Asunto Oy Helsingin Pasilantornit 52.1 52.1
Asunto Oy Helsingin Pasuunatie 8 2.2 2.2
Asunto Oy Helsingin Perustie 16 56.1 56.1
Asunto Oy Helsingin Pirta 17.1 17.1
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Financial statements ||
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Asunto Oy Helsingin Porthaninkatu 4 0.7 0.7
Asunto Oy Helsingin Pumpputehdas 0.5 0.5
Asunto Oy Helsingin Puuskarinne 1 98.2 98.2
Asunto Oy Helsingin Päivöläntie 72 7.7 7.7
Asunto Oy Helsingin Rautahepo 100.0 100.0
Asunto Oy Helsingin Reginankuja 4 11.8 11.8
Asunto Oy Helsingin Rosas 9.6 9.6
Asunto Oy Helsingin Ruusutarhantie 2–4 30.7 30.7
Asunto Oy Helsingin Satoaalto 8.6 8.6
Asunto Oy Helsingin Satorinne 8.5 8.5
Asunto Oy Helsingin Serica 3.8 3.8
Asunto Oy Helsingin Solarus 5.9 5.9
Asunto Oy Helsingin Solnantie 22 98.0 71.0
Asunto Oy Helsingin Solnantie 22 98.0 2 7.0
Asunto Oy Helsingin Ståhlbergintie 4 93.5 93.5
Asunto Oy Helsingin Tapaninkulo 4.7 4.7
Asunto Oy Helsingin Tila 24.5 13.1
Asunto Oy Helsingin Tila 24.5 11.4
Asunto Oy Helsingin Topeliuksenkatu 29 4.6 4.6
Asunto Oy Helsingin Tunturinlinna 9.5 9.5
Asunto Oy Helsingin Töölön Oscar 25.3 25.3
Asunto Oy Helsingin Vanha Viertotie 16 68.8 68.8
Asunto Oy Helsingin Vanha Viertotie 18 42.8 42.8
Asunto Oy Helsingin Vanhanlinnantie 10 6.4 5.3
Asunto Oy Helsingin Villa Kuohu 25.6 25.6
Asunto Oy Hervannan Juhani 14.9 14.9
Asunto Oy Hiihtomäentie 34 3.7 3.7
Asunto Oy Humalniementie 3–5 1.1 1.1
Asunto Oy Iidesranta 42 Tampere 9.9 6.6
Asunto Oy Jukolanniitty 7.7 7.7
Asunto Oy Jussinhovi 3.5 3.5
Asunto Oy Järvenpään Alhonrinne 18.4 18.4
Asunto Oy Kaarinan Katariinankallio 35.8 23.5
Asunto Oy Kaarinan Kultarinta 39.8 26.5
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Asunto Oy Kalasataman Fregatti, Helsinki 25.3 25.3
Asunto Oy Kasarminkatu 10 26.7 26.7
Asunto Oy Kaukotie 10-12 3.1 3.1
Asunto Oy Kauniaisten Ersintie 9–11 5.5 5.5
Asunto Oy Kauniaisten Konsuli Bostads Ab 7.4 7. 4
Asunto Oy Ketturinne 1.3 1.3
Asunto Oy Kirkkosalmentie 3 0.9 0.9
Asunto Oy Kivisaarentie 2.7 2.7
Asunto Oy Kolehmaisentori 5.5 5.5
Asunto Oy Kulmavuorenrinne 1.0 1.0
Asunto Oy Kupittaan Kotka, Turku 10.9 10.9
Asunto Oy Kupittaan Kurki, Turku 6.1 6.1
Asunto Oy Kupittaan Peippo, Turku 34.6 34.6
Asunto Oy Kupittaan Satakieli, Turku 6.1 6.1
Asunto Oy Kuuselanpuisto 23.0 23.0
Asunto Oy Kuusihalme 2.3 2.3
Asunto Oy Kuusitie 15 1.5 1.5
Asunto Oy Kuusitie 3 1.8 1.8
Asunto Oy Lapinniemen Pallopurje 1.9 1.9
Asunto Oy Lapintalo 1.0 1.0
Asunto Oy Lappeenrannan Kanavansato 2 5.7 5.7
Asunto Oy Lauttasaarentie 11 1.6 1.6
Asunto Oy Lielahdentie 10 9.1 9.1
Asunto Oy Läntinen Brahenkatu 8 0.8 0.8
Asunto Oy Mannerheimintie 108 3.0 3.0
Asunto Oy Mannerheimintie 148 2.5 2.5
Asunto Oy Mannerheimintie 77 1.2 1.2
Asunto Oy Mannerheimintie 83–85 0.7 0.7
Asunto Oy Mannerheimintie 93 0.3 0.3
Asunto Oy Mellunsusi 1.5 1.5
Asunto Oy Messeniuksenkatu 8 2.0 2.0
Asunto Oy Messilä 70.0 70.0
Asunto Oy Muotialantie 31 7.0 7.0
Asunto Oy Myllysalama 5 9. 8 5 9. 8
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31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Asunto Oy Naantalin Kastovuorenrinne 16.7 16.7
Asunto Oy Neulapadontie 4 1.2 1.2
Asunto Oy Nokian Miharintie 38–40 13.1 13.1
Asunto Oy Nordenskiöldinkatu 8 2.5 2.5
Asunto Oy Näyttelijäntien Pistetalot 1.4 1.4
Asunto Oy Oskelantie 5 4.1 4.1
Asunto Oy Oskelantie 8 2.1 2.1
Asunto Oy Otavantie 4 1.8 1.8
Asunto Oy Oulun Arvolankartano 2.1 2.1
Asunto Oy Oulun Arvolanpiha 0.0 0.0
Asunto Oy Pengerkatu 27 2.6 2.6
Asunto Oy Pohjanpoika 8.0 8.0
Asunto Oy Poutuntie 2 3.7 3.7
Asunto Oy Puistokaari 13 1.9 1.9
Asunto Oy Puolukkasato 5.9 5.9
Asunto Oy Raikurinne 1 1.3 1.3
Asunto Oy Raision Tasontorni 39.3 39.3
Asunto Oy Raision Toripuisto 56.9 20.8
Asunto Oy Rantasentteri 1.5 1.5
Asunto Oy Risto Rytin Tie 28 Bostads Ab 1.5 1.5
Asunto Oy Ristolantie 7 2.5 2.5
Asunto Oy Riviuhkola 4.4 4.4
Asunto Oy Ryytikuja 5 0.8 0.8
Asunto Oy Saarenkeskus 0.4 0.4
Asunto Oy Salpakolmio 31.3 31.3
Asunto Oy Satakallio 0.2 0.2
Asunto Oy Satosorsa 19.9 1 9.9
Asunto Oy Savilankatu 1 b 33.3 33.3
Asunto Oy Solnantie 32 0.9 0.9
Asunto Oy Sompasaaren Priki 69.5 6 9.5
Asunto Oy Sulkapolku 6 0.4 0.4
Asunto Oy Säästökartano 0.3 0.3
Asunto Oy Taapuri 2.5 2.5
Asunto Oy Tallbergin Puistotie 1 2.0 2.0
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Asunto Oy Tammitie 21 0.9 0.9
Asunto Oy Tampereen Charlotta 2.0 2.0
Asunto Oy Tampereen Haapalinnan Antintalo 66.7 50.7
Asunto Oy Tampereen Kanjoninkatu 15 56.3 56.3
Asunto Oy Tampereen Kokinpellonrinne 2 86.9 86.9
Asunto Oy Tampereen Kristiina 19.1 19.1
Asunto Oy Tampereen Kyyhky 11.1 8.1
Asunto Oy Tampereen Rantatie 13 E–G 44.9 41.6
Asunto Oy Tampereen Rotkonraitti 6 48.2 48.2
Asunto Oy Tampereen Siirtolapuutarhankatu 12 5.6 5.6
Asunto Oy Tampereen Strada 46.6 46.6
Asunto Oy Tampereen Waltteri 23.9 23.9
Asunto Oy Tapiolan Itäkartano, Espoo 53.6 53.6
Asunto Oy Tapiolan Tuuliniitty Espoo 6.8 6.8
Asunto Oy Tarkkampujankatu 14 44.1 44.1
Asunto Oy Tasatuomo 1.3 1.3
Asunto Oy Terhokuja 6 11.3 11.3
Asunto Oy Tikkamatti 9.8 9.8
Asunto Oy Turun Asemanlinna 20.9 20.9
Asunto Oy Turun Eteläranta II 3.2 3.2
Asunto Oy Turun Eteläranta III 2.9 2.9
Asunto Oy Turun Eteläranta IV 3.0 3.0
Asunto Oy Turun Fregatinranta 4.7 4.7
Asunto Oy Turun Förinranta II 1.0 1.0
Asunto Oy Turun Ipnoksenrinne 6.7 6.7
Asunto Oy Turun Kivimaanrivi 6.5 6.5
Asunto Oy Turun Kiviniemenpuisto 0.5 0.5
Asunto Oy Turun Linnanhuippu 1.1 1.1
Asunto Oy Turun Linnanpuisto 8.8 8.8
Asunto Oy Turun Merenneito 24.7 14.6
Asunto Oy Turun Meripoika 40.8 26.0
Asunto Oy Turun Mietoistenkuja 9. 4 9. 4
Asunto Oy Turun Pernon Kartanonlaakso 21.8 21.8
Asunto Oy Turun Puutarhakatu 50 13.1 13.1
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31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Asunto Oy Turun Sipimetsä 8.5 8.5
Asunto Oy Turuntie 112 1.4 1.4
Asunto Oy Turuntie 63 1.6 1.6
Asunto Oy Töölön Estradi, Helsinki 63.0 63.0
Asunto Oy Töölön Gaala 50.3 50.3
Asunto Oy Ulpukkaniemi 25.4 25.4
Asunto Oy Vaasankatu 15 0.8 0.8
Asunto Oy Vallinkyyhky 6.0 6.0
Asunto Oy Vantaan Albert Petreliuksen Katu 8 7.7 7.7
Asunto Oy Vantaan Kilterinpuisto 51.5 51.5
Asunto Oy Vantaan Käräjäkuja 3 19.8 19.8
Asunto Oy Vantaan Lincolninaukio 4 A 100.0 100.0
Asunto Oy Vantaan Maarinrinne 12.0 12.0
Asunto Oy Vantaan Maarukanrinne 6 14.6 14.6
Asunto Oy Vantaan Minkkikuja 49.0 49.0
Asunto Oy Vantaan Orvokkitie 17 14.3 14.3
Asunto Oy Vantaan Pakkalanrinne 3 41.8 41.8
Asunto Oy Vantaan Pakkalanruusu 3.1 3.1
Asunto Oy Vantaan Raiviosuonmäki 7b 100.0 100.0
Asunto Oy Vantaan Ravurinmäki 33.2 33.2
Asunto Oy Vantaan Talvikkitie 38 96.1 96.1
Asunto Oy Vantaan Tammiston Tringa 8.3 8.3
Asunto Oy Vantaan Tammistonkatu 29 29.1 29.1
Asunto Oy Vantaan Tuurakuja 4 34.1 34.1
Asunto Oy Vantaan Tähkiö 33.2 33.2
Asunto Oy Vantaan Varikonaarre 3.3 3.3
Asunto Oy Vantaan Virtakuja 4 69.8 69.8
Asunto Oy Vaskivuorentie 12 Senioritalo Vantaa 1.2 1.2
Asunto Oy Viides Linja 16 1.1 1.1
Asunto Oy Viikinkisankari 31.1 31.1
Asunto Oy Vilhonvuorenkatu 8 - Bostads Ab Vilhelmsbergsgatan 8 1.1 1.1
Asunto Oy Vuomeren-Salpa 2.7 2.7
Asunto Oy Vuorastila 9 9.0 9 9.0
Asunto Oy Vuoreksen Vega, Tampere 83.8 83.8
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Asunto Oy Vuosaaren Meripihka Helsinki 42.7 42.7
Asunto Oy Välkynkallio 0.8 0.8
Asunto-Osakeyhtiö Amos 0.5 0.5
Asunto-Osakeyhtiö Arabian Valo, Helsinki 52.2 52.2
Asunto-Osakeyhtiö Fredrikinkatu 38 2.7 2.7
Asunto-Osakeyhtiö Haagan Talontie 4 3.1 3.1
Asunto-Osakeyhtiö Kristianinkatu 2 1.7 1.7
Asunto-Osakeyhtiö Kulmakatu 12 2.1 2.1
Asunto-Osakeyhtiö Kuusitie 9 2.3 2.3
Asunto-Osakeyhtiö Merimiehenkatu 41 Bostadsaktiebolag 1.6 1.6
Asunto-Osakeyhtiö Minna Canthin Katu 22 2.4 2.4
Asunto-Osakeyhtiö Mursu 0.5 0.5
Asunto-Osakeyhtiö Nervanderinkatu 9 2.6 2.6
Asunto-Osakeyhtiö Otavantie 3 0.6 0.6
Asunto-Oy Laajalahdentie 26 6.5 6.5
Asunto-Oy Mannerheimintie 100 0.9 0.9
Asunto-Oy Mariankatu 21 1.3 1.3
Asunto-oy Turun Linnankatu 37 a 1.7 1.7
Asunto-Oy Ulvilantie 11 b 0.6 0.6
Bostads Ab Björneborgsvägen 5 0.5 0.5
Bostads Ab Kajaneborg 7.3 7.3
Bostads Ab Kvarnhyddan 1.8 1.8
Bostads Ab Munksnäs N:o 25 Asunto Oy 14.1 14.1
Bostads Ab Spargäddan Asunto Oy 1.3 1.3
Bostadsaktiebolaget Lönegropen, Skidbacksvägen 18 1.6 1.6
Kiinteistö Oy Espoon Anna Sahlsténin katu 14 100.0 100.0
Kiinteistö Oy Espoon Anna Sahlsténin katu 7A 100.0 100.0
Kiinteistö Oy Espoon Elosalama 100.0 26.3
Kiinteistö Oy Espoon Elosalama 100.0 73.7
Kiinteistö Oy Espoon Heinjoenpolku 100.0 100.0
Kiinteistö Oy Espoon Henttaan puistokatu 6 100.0 100.0
Kiinteistö Oy Espoon Henttaan puistokatu 8 100.0 100.0
Kiinteistö Oy Espoon Hopeavillakko 100.0 100.0
Kiinteistö Oy Espoon Jousenkaari 5 100.0 100.0
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31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Kiinteistö Oy Espoon Jousenkaari 7 100.0 100.0
Kiinteistö Oy Espoon Kala-Maija 4 100.0 100.0
Kiinteistö Oy Espoon Kappelirinne 4 100.0 100.0
Kiinteistö Oy Espoon Kastevuoren Palvelutalo 100.0 100.0
Kiinteistö Oy Espoon Kilonkallionkuja 5 100.0 100.0
Kiinteistö Oy Espoon Kilvoituksentie 1 100.0 100.0
Kiinteistö Oy Espoon Kiskottajankuja 4 100.0 100.0
Kiinteistö Oy Espoon Kuunsirppi 100.0 100.0
Kiinteistö Oy Espoon Kyyhkysmäki 16 100.0 100.0
Kiinteistö Oy Espoon Kyyhkysmäki 9 100.0 100.0
Kiinteistö Oy Espoon Lansantie 3 100.0 100.0
Kiinteistö Oy Espoon Likusterikatu 1 D 100.0 100.0
Kiinteistö Oy Espoon Linnustajantie 17 100.0 100.0
Kiinteistö Oy Espoon Lounaismeri 100.0 100.0
Kiinteistö Oy Espoon Magneettikatu 8 100.0 100.0
Kiinteistö Oy Espoon Majurinkatu 3 100.0 100.0
Kiinteistö Oy Espoon Matinkylän Poutapilvi 100.0 100.0
Kiinteistö Oy Espoon Matinniitynkuja 8 100.0 100.0
Kiinteistö Oy Espoon Merituulentie 38 100.0 100.0
Kiinteistö Oy Espoon Nihtisillankuja 2 E–G 100.0 100.0
Kiinteistö Oy Espoon Niittymaantie 1 100.0 100.0
Kiinteistö Oy Espoon Niittymaantie 3 100.0 100.0
Kiinteistö Oy Espoon Niittysillankulma 2 C–D 100.0 100.0
Kiinteistö Oy Espoon Perkkaankuja 3 100.0 100.0
Kiinteistö Oy Espoon Porarinkatu 2 D–E 100.0 100.0
Kiinteistö Oy Espoon Porarinkatu 2 F 100.0 100.0
Kiinteistö Oy Espoon Puikkarinmäki 100.0 100.0
Kiinteistö Oy Espoon Pyhäjärventie 1 100.0 100.0
Kiinteistö Oy Espoon Rummunlyöjänkatu 11 D–E 100.0 100.0
Kiinteistö Oy Espoon Runoratsunkatu 15 100.0 100.0
Kiinteistö Oy Espoon Runoratsunkatu 5 100.0 100.0
Kiinteistö Oy Espoon Ruusulinna 100.0 100.0
Kiinteistö Oy Espoon Sepetlahdentie 6 100.0 100.0
Kiinteistö Oy Espoon Siniheinä 100.0 100.0
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Kiinteistö Oy Espoon Soukanniementie 1 100.0 100.0
Kiinteistö Oy Espoon Taivalmäki 5 100.0 100.0
Kiinteistö Oy Espoon Taivalrinne 100.0 100.0
Kiinteistö Oy Espoon Tähtimötie 100.0 100.0
Kiinteistö Oy Espoon Viherlaaksonranta 3–5 100.0 100.0
Kiinteistö Oy Espoon Viherlaaksonranta 7 100.0 100.0
Kiinteistö Oy Espoon Zanseninkuja 6 100.0 100.0
Kiinteistö Oy Helsingin Amiraalinkatu 2 100.0 100.0
Kiinteistö Oy Helsingin Ansaritie 1 100.0 100.0
Kiinteistö Oy Helsingin Ansaritie 2–4 100.0 100.0
Kiinteistö Oy Helsingin Ansaritie 3 100.0 100.0
Kiinteistö Oy Helsingin Atlantinkatu 12 100.0 100.0
Kiinteistö Oy Helsingin Aurinkotuulenkatu 6 100.0 100.0
Kiinteistö Oy Helsingin Capellan puistotie 21 100.0 100.0
Kiinteistö Oy Helsingin Castreninkatu 3 100.0 100.0
Kiinteistö Oy Helsingin Eura III 100.0 100.0
Kiinteistö Oy Helsingin Gadolininkatu 1 100.0 100.0
Kiinteistö Oy Helsingin Graniittitie 8 ja 13 100.0 100.0
Kiinteistö Oy Helsingin Hakaniemenkatu 9 100.0 100.0
Kiinteistö Oy Helsingin Heikkiläntie 10 100.0 100.0
Kiinteistö Oy Helsingin Hämeenpenger 100.0 100.0
Kiinteistö Oy Helsingin Ida Aalbergin Tie 3 A 100.0 100.0
Kiinteistö Oy Helsingin Ida Aalbergintie 1b 100.0 100.0
Kiinteistö Oy Helsingin Jokiniementie 46 100.0 100.0
Kiinteistö Oy Helsingin Jokiniementie 48 100.0 100.0
Kiinteistö Oy Helsingin Juhani Ahon Tie 12–14 100.0 100.0
Kiinteistö Oy Helsingin Junonkatu 4 100.0 100.0
Kiinteistö Oy Helsingin Kaarenjalka 5 100.0 100.0
Kiinteistö Oy Helsingin Kaarenjalka 5a 100.0 100.0
Kiinteistö Oy Helsingin Kangaspellontie 1–5 100.0 100.0
Kiinteistö Oy Helsingin Kaustisenpolku 1 100.0 100.0
Kiinteistö Oy Helsingin Kiillekuja 4 100.0 100.0
Kiinteistö Oy Helsingin Kirjala 100.0 100.0
Kiinteistö Oy Helsingin Klaavuntie 8–10 100.0 100.0
SATO's Annual report 2022 | 51
SATO 2022 | Report of the board of directors Governance
Financial statements ||
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Kiinteistö Oy Helsingin Koirasaarentie 45 100.0 100.0
Kiinteistö Oy Helsingin Koirasaarentie 47 100.0 100.0
Kiinteistö Oy Helsingin Korppaanmäentie 17 100.0 100.0
Kiinteistö Oy Helsingin Korppaanmäentie 21 100.0 100.0
Kiinteistö Oy Helsingin Kristianinkatu 11-13 100.0 100.0
Kiinteistö Oy Helsingin Kulmavuorenpiha 100.0 100.0
Kiinteistö Oy Helsingin Kutomotie 10a 75.5 75.5
Kiinteistö Oy Helsingin Kutomotie 12a 100.0 100.0
Kiinteistö Oy Helsingin Kutomotie 14 A 100.0 100.0
Kiinteistö Oy Helsingin Kutomotie 8a 100.0 100.0
Kiinteistö Oy Helsingin Lapponia 100.0 100.0
Kiinteistö Oy Helsingin Lauttasaarentie 19 58.3 58.3
Kiinteistö Oy Helsingin Leirikuja 3 100.0 100.0
Kiinteistö Oy Helsingin Lontoonkatu 9 100.0 100.0
Kiinteistö Oy Helsingin Malagankatu 7 100.0 100.0
Kiinteistö Oy Helsingin Mechelininkatu 12–14 100.0 100.0
Kiinteistö Oy Helsingin Meripellonhovi 98.3 98.3
Kiinteistö Oy Helsingin Mestari 100.0 100.0
Kiinteistö Oy Helsingin Navigatortalo 44.7 44.7
Kiinteistö Oy Helsingin Niittaajankadun Klaava 100.0 100.0
Kiinteistö Oy Helsingin Nils Westermarckin kuja 18 100.0 100.0
Kiinteistö Oy Helsingin Näkinkuja 6 100.0 100.0
Kiinteistö Oy Helsingin Näyttelijäntie 24 100.0 100.0
Kiinteistö Oy Helsingin Pajamäentie 6 100.0 100.0
Kiinteistö Oy Helsingin Pajamäentie 7 100.0 100.0
Kiinteistö Oy Helsingin Pakilantie 17 100.0 47.3
Kiinteistö Oy Helsingin Pakilantie 17 100.0 52.7
Kiinteistö Oy Helsingin Piispantie 3 100.0 100.0
Kiinteistö Oy Helsingin Piispantie 5 100.0 100.0
Kiinteistö Oy Helsingin Piispantie 7 100.0 100.0
Kiinteistö Oy Helsingin Piispantie 8 100.0 100.0
Kiinteistö Oy Helsingin Pääskylänrinne 100.0 100.0
Kiinteistö Oy Helsingin Rikhard Nymanin tie 3 100.0 100.0
Kiinteistö Oy Helsingin Riontähti 100.0 100.0
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Kiinteistö Oy Helsingin Rusthollarinkuja 2 100.0 100.0
Kiinteistö Oy Helsingin Sateenkaari 100.0 100.0
Kiinteistö Oy Helsingin Siltavoudintie 20 100.0 100.0
Kiinteistö Oy Helsingin Snellmaninkatu 23 100.0 85.2
Kiinteistö Oy Helsingin Snellmaninkatu 23 100.0 14.9
Kiinteistö Oy Helsingin Stenbäckinkatu 5 60.0 60.0
Kiinteistö Oy Helsingin Sähköttäjänkatu 6 100.0 100.0
Kiinteistö Oy Helsingin Tilkankatu 15 100.0 100.0
Kiinteistö Oy Helsingin Tilkankatu 2 100.0 100.0
Kiinteistö Oy Helsingin Tilkankatu 6 100.0 100.0
Kiinteistö Oy Helsingin Tulisuontie 20 100.0 100.0
Kiinteistö Oy Helsingin Vanha Viertotie 6 100.0 100.0
Kiinteistö Oy Helsingin Vanha Viertotie 8 100.0 100.0
Kiinteistö Oy Helsingin Venemestarintie 4 100.0 100.0
Kiinteistö Oy Helsingin Vervi 100.0 100.0
Kiinteistö Oy Helsingin Vetelintie 5 100.0 100.0
Kiinteistö Oy Helsingin Viulutie 1 100.0 100.0
Kiinteistö Oy Helsingin Vuosaaren Helmi 100.0 100.0
Kiinteistö Oy Helsingin Välskärinkatu 4 100.0 100.0
Kiinteistö Oy Järvenpään Kotokartano 100.0 100.0
Kiinteistö Oy Kaarinan Auranpihat 100.0 100.0
Kiinteistö Oy Kangasalan Unikkoniitty 100.0 100.0
Kiinteistö Oy Kapellimestarinparkki 9.1 9.1
Kiinteistö Oy Kauniaisten Ratapolku 6 100.0 100.0
Kiinteistö Oy Keravan Papintie 1 100.0 100.0
Kiinteistö Oy Kirkkonummen Sarvvikinportti 60.0 6.4
Kiinteistö Oy Kirkkonummen Sarvvikinrinne 4 100.0 100.0
Kiinteistö Oy Lempäälän Moisionaukea 25 100.0 100.0
Kiinteistö Oy Mannerheimintie 170 63.3 16.1
Kiinteistö Oy Mannerheimintie 170 63.3 47.2
Kiinteistö Oy Nekalanpuisto 2.9 2.9
Kiinteistö Oy Niittykummun Huippuparkki 36.5 36.5
Kiinteistö Oy Niittykummuntie 2 C 100.0 100.0
Kiinteistö Oy Nokian Virran Ritari 100.0 100.0
SATO's Annual report 2022 | 52
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Financial statements ||
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Kiinteistö Oy Pellervon Pysäköinti 16.0 16.0
Kiinteistö Oy Raikukuja II 100.0 100.0
Kiinteistö Oy Sammon Parkki 21.2 21.2
Kiinteistö Oy Tampereen Aitolahdentie 22 100.0 100.0
Kiinteistö Oy Tampereen Aitolahdentie 24 100.0 100.0
Kiinteistö Oy Tampereen Alapeusonkatu 6 100.0 100.0
Kiinteistö Oy Tampereen Atanväylä 4A 100.0 100.0
Kiinteistö Oy Tampereen Atanväylä 4B 100.0 100.0
Kiinteistö Oy Tampereen Hannulanpolku 10 100.0 100.0
Kiinteistö Oy Tampereen Heittoniitynkuja 5 100.0 100.0
Kiinteistö Oy Tampereen Hervannan Puistokallio 100.0 100.0
Kiinteistö Oy Tampereen Härmälänrannan Aurinkokallio 100.0 100.0
Kiinteistö Oy Tampereen Härmälänrannan Sisu 100.0 100.0
Kiinteistö Oy Tampereen Iidesranta 18 100.0 100.0
Kiinteistö Oy Tampereen Jankanpuisto 100.0 100.0
Kiinteistö Oy Tampereen Kaidanpääty 100.0 100.0
Kiinteistö Oy Tampereen Kauppa-aukio 100.0 100.0
Kiinteistö Oy Tampereen Linnanherra 100.0 100.0
Kiinteistö Oy Tampereen Pappilan Herra 100.0 100.0
Kiinteistö Oy Tampereen Puistofasaani 100.0 100.0
Kiinteistö Oy Tampereen Ruovedenkatu 11 100.0 100.0
Kiinteistö Oy Tampereen Sammon Kalervo 100.0 100.0
Kiinteistö Oy Tampereen Tarmonkatu 6 100.0 100.0
Kiinteistö Oy Tampereen Tieteenkatu 14 100.0 100.0
Kiinteistö Oy Tampereen Tuiskunkatu 7 100.0 100.0
Kiinteistö Oy Tohlopinkontu 100.0 60.0
Kiinteistö Oy Turun Gränsbackankuja 3 100.0 100.0
Kiinteistö Oy Turun Joutsenpuisto 7 100.0 100.0
Kiinteistö Oy Turun Kaivokatu 10 100.0 100.0
Kiinteistö Oy Turun Kuovi 100.0 100.0
Kiinteistö Oy Turun Kupittaan Kyyhky 100.0 100.0
Kiinteistö Oy Turun Marmoririnne 2 100.0 100.0
Kiinteistö Oy Turun Metallikatu 100.0 100.0
Kiinteistö Oy Turun Pryssinkatu 13 100.0 100.0
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Kiinteistö Oy Turun Ratavahdinrinne 100.0 100.0
Kiinteistö Oy Turun Rauhankatu 8 100.0 100.0
Kiinteistö Oy Turun Sato-Koto 100.0 100.0
Kiinteistö Oy Turun Sorakatu 9 100.0 100.0
Kiinteistö Oy Turun Sukkulakoti 100.0 100.0
Kiinteistö Oy Turun Tervaporvari 100.0 100.0
Kiinteistö Oy Turun Uudenmaanlinna 100.0 100.0
Kiinteistö Oy Turun Veistämöntori 100.0 100.0
Kiinteistö Oy Turun Westparkin Tuija 100.0 100.0
Kiinteistö Oy Tuusulan Pataljoonantie 3–5 100.0 100.0
Kiinteistö Oy Uudenmaantulli 24.3 24.3
Kiinteistö Oy Vallikallionpolku 100.0 100.0
Kiinteistö Oy Vantaan Aapramintie 4 100.0 100.0
Kiinteistö Oy Vantaan Havukoskenkatu 20 100.0 100.0
Kiinteistö Oy Vantaan Heporinne 4 100.0 100.0
Kiinteistö Oy Vantaan Hiekkaharjuntie 16 100.0 100.0
Kiinteistö Oy Vantaan Horsmakuja 4a 100.0 100.0
Kiinteistö Oy Vantaan Kaara 100.0 100.0
Kiinteistö Oy Vantaan Kaarenkunnas 100.0 100.0
Kiinteistö Oy Vantaan Kaarenlehmus 100.0 100.0
Kiinteistö Oy Vantaan Kesäniitty 100.0 100.0
Kiinteistö Oy Vantaan Kevätpuro 100.0 100.0
Kiinteistö Oy Vantaan Kivivuorentie 8 A–B 100.0 100.0
Kiinteistö Oy Vantaan Kivivuorentie 8 C 100.0 100.0
Kiinteistö Oy Vantaan Krassipuisto 100.0 100.0
Kiinteistö Oy Vantaan Kukinkuja 2 100.0 100.0
Kiinteistö Oy Vantaan Kärry 100.0 100.0
Kiinteistö Oy Vantaan Leksankuja 3 100.0 100.0
Kiinteistö Oy Vantaan Lummepiha 100.0 100.0
Kiinteistö Oy Vantaan Martinpääsky 100.0 100.0
Kiinteistö Oy Vantaan Myyrinhaukka 100.0 100.0
Kiinteistö Oy Vantaan Myyrinmutka 100.0 100.0
Kiinteistö Oy Vantaan Oritie 1 100.0 100.0
Kiinteistö Oy Vantaan Orvokkikuja 1a 100.0 100.0
SATO's Annual report 2022 | 53
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Financial statements ||
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Kiinteistö Oy Vantaan Orvokkikuja 1b 100.0 100.0
Kiinteistö Oy Vantaan Pakkalanportti 100.0 100.0
Kiinteistö Oy Vantaan Pakkalanrinne 5–7 100.0 100.0
Kiinteistö Oy Vantaan Peltolantie 14 100.0 100.0
Kiinteistö Oy Vantaan Pronssikuja 1 100.0 100.0
Kiinteistö Oy Vantaan Raikukuja 4B 100.0 100.0
Kiinteistö Oy Vantaan Ruostekuja 3 100.0 100.0
Kiinteistö Oy Vantaan Solkikuja 2 100.0 100.0
Kiinteistö Oy Vantaan Solkikuja 5 100.0 100.0
Kiinteistö Oy Vantaan Sompakuja 2–4 100.0 100.0
Kiinteistö Oy Vantaan Tempo 100.0 100.0
Kiinteistö Oy Vantaan Teodora 100.0 100.0
Kiinteistö Oy Vantaan Terhokuja 3 100.0 100.0
Kiinteistö Oy Vantaan Tykkikuja 11 100.0 100.0
Kiinteistö Oy Vantaan Tykkikuja 7 100.0 100.0
Kiinteistö Oy Vantaan Uomarinne 5 100.0 100.0
Kiinteistö Oy Vantaan Varikkokaarre 2 100.0 100.0
Kiinteistö Oy Vantaan Vihvilätie 3 100.0 100.0
Kiinteistö Oy Vantaan Virtakuja 6 100.0 100.0
Kiinteistö Oy Ylöjärven Viljavainio 100.0 100.0
Kiinteistö Oy Tampereen Heittoniityn Parkki 50.9 50.9
OOO SATO RUS 100.0 100.0
Sato-Neva Oy 100.0 100.0
Sato-Pietari Oy 100.0 100.0
Työväen Asunto-osakeyhtiö Rauha 10.2 10.2
Ömsesidiga Fastighets Ab Malmeken 13.0 13.0
Sato-Pysäköinti Oy
Kiinteistö Oy Espoon Kotkatien Pysäköinti 89.1 89.1
Kiinteistö Oy Espoon Nihtiparkki 50.0 50.0
Kiinteistö Oy Espoon Niittykummuntien 2 BC Pysäköinti 100.0 100.0
Kiinteistö Oy Espoon Pegasos Pysäköinti 25.1 25.1
Kiinteistö Oy Espoon Peijinkujan Pysäköinti 100.0 100.0
Kiinteistö Oy Helsingin Jokiniementien Pysäköinti 78.1 78.1
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Kiinteistö Oy Helsingin Käskynhaltijantien Pysäköinti 80.0 80.0
Kiinteistö Oy Puutorin Pysäköinti 51.6 51.6
Kiinteistö Oy Runoratsun Pysäköinti 33.3 33.3
Kiinteistö Oy Skanssin Autoparkki 24.7 24.7
Kiinteistö Oy Vantaan Lincolninaukion Pysäköinti 100.0 100.0
Sato-Joustokoti Oy
Asunto Oy Helsingin Käskynhaltija 100.0 100.0
Asunto Oy Helsingin Myllyrinne 100.0 100.0
Asunto Oy Hervantajärven Helmi, Tampere 97.4 97.4
Asunto-osakeyhtiö Talin Estelle, Helsinki 87.1 8 7.1
Kiinteistö Oy Espoon Humisevanportti 2 100.0 100.0
SATOkoti Oy
Kiinteistö Oy Ida Aalbergintie 1 100.0 100.0
Kiinteistö Oy Tohlopinkontu 100.0 40.0
SATOkoti 21 Oy
Asunto Oy Helsingin Keinulaudantie 7 100.0 100.0
Asunto Oy Helsingin Keinulaudantie 7a 100.0 100.0
SATOkoti 24 Oy
Asunto Oy Vantaan Neulansilmä 2.2 2.2
Suomen Vuokrakodit 3 Oy
Asunto Oy Turun Westparkin Eeben 100.0 100.0
Asunto Oy Vantaan Piparminttu 100.0 100.0
Asunto Oy Vantaan Rubiinikehä 1B 100.0 100.0
Suomen Satokodit 21 Oy
Asunto Oy Espoon Kaskenkaatajantie 5 100.0 100.0
Asunto Oy Helsingin Arhotie 22 100.0 100.0
Asunto Oy Helsingin Myllymatkantie 1 100.0 100.0
SATO's Annual report 2022 | 54
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Financial statements ||
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Suomen Satokodit 22 Oy
Asunto Oy Vantaan Kortteeri 6.4 6.4
Sato VK 21 Oy
Asunto Oy Espoon Zanseninkuja 4 29. 9 17.4
Asunto Oy Kaarinan Mattelpiha 49.5 36.0
Asunto Oy Turun Unikkoniitty 39.9 13.9
Asunto-Oy Vantaan Herttuantie 3 35.2 31.2
Sato VK 22 Oy
Asunto Oy Espoon Numersinkatu 6 15.2 9.2
Asunto Oy Kaarinan Kiurunpuisto 48.1 2 9.6
Asunto Oy Tampereen Kyläleni 93.2 70.7
Asunto Oy Turun Maarianportti 100.0 100.0
Sato-Osaomistus Oy
Asunto Oy Espoon Nostoväenkuja 1 3.8 3.8
Asunto Oy Espoon Numersinkatu 6 15.2 6.0
Asunto Oy Espoon Puropuisto 58.4 2.5
Asunto Oy Espoon Ristiniementie 22 8.2 2.8
Asunto Oy Espoon Sokerilinnantie 1 5.8 1.6
Asunto Oy Espoon Säterinkatu 10 1 9.1 13.0
Asunto Oy Espoon Zanseninkuja 4 29. 9 12.5
Asunto Oy Helsingin Vanhanlinnantie 10 6.4 1.1
Asunto Oy Iidesranta 42 Tampere 9.9 3.4
Asunto Oy Kaarinan Katariinankallio 35.8 12.3
Asunto Oy Kaarinan Kiurunpuisto 48.1 18.4
Asunto Oy Kaarinan Kultarinta 39.8 13.4
Asunto Oy Kaarinan Mattelpiha 49.5 13.5
Asunto Oy Kaarinan Verkapatruuna 3.7 3.7
Asunto Oy Raision Toripuisto 56.9 36.2
Asunto Oy Tampereen Haapalinnan Antintalo 66.7 16.0
Asunto Oy Tampereen Kyläleni 93.2 22.5
Asunto Oy Tampereen Kyyhky 11.1 3.0
31 Dec 2022
Group's
holding, %
Parent company's
holding, %
Asunto Oy Tampereen Rantatie 13 E–G 44.9 3.2
Asunto Oy Turun Hehtokatu 10.2 10.2
Asunto Oy Turun Merenneito 24.7 10.1
Asunto Oy Turun Meripoika 40.8 14.8
Asunto Oy Turun Unikkoniitty 39.9 26.1
Asunto Oy Tuusulan Naavankierto 10 16.5 16.5
Asunto-Oy Vantaan Herttuantie 3 35.2 4.0
Vatrotalot 2 Oy
Sato-Osaomistus Oy 100.0 100.0
Vatrotalot 5 Oy
Asunto Oy Helsingin Laivalahdenportti 5 75.5 75.5
Asunto Oy Helsingin Toini Muonan Katu 8 10.6 10.6
Asunto Oy Kirkkonummen Riihipolku 100.0 100.0
Asunto Oy Kylänpäänpelto 43.8 43.8
Asunto Oy Laakavuorentie 4 3 9.1 3 9.1 2
Asunto Oy Meriramsi 25.56 25.6
Asunto Oy Meri-Rastilan Tie 5 23.5 23.5
Asunto Oy Meri-Rastilan Tie 9 9.1 9.1
Asunto Oy Nurmijärven Kylänpäänkaari 45.0 45.0
Asunto Oy Nurmijärven Kylänpäänniitty 31.2 31.2
Asunto Oy Vantaan Ravurinpuisto 61.1 61.1
Sato-Rakennuttajat Oy
Asunto Oy Kirkkonummen Helmi 100.0 100.0
Asunto Oy Kirkkonummen Metsätähdenkuja 5 60.0 41.7
Asunto Oy Kirkkonummen Sarvvikintie 4 100.0 81.7
Asunto Oy Kirkkonummen Sinikellontie 5 60.0 41.7
Asunto Oy Kirkkonummen Ukonkellonkuja 3 60.0 41.7
Kiinteistö Oy Kirkkonummen Sarvvikinportti 60.0 46.8
Sarfvikin Vesialue Oy 60.0 41.7
Uusi Sarfvik Oy 60.0 41.7
SATO's Annual report 2022 | 55
SATO 2022 | Report of the board of directors Governance
Financial statements ||
FINANCIAL STATEMENTS OF THE PARENT COMPANY, FAS
PARENT COMPANY INCOME STATEMENT, FAS
EUR note 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Net sales 2 12,708,756.75 11,073,332.57
Other operating income 3 174,733.22 203,069.43
Materials and services 4 -137,037.21 -578,514.47
Personnel expenses 5, 6, 7 -2,580,172.95 -2,520,917.24
Depreciation, amortisation and impairment charges 8 -2,554,276.33 -1,955,355.62
Other operating expenses 9 -11,279,327.22 -10,225,086.19
Operating profit -3,667,323.74 -4,003,471.52
Financial income and expenses 10 364,597.06 -4,246,372.47
Profit/loss before appropriations and taxes -3,302,726.68 -8,249,843.99
Group contribution 11 160,000,000.00 90,500,000.00
Income taxes 12 -27,052,660.16 -12,871,707.44
Profit for the period 129,644,613.16 69,378,448.57
PARENT COMPANY BALANCE SHEET, FAS
EUR note 31 Dec 2022 31 Dec 2021
ASSETS
Non-current assets
Intangible assets 13 6,936,033.12 5,775,185.44
Tangible assets 14 3,140,291.11 2,860,543.74
Holdings in Group companies 15 1,066,817,533.39 1,066,971,157.98
Holdings in associated companies 16 1,250.00 1,250.00
Other holdings and shares 17 958,404.35 958,404.35
Total 1,077,853,511.97 1,076,566,541.51
EUR note 31 Dec 2022 31 Dec 2021
Current assets
Inventories 18 539,846.60 876,266.03
Long-term receivables, group 19 1,080,359,138.78 1,092,540,488.53
Long-term receivables, external 19 775,006.00 494,751.74
Short-term receivables, group 20 550,979,169.07 481,662,759.81
Short-term receivables, external 20 2,296,688.94 857,355.53
Cash and cash equivalents 53,441,412.33 3,367,460.08
Total 1,688,391,261.72 1,579,799,081.72
TOTAL ASSETS 2,766,244,773.69 2,656,365,623.23
SHAREHOLDERS' EQUITY AND LIABILITIES
Shareholders' equity 21, 22
Share capital 23 4,442,192.00 4,442,192.00
Reserve fund 43,683,500.96 43,683,500.96
Other funds 115,978,036.35 115,978,036.35
Retained earnings 266,934,496.05 225,864,580.98
Profit for the period 129,644,613.16 69,378,448.57
Total 560,682,838.52 459,346,758.86
Liabilities
Non-current liabilities, external 24 1,535,131,111.15 1,878,287,439.70
Current liabilities, group 25 242,026,737.59 225,787,266.81
Current liabilities, external 25 428,404,086.43 92,944,157.86
Total 2,205,561,935.17 2,197,018,864.37
SHAREHOLDERS' EQUITY AND LIABILITIES, TOTAL 2,766,244,773.69 2,656,365,623.23
SATO's Annual report 2022 | 56
SATO 2022 | Report of the board of directors Governance
Financial statements ||
PARENT COMPANY'S CASH FLOW STATEMENT, FAS
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
CASH FLOW FROM OPERATING ACTIVITIES
Net profit for the financial year 129,644,613.16 69,378,448.57
Adjustments:
Depreciation 2,554,276.33 1,955,355.62
Financial income (-) and expenses (+) -364,597.06 4,246,372.47
Income tax 27,052,660.16 12,871,707.44
Proceeds (-) and losses (+) on sales of non-current assets 16,136.28 -198,059.45
Group contribution -160,000,000.00 -90,500,000.00
Other adjustments 133,595.51 69,207.14
Cash flow before change in working capital -963,315.62 -2,176,968.21
Change in working capital
Decrease (+)/increase(-) in current non-interest-bearing receivables -1,724,335.44 488,553.42
Decrease (+)/increase(-) in inventories 336,419.43 446,141.19
Decrease (-)/increase(+) in current loans -8,104,945.84 -112,797,531.73
Cash flow before financial items and taxes -10,456,177.47 -114,039,805.33
Interest paid -35,776,722.52 -35,673,873.32
Dividends received 192,119.83 16,179.17
Interest received 25,464,156.96 21,815,340.36
Other financial expenses -11,203,692.08 -8,847,602.46
Direct taxes paid -17,167,947.11 -10,068,120.82
Cash flow from operating activities (A) -48,948,262.39 -146,797,882.40
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
CASH FLOW FROM INVESTING ACTIVITIES
Investments in tangible and intangible assets -3,985,021.54 -4,254,784.50
Income from disposals of tangible assets 128,229.39 192,647.69
Placements in other investments -144,882.09 -64,081.86
Proceeds from other investments 173,676.98 0.00
Loans granted -70,705,045.85 -145,764,859.71
Instalments on the loan receivable 79,727,251.74 95,467,468.10
Cash flow from investing activities (B) 5,194,208.63 -54,423,610.28
CASH FLOW FROM FINANCING ACTIVITIES
Loans taken 294,025,730.62 387,985,992.60
Payments on loans -294,495,833.43 -488,469,874.20
Changes in short-term cash pool liabilities and receivables 32,106,642.32 -18,960,005.85
Group contributions (contribution-based) 90,500,000.00 117,000,000.00
Dividends paid and other distribution of profit -28,308,533.50 -28,311,533.50
Cash flow from financing activities (C) 93,828,006.01 -30,755,420.95
Change in cash equivalents 50,073,952.25 -231,976,913.63
Cash and cash equivalents at the beginning of the year 3,367,460.08 235,344,373.71
Cash and cash equivalents at the end of the year 53,441,412.33 3,367,460.08
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PARENT COMPANY ACCOUNTING PRINCIPLES, FAS
1. PARENT COMPANY ACCOUNTING PRINCIPLES
Basic information
SATO Corporation is a Finnish public limited company domiciled
in Helsinki, Finland. SATO’s registered address is Panuntie 4,
00600 Helsinki, Finland.
SATO Corporation and its subsidiaries together form the
consolidated SATO Group. SATO Corporation’s majority
shareholder with 56,3% shareholding is Balder Finska Otas AB,
whose parent company is Fastighets AB Balder, which is quoted
on the Stockholm Stock Exchange. SATO Group operations
primarily consist of investment in housing properties and most of
its investment property is located in the Helsinki region.
General principles
Sato Corporation’s financial statements have been prepared in
accordance with the provisions of the Finnish Accounting Act and
the Finnish Limited Liability Companies Act.
Income related to rental operations and compensation for
administration costs
Income related to rental operations and compensation for
administration costs are recognised on an accrual basis during
the agreement period.
Valuation of fixed assets
Tangible and intangible assets is recognised in the balance sheet
at the original acquisition cost less depreciation according to
plan and possible impairment. Depreciations according to plan
is calculated as straight-line depreciation on the basis of the
estimated useful life of the assets.
Depreciation periods:
Other intangible long-term expenses 10 years
Buildings 67 years
Structures 15 years
Machinery and equipment 5–10 years
Other tangible assets 3–6 years
Shelters 40 years
Vehicles 4 years
Shares in subsidiaries are valued based on acquisition costs less
possible impairments.
Pension costs
The pension cover of Group companies is handled by external
pension insurance companies in all respects. Pension costs are
recognised as costs in the income statement on an accrual basis.
Development expenditures
Development costs are recognised as expenses in the income
statement in the financial year in which they have occurred.
Valuation of inventories
Inventories have been recognised at the lower of cost or
probable sales price on the balance sheet date.
Derivatives
Interest rate derivatives are used for hedging against the
interest rate risks of floating term loans. The interest income and
expenses based on derivative instruments are allocated over the
agreement period.
The company has recorded the negative fair values of the
derivates as a non-current and current liability in full in its balance
sheet. No deferred tax assets have been recorded from the
derivative liability.
Derivatives having positive fair values are not entered into the
balance sheet and positive fair values are reported only in the
notes to the financial statements.
Methods used in derivative fair valuations have been discussed
under the Group Financial Statements note number 27.
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2. NET SALES
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Rental income and compensation charges 2,045,928.24 1,962,398.35
Other income 842,325.71 1,691,134.70
Management service charges 9,820,502.80 7,419,799.52
Total 12,708,756.75 11,073,332.57
3. OTHER OPERATING INCOME
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Other operating income 106,800.09 5,009.98
Profit on sales of fixed assets 67,933.13 198,059.45
Total 174,733.22 203,069.43
9. OTHER OPERATING EXPENSES
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Rents 267,849.80 208,355.95
Maintenance expenses 217,988.16 187,166.60
Other fixed expenses * 10,624,594.53 9,761,651.86
Other operating expenses 168,894.73 67,911.78
Total 11,279,327.22 10,225,086.19
* Audit fees were EUR 81,830.00 (77,165.94) and audit related assignment fees were EUR 44,500.00 (0.00). Tax and other consultancy services purchased from
auditors were EUR 0.00 (2,121.60).
8. DEPRECIATION AND AMORTISATION
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Amortisation of intangible assets 1,575,210.74 1,064,524.09
Depreciation of tangible assets 979,065.59 890,831.53
Total 2,554,276.33 1,955,355.62
6. MANAGEMENT SALARIES AND COMPENSATIONS
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Presidents and members of the Board of Directors 538,035.09 547,364.07
7. AVERAGE NUMBER OF PERSONNEL
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Employees 14 14
5. PERSONNEL EXPENSES
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Salaries and wages 2,147,903.55 2,113,650.95
Pension expenses 336,150.68 309,930.78
Other personnel expenses 96,118.72 97,335.51
Total 2,580,172.95 2,520,917.24
4. MATERIALS AND SERVICES
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Materials and consumables
Purchases 17,002.85 21,530.80
Change in inventories 120,034.36 556,983.67
Total 137,037.21 578,514.47
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13. INTANGIBLE ASSETS
EUR 2022 2021
Other long-term expenditure
Acquisition cost, 1 Jan 14,088,440.57 11,215,197.02
Increases 2,736,058.42 2,873,243.55
Decreases 0.00 0.00
Acquisition cost, 31 Dec 16,824,498.99 14,088,440.57
Accumulated amortisation and impairment, 1 Jan 8,313,255.13 7,248,731.04
Accumulated amortisation of decreases 0.00 0.00
Amortisation, current year 1,575,210.74 1,064,524.09
Accumulated amortisation and impairment, 31 Dec 9,888,465.87 8,313,255.13
Book value, 31 Dec 6,936,033.12 5,775,185.44
Intangible assets, total 6,936,033.12 5,775,185.44
14. TANGIBLE ASSETS
EUR 2022 2021
Land and water areas
Acquisition cost, 1 Jan 19,595.69 19,595.69
Acquisition cost, 31 Dec 19,595.69 19,595.69
Book value, 31 Dec 19,595.69 19,595.69
Buildings and structures
Acquisition cost, 1 Jan 10,275.62 10,275.62
Increases 48,410.02 0.00
Acquisition cost, 31 Dec 58,685.64 10,275.62
Accumulated depreciation and impairment, 1 Jan 10,274.62 10,274.62
Accumulated depreciation and impairment, 31 Dec 10,274.62 10,274.62
Book value, 31 Dec 48,411.02 1.00
12. INCOME TAXES
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Income taxes, business operations 27,052,660.16 12,871,707.44
Total 27,052,660.16 12,871,707.44
11. GROUP CONTRIBUTIONS
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Group contributions received 160,000,000.00 90,500,000.00
Total 160,000,000.00 90,500,000.00
10. FINANCIAL INCOME AND EXPENSES
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Interest income and other financial income on long-term investments
From Group companies 26,935,522.83 21,700,664.62
From others 477,414.18 219,710.63
Total 27,412,937.01 21,920,375.25
EUR 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021
Interest expenses and other financing expenses
To Group companies -5,863,831.40 -5,923,930.55
To others:
Interest expenses -37,606,600.87 -35,724,405.26
Other financial expenses -4,902,354.68 -2,586,171.91
Change of derivative fair values 21,324,447.00 18,067,760.00
Total -27,048,339.95 -26,166,747.72
Financial income and expenses, total 364,597.06 -4,246,372.47
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EUR 2022 2021
Connection fees
Acquisition cost, 1 Jan 3,139.28 3,139.28
Acquisition cost, 31 Dec 3,139.28 3,139.28
Machinery and equipment
Acquisition cost, 1 Jan 6,028,000.51 4,995,756.12
Increases 939,080.84 1,381,540.95
Decreases -201,390.40 -349,296.56
Acquisition cost, 31 Dec 6,765,690.95 6,028,000.51
Accumulated depreciation and impairment, 1 Jan 3,986,498.24 3,600,550.35
Accumulated depreciation of decreases -120,710.66 -354,708.32
Depreciation, current year 838,887.30 740,656.21
Accumulated depreciation and impairment, 31 Dec 4,704,674.88 3,986,498.24
Book value, 31 Dec 2,061,016.07 2,041,502.26
Other tangible assets
Acquisition cost, 1 Jan 1,553,686.53 1,553,686.53
Increases 0.00 0.00
Acquisition cost, 31 Dec 1,553,686.53 1,553,686.53
Accumulated depreciation and impairment, 1 Jan 1,241,176.41 1,091,001.09
Depreciation, current year 140,178.29 150,175.32
Accumulated depreciation and impairment, 31 Dec 1,381,354.70 1,241,176.41
Book value, 31 Dec 172,331.83 312,510.12
Assets in progress
Acquisition cost, 1 Jan 483,795.39 559,167.66
Increases 636,481.85 1,721,392.81
Transfers -284,480.01 -1,796,765.08
Acquisition cost, 31 Dec 835,797.23 483,795.39
Book value, 31 Dec 835,797.23 483,795.39
Tangible assets, total 3,140,291.12 2,860,543.74
18. INVENTORIES
EUR 2022 2021
Land areas and land area companies 298,162.13 634,581.56
Other inventories 241,684.47 241,684.47
Book value, 31 Dec 539,846.60 876,266.03
17. OTHER STOCKS AND SHARES
EUR 2022 2021
Acquisition cost, 1 Jan 989,245.89 989,245.89
Increases 0.00 0.00
Decreases 0.00 0.00
Acquisition cost, 31 Dec 989,245.89 989,245.89
Accumulated depreciation and impairment, 1 Jan 30,841.54 30,841.54
Accumulated depreciation and impairment, 31 Dec 30,841.54 30,841.54
Book value, 31 Dec 958,404.35 958,404.35
Investments, total 1,067,777,187.74 1,067,930,812.33
16. HOLDINGS IN ASSOCIATED COMPANIES
EUR 2022 2021
Acquisition cost, 1 Jan 1,250.00 1,250.00
Acquisition cost, 31 Dec 1,250.00 1,250.00
Book value, 31 Dec 1,250.00 1,250.00
15. HOLDINGS IN GROUP COMPANIES
EUR 2022 2021
Acquisition cost, 1 Jan 1,066,971,157.98 1,066,962,748.58
Increases 0.00 0.00
Transfers 83,738.32 8,409.40
Decreases -237,362.91 0.00
Acquisition cost, 31 Dec 1,066,817,533.39 1,066,971,157.98
Book value, 31 Dec 1,066,817,533.39 1,066,971,157.98
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19. NON-CURRENT RECEIVABLES
EUR 31 Dec 2022 31 Dec 2021
Receivables from Group companies
Notes receivable 1,080,359,138.78 1,092,540,488.53
Total 1,080,359,138.78 1,092,540,488.53
EUR 31 Dec 2022 31 Dec 2021
Receivables from others
Notes receivable 0.00 157,251.74
Prepaid expenses and accrued income 775,006.00 337,500.00
Total 775,006.00 494,751.74
Non-current receivables, total 1,081,134,144.78 1,093,035,240.27
21. SHAREHOLDERS' EQUITY
EUR 2022 2021
Share capital, 1 Jan 4,442,192.00 4,442,192.00
Share capital, 31 Dec 4,442,192.00 4,442,192.00
Reserve fund, 1 Jan 43,683,500.96 43,683,500.96
Reserve fund, 31 Dec 43,683,500.96 43,683,500.96
Other funds, 1 Jan 1,132,319.33 1,132,319.33
Other funds, 31 Dec 1,132,319.33 1,132,319.33
Invested unrestricted equity fund, 1 Jan 114,845,717.02 114,845,717.02
Invested unrestricted equity fund, 31 Dec 114,845,717.02 114,845,717.02
Retained earnings, 1 Jan 295,243,029.55 254,176,114.48
Dividend payment -28,308,533.50 -28,311,533.50
Retained earnings, 31 Dec 266,934,496.05 225,864,580.98
Profit for the period 129,644,613.16 69,378,448.57
Shareholders' equity, total, 31 Dec 560,682,838.52 459,346,758.86
20. CURRENT RECEIVABLES
EUR 31 Dec 2022 31 Dec 2021
Receivables from Group companies
Loans 3,316,395.60 0.00
Other receivables 546,386,894.36 480,978,461.52
Prepaid expenses and accrued income 1,275,879.11 684,298.29
Total 550,979,169.07 481,662,759.81
Receivables from others
Accounts receivable 120,239.63 181,301.10
Loans 0.00 83,738.32
Prepaid expenses and accrued income 2,176,449.31 592,316.11
Total 2,296,688.94 857,355.53
Current receivables, total 553,275,858.01 482,520,115.34
Receivables total 1,634,410,002.79 1,575,555,355.61
EUR 31 Dec 2022 31 Dec 2021
Specification of prepaid expenses and accrued income
Interest receivables 1,169,361.43 0.00
Other 1,007,087.88 458,251.09
Total 2,176,449.31 458,251.09
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Sensitivity analysis, interest rate risk
Profit and Loss 2022
EUR 0,1% -0,1%
Interest rate swaps 1.9 -1.9
Total 1.9 -1.9
Profit and Loss 2021
EUR 0,1% -0,1%
Interest rate swaps 2.9 -2.9
Total 2.9 -2.9
Hedge accounting is not applied on SATO Corporation level; therefore the sensitivity analysis is presented only on the Profit and Loss.
EUR
31 Dec 2022 31 Dec 2021
Loans maturing in more than five years 475,000,000.00 480,000,000.00
Derivatives
EUR 31 Dec 2022 31 Dec 2021
Nominal values of derivative instruments
Interest rate swaps, liabilities 447,472,500.00 510,872,500.00
Net 447,472,500.00 510,872,500.00
EUR 31 Dec 2022 31 Dec 2021
Fair values of derivative instruments
Interest rate swaps
Positive 38,846,930.00 0.00
Negative 0.00 -21,324,447.00
Net 38,846,930.00 -21,324,447.00
Interest rate risk arising from floating rate loans of Group companies is hedged using derivative instruments in accordance with the Treasury
Policy. The hedge ratio complies with the Treasury Policy, according to which the ratio of fixed-rate loans to the entire loan portfolio is kept
above 60%. Treasury aims to optimize the interest risk by maintaining the average interest fixing period between 3 to 5 years when market
interest rates (ECB key rate) are above 1%, and between 3 to 10 years when market interest rates are equal to or below 1%.
No deferred tax assets have been recorded in relation to derivative liabilities. The deferred tax asset would have been EUR 0,00 31.12.2022
and EUR 4,264,889.40 31.12.2021.
24. LONG-TERM LIABILITIES
EUR 31 Dec 2022 31 Dec 2021
Loans from financial institutions
Bonds * 750,000,000.00 1,074,000,000.00
Loans from financial institutions 785,131,111.15 784,166,666.70
Derivative liabilities 0.00 20,120,773.00
Total 1,535,131,111.15 1,878,287,439.70
Long-term liabilities, total 1,535,131,111.15 1,878,287,439.70
* More information on Group financial statements note 26.
23. SHARE CAPITAL AND SHARES
EUR 31 Dec 2022 31 Dec 2021
Total number of shares 56,783,067 56,783,067
SATO Corporation has one class of shares, each of which entitles one vote at the Annual General Meeting. The shares do not have a
nominal value. The share capital of the company totalled EUR 4,442,192.00 at the financial statement date, and it was fully paid. The
company held 166,000 of its own shares at the financial statement date.
22. CALCULATION OF DISTRIBUTABLE FUNDS
EUR 31 Dec 2022 31 Dec 2021
Other funds 1,132,319.33 1,132,319.33
Invested unrestricted equity fund 114,845,717.02 114,845,717.02
Retained earnings 266,934,496.05 225,864,580.98
Profit for the period 129,644,613.16 69,378,448.57
Distributable funds, 31 Dec 512,557,145.56 411,221,065.90
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26. COLLATERALS, CONTINGENT LIABILITIES AND OTHER COMMITMENTS
EUR 31 Dec 2022 31 Dec 2021
Guarantees
Guarantees for debts and derivatives of Group companies 52,493,364.00 55,266,157.00
Bank guarantees for Group companies 3,887,408.34 5,490,071.12
Total 56,380,772.34 60,756,228.12
EUR 31 Dec 2022 31 Dec 2021
Other commitments
Lease agreements for office premises, amounts due (incl. VAT)
Within one year 1,141,676.57 1,291,050.36
Later than one year but within five years 4,206,755.52 4,025,513.57
Over five years 85,654.75 1,060,899.58
Utilities and other commitments 17,090,500.00 235,000.00
Pledges and contingent liabilities, total 22,524,586.84 6,612,463.51
SATO has granted a community guarantee included in the bank guarantee for Sato-Asunnot Oy, SATOkoti Oy and Sato-Rakennuttajat Oy.
SATO’s funding agreements contain covenant clauses relating to the Group's capital structure and interest payment capacity. These clauses
set a ratio of unencumbered assets to total assets at least 42.5%, a solvency ratio maximum of 65.0%, a secured solvency ratio maximum
45.0%, interest coverage ratio of at least 1.8 and unencumbered assets to unsecured debt at least 150%. At the reporting date, the ratio
of unencumbered assets was 89.2% (87.5), the solvency ratio was 40.7% (42.5), the secured solvency ratio was 5.0% (7.2), the interest
coverage ratio was 8.2 (4.1) and unencumbered assets to unsecured debt was 244.3%.
25. CURRENT LIABILITIES
EUR 31 Dec 2022 31 Dec 2021
Loans to Group companies
Accounts payable 407,124.30 407,124.30
Other liabilities 241,584,543.93 225,269,086.05
Accrued expenses and prepaid income to 100% owned housing companies 35,069.36 111,056.46
Total 242,026,737.59 225,787,266.81
EUR 31 Dec 2022 31 Dec 2021
Loans to others *
Loans from financial institutions 71,154,811.46 47,499,358.72
Bonds 324,000,000.00 25,000,000.00
Advances received 23,525.28 25,716.11
Accounts payable 1,788,865.75 644,877.87
Other liabilities 92,981.01 1,030,599.18
Accrued expenses and prepaid income 31,343,902.93 18,743,605.98
Total 428,404,086.43 92,944,157.86
Current liabilities, total 670,430,824.02 318,731,424.67
Liabilities, total 2,205,561,935.17 2,197,018,864.37
* Short-term liabilities include derivative liabilities EUR 0.0 million (1.2).
For purposes of short-term financing, SATO has a commercial paper programme of EUR 400.0 million (400.0), of which EUR 385.0 million
(395.0) were unused, committed credit limits of EUR 700.0 million (350.0), of which EUR 700.0 million (350.0) were unused, and a
noncommitted current overdraft limit of EUR 5.0 million (5.0), of which EUR 5.0 million (5.0) were unused.
EUR 31 Dec 2022 31 Dec 2021
Specification of accrued expenses and prepaid income
Wages and salaries including employee benefits 1,041,648.18 800,461.24
Interest payable 17,439,771.56 15,609,893.21
Others 1,545,418.67 976,887.16
Current tax liabilities 11,352,133.88 1,467,420.83
Total 31,378,972.29 18,854,662.44
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SIGNATURES TO THE FINANCIAL STATEMENTS AND THE REPORT OF THE BOARD OF DIRECTORS
Helsinki, 9 February 2023
Erik Selin Esa Lager Tarja Pääkkönen
Sharam Rahi Johannus (Hans) Spikker Timo Stenius
Antti Aarnio
CEO
The auditors’ note
Our report on the conducted audit has been issued today.
Helsinki, 9 February 2023
Deloitte Oy
Authorised Public Accountants
Aleksi Martamo
Authorised Public Accountant
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AUDITOR’S REPORT
(Translation of the Finnish Original)
To the Annual General Meeting of SATO Oyj
REPORT ON THE AUDIT OF THE FINANCIAL
STATEMENTS
Opinion
We have audited the financial statements of SATO Oyj (business
identity code 0201470-5) for the year ended 31 December 2022.
The financial statements comprise the consolidated balance
sheet, income statement, statement of comprehensive income,
statement of changes in equity, statement of cash flows and
notes, including a summary of significant accounting policies, as
well as the parent company’s balance sheet, income statement,
statement of cash flows and notes.
In our opinion
• the consolidated financial statements give a true and fair view
of the group’s financial position, financial performance and
cash flows in accordance with International Financial Reporting
Standards (IFRS) as adopted by the EU
• the financial statements give a true and fair view of the parent
company’s financial performance and financial position in
accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with
statutory requirements.
Our opinion is consistent with the additional report submitted to
the Board of Directors.
Basis for Opinion
We conducted our audit in accordance with good auditing
practice in Finland. Our responsibilities under good auditing
practice are further described in the Auditor’s Responsibilities for
the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group
companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our audit, and we have
fulfilled our other ethical responsibilities in accordance with these
requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company and
group companies are in compliance with laws and regulations
applicable in Finland regarding these services, and we have not
provided any prohibited non-audit services referred to in Article
5(1) of regulation (EU) 537/2014. The non-audit services that we
have provided have been disclosed in note 7 to the consolidated
financial statements.
We believe that the audit evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed
in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
We have also addressed the risk of management override of
internal controls. This includes consideration of whether there was
evidence of management bias that represented a risk of material
misstatement due to fraud.
Key audit matter How our audit addressed the key audit matter
Valuation of investment properties
Refer to note 13 to the consolidated financial
statements.
Consolidated financial statements as of 31 December
2022 include investment properties amounting to
EUR 5,044.2 million.
Investment properties, as defined in IAS 40, are
measured at fair value in accordance with IFRS 13.
Fair value measurement of investment properties
requires management judgment and assumptions,
since market prices for investment properties are not
available in publicly traded markets.
This matter is regarded as significant risk of material
misstatement in accordance with EU Audit Regulation
(537/2014) Article 10 paragraph 2 c.
We have assessed and challenged the principles
and methods applied in the fair value measurement.
Our audit procedures included the following, among
others:
• assessment of the appropriateness of valuation
methods and the reasonableness of management
assumptions
• testing the applied valuation model for
mathematical accuracy
• comparison of the valuation of investment
properties against externally available market data
sources
• evaluation of the appropriateness of the input data
used in the valuation
• evaluation of the competence and objectivity
of the external valuation expert used by the
management
• testing the key controls for operating effectiveness.
We have assessed the appropriateness of the
presentation in the consolidated financial statements.
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Key audit matter How our audit addressed the key audit matter
Fair value measurement of derivative instruments
and application of hedge accounting
Refer to note 27 to consolidated financial statements.
Derivative receivables as of 31 December 2022 in the
consolidated financial statements amount to EUR 38.7
million.
Management estimates are used in the fair value
measurement of derivatives and in the application
of hedge accounting. These estimates contain
management assumptions.
Our audit procedures included an assessment of
internal control environment and processes over
the hedge accounting documentation, effectiveness
testing, and fair value measurement.
We have also assessed the procedures and
assumptions used by the management in fair value
measurement.
• We have assessed the appropriateness of valuation
methods and accounting polices used against
the requirements set in IFRS 9 and IFRS 13 for
consolidated financial statements.
• We have compared the assumptions used by
management in valuation against externally
available market data.
• We have assessed the existence and completeness
of outstanding derivative contracts by requesting
confirmations from the counterparties.
• We have assessed that financial instruments
included in hedge relationships are accounted
for in accordance with IFRS 9 in the consolidated
financial statements.
We have assessed the appropriateness of the
presentation for derivative financial instruments
and hedge accounting applied in the consolidated
financial statements.
Responsibilities of the Board of Directors and the Managing
Director for the Financial Statements
The Board of Directors and the Managing Director are
responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with
International Financial Reporting Standards (IFRS) as adopted
by the EU, and of financial statements that give a true and fair
view in accordance with the laws and regulations governing the
preparation of financial statements in Finland and comply with
statutory requirements. The Board of Directors and the Managing
Director are also responsible for such internal control as they
determine is necessary to enable the preparation of financial
statements that are free from material misstatement, whether due
to fraud or error.
In preparing the financial statements, the Board of Directors
and the Managing Director are responsible for assessing the
parent company’s and the group’s ability to continue as going
concern, disclosing, as applicable, matters relating to going
concern and using the going concern basis of accounting. The
financial statements are prepared using the going concern basis
of accounting unless there is an intention to liquidate the parent
company or the group or cease operations, or there is no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of Financial
Statements
Our objectives are to obtain reasonable assurance on 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 aggregate, they could reasonably be expected
to influence the economic decisions of users taken on the basis of
the financial statements.
As part of an audit in accordance with good auditing practice,
we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
• Identify and assess the risks of material misstatement of the
financial statements, whether due to fraud or error, design
and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to
provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of
internal control.
• Obtain an understanding of internal control relevant to the
audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the parent company’s or the
group’s internal control.
• Evaluate the appropriateness of accounting policies used
and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’
and the Managing Director’s use of the going concern basis of
accounting and based on the audit evidence obtained, whether
a material uncertainty exists related to events or conditions
that may cast significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in
the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the parent
company or the group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the
financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and
events so that the financial statements give a true and fair view.
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• Obtain sufficient appropriate audit evidence regarding the
financial information of the entities or business activities within
the group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision
and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding,
among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement
that we have complied with relevant ethical requirements
regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought
to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with
governance, we determine those matters that were of most
significance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe these
matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences
of doing so would reasonably be expected to outweigh the
public interest benefits of such communication.
OTHER REPORTING REQUIREMENTS
Information on our audit engagement
We were first appointed as auditors by the Annual General
Meeting on 23 March 2018, and our appointment represents a
total period of uninterrupted engagement of five 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.
Our opinion on the financial statements does not cover the other
information.
In connection with our audit of the financial statements, our
responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent
with the financial statements or our knowledge obtained in the
audit, or otherwise appears to be materially misstated. With
respect to the report of the Board of Directors, our responsibility
also includes considering whether the report of the Board of
Directors has been prepared in accordance with the applicable
laws and regulations.
In our opinion, the information in the report of the Board of
Directors is consistent with the information in the financial
statements and the report of the Board of Directors has been
prepared in accordance with the applicable laws and regulations.
If, based on the work we have performed, we conclude that
there is a material misstatement of the other information, we are
required to report that fact. We have nothing to report in this
regard.
Helsinki, 9 February 2023
Deloitte Oy
Audit Firm
Aleksi Martamo
Authorised Public Accountant (KHT)
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INDEPENDENT AUDITOR’S REPORT ON THE ESEF
CONSOLIDATED FINANCIAL STATEMENTS OF SATO OYJ
(Translation of the Finnish Original)
TO THE BOARD OF DIRECTORS OF SATO OYJ
We have performed a reasonable assurance engagement
on whether the iXBRL tagging of the consolidated financial
statements in the ESEF consolidated financial statements
SATO-2022-12-31-fi.zip of Sato Oyj (0201470-5) for the financial
year 1.1.–31.12.2022 has been prepared in accordance with the
requirements of Article 4 of Commission Delegated Regulation
(EU) 2018/815 (ESEF RTS).
Responsibilities of the Board of Directors and the Managing
Director
The Board of Directors and Managing Director are responsible
for the preparation of the report of the Board of Directors and
financial statements (ESEF financial statements) that comply with
the requirements of ESEF RTS. This responsibility includes
• preparation of ESEF financial statements in XHTML format in
accordance with Article 3 of ESEF RTS
• tagging the consolidated financial statements’ primary
statements, disclosures and identifying information in the ESEF
financial statements with iXBRL tags in accordance with Article
4 of ESEF RTS, and
• ensuring consistency between ESEF financial statements and
audited financial statements
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is
necessary to enable the preparation of ESEF financial statements
in accordance with the requirements of ESEF RTS.
Auditor’s Independence and Quality Control
We are independent of the company in accordance with the
ethical requirements that are applicable in Finland and are
relevant to the engagement we have performed, and we have
fulfilled our other ethical responsibilities in accordance with these
requirements.
The auditor applies International Standard on Quality
Management 1 and, accordingly, an audit firm shall design,
implementand maintain a system of quality control including
policies and procedures regarding compliance with ethical
requirements, professional standards, and applicable legal and
regulatory requirements.
Auditor’s Responsibilities
In accordance with the engagement letter, we express an opinion
on whether the tagging of the consolidated financial statements
in the ESEF financial statements has been prepared in all material
respects in accordance with the requirements of Article 4 of
ESEF RTS. We conducted a reasonable assurance engagement
in accordance with International Standard on Assurance
Engagements ISAE 3000.
The engagement includes procedures to obtain evidence on:
• whether the tagging of the consolidated financial statement’s
primary statements in the ESEF financial statements has
been prepared in all material respects in accordance with the
requirements of Article 4 of ESEF RTS
• whether the tagging of the consolidated financial statements’
disclosures and identifying information in the ESEF financial
statements has been prepared in all material respects in
accordance with the requirements of Article 4 of ESEF RTS, and
• whether the ESEF financial statements are consistent with the
audited financial statements.
The nature, timing and extent of the procedures selected depend
on the auditor’s judgment. This includes the assessment of risk of
material departures from the requirements set out in ESEF RTS,
whether due to fraud or error.
We believe that the evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Opinion
In our opinion, the tagging of the consolidated financial
statements in the ESEF financial statements SATO-2022-12-31-fi.zip
of Sato Oyj for the financial year 1.1.–31.12.2022 has been
prepared in all material respects in accordance with the
requirements of Article 4 of ESEF RTS.
Our audit opinion on the consolidated financial statements of
Sato Oyj for the financial year ended 1.1.–31.12.2022 has been
expressed in our auditor’s report dated 9.2.2023. In this report,
we do not express an audit opinion or any other assurance
conclusion on the consolidated financial statements.
Helsinki, February 9, 2023
Deloitte Oy
Audit Firm
Aleksi Martamo
APA
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FIVE YEAR INDICATORS
Key financial indicators 2022 2021 2020 2019 2018*
Net sales, EUR million 291.2 298.3 303.4 295.6 290.4
Net rental income, EUR million 200.4 210.6 220.3 207.1 198.5
Operating profit, EUR million 198.9 304.5 1 79.6 725.6 273.3
Net financing expenses, EUR million -47.0 -45.1 -50.0 -55.1 -42.5
Profit before taxes, EUR million 151.9 259.4 129.5 670.5 230.8
Balance sheet total, EUR million 5,184.7 5,091.4 5,104.7 4,718.2 3,922.4
Shareholders' equity, EUR million 2,480.9 2,351.3 2,155.7 2,055.8 1,554.5
Interest-bearing liabilities, EUR million 2,145.7 2,169.5 2,381.5 2,098.4 1,982.2
Return on invested capital, % (ROIC) 4.3% 6.7% 4.1% 18.9% 7.9%
Return on equity, % (ROE) 5.0% 9.1 % 4.8% 29.6% 12.4%
Equity ratio, % 47.8% 46.2% 42.2% 43.6% 3 9.6%
Personnel, average** 328 276 229 223 215
Personnel at the end of period 325 313 242 229 218
Key indicators per share
Earnings per share, EUR 2.13 3.64 1.80 9.45 3.26
Equity per share, EUR*** 43.82 41.53 38.07 36.31 27.46
Number of shares outstanding, million pcs 56.6 56.6 56.6 56.6 56.6
Operational key figures and net asset value
Operational earnings, EUR million 88.5 101.6 109.0 91.4 98.7
Operational earnings per share, EUR 1.56 1.79 1.92 1.61 1.74
Net asset value, EUR million 2,849.4 2,779.3 2,577.2 2,477.7 1,855.7
Net asset value per share, EUR 50.33 49.09 45.52 43.76 32.77
Cash earnings, EUR million 141.3 107.9 132.1 91.2 97.9
Cash earnings per share, EUR 2.50 1.91 2.33 1.61 1.73
* Key figures since 2019 include the effects of adoption of IFRS 16 Leases. The figures of prior years are unadjusted.
** Including seasonal employees.
*** Equity excluding non-controlling interests.
FORMULAS USED IN CALCULATION
Net rental income
=
Net Sales – Property maintenance expenses
Return on investment, %
=
Operating profit
x 100
Balance sheet total, average during the period
– non-interest-bearing debt, average during the period
Return on equity, %
=
Profit for the period
x 100
Shareholders’ equity (average during the period)
Equity ratio, %
=
Shareholders’ equity
x 100
Balance sheet total
Earnings per share, EUR
=
Profit for the period attributable to owners of the parent
Number of shares, Basic, average during the period
Equity per share, EUR
=
Shareholders' equity attributable to owners of the parent
Number of shares, Basic, at the end of the reporting period
Operational earnings = Profit for the period, IFRS
–/+ Gains and losses from valuation of investment properties
– Profit on sales of investment properties
+ Loss on sales of investment properties
–/+ Profit on sales of new apartments adjusted with sales and marketing expenses
–/+ Profit on sales of land areas
–/+ Fair value change of financial instruments
–/+ Deferred taxed of above items
– Non-controlling interests
Net asset value = Shareholders' equity attributable to owners of the parent
–/+ Fair value of financial instruments (net), net of tax
–/+ Deferred tax assets and liabilities (net)
Cash earnings = Operating profit
+/– Gains and losses from valuation of investment properties
+ Depreciations
+/– Change of provisions
+/– Defined benefit plans
– Cash based financial income and expenses
– Cash based taxes
+/– Other items
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INFORMATION FOR SHAREHOLDERS
THE ANNUAL GENERAL MEETING OF
SATO CORPORATION
Notice is given to the shareholders of SATO Corporation of the
Annual General Meeting to be held on Thursday 23 March 2023
at 13.00 in the SATO building auditorium at the address Panuntie
4, FI-00610 Helsinki. The reception of registered participants and
the distribution of voting tickets will commence at 12.30.
The matters defined in section 5 in SATO Corporation's Articles of
Association will be handled in the Annual General Meeting.
Documents of the General Meeting
The notice of the meeting which includes the meeting agenda
with the draft resolutions will be available on the SATO
Corporation’s website www.sato.fi as of 10 February 2023.
SATO Corporation's financial statements, report of the Board of
Directors and the auditor's report will be available on the said
website no later than on 16 March 2023. The draft resolutions and
the other above-mentioned documents will also be available at
the General Meeting. The minutes of the General Meeting will be
available on the said website on 6 April 2023 at the latest.
Instructions for participants of the General Meeting
Right to attend and registration
Each shareholder who is on 13 March 2023, (record date for
the General Meeting) registered in the shareholder register of
the company maintained by Euroclear Finland Ltd has the right
to attend the General Meeting. A shareholder whose shares
have been entered into his/her/its personal Finnish book-entry
account is registered in the shareholders register of the company.
Registration for the meeting will open on 13 February 2023. A
shareholder who is entered into the shareholders register and
who wishes to attend the General Meeting shall register for the
meeting no later than on Monday, 20 March 2023 at 16.00, by
which time the registration shall be received by the company. The
registration may be made as follows:
• by regular mail to the address SATO Corporation,
Ljubov Baptiste, PO Box 401, FI-00601 Helsinki
• by telephone (+358 201 34 4056/Ljubov Baptiste)
Mon–Fri 9.00–16.00 or
• by e-mail to yhtiokokous@sato.fi
In connection with the registration, also the requested
information such as shareholder’s name, date of birth/business
identity code, telephone number and e-mail address as
well as the name of the assistant or the authorized or proxy
representative shall be submitted to the company.
Personal data disclosed by the shareholders to SATO Corporation
shall be used only in connection with the General Meeting and
the handling of registrations required for it.
If required, the shareholder, his/her/its authorized representative
or proxy representative shall be able to prove his/her/its identity
and/or the right of representation at the meeting.
Holders of nominee-registered shares
A holder of nominee-registered shares is entitled to attend the
General Meeting by virtue of shares on the basis of which he/
she/it on 13 March 2023 (record date for the General Meeting)
would be entitled to be registered in the shareholder register
of the company maintained by Euroclear Finland Ltd. The
attendance also requires that the shareholder is temporarily
entered into the shareholder register maintained by Euroclear
Finland Oy on the basis of such shares by Monday, 20 March
2023 by 10.00. For nominee registered shares, this will constitute
due registration for the General Meeting.
With regard to the nominee-registered shares, the holder of such
shares is advised to request from his/her/its custodian bank
in time instructions for temporary entry on the shareholders
register, the issuing of proxy documents and voting instructions
and registration for the General Meeting. The account manager
of the custodian bank shall request temporary entry of the holder
of the nominee registered shares wishing to attend the General
Meeting into the company's shareholder register no later than
the above-mentioned time.
Representatives and powers of attorney
A shareholder may attend the General Meeting and exercise
his/her/its rights by way of a representative. The shareholder’s
representative shall present a dated power of attorney or
otherwise in a reliable manner prove his/her/its right to
represent the shareholder in the General Meeting. In case a
shareholder participates the General Meeting by means of
several representatives, representing the shareholder with shares
entered into different book-entry accounts, the shares on the
basis of which each representative represents the shareholder
shall be identified in connection with the registration for the
General Meeting.
Proxy documents, if any, should be delivered to SATO
Corporation, Ljubov Baptiste, PO Box 401, FI-00601 Helsinki or by
e-mail at yhtiokokous@sato.fi. by the expiry of the registration
period. In addition to the delivery of proxy documents, the
shareholder or his/her/its representative shall register in the
meeting as described above in the notice.
Other instructions
The meeting will be held in Finnish. Simultaneous interpreting
from Finnish into English is available in the meeting.
Pursuant to Chapter 5 Section 25 of the Finnish Limited Liability
Companies Act a shareholder attending the General Meeting
is entitled to request information concerning the issues on
the Meeting agenda. The shareholder may present questions
referred to in Chapter 5 Section 25 of the Limited Liability
Companies Act also by e-mail to address yhtiokokous@sato.fi
no later than on 20 March 2023 by 16.00. The management of
the company gives in the General Meeting its answers to such
questions presented in written form.
Changes in the shareholdings after the record date of the
General Meeting will not affect the right to participate in the
meeting or the number of votes held by the shareholder.
FINANCIAL PUBLICATIONS
Publication dates for interim reports and half-year financial
report:
• Interim report January–March 11 May 2023
• Half-year financial report January–June 18 July 2023
• Interim report January–September 27 October 2023
The annual report for the financial period, interim reports and
half-year financial report are issued in Finnish and in English.
They are available at the company's website www.sato.fi. Further
information is available from viestinta@sato.fi.
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DISTRIBUTION OF SHARES ON 30 DECEMBER 2022
Shareholder Number of shares Holdings
Balder Finska Otas Ab (Fastighets Ab Balder)
31,971,535
56.3%
Stichting Depositary APG Strategic Real Estate Pool 12,811,647 22.6%
Elo Mutual Pension Insurance Company 7,233,081 12.7%
The State Pension Fund 2,796,200 4.9%
Valkila Erkka 385,000 0.7%
SATO Corporation 166,000 0.3%
Entelä Tuula 159,000 0.3%
Heinonen Erkki 146,684 0.3%
Tradeka Invest Ltd 126,500 0.2%
Research Foundation of the Pulmonary Diseases 120,000 0.2%
Others (117 shareholders) 1,527,603 1.5%
On 30 December 2022, the Group had 127 shareholders entered in the book-entry register. The turnover of SATO Corporation's shares
was 1.7% during the reporting year.
ARTICLES OF ASSOCIATION AND SHARES
SATO Corporation's Articles of Association as in force was
registered on 19 April 2018. The Articles of Association do not
include any provisions for the redemption of shares.
On 31 December 2022, the company's share capital was
EUR 4,442,192. The company has 56,783,067 shares. The share
has no par value.
The company has one series of shares. The shares are included in
the book-entry system maintained by Euroclear Finland Oy.
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GOVERNANCE
SATO’s most important guidelines
and principles include its Code
of Conduct, values, sustainability
programme, guidelines for combating
the grey economy, its partners’ ethical
guidelines, as well as its procurement,
nancing, risk management and
disclosure policies and its HR
management principles.
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Governance
Financial statements
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WE PREVENT RISKS
The purpose of risk management is to advance the fullment of
SATO’s strategic and business objectives. We assess opportunities
and threats that arise in our operations in relation to our set
objectives. We also ensure the continuity of our operations,
produce information to support business decisions and maintain
the organisation’s understanding of the opportunities and
uncertainties of our operating environment.
SATO’s risk management is based on the risk assessment
embodied in the strategic and annual planning process, and
the assessment also covers the risks of the financial reporting
process. The risk assessment includes measures for minimising
risks. Business risks consist of strategic and operational risks
as well as financing and market risks. In order to ensure that
strategic and operational risks are handled comprehensively, key
SATO employees take part in the risk identification process.
Our approach
We have laid down responsibilities for evaluating and monitoring
the realisation of recognised risks. When required, we initiate risk
management measures with the goal of preventing risks from
being realised or to enhance the monitoring of a certain area.
Management can also be strengthened by preparing operating
models for various risk situations.
SATO’s risk management
is based on the risk
assessment embodied in
the strategic and annual
planning process.
We continuously monitor changes in situations and the sufficiency
of management on both the Group level and by the persons
responsible for each risk area.
Risk management system
Risk evaluations and risk management
Key guidelines
• Decision-making model and authorisations
• Financial policy
• Control model for procurement and partner management
(cooperation with suppliers, selection of suppliers, criteria for
suppliers, selection of partners)
• Insurance management system, evaluation and responsibilities
• Internal control system
Process management model
• Ownership of key processes, monitoring and development
model, and indicators
Financial and operational reporting
• Balance between preventive and monitoring indicators
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MANAGEMENT OF KEY RISKS
Risk Description of risk Control measures
Regulatory risk A risk that the activities of the authorities, political guidelines or legal amendments disturb the development of
towns and cities and SATO’s operating conditions.
• Continuous contact with authorities
• Impact on housing policies
• Active monitoring of motions to change laws
Prolonged inflation A risk that the dramatic growth in maintenance costs continues and that the market situation does not provide an
opportunity to transfer the higher costs into rents in full. New investments and renovations have to be postponed
as a result of which the number of repairs grows and customer satisfaction weakens.
• Active pricing and strict cost monitoring
• Careful review of new investments and postponing investment decisions until the market situation improves
• Carrying out renovations in properties where it makes sense technically and financially. For other properties, building-specific
assessment of follow-up measures incl. selling
Market risk A risk that the production of new housing increases supply to the extent that it exceeds demand. This leads to
rental housing vacancies and pressure to even out or lower the rent level especially for the old housing portfolio.
• Close monitoring of the city planning development and construction projects of different areas
• Paying special attention to the microlocation of new investments
• Implementing repairs of the existing housing portfolio in accordance with the repair plans
• Targeted marketing measures
Finland’s economic situation is weakening,
and this will affect the housing markets
A risk that a weaker-than-expected market situation in Finland will be reflected in the housing markets as shrinking
market demand, weakened solvency among the customer base, lower market rents and thus a decrease in the
value of SATO’s housing stock.
• Sufficient financial reserves and liquidity buffers
• Development of the housing portfolio, investments (procurement and repairs) and divestments
• Sensitivity analyses
• Allocation of new investments/microlocation strategy
Reputation risk A risk that SATO’s reputation is damaged, for example, due to non-compliance with personal data protection
regulations, due to partners not operating in the manner required by SATO, or due to neglected repairs causing
health problems among customers. A risk that SATO does not operate responsibly or that irresponsible activities
in the real estate business ruin the reputation of the industry. A risk that a significant industrial operator faces
financial difficulties that are also reflected in the value of housing assets of other operators.
• Compliance with the data protection policy in transactions carried out by the company and its partners
• Expansion of SATO’s service model to partner activity
• Regular updating of the long-term repair plan and compliance with the plan
• Operating in line with SATO’s sustainability programme and investing in themes that have been assessed as material based on
stakeholder dialogue
• Thorough and close monitoring of the financial situation of partners
• Regular communication with managers of partners
• Back-up plans in the case of partners facing difficulties
Personnel risk A risk that human resources are not managed efficiently or that SATO is unable to recruit, train and retain
personnel with the right kind of experience and competence. A risk that competence is concentrated and the
related key personnel risk.
• Reinforcing SATO’s management culture and practices
• Reinforcing SATO’s brand
• Internal training
Significant difficulties in the availability and
price of financing
A risk that current sources of financing are unable to meet SATO’s financing needs in the medium term. A key
risk is a weakening of the availability of financing and a dramatic surge in the cost of financing due to market
development and banks’ weakened financing capacity and the lower demand on the Finnish and international
bond markets.
• Diversified financing
• Sufficient financial reserves
• Maintaining the IG credit rating
Russia risk Doing business in Russia can have a negative impact on the company’s reputation and it can make doing business
difficult in Finland and weaken the company’s ability to procure financing on the market, as well as have an adverse
impact on the financial result or operations of SATO’s properties, not to mention on financing costs or values.
• Withdrawal from Russian business
Risks resulting from climate change Risks resulting from climate change include physical risks, risks resulting from the shift to a low-carbon economy
and social risks. Physical risks can be acute (e.g. extreme weather phenomena) or chronic (permanent climate
change). Transition risks result from changes to legislation, the markets, technology and reputation. Social risks
result from changes in consumer expectations and lifestyle.
More detailed descriptions of the risks are presented in SATO’s TCFD reporting, e.g. as part of sustainability
reporting.
• Identifying and assessing climate change risks and opportunities and preparing scenario analyses regularly
• Reporting under the TCFD framework
• Taking into account risks and adaptation solutions in investments and maintenance
• Operating in line with SATO’s sustainability programme and communicating it openly and transparently
More detailed measures for managing climate change risks are presented in SATO’s TCFD reporting, e.g. as part of sustainability
reporting.
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SUSTAINABILITY SHOWS IN OUR DAILY WORK
For SATO, sustainability is about concrete actions. Our operations
are based on legislation and our values and guidelines. We
comply with approved international accounting standards and
the Finnish Corporate Governance Code in general reporting. In
sustainability reporting, we comply with the GRI guidelines and
SATO’s own guidelines and principles. We report and process
climate-related risks and opportunities in line with the TCFD
framework.
SATO’s most important guidelines and principles include its Code
of Conduct, values, sustainability programme, guidelines for
combating the grey economy, its partners’ ethical guidelines,
as well as its procurement, financing, risk management and
disclosure policies and its HR management principles. SATO’s
operating principles, guidelines and policies are described in the
management approach table.
Sustainability management
The Group’s Corporate Management Group processes all key
corporate management matters, such as those related to the
Group’s strategy, budget, investments, operational planning and
financial reporting. The Corporate Management Group also
executes the Board’s decisions. SATO’s organisational units have
their own management teams, which are responsible for the
preparation and execution of matters.
SATO’s Board of Directors makes strategic policies and decisions
concerning sustainability and approves the sustainability
programme and the annual Sustainability Report. The Board of
Directors discusses the organisation’s impacts on the environment
and society once a year, for the most part, when it approves
the Report of the Board of Directors. In addition, once a year,
the Board of Directors reviews the internal control and risk
management principles, monitors their implementation and
assesses the efficiency of the processes.
In all investment decisions, the Board of Directors takes into
consideration sustainability criteria as part of decision-making.
SATO’s CEO is responsible for executing the Board of Directors'
policies and, with the assistance of the Corporate Management
Group, monitors the implementation of sustainability as part of
business in line with the Board of Directors’ decisions. The Group’s
Chief Financial Officer is responsible for sustainability issues in
the Corporate Management Group. Information on sustainability
issues is distributed in the organisation through communications.
The Sustainability Manager is responsible for overall sustainability
and its development at SATO. The Sustainability Manager
coordinates the preparation and implementation of the
sustainability programmes, supports the company’s business
units in sustainability issues and promotes the increasing of
sustainability know-how in the organisation. The Sustainability
Manager reports at least quarterly to SATO’s Corporate
Management Group.
Sustainability work is planned, monitored and developed
by the sustainability steering group, which meets at least
four times a year. The steering group monitors the progress
of the sustainability targets and is responsible for SATO’s
internal sustainability communications together with SATO’s
communications department. The Sustainability Manager
coordinates the steering group.
Practical measures and development goals related to
sustainability are included in the action plan of each of SATO’s
units. The heads of the units and supervisors monitor the plans
together with the sustainability steering group.
For SATO, sustainability is
about concrete actions.
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CORPORATE GOVERNANCE STATEMENT 2022
1. Introduction
The governance of SATO Corporation (hereinafter “SATO" or
“the Company”) is based on Finnish legislation and SATO’s
articles of association. The Company also complies with the
recommendations of Corporate Governance Code 2020 issued
by the Finnish Securities Market Association (excluding the
procedure for the remuneration of President and CEO as defined
in recommendation 22) as well as SATO’s internal instructions.
The Corporate Governance Code is available on the website of
the Finnish Securities Market Association www.cgfinland.fi.
Since SATO’s shares are not publicly listed, the legislation does
not require SATO to have either the remuneration policy or
the remuneration report as further defined in the Corporate
Governance Code. SATO will not compose the abovementioned
documents, but it drafts a remuneration statement in accordance
with Corporate Governance Code 2015. The ultimate parent
company of SATO, Fastighets AB Balder, is a listed company in
the Stockholm Stock Exchange and it will draft the instructions,
policies and reports regarding the remuneration required by
the Swedish legislation and Corporate Governance Code from
time to time. Those documents may include also information
regarding the remuneration of SATO’s governing bodies.
SATO has issued corporate bonds, which are listed on the
Helsinki stock exchange or Irish stock exchange, and the
Company complies with their rules and regulations for listed
bonds as well as EU’s Market Abuse Regulation, securities markets
legislation and the regulations of supervisory authorities.
SATO draws up its consolidated financial statements as well as
interim reports and half year financial reports in accordance with
international, IFRS reporting standards approved in EU. The
report of the Company’s Board of Directors and the financial
statements of the parent company of SATO Group have been
drawn up in accordance with Finnish accounting legislation. An
independent external appraiser gives a statement about the
values of SATO's housing portfolio and the appropriateness of the
methods used to assess the values.
This statement is being published separately from the annual
report of the Board of Directors. The board of directors has
handled the statement in its meeting on 8 February 2023.
2. Descriptions concerning corporate governance
The authority and governance of the Company are divided
between the annual general meeting, the Board of Directors,
and the President and CEO. The President and CEO implements
the operative business with the assistance of the Corporate
Management Group. Internal audit subordinate to the Board of
Directors is responsible for internal auditing and auditors are
responsible for the external auditing.
The general meeting
The general meeting of the shareholders is SATO’s supreme
decision-making body. The annual general meeting is to be held
once a year within six months of the end of the financial year.
An extraordinary general meeting is held when it is necessary
according to the consideration of the Board of Directors or the
Finnish Limited Liability Companies Act.
The annual general meeting decides on the matters due to it
under the Finnish Limited Liability Companies Act and the articles
of association. These include the adoption of the Company’s
financial statements and consolidated financial statements, the
use of profit indicated on the balance sheet, discharging the
members of the Board of Directors and the President and CEO
from liability, electing the members and Chair of the Board of
Directors and an auditor, and determining the remuneration to be
payable to them. The meeting may also handle other matters to
be dealt with at a general meeting in accordance with the Finnish
Limited Liability Companies Act, such as share issues, acquisition
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of the Company’s own shares and amendments to the articles
of association. The meeting also deals with matters which a
shareholder has requested to be dealt with at a general meeting
in accordance with the Finnish Limited Liability Companies Act.
The resolutions of the general meeting are published as a stock
exchange release after the meeting without delay.
SATO has a single series of shares. Each share confers entitlement
to one vote at a general meeting. Entitlement to attend the
general meeting is held by a shareholder who has been entered
in the register of shareholders maintained by Euroclear Finland
eight working days before the general meeting. The Finnish
Limited Liability Companies Act also contains regulations
concerning nominee-registered shareholders when participating
in a general meeting.
In order to ensure the dialogue between shareholders and
Company bodies and to fulfil shareholders' entitlement to ask
questions, the President and CEO, Chair of the Board of Directors
and the Board members must attend the general meeting.
Persons proposed as Board members must be present at a
general meeting deciding on their election.
The Company’s annual general meeting was held on 24 March
2022. A total of eight shareholders attended the meeting,
representing 91.26% of the Company’s shares and votes. The
minutes of the annual general meeting can be found on the
Company’s website https://www.sato.fi/en/sato-company/
governance/general-meeting-of-shareholders.
Shareholders' Nomination Committee
On 3 March 2015, the annual general meeting decided to
establish a shareholders' Nomination Committee and approved
its rules of procedure. The Committee's task is to prepare
proposals concerning the number and election of the members
of the Board of Directors, the election of the Chair of the Board
of Directors and the remuneration of its members to the annual
general meeting. The committee’s rules of procedure can be
found on the Company’s website https://www.sato.fi/en/sato-
company/governance/rules-of-procedure.
The Committee's term of office begins in October each
year, when the largest shareholders have nominated their
representatives, and ends at the closing of the next annual
general meeting. A shareholder shall name as a member of the
Committee a person independent of the Company.
The shareholders' Nomination Committee consists of the
representatives of SATO's four largest shareholders, which
have been registered in the book-entry system on 1 October
and which accept the position. If a shareholder does not use
its right of nomination, the right transfers to the next largest
shareholder. The fourth largest shareholder of the Company on
1 October 2022, State Pension Fund, has not used its nomination
right so the nomination right has transferred to the fifth largest
shareholder, Mr. Erkka Valkila.
The Chair of the Company's Board of Directors serves as a
specialist member of the Committee. The Committee elects one
of its members to serve as Chair.
The representatives of the following shareholders have been
nominated as members of the Committee:
Balder Finska Otas AB
(holdings on 1 October 2022: 31,352,235 shares, 55.3%)
E
rik Selin, chairman
See further information about the member below in section
“Board of Directors”
Stichting Depositary APG Strategic Real Estate Pool
(holdings on 1 October 2022: 12,811,647 shares, 22.6%)
Hans Spikker
See further information about the member below in section
“Board of Directors”
Elo Mutual Pension Insurance Company
(holdings on 1 October 2022: 7,233,081 shares, 12.7%)
Hanna Hiidenpalo, Master of Economics, born 1966
Chief Investment Officer, Elo Mutual Pension Insurance Company
No shareholdings in SATO Group companies
Erkka Valkila
(holdings on 1 October 2022: 385,000 shares, 0.7%)
Engineer, born 1953
The Nomination Commettee made its resolutions in two meetings
during the term of office starting on 1 October 2022. All the
members of the Nomination Committee participated in the
decision making.
Board of Directors
The general meeting elects between five and nine members
of the Board of Directors and one member of the Board of
Directors to serve as Chair of the Board as well as decides on the
remuneration to the Chair, Vice Chair and members of the Board
of Directors. The Board of Directors elects one of its members to
serve as Deputy Chair. The term of office of the members of the
Board of Directors lasts until the closing of the annual general
meeting following the one at which they were elected.
The annual general meeting on 24 March 2022 elected six
members to the Board of Directors. All elected members also
acted as members of the Board prior to the annual general
meeting. The shareholdings of the members of the Board are
presented in the following list as on 31 December 2022.
Elected as chairman of the Board of Directors was
Erik Selin,
degree in business economics
b. 1967, Managing Director, Fastighets Ab Balder
Swedish citizen
• no shareholdings in SATO Group companies
• no shareholdings in SATO Group companies in by Erik Selin
controlled corporations
• Erik Selin holds 63 000 B-shares in Fastighets AB Balder. Erik
Selin Fastigheter AB (100% controlled by Erik Selin) owns
343,202,400 B-shares and 49,855,968 A-shares in Fastighets AB
Balder which represents 34.1% of the share capital and 47.8%
of votes. Erik Selin is the member of the Board of Directors
and CEO in Fastighets AB Balder. Fastighets AB Balder is the
ultimate parent company of SATO Corporation.
Elected as members of the Board of Directors were
Esa Lager,
LL.M., M.Sc. (Econ.)
b. 1959, professional board member
Finnish citizen
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
Tarja Pääkkönen,
D.Sc. (Corporate strategies), M.Sc. (Construction)
b. 1962, professional board member
Finnish citizen
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
Sharam Rahi,
b. 1975, deputy CEO, Fastighets AB Balder
Swedish citizen
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
• Sharam Rahi holds 3,616,932 B-shares in Fastighets AB Balder.
In addition a company 100 % controlled by Sharam Rahi
holds 5,580,868 B-shares in Fastighets AB Balder. The shares
represent 0.8 % of the share capital and 0.5 % of votes in
Fastighets AB Balder. Sharam Rahi is Deputy CEO in Fastighets
AB Balder.
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Johannus (Hans) Spikker,
Economic Geography, University of Amsterdam
b. 1959, Senior Portfolio Manager Real Estate Europe, APG Asset
Management, The Netherlands
Dutch citizen
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
Timo Stenius,
M.Sc. (Constr. Eng.),
b. 1956, professional board member
Finnish citizen
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
The Board of Directors elected Esa Lager as its Deputy Chair.
The majority of the Board of Directors must be independent of
the Company. At least two Board members who are independent
of the Company must also be independent of significant
shareholders in the Company. The Board of Directors assesses
the independence of its members and declares which of the
members of the Board of Directors are considered independent
of the Company, and which independent of the significant
shareholders. The Board of Directors has conducted the
evaluation of the independence of the members of the Board of
Directors in the meeting held after the annual general meeting
on 24 March 2023.
Members of the Board of Directors except Sharam Rahi are
independent of the Company. Esa Lager and Tarja Pääkkönen are
also independent of the significant shareholders. Sharam Rahi,
Erik Selin, Hans Spikker and Timo Stenius are dependent of the
significant shareholders.
The Company’s Board of Directors is responsible for the proper
organisation of the Company’s governance and its operations. It
is the duty of the Board of Directors to promote the interests of the
Company and all its shareholders.
In 2022, the Board of Directors convened on 11 meetings. An
average of 95.4% of the members of the Board of Directors
attended the Board meetings. Members of the Board of Directors
participated in the meetings as follows: Erik Selin 10/11, Esa Lager
11/11, Tarja Pääkkönen 11/11, Sharam Rahi 11/11, Hans Spikker 9/11
and Timo Stenius 11/11. The CEO report concerning current themes
and the report handling the financial position of the Company are
handled in the meetings of the Board of Directors. In year 2022 the
focus areas of the Board work have been the divestment of 2009
apartments located outside the focus are of the Company as well
as the monitoring the investments and financial position of the
Company. The key audit matters by the auditor are presented to
the Board of Directors in connection with the handling of financial
statements, interim reports and half year financial report.
SATO's Board of Directors has confirmed the rules of procedure
applied to the duties, meeting procedures and decision-making
practices of the Board of Directors. These rules of procedure are
explained on the Company’s website https://www.sato.fi/en/
sato-company/governance/rules-of-procedure. In addition to
matters for decision, the Board of Directors receives up-to-date
information on the Company's operations, financial position and
risks at its meetings.
In addition to the duties specified by the Finnish Limited Liability
Companies Act, the Board of Directors decides on matters which,
considering the extent and size of the Group’s operations, have
considerable importance for the Group’s business. The duties of the
Board of Directors include i.a. the following:
1. confirmation of the Group’s business strategy and monitoring its
implementation
2. confirming and monitoring the annual budget and the business
plan
3. dealing with the financial statements and report of the
Company’s Board of Directors as well as the interim reports and
half year financial reports
4. confirming the Company’s dividend policy and financial targets
5. organization and supervision of risk management, internal
control and internal audit
6. decisions regarding SATO Group’s financing
7. decisions on significant investments and divestments.
The Board of Directors also appoints and dismisses the
Company’s President and CEO and, when necessary, his/her
deputy, as well as the members of the Corporate Management
Group, and determines the terms of their employment and of
their term of office as well as their remuneration schemes.
The duty of the Board of Directors is to promote the best
interests of the Company and all its shareholders. The members
of the Board of Directors do not represent the interest of the
parties that has proposed their election as Board members. The
Board of Directors performs an annual, internal self-assessment
of its activities and its working methods. The purpose of the
self-assessment is to verify how the Board’s activities have been
performed during the year and to serve as a basis for assessing
the Board’s method of operating. The Board of Directors
conducted its self-assessment regarding year 2021 in January
2022 and the summary of self-assessment was presented in the
Board meeting in February.
Diversity of the Board of Directors
The diversity of the Board of Directors supports the Company’s
business, its development and thus the success of the Company.
Diversity strengthens the work of the Board of Directors by
emphasising the views of people of different ages, different
educational backgrounds and different experience concerning
the Company’s development and the steering of its operations.
Diversity increases open discussion and strengthens the decision-
making of the Board members.
While preparing a proposal for the annual general meeting
concerning the number of Board members and the persons to be
elected as members and Chair the Nomination Committee must
take into account the requirement for diversity. The Committee
must evaluate the requirements set for the number of the
members of the Board, their competence in any given situation
and must also evaluate the experience of the Board members,
their knowledge of SATO’s business, education and distribution
of age and gender. A member of the Board of Directors must
have the possibility to spend sufficient time on Board work. The
number of Board members must be sufficient. Board members
must have different skills to support the implementation of the
Company’s current strategic targets. To support and challenge
SATO’s management from various perspectives is also one of
Board’s key tasks.
The requirements for diversity have been implemented in the
composition of SATO’s Board of Directors. The education and
experience of the members of SATO’s Board supplement and
support that of other members. Each member of Sato’s Board has
a degree in technology, in business or economics or a Master of
Laws degree. Board members have experience in management
functions and board memberships in significant companies
and of companies operating internationally. A wide experience
in housing investment, financing and consumer business is
represented in SATO’s Board. Both genders (one woman and five
men) are represented on the Board of Directors and the span
of ages ranges from 55 to 66. The term of office of the Board
members has lasted seven years on average.
The committees of the Board of Directors
At the organisational meeting held after the annual general
meeting, the Board of Directors appoints annually the
Nomination and Remuneration Committee. The Nomination
and Remuneration Committee comprises three to five members
elected by the Board of Directors, one of whom serves as Chair.
The Board of Directors confirms the rules of procedure for the
current committees. The committees have no independent
decision-making authority. Their mission is to prepare matters
for decision by the Board of Directors and the annual general
meeting and they report constantly on their actions to the Board
of Directors. The rules of procedure can be seen on the SATO’s
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website https://www.sato.fi/en/sato-company/governance/
rules-of-procedure.
Serving on the Nomination and Remuneration Committee in
2022 were Chair Erik Selin and members Tarja Pääkkönen and
Hans Spikker. All the members are independent of the Company
and Tarja Pääkkönen is also independent of the significant
shareholders. The members of the committee attended all the
committee meetings, three meetings in the total.
President and CEO
The President and CEO is responsible for managing the Group’s
business operations, their planning, and the attainment of its
goals. He/she is responsible for preparing matters for the Board
of Director’s attention and for executing the decisions of the
Board. The President and CEO is responsible for the ongoing
management of the Company in accordance with the rules and
regulations supplied by the Board of Directors. The President and
CEO serves as Chair of the Corporate Management Group.
The Board of Directors appoints and discharges the Company’s
President and CEO.
As of 18 December 2020 M.Sc. (Tech.) Antti Aarnio was appointed
as SATO’s President and CEO.
The Corporate Management Group
The Corporate Management Group assists the President and CEO
in the planning and management of operations and decision-
making. The Corporate Management Group deals with all key
issues for the management of SATO Group, such as matters
related to the strategy, budgeting, investments, business planning,
and financial reporting. The Corporate Management Group’s
duties include the implementation of the decisions of the Board
of Directors under the leadership of the President and CEO. The
Corporate Management Group has no authority under law or the
articles of association; it serves as a body to assist the President
and CEO. The shareholdings of the members of the Corporate
Management Group are presented as on 31 December 2022.
31 December 2022 the Corporate Management Group consisted
of
Antti Aarnio, President and CEO, Chair of the Management
b. 1972, M.Sc. (Tech.)
member of the Corporate Management Group since 2016
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
Arto Aalto, EVP, Investments
b. 1966, B.Eng
member of the Corporate Management Group since 2022
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
Markku Honkasalo, Chief Financial Officer
b. 1964, LL.M., eMBA
member of the Corporate Management Group since 2016
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
Janne Ojalehto, Chief Commercial Officer
b. 1982, MBA
member of the Corporate Management Group from 2022 to 27
January 2023
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
Elina Vaurasalo, EVP, Housing Business
b. 1974, M. Sc.
member of the Corporate Management Group since 2022
• no shareholdings in SATO Group companies
• in controlled corporations no shareholdings in SATO Group
companies
The Corporate Management Group convened weekly, a total of
44 times. In addition, VP, General Counsel; VP, Human Recourses
and Chief Digital Officer (CDO) have attended the meetings
of the Corporate Management Group. The focus areas of the
Corporate Management Group were pricing and occupancy rate,
maintenance costs, ESG related matters and improvement of
customer experience. In addition, management groups operate
in different areas of business and financing having focus on the
monitoring, development and supervision of its own field of
business.
3. Descriptions of internal control procedures and the main
features of risk management systems
Group financial reporting
The financial reporting of the Company is based on its
management model. The financial result of the group is reported
and analysed internally on monthly basis. Public financial
reporting includes interim reports, half year financial report and
financial statement release which the Board of Directors approve
for publication.
Overview of the risk management systems
SATO’s risk management is based on the risk assessment
embodied in the strategic and annual planning process which
assessment also covers the risks of the financial reporting
process. Risk assessment includes actions to mitigate the risks. As
business risks are considered strategic and operative risks as well
as financing and market risks. Monitoring and controlling risks
related to investments and financing have been subject to special
consideration during 2022.
Responsibility for the arrangement of risk management and
supervision is held by the Company’s Board of Directors
and the President and CEO. The internal audit and internal
control support the Board of Directors in performing its duty of
supervision.
Overview of internal control
The aim of internal control is to help to verify the efficiency,
productiveness and reliability of the Group’s operations, and to
confirm the compliance of operations with the law and other
regulations. In addition, SATO’s activities are steered by SATO’s
internal instructions such as Code of Conduct. SATO’s priority
is that each person working for SATO Group is acquainted
with rules and regulations regarding his/her own tasks and
follows them. SATO organizes regularly training about internal
instructions and it is an essential part of introduction for work.
The Group’s internal control systems serve i.a. to verify that the
financial reports issued by the Company give essentially correct
information on the financial standing of the Group. The Group
has determined for the key spheres of its operations Group-wide
principles and policies which form the basis for internal control.
Each of SATO’s business units has its own controller function to
assure that the financial reporting meets with regulation and
Group’s instructions.
Responsibility for the arrangement of internal control is held
by the Board of Directors and by the President and CEO who
implement the resolutions of the Board. Board members are sent
regularly report on the Group’s financial position and operating
environment. The Board of Directors oversees the effectiveness
of internal control and the accuracy of the financial reporting.
Responsibility for the performance of internal control is held by
the operational organisation of the entire Group, in such a way
that each Group employee is responsible to his or her supervisor
at all times for the supervision of his/her sphere of responsibility.
The content of the financial reporting process and compliance
with regulations are the responsibility of the Group’s financial
administration. The Group’s financial reporting process complies
with the Group’s operational guidelines and process descriptions
as well as control measures for ensuring the quality of reporting.
The controls on the reporting process have been specified on the
basis of a control risk assessment matrix. The types of controls
are, for example, system controls, specifications, or audits or
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actions carried out by management or another party. Responsible
parties have been allocated for controls which are in charge of the
implementation and effectiveness of the controls.
The interpretation and application of accounting standards
has been consolidated in the hands of the Group’s financial
administration, which maintains operating guidelines on financial
reporting, process descriptions, calculation manuals and control
mechanism descriptions, and which attends to the associated
in-house communications. The Group’s financial administration
also oversees compliance with these instructions and procedures.
The monitoring of the budgeting and reporting processes is
based on the Group’s reporting principles, for which the definition
and centralised maintenance is the responsibility of the Group’s
financial administration. The principles are applied uniformly
throughout the Group and a standardised Group reporting system
is in use.
The Group's treasury policy, confirmed by SATO’s Board of
Directors, is observed in the management of financial risks.
SATO’s IT management, in co-operation with the business units,
follows the implementation of data security in the organization in
accordance with the cybersecurity governance model. Data security
in SATO is risk based and it is supervised by a steering group. The
use of data systems is supervised i.a. by data security audits.
4. Other information to be provided in the CG Statement
Internal audit
Internal audit supports the Board of Directors in performing its duty
of supervision. Internal audit acts in accordance with the annual
plan approved by the Board of Directors. Audit objects are elected
in accordance with the Group’s strategic targets, estimated risks
and focus areas. In year 2020 the internal audit conducted two
wide audits.
The internal audit assesses, independently and systematically,
the functionality, efficiency and appropriateness of the Group’s
management and governance systems, as well as the business
processes and risk management. In its reports, the internal audit
makes recommendations for the improvement of systems and
processes.
The aim of the internal audit is to give reasonable reliability of the
correctness of financial and business reporting, the appropriate
management of Company’s assets and the legality of Company’s
activities. In addition, the internal audit aims to promote the
development of the risk management. The person liable for
the internal audit reports to the Chief Financial Officer (as the
member of the organisation) and the findings of internal audit to
the President and CEO as well as to the Board of Directors.
Related party transactions
Persons as defined in detail in the SATO Corporation Related
Party Instructions must report the related party transactions to the
Company in writing.
The report must be submitted for approval prior to completing
the related party transaction. In the case of major transactions,
the Board of Directors will decide whether to accept the reported
related party transaction. In the case of transactions that are part
of SATO's regular business, or minor transactions valued less than
EUR 10,000, the decision can be made by the Chair of the Board,
the President and CEO or the CFO. Regulations concerning
recusal due to the likelihood of bias are observed in decision
making. No approval is required in case of ordinary contracts
concerning lease of apartments.
In consideration when making decision the closeness of the
related party relations and the size of the transaction are taken
into account, as well as any exceptions from market conditions,
whether the transaction is part of SATO Group's daily business,
whether there are financial grounds for the transaction and
whether it is acceptable from the viewpoint of SATO Group.
Insider trading management
SATO’s rules concerning insider trading are based on the EU’s
Market Abuse Regulation (596/2014, “MAR”), the Finnish Securities
Markets Act and they comply with the standards of the Financial
Supervisory Authority and the guidelines of the Helsinki and Irish
stock exchanges where these apply to an issuer of listed bonds.
The insider guidelines include, among other things, guidelines
concerning trading in SATO’s financial instruments. SATO has no
permanent insiders and it does not maintain a list of permanent
insiders. A project-specific list of insiders is based on a decision
by the President and CEO or, if he/she is recused, the CFO.
Insider information is in particular information that concerns the
ability of SATO and the SATO Group to fulfil their commitments in
respect of issued bonds.
In SATO managers (as specified in MAR) are the members of the
Board of Directors and the President and CEO. SATO maintains
a list of them and persons closely associated to them according
to MAR. SATO’s managers are prohibited from trading in SATO’s
financial instruments during the closed period starting 30 days
prior to the publication of SATO’s financial statement or interim
report and ending at the closing of the publication day. Also
persons who participate in the preparation of the financial
statements or interim reports or their publication are prohibited
from trading in SATO’s financial instruments during the closed
period. A separate record of persons acting in the informative
core is maintained of these persons. Managers and their closely
associated persons must notify SATO and Finnish Financial
Supervision Authority of all transactions conducted by SATO’s
financial instruments within three working days of the transaction.
Audit
The annual general meeting elects a single auditor for the
Company, which must be an audit firm approved by the Finnish
Patent and Registration Office. The auditor's term of office is
the financial year and its duties end at the closing of the annual
general meeting following the one at which it was elected.
The auditor for the financial year 1 January to 31 December 2022
was Deloitte Oy with Aleksi Martamo, APA as the auditor in
charge. The audit examines the accounts, financial statements
and administration of the Company and group.
In 2022, the auditor Deloitte Oy was paid auditing fees of EUR
284,722, fees for other assignments related to auditing EUR
55,210 and for other services EUR 0,00 (including all companies
belonging to the same group or chain).
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REMUNERATION STATEMENT 2022
1. Members of SATO’s Board of Directors
1.1 Decision-making procedure
Remuneration payable to the members, deputy chair and chair
of the Board of Directors of SATO Corporation (hereinafter
“SATO”) is resolved by the SATO’s shareholders at the Annual
General Meeting. The proposal for the remuneration is prepared,
together with a proposal for the election of board members
and chair of the Board of Directors, by the Shareholders'
Nomination Committee. The Nomination Committee consists of
representatives of SATO's four largest shareholders registered in
the book-entry system on 1 October, which shareholders have
approved the assignment.
SATO's Annual General Meeting (“AGM”) held on 24 March 2022
made the resolution that the following annual remuneration be
paid for the term starting at the close of the AGM and ending at
the close of the AGM in year 2023:
• Chair of the Board of Directors: EUR 36,000
• Deputy chair of the Board of Directors: EUR 22,000
• Other members of the Board of Directors: EUR 18,000 each.
In addition, the AGM resolved that a meeting fee of EUR 500 per
meeting be paid to the chair, deputy chair and members of the
Board of Directors for meetings of the Board of Directors and its
committees. These fees correspond to the fees paid to members
of the Board of Directors during the previous term of office.
1.2 Fees paid to members of the Board of Directors in 2022
The following fees were paid to members of SATO's Board of
Directors during the financial period of 1 January–31 December
2022:
Erik Selin, chair of the Board of Directors EUR 41,500
Esa Lager, deputy chair of the Board of Directors EUR 27,000
Tarja Pääkkönen EUR 24,000
Sharam Rahi EUR 24,500
Johannus (Hans) Spikker EUR 22,500
Timo Stenius EUR 23,000
A total of EUR 162,500 was paid in fees to members of the Board
of Directors in 2022. During the financial period, no shares or
share-based rights were issued to members of the Board of
Directors as fees.
2. The President and CEO and other managers of the Group
2.1 Decision-making procedure
On the basis of proposals presented by the Nomination and
Remuneration Committee, SATO's Board of Directors makes
resolution on the terms and conditions of the term of office of
SATO's President and CEO and employment of the members
of the Group management team. Board of Directors also makes
resolution on their salaries, the criteria of annual bonus schemes
and long-term incentive schemes, as well as the amount of
bonuses payable based on the schemes, the payment method
and date.
Individuals employed by SATO Group do not receive any
separate compensation for acting as a member of the Board of
Directors or as CEO in the subsidiaries of the Group.
2.2 The President and CEO's service contract
A written service contract has been signed between SATO and its
President and CEO Antti Aarnio, according to which the President
and CEO receives a monthly salary divided into a monetary
component and customary fringe benefits. The President and CEO
is within the scope of the annual bonus and/or long-term incentive
schemes in the manner decided by the Board of Directors.
The period of notice for the President and CEO is six months if
the service contract is terminated by the President and CEO. In
case SATO terminates the service contract Aarnio has the right to
six months’ salary for the notice period and for the severance pay
corresponding to his six months’ salary.
3. Remuneration schemes
The objective of incentive schemes is to combine the targets of
shareholders and key individuals to increase the company's value,
improve the Group's competitiveness and ensure the long-term
financial success.
The following incentive scheme concerning year 2022 is effective
in SATO:
Members of the Group management team and separately
appointed key individuals of the Group are within the scope of an
annual bonus scheme. The bonus scheme for year 2022 includes
group level targets (60%) and individual targets (40%). The
prerequisite for the payment of the bonus is that the threshold of
all group level targets is achieved.
The Board of Directors approves the criteria for annual bonuses,
the individuals within the scope of bonus scheme and the
payment of bonuses. In the highest payment segments the
annual bonuses are paid in two parts: first part in the year
following the earnings period and the second part two years after
the earnings period for those individuals employed by SATO at
the moment of payment.
4. Salaries and fees paid to the President and CEO in 2022
The President and CEO Antti Aarnio received EUR 324,450 in
salary, of which monetary salary accounted for EUR 323,737 and
fringe benefits made up EUR 712. In addition, EUR 51,085 was
paid to him as bonus payment.
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BOARD OF DIRECTORS
ERIK SELIN
born 1967, Business school economist, CEO and Board Member,
Fastighets Ab Balder,
Board member since 2015, Chairman of the Board since March
2016, independent of the company, not independent of the main
shareholders
Primary working experience:
Fastighets AB Balder: CEO and Board Member since 2005
Owner of several companies in real estate business
Main positions of trust:
Skandrenting AB: Chairman of the Board of Directors
Collector AB: member of the Board of Directors
Collector Bank AB: Member of the Board of Directors
Västsvenska Handelskammaren: member of the Board of
Directors
Hexatronic Scandinavia AB: member of the Board of Directors
Hedin Bil: member of the Board of Directors
Ernström & Co: member of the Board of Directors
ESA LAGER
born 1959, LL.M., M.Sc.(Econ.)
Board member since 2014, Deputy Chairman of the Board 2014–
2015, and 2021–, Chairman of the Board 2015–2016, independent
of the company and its main shareholders
Primary working experience:
Outokumpu Oyj: deputy to the CEO 2011–2013, Executive Vice
President - Chief Financial Officer 2005–2013, Executive Vice
President of Finance and Administration 2001–2004, Corporate
Treasurer 1995–2000, Assistant Treasurer 1991–1994
Kansallis Banking Group: Manager at the Head Office/London
Branch 1984–1990
Main positions of trust:
Ilkka-Yhtymä Oyj: Deputy Chairman of the Board of Directors
Alma Media Corporation: member of the Board of Directors
Stockmann Oyj: member of the Board of Directors
GRK Infra Oy: member of the Board of Directors
TARJA PÄÄKKÖNEN
born 1962, Ph.D (Corp.Strategies), M.Sc. (Const. & Architecture),
Executive Partner of Boardman Ltd, Board member since 2013,
independent of the company and its main shareholders
Primary working experience:
Boardman Ltd: Executive Partner, 2010–
Boardman Ltd: Executive Partner and Chairman of Brand
Compass Group 2010–2019
Itella Corporation: Senior Vice President, Corporate Sales and
Marketing and member of Executive Board 2005–2010
Nokia Corporation: Member of the Management Board of Nokia
Mobile Phones and several global Senior Vice President positions
in Europe, the USA and Asia 1994–2004
Mecrastor Oy (PwC): Management Consultant 1992–1994
Kienbaum KmbH, Germany: Management Consultant 1990–1992
Main positions of trust:
Panostaja Oyj: member of the Board of Directors
United Bankers Oyj: member of the Board of Directors and
member of Remuneration Committee
YLVA: member of the Board of Directors and member of
Remuneration Committee
GRK Infra Oy: member of the Board of Directors
Andiata Oy: Advisor Board, Chairman
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BOARD OF DIRECTORS
SHARAM RAHI
born 1973, Board member since 2021
Non-independent of the company or its main shareholders
Primary working experience:
Fastighets AB Balder, vice President since 2005
Main positions of trust:
Member of the Board for several Balder companies,
AMA Group I Borås A: member of the Board of Directors
JOHANNUS (HANS) SPIKKER
born 1959, Economic Geography, University of Amsterdam, Senior
Portfolio Manager Real Estate Europe, APG Asset Management,
Amsterdam, The Netherlands, Board member since 2017,
independent of the company, non-independent of the main
shareholders
Primary working experience:
Senior Portfolio Manager Real Estate, APG Asset Management, as
of 2007
Senior Portfolio Manager Real Estate, Structured Investments,
Pensionfund PGGM, 1997–2007
Asset manager German real estate, SPP Investment Management,
1994–1997
Property manager commercial real estate Germany, Shell
Pensionfund 1991–994
Market researcher MAB Groep BV, a Dutch property development
company, 1986–1991
Main positions of trust: -
TIMO STENIUS
born 1956, M.Sc. (Constr. Eng.), Board member since 2015,
independent of the company, not independent of the main
shareholders
Primary working experience:
Worked as a director responsible for Elo Mutual Pension
Insurance Company's real estate investments as well as all
unlisted investments 2014–2020.
Since 1990, he has been a member of the Board of property
investment and development in a listed company Polar Yhtymä
Oyj and Polar Kiinteistöt Oyj, and since 2001, as the director
responsible for a pension insurance company Eläke-Fennia's
property investments, corporate financing and non-listed equity
investments. In addition, in 1982–1988 he was involved in project
export tasks targeted at the Soviet Union in Finn-Stroi Oy.
Main positions of trust:
S-Pankin Kiinteistöt Oy: Member of the Board of Directors
Tyvene Oy: Chairman of the Board of Directors
Avara Oy: Deputy Chairman of the Board of Directors
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CORPORATE MANAGEMENT GROUP
ANTTI AARNIO
President and CEO
born 1972, M.Sc.(Eng.)
has worked for SATO since 2000
Primary working experience:
SATO Corporation: Vice President/Rental Housing Business and
Investments 2016–2020, Director, Investments and divestments,
Helsinki Region and St. Petersburg 2010–2016,
Nordic Real Estate Partners Oy: Housing investments and
investment management / managing director of Minun Koti
associations 2007–2009,
SATO Corporation, Housing investments:
Director, SATO Asunnot 2006–2007, Real estate manager
2004–2006, Building manager 2003–2004, Project engineer
2002–2003, Administrative building manager 2000–2001
Main positions of trust:
Member of the Board for several SATO Group companies,
Helsinki Region Chamber of Commerce: Regional and housing
committee, member,
Rakli: Member of the Board
Shareholding in SATO: -
ARTO AALTO
Executive Vice President, Investments
born 1966, B.Eng
has worked for SATO since 2002
Primary working experience:
SATO Corporation: Executive Vice President, Investments 2020–,
Director, investments, planning and projects 2018–2020, Director,
investments and projects 2016–2018, Regional Director Oulu
and Jyväskylä 2015–2016, Regional Director Oulu 2009–2015,
Construction Manager 2005–2009, Construction Engineer
2002–2005
HMR Oy: Project Director, St.Petersburg 1998–2002
Main positions of trust:
Member of the Board for several SATO Group companies
Rakli: Member of the Urban Development and Infrastructure
Management Team
Shareholding in SATO: -
MARKKU HONKASALO
Chief Financial Officer
born 1964, LL.M., eMBA
has worked for SATO since 2016
Primary working experience:
Componenta Corporation: CFO 2015–2016,
Valmet Corporation: CFO 2013–2015,
Rautaruukki Oyj: CFO 2009–2013,
Myllykoski Corporation: Director, Administration, Legal & HR
2003–2008,
Different positions in the banking sectors 1989–2003
Main positions of trust:
Member of the Board for several SATO Group companies
Shareholding in SATO: -
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JANNE OJALEHTO
Chief Commercial Officer
born 1982, MBA
has worked for SATO since 2018 until 27 January 2023
Primary working experience:
SATO Oyj, Vice President Commercial 2020–, Director, Sales and
Customer Services 2020, Sales Director 2018–2020.
Restel Oy: Vice President Sales 2015–2018.
Restel Oy: Different management positions in operations and
sales 2006–2018
Main positions of trust: -
Shareholding in SATO: -
ELINA VAURASALO
Executive Vice President, Housing Business
born 1974, M.Sc.
has worked for SATO since 2017
Primary working experience:
SATO Corporation: Executive Vice President, Rental Housing
Business 2021–,Service Director, Rental Housing Business,
2017–2021
S-Group: Development Manager, Customer experience &
analytics, 2012–2017
Kiipula Vocational Centre: Head of Business Unit, Business &
administration, 2009–2012
Managing Director / Entrepreneur, Retail & import business,
2006–2009
Kesko Corporation: Development Manager;
Customer experience & analytics, 2002–2006
PwC Consulting, Management Consultant, Customer
management & analytics, 2001–2002
Main positions of trust:
Member of the Board for several SATO Group companies
Rakli: Member of the Housing Management Team
Shareholding in SATO: -
CORPORATE MANAGEMENT GROUP
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asiakaspalvelu@sato.
p. 020 334 443
sato./en
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