PUUILO PLC
Report by the Board of Directors and Financial Statements
31 January 2026
Unofficial translation
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Table of contents
Report by the Board of Directors ................................................................................................................... 5
Sustainability statement ........................................................................................................................... 23
Puuilo in Brief ................................................................................................................................. 23
General disclosures ........................................................................................................................ 23
Preparation basis ........................................................................................................................ 23
Governance ................................................................................................................................ 24
Strategy ...................................................................................................................................... 28
Impact, risk, and opportunity management ................................................................................. 36
Environmental information .............................................................................................................. 40
EU Taxonomy ............................................................................................................................. 40
ESRS E1 Climate change ........................................................................................................... 43
ESRS E5 Resource use and circular economy ........................................................................... 53
Social information ........................................................................................................................... 57
ESRS S1 Own workforce ............................................................................................................ 57
ESRS S2 Workers in the value chain .......................................................................................... 67
ESRS S4 Consumers and end-users .......................................................................................... 70
Governance information ................................................................................................................. 74
ESRS G1 Business conduct ....................................................................................................... 74
Appendices to sustainability statement ........................................................................................... 78
Financial Statements ............................................................................................................................... 84
Consolidated Statement of Comprehensive Income ......................................................................................... 84
Consolidated Balance Sheet ...................................................................................................................... 85
Consolidated Statement of Changes in Equity ................................................................................................. 86
Consolidated Statement of Cash Flows ......................................................................................................... 87
Notes to the Consolidated Financial Statements.............................................................................................. 88
1 BASIS OF PREPARATION ........................................................................................................................... 89
Note 1.1 Company information ....................................................................................................... 89
Note 1.2 Basis of preparation ......................................................................................................... 89
Note 1.3 Accounting estimates and judgements ............................................................................. 90
Critical judgements in applying accounting policies ........................................................................ 90
2 BUSINESS PERFORMANCE ........................................................................................................................ 91
Note 2.1 Revenue .......................................................................................................................... 91
Note 2.2 Segment information ........................................................................................................ 92
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Note 2.3 Expenses ......................................................................................................................... 92
Note 2.4 Income taxes .................................................................................................................... 98
3 WORKING CAPITAL ............................................................................................................................... 100
Note 3.1 Inventories ..................................................................................................................... 100
Note 3.2 Trade and other receivables ........................................................................................... 100
Note 3.3 Trade and other payables .............................................................................................. 101
4 CAPITAL EMPLOYED ............................................................................................................................. 103
Note 4.1 Goodwill ......................................................................................................................... 103
Note 4.2 Intangible assets ............................................................................................................ 104
Note 4.3 Property, plant and equipment ....................................................................................... 105
Note 4.4 Leases ........................................................................................................................... 107
Note 4.5 Provisions ...................................................................................................................... 110
5 CAPITAL STRUCTURE AND FINANCING ....................................................................................................... 112
Note 5.1 Capital management and net debt ................................................................................. 112
Note 5.2 Equity ............................................................................................................................. 113
Note 5.3 Earnings per share ......................................................................................................... 114
Note 5.4 Financial risk management ............................................................................................ 114
Note 5.5 Financial assets and liabilities ........................................................................................ 117
Note 5.6 Finance income and costs .............................................................................................. 120
Note 5.7 Contingent liabilities ....................................................................................................... 121
6 OTHER NOTES ..................................................................................................................................... 122
Note 6.1 Related parties ............................................................................................................... 122
Note 6.2 Group structure and consolidation .................................................................................. 122
Note 6.3 Significant events after the end of the reporting period ................................................... 123
Note 6.4 New and upcoming accounting standards ...................................................................... 124
Parent company Financial Statements ....................................................................................................... 125
Parent company’s income statement ......................................................................................................... 125
Parent company’s balance sheet............................................................................................................... 126
Parent company’s cash flow statement ...................................................................................................... 127
Notes to the parent company’s financial statements ...................................................................................... 128
Accounting policies ....................................................................................................................... 128
Significant events in the financial period ....................................................................................... 128
Significant events after the end of the reporting period ................................................................. 130
Notes to the income statement ..................................................................................................... 132
Notes to the assets in balance sheet ............................................................................................ 133
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Notes to the equity and liabilities in balance sheet ........................................................................ 133
Holdings in other companies ........................................................................................................ 134
Signatures of Report by the Board of Directors and Financial Statements ............................................................ 135
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Report by the Board of Directors
Puuilo’s business operations
Puuilo is a Finnish discount retail chain. At the end of the financial period that ended on 31 January
2026, the strongly growing chain had 56 stores in different parts of Finland. In addition, customers are
served through an online store. The product assortment includes building supplies, tools, HVAC and
electrical accessories, pet food and supplies, car accessories, groceries, household products, garden
supplies, free-time and other accessories as well as services. Puuilo is one of the leading discount
retailers in Finland and it serves both consumers and B2B customers in the repair and maintenance as
well as construction sector. The company is known for its affordable prices and extensive product
assortment. During the financial period, seven stores were opened: Varkaus, Savonlinna, Lohja,
Mäntsälä, Jyväskylä Keljo, Iisalmi and Heinola.
Company structure
Puuilo Group’s parent company is Puuilo Plc, which engages in the business operations of selling
management services to the operative company of the Group. The Group also includes a retail business
company Puuilo Tavaratalot Oy, which is 100% owned by Puuilo Plc. During the financial year, a new
Swedish subsidiary, Puuilo Varuhus AB, was established. The company has not had any business
operations in financial period 2025.
Outlook for the financial year 2026
Puuilo forecasts that net sales will be €480 – 510 million and the adjusted EBITA will be €80 – 90 million
in the financial year 2026.
The forecast includes elements of uncertainty related to changes in consumer purchasing power and
behaviour. Additionally, geopolitical crises and international tensions may affect product availability and
prices.
Puuilo’s long-term targets
The company’s long-term financial targets for the strategy period 2026 – 2030:
• Growth: Net sales CAGR above 10% and net sales above €800 million by the end of financial
year 2030 (ends in January 2031)
• Profitability: Adjusted EBITA margin above 17% of net sales
• Profit distribution: The company aims to distribute at least 80% of net income for each financial
year
• Leverage: Net debt to adjusted EBITDA below 2.5x
Growth strategy
Puuilo’s target is to continue strengthen its position as one of the leading discount retailers in Finland
by utilising its key strengths: maintaining an attractive and wide product assortment, low prices and a
convenient shopping experience.
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In line with its updated growth strategy, the company aims to open approximately 7 – 10 new stores in
Finland per year and to continue to increase its like-for-like net sales by further increasing Puuilo’s brand
awareness. As part of its updated growth strategy, Puuilo will also begin international expansion by
opening pilot stores in Sweden during the strategy period 2026 – 2030. The company has an efficient
and standardised store opening process, which enables the opening of several stores each year without
negatively affecting other operational activities. New stores are, on average, profitable after the first full
month of opening.
Puuilo continuously aims to enhance its value proposition by offering a wide product assortment that
meets the customer needs at competitive prices. The company also aims to further develop its online
store to provide customers with the opportunity for an omnichannel shopping experience.
Store network development
In the financial year 2025, Puuilo opened a total of seven new stores. In Q1 2025, the company opened
three stores: Varkaus, Savonlinna and Lohja. In the second quarter, stores were opened in Mäntsälä
and Jyväskylä Keljo. In last quarter, Puuilo opened new stores in Iisalmi and Heinola.
In the financial year 2026, Puuilo will open stores in Hollola (opened in March 2026), Espoo Espoonlahti,
Jyväskylä Vaajakoski, Lahti Holma, Kangasala, Raasepori Karjaa and Kurikka. For the financial year
2027, Puuilo has announced store opening in Ylivieska. Additional openings for both years will be
announced as they are finalized.
Our store in Vantaa Virkamies will be relocated to new premises in Vantaa Tammisto in summer 2026
and stores in Jyväskylä Seppälä and Kajaani will be relocated in 2027. According to Puuilo’s definition,
a store is considered new during the year of opening and the following financial year. Relocated stores
are considered like-for-like stores.
Preparations for the first pilot stores in Sweden are progressing as planned. The goal is to open the first
store at the latest in the third quarter of financial year 2027.
On 31 January 2026, Puuilo had a total of 56 stores (49 stores) across Finland. The current store
network is young, approximately half of the stores have been opened during the last five years.
Financial development
Seasonality
Puuilo’s business is, in part, seasonal in nature. As such, there are seasonal peaks in Puuilo’s net sales,
operating result, and cash flows, although seasonal dependence is relatively low compared to the retail
sector in general. Historically, Puuilo’s most important seasons in terms of net sales have been the
second and third quarter of each financial year. Additionally, Puuilo’s net sales are partly impacted by
exceptional, harsh, or seasonally atypical weather.
Net sales, result and profitability
In financial year 2025, Puuilo's net sales increased by 15.4% (+13.3%) to EUR 442.3 million (383.4).
Net sales of Puuilo's stores were EUR 432.7 million (374.4) and net sales of the online store were EUR
9.6 million (9.1), which corresponded to 2.2% (2.4%) of net sales. Like-for-like store net sales increased
by 3.7% (+1.5%). Online store net sales increased by 5.6% (+1.7%).
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The development of net sales was positively impacted by the increase in net sales of both new and the
like-for-like stores. The customer traffic continued to increase also in like-for-like stores. The average
basket size decreased compared to the same period last year.
Puuilo's gross profit for the financial period was EUR 169.0 million (144.6) and the gross margin was
38.2% (37.7%). Margin development was mainly supported by the significant increase in the relative
share of private label sales and the change in the sales mix.
Operating expenses and personnel expenses totalled EUR 72.5 million (61.0), which corresponds to
16.4% of net sales (15.9%). Adjusted operating expenses including personnel expenses were €71.9
million (61.0), or 16.2% of net sales (15.9%). The most significant item in operating expenses was
personnel expenses. Personnel expenses were EUR 44.5 million (38.5), which corresponds to 10.1%
(10.0%) of net sales. The increase in personnel costs was mainly due to new stores as well as the
general increase according to the retail sector collective agreement. Operating expenses included €0.6
million items affecting comparability related to strategic projects. There were no items affecting
comparability in the comparison period.
Adjusted EBITA was EUR 77.4 million (67.0) and the adjusted EBITA margin was 17.5% (17.5%)
increasing by 15.5% compared to the previous year. EBITA was EUR 76.8 million (67.0) and the EBITA
margin was 17.4% (17.5%).
Operating profit was EUR 75.1 million (65.1), which corresponds to an EBIT margin of 17.0% (17.0%).
Net financial expenses were EUR -5.3 million (-5.2). Net financial expenses excluding the effect of IFRS
16 were EUR -2.0 million (-2.3).
Profit before taxes was EUR 69.8 million (59.9). Total income taxes were EUR 13.8 million (12.0). The
net result was EUR 56.0 million (47.9) and earnings per share were EUR 0.66 (0.57).
Balance sheet, financing and cash flow
At the end of the financial year, Puuilo's inventories were EUR 123.2 million (115.5). The increase in
absolute inventory value is mainly due to seven new stores opened during the past twelve months and
private label products for upcoming stores. Additionally, the import volume of private label products
increased as planned. Puuilo aims to further improve inventory turnover in the future.
Operating free cash flow was EUR 72.6 million (44.0). Operating free cash flow was supported by strong
EBITA. The cumulative operational free cash flow for the comparison period was also impacted by the
Hurrikaani arrangement.
At the end of the financial year cash and cash equivalents were EUR 33.0 million (18.3) and the
company’s financial position is healthy. Puuilo's interest-bearing liabilities totalled EUR 163.4 million
(133.1), of which non-current financial loans amounted to EUR 69.9 million (50.0). The Group did not
have any current financial loans (-). Other interest-bearing liabilities consisted of lease liabilities reported
in accordance with IFRS 16. At the end of the financial year, the ratio of net debt to adjusted EBITDA
was 1.3 (1.4), which is in line with the long-term target. The ratio of net debt to adjusted EBITDA
excluding the impact of IFRS 16 was 0.5 (0.5). Net debt excluding the impact of IFRS 16 was
approximately EUR 36.9 million (31.7).
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Investments
Puuilo's investments were EUR 5.8 million (7.1). Investments were mainly related to the furnishing of
new
stores. Comparison period investments were mainly related to the acquisition of Hurrikaani store
chain and the furnishing of new stores.
Personnel
The number of personnel converted into full-time employees (FTE) was 950 (849). The average number
of personnel was 1,129 (1,005). Personnel expenses were EUR 44.5 million (38.5).
Significant events
Refinancing
Puuilo signed a new €100 million long-term financing agreement with OP Corporate Bank Plc. The new
financing agreement has a maturity of 36 months and includes two 12-month extension options. The
new financing agreement replaced the previous agreement signed in 2021.
The financing agreement includes a total of €70 million term loan and €30 million revolving credit facility
(RCF). The funds will be used to repay existing loans, working capital financing and for the Group’s
other general financing needs.
The terms of the financing agreement include one covenant: net debt/EBITDA ratio.
The agreement also includes €30 million uncommitted additional financing option (accordion option).
However, this accordion option requires a separate financing decision from the bank. (Stock exchange
release 27 March 2025)
Change in the holding of Puuilo Plc’s treasury shares
A total of 126,481 Puuilo shares held by the company were conveyed without consideration to 28 key
employees who participated in the 2022–2024 share-based incentive program. The program was
originally announced on 20 April 2022 with a stock exchange release. The conveyance is based on the
authorisation granted to the Board of Directors by the Annual General Meeting of Shareholders held on
15 May 2024. After the share transfer on 14 April 2025, the company held a total of 428,519 own shares.
(Stock exchange release 15 April 2025)
Board of Directors established a new long-term incentive plan for company’s key employees
The Board of Directors of Puuilo Plc decided to establish a new Long-Term Incentive Plan for the key
employees of the Company and its subsidiaries (“LTI”) and launch the first LTI plan period for 2025–
2027.
The purpose of the LTI is to encourage key employees to acquire and own the Company’s shares. The
LTI also aims to align the interests of the shareholders and the key employees as well as to increase
key employees’ motivation and long-term commitment to the Company. The LTI is intended to consist
of annually commencing plan periods, each with a 12-month savings period followed by a holding period
of approximately one and a half years. The Board of Directors will resolve annually on the launch of a
new plan period. Participation in the LTI is voluntary, and key employees are invited to participate in
each plan period separately.
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The first LTI plan period 2025–2027 began on 1 June 2025 and ends on 31 May 2028. The first savings
period ends on 31 May 2026. The holding period begins at the first acquisition of savings shares. In the
2025–2027 plan period, the LTI was offered to approximately 100 key employees of the Group, including
also the Management Team and the CEO. As part of the LTI, the key employees have an opportunity
to make a one-off investment and/or save a proportion of their salaries and invest those savings in
Puuilo shares. With the savings of the 2025–2027 plan period, Puuilo shares will be acquired in four
tranches estimated in September 2025, December 2025, March 2026 and June 2026.
In the 2025–2027 plan period, as a reward for their commitment, the Company grants the key employees
participating in the LTI a gross reward of one free matching share for every savings share acquired with
their savings. The participants have also an opportunity to earn one to three performance-based
matching shares (gross) for each savings share acquired with their savings if the performance criteria
set for the plan period are met. The performance criteria of the plan are tied to the total shareholder
return of the share (TSR), the company’s adjusted earnings before interest, taxes and amortisation
(EBITA) and return on invested capital (ROIC). Continuity of employment and holding of acquired
savings shares for the duration of the holding period, ending on the day following the 2027 financial
statement release, are prerequisites for receiving the award. The potential award will be paid partly in
shares and partly in cash after the end of the holding period. The cash proportion is intended to cover
taxes and statutory social security contributions arising from the award. Matching shares will be freely
transferable after their registration in a participant’s book-entry account. The savings shares and
matching share are Puuilo shares.
The maximum number of matching shares (gross before taxes) for the first plan period of 2025–2027 is
approximately 519 000 shares, calculated at the share price on 16 April 2025. The final number of
matching shares depends on the key employees’ participation and savings rate in the plan, the fulfilment
of the prerequisites for receiving matching shares and the number of shares acquired from the market
with savings. (Stock exchange release 17 April 2025)
Updated long-term financial targets for the strategy period 2026 − 2030
On 10 September 2025, Puuilo’s Board decided on the updated long-time targets. The targets were
published on 11 September 2025.
CFO Ville Ranta left Puuilo in the end of 2025
CFO Ville Ranta announced that he leaves Puuilo to join another company. He left his current position
on 31 December 2025. The search for his successor is underway. (Stock exchange release 1 October
2025)
Members of Nomination Board
Representatives of the three largest shareholders registered in Puuilo Plc’s shareholder register as of 1
October 2025 were elected to the Puuilo’s Shareholders’ Nomination Board along with the Chair of the
Board of Directors, Mammu Kaario, as an expert member. Puuilo Plc's Shareholders' Nomination Board
is a body of the Company’s shareholders responsible for preparing proposals for the election and
remuneration of the members and the Chair of the Board of Directors as well as the remuneration of
Board committee members to the Annual General Meeting 2026 and, when necessary, to the
Extraordinary General Meeting.
The three largest shareholders nominated following members to Puuilo’s Shareholders Nomination
Board: Ampfield Management, L.P., represented by Emerson Moore, Markku Tuomaala, represented
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by Janne Koikkalainen, Evli Fund Management Company Ltd, represented by Ville Tiainen. (Stock
exchange release 14 October 2025)
Interim CFO
Annu von Weymarn has been appointed as interim CFO and member of the Management Team of
Puuilo effective 1 January 2026. Weymarn has served at Puuilo since 2019 and is currently the
company's Head of Financial Controlling. (Stock exchange release 10 December 2025)
Significant events after the end of the reporting period
Flagging notification
On 17 March 2026 Puuilo received a notification in accordance with the Chapter 9, Section 5 of the
Finnish Securities Market Act from The Capital Group Companies, Inc. According to the notification, The
Capital Group Companies, Inc. indirect holdings in shares and votes of the Company fell below the
flagging threshold of 5 percent and was 4.98% after the transaction. (Stock exchange release 18 March
2026)
Proposals of the Shareholders' Nomination Board
The Shareholders’ Nomination Board of Puuilo Plc proposes to the Annual General Meeting that the
number of the members of the Board of Directors will be five (previously five). The Nomination Board
proposes that current members of the Board of Directors, Susanne Hounsgaard, Jens Joller, Mammu
Kaario, Tuomas Piirtola, and Markku Tuomaala, be re-elected. All proposed persons are independent
of the company and its major shareholders except Jens Joller who is independent of the company, but
dependent of the major shareholder. The Nomination Board proposes to the Annual General Meeting
that Mammu Kaario be re-elected as the Chair of the Board of Directors.
The Nomination Board proposes that the remunerations of the members of the Board of Directors are
as follows:
-€70.000 (earlier €65.000) to the Chair of the Board of Directors as annual remuneration
-€37.000 (earlier €33.000) to the other members of the Board of Directors as annual remuneration
-In addition, the Chair of the Audit Committee will be paid €7.000 (earlier €6.000) as annual remuneration
and other members of the Audit Committee €4.000 (earlier €3.000) as annual remuneration
All remunerations will be paid in cash. (Stock exchange release 20 March 2026)
Repurchase of own shares
On 25 March 2026, Puuilo announced that the company’s Board of Directors had decided to use the
authorization given by the Annual General Meeting held on 15 May 2025 to repurchase the company’s
own shares. The repurchases started on 27 March 2026 and ended on 9 April 2026. During this period,
Puuilo repurchased 385,000 shares, corresponding to approximately 0.45% of the total number of the
company’s shares, which is 84,776,953. The average purchase price per share was € 12.798540 and
the total amount € 4,927,438.
The repurchased shares are to be used primarily as part of the reward payments under the share-based
incentive plans for key personnel. The shares were repurchased otherwise than in proportion to the
shareholdings of the shareholders at the market price prevailing at the time of acquisition in public
trading on Nasdaq Helsinki Ltd using the company's unrestricted equity. Following the repurchases, the
company holds a total of 813,519 shares. (Stock exchange release 9 April 2026)
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Flagging notification
Puuilo Plc has received a notification on 9 April 2026 in accordance with Chapter 9, Section 5 of the
Finnish Securities Markets Act. According to the notification, JPMorgan Chase & Co.’s total indirect
holdings in shares and votes of the Company have increased above the threshold of 5% on 7 April 2026
and is now 5.05%. (Stock exchange release 10 April 2026)
Shares and shareholders
Share information and share trading
Puuilo Plc has one class of shares. Each share carries one vote at the company's Annual General
Meeting. The shares have no nominal value. Puuilo Plc's share capital was EUR 80,000 at the end of
the reporting period and the company had 84,776,953 shares.
On the last trading day of the
financial year, 31 January 2026, the closing price of the share was
EUR 12.31. The share turnover during the reporting period was EUR 321 million and 25,330,419 shares.
The highest intra-day share price during the financial year was EUR 15.29 and the lowest intra-day price
was EUR 9.83. At the end of the
financial year, the market value of the shares was EUR 1,038 million.
The company held 428,519 treasury shares at the end of the reporting period.
Further information on Puuilo's shares and shareholders is available on the investor website at
www.investors.puuilo.fi/en/investors/share_information/shareholders and on the management’s
holdings at https://www.investors.puuilo.fi/en/investors/share_information/management_shareholding.
Shareholders
At the end of the financial year, Puuilo had 35,089 registered shareholders.
Puuilo has through a flagging notification in September 2023 from Ampfield Management LP, Inc, been
informed that the company’s indirect holdings are 10.11% of Puuilo’s shares.
Major shareholders on 31 January 2026
Number of shares
% of shares
1. Tuomaala Markku
3,789,578
4.47%
2. Keskinäinen Eläkevakuutusyhtiö Ilmarinen
1,991,000
2.35%
3. Danske Invest Finnish Equity Fund
1,678,475
1.98%
4. Elo Keskinäinen Työeläkevakuutusyhtiö
1,666,000
1.97%
5. Evli Finnish Small Cap Fund
1,300,000
1.53%
6. Op-Suomi -Sijoitusrahasto
1,240,299
1.46%
7. Evli Finland Select Fund
1,237,265
1.46%
8. Op-Henkivakuutus Oy
604,874
0.71%
9. Tuomaala Henri Aleksi
600,000
0.71%
10. Säästöpankki Kotimaa -Sijoitusrahasto
553,949
0.65%
10 largest total
14,661,440
17.29%
100 largest total
23,457,699
27.67%
Nominee registered total
49,493,635
58.38%
Total
84,776,953
100.00%
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Ownership structure on 31 January 2026
Number of shares
% of shares
Private Individuals
17,128,378
20.20%
Pension & Insurance
5,397,279
6.37%
Others
4,473,033
5.28%
Fund company
3,906,442
4.61%
Companies
3,679,177
4.34%
Foundation
699,009
0.82%
Total
35,283,318
41.62%
Nominee registered
49,493,635
58.38%
Breakdown by size of holding on 31 January 2026
Number of shares
Number of shareholders
% of shareholders
% of shares
0-100
17,366
49.49%
0.94%
101-500
12,481
35.57%
3.62%
501-1,000
2,993
8.53%
2.66%
1,001-5,000
1,925
5.49%
4.56%
5,001-10,000
163
0.46%
1.38%
10,001-50,000
102
0.29%
2.60%
50,001-100,000
14
0.04%
1.25%
100,001-
34
0.10%
24.60%
Nominee registered
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0.03%
58.38%
Total
35,089
100.00%
100.00%
Management shareholding
On 31 January 2026, Puuilo Plc’s Board members and the CEO owned a total of 4,032,368 Puuilo Plc’s
shares, which corresponds to 4.76% of the company’s shares and votes.
On 31 January 2026, the CEO had 213,499 Puuilo Plc’s shares, which corresponded to 0.25% of the
company’s shares and votes. On 31 January 2026, Puuilo Plc’s Management Team incl. CEO owned
392,752 Puuilo Plc’s shares, which corresponded to 0.46% of the company’s shares and votes.
Flagging notifications
During the financial year, Puuilo received the following shareholder flagging notifications in accordance
with the Finnish Securities Markets Act:
• On 11 August 2025, Puuilo received a notification in accordance with the Chapter 9, Section 5
of the Finnish Securities Market Act from The Capital Group Companies, Inc, according to which
The Capital Group Companies, Inc’s indirect holdings in shares and votes had decreased below
the threshold of 10% on 8 August 2025 and was 9.84% after the transaction
• On 16 September 2025, Puuilo received a notification in accordance with the Chapter 9, Section
5 of the Finnish Securities Market Act from JPMorgan Chase &C, according to which JPMorgan
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Chase &C ‘s indirect holdings in shares and votes of the Company rose above the flagging
threshold of 5 percent and was 5.02% after the transaction.
• On 15 December 2025, Puuilo received a notification in accordance with the Chapter 9, Section 5 of the
Finnish Securities Market Act from JPMorgan Chase &C, according to which JPMorgan Chase &C ‘s
indirect holdings in shares and votes of the Company had decreased below the flagging threshold of 5
percent and was 4.99% after the transaction.
• On 20 January 2026, Puuilo received a notification in accordance with the Chapter 9, Section 5 of the
Finnish Securities Market Act from The Income Fund of America, according to which The Income Fund of
America‘s indirect holdings in shares and votes of the Company had decreased below the flagging
threshold of 5 percent and was 4.94% after the transaction.
Further information on Puuilo's shares and shareholders is available on the investor website at
www.investors.puuilo.fi/en/investors/share_information/shareholders and on the management’s
holdings at https://www.investors.puuilo.fi/en/investors/share_information/management_shareholding.
Risks and business uncertainties
Puuilo Group's risk management is based on the risk management policy approved by the Board of
Directors. The purpose of the risk management policy is to define the framework, processes,
governance and responsibilities of risk management in Puuilo.
The primary objective of risk management in Puuilo is to support the company’s strategy execution,
continuity of operations and realization of business objectives by anticipating any risks involved in the
company’s operations and managing them in a proactive manner. Enterprise risk management
emphasizes the role of corporate culture and is an integrated part of Puuilo’s operations, planning and
decision-making.
The Board of Directors is responsible for monitoring and ensuring that the Puuilo’s risk management
process functions are comprehensive. The Board defines the risk appetite and tolerance, according to
the current conditions. The Board of Directors is also responsible for approving enterprise risk
management related company policies. Puuilo’s operative management is responsible for achieving the
set objectives and controlling, managing, and mitigating risks that threaten them. The operative
management is also responsible for the risk management work, and for ensuring the performance of
the risk management process and the availability of sufficient resources.
Risks are assessed regularly and managed comprehensively. The Group's risk map and the most
significant risks and uncertainties are regularly reported to Puuilo's Board of Directors, whereas the most
significant risks and uncertainties are reported to the market in the report of the Board of Directors and
significant changes within them are reported in the business reviews and half-year reports.
Most significant risks and uncertainties in Puuilo
The activities of competitors and the entry of new competitors
The Finnish retail market is competitive, so the actions of competitors and the entry of new competitors
may affect Puuilo's position in the market.
It is possible to react to the various actions of competitors through marketing, pricing, and assortment
management, as well as through a rapid expansion of our store network. In addition, risk is managed
by actively monitoring competitors and evaluating their actions.
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Product safety
A failure in product safety control or in the quality assurance of the supply chain could result in financial
losses, the loss of customer trust or reputation, or in the worst case, endanger the health of customers.
The company manages the risk primarily through careful supplier selection, which includes reviewing
suppliers' product safety and quality documentation and customer references. In addition, the company
manages product risk by requiring independent laboratory verification of product safety for higher-risk
products.
Changes in purchase power and customer behaviour
Changes in purchase power and consumer behaviour may occur due to factors such as the general
economic situation, confidence in the economy, employment rate, inflation, energy prices, and interest
rates.
Puuilo strives to influence consumer behaviour through advertising, as well as to maintain a favourable
price image and careful pricing decisions.
Geopolitical Risks
The war in Ukraine and other geopolitical tensions have caused significant uncertainty in Europe and
increased security policy tensions. The potential escalation of conflicts could lead to significant changes
in the supplier environment, affecting Puuilo’s supply chains and increasing procurement costs. The
geopolitical situation and its indirect market impacts may increase customer price sensitivity.
Puuilo aims to manage risk by monitoring the situation and reacting proactively to changes. Additionally,
efforts are made to geographically diversify the supplier chain.
Failure and quality problems of products imported by Puuilo
Products imported by Puuilo imports may have quality problems, which may have negative impact on
the reputation of private label products and among customers. In addition, the expansion and
development of the assortment of private label products may have adverse impact on other supplier
relations.
The risk is mitigated by private label product quality control and active selection management.
Cybersecurity
Despite technical and administrative protective measures, Puuilo’s IT systems can be attacked. If the
intrusion is not detected, it results in a data breach or denial of service. Additionally, the staff's insufficient
knowledge and skills in data protection and handling can lead to information falling into the wrong hands.
Practices, documentation, and guidelines related to cybersecurity are continuously developed. The
capabilities of new AI-based monitoring tools are examined. The risk is also mitigated by regularly
training the employees.
Inefficient inventory management
15
Inefficient inventory management causes losses or revenue losses. Puuilo actively manages product
assortment and monitors inventory turnover.
Pricing Strategy
Puuilo is a discount store, and price level important to Puuilo’s customers. Too high price level can lead
to a deterioration in price perception and a decline in sales.
Puuilo actively monitors prices, and sales pricing is managed through a clear pricing strategy.
Disruptions in supply chains
Disruptions in the company's warehousing and logistics chain of suppliers or its own stores as well as
possible strikes in the logistics sector may have an adverse effect on Puuilo's business, financial position,
profit, and cash flows.
Puuilo manages the risk by decentralizing the supply chain and maintaining inventory levels in stores
and central warehouses at an adequate level.
ESG risks in the supply chain
Puuilo's purchasing activities or its supply chain operations may have deficiencies related to ESG issues.
Risk is that the company does not meet Amfori BSCI requirements or its legal obligations (e.g., due
diligence in supplier selection) for old and/or new suppliers.
Puuilo reviews existing suppliers and requires BSCI certification from suppliers of risk countries.
Responsibility is emphasized in new supplier selections and own factory audits are increased.
Failure or insufficiency of marketing and advertising
Puuilo's advertising and marketing programs may not generate sufficient awareness or increase brand
appeal among customers, and the number of new customers may decline.
Puuilo measures advertising and advertising ROI. Company advertises in media that provides the best
effect.
Slowdown of product assortment development
The development of the company's product assortment may lag behind competitors, and emerging
trends may not be identified. In addition, the attractiveness of the assortment may decrease among
customers.
Puuilo manages risk by actively monitoring the operating environment and its changes, and open-
minded experimenting with new trends.
Key personnel risks
Failure in recruiting or retaining management and other key personnel may adversely affect Puuilo.
The company manages the risk by striving to improve the employer image, by focusing to the quality of
supervisory work, through incentive programs, and by offering meaningful tasks. In addition, recruitment
processes are carried out carefully and suitability assessments are used.
16
Brand strength among consumers
Puuilo's ability to attract customers depends significantly on the strength of its brand, and Puuilo may
not be able to maintain or improve its brand-related perceptions. Risks increase during international
expansion when Puuilo’s brand enters the target market with no existing awareness or history. Failure
in the new market could negatively impact the brand among Finnish consumers as well.
Puuilo actively monitors consumer and customer research, continuously develops advertising concepts
and the product assortment, and improves the customer experience.
The general principles of Puuilo's risk management are also described on the investor website at
https://www.investors.puuilo.fi/en/investors/corporate_governance/risk_management.
Decisions by the Annual General Meeting and the Board of Director’s organisation meeting
Puuilo Plc’s Annual General Meeting was held on 15 May 2025 in Vantaa, Finland. The Annual General
Meeting adopted the Company's annual accounts and the consolidated financial statements for the
financial year 1 February 2024 – 31 January 2025, discharged the persons who have acted as members
of the Company’s Board of Directors and as CEO from liability and approved all proposals made to the
Annual General Meeting by the Board of Directors and the Shareholders’ Nomination Board.
Dividend
The Annual General Meeting resolved that an aggregate dividend of EUR 0.70 per share be paid based
on the balance sheet adopted for the financial year ended on 31 January 2025. Of the proposed dividend,
EUR 0.46 was distributed based on the financial year 2024 result and EUR 0.24 was distributed as a
special dividend. The dividend was paid in two instalments of EUR 0.35 per share. The record date of
the first dividend instalment was 26 May 2025 and the pay date was 2 June 2025. The record date of
the second dividend instalment was 16 October 2025 and the pay date 23 October 2025. The Board
was authorized to decide, if necessary, on new dividend payment record date and pay date for the
second instalment, if the rules and statutes of the Finnish book-entry system change or otherwise so
require. The remaining distributable assets remain in equity.
Composition of the Board of Directors
The number of members of the Board of Directors was confirmed to as five (5). Jens Joller, Mammu
Kaario and Tuomas Piirtola were re-elected, and Susanne Hounsgaard and Markku Tuomaala were
elected as new members of the Board of Directors for a term ending at the end of the next Annual
General Meeting.
The Annual General Meeting elected Mammu Kaario as the Chairman of the Board of Directors.
Remuneration of the members of the Board of Directors
The Annual General Meeting resolved that the annual remuneration to the members of the Board of
Directors will be paid as follows: to the Chairman of the Board of Directors EUR 65,000 and to the other
members EUR 33,000 each. In addition, the Annual General Meeting resolved that the annual
17
remuneration to the members of the Audit Committee will be paid as follows: to the Chairman of the
Audit Committee EUR 6,000 and to the other members of the Audit Committee EUR 3,000.
Auditor
KPMG Oy Ab, a firm of authorized public accountants, was elected as auditor of the Company for the
financial year 1 February 2025 – 31 January 202. Henrik Holmbom, APA, acted as the auditor with
principal responsibility. KPMG Oy Ab also acted as the Company's sustainability reporting assurance
provider and Holmbom, ASA, as the principally responsible sustainability reporting assurance provider.
The auditor’s remuneration is paid against an invoice approved by the Company.
Authorization for the Board of Directors to resolve on the repurchase and/or on the acceptance as pledge of the Company’s
own shares
The Annual General Meeting authorized the Board of Directors to resolve on the repurchase and/or on
the acceptance as pledge of an aggregate maximum of 8,477,695 Company's own shares provided,
however, that the number of shares held by the Company at any time does not exceed 10 per cent of
the total number of shares in the Company. Own shares can be repurchased only using the unrestricted
equity of the Company at a price formed in public trading on the date of the repurchase or otherwise at
a price determined by the markets. The Board of Directors decides on all other matters related to the
repurchase and/or on the acceptance as pledge of own shares. Own shares can be repurchased using,
inter alia, derivatives. Own shares can be repurchased otherwise than in proportion to the shareholdings
of the shareholders (directed repurchase). The authorization cancelled the authorization granted on 15
May 2024 to decide on the repurchase of the Company’s own shares. The authorization is effective until
the beginning of the next Annual General Meeting, however, no longer than until 31 July 2026.
Authorization for the Board of Directors to decide on the issuance of shares as well as the issuance of special rights entitling
to shares
The Annual General Meeting decided to authorize the Board of Directors to resolve on the issuance of
shares and the issuance of special rights entitling to shares. The aggregate number of new shares to
be issued may not exceed 8,477,695 shares, which corresponds to approximately 10 per cent of all the
shares in the Company. The Board of Directors decides on all other conditions of the issuance of shares
and of special rights entitling to shares. The issuance of shares and of special rights entitling to shares
may be carried out in deviation from the shareholders' pre-emptive rights (directed issue). The
authorization cancels the authorization granted on 15 May 2024 to decide on the repurchase of the
Company’s own shares. The authorization is effective until the beginning of the next Annual General
Meeting, however, no longer than until 31 July 2026.
Authorizing the Board of Directors to resolve on donations for charitable purposes
The Annual General Meeting resolved to authorize the Board of Directors to resolve on donations for
charitable or corresponding purposes in a total maximum of EUR 50,000. The Board of Directors was
authorized to decide on the donation recipients, purposes of use and other terms of the donations. The
authorization was proposed to remain effective until the end of the Annual General Meeting 2026,
18
however, no longer than for a period of 18 months from the date of the resolution of the Annual General
Meeting.
Antti Ihamuotila, attorney-at-law, chaired the meeting.
The minutes of the Annual General Meeting is available on the Puuilo investor website at
www.investors.puuilo.fi/en/corporate-governance/general-meeting.
Decisions by the Board of Director’s organisation meeting
The following members were re-elected to the Audit Committee: Mammu Kaario (Chair), Tuomas
Piirtola and Jens Joller.
Proposal for profit distribution
The Board of Directors of Puuilo Plc proposes to the Annual General Meeting to be held on 12 May
2026 that a dividend of EUR 0.54 per share be distributed based on the financial year 2025 result and
that an additional special dividend of EUR 0.12 per share be distributed. The total proposed dividend
which implies to EUR 0.66 per share and will be paid based on the balance sheet to be confirmed for
the financial year 1 February 2025 − 31 January 2026 on shares held outside the company. The
remaining distributable assets will remain in equity. The Board of Directors proposes that the dividend
be paid in two instalments.
The first instalment, EUR 0.33 per share, will be paid to shareholders registered in the company’s
register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 19 May 2026.
The board proposes that the first dividend instalment payment date be 26 May 2026.
The second instalment, EUR 0.33 per share, will be paid to shareholders registered in the company’s
register of shareholders kept by Euroclear Finland Ltd on the instalment’s record date 15 October 2026.
The board proposes that the second instalment payment date be 22 October 2026. The Board proposes
that it be authorised to decide, if necessary, on new dividend payment record dates and pay dates for
the second instalment, if the rules and statutes of the Finnish book-entry system change or otherwise
so require.
As at the date of the proposal for the distribution of profit, 24 March 2026, a total of 84,348,434 shares
were held outside the company, and the corresponding total amount of dividends was EUR
55,669,966.44.
The distributable assets of the Group’s parent company total EUR 133,155,191.36 which profit for the
financial year is EUR 57,574,379.88. The proposed regular dividend based on the financial year 2025
result corresponds to approximately 81% of Puuilo Group’s net income for the financial year. The
proposed total dividend corresponds to approximately 100% of Puuilo Group’s net income for the
financial year 2025.
Annual General Meeting
Puuilo’s Annual General Meeting will be held on 12 May 2026.
19
Key figures
EUR million
1 Feb 2025 -
31 Jan 2026
1 Feb 2024 -
31 Jan 2025
1 Feb 2023 -
31 Jan 2024
Net sales
442.3
383.4
338.4
Net sales development (%)
15.4%
13.3%
14.2%
Like-for-like store net sales development (%)
3.7%
1.5%
5.2%
Online store net sales development (%)
5.6%
1.7%
-11.2%
Gross profit
169.0
144.6
123.9
Gross margin (%)
38.2%
37.7%
36.6%
Adjusted EBITA*
77.4
67.0
54.1
Adjusted EBITA margin (%)*
17.5%
17.5%
16.0%
Adjusted EBITA* margin development (%)
15.5%
23.8%
10.9%
EBITA*
76.8
67.0
54.1
EBITA margin (%)*
17.4%
17.5%
16.0%
EBIT
75.1
65.1
52.8
EBIT margin (%)
17.0%
17.0%
15.6%
Net income
56.0
47.9
38.7
EPS (EUR)
0.66
0.57
0.46
Dividend (EUR per share)
0.66**
0.70
0.38
Operating free cash flow
72.6
44.0
54.8
Effective dividend yield (%)
5.4%**
6.8%
4.3%
Price to earnings ratio (P/E)
18.5
18.0
19.4
Net debt / adjusted EBITDA
1.3x
1.4x
1.5x
Net debt / adjusted EBITDA excl. impact of IFRS 16
0.5x
0.5x
0.5x
Total equity per share
1.2
1.2
1.0
Number of stores (end of period)
56
49
42
Number of personnel converted into full-time employees
(FTE)
950
849
791
* Operating profit before the amortisation and impairment of intangible rights
** Proposal of Board of Directors
20
Calculation of alternative performance measures and other key figures
Puuilo uses alternative performance measures to reflect the changes in business performance and
profitability. These indicators should be examined together with the key performance indicators
compliant with IFRS Accounting Standards.
Like-for-like store net sales development is used to reflect the changes in Puuilo’s business volume
between periods. The indicator reflects the change in the net sales excluding the impact of new stores.
Like-for-like stores include the stores that have existed during both the review period and the comparison
period.
Adjusted profit and profitability indicators are used to improve the comparability of operational
performance between periods. Items affecting comparability include unusual material items outside the
ordinary course of the business such as listing expenses and business arrangements.
Alternative performance measures, adjusted for the effect of IFRS 16, are used to monitor the
achievement of financial targets. EBITDA excluding the effect of IFRS corresponds to EBITDA before
the adoption of IFRS 16.
In addition, financial performance indicators for the group have been presented as alternative
performance measures. The management uses these indicators to monitor and analyse business
performance, profitability, and financial position.
Key figure
Definition
Like-for-like store net sales
development (%)
Like-for-like store net sales development is calculated as the net sales
development of the
comparable stores that are not considered new or
closed stores.
A store is considered a new store during the opening year and the
following
financial year after the opening. Relocated stores are considered
as like
-for-like stores.
Online net sales
development (%)
Change in online store net sales for the period divided by online store net
sales for the
previous period
Gross profit
Net sales – materials and services
Gross margin (%)
Gross profit as percentage of net sales
EBITA
Operating profit before amortisation and impairment of intangible rights
EBITA margin (%)
EBITA as percentage of net sales
Adjusted EBITA
EBITA adjusted with items affecting comparability
Adjusted EBITA development
(%)
Change in adjusted EBITA for the period divided by adjusted EBITA for the
previous period
Adjusted EBITA margin (%)
Adjusted EBITA as percentage of net sales
EBIT (operating profit)
Profit before income taxes and finance income and finance costs (operating
profit)
21
EBIT margin (%)
EBIT as percentage of net sales
Earnings per share
(basic)
(EUR)
Earnings per share have been calculated by dividing the profit for the period
according to the consolidated income statement by the weighted average
number of shares issued.
Earnings per share
(diluted)
(EUR)
Earnings per share have been calculated by dividing the profit for the period
according to the consolidated income statement by the weighted average
diluted number of shares issued.
EBITDA
Operating profit before depreciation, amortisation, and impairment
Adjusted EBITDA
EBITDA before items affecting comparability
Operating free cash flow
Adjusted EBITDA – depreciation of right-of-use assets – change in net
working capital in cash flow statement
– net capital expenditure
Effective dividend yield (%)
Dividend per share / Share price at the end of the period
Price to earnings ratio (P/E)
Share price at the end of the period / Earnings per share
Net debt / Adjusted EBITDA
Interest-bearing liabilities (loans from financial institutions + lease liabilities)
–
cash and cash equivalents divided by annualised adjusted EBITDA
Net debt / Adjusted
EBITDA
excl. IFRS 16
impact
Interest-bearing liabilities excluding IFRS 16 lease liabilities – cash and cash
equivalents divided by adjusted EBITDA
– lease expenses
Total equity per share
Total equity attributable to owners of the parent / shares
22
Reconciliation of certain alternative performance measures
EUR million
1 Feb 2025 -
31 Jan 2026
1 Feb 2024 -
31 Jan 2025
1 Feb 2023 -
31 Jan 2024
Items affecting comparability
Strategic projects
0.6
-
-
Items affecting comparability
0.6
-
-
Gross profit
Net sales
442.3
383.4
338.4
Materials and services
273.3
238.8
214.5
Gross profit
169.0
144.6
123.9
EBITA and adjusted EBITA
Operating profit
75.1
65.1
52.8
Amortisation and impairment of intangible rights
1.6
1.9
1.3
EBITA
76.8
67.0
54.1
Items affecting comparability
0.6
-
-
Adjusted EBITA
77.4
67.0
54.1
EBITDA and Adjusted EBITDA
Operating profit
75.1
65.1
52.8
Depreciation, amortisation and impairments
22.1
19.0
15.2
EBITDA
97.2
84.1
68.0
Items affecting comparability
0.6
-
-
Adjusted EBITDA
97.8
84.1
68.0
Operating free cash flow
Adjusted EBITDA
97.8
84.1
68.0
Net capital expenditure
-5.8
-7.1
-4.7
Depreciation on right-of-use assets
-17.3
-14.8
-11.9
Changes in working capital
-2.1
-18.2
3.4
Operating free cash flow
72.6
44.0
54.8
Net debt / Adjusted EBITDA
Net debt
130.4
114.8
101.3
Adjusted EBITDA
97.8
84.1
68.0
Net debt / Adjusted EBITDA
1.3
1.4
1.5
Net debt / adj.EBITDA excl. impact of IFRS 16
Net debt
130.4
114.8
101.3
IFRS 16 lease liabilities
-93.5
-83.1
-72.8
Net debt excl. iImpact of IFRS 16
36.9
31.7
28.5
Adjusted EBITDA, rolling 12 mths
97.8
84.1
68.0
Rents from lease agreements, rolling 12 mths
-18.8
-16.0
-12.3
Adjusted EBITDA excl. impact of IFRS 16
79.1
68.1
55.7
Net debt / adj.EBITDA excl. impact of IFRS 16
0.5
0.5
0.5
23
Sustainability statement
Puuilo in Brief
Puuilo is a Finnish discount retail chain. At the end of the financial period that ended on 31 January
2026, the strongly growing chain had 56 stores in different parts of Finland. In addition, customers are
served through an online store. The product assortment includes building supplies, tools, HVAC and
electrical accessories, pet food and supplies, car accessories, groceries, household products, garden
supplies, free-time and other accessories as well as services. Puuilo is one of the leading discount
retailers in Finland and it serves both consumers and B2B customers in the repair and maintenance as
well as construction sector. The company is known for its affordable prices and extensive product
assortment.
Puuilo Group’s parent company is Puuilo Plc, which is a Finnish public limited company established
under Finnish law. The company is headquartered in Helsinki, Finland. Puuilo Plc is listed on the Nasdaq
OMX Helsinki Stock Exchange.
General disclosures
Preparation basis
General basis for preparation of the sustainability statement (BP-1)
Puuilo's sustainability report has been prepared for the financial year from 1 February 2025 to 31
January 2026. It covers the entire Puuilo Group, including the parent company Puuilo Plc, its 100%-
owned subsidiary Puuilo Tavaratalot Oy and it’s 100%-owned subsidiary Puuilo Varuhus Ab. Puuilo
Varuhus Ab had no operations during the financial period. The scope of consolidation of the
sustainability report is thus the same as in the financial statements. The assessment of impacts, risks,
and opportunities at the beginning and end of the value chain has been included in the principles of
action and attempts have been made to include indicators as accurately as the availability of information
on product groups allows.
The reported sustainability topics are based on the double materiality analysis updated in 2025. The
sustainability statement has been prepared in accordance with Chapter 7 of the Finnish Accounting Act
and the European Sustainability Reporting Standards (ESRS).
No information related to intellectual property, know-how, or results of innovation has been omitted from
the sustainability statement.
Disclosures in relation to specific circumstances (BP-2)
Puuilo’s financial year begins on 1 February and ends on 31 January. In this report and its tables, the
year refers to the financial year, not the calendar year.
The availability and quality of information related to the beginning and end of the value chain can cause
uncertainty in the reported data. Nevertheless, the reporting is considered to provide sufficient and
comparable information across reporting periods. The methods used in carbon footprint calculations
and the uncertainties and limitations related to data quality are detailed in section E1-6. The value chain
24
information regarding resource inflows in section E5-4 has been assessed using the company's internal
data, as Puuilo does not manufacture or further process products itself and does not have access to
detailed information about the value chain.
Individual reported metrics have not been separately validated by an external party.
Puuilo updated its sustainability strategy during the reporting period, and the metrics used to monitor
the implementation of the strategy were also updated. As a result, this sustainability statement includes
the return rate (S4-5) as a new metric, which was not included in the sustainability statement for the
financial year 2024.
In its 2025 reporting, Puuilo does not report the following material disclosure requirements or datapoints
in accordance with Appendix C of ESRS 1:
• SBM-1 Strategy, business model and value chain: paragraph 40 (b) and (c)
• SBM-3 Material impacts, risks, and opportunities and their interaction with strategy and
business model: paragraph 48 (e)
• E1-9 Anticipated financial effects from material physical and transition risks and potential
climate-related opportunities
• E5-6 Anticipated financial effects from resource use and circular economy-related impacts,
risks and opportunities
• S1-13 Training and skills development
• S1-14 Health and safety: data points on the number of days lost due to work-related health
issues, injuries, accidents, fatalities, and occupational diseases
• S1-15 Work-life balance
Governance
The role of the administrative, management and supervisory bodies (GOV-1, G1.GOV-1)
Responsibilities of the Board of Directors
Puuilo’s Board of Directors oversees the company’s operations and administration and decides on
significant matters related to the company’s strategy, investments, organisation and financing. The
Board of Directors has general authority in all matters not assigned to other bodies by law or the Articles
of Association. Its responsibilities include approving the financial statements and the report by the Board
of Directors, including the sustainability statement, as well as half-year and business reviews; deciding
on strategically significant business matters; confirming group-wide policies; and ensuring appropriate
arrangements for risk management and internal control. The Board of Directors also appoints the CEO
and other members of the management team and decides on the terms of their employment. The Board
operates under a written charter defining its main duties and operating principles.
Until the Annual General Meeting on 15 May 2025, the Board of Directors consisted of six members,
and from 15 May 2025 onwards, five members.
Board composition until 15 May 2025:
Chair: Lasse Aho
Members: Bent Holm, Jens Joller, Mammu Kaario, Anne-Mari Paapio, Tuomas Piirtola
25
Board composition from 15 May 2025:
Chair: Mammu Kaario
Members: Susanne Hounsgaard, Jens Joller, Tuomas Piirtola, Markku Tuomaala
Until 15 May 2025, 67% of Board members were men and 33% women; from 15 May 2025 onwards,
60% were men and 40% women. Based on the independence assessment, all Board members were
independent of the company and significant shareholders, except for Jens Joller, who was independent
of the company but not of a significant shareholder. The gender ratio of the Board was 2:4 until 15 May
2025 and 2:3 thereafter. The proportion of independent Board members was 83% until 15 May 2025
and 80% thereafter.
During the reporting period, Puuilo’s management team consisted of seven members, all of whom
participated in operational management: CEO Juha Saarela, CFO Ville Ranta (until 31 December 2025),
Annu von Weymarn (interim CFO from 1 January 2026), Marketing Director Perttu Partanen, Purchasing
and Logistics Director Markku Lampela, HR Director Sirkkaliisa Kulmala, Sales Director Markus
Kaatranen, and IT Director Juha Parviainen.
The gender ratio of the management team was 1:6 until 31 December 2025 and 2:5 from 1 January
2026. On the previous financial year, it was 1:6. There are no employee representatives on the
management team or the Board of Directors.
The members of the Audit Committee were: Mammu Kaario (chair), Jens Joller and Tuomas Piirtola.
The duties of the Audit Committee include overseeing financial and sustainability reporting, risk
management, the arrangement of audit and assurance of sustainability reporting, internal audit, as well
as matters related to compliance and governance. The committee does not have independent decision-
making power but prepares matters for decision by the Board of Directors or the Annual General Meeting.
Members of the Board of Directors must have the required qualifications and expertise to perform their
duties. The Board of Directors collectively has sufficient knowledge and experience of Puuilo's business
environment, industry, and product range.
Responsibilities of the Management Team
The management team acts as the top operational decision-maker in the Group. The management team
participates in key strategic and operational decision-making and is responsible for resource allocation
and performance assessment. The CEO serves as the chair of the management team. The
management team reports strategically significant issues to the Board of Directors and prepares matters
that fall under the Board of Directors’ decision-making authority.
The management team members are responsible, among other duties, for Puuilo's sustainability work
and for setting related targets. The CEO is responsible for overall sustainability, including economic,
environmental, and social responsibility. The Purchasing and Logistics Director is responsible for the
supply chain (product responsibility, logistics, and value chain employees), and the HR Director is
responsible for social responsibility regarding the company's own workforce. The CFO is responsible
for administration and reporting.
26
The management team has extensive experience and expertise in their respective areas, including
material sustainability topics. The management team has access to Puuilo’s internal sustainability
expertise, and external experts are consulted when necessary.
The same control measures and procedures used in other company operations are applied to manage
sustainability impacts, risks, and opportunities. These are integrated into internal control processes. The
management team is responsible for ensuring that risk management and internal control are
appropriately organized.
Information provided to and sustainability matters addressed by the undertaking’s administrative, management
and supervisory bodies (GOV-2)
Metrics and targets have been established for Puuilo’s sustainability strategy and integrated into the
company’s regular financial reporting. Strategically significant sustainability key performance indicators
are reported regularly to the management team and the Board of Directors. The frequency of
management team reviews is defined in the sustainability strategy.
Puuilo’s Board of Directors regularly addresses matters related to personnel and information security.
Emissions from transportation are reported to the Board of Directors twice a year. Puuilo’s sustainability
statement is presented to the Board of Directors in connection with the financial statements. The Board
of Directors approves the sustainability statement as part of the report by the Board of Directors.
Sustainability and sustainability-related matters are addressed by the management team based on
business needs. The management team participates in identifying impacts, risks and opportunities, as
well as in the assessment of double materiality. The assessment process also includes implementing
the due diligence process according to the UN Guiding Principles on Business and Human Rights and
the OECD Guidelines for Multinational Enterprises to identify adverse impacts on people and the
environment.
The management team updated the double materiality assessment during the financial year 2025, and
the results were reported to the Audit Committee and the Board of Directors. The Board of Directors
approved the results of the assessment.
Puuilo’s sustainability strategy was updated during the reporting period and approved by the Board of
Directors.
The Audit Committee of the Board of Directors addresses key sustainability matters. During the reporting
period, the Board of Directors and its Audit Committee addressed, among other things, the following
sustainability topics:
• the sustainability statement for the previous financial year
• the update of the double materiality assessment
• the update of the sustainability strategy
• the results of the employee survey
• the performance of strategically significant sustainability metrics
27
Integration of sustainability-related performance in incentive schemes (GOV-3)
Sustainability performance is not included in incentive systems.
Statement on due diligence (GOV-4)
Core elements of due diligence
Paragraph in the sustainability statement
a) Embedding due diligence in governance, strategy and business mode
ESRS 2 GOV-2
ESRS 2 SBM-1, ESRS SBM-3
ESRS 2 IRO-1
b) Engaging with affected stakeholders in all key steps of the due diligence
ESRS 2 SBM-2
S1-2
S4-2
G1-2
c) Identifying and assessing adverse impacts
ESRS 2 SBM-3, ESRS 2 IRO-1
d) Taking actions to address those adverse impacts
E1-3, E5-2, S1-3, S1-4, S2-4, S4-3, S4-4
e) Tracking the effectiveness of these efforts and communicating
E1-5, E1-6, E5-3, E5-5, S1-5, S2-5, S4-5
Risk management and internal controls over sustainability reporting (GOV-5)
Puuilo's sustainability reporting risk management follows the company's general risk management
approach. Puuilo Group's risk management is guided by the risk management policy approved by the
Board of Directors. The purpose of the risk management policy is to define the risk management
framework, processes, management, and responsibilities at Puuilo. Puuilo’s risks are classified into
strategic, operational, financial, compliance and sustainability risks. Risks are assessed based on their
impact, likelihood and the current level of controls, in accordance with the finance function’s guidelines.
Puuilo has defined roles and responsibilities for sustainability reporting. The finance department is
responsible for qualitative information in the report, which is based on interviews with responsible
persons or previous year's reporting when applicable. The responsible person for each area participates
in validating the content.
The finance department collects quantitative data from responsible persons and, where necessary,
consolidates and analyses the data. The CFO is responsible for collecting, reporting, and publishing
sustainability information as part of the report by the Board of Directors.
Internal control of reporting is based on monitoring and controls performed through self-assessment,
with the results reported to the Board of Directors. Puuilo has no separate internal audit function. The
finance department is responsible for monitoring internal control. The Board of Directors may use
internal or external resources to conduct separate internal audits if necessary.
The Audit Committee monitors the preparation and progress of the reporting. The most significant
identified uncertainties relate to the estimation of emissions data. The accuracy of available data is
improved by developing data collection processes.
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Strategy
Strategy, business model and value chain (SBM-1)
Puuilo is a Finnish store chain founded in 1982, specializing in DIY, household goods, and pet products.
By the end of the financial year 2025, Puuilo had 56 stores nationwide and an online store, which is an
essential part of Puuilo's multichannel business model. Puuilo serves both private customers and
companies focused on maintenance, repair, or construction. During the reporting period, Puuilo
operated exclusively in Finland.
Each store's product range is the same. It consists of ten main product groups: building materials, HVAC
and electrical accessories, car accessories, household products, garden supplies, pet food and supplies,
tools, free-time and other accessories, groceries, as well as services. The share of seasonal products
is small. The product range includes approximately 30,000 items.
The number of full-time employees in the Group at the end of the reporting period was 950 (849). All
staff work in Finland. The Group's net sales was €442.3 million (€383.4 million).
Company's growth strategy focuses on Puuilo's commercial strengths: low prices, a wide range of
products, and an easy shopping experience. The easy shopping experience and low prices are directly
linked to consumers and end users. A wide and affordable product range is linked to material
environmental sustainability topics (circular economy, climate change) and working conditions for value
chain employees. The global supply chain of products requires extensive logistics, includes several
disposable products, and products that stand out for their quality and durability. The competence of the
staff is crucial in the shopping experience, as customers often need help solving their problems.
The theme of Puuilo’s sustainability strategy is “Responsible Retailer”. Puuilo's sustainability strategy is
divided into three areas: Responsible Supply Chain, Good Workplace, and Environmental and Social
Responsibility. Puuilo aims to offer sustainable and safe products, increase employee commitment and
reduce its carbon footprint. Key objectives include increasing the share of suppliers committed to
sustainability, reducing the return rate of products, improving employee retention and job satisfaction,
increasing the recycling rate of waste and reducing greenhouse gas emissions.
Puuilo's most significant production inputs are skilled personnel, products for sale, retail locations, and
necessary logistics services. Puuilo does not manufacture the products it sells but operates in the value
chain between manufacturers and business and consumer customers. Product manufacturing and
transportation are part of the value chain, while other production inputs are part of Puuilo's operations.
Puuilo ensures the availability of production inputs with a broad, decentralized network of suppliers.
Continuous improvement of staff skills is an essential part of ensuring and developing production inputs.
The upstream end of the value chain consists of the manufacturing of products for sale and the
procurement of the raw materials required for production.
For suppliers, Puuilo offers a growing distribution channel for their manufactured products and a long-
term business partnership. Special attention is paid to supplier selection, as the impacts of the global
supply chain extend widely. Puuilo has approximately 700 suppliers. About 80 percent of purchases are
made from domestic suppliers, while the remaining 20 percent are from Asia or other EU countries.
Puuilo uses the amfori BSCI system to verify the responsibility of the supply chain, and supplier
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commitment to it is part of the supplier selection criteria. Puuilo's ethical guidelines for procurement are
included in cooperation agreements with all new suppliers and added to existing agreements when they
are renewed. Risks related to supply chain disruptions are managed by diversifying supply chains
across different countries and continents.
Puuilo's principle is to operate in rented premises rather than owning store premises. The owners of
store properties are among the most important business partners. Finding suitable rental spaces in
collaboration with property owners is a prerequisite for opening new stores.
Puuilo transports products to stores across Finland and imports products from Asia and Europe.
Logistics significantly impact both operational quality and the environment. Emissions from land, sea
and air transport are reduced in cooperation with logistics partner.
Strong and sustainable growth is possible only with skilled and motivated personnel. Puuilo aims to be
a good workplace where staff want to commit. Staff availability is promoted by offering stable and
permanent employment relationships, investing in the quality of management, and with commitment and
incentive programs.
Puuilo offers suppliers a growing distribution channel for their manufactured products and a long-term
business partnership.
At the end of the reporting period, Puuilo had 35,089 registered shareholders. They expect an attractive
return on their invested capital. Financiers expect Puuilo to act as a debtor accurately and reliably.
At the downstream end of the value chain are Puuilo's consumer and business customers, the use of
products, and after use, recycling or final disposal.
For its customers, Puuilo offers affordable prices, a wide range of products, and an easy shopping
experience. Through its business customers, Puuilo's value chain is linked to these customers and the
use of products in their business operations. The growth of e-commerce also increases product
deliveries to customers and the related logistics, along with environmental impacts.
Product durability enhances customer satisfaction. Reducing product complaints decreases related
transport emissions and waste volumes. The indirect benefits contribute to both environmental and
societal well-being.
Interests and views of stakeholders (SBM-2)
Puuilo's key stakeholders are customers, analysts and investors, suppliers, and its own personnel.
These stakeholders have been widely consulted in connection with Puuilo’s first double materiality
assessment through a stakeholder survey, the results of which have been utilised in the materiality
assessment and its subsequent update.
Customer surveys are conducted regularly. Customers provide daily feedback on Puuilo’s operations,
and the products sold by the company. Interaction with customers is described in more detail in
disclosure requirement S4-2. Active dialogue is maintained with investors and analysts, for example in
connection with financial reporting and investor and analyst meetings. Suppliers are of critical
30
importance to Puuilo’s business, and interaction with them is continuous. The methods of supplier
cooperation are described in more detail in disclosure requirement G1-2.
Puuilo’s strategy and business model are based on the competence and motivation of its personnel.
Employee satisfaction is one of Puuilo’s key strategic objectives and is measured through an annual
survey. Shift work, fixed-term employment contracts and other factors related to working conditions and
remuneration that are typical of the retail sector may affect employee well-being. Interaction and
cooperation between management and personnel are promoted through the cooperation negotiation
committee and continuous informal discussions between management and staff. Interaction with the
own workforce is described in more detail in section S1-2.
In addition, value chain workers have been identified as a significant stakeholder group that Puuilo's
operations impact considerably. Due to the nature of the supply chain and the geographical location of
suppliers, there is practically no interaction with value chain workers. Puuilo recognizes that its growth
strategy affects value chain workers. Potential negative impacts on them are sought to be mitigated by
developing supplier relationships and increasing the share of audited suppliers.
The purpose of stakeholder interaction is to understand the wishes and expectations of stakeholders
towards Puuilo. The needs and preferences of stakeholders, especially consumers, directly guide retail
operations. In the stakeholder survey conducted as part of the materiality assessment, stakeholders
identified Puuilo’s most important sustainability topics as occupational well-being, health and safety,
customer privacy and data security, as well as product quality, durability, reparability and upgradability.
Stakeholder views have been considered in both Puuilo’s business strategy and sustainability strategy.
Puuilo's strategy aligns with the company's understanding of stakeholder views. Stakeholder
perspectives are taken into account in Puuilo's ways of working to support the implementation of the
company’s growth strategy.
The results of customer surveys and employee satisfaction surveys are regularly reviewed by the
management team. The Board of Directors’ reviews HR and marketing reports according to the annual
calendar, and material findings are reported to the Board of Directors in connection with these reviews.
Material impacts, risks and opportunities and their interaction with strategy and business model (SBM-3)
The material sustainability topics identified for Puuilo are climate change, resource use and circular
economy, own workforce, value chain workers, consumers and end users, and business conduct. The
material impacts on people and the environment associated with Puuilo's operations and business
relationships are typical for the retail sector. In line with its growth strategy, Puuilo is expanding its store
network, e-commerce, and product range, and these factors are also reflected in the impacts, risks, and
opportunities identified in the double materiality assessment. The ability of Puuilo's strategy and
business model to address material impacts and risks or to leverage material opportunities is based on
a wide product range, an extensive supplier network, and a broad domestic store network. A separate
resilience analysis of the company's strategy and business model's climate resilience has not been
conducted.
Regarding material risks and opportunities, no material financial impacts on the company's financial
position, financial performance, or cash flows have been identified during the reporting period. The
company has not identified material risks or opportunities that would have material impacts on items in
the financial statements.
31
Material Environmental Impacts, Risks, and Opportunities
The most material environmental impacts are related to greenhouse gas emissions from the production
and logistics of the product range, the materials required for product manufacturing and packaging, as
well as the energy consumption, emissions, and waste from Puuilo's own operations. Positive
environmental impacts are sought by offering high‑quality, durable and repairable products and spare
parts.
The material climate change-related risks for Puuilo are transition risks. Production costs may increase
due to stricter climate and other environmental regulations or taxation. Cost increases may not be fully
transferable to customer prices.
Stricter emission and other environmental regulations may indirectly or directly increase Puuilo's own or
the value chain's costs. Dependence on virgin raw materials may, in the long term, lead to supply chain
disruptions and a reduction in the product range if the availability of these raw materials decreases.
Transitioning to cleaner energy sources is seen as an opportunity that reduces uncertainties related to
the price and availability of more polluting fossil energy. Energy efficiency and waste minimization
reduce costs.
The double materiality assessment did not identify any material physical climate risks for Puuilo. Puuilo's
stores and offices are located in Finland, and the risks of extreme weather conditions affecting them
were assessed as relatively low. Disruptions affecting suppliers' production facilities and logistics located
abroad may have an impact on Puuilo, but the knowledge base for a more detailed climate risk
assessment or resilience analysis is currently insufficient. Risks related to supply chain disruptions are
managed through a broad supplier network.
Material Impacts, Risks, and Opportunities Related to People and Society
The material impacts on customers are related to product safety and privacy, affecting all of Puuilo's
business and consumer customers and the end users of the products. Potential individual product
defects or misuse of products can, in some cases, cause accidents. Product safety is particularly
important in certain product groups, such as paints and other chemicals.
Positive impacts are related to product safety and quality and compliance with safety standards. Key
means to promote positive impacts include careful supplier and product selection. Safety standards,
product labelling and instructions for use reduce risks of harm and health impacts to consumers.
Cybersecurity risks are associated with payment transactions in e‑commerce and the processing of
other customer data. Deficiencies in product safety or data security can cause reputational damage and
a decline in sales.
The material impacts, risks, and opportunities arise from Puuilo's business model, which offers a wide
range of products and customers pay for their purchases using electronic payment methods.
Permanent and secure employment relationships provide economic and psychological benefits to the
personnel. An equal and fair workplace promotes job satisfaction. The company culture also reflects on
the customer experience. Negative impacts on the own workforce can include dissatisfaction with
32
working conditions or employment terms, or mental strain. Material impacts, risks, and opportunities
related to personnel are connected to Puuilo's growth strategy, as strong growth can, for example, reflect
on the mental strain of employees. Business growth and profitability are enabled by skilled and
motivated personnel, so material risks and opportunities depend on the company's own workforce.
Puuilo's employees are divided into permanent, fixed-term, and those working with variable hours, as
well as full-time and part-time employees. The material impacts, risks, and opportunities related to
personnel were found in the double materiality assessment to affect the entire workforce equally, and
no employee groups were identified as being at greater risk.
In Puuilo's strategy and business model, supply chains are global, and their upstream ends may be
located in countries with higher risk related to human rights and fair working conditions. Operations may
be linked to forced labour, child labour, poor occupational safety, or otherwise poor working conditions.
Any misconduct occurring in the value chain tends to be isolated cases and poses a reputational risk
for Puuilo.
The double materiality assessment examined all employee groups in the value chain. The employees
to whom material sustainability impacts or risks apply in Puuilo's value chain are those working outside
the EU for Puuilo's suppliers. They work at the upstream end of the value chain in the production facilities
or logistics tasks of suppliers or their subcontractors and participate in the procurement, processing,
manufacturing, transportation, and other handling of goods. The material impacts and risks are related
to their working conditions and the realization of their human rights.
A significant share of the products sold by Puuilo are manufactured in Asia. Some of the manufacturing
countries are classified as high-risk countries for working conditions and human rights according to the
amfori BSCI classification, where the risk of potential negative impacts is higher. The high-risk countries
from which purchases were made during the reporting period were China, India, Pakistan, Turkey,
Vietnam and Cambodia. The potential negative impacts on employees are systemic.
Failure to monitor product safety or ensure the quality of the supply chain can lead to financial losses
and a decline in customer trust. Puuilo's reputation as an employer is linked to risks related to the
availability of labour and employee well-being. Deficiencies in occupational health and safety practices
could lead to increased sick leave, higher costs, and operational disruptions. The origin risks related to
the treatment of value chain workers can affect Puuilo's reputation and, consequently, its long-term
profitability.
Material Impacts, Risks, and Opportunities Related to Governance
Maintaining a safe and reliable product range, as well as a value-based corporate culture, strengthens
Puuilo's brand value for customers. Corporate culture and employee satisfaction enhance the employer
image and facilitate recruitment. Good supplier relationships strengthen the ability to ensure the financial
profitability of the business.
Material Environmental Impacts, Risks, and Opportunities
Sub-topic ESRS topic Description of impact, risk or
opportunity
Nature of
impact
Value chain Time
horizon
Climate change
mitigation
ESRS E1
Climate change
GHG emissions from own
operations
Actual
negative
Own operations
Short-term
33
Climate change
mitigation
ESRS E1
Climate change
GHG emissions from product
transportation and other
logistics
Actual
negative
Upstream Short-term
Climate change
mitigation
ESRS E1
Climate change
GHG emissions from product
manufacturing
Actual
negative
Upstream Short-term
Climate change
mitigation
ESRS E1
Climate change
Increase in production costs
due to the transition to more
sustainable production
processes
Risk Upstream
Medium-
term
Climate change
mitigation
ESRS E1
Climate change
Additional costs due to
regulatory changes and
increased taxation
Risk
Own operations
Medium-
term
Energy
ESRS E1
Climate change
Energy use in own operations
(including energy consumption
of buildings)
Actual
negative
Own operations
Short-term
Energy
ESRS E1
Climate change
Energy efficiency and the
savings brought by energy-
saving measures
Opportunity
Own operations
Medium-
term
Energy
ESRS E1
Climate change
With the use of renewable
energy, dependence on
traditional energy sources
decreases, leading to potential
cost savings
Opportunity
Own operations
Long-term
Resources inflows,
including resource
use
ESRS E5
Resource use
and circular
economy
Overconsumption and material
choices lead to the overuse of
natural resources
Potential
negative
Upstream Short-term
Waste
ESRS E5
Resource use
and circular
economy
The negative environmental
impacts of waste, as well as
waste management and
transportation
Actual
negative
Own operations
and
downstream
Short-term
Outflows of
resources related to
products and
services
ESRS E5
Resource use
and circular
economy
Providing customers with high-
quality, durable, and repairable
products, as well as spare parts
Potential
positive
Own operations
and
downstream
Medium-
term
Resource inflows,
including resource
use
ESRS E5
Resource use
and circular
economy
The decreasing availability of
raw materials in the long-term
increase costs
Risk Upstream Long-term
Waste
ESRS E5
Circular
economy
Minimizing waste management
costs Opportunity
Own operations
Medium-
term
Material Impacts, Risks, and Opportunities Related to People and Society
Sub-topic ESRS topic Description of impact,
risk or opportunity
Nature of
impact
Value chain Time
horizon
Secure employment,
Working time, Adequate
wage, Social dialogue,
Freedom of association,
Collective bargaining, Work
life balance
ESRS S1
Own
workforce
Dissatisfaction with working
conditions, workload, and
financial challenges
Potential
negative
Own operations
Short-
term
Secure employment
ESRS S1
Offering permanent
Actual positive Own operations
Short-
34
Own
workforce
employment to staff
term
Working time, Adequate
wage
ESRS S1
Own
workforce
High job satisfaction due to
good working conditions
Potential
positive
Own operations
Short-
term
Working time, Adequate
wage
ESRS S1
Own
workforce
Decreased job satisfaction
leads to lower work
motivation, efficiency, and
commitment, which in turn
reduces productivity
Risk Own operations
Medium-
term
Secure employment,
Working time, Adequate
wage, Social dialogue,
Freedom of association,
Collective bargaining, Work
life balance
ESRS S1
Own
workforce
Recruitment challenges
caused by a poor employer
image reduce productivity
Risk Own operations
Medium-
term
Secure employment,
Training and skills
development
ESRS S1
Own
workforce
A high level of customer
service and employee
satisfaction, resulting from
staff retention, increases
market share and
productivity
Opportunity Own operations
Medium-
term
Secure employment,
Working time, Adequate
wage, Work life balance
ESRS S1
Own
workforce
Improved productivity and
strong workforce
availability
Opportunity Own operations
Medium-
term
Health and safety
ESRS S1
Own
workforce
Absences due to
occupational accidents,
health problems, or
employee well-being
challenges lead to
increased operational costs
Risk Own operations
Short-
term
Gender equality and equal
pay, Measures against
harassment in the
workplace, Diversity
ESRS S1
Own
workforce
Equality has positive
impacts on employee
competence, career
progression, and overall
well-being
Potential
positive
Own operations
Short-
term
Secure employment,
Working time, Adequate
wage, Social dialogue,
Freedom of association,
Collective bargaining, Work
life balance, Health and
safety
ESRS S2
Workers in the
value chain
Adverse working conditions
within the value chain and
their effects on individuals’
well-being and means of
livelihood
Potential
negative
Upstream
Short-
term
Secure employment,
Working time, Adequate
wage, Social dialogue,
Freedom of association,
Collective bargaining, Work
life balance, Health and
safety
ESRS S2
Workers in the
value chain
Poor labor conditions in the
supply chain pose a
reputational risk, potentially
resulting in financial
liabilities
Risk Upstream
Medium-
term
Health and safety
ESRS S2
Workers in the
value chain
Health problems and
occupational accidents
affecting employees
throughout the value chain
Potential
negative
Upstream
Short-
term
Child labour, Forced labour,
Adequate housing, Water
and sanitation, Privacy
ESRS S2
Workers in the
value chain
Serious human rights
violations and inhumane
living conditions within the
Potential
negative
Upstream
Short-
term
35
supply chain
Child labour, Forced labour,
Adequate housing, Water
and sanitation, Privacy
ESRS S2
Workers in the
value chain
Reputational risk arising
from severe human rights
abuses within the supply
chain, negatively affecting
market share
Risk Upstream
Medium-
term
Privacy
ESRS S4
Consumers
and end-users
Secure payment methods
and e-commerce security
Risk Downstream
Short-
term
Health and safety ESRS S4
Consumers
and end-users
Risks related to product
safety
Potential
negative
Downstream
Short-
term
Health and safety ESRS S4
Consumers
and end-users
Product safety standards
and the mitigation of
consumer risks
Actual positive Downstream
Short-
term
Material Impacts, Risks, and Opportunities Related to Governance
Sub-topic ESRS topic
Description of impact, risk or
opportunity
Nature of
impact
Value chain Time
horizon
Corporate culture
ESRS G1
Business conduct
Poor customer service due to
weak organizational culture
Potential
negative
Own operations
Short-term
Corporate culture
ESRS G1
Business conduct
Employee satisfaction, overall
well-being, and organizational
commitment
Potential
positive
Own operations
Short-term
Corporate culture
ESRS G1
Business conduct
A strong corporate culture
contributing to a positive brand
image and market share
growth
Opportunity
Own operations
Medium-
term
Corporate culture
ESRS G1
Business conduct
A strong employer brand
enhances employee
engagement and contributes to
higher productivity
Opportunity Own operations
Medium-
term
Relationships with
suppliers
ESRS G1
Business conduct
Insufficient monitoring of the
value chain may lead to
adverse impacts on people
and the environment
Potential
negative
Own operations
Medium-
term
Relationships with
suppliers
ESRS G1
Business conduct
Reputational risks arising from
adverse social and
environmental impacts in the
supply chain may weaken
market share
Risk
Own operations
Medium-
term
Relationships with
suppliers
ESRS G1
Business conduct
Long-term partnerships
contributing to increased
efficiency
Opportunity
Own operations
Medium-
term
Compared to the previous reporting period, the following impacts, risks and opportunities were not
considered material:
ESRS topic Description of impact, risk or opportunity Nature of
impact
ESRS E1 Climate change Increase in sustainable products through portfolio expansion
Potential
36
positive
ESRS E1 Climate change Enhancing logistics and packaging with more environmentally friendly
packaging solutions
Potential
positive
ESRS E1 Climate change New markets and innovations (products, services, business models) related
to climate change challenges increase market share
Opportunity
ESRS E1 Climate change Use of low-emission energy in own operations Actual positive
ESRS E5 Resource use and
circular economy
New innovations and product categories related to the circular economy
increase net sales
Opportunity
ESRS E5 Resource use and
circular economy
The harmful environmental impacts of packaging materials
Potential
positive
ESRS S4 Consumers and
end-users
Secure payment methods and e-commerce security Actual positive
ESRS S4 Consumers and
end-users
Financial impact of product recalls Risk
ESRS S4 Consumers and
end-users
Strengthening the brand through product safety, increasing market share Opportunity
ESRS G1 Business conduct
Collaboration with suppliers enables innovation and creates opportunities
for growth
Opportunity
Impact, risk, and opportunity management
Description of the processes to identify and assess material impacts, risks and opportunities (IRO-1)
Puuilo's material sustainability impacts, risks, and opportunities were identified and assessed during the
fall of 2023 and early 2024. The process consisted of three phases:
1. Background analysis and development stakeholder understanding
2. Identifying and preliminarily assessing sustainability-related impacts, risks, and opportunities
3. Determination and validation of the materiality of the identified impacts, risks, and opportunities
The process utilized a combination of research based on public and internal sources, stakeholder
surveys, independent assessments by Puuilo’s expert and working group meetings. Puuilo's
management team participated in the assessment in a validating role.
In the background analysis, the potential types of impacts, risks, and opportunities across Puuilo's entire
value chain were determined. The materials used included Puuilo's previous sustainability statement
and its background materials, customer and employee surveys, reports from peer companies, industry-
specific standard topic recommendations, and the stakeholder survey. Based on these, an
understanding of potentially material sustainability topics was formed. Themes that were not supported
by background material or stakeholder views were already excluded as non-material at this stage.
For each potentially material topic, relevant actual or potential negative and positive sustainability
impacts, as well as business risks and opportunities, were identified. These were identified at a general
level across Puuilo's entire value chain, without detailed analysis of individual operations, business
relationships, or geographical areas.
The identified impacts, risks, and opportunities were analyzed in more detail and grouped according to
ESRS standards. At the same time, the views of key stakeholder representatives were also heard. In a
37
workshop with Puuilo's management and experts, the impacts, risks, and opportunities were refined and
prioritized.
In the prioritization, the severity of negative and positive impacts (scale, scope, and in the case of
negative impacts, also the irreversibility of the impact), the magnitude of the financial impacts of risks
and opportunities, and the likelihood of their occurrence were each assessed on a scale of 1–5. The
assessment was conducted over short, medium, and long-term periods.
Preliminary materiality values for impacts were calculated based on severity and likelihood scores for
each impact. Preliminary materiality values for risks and opportunities were calculated based on the
magnitude and likelihood scores of their associated financial impacts.
As a result of the assessments, a relative ranking of all identified impacts, risks and opportunities was
established, with the median of the materiality scores serving as the threshold for materiality. Puuilo’s
management team validated the assessment, after which it was reviewed by the Audit Committee and
approved by the Board of Directors.
Update of the double materiality assessment
The double materiality assessment described above was updated in autumn 2025. The original
descriptions and rationales for impacts, risks and opportunities were refined. Assessments of the
severity of impacts and the magnitude of financial effects, as well as assessments of their likelihood,
were updated. The materiality threshold remained unchanged. The estimated time horizons for the
realisation of impacts, risks and opportunities were reviewed and updated where necessary.
The update was validated by Puuilo’s management team and approved by the Board of Directors.
Continuous monitoring of impacts, risks and opportunities
The monitoring of identified potential and actual impacts is the responsibility of the management of each
business unit.
The objective of risk management is to achieve competitive advantage by reducing threats and
increasing opportunities. Risk management roles have been defined and integrated into business
operations, planning and decision‑making. Identified material sustainability risks are included in the
update of the risk map in accordance with the management team’s annual cycle, as part of the
company’s overall risk landscape. The company‑wide risk map is approved annually by the Board of
Directors.
The identification, assessment and management of sustainability‑related opportunities form part of
business management. Data collection and assessment related to changes in demand across different
product groups also cover sustainability‑related matters and associated opportunities, such as circular
economy solutions or energy efficiency.
Description of the processes to identify and assess material climate
‑
related impacts, risks and
opportunities (E1.IRO-1)
Puuilo's climate-related impacts and risks have been identified as part of the double materiality
assessment. Greenhouse gas emissions arise from the value chain of products sold, including
38
manufacturing, logistics and, in many cases, product use, as well as from Puuilo’s own operations and
the generation of purchased energy. No separate climate risk assessment or scenario analysis has been
conducted.
The assessment did not identify any material physical climate risks. Even in the long term, the risks of
extreme weather conditions affecting stores located in Finland and their surrounding areas are relatively
small. Physical risks are more focused on suppliers' production facilities and logistics centers and
transport routes located abroad. Disruptions affecting these can impact the availability and price of
products for Puuilo.
Description of the processes to identify and assess material impacts, risks and opportunities related to
pollution, water and marine resources, and biodiversity and ecosystems (E2.IRO-1, E3.IRO-1,
E4.IRO-1)
The thematic standards related to pollution (E2), water and marine resources (E3), and biodiversity and
ecosystems (E4) were not assessed as material for Puuilo's sustainability reporting in the double
materiality assessment.
The impacts, risks, and opportunities related to pollution, water and marine resources, and biodiversity
and ecosystems were evaluated based on the best available information without screening analyses.
Stakeholder views were surveyed as part of the double materiality assessment, which covered all
environmental topics of the ESRS standards. Physical, transition, or systemic risks related to biodiversity
and ecosystems were not separately assessed. Puuilo's stores are located in leased properties in urban
areas, and their impacts on the surrounding environment have been considered in zoning and building
permit processes. No specific actions related to biodiversity were identified as necessary.
Description of the processes to identify and assess material impacts, risks and opportunities related to
resource use and circular economy (E5.IRO-1)
The material impacts, risks, and opportunities related to resource use and circular economy have been
identified and assessed as part of Puuilo's double materiality assessment. The assessment considered
the main features of Puuilo's supply chain, product range, and waste management. A broad engagement
of domestic stakeholders was conducted during the double materiality assessment. However, it has not
yet been possible to hear the views of communities affected by the supply chains of the product range.
The identified material negative impacts include the effects on the sufficiency of natural resources and
other environmental impacts resulting from the use of virgin materials, mass production, and potentially
poor product quality. A low recycling rate is associated with several adverse environmental impacts.
Potential legislative changes affecting the products sold and their characteristics have been identified
as a material risk. This risk is generally mitigated by applicable transition periods, during which products
already in stock can be sold before the end of the transition period. Consumer preferences may change,
and on the other hand, it is possible to respond flexibly to changes in demand since there is no in-house
manufacturing.
Minimizing waste brings cost savings.
A broader transition to a circular economy does not pose a material risk, as its impacts are expected to
affect individual products or product groups, and Puuilo itself is not a manufacturer of products.
39
Process to identify and assess material impacts, risks and opportunities related to governance
(G1.IRO-1)
The material impacts, risks, and opportunities related to governance have been identified and assessed
as part of Puuilo's double materiality assessment. The assessment considered Puuilo's operating
environment in Finland, global supply chains, and structures typical of the retail sector.
Disclosure requirements in ESRS covered by the undertaking’s sustainability statement (IRO-2)
Puuilo reports the material sustainability topics identified in the double materiality assessment in
accordance with the standards ESRS E1, E5, S1, S2, S4, and G1, and additionally, general information
about the company according to the standard ESRS 2. The assessment process is described in section
IRO-1 of the report. The material disclosure requirements reported under each standard are presented
in Appendix 1 to this report.
A list of datapoints arising from other EU legislation is presented in Appendix 2.
40
Environmental information
EU Taxonomy
Puuilo reports information related to the EU Sustainable Finance Taxonomy in accordance with
Regulation (EU) 2020/852 and the requirements of the Finnish Accounting Act. In its taxonomy reporting
for the financial year 2025, Puuilo applies Commission Delegated Regulation (EU) 2026/73, including
its provisions on the materiality of reportable information and the new reporting templates. As a result,
comparative information for the previous year has not been restated.
The EU Taxonomy is a classification system intended to direct capital flows towards sustainable
investments and to support the achievement of a climate-neutral European Union by 2050. The
company’s business consists of retail operations. Puuilo has reviewed its activities to identify
taxonomy-eligible and taxonomy-aligned economic activities within its business.
The majority of Puuilo's business activities do not fall within the scope of the Taxonomy. The company
has not identified taxonomy-aligned turnover, capital expenditure or operating expenditure. Puuilo has
taxonomy-eligible capital expenditure related to store refurbishments and the transition to LED lighting;
however, their share does not exceed the 10% materiality threshold set out in the Taxonomy Regulation.
The calculations are based on the same IFRS accounting policies applied in Puuilo’s consolidated
financial statements.
EU Taxonomy Key Performance Indicators
Puuilo presents the key performance indicators for net sales (turnover), capital expenditures (CapEx),
and operating expenditures (OpEx) in accordance with the table defined in the EU Taxonomy Regulation
for non-financial companies.
Accounting policies
Net sales (turnover)
Puuilo applies the same IFRS-compliant preparation principles for calculating the net sales key
performance indicator as it applies in its consolidated financial statements. The net sales recognition
principles of the financial statements are presented in Note 2.1 of the consolidated financial statements.
The total net sales used in the calculation of the key figure is the net sales shown in the group's income
statement. The company has not identified any net sales that is aligned with or eligible under the
taxonomy.
Capital Expenditures (CapEx)
Capital expenditure as defined by the EU Taxonomy Regulation includes additions to tangible and
intangible assets during the financial year before depreciation, impairment and revaluations. The
company has not identified taxonomy-aligned capital expenditure. The company has taxonomy-eligible
capital expenditure related to the refurbishment of existing buildings and the transition to LED lighting;
however, these remain below the 10% materiality threshold set out in the Taxonomy Regulation.
In accordance with the Taxonomy Regulation, Puuilo includes in the calculation of capital expenditure
the total amount of investments in tangible and intangible assets and additions to right-of-use assets
recognised on the balance sheet under lease agreements. Additions to intangible assets are presented
41
in Note 4.2 to the consolidated financial statements, additions to tangible assets in Note 4.3, and
additions to right-of-use assets related to lease agreements in Note 4.4.
The definition of capital expenditures in the Taxonomy Regulation differs from Puuilo's reported
investment key figure definition. According to Puuilo's definition, the investment key figure includes
investments in tangible and intangible assets. The key figure does not include additions to right-of-use
assets recognized on the balance sheet from lease agreements. Puuilo's investments in the financial
year 2025 were €5.7 million (€7.1 million). Additions to right-of-use assets were €15.8 million (€20.9
million).
Operating Expenditures (OpEx)
The operating expenditures defined by the EU Taxonomy Regulation include direct non-capitalized
costs related to research and development, building renovations, maintenance and repairs, and all other
direct costs related to the maintenance of tangible fixed assets performed by the company or outsourced
to a third party, which are necessary to ensure the continuous and efficient operation of these assets.
The company has not identified any operating expenditures (OpEx) that are Taxonomy-aligned or
Taxonomy-eligible under the Taxonomy. In the Group's income statement, the operating expenditures
defined by the Taxonomy Regulation are included in the other operating expenses related to property
maintenance, which amounted to €5.6 million in the financial year 2025 (€4.9 million). Other operating
expenses are detailed in Note 2.3 of the consolidated financial statements. In addition to costs related
to property maintenance and repairs, the amount includes costs related to heating, electricity, water
consumption, and waste management, which are not included in the taxonomy regulation's definition of
operating expenditures.
50
Template 1: Proportion of turnover, capital expenditure and operating expenditure related to taxonomy‑eligible or taxonomy‑aligned
economic activities – financial year 2025 data (summary of key performance indicators)
Financial year 2025
Climate
Change
Mitigation
Climate
change
Adaptation
Water
Circular
Economy
Pollutiom Biodiversity
€ million
% € million % % % % % % % % % % € million %
Turnover 442.3 0.0% 0.0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 0.0%
CapEx 21.5 2.8%
0.5
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 0.0%
Op Ex 5.6 0.0%
0.0
0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0 0.0%
Taxonomy
aligned activities
in previous
financial year
2024
Proportion of
Taxonomy aligned
activities in
previous financial
year 2024
KPI
Total
Propotion of
Taxonomy
eligible
activities
Taxonomy
aligned
activities
Proportion
of
Taxonomy
aligned
activities
Breakdow n by environmental objectives of Taxonomy aligned activities
Proportion
of enabling
activities
Proportion
of
transitional
activities
Not
assessed
activities
considered
non-material
50
ESRS E1 Climate change
Material impacts, risks and opportunities related to climate change
Governance
Transition plan for climate change mitigation (E1-1)
Puuilo does not currently have numerical climate targets or a transition plan. The objective is
to prepare a transition plan during the financial year 2026.
Impact, risk and opportunity management
Policies related to climate change mitigation and adaptation (E1-2)
Puuilo’s environmental policies are set out in the sustainability strategy and the principles for
sustainable use of resources. Puuilo aims to reduce greenhouse gas emissions both in its own
operations and across the value chain. Energy efficiency in stores is improved, and Puuilo
procures only electricity generated from renewable energy sources for its own use.
In cooperation with logistics partners, efforts are made to reduce emissions arising from
transportation and warehousing. The climate impacts of waste management are reduced by
decreasing waste volumes and by compensating emissions arising from waste management
together with the waste management partner.
The CEO is responsible for ensuring compliance with Puuilo’s climate change-related policies.
Actions and resources in relation to climate change policies (E1-3)
The key actions related to climate change mitigation focus on energy efficiency and energy
choices. Greenhouse gas emissions from logistics are mitigated by optimizing transportation.
Emissions are monitored using emissions data provided by the company’s most significant
logistics partner.
Description of impact, risk or opportunity Nature of impact Value
chain
GHG emissions from own operations
Actual negative
Own
operations
GHG emissions from product transportation and other logistics Actual negative Upstream
GHG emissions from product manufacturing Actual negative Upstream
Increase in production costs due to the transition to more sustainable
production processes
Risk Upstream
Additional costs due to regulatory changes and increased taxation
Risk
Own
operations
Energy use in own operations (including energy consumption of
buildings)
Actual negative
Own
operations
Energy efficiency and the savings brought by energy-saving measures
Opportunity
Own
operations
With the use of renewable energy, dependence on traditional energy
sources decreases, leading to potential cost savings
Opportunity
Own
operations
44
During the reporting year, Puuilo procured electricity produced from renewable sources or
nuclear power. The company's own electricity procurement covers most of the stores, while in
some locations, the store property owner procures the electricity. A total of 11 solar power
plants have been installed at store properties, two of which were implemented in 2025.
Puuilo’s stores are mainly located in new buildings, which improves average energy efficiency.
Other measures to improve energy efficiency include optimisation of store heating and
ventilation as well as logistics optimisation.
Greenhouse gas emissions from Puuilo's waste management are offset by purchasing
permanent carbon sinks from a third-party certified afforestation project (Kikonda Forest
Reserve in Uganda). The amount of emission offsets includes emissions from both waste
transportation and treatment. In 2025, the amount of emission offsets was 46.4 (31) CO2
equivalent tons.
Metrics and targets
Targets related to climate change mitigation and adaptation (E1-4)
Puuilo does not have numerical emission reduction targets. The targets will be defined as part
of the preparation of the transition plan during the financial year 2026.
45
Energy consumption and energy mix (E1-5)
Energy consumption and energy mix 2024 2025
Fuel consumption from coal and coal products (MWh) 0 0
Fuel consumption from crude oil and petroleum products
(MWh)
182.1
1
194.6
Fuel consumption from natural gas (MWh) 99.7
1
285.5
Fuel consumption from other fossil sources (MWh) 0 0
Consumption of purchased or acquired electricity, heat,
steam, and cooling from fossil sources (MWh)
3,149.2 2,990.2
Total fossil energy consumption (MWh) 3,431.0 3,470.3
Share of fossil energy sources in total energy
consumption (%)
19.0 19.1
Consumption from nuclear sources (MWh) 253.0 6,524.8
Share of nuclear
‑
based energy sources in total
energy consumption (%)
1.5 35.9
Fuel consumption for renewable sources (MWh) 11.3 12.8
Consumption of purchased or acquired electricity, heat,
steam, and cooling from renewable sources (MWh)
13,136.9 8,189.9
The consumption of self-generated non-fuel renewable
energy (MWh)
0 0
Total renewable energy consumption (MWh) 13,148.1 8,202.7
Share of renewable energy sources in total energy
consumption (%)
79.4 45.1
Total energy consumption (MWh) 16,832.2 18,197.8
¹ Gas consumption was included in the 2024 reporting under fuel consumption from crude oil and petroleum
products. This has been corrected retrospectively.
² For electricity consumption covered by guarantees of origin, an estimated energy mix has been used. Cancelled
figures were not available at the time of reporting.
Energy intensity
Energy intensity 2024 2025 % 2025 /
2024
Energy intensity from activities in high climate impact
sectors based on net sales (MWh/€ million)
43.90 41.14 -6.3%
Puuilo's business belongs to sectors with significant climate impacts (NACE main category G:
Wholesale and retail trade), so energy intensity has been calculated based on the Group's
total net sales.
Gross Scopes 1, 2, 3 and Total GHG emissions (E1-6)
Retrospective
2024 2025 % 2025 / 2024
Scope 1 GHG emissions
Gross Scope 1 GHG emissions (tCO2eq) 68.4 109.4 +59.9%
46
Percentage of Scope 1 GHG emissions from
regulated emission trading schemes (%)
0 0
Scope 2 GHG emissions
Gross location-based Scope 2 GHG emissions
(tCO2eq)
1,963.0 1,216.3 -38.0%
Gross market-based Scope 2 GHG emissions
(tCO2eq)
1,428.1 1,367.9 -4.2%
Material Scope 3 GHG emissions
Total Gross indirect (Scope 3) GHG emissions
(tCO2eq)
150,834.5 182,709.9 +21.1%
1 Purchased goods and services 144,271.4 177,195.1 +22.8%
2 Capital goods 1,137.0 1,994.5 +75.4%
3 Fuel and energy-related Activities 609.3 516.7 -15.2%
4 Upstream transportation and distribution 3,394.6 1,923.3 -43.3%
5 Waste generated in operations 567.4 53.5 -90.4%
6 Business travel 87.8 101.5 +15.6%
7 Employee commuting 766.9 925.3 +20.7%
Total GHG emissions
Total GHG emissions (location- based) (tCO2eq) 152,865.9 184,035.6 +20.4%
Total GHG emissions (market- based) (tCO2eq) 152,331.0 184,187.2 +20.9%
Scope Tons of biogenic CO2e
2024 2025
Scope 1 3.0 3.2
There is not enough information available on biogenic CO2 for Scope 2 and 3.
GHG intensity per net sales
GHG intensity
2024
2025
% 2025 / 2024
Total GHG emissions (location
-based) per net sales (tCO2eq/€ million) 398.7 416.1 +4.4%
Total GHG emissions (market
-based) per net sales (tCO2eq/ €million)
397.3 416.4 +4.8%
Greenhouse gas intensity is calculated based on the Group's total net sales.
47
The methods used in the calculation of greenhouse gas emissions, as well as the uncertainties
and limitations related to the quality of the data, are detailed in the tables below.
Scope 1 and 2
Primary data
Methods, allocation
methodologies, or
assumptions
Uncertainties and
limitations in data quality
Sources of
emission
factors
Scope
1
• Fuel usage in
machinery and
vehicles
• Primary data was
gathered and reported
using the relevant
emission factor.
• Scope 1
Fuel usage
in machinery
and vehicles
Scope
2
• Measured
electricity and
heating
consumption
• Averages based
on measured
heating and
electricity
consumption
• Office building
floor area (m
2
)
• The primary data collected
was reported using the
corresponding emission
factor.
• The energy consumption
of the headquarters was
estimated based on floor
area. The following source
was used as the specific
energy consumption
reference:
Odyssee‑MURE (2025).
Heating consumption per
m² and per dwelling.
• For two of the company's
three electric vehicles, the
average distance driven
annually was estimated
and multiplied by the
WLTP consumption
figures.
Market-based:
• Contract-based emission
factors were applied for
electricity at all sites where
the company holds its own
electricity contracts. Local
district heating providers'
emission factors were
used for heating. If the
heating provider was
unknown, an assumption
was made regarding the
local district heating
supplier.
• Residual mix emission
factors were applied when
the type of electricity
contract was unknown.
Location-based:
• Country-specific emission
factors were applied to
purchased electricity and
heating.
• The actual energy
consumption of the
company's electric
vehicles is unknown. This
is not estimated to have a
material impact on the
results of the calculation.
• For purchased electricity,
emissions calculated
using the residual mix
account for 21% of the
total market-based scope
2 emissions.
• For purchased heating,
the market-based
emission factor was
assumed to be 69% of the
total scope 2 emissions.
This assumption has no
material impact on the
results, regardless of the
share.
• The estimated energy
consumption at the
headquarters represents
3.2% of the total market-
based and 1.4% of the
total location-based scope
2 emissions.
Market-
based:
1, 4, 11, 12,
13
Location-
based:
2, 4, 6, 15
48
Scope 3
Primary data
Methods, allocation
methodologies, or
assumptions
Uncertainties and
limitations in data quality
Sources
of
emission
factors
1. Purchased
goods and
services
• Mass of
products
purchased
• Volume of
purchased
water (m3)
• Calculated
averages
based on the
volume of
purchased
water.
• Total
expenditure
on purchased
products or
services (€)
• Data was collected
using a hybrid
approach, aiming to
move from the most
accurate applicable
method to the least
accurate
• Some purchased
packaging materials and
water were collected on
a volumetric basis.
• For sites where
measured water
consumption was not
available, the arithmetic
average consumption of
other stores was used.
• The consumption-based
[€] method was applied
in determining other
purchased products.
Non-resalable
purchased products
(and services) were
categorized based on
accounting records,
which were refined
where necessary using
invoice data. Data on
resalable products was
collected based on
purchase receipt values
and categorized
according to the
available emission
factor categories.
• The volume-based
emission factors used for
water and packaging
materials are averages.
• The uncertainty level of
euro-based emission
factors is typically higher.
The factors are from
2022 and have been
inflation-adjusted for
2025.
• Certain accounts had to
be excluded from the
calculation as they
contain distinct products
and/or services, and the
emission factor could not
be determined. Their
contribution does not
materially affect the
results of the calculation.
3, 5, 8, 9,
10
2. Capital
goods
• Amount of
purchased
capital goods
(€)
The collected data has
been reported using a
euro-based emission
factor. The source data
has been categorized
into groups used in the
calculation based on
purchase invoices.
• The uncertainty level of
euro-based emission
factors is typically higher.
These factors are from
2022 and have been
adjusted for inflation to
2025.
3, 8
3. Fuel and
energy-
related
activities
• Amount and
type of fuel
used.
• Total
kilometers
driven by the
• WTT emissions from
vehicle fuels have been
calculated based on
Scope 1 data. The data
collected has been
reported using the
• Upstream emissions from
the fuels used in
purchased heat do not
consider the use of
combined heat and
power (CHP) plants in
2, 4, 7
49
company's
own and
leased
vehicles.
• Total volume
of purchased
electricity and
heat.
corresponding emission
factors.
• For purchased heat and
electricity, both WTT
and T&D emissions
have been calculated
using both market-
based and location-
based approaches. The
emissions are reported
on a location-based
basis.
• The emission factor for
the fuels used in the
production of purchased
heat has been
determined using the
weighted average of
fuel and WTT
emissions.
• Except for heat
production, the emission
factors for this category
are readily available
from databases.
district heating networks
or losses in energy
production and
distribution.
4. Upstream
transportatio
n and
distribution
• Emissions
data provided
by logistics
companies.
• Expenditure
on logistics
services (€)
• The emissions reported
by logistics service
providers include both
upstream and
downstream
transportation costs
covered by the reporting
company.
• While the transportation
fee for products
purchased online is
included, it is primarily
paid by Puuilo rather
than the customer.
Therefore, it is
accounted for in the
upstream.
• Data has been primarily
collected from partners,
with secondary data
from accounting records
on the scale of
purchases.
• Approximately 80% of
the products received
by the company are
delivered directly to
stores from level 1
suppliers. The freight
cost is included in the
product price, and these
costs cannot be broken
down. Therefore, they
• The data received from
logistics service providers
has been categorized as
measured data points.
The quality of the data,
however, is not known.
• The uncertainty level of
the euro-based emission
factors applied in the
calculation is generally
higher. These factors are
from 2022 and have been
adjusted for inflation to
the year 2025.
3, 8
50
are classified under
scope 3 category 1.
5. Waste
generated in
operations
• Emissions
reported by
the waste
management
partner
(tCO₂e)
• Number of
employees,
industry, and
waste type
• Water
consumption
(m3)
• Emissions from store
waste management
have been reported
based on emissions
data provided by the
waste management
partner
• Wastewater generation
has been determined
based on measured
water consumption. It is
assumed that the
amount of tap water
consumed, as
monitored by water
meters, is equivalent to
the amount of
wastewater produced.
• For locations with no
available measured
water consumption
data, the arithmetic
mean consumption from
other stores has been
used.
Waste generated at the
headquarters has been
estimated using HSY
statistics based on the
number of employees
and the industry type.
• The waste amount
generated at the
headquarters is based on
an estimate, and as such,
involves a level of
uncertainty. However, the
volume of waste is
negligible relative to the
retail business
operations.
5, 16, 17
6. Business
travel
• Mileage
allowances
• The calculation includes
mileage allowances
paid to employees. The
total kilometres driven
were estimated based
on the official 2025
mileage allowance rate
published by the tax
authority.
• Flights, trains, and taxis
have been excluded from
the calculation due to
lack of available data.
This exclusion is
estimated to have a
moderate impact on the
results of this specific
category, but not on the
overall calculation.
4
7. Employee
commuting
• Commuting
survey,
considering
modes of
transport,
trips, and their
frequency
• Number of
employees
• The results of the
survey conducted in the
financial year 2024 were
extrapolated to cover all
employees in 2025.
There is no measured
data available regarding
employees' commuting
patterns.
4, 14
51
Scope 3 greenhouse gas emission categories excluded from the inventory
Excluded from the inventory
Justification
Scope 3: Category 8: Upstream leased assets
Emissions during the use phase are consolidated into
the Scope 1 and 2 emissions of the reporting
company according to the chosen methodology.
Scope 3: Category 9: Downstream transportation
Puuilo is only responsible for product transportation
related to its e‑commerce operations, and the
associated emissions have been included in
Category 4.
Scope 3: Category 10: Processing of sold products
N/A
Scope 3: Category 11: Use of sold products
Not assessable due to the number of products and
their numerous different use-phase scenarios.
Scope 3: Category 12: End-of-life treatment of sold
products
Not assessable due to the number of products and
their numerous different end-use scenarios.
Scope 3: Category 13: Downstream leased assets
N/A
Scope 3: Category 14: Franchising
N/A
Scope 3: Category 15: Investments
N/A
N/A = not applicable, e.g., no emissions are generated from the respective category.
Scope 3 category
tCO2e – supplier-
specific data
%-share of total emissions
calculated using
supplier-specific data
1. Purchased goods and services
0.0
0%
2. Capital goods 0.0 0%
3. Fuel and energy-related
Activities
0.0 0%
4. Upstream transportation and
distribution
1.913,2 99.5%
5. Waste generated in operations 46.7 87.1%
6. Business travel 0.0 0%
7. Employee commuting 0.0 0%
52
Emission Factor Sources:
1 AIB (2024). European Residual Mixes. https://www.aib-net.org/facts/european-
residual-mix/2024
2 Carbon Footprint Ltd (2025). International Electricity Factors.
https://www.carbonfootprint.com/international_electricity_factors.html
3 DEFRA (2022). Conversion factors KgCO2 per £ spent, by SIC code 2022.
https://www.gov.uk/government/statistics/uks-carbon-footprint
4 DESNZ & DEFRA (2024). Greenhouse gas reporting: conversion factors 2024.
https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-
factors-2024
5 Ecoinvent v3.11. Allocation, cut-off by classification. https://ecoinvent.org/
6 Energiateollisuus (2023). Energiavuosi 2023 Kaukolämpö. https://energia.fi/wp-
content/uploads/2024/01/Kaukolampovuosi-2023_ennakkograafit.pdf
7 Eurostat (2022). Production of electricity and derived heat by type of fuel: Gross heat
production.
https://ec.europa.eu/eurostat/databrowser/view/nrg_bal_peh__custom_14334089/def
ault/table?lang=en
8 Eurostat (2025). HICP - monthly data (annual rate of change): Euro area.
https://ec.europa.eu/eurostat/databrowser/bookmark/952bcf60-22e8-433b-ab93-
fe85e2ab2367?lang=en
9 Idemat 2025 Rev A3. https://www.ecocostsvalue.com/data-tools-books/
10 Market Economics Limited (2023). Consumption Emissions Modelling.
https://www.knowledgeauckland.org.nz/media/2593/consumption-emissions-
modelling-market-economics-march-2023.pdf
11 Paikallisvoima ry (2023). District heat emissions calculator (Benefit-sharing method).
https://www.klpaastolaskuri.fi/
12 Paikallisvoima ry (2024). District heat emissions calculator (Benefit-sharing method).
https://www.klpaastolaskuri.fi/
13 Paikallisvoima ry (2025). District heat emissions calculator (Benefit-sharing method).
https://www.klpaastolaskuri.fi/
14 Stott S. (2020). How green is cycling? Riding, walking, ebikes and driving ranked.
https://www.bikeradar.com/features/long-reads/cycling-environmental-impact
15 Tilastokeskus (2024). Energy and the emissions -tables (Benefit allocation method).
https://pxhopea2.stat.fi/sahkoiset_julkaisut/energia2024/html/engl0011.htm
16 U.S. Environmental Protection Agency (2025). Emission Factors for Greenhouse Gas
Inventories. https://www.epa.gov/system/files/documents/2025-01/ghg-emission-
factors-hub-2025.pdf
17 Yhdyskuntajätemäärät | Tableau Public
53
ESRS E5 Resource use and circular economy
Material impacts, risks and opportunities related to the use of resources and the circular
economy
Description of impact, risk or opportunity Nature of
impact
Value chain
Overconsumption and material choices lead to the overuse of
natural resources
Actual negative
Upstream
The negative environmental impacts of waste, as well as waste
management and transportation
Actual negative
Own operations and
downstream
Providing customers with high-quality, durable, and repairable
products, as well as spare parts
Potential
positive
Own operations and
downstream
The decreasing availability of raw materials in the long-term
increase costs
Risk Upstream
Minimizing waste management costs Opportunity Own operations
Impact, Risk, and Opportunity management
Policies related to resource use and circular economy (E5-1)
In retail, resource use and circular economy affect every stage of the value chain: raw material
procurement and natural resource use, product design and manufacturing, logistics and
packaging, maintenance and repair, as well as waste management and recycling.
Sustainable use of resources is one of the key focus areas of Puuilo’s sustainability strategy.
It refers to reducing the environmental impacts of the company’s own operations and supply
chain. An integral part of sustainable resource use is offering customers durable and safe
products.
Policies related to resource use and the circular economy are set out, in addition to the
sustainability strategy, in the ethical guidelines for procurement, the Supplier Code of Conduct,
and, with regard to waste management and sorting, in the House Book. In its own operations,
Puuilo aims to reduce waste volumes and increase the recycling rate. Waste is sorted to the
greatest extent possible. The recycling rate is monitored at both store level and company level.
Detailed instructions on waste management and sorting form part of the store operating
guidelines. The waste hierarchy is not addressed in the instructions.
The sales management is responsible for ensuring compliance with the policies in stores. With
regard to procurement, compliance with policies related to resource use and the circular
economy is the responsibility of the Purchasing and Logistics Director.
Actions and resources related to resource use and circular economy (E5-2)
Key actions focus on ensuring product quality, training staff and suppliers on ethical guidelines,
and reducing waste and increasing the recycling rate.
54
The durability of products improves customer satisfaction and reduces environmental impact
by decreasing logistics emissions and waste. Product quality is primarily ensured through
careful supplier selection. Products imported by Puuilo are evaluated and tested considering
the specific characteristics required for each product.
The purchasing organization is responsible for the ethical guidelines of procurement and for
training suppliers and its own staff on them. Puuilo representatives also conduct factory visits
for quality assurance purposes.
The change in waste volume was 14.3% (13.4%) compared to the previous financial year. At
the same time, the number of stores increased by seven, corresponding to a 14.3% (16.7%)
growth. Store managers monitor store-specific and chain-wide waste production. During the
financial year 2025, staff training on waste management and recycling was continued to
support the achievement of the recycling target.
As a result of waste volume monitoring and staff training, waste sorting and recycling are
expected to become more efficient in stores.
Metrics and targets
Targets related to resource use and circular economy (E5-3)
Puuilo aims to further develop waste management and sorting. These targets are voluntarily
set by Puuilo and relate to recycling within the waste hierarchy.
To reduce the negative environmental impacts of waste, waste treatment and waste
transportation, and to minimise waste management costs, the target is to achieve a recycling
rate of 73% for waste generated in the company’s own operations by the end of the financial
year 2025. No waste‑type‑specific targets have been set. The recycling rate target has been
set by the management team and takes into account the results of the key stakeholder
analysis.
The recycling rate is measured by dividing the amount of non‑recycled waste in tonnes by the
total amount of waste in tonnes. The data is obtained from the waste management partner’s
system and reporting. In 2025, the recycling rate was 71% (68%).
Targets and metrics related to product quality and durability are described in section S4‑5.
Resource inflows (E5-4)
Puuilo's product range includes approximately 30,000 items. The main product groups are
building materials, HVAC and electrical supplies, car accessories, household goods, garden
supplies, pet food and supplies, tools, free-time and other accessories as well groceries. The
products mainly contain plastics, rubber, wood, and metals, some of which include critical raw
materials and rare earth metals. The products sold are procured ready-made from the supply
chain: Puuilo does not manufacture or further process products itself and does not have
detailed information on the raw materials used in the products.
In Puuilo's own operations, water consumption is very low. Property, plant and equipment
mainly consist of store fixtures and equipment.
55
Puuilo uses conventional packaging materials such as plastic wraps, cardboard, and
paperboard for incoming goods and the transportation of products sold in the online store.
Resource outflows (E5-5)
As the company’s core business is retail and it does not have its own manufacturing operations,
Puuilo does not treat products sold as resource outflows. Accordingly, the company does not
report on the expected durability of products placed on the market relative to the industry
average, product reparability, or the share of recyclable materials in products.
The largest waste groups generated in Puuilo's operations are cardboard, energy waste,
mixed waste, and plastics. Additionally, the operations produce construction, metal, and wood
waste. The proportion of waste classified as hazardous, such as batteries or aerosols, is 0.7%
of the total waste volume.
In e-commerce, the materials used for packaging products for customer deliveries, such as
cardboard and plastics, are 100% recyclable. Orders are packed as compactly as possible to
keep the package size small and to take up less space in delivery vehicles. Cardboard
received at the warehouse is reused for packing online orders.
The waste data is based on data and reporting from the waste management partner.
Summary of waste generated by Puuilo (t)
2024
2025
Total amount of waste in metric tons
1,742
1,992
Total amount of hazardous waste in metric tons
14
14
Total amount of non-recycled waste in metric
tons
555
579
Total amount of non-recycled waste in metric
tons
32
29
Waste directed to other than final disposal by
type of recovery in tonnes (t)
2024
2025
Hazardous waste
Preparation for reuse
0
0
Recycling
7
8
Other recovery options
5
0
Total
12
8
Non-hazardous waste
Preparation for reuse
3
0
Recycling
1,158
1,405
Other recovery options
548
573
Total
1,709
1,978
Waste directed to final disposal by type of
treatment in tonnes (t)
2024
2025
Hazardous waste
Incineration (without energy recovery)
0
0
Landfilling
0
0
Other final disposal
2
5
Total
2
5
Non-hazardous waste
56
Incineration (without energy recovery)
0
0
Landfilling
0
0
Other final disposal
0
1
Total
0
1
Other final disposal includes waste treated by other methods, such as physicochemical
treatment, as well as waste that has been transferred and subsequently finally treated.
57
Social information
ESRS S1 Own workforce
Material impacts, risks and opportunities related to the own workforce
Description of impact, risk or opportunity Nature of
impact
Value chain
Dissatisfaction with working conditions, workload, and financial challenges
Potential
negative
Own
operations
Offering permanent employment to staff Actual positive
Own
operations
High job satisfaction due to good working conditions
Potential
positive
Own
operations
Decreased job satisfaction leads to lower work motivation, efficiency, and
commitment, which in turn reduces productivity
Risk
Own
operations
Recruitment challenges caused by a poor employer image reduce productivity Risk
Own
operations
A high level of customer service and employee satisfaction, resulting from staff
retention, increases market share and productivity
Opportunity
Own
operations
Improved productivity and strong workforce availability Opportunity
Own
operations
Absences due to occupational accidents, health problems, or employee well-
being challenges lead to increased operational costs
Risk
Own
operations
Equality has positive impacts on employee competence, career progression,
and overall well-being
Potential
positive
Own
operations
Impacts, risks, and opportunities management
Policies related to own workforce (S1-1)
Puuilo aims to be a good workplace where employees want to commit. Puuilo invests in
employee retention, competence and motivation.
The principles related to the own workforce are described in Puuilo's House Book, the Code
of Conduct for employees, and the Equality, Non-Discrimination, and Personnel Development
Plan. These principles apply to all Puuilo employees. No groups have been identified within
the workforce that would require or be subject to special principles or measures.
The House Book contains principles, operating practices, and practical guidelines related to
working at Puuilo. Familiarization with the House Book is part of every employee's induction
at the workplace. One of its goals is to enhance the well-being of the work community and the
creation of a good customer experience. The CEO is responsible for the implementation of
the House Book, and each member of the management team is responsible for the operating
instructions within their area of responsibility.
The Code of Conduct for employees forms the basis for all our activities, and every Puuilo
employee must follow the guidelines provided therein. The Code of Conduct adheres to the
Universal Declaration of Human Rights by the United Nations and the Declaration on
58
Fundamental Principles and Rights at Work by the International Labour Organization (ILO).
The use of human trafficking, child labour, or any form of forced labour is not accepted.
The purpose of the Code of Conduct is to help Puuilo employees act responsibly in their work.
The principles of conduct are:
• Compliance with laws and commitments
• Opposition to corruption and bribery
• Avoidance of conflicts of interest and promotion of fair competition
• Respect for human rights and care for the workplace community
• Promotion of more sustainable consumption
• Acting responsibly as a retailer
• Open and truthful communication
• Confidential handling of information
• Compliance with insider regulations and Puuilo's insider guidelines
• Reporting concerns and violations
The principles presented in the Equality, Non-Discrimination, and Personnel Development
Plan are:
• All employees have equal opportunities to succeed and develop in their work
• The aim is to create a work community where employees treat each other equally and
fairly
• Equal and non-discriminatory treatment of everyone in both daily operations and
decision-making
• No one should be discriminated against based on gender, age, origin, nationality,
language, religion, belief, opinion, political activity, trade union activity, family
relationships, health status, disability, sexual orientation, or any other personal reason.
The House Book, the Code of Conduct, and the equality, non‑discrimination and personnel
development plan are available to all employees on Teams. The equality, non‑discrimination
and personnel development plan is discussed with employee representatives in the
cooperation negotiation committee and the occupational safety committee.
Employees have full freedom of association, and representatives have been elected for all
staff groups.
Policies related to the prevention of occupational accidents have been confirmed as part of a
three‑year occupational safety action programme. The objective of occupational health care
is preventive action and the maintenance of employees’ work ability. Employees are provided
with occupational health care services that exceed statutory requirements. Work‑related
hazards and risk factors have been assessed on a unit‑specific basis. It is the responsibility of
supervisors to instruct employees in safe working practices. All Puuilo store employees
complete occupational safety training annually.
The HR unit is responsible for the content of the House Book, the Code of Conduct, and the
Equality, Non-Discrimination, and Personnel Development Plan, and the management team
approves them.
59
Processes for engaging with own workers and workers’ representatives about impacts (S1-2)
Interaction with the staff is based on openness. The CEO organizes staff meetings four times
a year. Internal team collaboration has been increased with regular weekly and monthly
meetings throughout the organization.
At Puuilo, every employee belongs to a general Teams channel intended for discussion,
questions, ideas and initiatives. Through this channel, everyone has an equal opportunity to
participate in real-time communication. In addition to the general channel, Puuilo has
unit-specific or project-specific channels.
Puuilo complies with the Finnish Act on Co-operation within Undertakings and its provisions
on co-operation and dialogue with employees and their representatives. The cooperation
negotiation committee meets four times a year. The committee addresses matters required by
the Act on Co-operation as well as common issues concerning the entire workforce that are
relevant from the perspective of employees’ access to information and opportunities for
influence. A summary of each meeting of the cooperation negotiation committee is published
for all employees.
The occupational safety committee monitors the implementation of occupational safety,
identifies development needs related to employee well-being and the work community, and
proposes solutions. Employees elect four regional occupational safety representatives and
their deputies. Both the representatives and their deputies are members of the occupational
safety committee.
The occupational health care steering group meets four times a year. The HR Director holds
monthly meetings with employee representatives.
The effectiveness of communication is assessed through questions related to communication
and leadership culture in the employee survey.
The HR Director is responsible for communication with employee representatives. Where
necessary, matters are addressed by the management team or among members of the
management team.
Processes to remediate negative impacts and channels for own workers to raise concerns (S1-3)
Negative impacts on staff are addressed by intervening in working conditions and work-related
stress. Observations or reports of such issues lead to a thorough investigation of the working
conditions, consultation with the concerned parties, and, if necessary, improvement of tools
or methods and updating of guidelines.
Every employee has the responsibility and duty to address any issues they observe, such as
inappropriate behaviour or deficiencies in occupational safety or working conditions.
Observations are reported to the employer. There is a dedicated PRO24 system for reporting
occupational safety observations. The employer is obligated to address the reported issues
upon receiving the information. Every occupational accident is investigated, and the
investigation is documented for the purpose of improving occupational safety.
60
Puuilo follows a consistent model for addressing situations where an employee's behaviour is
unacceptable for any reason. Any observed concerning or poor behaviour is addressed by the
supervisor whenever necessary. This model is described and instructed in the House Book.
The annual staff survey also includes open questions where concerns can be raised. Based
on the survey results, development measures are planned, and their implementation is
monitored. Store managers receive store-specific reports.
The House Book describes the occupational safety and staff representative organizations
along with their contact information. This information is electronically available to all staff.
Puuilo has an external service provider-maintained whistleblowing channel for reporting cases
that violate ethical principles, suspicions of such cases, or other concerns. The whistleblowing
channel is publicly available on the company's website and internally to all staff via the Teams
channel. Information about the whistleblowing channel and its operating principles is provided
during induction, in the House Book, on the Teams channel, and in the Code of Conduct for
employees. The channel is also available on Puuilo’s website and can be used by external
stakeholders such as consumers, suppliers or value chain workers.
Reports can be submitted anonymously. If desired, the reporter is informed about the handling
of the report and the measures taken. Written procedures have been defined for handling
reports and for follow-up actions. Reports submitted through the reporting channel are
forwarded to the HR Director or, in cases of conflict of interest, to an HR specialist, who may
appoint additional investigators if necessary. Reports are handled confidentially. Cases are
archived in case similar or related reports are received at a later stage. If a report or preliminary
review gives rise to suspicion of misconduct, HR decides on initiating further investigation and
informs the CEO, the management team and, where necessary, the Board of Directors.
Reports submitted by persons other than Puuilo’s own employees are processed in
accordance with the same procedures.
The system categorises reported cases, and they are reported regularly to the management
team and the Board of Directors.
The reporting channel is designed to protect the identity of the reporter in all situations related
to submitting a report. If desired, the reporter may remain anonymous throughout the entire
handling and investigation process. Puuilo does not attempt to identify the reporter in any way.
Reports are investigated without undue delay, and any potentially conflicted persons are
excluded from the internal investigation.
In the 2025 employee survey, 96% of respondents (95%) fully or somewhat agreed with the
statement “I know how to report misconduct that I have experienced or observed”.
Taking action on material impacts on own workforce, and approaches to mitigating material risks and
pursuing material opportunities related to own workforce, and effectiveness of those actions (S1-4)
Puuilo aims to be a workplace that employees want to commit to. Employee well-being and
job satisfaction are promoted by investing in leadership, occupational safety, employee skills,
the smoothness of daily work, and a reasonable workload.
61
The importance of human rights and equality is emphasized to all employees during induction
and in the Code of Conduct. In 2025, no human rights impacts were observed that would have
required specific corrective actions.
The Equality and Non-Discrimination Plan and its implementation are monitored in the
cooperation negotiation committee and discussed with staff representatives. Puuilo's goals for
an equal and non-discriminatory workplace are considered in workforce recruitment, task
allocation, career advancement, compensation, job diversification, and support for
participation in training. The training of employees on the Code of Conduct is systematically
continued.
Employee retention is seen as a success factor at Puuilo, affecting the level of customer
service and employee satisfaction. For this reason, employees are primarily offered full-time
employment contracts.
Employee well-being is supported by offering employment benefits to all staff. These include
staff discounts, an employee benefit program, and a well-being benefit that can be used to
purchase desired sports, cultural, and wellness services. Employees are rewarded for long
service and on special occasions. Recreational activities are also organized for the staff.
Annual assessments of accident risks and work ergonomics are conducted in stores and other
locations. A more comprehensive workplace survey on the physical and mental workload is
conducted every five years. Mandatory occupational safety training is organized regularly.
Additionally, it is ensured that employees have appropriate tools that support well-being and
occupational safety.
Puuilo's growth and the introduction of new operating models and systems require
continuous development of employee skills. In 2025, the objectives were to improve
leadership and customer service, with training focused on:
• Supervisors’ IT skills
• Handling threatening situations related to substance abuse
• Training related to the customer concept
In 2025, a new competence development system was introduced to create online training
content and to verify completion of annual mandatory training. Each employee is required
annually to complete refresher training on occupational safety, information security and ethical
guidelines.
Puuilo offers its employees various opportunities to develop themselves and their skills.
Studying alongside work is enabled through flexible work arrangements such as study leave
or temporary part-time work. PuuiloOpisto, implemented in cooperation with Taitotalo,
provides further and supplementary training related to sales, customer service and
supervisory roles for employees in permanent employment and fixed-term employment
exceeding one year.
The early intervention model supports employees' ability to cope at work. Possible actions are
always evaluated on a case-by-case basis.
The principles and practices described in the Code of Conduct and the Equality and Non-
Discrimination Plan aim to ensure that potential negative impacts on employees are managed.
62
According to business cycles, negative impacts such as the need to adjust the workforce in
stores cannot be completely excluded.
Human resources matters are managed by Puuilo's HR team under the HR Director. The team
size averages seven full-time equivalents. The occupational safety organisation includes an
occupational safety manager and elected occupational safety representatives. The
cooperation negotiation committee consists of a total of 16 members. The chief shop steward
works on a full-time basis.
Metrics and targets
Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities (S1-5)
Puuilo's material potential negative sustainability impacts on its own workforce include
dissatisfaction with working conditions, workload, and financial challenges. These impacts are
not systemic but related to individual cases.
Puuilo's material potential positive sustainability impacts on its own workforce include offering
permanent employment contracts and high job satisfaction due to good working conditions.
Additionally, the positive impacts of equality on employees' skills, career development, and
well-being were identified as potential positive impacts. These impacts affect all employees,
especially those in permanent and full-time positions.
Puuilo has not set time‑bound targets related to its own workforce. Impacts on the workforce
are monitored through the share of full‑time employment contracts, employee turnover and
the employee survey. The targets are:
• Share of full-time employment contracts above 75%
• Turnover of permanent employees below 25%
• Employee survey PeoplePower Index above 70
The target for the share of full-time employment contracts was previously 80%, but it was
lowered in connection with the update of the sustainability strategy to better reflect seasonal
fluctuations typical of the retail sector. The share of full-time employment contracts in the
financial year 2025 was 75% (74%).
The turnover of permanent employees in 2025 was 12% (16%). The figure does not include
summer employees or other employees working under short‑term fixed‑term contracts.
Employee well‑being is measured through an annual employee survey. A quantitative target
for the PeoplePower Index of the employee survey was set in connection with the update of
the sustainability strategy. The outcome in 2025 was 75.4 (70.1).
The PeoplePower Index reflects the overall result of the employee survey. It is calculated
based on 22 index questions. The score is 0 if all respondents were extremely critical and 100
if all respondents were extremely positive in their responses to all index questions.
63
Characteristics of the undertaking’s employees (S1-6)
All Puuilo’s own workforce is employed in Finland.
Gender Distribution of Employees
Gender distribution of
employees with employment
contracts
Gender Number of employees (NOE)
2024
2025
Women 558 607
Men 446
463
Other 1 2
Not reported 88 227
Number of employees 1,093 1,299
Country of Employment for Employees
Country Number of employees (NOE)
2024 2025
Finland 1,093 1,299
Other countries 0 0
Information About Employees
WOMEN MEN OTHER* NOT
REPORTED
TOTAL
2024 2025 2024 2025 2024 202
5
2024 2025 2024 2025
Number of
employees
(NOE)
558 607 446 463 1 2 88 227 1093 1299
Number of
permanent
employees
(NOE)
439
465
334 346 1 0 40 130 814 941
Number of
temporary
employees
(NOE)
47 59 35 28 0 1 12 26 94 114
Number of non-
guaranteed
hours
employees
(NOE)
72 83 77 89 0 1 36 71 185 244
64
Number of full-
time employees
(NOE)
369 399 277 284 1 1 29 66 676 750
Number of part-
time employees
(NOE)
117 107 93 74 0 0 23 67 233 248
Number of other
employees with
employment
contracts*
72 101 76 105 0 1 36 94 184 301
* An employee who is called in to work on an on-call basis or a comparable arrangement and who, due to the
nature of the employment relationship, is not included among full-time employees with employment contracts.
In the report for the comparative year, the corresponding table was presented in full-time
equivalents (FTE). For comparability purposes, the figures for 2024 are also presented as
headcount numbers (NOE).
The nature of each employment contract is recorded in the HR information system for each
employment relationship.
During the reporting period, 449 (476) employment contracts ended. Total employee turnover
was 35% (44%). Total turnover is calculated by dividing the number of employment contracts
that ended during the reporting period by the number of employees with employment contracts
at the end of the financial year. Total turnover figures include all employment contracts,
including fixed-term contracts such as summer employees and employees working with
variable working hours.
Collective bargaining coverage and social dialogue (S1-8)
Puuilo applies the collective agreement for the retail sector. With the exception of senior
management, it covers all employees, representing 96% (95%) of the workforce.
Collective Bargaining Coverage Social Dialogue
Coverage
Rate
Employees - EEA Employees – Non-EEA Workplace representation (EEA
only)
2024 2025 2024 2025 2024 2025
0–19%
20–39%
40–59%
60–79%
80–100% Finland Finland Finland Finland
Puuilo has not entered into agreements concerning a European Works Council, a Works
Council of a European Company (SE), or a Works Council of a European Cooperative
Society (SCE).
65
Diversity metrics (S1-9)
Gender Distribution of Management
FY2025
Men
Women
Other
Not reported
Number
%
Number
%
Number
%
Number
%
Board of Directors
until 15 May2025
4
67
2
33
0
0
0
0
Board of Directors
from 15 May 2025
onwards
3
60
2
40
0
0
0
0
Management team
until 31 December
2025
6
86
1
14
0
0
0
0
Management team
from 1 January 2026
onwards
5
72
2
28
0
0
0
0
FY2024
Men
Women
Other
Not reported
Number
%
Number
%
Number
%
Number
%
Board of directors
4
67
2
33
0
0
0
0
Management team
6
86
1
14
0
0
0
0
Personnel by age group
Head count Percentage
2024
2025
2024
2025
Under 30 years 530 671 49% 52%
30−50 years 421 483 39% 37%
Over 50 years 141 143 13% 11%
Not reported 1 2 0% 0%
Data is presented as the number of active employment contracts at the end of the financial
year. The reporting uses the same figures as those presented in the financial statements.
Adequate wages (S1-10)
The salary paid to an employee is based on the demands of the job and the employee's
personal skills, qualifications, and performance. Puuilo pays all its employees at least the
salary stipulated by the collective agreement for the retail sector.
Health and safety metrics (S1-14)
Occupational accidents among Puuilo's staff are typically minor, such as falls, sprains, or cuts,
and they result in at most short-term absences.
Health and safety‑related metrics
2024 2025
Share of employees with employment contracts covered by
occupational health services (%)
100% 100%
66
Number of fatalities due to work-related injuries and
occupational health issues
0 0
Occupational accidents 20 8
Accident frequency 13.99 4.94
The number of recorded occupational accidents is estimated based on the total number of
accidents and the length of the resulting absence. A recorded occupational accident is defined
as an absence of more than four days, as such an absence usually requires a doctor's visit.
The accident frequency is calculated by dividing the number of recorded occupational
accidents by the total number of hours worked, multiplied by one million hours.
Compensation metrics (pay gap and total compensation) (S1-16)
The gender pay gap in the Puuilo Group for the financial year 2025 was 1.4% (4.0%).
Information related to remuneration is based on employees who were in active employment
during the financial year. The gender pay gap has been calculated as a headcount‑weighted
average of gross hourly wages for women and men. Experience‑based pay supplements have
been included in the calculation, while bonuses have been excluded. Working time
supplements have not been included, as they are based on the collective agreement and are
paid at equal rates to all employees. To ensure comparability, the gender pay gap for the
financial year 2024 has also been recalculated using the same methodology, which is why the
comparative figure presented differs from the previously published figure.
The ratio of the total remuneration of the highest‑paid individual at Puuilo to the median total
remuneration of other full‑time employees with employment contracts was 13.8 (6.5).
Incidents, complaints and severe human rights impacts (S1-17)
During the reporting period, 2 (4) cases of discrimination or harassment were recorded through
Puuilo’s supervisors or the reporting channel. One case was reported via the reporting channel
and one through a supervisor. The data for the metric is based on information provided by the
reporting channel service provider and the HR function.
No severe human rights incidents occurred during the reporting period.
No cases were processed in court, and no fines, penalty payments or compensation were paid.
67
ESRS S2 Workers in the value chain
Material impacts, risks and opportunities related to value chain workers
Description of impact, risk or opportunity Nature of impact Value
chain
Adverse working conditions within the value chain and their effects on
individuals’ well-being and means of livelihood
Potential negative
Upstream
Poor labor conditions in the supply chain pose a reputational risk,
potentially resulting in financial liabilities
Risk
Upstream
Health problems and occupational accidents affecting employees
throughout the value chain
Potential negative
Upstream
Serious human rights violations and inhumane living conditions within
the supply chain
Potential negative
Upstream
Reputational risk arising from severe human rights abuses within the
supply chain, negatively affecting market share
Risk
Upstream
Impact, risk and Opportunity management
Policies related to value chain workers (S2-1)
Policies related to value chain workers are set out in Puuilo’s ethical guidelines for
procurement, which are based on the UN Global Compact and the OECD Guidelines for
Multinational Enterprises. The ethical guidelines for procurement are incorporated into
procurement agreements and apply to all of Puuilo’s purchases and to all countries in the
supply chain.
Puuilo respects internationally recognised human rights and is committed to promoting
universal fundamental principles and rights at work, such as freedom of association and the
right to collective bargaining, occupational health and safety, the prohibition of forced labour,
child labour and human trafficking, non-discrimination, as well as reasonable working hours
and fair compensation for work performed. These principles are set out in the amfori BSCI
Code of Conduct, to which Puuilo is committed.
Puuilo seeks to reduce potential human rights violations in its value chain and, where
necessary, to remedy adverse impacts that have occurred. Puuilo’s suppliers and business
partners are likewise required to identify and promote the realisation of human rights and
labour rights. Suppliers and partners report on the promotion of responsibility when requested.
If deficiencies are identified, corrective actions are primarily sought through cooperation.
Cooperation may be terminated if the situation is not remedied.
Responsibility for procurement and for compliance with related principles lies with the
Purchasing and Logistics Director.
Puuilo has not become aware of any cases involving value chain workers during the reporting
period in which the UN Guiding Principles on Business and Human Rights, the ILO Declaration
on Fundamental Principles and Rights at Work, or the OECD Guidelines for Multinational
Enterprises for Responsible Business Conduct would not have been complied with.
68
Processes for engaging with value chain workers about impacts (S2-2)
Puuilo maintains close contact with its suppliers; however, there is no regular direct
communication with value chain workers. Engagement is carried out indirectly through social
responsibility audits conducted by third parties. In practice, this refers to audits based on the
amfori BSCI Code of Conduct or equivalent standards. Through these audits, information is
obtained on working conditions, including occupational safety, employee remuneration and
working hours, as well as the realisation of freedom of association and the right to collective
bargaining.
Processes to remediate negative impacts and channels for value chain workers to raise concerns (S2-3)
The amfori BSCI principles constitute a commitment by amfori members and their business
partners to respect human rights and protect the environment in the global supply chain in
accordance with internationally recognised principles. The principles are used to identify,
prevent, mitigate, report on and remedy adverse impacts related to human rights and the
environment.
Puuilo requires a valid amfori BSCI audit or an equivalent audit from suppliers whose country
of operation is classified as high‑risk in terms of the realisation of human rights. The
classification is based on amfori’s country risk classification. Puuilo does not conduct audits
itself; audits are carried out by authorised third parties. Audit reports are valid for two years
and are a prerequisite for entering into a new agreement or renewing an existing agreement.
When placing an order, Puuilo’s buyer verifies the validity of the audit report.
If concerns arise regarding suppliers’ working conditions or the realisation of human rights,
the case is investigated together with the supplier. The supplier is given the opportunity to
implement corrective actions within a reasonable timeframe. The company assesses the
outcomes of corrective actions in cooperation with the supplier. On a case‑by‑case basis,
cooperation with the supplier may be terminated if the supplier does not commit to corrective
actions.
Value chain workers have the opportunity to contact Puuilo through the whistleblowing
reporting channel available on Puuilo’s website. In practice, Puuilo does not have the means
to actively inform value chain workers of the existence of the channel, nor to ensure that they
are aware of it. The reporting channel and its operating principles are described in disclosure
requirement S1‑3.
Taking action on material impacts, and approaches to mitigating material risks and pursuing material
opportunities related to value chain workers, and effectiveness of those actions and approaches (S2-4)
Domestic suppliers and suppliers from countries classified as low-risk for human rights
compliance are required to commit to Puuilo's procurement ethical guidelines. The guidelines
take into account the working conditions and the realisation of human rights of value chain
workers. Suppliers from high-risk countries are required to have a valid amfori BSCI audit or
an equivalent internationally recognised responsibility audit in place at the time of entering into
a contract.
Through commitments and audits, Puuilo seeks to ensure that working conditions for value
chain workers are appropriate and that their human rights are respected. The use of
69
contractual terms provides an incentive for the supply chain to act responsibly. Cooperation
with suppliers is described in more detail in section G1-2 of this report.
No specific measures were implemented in 2025, as Puuilo did not receive any reports of
severe human rights or labour rights violations.
Supplier selection and related processes are the responsibility of Puuilo’s procurement
department under the leadership of the Purchasing and Logistics Director as part of day-to-day
operations. In 2025, no separate budget allocations were used and no investments were made
in relation to supplier selection or value chain workers.
Metrics and goals
Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities (S2-5)
The objective is to expand the coverage of amfori BSCI or equivalent audits in supplier
contracts in high-risk countries. Successful completion of an audit demonstrates the supplier’s
commitment to ensuring appropriate working conditions and respecting the human rights of its
workers. The target has been set by Puuilo’s management team without direct engagement
with value chain workers.
The metric used is a ratio comparing purchases in euros from audited suppliers in high-risk
countries to total purchases from high-risk countries. The metric was reviewed in 2024, which
serves as the base year. The target is to increase the share to 90% by 2028.
During the reporting period, the share of audited suppliers in purchases from high-risk
countries was 87.9% (85.5%). Purchases were made from suppliers located in countries
classified as high-risk—China, India, Pakistan, Turkey, Vietnam and Cambodia—from
approximately 200 suppliers in total.
Basis for Metrics Related to Value Chain Workers
The classification of supplier countries into high-risk countries and other countries in the supply
chain is based on the amfori BSCI country risk classification. Information on the timing of
supplier audits is obtained from the amfori BSCI portal. An audit may have been conducted
no more than two years prior to entering into a contract.
70
ESRS S4 Consumers and end-users
Material impacts, risks and opportunities related to consumers and end users
Description of impact, risk or opportunity Nature of impact Value chain
Secure payment methods and e-commerce security Risk Downstream
Risks related to product safety Potential negative
Downstream
Product safety standards and the mitigation of consumer risks
Actual positive Downstream
Management of Impacts, Risks, and Opportunities
Policies related to consumers and end-users (S4-1)
Material sustainability issues for consumers and end users relate to product safety and data
security. In line with its sustainability strategy, Puuilo aims to ensure the quality and safety of
the products it sells as well as the security of customer data. All customers are served in
accordance with uniform principles.
Puuilo does not have a separate product safety policy. In Puuilo’s Code of Conduct,
consumers and end users are addressed in particular under the principle “we communicate
openly and truthfully”. Product, service, pricing and other relevant information is presented
clearly and truthfully in marketing communications, and no misleading expressions are used.
In addition, the principle “we handle information confidentially” describes the strict
confidentiality requirements relating to customer and other personal data. The ethical
principles are described in more detail in section G1‑1.
Through information security management in accordance with Puuilo’s data protection and
information security policies, the company aims to ensure the confidentiality, integrity and
availability of information requiring protection. All processing of personal data complies with
applicable legislation and Puuilo’s principles for the processing of personal data.
Responsibility for the implementation of product safety-related principles lies with the
Purchasing and Logistics Director, while responsibility for the implementation of data
protection and information security-related principles lies with the IT Director.
The data protection and information security policy has been approved by the Board of
Directors. Its key guidelines are included in Puuilo's Code of Conduct and the House Book,
which are available to all staff. Annual data protection and information security training is
mandatory for all staff.
Puuilo does not have a separate human rights commitment for customers and end users.
Respect for human rights is set out in the Code of Conduct and in the ethical guidelines for
procurement, which are described in more detail in sections S1-1 and S2-1.
Processes for engaging with consumers and end-users about impacts (S4-2)
Consumer needs and preferences directly guide retail operations. These are interpreted
through product sales and customer satisfaction. The product range is adjusted based on
consumer opinions and feedback. All stakeholders, including consumers and end users,
71
emphasized privacy and data security in the stakeholder survey related to the double
materiality assessment.
Puuilo has several channels for communication with customers. Customers can directly
contact Puuilo's centralized customer service or store staff. Written feedback can be provided
through Puuilo's website, which also includes contact information for customer service, stores,
and Puuilo's management team. The whistleblowing channel on Puuilo's website is also
available to business customers, consumers, and end users. The channel and its operating
principles are described in disclosure requirement S1-3. Interactions, customer calls, and
feedback are daily basis.
Customer satisfaction surveys are conducted regularly. The most recent customer satisfaction
survey was carried out in 2024. Additionally, a comprehensive stakeholder survey was
conducted as part of the double materiality assessment to gather customer views on Puuilo's
responsibility.
The CEO, who has the highest operational responsibility, is in charge of communication with
customers, communication channels, and considering customer views.
Customer feedback is responded to based on a case-by-case assessment. The number of
product returns and complaints is continuously monitored.
Processes to remediate negative impacts and channels for consumers and end-users to raise concerns
(S4-3)
Customers have the right to exchange or return purchased products within 30 days. The right
of return does not apply to certain clearly defined product groups, such as hygiene products,
food, or pet food.
Product safety is strictly regulated. Authorities responsible for monitoring product safety
include the Finnish Safety and Chemicals Agency (Tukes), Customs, and the Food Authority.
Each buyer monitors regulatory changes for their product area.
Quality and product safety deviations are addressed, where necessary, through sales bans
and product recalls, which are effective measures for removing low-quality products from the
market. For products that are not private-label products, the supplier or the importer of the
product is responsible for product safety and decides on recalls. Any damages caused by
defective products are compensated to the customer.
The channels available to consumers and end users to raise concerns and needs directly with
Puuilo are described in disclosure requirements S1-3 and S4-2. Puuilo considers these
channels to be sufficient, and consumers are aware of them.
72
Taking action on material impacts on consumers and end-users, and approaches to managing material
risks and pursuing material opportunities related to consumers and end- users, and effectiveness of
those actions (S4-4)
Actions Related to Product Safety
Puuilo aims to enhance product safety and thereby manage the costs associated with product
recalls and strengthen brand image through preventive measures. The quality and safety of
products are primarily ensured through careful supplier selection, which includes both product
safety and quality documentation as well as checking supplier customer references. Products
imported by Puuilo are evaluated and tested considering the specific characteristics required
for each product.
Product safety is a key theme in the induction of buyers. In stores and customer service,
customers are guided on the safe use of products. Product packaging labels and instructions
for use must be appropriate. For chemicals, it is ensured that safety data sheets are available.
The share of product complaints and e-commerce product reviews is monitored on a bi-weekly
basis. If the number of complaints increases, the supplier is contacted without delay to
investigate the quality deviation. Quality deficiencies may lead to a change of supplier. Where
necessary, the product assortment is supplemented with a replacement product from another
manufacturer.
In cases of serious quality deviations, a decision on a sales ban or recall is made if necessary.
In these cases, cooperation is carried out with the authorities responsible for monitoring
product safety, and their guidelines are followed.
Puuilo has not received any reports related to human rights or violations of human rights
concerning consumers or end users.
Ensuring product safety is a continuous activity at Puuilo, and no separate budget allocations
were used nor investments made for this purpose during the reporting period. Within Puuilo’s
procurement organisation, buyers are supported by a product development and quality
manager.
Actions Related to Data Protection and Information Security
By offering secure payment methods to customers, the risk of identity theft and fraud is
reduced. Information security is part of daily operations and is implemented through
administrative and technical measures.
The IT Director is responsible for handling information security incidents and reporting them
internally within Puuilo as required. Incidents assessed as severe are addressed by the
company’s management team. For identified information security risks, a mitigation plan is
prepared. Necessary measures are scheduled and responsibilities are assigned.
An annual assessment of information security risks and an external evaluation of information
security are conducted. Based on these, an annual action plan is prepared. The
implementation of the plan is monitored quarterly by the management team and annually by
the Board of Directors.
73
In 2025, systematic development of information security and data protection continued.
Development measures focused on the protection of identities and devices, improvement of
data protection-related processes and practices, enhancement of 24/7 monitoring and
response capabilities, and ensuring business continuity. Employee training materials were
updated, and the content of mandatory information security and data protection training for all
employees was expanded.
According to the 2024 action plan, in addition to the aforementioned data protection work,
document classification was piloted, the effectiveness of the continuity plan in managing
cyberattacks was tested, a new attack simulation and training tool was introduced, and
technical protections for securing identities and devices were tightened.
No severe information security incidents were identified at Puuilo in 2025.
The expected outcome of these actions is that information security will continue to be ensured
and that no severe information security incidents will occur.
Regarding the security of card payments, Puuilo complies with the international PCI DSS
standard (Payment Card Industry Data Security Standards). The company is audited annually
for PCI DSS compliance. All staff undergo annual information security and data protection
training, and all employees working with payment cards complete annual PCI passport training.
The HR department monitors the completion of these trainings.
Metrics and targets
Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities (S4-5)
There are no time-bound targets set for product safety. Product quality is monitored using the
product return rate. The objective is for the return rate to decrease on a year‑on‑year basis. In
2025, the return rate was 0.1%.
The return rate includes returns due to product defects or quality deficiencies. Store personnel
record the reason for the return when receiving customer returns. The rate is calculated by
dividing the number of returned items by the number of items sold. The return rate does not
include returns from e-commerce.
In addition to complying with applicable laws and regulations, the objectives for information
security are to ensure that no severe security incidents or data breaches occur. In the financial
year 2025, no severe information security incidents were recorded.
Puuilo’s IT department assesses the severity of all information security incidents and breaches.
The assessment takes into account the potential impact on individuals or the company, as
well as how leaked information could be misused.
74
Governance information
ESRS G1 Business conduct
Material impacts, risks and opportunities related to governance
Description of impact, risk or opportunity Nature of
impact
Value chain
Poor customer service due to weak organizational culture
Potential
negative
Own
operations
Employee satisfaction, overall well-being, and organizational commitment
Potential
positive
Own
operations
A strong corporate culture contributing to a positive brand image and market
share growth
Opportunity
Own
operations
A strong employer brand enhances employee engagement and contributes to
higher productivity
Opportunity
Own
operations
Insufficient monitoring of the value chain may lead to adverse impacts on
people and the environment
Potential
negative
Own
operations
Reputational risks arising from adverse social and environmental impacts in the
supply chain may weaken market share
Risk
Own
operations
Long-term partnerships contributing to increased efficiency Opportunity
Own
operations
Corporate culture and business conduct policies and corporate culture (G1-1)
Puuilo's corporate culture embodies the company's values, which have been formulated
together with the staff. These values are actively communicated to ensure they become part
of the company's daily operations.
75
Puuilo strives to maintain an atmosphere of openness and high ethics in its business
operations. Business conduct is guided by the House Book, which are internal guidelines for
employees, ethical guidelines for employees, and the Supplier Code of Conduct. The ethical
principles related to Puuilo’s corporate culture set out in the Code of Conduct are described
in section S1-1, and the ethical guidelines for procurement in section G1-2. The Code of
Conduct also covers the prevention of bribery and corruption. Any suspected violations of
ethical guidelines are investigated in accordance with the intervention model defined in the
House Book or through the whistleblowing reporting channel process.
The corporate culture is characterized by a low hierarchy. Management engages regularly
with employees through, among other channels, a company-wide Teams channel, informal
discussion forums, the cooperation negotiation committee, and day-to-day internal
collaboration. Corporate culture is assessed through an annual employee survey. The
objectives and metrics of the employee survey are described in section S1-5.
The CEO is responsible for the implementation of ethical principles, and each member of the
management team is responsible for the guidelines within their area of responsibility.
The ethical guidelines for procurement (Supplier Code of Conduct) define Puuilo’s
requirements for suppliers. The procurement ethics guidelines are described in more detail in
section G1-2, Supplier relationship management.
Responsibility for updating the House Book and the Code of Conduct lies with HR, and for
supplier-related cooperation with the procurement organisation. The House Book and the
Code of Conduct are electronically available to all Puuilo employees, and reviewing them
forms part of the onboarding process. The ethical guidelines for procurement are integrated
into supplier selection processes and cooperation agreements.
76
Puuilo operates a reporting channel open to all for reporting suspected or actual violations of
policies. The whistleblowing reporting channel is described in disclosure requirement S1-3.
Reporters are protected against retaliation in accordance with the whistleblowing policy by
safeguarding their anonymity and by applying disciplinary measures to employees who
engage in retaliatory actions against an identified reporter. In situations of potential business
disruption, internal control procedures are followed.
New employees familiarise themselves with the Code of Conduct as part of onboarding. All
employees complete mandatory annual refresher training on ethical conduct, and the HR
function monitors completion of the training.
Key roles in the prevention of corruption and bribery include persons with financial
decision-making authority, namely members of the management team and individuals
responsible for purchasing and indirect procurement.
Management of relationships with suppliers (G1-2)
Puuilo aims to develop its operations with goods and service suppliers in a long-term manner.
Stable partnerships can create more efficient business relationships and enhance the
profitability of both parties.
Puuilo has approximately 700 product suppliers in total. Around 80% of purchases are made
domestically, while the remaining approximately 20% are sourced from other EU countries or
Asia. Puuilo manages business and reputational risks by maintaining a broad supplier network.
Supplier selection includes the review of suppliers’ product safety and quality documentation
as well as customer references. The Purchasing and Logistics Director is responsible for
supplier selection procedures.
Preventing potential environmental or human rights violations in the supply chain, as well as
related reputational risks and potential loss of customer trust, is important to Puuilo. Supplier
relationships are managed in accordance with the company’s ethical guidelines and the ethical
guidelines for procurement. Ongoing interaction with suppliers includes regular meetings,
buyer visits to suppliers’ premises, and periodic negotiations on the terms of cooperation
agreements.
The basic principles and expectations for suppliers are set out in the ethical guidelines for
procurement (Supplier Code of Conduct), which are based on the OECD Guidelines for
Multinational Enterprises. Puuilo categorises suppliers into two groups based on country risk.
Suppliers operating in Finland or other countries classified as low risk are required to commit
to Puuilo’s ethical guidelines for procurement. Suppliers located in high-risk countries are
required to undergo an amfori BSCI audit or an equivalent audit. The ethical guidelines for
procurement apply to all Puuilo suppliers. The Purchasing and Logistics Director is responsible
for the implementation of the procurement ethics guidelines, and each member of the
management team is responsible for compliance within their respective area of responsibility.
The ethical guidelines for procurement require suppliers to respect internationally recognised
human rights and to promote fundamental labour rights. In addition, suppliers and business
partners are expected to proactively identify environmental impacts and to avoid harmful
environmental effects, such as loss of biodiversity, challenges related to access to clean water,
emissions to air, soil or water, and the use of virgin rare raw materials.
77
Suppliers and business partners report on the promotion of responsibility when requested. If
deficiencies are identified, corrective actions are primarily sought through cooperation. Puuilo
is not materially dependent on individual suppliers, and cooperation may be terminated if a
supplier does not commit to remedying identified shortcomings.
Puuilo’s practice is to pay all invoices on time and to apply reasonable payment terms that are
commonly used in the industry. No specific payment practices are applied exclusively to small
or medium-sized enterprises; the same principles apply to all suppliers. Puuilo’s payment
practices are described in more detail in section G1-6.
Metrics and Targets
Payment Practices (G1-6)
Puuilo’s purchase invoices are mainly paid in accordance with payment terms of 30–60 days,
regardless of the size of the supplier. Due to system-related limitations, precise information
on the proportion of payments made in accordance with standard payment terms is not
available. Invoices related to imported products are typically paid before the products are
recognised in Puuilo’s inventory or no later than 30 days after shipment.
Due payments are monitored daily as part of Puuilo’s invoice processing. The objective is to
pay invoices by their due date, except for invoices that are subject to dispute or otherwise
require clarification. In such cases, the supplier is always contacted. The average time taken
to pay an invoice from the date when the statutory payment period begins was 21 (23) days.
The average has been estimated based on Basware’s supplier-specific payment time report.
To ensure comparability, the average payment time for invoices in the financial year 2024 has
also been recalculated using the same methodology, which is why the comparative figure
differs from the previously published figure.
There are no ongoing lawsuits or disputes due to payment delays.
78
Appendices to sustainability statement
Appendix 1 (IRO-2)
For each standard, the material information requirements have been reported:
Standard
Disclosure requirement
Page
ESRS 2
BP-1 – General basis for preparation of the sustainability statement
BP-2 – Disclosures in relation to specific circumstances
GOV-1 – The role of the administrative, management and supervisory bodies
GOV-2 – Information provided to and sustainability matters addressed by the
administrative, management, and supervisory bodies
GOV-3 – Integration of sustainability-related performance in incentive schemes
GOV-4 – Statement on due diligence
GOV-5 - Risk management and internal controls over sustainability reporting
SBM-1 – Strategy, business model and value chain
SBM-2 – Interests and views of stakeholders
SBM-3 - Material impacts, risks, and opportunities and their interaction with
strategy and business model
IRO-1 - The identification and assessment of material impacts, risks, and
opportunities
IRO-2 – Disclosure requirements in ESRS covered by the sustainability
statement
ESRS E1
ESRS 2 GOV-3 Integration of sustainability-related performance in incentive
schemes
E1-1 – Transition plan for climate change mitigation
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction
with strategy and business model
ESRS 2 IRO-1 – Description of the processes to identify and assess material
climate-related impacts, risks and opportunities
E1-2 – Policies related to climate change mitigation and adaptation
E1-3 – Actions and resources in relation to climate change policies
E1-4 – Targets related to climate change mitigation and adaptation
E1-5 – Energy consumption and mix
E1-6 – Gross scopes 1, 2, 3 and Total GHG emissions
ESRS E5
E5. IRO-1 Description of the processes to identify and assess material resource
use and circular economy-related impacts, risks and opportunities
E5-1 Policies related to resource use and circular economy
E5-2 Actions and resources related to resource use and circular economy
E5-3 Targets related to resource use and circular economy
E5-4 Resource inflows
E5-5- Resource outflows
ESRS S1
ESRS 2 SBM-2 – Interests and views of stakeholders
ESRS 2 SBM-3 - Material impacts, risks and opportunities and their interaction
with strategy and business model
S1-1 – Policies related to own workforce
S1-2 – Processes for engaging with own workers and workers’ representatives
about impacts
S1-3 – Processes to remediate negative impacts and channels for own workers
to raise concerns
S1-4 – Taking action on material impacts on own workforce, and approaches to
mitigating material risks and pursuing material opportunities related to own
workforce, and effectiveness of those actions
S1-5 – Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities
S1-6 – Characteristics of the undertaking’s employees
S1-9 – Diversity metrics
S1-10 – Adequate wages
S1-14 – Health and safety metrics
S1-16 – Remuneration metrics (pay gap and total remuneration)
S1-17 – Incidents, complaints and severe human rights impacts
ESRS S2
SBM-2 Interests and views of stakeholders
79
SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
S2-1 Policies related to value chain workers
S2-2 Processes for engaging with value chain workers about impacts
S2-3 Processes to remediate negative impacts and channels for value chain
workers to raise concerns
S2-4 Taking action on material impacts on value chain workers, and
approaches to managing material risks and pursuing material opportunities
related to value chain workers, and effectiveness of those actions
S2-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
ESRS S4
SBM-2 Interests and views of stakeholders
SBM-3 Material impacts, risks and opportunities and their interaction with
strategy and business model
S4-1 Policies related to consumers and end-users
S4-2 Processes for engaging with consumers and end-users about impacts
S4-3 Processes to remediate negative impacts and channels for consumers
and end-users to raise concerns
S4-4 Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material opportunities
related to consumers and end- users, and effectiveness of those actions
S4-5 Targets related to managing material negative impacts, advancing positive
impacts, and managing material risks and opportunities
ESRS G1
ESRS 2 GOV-1 The role of the administrative, management and supervisory
bodies
G1-1 Business conduct policies and corporate culture
G1-2 Management of relationships with suppliers
G1-6 – Payment practices
Appendix 2 (IRO-2)
List of Other Data Points Required by EU Legislation
Disclosure requirement and
related datapoint
SFDR
reference
Pillar 3
reference
Benchmark
regulation
reference
EU climate
law reference
Location in
the report
ESRS 2 GOV-1 Board's gender
diversity paragraph 21 (d)
X
X
General
disclosures
ESRS 2 GOV-1 Percentage of board
members who are independent
paragraph 21 (e)
X
General
disclosures
ESRS 2 GOV-4 Statement on due
diligence paragraph 30
X
General
disclosures
ESRS 2 SBM-1 Involvement in
activities related to fossil fuel
activities paragraph 40 (d) i
X
X
X
Non-material
ESRS 2 SBM-1 Involvement in
activities related to chemical
production paragraph 40 (d) ii
X
X
Non-material
ESRS 2 SBM-1 Involvement in
activities related to controversial
weapons paragraph 40 (d) iii
X
X
Non-material
ESRS 2 SBM-1 Involvement in
activities related to cultivation and
X
Non-material
80
production of tobacco paragraph 40
(d) iv
ESRS E1-1 Transition plan to reach
climate neutrality by 2050 paragraph
14
X
Environment
ESRS E1-1 Undertakings excluded
from Paris-aligned Benchmarks
paragraph 16 (g)
X
X
Non-material
ESRS E1-4 GHG emission reduction
targets paragraph 34
X
X
X
Environment
ESRS E1-5 Energy consumption
from fossil sources disaggregated by
sources (only high climate impact
sectors) paragraph 38
X
Environment
ESRS E1-5 Energy consumption and
mix paragraph 37
X
Environment
ESRS E1-5 Energy intensity
associated with activities in high
climate impact sectors paragraphs
40 to 43
X
Environment
ESRS E1-6 Gross Scope 1, 2, 3 and
Total GHG emissions paragraph 44
X
X
X
Environment
ESRS E1-6 Gross GHG emissions
intensity paragraphs 53 to 55
X
X
X
Environment
ESRS E1-7 GHG removals and
carbon credits paragraph 56
X
Environment
ESRS E1-9 Exposure of the
benchmark portfolio to climate-
related physical risks paragraph 66
X
Not reported
due to
transitional
provisions
(BP-2)
ESRS E1-9 Disaggregation of
monetary amounts by acute and
chronic physical risk paragraph 66
(a),
ESRS E1-9 Location of significant
assets at material physical risk
paragraph 66 (c)
X
Not reported
due to
transitional
provisions
(BP-2)
ESRS E1-9 Breakdown of the
carrying value of its real estate
assets by energy-efficiency classes
paragraph 67 (c)
X
Not reported
due to
transitional
provisions
(BP-2)
ESRS E1-9 Degree of exposure of
the portfolio to climate related
opportunities paragraph 69
X
Not reported
due to
transitional
provisions
(BP-2)
ESRS E2-4 Amount of each pollutant
listed in Annex II of the E- PRTR
Regulation (European Pollutant
Release and Transfer Register)
emitted to air, water and soil,
paragraph 28
X
Non-material
81
ESRS E3-1 Water and marine
resources paragraph 9
X
Non-material
ESRS E3-1 Dedicated policy
paragraph 13
X
Non-material
ESRS E3-1 Sustainable oceans and
seas paragraph 14
X
Non-material
ESRS E3-4 Total water recycled and
reused paragraph 28 (c)
X
Non-material
ESRS E3-4 Total water consumption
in m3 per net revenue on own
operations paragraph 29
X
Non-material
ESRS 2- IRO 1 - E4 paragraph 16
(a) i
X
Non-material
ESRS 2- IRO 1 - E4 paragraph 16
(b)
X
Non-material
ESRS 2- IRO 1 - E4 paragraph 16
(c)
X
Non-material
ESRS E4-2 Sustainable land /
agriculture practices or policies
paragraph 24 (b)
X
Non-material
ESRS E4-2 Sustainable oceans /
seas practices or policies paragraph
24 (c)
X
Non-material
ESRS E4-2 Policies to address
deforestation paragraph 24 (d)
X
Non-material
ESRS E5-5 Non-recycled waste
paragraph 37 (d)
X
Environment
ESRS E5-5 Hazardous waste and
radioactive waste paragraph 39
X
Environment
ESRS 2- SBM3 - S1 Risk of
incidents of forced labour paragraph
14 (f)
X
Non-material
ESRS 2- SBM3 - S1 Risk of
incidents of child labour paragraph
14 (g)
X
Non-material
ESRS S1-1 Human rights policy
commitments paragraph 20
X
Social
ESRS S1-1 Due diligence policies on
issues addressed by the
fundamental International Labor
Organisation Conventions 1 to 8,
paragraph 21
X
Social
ESRS S1-1 processes and
measures for preventing trafficking in
human beings paragraph 22
X
Social
ESRS S1-1 workplace accident
prevention policy or management
system paragraph 23
X
Social
ESRS S1-3 grievance/complaints
handling mechanisms paragraph 32
(c)
X
Social
ESRS S1-14 Number of fatalities
and number and rate of work-related
accidents paragraph 88 (b) and (c)
X
X
Social
82
ESRS S1-14 Number of days lost to
injuries, accidents, fatalities or illness
paragraph 88 (e)
X
Not reported
due to
transitional
provisions
(BP-2)
ESRS S1-16 Unadjusted gender pay
gap paragraph 97 (a)
X
X
Social
ESRS S1-16 Excessive CEO pay
ratio paragraph 97 (b)
X
Social
ESRS S1-17 Incidents of
discrimination paragraph 103 (a)
X
Social
ESRS S1-17 Non-respect of UNGPs
on Business and Human Rights and
OECD paragraph 104 (a)
X
X
Social
ESRS 2- SBM3 – S2 Significant risk
of child labour or forced labour in the
value chain paragraph 11 (b)
X
General
disclosures
ESRS S2-1 Human rights policy
commitments paragraph 17
X
Social
ESRS S2-1 Policies related to value
chain workers paragraph 18
X
Social
ESRS S2-1 Non-respect of UNGPs
on Business and Human Rights
principles and OECD guidelines
paragraph 19
X
X
Social
ESRS S2-1 Due diligence policies on
issues addressed by the
fundamental International Labor
Organisation Conventions 1 to 8,
paragraph 19
X
Social
ESRS S2-4 Human rights issues and
incidents connected to its upstream
and downstream value chain
paragraph 36
X
Social
ESRS S3-1 Human rights policy
commitments paragraph 16
X
Non-material
ESRS S3-1 non-respect of UNGPs
on Business and Human Rights, ILO
principles or and OECD guidelines
paragraph 17
X
X
Non-material
ESRS S3-4 Human rights issues and
incidents paragraph 36
X
Non-material
ESRS S4-1 Policies related to
consumers and end-
users paragraph
16
X
Social
ESRS S4-1 Non-respect of UNGPs
on Business and Human Rights and
OECD guidelines paragraph 17
X
X
Social
ESRS S4-4 Human rights issues and
incidents paragraph 35
X
Social
ESRS G1-1 United Nations
Convention against Corruption
paragraph 10 (b)
X
Governance
ESRS G1-1 Protection of
whistleblowers paragraph 10 (d)
X
Governance
83
ESRS G1-4 Fines for violation of
anti-corruption and antibribery laws
paragraph 24 (a)
X
X
Non-material
ESRS G1-4 Standards of anti-
corruption and anti-bribery
paragraph 24 (b)
X
Non-material
84
Financial Statements
Consolidated Statement of Comprehensive Income
EUR million
Note
1 Feb 2025
- 31 Jan
2026
1 Feb 2024
- 31 Jan
2025
Net sales
2.1
442.3
383.4
Other operating income
2.1
0.7
0.5
Materials and services
2.3
-273.3
-238.8
Personnel expenses
2.3
-44.5
-38.5
Other operating expenses
2.3
-27.9
-22.6
Depreciation, amortisation and impairments
4.1-4.4
-22.1
-19.0
Operating profit
75.1
65.1
Finance income
5.6
0.5
0.6
Finance costs
5.6
-5.9
-5.8
Total finance income and costs
-5.3
-5.2
Profit before taxes
69.8
59.9
Current income tax
2.4
-14.3
-12.6
Deferred income tax
2.4
0.5
0.6
Total income tax expense
-13.8
-12.0
Profit for the period
56.0
47.9
Total comprehensive income for the period
56.0
47.9
Profit for the period attributable to:
Owners of the parent
56.0
47.9
Profit for the period
56.0
47.9
Earnings per share for profit attributable to owners of the parent
Basic and diluted earnings per share (EUR)
5.3
0.66
0.57
The Notes are an integral part of these financial statements.
85
Consolidated Balance Sheet
EUR million
Note
31 Jan 2026
31 Jan 2025
ASSETS
Non-current assets
Goodwill
4.1
33.5
33.5
Intangible assets
4.2
13.7
16.0
Property, plant and equipment
4.3
7.6
5.9
Right-of-use assets
4.4
92.3
82.1
Deferred tax assets
2.4
1.6
1.3
Total non-current assets
148.7
138.8
Current assets
Inventories
3.1
123.2
115.5
Trade receivables
3.2, 5.5
9.4
5.9
Other receivables
3.2
2.4
2.3
Cash and cash equivalents
33.0
18.3
Total current assets
168.0
142.0
Total assets
316.7
280.8
EUR million
31 Jan 2026
31 Jan 2025
Equity and liabilities
Equity
Share capital
5.2
0.1
0.1
Reserve for invested unrestricted equity
5.2
29.0
29.0
Retained earnings
13.8
24.8
Profit for the period
56.0
47.9
Total equity attributable to owners of the parent
98.9
101.8
Total equity
98.9
101.8
Liabilities
Non-current liabilities
Loans from financial institutions
5.4, 5.5
69.9
50.0
Lease liabilities
4.4
77.3
68.1
Provisions
4.5
1.1
1.0
Deferred tax liabilities
2.4
2.3
2.5
Total non-current liabilities
150.6
121.6
Current liabilities
Lease liabilities
4.4
16.2
15.0
Trade payables
3.3, 5.5
31.0
24.0
Advances received
2.1
0.5
0.4
Income tax liabilities
2.4
1.7
2.8
Other current liabilities
3.3, 5.5
17.8
15.2
Total current liabilities
67.2
57.4
Total liabilities
217.9
179.0
Total equity and liabilities
316.7
280.8
The Notes are an integral part of these financial statements.
86
Consolidated Statement of Changes in Equity
Attributable to owners of the parent
EUR million
Note
Share capital
Reserve for
invested
unrestricted
equity Own shares
Retained
earnings Total equity
Equity on 1 Feb 2025
0.1
29.0
-3.2
76.0
101.8
Profit for the period
56.0
56.0
Total comprehensive
56.0
56.0
Dividends
5.2
-59.0
-59.0
Transfer of own shares
5.2
0.6
-0.6
0.0
Share-based incentive plan
2.3
0.1
0.1
Total transactions with owners
0.6
-59.5
-58.9
Equity on 31 Jan 2026
0.1
29.0
-2.6
72.4
98.9
Attributable to owners of the parent
EUR million
Note
Share capital
Reserve for
invested
unrestricted
equity Own shares
Retained
earnings Total equity
Equity on 1 Feb 2024
0.1
29.0
-3.2
59.2
85.0
Profit for the period
47.9
47.9
Total comprehensive
47.9
47.9
Dividends
5.2
-32.0
-32.0
Share-based incentive plan
2.3
0.8
0.8
Total transactions with owners
-
-31.2
-31.2
Equity on 31 Jan 2025
0.1
29.0
-3.2
76.0
101.8
The Notes are an integral part of these financial statements.
87
Consolidated Statement of Cash Flows
EUR million
Note
1 Feb
2025 - 31
Jan 2026
1 Feb
2024 - 31
Jan 2025
Cash flows from operating activities
Profit for the period
56.0
47.9
Adjustments for:
Depreciation, amortisation and impairments
4.1-4.4
22.1
19.0
Gains/losses on disposal of property, plant and equipment
0.0
0.0
Other non-cash adjustments
0.1
0.8
Finance income and costs
5.6
5.3
5.2
Income tax expense
2.4
13.8
12.0
Changes in working capital
Change in trade and other receivables
3.2
-3.7
-1.0
Change in inventories
3.1
-7.7
-22.4
Change in trade and other current non-interest-bearing liabilities
3.3
9.3
5.2
Interests paid
-1.6
-2.6
Interests of lease liabilities
-3.4
-2.9
Interests received
0.5
0.6
Arrangement fee for loans from financial institutions and other financial costs
-0.5
-0.3
Income taxes paid
-15.4
-12.4
Net cash flows generated from operating activities
74.9
49.1
Cash flows from investing activities
Payments for intangible assets
4.2
-0.4
-2.3
Payments for property, plant and equipment
4.3
-5.4
-4.8
Proceeds from sale of property, plant and equipment
4.3
0.0
0.0
Net cash used in investing activities
-5.8
-7.1
Cash flows from financing activities
Proceeds from borrowings
5.1
70.0
-
Repayments of loans from financial institutions
5.1
-50.0
-
Principal elements of lease liabilities
5.1
-15.4
-13.1
Dividends
5.2
-59.0
-32.0
Net cash used in financing activities
-54.4
-45.1
Net increase (+)/(-) decrease in cash and cash equivalents
14.6
-3.1
Cash and cash equivalents at the beginning of the period
18.3
21.5
Cash and cash equivalents at the end of the period
33.0
18.3
The Notes are an integral part of these financial statements.
88
Notes to the Consolidated Financial Statements
1 Basis of preparation
2 Business performance
3 Working capital
4 Capital employed
5 Capital structure and financing
6 Other notes
89
1 BASIS OF PREPARATION
Note 1.1 Company information
Puuilo Group is a Finnish retailer company. On 31 January 2026, the fast-growing Group had
a total of 56 stores (49 stores) across Finland. In addition, the online store serves customers.
The product assortment includes building supplies, tools, HVAC and electrical accessories,
pet food and supplies, car accessories, groceries, household products, garden supplies, free-
time and other accessories as well as services. Puuilo is one of the leading discount retailers
in Finland and it serves both consumers and B2B customers in the repair and maintenance
as well as construction sector. The company is known for its low prices and wide range of
products.
The Group’s parent company is Puuilo Plc, domiciled in Helsinki, Finland. The company’s
registered address is Pakkalankuja 6, 01510 Vantaa, and its Business ID is 2726573-8. Puuilo
Plc is listed on Nasdaq Helsinki. The Consolidated Financial Statements are available on
Puuilo’s investor website at www.investors.puuilo.fi/en/ and at the company’s headquarters at
Pakkalankuja 6, 01510 Vantaa.
During the financial year, a new Swedish subsidiary, Puuilo Varuhus AB, was established.
The company has not yet had any business operations
These Consolidated Financial Statements include the consolidated financial statements of
Puuilo Plc (“the company”) and its Finnish subsidiary (“the Group” or “Puuilo”). These
Consolidated Financial Statements include the consolidated statement of comprehensive
income, consolidated balance sheet, consolidated statement of changes in equity and
consolidated statement of cash flows as well as notes for the reporting period that ended on
31 January 2026 and comparison information for the financial year ended on 31 January 2025.
The company’s reporting period begins on 1 February and ends on 31 January. The reporting
period 2025 comprises the period 1 February 2025 – 31 January 2026 and the comparison
period 2024 the period 1 February 2024 – 31 January 2025.
The company’s Board of Directors approved these Financial Statements on 15 April 2026.
Under the Finnish Limited Liability Companies Act, shareholders have the right to approve or
reject the financial statements at the general meeting held after their publication. The general
meeting also has the authority to decide on amendments to the financial statements.
Note 1.2 Basis of preparation
Puuilo’s Consolidated Financial Statements have been prepared in accordance with IFRS
Accounting Standards approved for adoption by the European Union. They comply with the
effective IAS and IFRS Accounting Standards and the respective SIC and IFRIC
interpretations. The notes to the Consolidated Financial Statements also include requirements
in accordance with Finnish accounting and limited liability company legislation.
The notes to the Consolidated Financial Statements have been grouped into sections based
on their nature. The basis of preparation of the financial statements is described as part of the
note Accounting Policies, while the accounting policies directly related to a specific note are
presented as part of the note in question. The notes of each area contain the relevant financial
information, the accounting policies as well as the key estimates and discretionary solutions.
The financial statements have been prepared on the basis of initial cost.
90
The figures in the Consolidated Financial Statements are presented in millions of euros, unless
otherwise stated. The figures have been rounded to the nearest million, and therefore the sum
of individual figures may deviate from the total presented. The presentation currency of the
financial statements is euro, which is also the functional currency of the company and the
Group.
Note 1.3 Accounting estimates and judgements
Critical accounting estimates and assumptions
The preparation of Consolidated Financial Statements requires management to make
estimates and assumptions that affect the application of accounting policies and the
recognised amounts of assets, liabilities, income and expenses. The following areas include
management’s estimates and assumptions:
• Share-based payments (Note 2.3)
• Measurement of inventories (Note 3.1)
• Goodwill impairment test (Note 4.1)
• Measurement of the Puuilo trademark (Note 4.2)
• Measurement of lease liabilities and right-of-use assets (Note 4.4)
• Restoration obligation (Note 4.5)
• Expected credit loss (Note 5.5)
The accounting estimates related to these areas are described in more detail in each
respective note.
Estimates and judgements are regularly reviewed for accuracy. The estimates and
judgements are based on historical data and other factors, including expectations on future
events that may have a financial impact on the entity and that are assumed to be reasonable
under the circumstances.
Critical judgements in applying accounting policies
The Group's management uses its judgement in the adoption and application of accounting
policies in the financial statements.
The Group performs goodwill impairment testing at least annually. The estimation of the
recoverable amount is based on value-in-use calculations. Preparing these calculations
requires the use of estimates. Although management believes that the assumptions used are
appropriate, the estimated recoverable amounts may differ from the amounts realized in the
future. (Note 4.1)
Lease agreements include both termination and extension options. Management exercises
judgment in determining whether lease termination or extension options will be exercised and
in assessing the lease end date and the lease term. Management also applies judgment in
determining the lease terms of leases that are indefinite. (Note 4.4)
91
2 BUSINESS PERFORMANCE
Note 2.1 Revenue
Accounting policy
Puuilo’s retail chain and online store sell building supplies, tools, HVAC and electrical
accessories, pet food and supplies, car accessories, groceries, household products, garden
supplies, free-time and other accessories as well as services. Net sales are primarily
generated by the sales of goods and recognised when the control of the product is transferred
to the customer, in other words, when the product is relinquished.
The products sold by the Group have a right of return. Based on experience, the quantity of
the returned goods is considered to be insignificant compared to the company’s net sales.
Puuilo sells gift cards to customers. The Company recognises a liability on these prepayments.
The liability is presented in the balance sheet as a separate line item Advances received. The
liability is derecognised, and net sales are recognised when customer purchases goods with
the gift card. After the gift card has been used, Puuilo is considered to have fulfilled its
performance obligations.
Sales are paid mainly in cash or by credit card. Financing offered to consumers is arranged
by an external partner and does not create a performance obligation to Puuilo. Therefore, the
arrangement does not affect the revenue recognition. The payment time for invoiced sales
offered to B2B customers is typically 14 – 30 days. As the payment term is less than 12 months,
the transaction prices are not adjusted with the time value of money.
Puuilo’s contracts with customers do not contain separate performance obligations recognised
at different times. The product warranties offered by the Company are treated as assurance
type warranties, because they do not include additional services to the customer. In most
cases, the Company charges the warranty costs from the supplier.
The line-item other operating income includes lease income, gains on disposals of tangible
assets, and other income that are not directly related to the Company’s ordinary business
operations. Lease income consists of income received from sales locations.
Net sales EUR million 31 Jan 2026 31 Jan 2025 Stores 432.7 374.4 Online store 9.6 9.1 Net sales total 442.3 383.4
92
Contract liabilities (advances received) EUR million 31 Jan 2026 31 Jan 2025 0.5 0.4
Other income EUR million 31 Jan 2026 31 Jan 2025 Lease income 0.5 0.3 Gains on disposal of tangible assets 0.0 0.0 Other 0.2 0.2 Total 0.7 0.5
Note 2.2 Segment information
Due to the nature of Puuilo’s operations, the Group has one reportable operating segment.
The individual stores and the online store are considered to be the distribution channels of
Puuilo’s products and all of them operate under the Puuilo trademark. The Group has operated
only in Finland. New Swedish subsidiary was established during the financial year, but it has
not yet operated. The operations, such as financial administration, IT management, marketing
as well as purchasing and logistics are centralised at the Group level.
The Board of Directors is the highest operating decision-maker at Puuilo, as it is responsible
for resource allocation in the Group and assesses the performance of the operations. Puuilo’s
Board of Directors regularly monitors financial information of the Group. The performance
metric Puuilo uses internally to monitor and assess the operations is the Group-level adjusted
EBITA, which corresponds to profit before finance income and cost, taxes and amortisation
and impairment of intangible rights, adjusted by items affecting comparability.
Due to the large number of customers and the nature of the business, sales to any individual
customer have not exceeded 10 percent in the financial period that ended on 31 January 2026
or the comparison period.
Note 2.3 Expenses
Materials and services and other operating expenses
Accounting policy
Materials and services consist of the acquisition cost of goods sold during the financial period
and the services directly related to the goods sold. Other operating expenses include
expenses other than the cost of goods sold, such as administration costs, property
maintenance costs, marketing and IT costs as well as sales freight and credit card
commissions. Other operating expenses also include potential losses on the disposal of
property, plant and equipment and intangible assets.
Foreign exchange differences arising from purchases are recognised in the appropriate line
item above operating profit.
93
Materials and services EUR million 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 Purchases during the reporting period 280.5 260.8 Changes in inventories -7.4 -22.3 External services 0.3 0.3 Total 273.3 238.8
Other operating expenses EUR million 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 Administration expenses 2.6 1.8 Property maintenance expenses 5.6 4.9 Marketing expenses 8.6 6.8 IT costs 4.5 3.6 Sales freights and credit card fees 2.3 2.1 Other 4.3 3.3 Total 27.9 22.6
Auditors' fees 1 Feb 2025 - 31 1 Feb 2024 - 31 EUR million Jan 2026 Jan 2025 Statutory audit fees 0.1 0.1 Assignments referred to in Chapter 1, Section 1, Subsection 1, Paragraph 2 of the Auditing Act. CSRD assurance 0.1 0.1 ESEF reporting 0.0 0.0 Other services 0.1 - Total 0.2 0.2
Employee benefits
Accounting policy
Short-term benefits
Wages and salaries mainly comprise of fixed monthly salaries and hourly wages paid to
employees. Other indirect employee costs include pension expenses and other social security
expenses. Employee benefits are recognised for work completed up to the balance sheet date
in other liabilities and measured at the amount that is expected to be paid when the liabilities
are settled.
Post-employment benefits
The pension plan of Puuilo is a defined contribution plan. The payments of a defined
contribution pension plan are made to pension insurance companies, after which the Group
does not have any other payment obligations. Payments made on the defined contribution
94
pension plan are recognised as expenses in the income statement for the financial period they
are attributed to.
Employee benefit expenses EUR million 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 Wages and salaries 37.2 32.2 Pension costs 6.3 5.5 Social security costs 1.1 0.8 Total 44.5 38.5
Personnel on average and at the end of reporting period: 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 Number of employees at the end of the period, full-time equivalent 950 849 1,005Personnel on average 1,129
Management remuneration
The management consists of the Board of Directors, the CEO and the other members of the
Management Team. The Board of Directors makes the decision on the remuneration of the
CEO and the other Management Team. The remuneration of the CEO and the Management
Team consists of a fixed monthly salary, customary fringe benefits and a share-based
incentive plan for the key employees (see section below). The CEO or the other members of
the Management Team do not belong to any short-term incentive programme.
The company’s CEO and the other members of the Management Team are entitled to a
statutory pension benefit. The company does not have in place current additional pensions or
collateral arrangements for the CEO and the other members of the Management Team.
The CEO is entitled to statutory pension, and their retirement age is determined in accordance
with the legislation in effect. The period of notice of the CEO is six months and they are entitled
to receive salary for the period of notice. The period of notice of the other members of the
Management Team is three months. The members of the Management Team are entitled to
their respective monthly salaries for the period of notice.
In accordance with the Finnish Limited Liability Companies Act, the decision on the
remuneration payable to the members of the company’s Board of Directors is made by the
shareholders in the Annual General Meeting. The Shareholders’ Nomination Board prepares
a proposal on the remuneration of the Board members to the Annual General Meeting. The
remuneration of the Board of Directors is monetary. The Board of Directors’ remuneration is
based on an annual fee, and the members are not paid separate meeting fees in addition to
this. Travel expenses incurred by the Board meetings are reimbursed in accordance with the
company’s travel expense policy. Pension payments are not included in the remuneration of
the Board of Directors.
95
Remuneration of management EUR million 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 CEO Fixed salaries and fringe benefits 0.2 0.2 Share-based payments 0.0 0.0 Pension costs 0.0 0.0 Total 0.3 0.3 Other members of the Management Team Fixed salaries and fringe benefits 1.0 0.9 Share-based payments 0.4 0.3 Pension costs 0.2 0.2 Total 1.5 1.4 The Board of Directors Mammu Kaario, Chair of the Board from 15 May 2025 0.1 0.0 Susanne Hounsgaard, since 15 May 2025 0.0 - Jens Joller 0.0 0.0 Tuomas Piirtola 0.0 0.0 Markku Tuomaala, since 15 May 2025 0.0 0.0 Total 0.2 0.1 Former Board members Lasse Aho, Chair of the Board until 15 May 2025 0.0 0.1 Bent Holm, until 15 May 2025 0.0 0.0 Anne-Mari Paapio, until 15 May 2025 0.0 0.0 Rasmus Molander, until 15 May 2024 - 0.0 Total 0.0 0.1 Total Management Team and the Board of Directors 2.0 1.8
The share-based payments include the cost effect on the financial year.
Share-based compensation
Accounting principle
The fair value of share-based payments is measured on the day which the share-based
payment plan is agreed upon the counterparties. Fair value of share-based payments is
recognised as an expense over the vesting period. The settlement, if the set targets are met,
is a combination of shares and cash. Share-based payments to be settled in shares are
recognised in equity and the payments to be settled in cash are recognised as a liability. Such
cash-settled share-based payments for which the employer shall deduct, on behalf of the
employee, from the share award such number of shares which covers taxes and tax-like
charges paid in cash, shall be classified in their entirety as equity-settled share-based
payments and thus, are recognised in equity.
96
Accounting estimates and judgements
The number of the shares to be granted are estimated at the end of each reporting period.
The evaluation considers the turnover of persons and other factors affecting the number
of shares to be granted. In addition, the measurement of the fair value of the plan and the
parameters used in the measurement require management judgement.
Share-based incentive plan
Puuilo Board of Directors decides on the share-based incentive plan for key personnel
annually. The aim of the plan is to align the objectives of the shareholders and the key
employees in order to increase the value of the company in the long-term. The plan is intended
to encourage key employees to personally invest in the company’s shares, to steer them
toward achieving the company’s strategic objectives, to retain them at the company, and to
offer them a competitive reward plan that is based on acquiring, earning and accumulating
Puuilo shares.
Each plan includes one performance period, spanning approximately three financial years.
The performance criteria for plans are the Total Shareholder Return of the Puuilo share (TSR),
adjusted EBITA and, for PSP2025–2027, the return on invested capital (ROIC) of the Puuilo
Group. The achievement of the targets set for the performance criteria will determine the
proportion out of the maximum reward that will be paid as reward to participants. The
prerequisite for participation in the plan and receiving reward on the basis of the plan is that a
participant personally has acquired Puuilo shares up to the number determined by the Board
of Directors. Furthermore, payment of reward is based on the participant´s valid employment
or service upon reward payment.
Primarily, the rewards from the plans will be paid partly in the company’s shares and partly in
cash by the end of May following the end of the performance period. The cash proportion is
intended to cover taxes and tax-related costs arising from the reward to the participant. As a
rule, no reward will be paid, if a participant´s employment or service terminates before the
reward payment. The CEO and other members of the Management Team are obliged to keep
the shares paid as a reward for twelve (12) months after the reward payment.
The target group of the plans consisted of the CEO, other members of the Management Team,
Store Managers and other key personnel. The final number of shares will depend on the
participants’ personal share acquisitions and the achievement of the targets set for the
performance criteria.
The total cost of the share plan is recognised over the performance period, which is
approximately 34 months. In the financial year 2025, the impact of the share-based
compensation plans on the profit was EUR 1.1 million (0.8). At the end of the reporting period,
the amount to be recognised as expense for the financial years 2026 − 2028 is estimated at a
total of EUR 1.3 million (1.2). The actual amount may differ from the estimate.
97
Assumptions applied in determining the fair value of share award: Grant date and fair value of share-based payments 2022-2024 2023-2025 2024-2026 2025-2027 Grant date 3.6.2022 12.5.2023 10.5.2024 9.5.2025 Grant date fair value of the share award (EUR) 4.43 4.83 7.58 12.81 Share price at grant date (EUR) 5.34 7.29 10.70 12.85 Performance period start date 3.6.2022 12.5.2023 10.5.2024 9.5.2025 Performance period end date 28.2.2025 31.3.2026 31.3.2027 31.3.2028 Commitment period end date 31.5.2025 31.5.2026 31.5.2027 31.5.2028 Assumptions applied in determining the fair value of share award 2022-2024 2023-2025 2024-2026 2025-2027 Maximum amount of shares to be granted (pcs)* 315.000 678.000 738.000 519.000 Share awards granted - - - 209.968 Changes in the number of shares granted (pcs) -66.862 -8.448 -1.254 -14.752 Exercised during the period (pcs) 211.658 - - - Outstanding at the of the period (pcs) - 243.888 194.997 195.216 Participants at the end of the reporting period 25 27 31 63 Share price at the end of the reporting period - 12.31 12.31 12.31 Assumed fulfilment of the performance criteria - 95 % 63 % 68 % Forfeiture rate - 1 % 3 % 6 % * Gross number of shares netted with the applicable withholding tax. The net amount will be paid in shares.
98
Note 2.4 Income taxes
Accounting policy
Income tax comprises of the current income taxes and deferred taxes for the financial period.
The income tax is recognised in the income statement. The tax effect of the items recognised
directly in equity is, correspondingly, recognised as a part of equity.
The current taxes consist of the expected tax payable on the taxable income for the financial
period, based on the tax rates enacted or in practice enacted by the closing of the accounts
and any taxes payable for the previous year.
Deferred tax is calculated based on temporary differences between the carrying amounts and
the carrying value of assets and liabilities, as well as on confirmed losses to the extent that it
is probable that these can be utilised against future taxable income. Deferred tax is determined
using tax rates (and laws) which have been enacted or in practice enacted by the end of the
financial period and which are expected to apply when the related deferred tax asset is
realised, or the deferred tax liability is settled. Deferred tax is not recognised for temporary
differences related to initial recognition of goodwill.
Deferred tax assets and liabilities are netted to the extent that the company has a legally
enforceable right to net current tax assets and liabilities and when the deferred taxes are
related to the taxes of the same tax authority. Tax assets and tax liabilities based on the
taxable income for the period are netted when the organisation has a legally enforceable right,
and it intends either to settle on a net basis or to realise the asset item and settle the liability
simultaneously.
EUR million 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 Current income tax on profits for the year: 14.3 12.6 Total current income tax 14.3 12.6 Deferred income tax: Change in deferred tax assets -0.3 -0.3 Change in deferred tax liabilities -0.2 -0.2 Total deferred tax -0.5 -0.6 Income tax expense 13.8 12.0
Reconciliation of the tax expense recognised in the consolidated income statement and the
taxes calculated using the Finnish tax rate (20% for all financial periods):
EUR million 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 Profit before tax 69.8 59.9 Tax calculated at domestic tax rate of 20 % 14.0 12.0 Income not subject to tax -0.1 0.0 Expenses not deductible for tax purposes 0.0 0.0 Adjustment in respect of prior years -0.1 - Taxes in income statement 13.8 12.0
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Changes in deferrex taxes
Recognised through profit or 1 Feb loss 31 Jan Reporting period 2025 Deferred tax assets Tangible assets 0.0 0.0 0.0 Leases* 1.0 0.2 1.2 Share-based incentive plan 0.3 0.1 0.4 Total 1.3 0.3 1.6 Reporting period 2025 Deferred tax liabilities Intangible assets 2.5 -0.2 2.3 Tangible assets 0.0 0.0 0.0 Arrangement fees of loans from financial institutions 0.0 0.0 0.0 Total 2.5 -0.2 2.3
Recognised through profit or 1 Feb loss 31 Jan Reporting period 2024 Deferred tax assets Tangible assets 0.0 0.0 0.0 Leases* 0.8 0.2 1.0 Share-based incentive plan 0.1 0.2 0.3 Total 1.0 0.3 1.3 Reporting period 2024 Deferred tax liabilities Intangible assets 2.7 -0.2 2.5 Tangible assets 0.0 0.0 0.0 Arrangement fees of loans from financial institutions 0.0 0.0 0.0 Total 2.7 -0.2 2.5
* Deferred tax assets and deferred tax liabilities arising from lease agreements have been
netted. (Lease liabilities 18,9 (16,8) and Right-of-use assets 17,8 (15,9).
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3 WORKING CAPITAL
Note 3.1 Inventories
Accounting policy
The cost of inventories, i.e. goods intended for retail, corresponds to the purchasing cost of
the product in question determined using the weighted average cost method. The cost of
finished goods comprises all costs of purchase, including direct freight and handling costs.
Inventories are measured at the lower of cost and net realisable value. Net realisable value is
the estimated selling price in the ordinary course of business less the estimated necessary
costs of sales. The cost of inventory does not include borrowing costs.
Key judgements and discretionary solutions – Inventory valuation
The Group regularly reviews inventories for possible obsolescence and turnover, and for
possible reduction of the net realisable value below cost and recognises a write-down of
inventory when necessary. Such reviews require estimates of future demand for products.
Possible changes in these estimates may cause changes in inventory measurement in future
periods.
EUR million 31 Jan 2026 31 Jan 2025 Finished goods 113.1 105.7 Goods in transit 8.4 8.2 Prepayments 1.7 1.5 Total 123.2 115.5
On 31 January 2026, the valuation of inventories included a write-down for obsolescent and
slow-moving products amounted to EUR 1.5 million (1.4).
The cost of goods sold has been presented in Note 2.3.
Note 3.2 Trade and other receivables
Accounting policy
Trade receivables are receivables that consist of products sold to customers in the ordinary
course of business. They fall due within 14 – 30 days and are, therefore, all classified as
current. Trade receivables are initially recognised in the amount of the invoice issued to the
customer. Trade receivables do not include financial components.
The fair value of current trade and other receivables are estimated to equal their book values
due to their short maturities.
Trade and other receivables consist of the following: EUR million 31 Jan 2026 31 Jan 2025 Trade receivables 9.4 5.9 Other receivables 0.0 0.0 Prepaid expenses 2.4 2.2 Total 11.8 8.2
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Aging analysis of trade receivables EUR million 31 Jan 2026 31 Jan 2025 Not overdue 9.1 5.7 Overdue Less than 14 days 0.2 0.1 14-30 days 0.1 0.1 31-60 days 0.0 0.0 Over 60 days 0.1 0.0 Total 9.4 5.9
In the financial period 2025, a credit loss of EUR 0.1 million was recognised in profit or loss
on trade receivables (0.1). The receivables do not involve significant credit risk concentrations,
and the maximum amount of the credit risk corresponds to the carrying amount of the
receivables at the end of the financial period. Trade receivables include an impairment
amounting to EUR 0.0 million (0.0). The expected credit loss risk is not significant due to the
low volume of invoiced sales. Credit risk is described in more detail in Note 5.4.
Material items included in prepayments EUR million 31 Jan 2026 31 Jan 2025 Annual bonuses for purchases 0.9 0.7 Unbilled product reclamation - 0.2 Social security costs 0.3 0.2 Expenses paid in advance 1.2 1.0 Other 0.1 0.2 Total 2.4 2.2
Note 3.3 Trade and other payables
Accounting policy
Trade payables and other payables include goods and services which Puuilo has received
prior to the end of financial period which were not paid by the end of the financial period. The
amounts are unsecured and mainly paid according to the payment term of 30 – 60 days. Trade
and other payables are presented as current liabilities if they are due within 12 months after
the financial period. The carrying amounts of trade payables and other payables are
considered to be the same as their fair values, due to their short-term nature.
Trade and other payables consist of the following:
EUR million 31 Jan 2026 31 Jan 2025 Current Trade payables 31.0 24.0 Advances received 0.5 0.4 Income tax liabilities 1.7 2.8 Other current liabilities 8.2 7.4 Accrued expenses 9.7 7.8 Total current 51.1 42.4
Other current liabilities mainly consist of value added tax liabilities and withholding tax liabilities.
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Material items included in current accrued expenses EUR million 31 Jan 2026 31 Jan 2025 Salary accruals 2.4 2.0 Social security costs 1.7 1.5 Interest expenses 0.7 0.2 Holiday pay expenses 4.9 4.2 Total 9.7 7.8
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4 CAPITAL EMPLOYED
Note 4.1 Goodwill
Accounting policy
Goodwill is measured at acquisition cost less any accumulated impairment losses. Goodwill
is not subject to annual amortisation, because it is considered to have an indefinite useful life.
Goodwill is tested for impairment annually, or more frequently if events or changes in
circumstances indicate that goodwill might be impaired. An impairment loss is recognised for
the amount by which the asset’s carrying amount exceeds its recoverable amount. The
recoverable amount is the higher of an asset item’s fair value less costs of disposal or the
higher of value in use. Often it is not possible to estimate the recoverable amount for an
individual asset. In the case of goodwill, the recoverable amount is determined for the cash-
generating unit to which the goodwill belongs. Impairment loss recognised for goodwill is not
reversed under any circumstances.
Key judgements and estimates in goodwill impairment testing
Puuilo’s goodwill has arisen in connection with the acquisition of Puuilo business in 2015 when
the current Puuilo Group was established. Therefore, the entire goodwill was generated from
a single acquisition covering the entire business of Puuilo. At the end of the financial period,
goodwill stood at EUR 33.5 million (33.5).
Goodwill is tested for impairment annually, or more frequently if events or changes in
circumstances indicate that goodwill was impaired. The recoverable amount of a cash-
generating unit is determined based on the value in use calculation which requires the use of
assumptions. Estimates and judgements are required when determining the components of
the recoverable amount. These components include the discount rate, the terminal growth
rate, net sales and the operating profit. The discount rate reflects the time value of money and
the market risk premiums. The risk premiums reflect risks and uncertainties for which the
future cash flow estimates have not been adjusted. The calculations use cash flow projections
based on financial budgets approved by management covering a five-year period. Cash flows
beyond the five-year period are extrapolated using the estimated growth rate.
Goodwill impairment test
Puuilo’s management has been monitoring goodwill on the Group level from the date the
goodwill was generated. Therefore, for the purpose of annual goodwill impairment testing,
management has discrete and reliable financial information available on the Group level.
Puuilo’s management considers the Group to consist of one cash-generating unit, and
therefore, goodwill is tested for impairment on the Group level.
The key assumptions of the impairment calculations are the estimated growth rate of net sales
and the estimated EBIT level for the period of five years. Cash flows beyond this period have
been extrapolated based on the forecast growth of 2.0% (2.0%). The discount rate used is the
weighted average cost of capital (WACC) after tax. The WACC formula inputs are the risk-
free rate of return, market risk premium, industry-specific beta factor, target capital structure
and borrowing cost. The pre-tax WACC used was 11.3% (11.3%) and post-tax 9.6% (9.5%).
No goodwill impairment has been recognised. In addition, management has estimated that no
reasonably possible change in the key assumption of the impairment testing would have
resulted in a goodwill impairment.
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Note 4.2 Intangible assets
Accounting policy
Intangible assets comprise of the capitalised costs of the Puuilo trademark, other intangible
rights, the ERP system and the other IT systems. Their carrying amount corresponds to cost
less accumulated amortisations and impairment losses. The capitalised cost of the ERP
system consists of invoices from external service providers and license fees as well as Puuilo’s
internal project work related to the implementation of the new ERP system.
Other intangible assets are amortised on a straight-line basis over their estimated useful lives
as follows:
Puuilo trademark 20 years
Software and licences 5 years
Other intangible rights 5 years
The costs related to the maintenance of IT systems and software are recognised in the
financial period during which they incur.
Key judgements and estimates in measurement of the Puuilo trademark
The useful life of the Puuilo trademark is estimated to be 20 years, and it represents the
Group’s assessment of the period over which the trademark is expected to generate cash
flows to the Group. The actual useful life may, however, be shorter or longer, depending on
changes in the operating environment. Any identified changes in the useful life of the Puuilo
trademark are reflected in the amortisation period and the recognition of impairment losses,
when needed.
At each balance sheet date, the management assesses whether there is any indication that
the value of the Puuilo trademark may be impaired. For the Puuilo trademark, changes in the
retail business environment, for example, could be an indication of impairment. For the
trademark, the recoverable amount cannot be estimated on an asset-by-asset basis. As it is
estimated that Puuilo has one cash-generating unit, Puuilo’s trademark, like goodwill, is tested
on the Group level.
The impairment is recognised through profit or loss. The impairment loss recognised earlier
on an asset item is reversed if the recoverable amount of the asset has increased. However,
the maximum reversal is the carrying amount that would have prevailed for the asset before
the impairment was recognised.
105
Other Intangible intangible EUR million Goodwill rights assets Total Cost on 1 February 2025 33.5 26.8 8.5 68.9 Additions 0.0 - 0.4 0.4 Cost on 31 January 2026 33.5 26.8 8.9 69.3 Accumulated amortisation and impairment on 1 February - -12.6 -6.8 -19.4 2025 Amortisation and impairment - -1.6 -1.1 -2.7 Accumulated amortisation and impairment on 31 January - -14.2 -7.9 -22.1 2026 Net carrying amount on 1 February 2025 33.5 14.2 1.7 49.5 Net carrying amount on 31 January 2026 33.5 12.6 1.1 47.2 Other Intangible intangible EUR million Goodwill rights assets Total Cost on 1 February 2024 33.5 25.0 8.1 66.6 Additions - 1.9 0.4 2.3 Cost on 31 January 2025 33.5 26.8 8.5 68.9 Accumulated amortisation and impairment on 1 February - -10.8 -5.9 -16.7 2024 Amortisation and impairment - -1.9 -0.9 -2.7 Accumulated amortisation and impairment on 31 January - -12.6 -6.8 -19.4 2025 Net carrying amount on 1 February 2024 33.5 14.2 2.2 49.9 Net carrying amount on 31 January 2025 33.5 14.2 1.7 49.5
No impairment has been recognized for intangible assets during the financial year 2025 (EUR
0.3 million).
Note 4.3 Property, plant and equipment
Accounting policy
Property, plant and equipment consist mainly of store buildings and related capital
improvement costs, as well as machinery and equipment. They are measured at cost less
accumulated depreciation and impairment losses. The measurement of leased properties is
covered in section 4.4 Leases. Historical cost includes expenditure that is directly attributable
to the acquisition of asset items or internally developed assets and subsequent costs incurred
by the replacement of parts that meet the criteria for asset recognition. Depreciation is
calculated on a straight-line basis over the estimated useful life of the asset or, in the case of
leasehold improvements and leased assets, over the period of the lease or the useful life of
the asset, whichever is shorter.
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The estimated useful lives are as follows:
Capital improvement cost 5 years
Machinery and equipment 3 – 10 years
Leased assets over the lease term
Residual values, depreciation methods and useful lives are reviewed and adjusted, if needed,
at the end of each reporting period. An item of property, plant and equipment is derecognised
upon disposal or when no future financial benefits are expected from its use. Sales gains and
losses are determined by comparing disposal proceeds with the carrying amount of the
disposed asset. Sales gains and losses are recognised within other operating income or
expenses in the income statement in the period on which the disposal occurs. Sales gains are
presented in Note 2.1.
At each balance sheet date, the management assesses whether there is any indication that
the value of property, plant and equipment may be impaired. In the case that there is such
evidence, an assessment is made of the recoverable amount of the asset which is the higher
of the fair value of the asset less the costs of disposal or the value in use. In many cases, the
recoverable amount cannot be estimated on an asset-by-asset basis. In that case, the
recoverable amount is determined for the cash-generating unit to which the asset item belongs.
Due to the nature of Puuilo’s operations, the Group has only one cash-generating unit.
The impairment is recognised through profit or loss. The impairment loss recognised earlier
on an asset item is reversed if the recoverable amount of the asset has increased. However,
the maximum reversal is the carrying amount that would have prevailed for the asset before
the impairment was recognised.
Puuilo’s property, plant and equipment is divided into owned and leased assets as follows.
Leased assets are covered in Note 4.4. Leases.
EUR million 31 Jan 2026 31 Jan 2025 Leased 92.3 82.1 Owned 7.6 5.9 Total 100.0 88.0
Changes in property, plant and equipment.
The figures do not include changes in leases. Leases are covered in Note 4.4.
Machinery Buildings and and Additions structures equipment Total Cost on 1 February 2025 0.8 12.3 13.0 Additions - 3.8 3.8 Disposals - 0.0 0.0 Cost on 31 January 2026 0.8 16.1 16.8 Accumulated depreciation and impairment on 1 February 2025 -0.8 -6.4 -7.2 Depreciation and impairment - -2.0 -2.0 Accumulated depreciation and impairment on 31 January 2026 -0.8 -8.5 -9.2 Net carrying amount on 1 February 2025 0.0 5.9 5.9 Net carrying amount on 31 January 2026 0.0 7.6 7.6
107
Machinery Buildings and and Additions structures equipment Total Cost on 1 February 2024 0.8 8.9 9.6 Additions - 3.5 3.5 Disposals - 0.0 0.0 Cost on 31 January 2025 0.8 12.3 13.0 Accumulated depreciation and impairment on 1 February 2024 -0.8 -5.0 -5.7 Depreciation and impairment - -1.5 -1.5 Accumulated depreciation and impairment on 31 January 2025 -0.8 -6.4 -7.2 Net carrying amount on 1 February 2024 0.0 3.9 3.9 Net carrying amount on 31 January 2025 0.0 5.9 5.9
No impairment was recognised on property, plant and equipment during the financial period
or the comparison period.
Depreciation, amortisation, and impairment EUR million 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 Depreciation, amortization and impairment by asset class Intangible rights 1.6 1.9 Other intangible assets 1.1 0.9 Machinery and equipment 2.0 1.5 Total 4.7 4.2 Right-of-use assets 17.3 14.8 Depreciation, amortization and impairment total 22.1 19.0
Depreciation of right-of-use assets is covered in greater detail in Note 4.4.
Note 4.4 Leases
Accounting policy
Puuilo’s leases mainly consist of store building and office leases, as well as machinery and
equipment used in the business operations and IT leases. At the inception of the contract, the
Group makes an assessment of whether the contract is a lease or contains a lease. A contract
is deemed to be a lease if it conveys the right to control the use of an identified asset for a
period of time in exchange for consideration. At the inception of a lease, Group recognises a
right-of-use asset as well as a lease liability. Puuilo has not used the exemptions for short-
term leases (lease term less than 12 months) or low value leases permitted by IFRS 16.
108
Lease liability is measured at the present value of those lease payments that have not been
paid at the lease commencement date. The lease payments are discounted at the interest rate
implicit in the lease if the rate in question is readily determinable. If the rate is not readily
determinable, the Company’s incremental borrowing rate will be used. Puuilo has used an
interest rate implicit in the lease as the discount rate in machinery and equipment leases and
the incremental borrowing rate in the valuation of the store and office leases. The discount
rates vary between 3.0% and 5.5%.
The lease term used in the measurement of lease liability is the non-cancellable period of a
lease. The lease term includes a period covered by an option to extend and/or to terminate
the lease if it is reasonably certain that the lessee will use the extension option or does not
use the option to terminate. The lease term of the leases valid until further notice is based on
the probable lease term as estimated by the management.
Each lease payment is allocated between amortisation of the lease liability and finance cost.
The finance costs are recognised at profit or loss over the lease period so as to produce a
constant periodic rate of interest on the remaining balance of the liability for each period.
The right-of-use asset is measured at cost at the commencement date of the lease. The cost
comprises of the amount of the initial measurement of the lease liability at the commencement
date, any lease payments at or before the lease commencement date, as well as any
restoration costs. Lease payments for store and office leases are mainly tied to the cost-of-
living index. Lease liability is adjusted when the index changes. Right-of-use assets are
adjusted with the items resulting from the remeasurement of the lease liability.
The right-of-use assets based on leases are depreciated on a straight-line basis over the
shorter of the lease term or their estimated useful lives. The depreciations are made starting
from the date the asset item was commissioned. The estimated useful lives are as follows:
Machinery and equipment 3 – 5 years
Stores 5 – 10 years
Offices 1 – 5 years
Puuilo has asset restoration obligations related to leased store buildings. Puuilo has
recognised a provision for estimated restoration costs. More information is provided in Note
4.5.
Key judgements and estimates applied in accounting for the leases
When determining the lease term, the management must consider all facts and circumstances
that create an economic incentive to exercise an extension option. Judgement is also used in
determining the lease term for leases that are valid until further notice. Extension options are
included in the lease term only if it is reasonably certain that the option will be used. The lease
term of the leases valid until further notice is based on the probable lease term as estimated
by the management.
The Group leases various properties as well as machinery and equipment. Leases of store
properties are typically made for fixed periods of 5 to 10 years but may also include extension
options. The management has assessed the use of each extension option and if the use of an
option has been assessed to be reasonably certain, the option has been included in the lease
term. The assessment of the use of extension options is affected by, among other things, the
length of the original lease, the location and the condition of the property and the amount of
109
rent. Lease terms are negotiated on an individual basis and they can include other terms and
conditions.
The management has used judgment when determining the appropriate incremental
borrowing rate to be applied in the calculation of the lease liability of property leases.
Right-of-use assets EUR million 31 Jan 2026 31 Jan 2025 Premises and facilities 90.4 80.6 Machinery and equipment 1.9 1.6 Total 92.3 82.1
Lease liabilities EUR million 31 Jan 2026 31 Jan 2025 Non-current 77.3 68.1 Current 16.2 15.0 Total 93.5 83.1
The additions to the right-of-use assets (new leases) during the financial period that ended
were EUR 15.8 million (20.9).
Maturity analysis, contractual discounted cash flows EUR million 31 Jan 2026 31 Jan 2025 Less than one year 16.2 14.8 From one to five years 53.4 47.3 Over five years 24.0 21.1 Total 93.5 83.1
Maturity analysis, contractual undiscounted cash flows EUR million 31 Jan 2026 31 Jan 2025 Less than one year 19.8 17.7 From one to five years 61.8 54.1 Over five years 25.9 22.5 Total 107.5 94.3
Amounts recognized in the statement of profit or loss
Depreciation charge of the right-of-use asset 1 Feb 2025 - 31 1 Feb 2024 - 31 Jan EUR million Jan 2026 2025 Premises and facilities 16.4 13.9 Machinery and equipment 1.0 0.9 Total 17.3 14.8 Interest expenses included in the finance cost 3.4 2.9
Cash flow Total cash outflow for leases 18.8 16.0
110
The lease commitments for contracts taking effect in the future is presented in Appendix 5.7.
Note 4.5 Provisions
Accounting policy
A provision is recognised when the Group has a legal or actual obligation as a result of past
events, and it is probable that a cash outflow will be required to settle the obligation and the
amount can be estimated reliably. Provisions are not recognised on any estimated future
operating losses. The interest expense arising from the discounting of provisions to their
current value is recognised in financial expenses. Provisions are allocated between amounts
expected to be realised within 12 months of the balance sheet date (current) and amounts
expected to be realised later (non-current).
Key judgements and estimates applied in restoration obligation
Puuilo’s provisions consist of restoration provisions of leased store premises. The provisions
include the estimated costs of restoring the store to its original state (asset retirement
obligation). A corresponding asset item of an amount equivalent to the provision is recognised
in property, plant and equipment and depreciated during the useful life of the asset. The
provision and the corresponding asset item are recognised in the balance sheet at the
beginning of the lease term, in other words, at the same time as the lease is recognised in the
balance sheet.
The provisions for restoration obligations related to stores are determined on the basis of the
net present value of Puuilo’s total estimated unavoidable dismantling costs. The estimates are
based on the future estimated cost level, taking into account the effect of inflation, the cost
development and discounting. Assumptions are also used when assessing the time periods
for which restoration costs are incurred. Because the actual outflows can differ from the
estimates due to changes in technology, prices and conditions and can take place after many
years in the future, the carrying amounts of the provisions are regularly reviewed and adjusted
to take into account any such changes.
The management estimates that the restoration obligations will be realised within 2 – 10 years.
The changes in the restoration provisions during the financial year:
Provisions
EUR million On 1 February 2025 1.0 Additions 0.1 Amounts charged against provision - On 31 January 2026 1.1 of which Current - Non-current 1.1 Total 1.1
111
EUR million On 1 February 2024 0.9 Additions 0.2 Amounts charged against provision 0.0 On 31 January 2025 1.0 of which Current - Non-current 1.0 Total 1.0
112
5 CAPITAL STRUCTURE AND FINANCING
Note 5.1 Capital management and net debt
The Group’s objective for the capital management is to safeguard the ability to continue as a
going concern, so that it can continue to provide returns for the shareholders and benefits for
other stakeholders and maintain an optimal capital structure in order to reduce the cost of
capital. The capital structure is regularly assessed by the Board of Directors when the Board
monitors equity and the level of net debt.
Interest-bearing net debt is calculated based on the consolidated balance sheet as follows:
EUR million 31 Jan 2026 31 Jan 2025 Non-current financial liabilities Loans from financial institutions 69.9 50.0 Lease liabilities 77.3 68.1 Total non-current financial liabilities 147.2 118.1 Current financial liabilities Lease liabilities 16.2 15.0 Total current financial liabilities 16.2 15.0 Total financial liabilities 163.4 133.1 Cash and cash equivalents 33.0 18.3 Net debt 130.4 114.8
Changes in net debt
Non-cash changes Cash flows from Net debt 1 financing New lease Other Net debt 31 EUR million Feb. 2025 activities agreements changes Jan. 2026 Cash and cash equivalents 18.3 14.6 33.0 Proceeds from loans from financial institutions 70.0 70.0 Repayments of loans from financial institutions -50.0 -50.0 Non-cash changes 50.0 20.0 -0.1 69.9 Lease liabilities 83.1 -15.4 15.8 10.0 93.5 Net debt 114.8 19.2 15.8 9.9 130.4
113
Non-cash changes Cash flows from Net debt 1 financing New lease Other Net debt 31 EUR million Feb. 2024 activities agreements changes Jan. 2025 Cash and cash equivalents 21.5 -3.1 18.3 Repayments of loans from financial institutions - Loans from financial institutions 50.0 0.0 50.0 Lease liabilities 72.8 -13.1 20.9 2.5 83.1 Net debt 101.3 -16.2 20.9 2.6 114.8
Other changes include non-cash flow changes and interest payments, which are presented
as operating cash flows in the statement of cash flows.
During the financial year the Group has signed a EUR 100 million financing agreement. The
loan matures in 2028 and includes two 12-month extension options. The new financing
agreement replaces the previous agreement signed in 2021, which would have matured in
2026. The financing agreement includes a total of EUR 70 million in term loan arrangements
and a EUR 30 million revolving credit facility (RCF). The terms of the loan arrangement include
one covenant: net debt/EBITDA ratio.
The financing agreement includes standard covenants and terms and conditions concerning
situations in which the loan would mature. The agreement terms and conditions concerning
the financial covenants measure the company’s indebtedness by means of the net debt to
EBITDA ratio. In addition, the interest rate margin of the financing agreement is tied to the
ratio of net debt and EBITDA. The loans under the financing agreement are unsecured.
Compliance with the covenants and loan terms and conditions is monitored as part of the
Group’s financial reporting, and they are reported to the Board of Directors monthly and to the
lenders on a quarterly basis. No covenants were breached during the financial period or the
comparison period, and the Group has no difficulty in meeting them.
The financing agreement made during the financial year also includes EUR 30 million
uncommitted additional financing option (accordion option). However, this accordion option
requires a separate financing decision from the bank.
Note 5.2 Equity
Puuilo’s equity consists of the share capital, the reserve for invested unrestricted equity, and
retained earnings. All of the company’s shares are presented as share capital. If the company
purchases its own shares, the purchase will be deducted from equity.
Puuilo Plc’s share capital is EUR 80,000 (EUR 80,000). The company has one type of shares.
At the end of the financial year, the number of shares was 84,776,953. Each share conveys
one vote in the general meeting and a similar dividend. The shares do not have a nominal
value.
The reserve of invested non-restricted equity, EUR 29.0 million (29.0), includes the share
subscription prices to the extent not designated to be included in share capital.
114
Puuilo Group held 428,519 (555,000) treasury shares on the balance sheet date of 31 January
2024. The acquisition cost of the shares, approximately EUR 2.6 million (3.2), have been
deducted from retained earnings in equity.
In the financial period, the total amount of dividends distributed was EUR 59.0 million (EUR
0.70 per share). In the comparison period 2024, the total amount of dividends distributed was
EUR 32.0 million (EUR 0.38 per share). The dividend proposed by the Board of Directors to
the Annual General Meeting has not been deducted from equity. Instead, dividends are
recognised on the basis of the resolution by the Annual General Meeting.
Note 5.3 Earnings per share
Accounting policy
The undiluted earnings per share was calculated by dividing the profit in accordance with the
Group’s income statement by the weighted average of the issued shares. The earnings per
share adjusted by the dilution effect is calculated otherwise in the same manner, but the
weighted average takes into account the diluting effect caused by the conversion of diluting
potential shares to shares.
The earnings per share and the diluted earnings per share are shown in the following table:
1 Feb 2025 - 1 Feb 2024 - EUR million 31 Jan 2026 31 Jan 2025 Basic earnings per share Profit attributable to the owners of the Company 56.0 47.9 Profit used to determine basic earnings per share 56.0 47.9 Weighted average number of shares outstanding during the period 84,323,484 84,221,953 Basic earnings per share (EUR) 0.66 0.57
Diluted earnings per share Profit used to determine diluted earnings per share 56.0 47.9 Weighted average number of shares outstanding during the period 84,638,964 84,573,601 Diluted earnings per share (EUR) 0.66 0.57
Note 5.4 Financial risk management
The Group’s operation exposes it to a variety of financial risks: a foreign exchange risk, cash
flow interest rate risk, credit risk and liquidity risk. The Group’s financial risk management
strives to ensure liquidity and minimize potential adverse effects of market fluctuations and
unpredictability to Group’s financial performance, balance sheet and cash flows.
The Board of Directors is responsible for the principles for overall risk management. The
Management Team is responsible for the practical implementation of financial risk
management. This includes the identification and assessment of risks and the tools needed
to protect from them.
Foreign exchange risk
Puuilo is exposed to exchange rate risks through its purchases of goods. Unfavourable
changes in foreign exchange rates may increase the cost of products purchased in currencies
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other than euro, and Puuilo may not be able to pass all such costs on to sales prices. Puuilo’s
main foreign currency is the US dollar. In the financial period 2025, approximately 88% of
Puuilo’s purchases were made in euros and approximately 12% in US dollars (84% and 16%,
respectively, in the financial period 2024). Puuilo does not hedge its purchases in dollars. The
table below shows Puuilo’s transaction position at the balance sheet date and the sensitivity
analysis. The sensitivity analysis of the transaction position shows the impact of the Group’s
order book on profit or loss before taxes if the exchange rate change was +/-10%.
EUR million 31 Jan 2026 31 Jan 2025 Transaction exposure 11.8 9.3 Open exposure 11.8 9.3 Change +10% -1.1 -0.8 Change -10% 1.3 1.0
Interest rate risk
The Group’s loans from financial institutions have variable interest rates, which exposes the
Group’s cash flow to interest rate risk. On 31 January 2026, the carrying amount of these
loans was EUR 69.9 million (50.0). The Group has not used interest rate hedging, but the
interest rate risk has been mitigated, if necessary, by using cash assets to make additional
repayments in order to manage interest expenses.
The Group’s exposure to interest rate risk is presented in the table below:
EUR million 31 Jan 2026 31 Jan 2025 Fixed interest rate Lease liabilities 93.5 83.1 Floating interest rate Loans from financial institutions 69.9 50.0 Floating interest rate position, total 69.9 50.0
If interest rates had been 1.0 percentage points higher and all other factors were unchanged,
the post-tax profit for the financial period would have been EUR 0.6 million (0.4) lower as a
result of interest expenses of the floating rate interest-bearing liabilities. If interest rates had
been 1.0 percentage points lower and all other factors were unchanged, the post-tax profit for
the financial period would have been EUR 0.6 million (0.4) higher as a result of interest
expenses of the floating rate interest-bearing liabilities. The sensitivity analysis is based on
the risk position at the end of each financial period.
Credit risk
The Group’s credit risk consists of credit risk related to business risks and the counterparty
risk of other financial instruments. The majority of the Group’s sales are cash transactions,
sales on credit is possible only to B2B customers. Trade receivables from B2B customers do
not include a credit risk concentration, as the Group’s customer base is widespread, and no
customer or customer group is dominant from the Group’s perspective. Credit losses affecting
the result for the financial periods presented in these financial statements were immaterial in
monetary terms. Counterparty risk related to cash and cash equivalents is managed by
116
depositing cash and cash equivalents in large Nordic banks with solid credit ratings. The
Group’s cash and cash equivalents are fully available to the Group.
The maximum amount of the Group’s credit losses corresponds to the carrying amount of the
financial assets at the end of the financial period. The information is presented in Note 5.5.
Liquidity risk
Puuilo’s CFO monitors the Group’s liquidity situation and reports regularly to the Board of
Directors and CEO to ensure that the Group has sufficient cash for business needs and loan
management. The Group follows the financing required in business operations by analysing
the operating cash flow forecasts and inventory turnover in order to have sufficient liquid
assets to fund the operations and to repay loans from the financial institutions at maturity.
At the end of the financial period, the Group’s cash and cash equivalents totalled EUR 33.0
million (18.3). At the end of the financial period, the Group’s trade receivables totalled EUR
9.4 million (5.9), including bank and credit card receivables. The Group had a credit limit of
EUR 30.0 million at the end of the financial year (revolving credit facility). The Group has not
used the revolving credit facility during the financial year or the comparison period.
In addition, during the financial year, Puuilo agreed with a financial institution on an
uncommitted additional financing facility of EUR 30 million (accordion option). However, this
accordion option requires a separate financing decision from the bank. I
n addition to financial assets and liabilities, Puuilo’s liquidity is based on cash flow from
operations and management of the change in net working capital. The net working capital is
mainly affected by the inventory turnover and trade payables. Puuilo’s net cash flow generated
from operating activities was EUR 74.9 million (49.1) in the 2025 financial period. A significant
portion of Puuilo’s net sales is generated from sales paid with cash or with credit cards. In
addition, the company has some trade receivables mainly from sales to corporate customers,
as described above. Puuilo has a strong cash flow generated from the operating activities,
which it plans to use to finance the payments described in the table below. If necessary, Puuilo
can also utilise its unused revolving credit facility in liquidity management.
The table below shows the Group’s financial liabilities by maturity group based on the
remaining maturity at the balance sheet date. The amounts presented are contractual,
undiscounted cash flows.
Contractual Under 1 Over 5 Carrying 1-2 years 2-5 years undiscounted cash year years value flows EUR million 31 Jan 2026 Loans from financial institutions 2.1 2.1 70.3 74.6 69.9 Lease liabilities 19.8 18.8 43.0 25.9 107.5 93.5 Trade payables 31.0 31.0 31.0 Other payables 0.7 0.7 0.7 Total 53.6 20.9 113.4 25.9 213.8 195.1
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Contractual Under 1 Over 5 Carrying 1-2 years 2-5 years undiscounted cash year years value flows EUR million 31 Jan 2025 Loans from financial institutions 1.9 50.9 - 52.8 50.0 Lease liabilities 17.7 16.7 37.4 22.5 94.3 83.1 Trade payables 24.0 24.0 24.0 Other payables 0.2 0.2 0.2 Total 43.8 67.7 37.4 22.5 171.3 157.3
Other payables do not include advances received, income tax liabilities, value-added tax
liabilities as well as liabilities related to salaries and social security expenses, as they are not
classified as financial liabilities. Other payables in the table include accrued interest related to
the loans from financial institutions. Other accrued expenses are not classified as financial
liabilities and are not included in the table. Other liabilities are presented in Note 3.3.
Note 5.5 Financial assets and liabilities
Accounting policy
Financial assets
The Group’s financial assets include trade receivables, other financial receivables and cash
and cash equivalents.
The Group applies a simplified approach in accordance with IFRS 9 that takes into account
the expected life of receivables for all trade receivables and contractual receivables. The
Group management estimates that the credit risk of trade receivables is insignificant. The
IFRS 9 impairment requirement also applies to cash, but the impairment loss is insignificant.
Trade receivables are written down if the Group does not have a reasonable expectation of
recovery. Indicators that there is no reasonable expectation of recovery include, amongst
others, include the debtor’s non-commitment to a repayment plan.
Impairment losses on trade receivables are presented as a net amount in operating profit.
Subsequent payments on previously recognised credit losses are recognised in the same line
item.
Cash and cash equivalents include cash on hand as well as bank deposits. Financial assets
are held to collect contractual cash flows. The contractual cash flows consist exclusively of
principal and interest on the principal amount outstanding. Financial assets are initially
measured at fair value and subsequently measured at amortised cost. Impairment losses are
presented in other operating expenses in the statement of comprehensive income.
Financial assets are derecognised when the rights to receive cash flows from the financial
asset have expired or the item included in the financial assets has been transferred from the
Group, and when the risks related to ownership have been transferred from the Group.
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Cash and cash equivalents EUR million 31 Jan 2026 31 Jan 2025 Cash in hand and at bank 33.0 18.3 Total 33.0 18.3
Key judgements and estimates applied in accounting for credit losses
Trade receivables for the financial period or the comparison period did not include material
overdue receivables. The amount of trade receivables and impairment losses recognised on
them has been insignificant. In addition, the amount of the company’s trade receivables in
relation to the volume of business has been low, as a significant portion of the company’s
sales is paid in the company’s stores at the time of purchase. Due to the above, the Group
management has exercised judgement and estimated that the credit loss risk of trade
receivables is not considered to be essential and has not recognised the expected credit
losses in the financial statements.
Financial liabilities
The financial liabilities include loans from financial institutions, accrued interests, lease
liabilities and trade payables.
Financial liabilities are initially recognised at their fair value less the transaction costs incurred.
After the initial recognition, financial liabilities are measured at amortised cost using the
effective interest rate method.
A financial liability is classified as current when it will be settled within 12 months from the
reporting date or when the Group does not have an unconditional right to defer settlement of
the liability to more than 12 months after the reporting date. Financial liabilities which fall due
within 12 months after reporting date are classified as current, even if the long-term refinancing
agreement has been completed after the reporting date and prior to the approval of the
financial statements. If a covenant is breached on or before the reporting date with the effect
that the liability becomes payable on demand, the liability is also classified as current. If
liabilities are classified as current due to a covenant breach, they are presented in the amount
to be redeemed.
A financial liability is derecognised from the balance sheet when it is discharged, cancelled or
it expires.
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Financial assets and liabilities by valuation category
Measured at Fair value through Carrying EUR million, 31 Jan 2026 amortised cost profit or loss amount Current financial assets 9.4 9.4 Trade receivables Other financial assets 1.0 1.0 33.0 33.0 Cash and cash equivalents 43.3 43.3 Total financial assets Non-current financial liabilities 69.9 69.9 Loans from financial institutions Lease liabilities 77.3 77.3 Current financial liabilities Lease liabilities 16.2 16.2 Trade payables 31.0 31.0 Accrued interests 0.7 0.7 Total financial liabilities 195.1 195.1
Measured at Fair value through Carrying EUR million, 31 Jan 2025 amortised cost profit or loss amount Current financial assets Trade receivables 5.9 5.9 Other financial assets 0.9 0.9 Cash and cash equivalents 18.3 18.3 Total financial assets 25.2 25.2 Non-current financial liabilities Loans from financial institutions 50.0 50.0 Lease liabilities 68.1 68.1 Current financial liabilities Lease liabilities 15.0 15.0 Trade payables 24.0 24.0 Accrued interests 0.2 0.2 Total financial liabilities 157.3 157.3
Other financial assets include receivables related to annual discounts on purchases and
product complaints to be invoiced from suppliers. Other prepaid expenses are not classified
as financial assets and are therefore not presented in the table. Prepaid expenses are
presented in more detail in Note 3.2. Accrued liabilities include only accrued interest since
other accrued liabilities are not classified as financial liabilities. Other liabilities are presented
in more detail in Note 3.3.
The carrying amounts of current items are estimated to substantially correspond to their fair
values. The fair values of the loans from financial institutions are as follows:
120
EUR million Carrying amount Fair value 31 Jan 2026 69.9 69.9 31 Jan 2025 50.0 50.0
The fair values of loans from financial institutions are based on cash flows discounted at the
interest rate on the reporting date. Loans from financial institutions are classified in level 2.
Note 5.6 Finance income and costs
Accounting policy
Finance costs consist of interest expenses on the loans from financial institutions, interest
expenses on lease liabilities and other finance costs.
Transaction costs related to loans from financial institutions are recognised in the income
statement using the effective interest method. The effective interest rate is the rate that exactly
discounts estimated future cash payments through the expected life of the loan to the present
value. The calculation includes all fees and transaction costs paid by the parties to the contract.
Finance income EUR million 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 Interest income 0.5 0.6 Total finance income 0.5 0.6
Finance costs EUR million 1 Feb 2025 - 31 Jan 2026 1 Feb 2024 - 31 Jan 2025 Interest expenses on loans from financial institutions 1.8 2.5 Interest expenses on lease liabilities 3.4 2.9 Other financial costs 0.7 0.4 Total finance costs 5.9 5.8
121
Note 5.7 Contingent liabilities
Accounting policy
Contingent liability is a liability that arises from past events and whose existence will be
confirmed in the future, or an existing obligation that is not recognised in the balance sheet
because its realisation is not probable, or the amount of the obligation cannot be determined
with sufficient reliability.
Contingent liabilities are not recognised in the balance sheet. They are presented as
disclosures unless the possibility of the realisation the liability is remote.
Puuilo’s contingent liabilities consist of lease liabilities for the leases with the lease term
beginning after the end of the reporting period and are therefore not recognised in the balance
sheet. The Group’s financial institution loan is unsecured.
Puuilo has committed to leases, the lease term of which will begin in the future, and which are,
therefore, not recognised in the balance sheet as right-of-use assets or lease liabilities. The
minimum lease payments under these agreements are shown in the table below:
EUR million 31 Jan 2026 31 Jan 2025 Liability for lease agreements that will enter into force in the future 43.1 27.9
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6 OTHER NOTES
Note 6.1 Related parties
Puuilo’s related parties include key personnel of the Puuilo Group, their close family members
and companies controlled by them. The key personnel include the members of the Board of
Directors, the CEO, and other members of the Management Team.
The Puuilo Group purchases some products it sells in its stores from companies owned by
related parties. These companies manufacture products that are part of Puuilo’s product
assortment. In addition, the company leases business premises from related parties. The
Group’s lease liabilities to related parties include the present value of the future lease
payments of the above-mentioned leased premises. Transactions with related parties have
taken place at market price and on normal terms. All Puuilo employees are entitled to the
ordinary personnel discount in Puuilo stores. A related party employed by Puuilo is entitled to
this discount. This information has not been presented as related party transactions.
The following transactions were carried out with related parties:
Income statement 1 Feb 2025 - 31 Jan 1 Feb 2024 - 31 Jan EUR million 2026 2025 Net sales 0.0 0.0 Materials and services 4.2 1.0 Rent and other operating expenses 0.2 0.1
Balance sheet EUR million 31 Jan 2026 31 Jan 2025 Sales receivables 0.0 - Trade payables 0.3 - Lease liabilities (IFRS 16) 0.7 -
Shareholding 31 Jan 2026 31 Jan 2025 The Board of Directors 3,818,869 32,891 CEO 213,499 201,220 Other members of the Management Team 179,226 431,474
The remuneration of the management team is presented in Note 2.3.
Note 6.2 Group structure and consolidation
The consolidated financial statement of Puuilo Group includes Puuilo Plc (parent company)
and its wholly owned subsidiary, Puuilo Tavaratalot Oy. Both companies are headquartered
in Helsinki. During the financial year, a new Swedish subsidiary, Puuilo Varuhus AB, was
established. Registered office of the company is in Stockholm. The company has not had any
business operations in financial period 2025.
123
Accounting policy
Subsidiaries
The subsidiaries are fully consolidated from the date of acquisition, i.e. from the date on which
control is transferred to the Group until the date that control ceases. Puuilo has control over
an entity when Puuilo is exposed to, or entitled to, the company’s variable returns and has the
ability to influence those returns by prescribing the principles of the entity’s operations.
The Consolidated Financial Statements have been prepared using the acquisition method.
Intercompany transactions, receivables and liabilities and unrealised gains are eliminated.
Unrealised losses are also eliminated unless the transaction indicates an impairment of the
asset transferred.
Note 6.3 Significant events after the end of the reporting period
Flagging notification
On 17 March 2026 Puuilo received a notification in accordance with the Chapter 9, Section 5
of the Finnish Securities Market Act from The Capital Group Companies, Inc. According to the
notification, The Capital Group Companies, Inc. indirect holdings in shares and votes of the
Company fell below the flagging threshold of 5 percent and was 4.98% after the transaction.
(Stock exchange release 18 March 2026)
Proposals of the Shareholders' Nomination Board
The Shareholders’ Nomination Board of Puuilo Plc proposes to the Annual General Meeting
that the number of the members of the Board of Directors will be five (previously five). The
Nomination Board proposes that current members of the Board of Directors, Susanne
Hounsgaard, Jens Joller, Mammu Kaario, Tuomas Piirtola, and Markku Tuomaala, be re-
elected. All proposed persons are independent of the company and its major shareholders
except Jens Joller who is independent of the company, but dependent of the major
shareholder. The Nomination Board proposes to the Annual General Meeting that Mammu
Kaario be re-elected as the Chair of the Board of Directors.
The Nomination Board proposes that the remunerations of the members of the Board of
Directors are as follows:
-€70.000 (earlier €65.000) to the Chair of the Board of Directors as annual remuneration
-€37.000 (earlier €33.000) to the other members of the Board of Directors as annual
remuneration
-In addition, the Chair of the Audit Committee will be paid €7.000 (earlier €6.000) as annual
remuneration and other members of the Audit Committee €4.000 (earlier €3.000) as annual
remuneration
All remunerations will be paid in cash. (Stock exchange release 20 March 2026)
Repurchase of own shares
On 25 March 2026, Puuilo announced that the company’s Board of Directors had decided to
use the authorization given by the Annual General Meeting held on 15 May 2025 to repurchase
the company’s own shares. The repurchases started on 27 March 2026 and ended on 9 April
2026. During this period, Puuilo repurchased 385,000 shares, corresponding to approximately
124
0.45% of the total number of the company’s shares, which is 84,776,953. The average
purchase price per share was € 12.798540 and the total amount € 4,927,438.
The repurchased shares are to be used primarily as part of the reward payments under the
share-based incentive plans for key personnel. The shares were repurchased otherwise than
in proportion to the shareholdings of the shareholders at the market price prevailing at the time
of acquisition in public trading on Nasdaq Helsinki Ltd using the company's unrestricted equity.
Following the repurchases, the company holds a total of 813,519 shares. (Stock exchange
release 9 April 2026)
Flagging notification
Puuilo Plc has received a notification on 9 April 2026 in accordance with Chapter 9, Section 5
of the Finnish Securities Markets Act. According to the notification, JPMorgan Chase & Co.’s
total indirect holdings in shares and votes of the Company have increased above the threshold
of 5% on 7 April 2026 and is now 5.05%. (Stock exchange release 10 April 2026)
Note 6.4 New and upcoming accounting standards
IFRS 18 Presentation and Disclosure in Financial Statements, effective for reporting periods
beginning on or after 1 January 2027, will replace the standard IAS 1 Presentation of Financial
Statements. The standard will have an impact on the presentation of primary financial
statements and the accompanying notes of Puuilo group financial statements.
125
Parent company Financial Statements
Parent company’s income statement
EUR
1 Feb 2025 - 31 Jan
2026
1 Feb 2024 - 31 Jan 2025
Net sales
1,468,258.91
1,468,258.80
Other operating income
-
2,401.63
Personnel expenses
Wages and salaries
-1,837,850.13
1,293,519.16
Social security costs
Pension costs
-198,404.91
-205,597.83
Other social security costs
-21,812.92
-23,458.61
Personnel expenses, total
-2,058,067.96
-1,522,575.60
Other operating expenses
-1,458,122.31
-725,922.20
Operating profit (loss)
-2,047,931.36
-777,837.37
Financial income and expenses
Other interest and financial income
From others
88,364.80
43,838.80
Interest expenses and other financial expenses
To others
-1,648,403.57
-1,702,875.87
Financial income and expenses, total
-1,560,038.77
-1,659,037.07
Profit (loss) before appropriations and taxes
-3,607,970.13
-2,436,874.44
Appropriations
Group contribution
Group contributions received
75,448,822.33
65,184,329.05
Appropriations, total
75,448,822.33
65,184,329.05
Income taxes
Taxes for the financial period
-14,266,472.32
-12,571,443.48
Income taxes, total
-14,266,472.32
-12,571,443.48
Profit (loss) for the financial period
57,574,379.88
50,176,011.13
126
Parent company’s balance sheet
EUR
31 Jan 2026
31 Jan 2025
Assets
Non-current assets
Investments
Shares in Group companies
73,156,725.91
73,156,725.91
Investments total
73,156,725.91
73,156,725.91
Non-current assets total
73,156,725.91
73,156,725.91
Current assets
Receivables
Current
Receivables from Group companies
102,028,456.90
93,772,875.73
Other receivables
14,080.21
0.00
Accrued income
92,382.66
94,991.59
Current total
102,134,919.77
93,867,867.32
Cash at hand and in banks
10,616,078.06
1,301,625.22
Current assets total
112,750,997.83
95,169,492.54
Assets total
185,907,723.74
168,326,218.45
EUR
31 Jan 2026
31 Jan 2025
Equity and liabilities
Equity
Share capital
80,000.00
80,000.00
Reserve for invested unrestricted equity
30,000,004.98
30,000,004.98
Profit (loss) for previous financial periods
45,580,806.50
54,448,699.17
Profit (loss) for the financial period
57,574,379.88
50,176,011.13
Equity total
133,235,191.36
134,704,715.28
Liabilities
Non-current liabilities
Loans from financial institutions
50,000,000.00
30,000,000.00
Non-current liabilities total
50,000,000.00
30,000,000.00
Current liabilities
Trade payables
108,142.01
70,478.70
Liabilities to Group companies
-
211,919.89
Other liabilities
92,477.42
136,326.41
Accrued expenses
2,471,912.95
3,202,778.17
Current liabilities total
2,672,532.38
3,621,503.17
Liabilities total
52,672,532.38
33,621,503.17
Equity and liabilities total
185,907,723.74
168,326,218.45
127
Parent company’s cash flow statement
EUR
1 Feb 2025 -
31 Jan 2026
1 Feb 2024 -
31 Jan 2025
Cash flow from operating activities:
Profit (loss) before appropriations and taxes
-3,607,970.13
-2,436,874.44
Adjustments:
Financial income and expenses
1,560,038.77
1,659,037.07
Cash flow before change in working capital
-2,047,931.36
-777,837.37
Change in working capital:
Increase(-)/decrease(+) of non-interest-bearing current accounts receivable
19,729.22
12,234.02
Increase(-)/decrease(+) of non-interest-bearing current liabilities
153,000.35
76,040.68
Cash flow from operating activities before financial items and taxes
-1,875,201.79
-689,562.67
Paid interest and payments from other financial expenses from operating
activities
-1,648,403.57
-1,702,875.87
Financial income from operating activities
88,364.80
43,838.80
Direct taxes paid
-15,368,443.46
-12,436,489.84
Cash flow from operating activities (A)
-18,803,684.02
-14,785,089.58
Cash flow from investment activities (B)
-
-
Financing cash flow:
Proceeds from borrowings
50,000,000.00
-
Repayments of loans from financial institutions
-30,000,000.00
-
Dividends paid
-59,043,903.80
-32,004,342.14
Change in Group financing
67,162,040.66
47,749,794.44
Financing cash flow (C):
28,118,136.86
15,745,452.30
Changes in cash and cash equivalents (A+B+C) increase(+)/decrease(-)
9,314,452.84
960,362.72
Cash and cash equivalents at the beginning of the financial period
1,301,625.22
341,262.50
Cash and cash equivalents at the end of the financial period
10,616,078.06
1,301,625.22
128
Notes to the parent company’s financial statements
Accounting policies
Puuilo Plc’s financial statements have been prepared in accordance with the Finnish
Accounting Act and ordinances and other statutes concerning the preparation of financial
statements.
Trade receivables, accrued income and other receivables are recognised at their nominal
value or their lower probable value. Liabilities are recognised at their nominal value.
The financial statements have been prepared in accordance with the measurement and
recognition principles and methods prescribed in chapter 2, section 2 a of the Accounting
Ordinance.
Significant events in the financial period
Refinancing
Puuilo signed a new €100 million long-term financing agreement with OP Corporate Bank Plc.
The new financing agreement has a maturity of 36 months and includes two 12-month
extension options. The new financing agreement replaced the previous agreement signed in
2021.
The financing agreement includes a total of €70 million term loan and €30 million revolving
credit facility (RCF). The funds will be used to repay existing loans, working capital financing
and for the Group’s other general financing needs.
The terms of the financing agreement include one covenant: net debt/EBITDA ratio.
The agreement also includes €30 million uncommitted additional financing option (accordion
option). However, this accordion option requires a separate financing decision from the bank.
(Stock exchange release 27 March 2025)
Change in the holding of Puuilo Plc’s treasury shares
A total of 126,481 Puuilo shares held by the company were conveyed without consideration
to 28 key employees who participated in the 2022–2024 share-based incentive program. The
program was originally announced on 20 April 2022 with a stock exchange release. The
conveyance is based on the authorisation granted to the Board of Directors by the Annual
General Meeting of Shareholders held on 15 May 2024. After the share transfer on 14 April
2025, the company held a total of 428,519 own shares. (Stock exchange release 15 April 2025)
Board of Directors established a new long-term incentive plan for company’s key employees
The Board of Directors of Puuilo Plc decided to establish a new Long-Term Incentive Plan for
the key employees of the Company and its subsidiaries (“LTI”) and launch the first LTI plan
period for 2025–2027.
The purpose of the LTI is to encourage key employees to acquire and own the Company’s
shares. The LTI also aims to align the interests of the shareholders and the key employees as
well as to increase key employees’ motivation and long-term commitment to the Company.
The LTI is intended to consist of annually commencing plan periods, each with a 12-month
savings period followed by a holding period of approximately one and a half years. The Board
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of Directors will resolve annually on the launch of a new plan period. Participation in the LTI is
voluntary, and key employees are invited to participate in each plan period separately.
The first LTI plan period 2025–2027 began on 1 June 2025 and ends on 31 May 2028. The
first savings period ends on 31 May 2026. The holding period begins at the first acquisition of
savings shares. In the 2025–2027 plan period, the LTI was offered to approximately 100 key
employees of the Group, including also the Management Team and the CEO. As part of the
LTI, the key employees have an opportunity to make a one-off investment and/or save a
proportion of their salaries and invest those savings in Puuilo shares. With the savings of the
2025–2027 plan period, Puuilo shares will be acquired in four tranches estimated in
September 2025, December 2025, March 2026 and June 2026.
In the 2025–2027 plan period, as a reward for their commitment, the Company grants the key
employees participating in the LTI a gross reward of one free matching share for every savings
share acquired with their savings. The participants have also an opportunity to earn one to
three performance-based matching shares (gross) for each savings share acquired with their
savings if the performance criteria set for the plan period are met. The performance criteria of
the plan are tied to the total shareholder return of the share (TSR), the company’s adjusted
earnings before interest, taxes and amortisation (EBITA) and return on invested capital (ROIC).
Continuity of employment and holding of acquired savings shares for the duration of the
holding period, ending on the day following the 2027 financial statement release, are
prerequisites for receiving the award. The potential award will be paid partly in shares and
partly in cash after the end of the holding period. The cash proportion is intended to cover
taxes and statutory social security contributions arising from the award. Matching shares will
be freely transferable after their registration in a participant’s book-entry account. The savings
shares and matching share are Puuilo shares.
The maximum number of matching shares (gross before taxes) for the first plan period of
2025–2027 is approximately 519 000 shares, calculated at the share price on 16 April 2025.
The final number of matching shares depends on the key employees’ participation and savings
rate in the plan, the fulfilment of the prerequisites for receiving matching shares and the
number of shares acquired from the market with savings. (Stock exchange release 17 April
2025)
Updated long-term financial targets for the strategy period 2026 − 2030
On 10 September 2025, Puuilo’s Board decided on the updated long-time targets. The targets
were published on 11 September 2025.
CFO Ville Ranta left Puuilo in the end of 2025
CFO Ville Ranta announced that he leaves Puuilo to join another company. He left his current
position on 31 December 2025.
The search for his successor is underway. (Stock exchange
release 1 October 2025)
Members of Nomination Board
Representatives of the three largest shareholders registered in Puuilo Plc’s shareholder
register as of 1 October 2025 were elected to the Puuilo’s Shareholders’ Nomination Board
along with the Chair of the Board of Directors, Mammu Kaario, as an expert member. Puuilo
Plc's Shareholders' Nomination Board is a body of the Company’s shareholders responsible
for preparing proposals for the election and remuneration of the members and the Chair of the
Board of Directors as well as the remuneration of Board committee members to the Annual
General Meeting 2026 and, when necessary, to the Extraordinary General Meeting.
130
The three largest shareholders nominated following members to Puuilo’s Shareholders
Nomination Board: Ampfield Management, L.P., represented by Emerson Moore, Markku
Tuomaala, represented by Janne Koikkalainen, Evli Fund Management Company Ltd,
represented by Ville Tiainen. (Stock exchange release 14 October 2025)
Interim CFO
Annu von Weymarn has been appointed as interim CFO and member of the Management
Team of Puuilo effective 1 January 2026. Weymarn has served at Puuilo since 2019 and is
currently the company's Head of Financial Controlling. (Stock exchange release 10 December
2025)
Significant events after the end of the reporting period
Flagging notification
On 17 March 2026 Puuilo received a notification in accordance with the Chapter 9, Section 5
of the Finnish Securities Market Act from The Capital Group Companies, Inc. According to the
notification, The Capital Group Companies, Inc. indirect holdings in shares and votes of the
Company fell below the flagging threshold of 5 percent and was 4.98% after the transaction.
(Stock exchange release 18 March 2026)
Proposals of the Shareholders' Nomination Board
The Shareholders’ Nomination Board of Puuilo Plc proposes to the Annual General Meeting
that the number of the members of the Board of Directors will be five (previously five). The
Nomination Board proposes that current members of the Board of Directors, Susanne
Hounsgaard, Jens Joller, Mammu Kaario, Tuomas Piirtola, and Markku Tuomaala, be re-
elected. All proposed persons are independent of the company and its major shareholders
except Jens Joller who is independent of the company, but dependent of the major
shareholder. The Nomination Board proposes to the Annual General Meeting that Mammu
Kaario be re-elected as the Chair of the Board of Directors.
The Nomination Board proposes that the remunerations of the members of the Board of
Directors are as follows:
-€70.000 (earlier €65.000) to the Chair of the Board of Directors as annual remuneration
-€37.000 (earlier €33.000) to the other members of the Board of Directors as annual
remuneration
-In addition, the Chair of the Audit Committee will be paid €7.000 (earlier€6.000) as annual
remuneration and other members of the Audit Committee €4.000 (earlier €3.000) as annual
remuneration
All remunerations will be paid in cash. (Stock exchange release 20 March 2026)
Repurchase of own shares
On 25 March 2026, Puuilo announced that the company’s Board of Directors had decided to
use the authorization given by the Annual General Meeting held on 15 May 2025 to repurchase
the company’s own shares. The repurchases started on 27 March 2026 and ended on 9 April
2026. During this period, Puuilo repurchased 385,000 shares, corresponding to approximately
0.45% of the total number of the company’s shares, which is 84,776,953. The average
purchase price per share was € 12.798540 and the total amount € 4,927,438.
131
The repurchased shares are to be used primarily as part of the reward payments under the
share-based incentive plans for key personnel. The shares were repurchased otherwise than
in proportion to the shareholdings of the shareholders at the market price prevailing at the time
of acquisition in public trading on Nasdaq Helsinki Ltd using the company's unrestricted equity.
Following the repurchases, the company holds a total of 813,519 shares. (Stock exchange
release 9 April 2026)
Flagging notification
Puuilo Plc has received a notification on 9 April 2026 in accordance with Chapter 9, Section 5
of the Finnish Securities Markets Act. According to the notification, JPMorgan Chase & Co.’s
total indirect holdings in shares and votes of the Company have increased above the threshold
of 5% on 7 April 2026 and is now 5.05%. (Stock exchange release 10 April 2026)
132
Notes to the income statement
Net sales
EUR
1 Feb 2025 - 31 Jan
2026
1 Feb 2024 - 31 Jan
2025
Management fees charged from group companies
1,468,258.91
1,468,258.80
Total
1,468,258.91
1,468,258.80
Other operating income
EUR
1 Feb 2025 - 31 Jan 2026
1 Feb 2024 - 31 Jan
2025
Other
0.00
2,401.63
Total
0.00
2,401.63
Finance income and cost
EUR
1 Feb 2025 - 31 Jan
2026
1 Feb 2024 - 31 Jan
2025
Interest income from others
88,364.80
43,838.80
Interest expenses to others
-1,648,403.57
-1,702,875.87
Total
-1,560,038.77
-1,659,037.07
Auditors’ fees
EUR
31 Jan 2026
31 Jan 2025
Audit
141,600.00
105,586.70
Other services
66,181.31
-
Total
207,781.31
105,586.70
Number of personnel
31 Jan 2026
31 Jan 2025
Average number of personnel
7
7
Total
7
7
Personnel expenses
EUR
31 Jan 2026
31 Jan 2025
Salaries and wages
1,837,850.13
1,293,519.16
Pension costs
198,404.91
205,597.83
Other social security costs
21,812.92
23,458.61
Total
2,058,067.96
1,522,575.60
133
Notes to the assets in balance sheet
Material items included in accrued income
EUR
31 Jan 2026
31 Jan 2025
Prepaid expenses
91,440.18
94,790.69
Other
942.48
20.90
Total
92,382.66
94,991.59
Receivables from Group companies
EUR
31 Jan 2026
31 Jan 2025
Trade receivables
122,354.90
153,555.40
Group contribution receivables
101,906,102.00
93,619,320.33
Total
102,028,456.90
93,772,875.73
Notes to the equity and liabilities in balance sheet
Equity
EUR
31 Jan 2026
31 Jan 2025
Share capital at the beginning of the financial period
80,000.00
80,000.00
Share capital at the end of the financial period
80,000.00
80,000.00
Restricted equity total at the end of the financial period
80,000.00
80,000.00
Reserve for invested unrestricted equity at the beginning of the financial period
30,000,004.98
30,000,004.98
Reserve for invested unrestricted equity at the end of the financial period
30,000,004.98
30,000,004.98
Profit (loss) for previous financial periods at the beginning of the financial period
54,448,699.17
42,356,677.65
Transfer of profit (loss) from previous financial period
50,176,011.13
44,096,363.66
Dividend distribution
-59,043,903.80
-32,004,342.14
Profit (loss) for previous financial periods at the end of the financial period
45,580,806.50
54,448,699.17
Profit (loss) for the financial period
57,574,379.88
50,176,011.13
Unrestricted equity at the end of the financial period
133,155,191.36
134,624,715.28
Equity total
133,235,191.36
134,704,715.28
134
Calculation of distributable funds in equity
EUR
31 Jan 2026
31 Jan 2025
Profit (loss) for previous financial periods
45,580,806.50
54,448,699.17
Profit (loss) for the financial period
57,574,379.88
50,176,011.13
Reserve for invested unrestricted equity
30,000,004.98
30,000,004.98
Distributable funds total
133,155,191.36
134,624,715.28
Material items included in deferred liabilities
EUR
31 Jan 2026
31 Jan 2025
Salary accruals
49,886.96
54,046.03
Social security costs
76,978.42
53,153.52
Holiday pay expenses incl. social security costs
157,108.29
195,251.57
Interest expenses
496,466.94
106,883.57
Income tax
1,691,472.34
2,793,443.48
Total
2,471,912.95
3,202,778.17
Holdings in other companies
Puuilo Plc (parent company) has one wholly owned Finnish subsidiary, Puuilo Tavaratalot
Oy and one wholly owned Swedish subsidiary, Puuilo Varuhus AB.
135
Signatures of Report by the Board of Directors and Financial Statements
The financial statements prepared in accordance with the applicable set of accounting
standards give a true and fair view of the assets, liabilities, financial position and profit or
loss of the company and the companies included in its consolidated financial statements.
The Report by the Board of Directors presents a fair review of the development and
performance of the company and the companies included in its consolidated financial
statements, as well as a description of the significant risks and uncertainties and the
company’s position. The sustainability statement included in the Report by the Board of
Directors has been prepared in compliance with the sustainability reporting standards as well
as Article 8 of the Regulation (EU) 2020/852 of the European Parliament and of the Council
(Taxonomy Regulation).
Date and signature
In Helsinki,
15 April 2026
Mammu Kaario
Chair of the Board
Susanne Hounsgaard
Member of the Board
Jens Joller
Member of the Board
Tuomas Piirtola
Member of the Board
Markku Tuomaala
Member of the Board
Juha Saarela
CEO
Auditor’s report
An auditor’s report has been issued today.
In Helsinki,
15 April 2026
KPMG Oy Ab
Authorised Public Accountants
Henrik Holmbom
APA
KPMG Oy Ab
Töölönlahdenkatu 3 A
PO Box 1037
00101 Helsinki
FINLAND
Telephone +358 20 760 3000
www.kpmg.fi
KPMG Oy Ab, a Finnish limited liability company and a member firm of the KPMG global organization of independent member firms
affiliated with KPMG International Limited, a private English company limited by guarantee.
Business ID 1805485-9
Domicile Helsinki
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
Auditor’s Report
To the Annual General Meeting of Puuilo Plc
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Puuilo Plc ((business identity code 2726573-8) for the financial
year ended 31 January, 2026. The financial statements comprise the consolidated balance sheet, statement
of comprehensive income, statement of changes in equity, statement of cash flows and notes, including
material accounting policy information, as well as the parent company’s balance sheet, income statement,
cash flow statement and notes.
In our opinion
— the consolidated financial statements give a true and fair view of the group’s financial position, financial
performance and cash flows in accordance with IFRS Accounting Standards as adopted by the EU
— the financial statements give a true and fair view of the parent company’s financial performance and
financial position in accordance with the laws and regulations governing the preparation of financial
statements in Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good
auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent
company and group companies are in compliance with laws and regulations applicable in Finland regarding
these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of
regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 2.3 to
the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based
on our professional judgement and is used to determine the nature, timing and extent of our audit procedures
and to evaluate the effect of identified misstatements on the financial statements as a whole. The level of
materiality we set is based on our assessment of the magnitude of misstatements that, individually or in
aggregate, could reasonably be expected to have influence on the economic decisions of the users of the
financial statements. We have also taken into account misstatements and/or possible misstatements that in
our opinion are material for qualitative reasons for the users of the financial statements.
Puuilo Plc
Auditor’s Report
April 15, 2026
2
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit
of the financial statements of the current period. These matters were addressed in the context of our audit of
the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate
opinion on these matters. The significant risks of material misstatement referred to in the EU Regulation No
537/2014 point (c) of Article 10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of
whether there was evidence of management bias that represented a risk of material misstatement due to
fraud.
THE KEY AUDIT MATTER
HOW THE MATTER WAS ADDRESSED IN THE
AUDIT
Inventory existence and valuation (Reference to the financial statements note 3.1.
Inventories)
— Inventories at year-end totalled €123 million
and comprised 39 % of consolidated total
assets.
— The acquisition cost of the inventory is
determined using the weighted average
price method.
— The acquisition cost of finished products
includes all purchase costs, including
immediate transportation and handling
costs and granted credits by suppliers.
— Inventory is valued at acquisition cost or net
realizable value, whichever is lower. The
determination of net realizable value and
any potential impairment involves
management judgement regarding future
demand for the products.
— Due to the importance of the balance sheet
item and the risk associated with existence
and valuation, inventories are considered a
key audit matter.
Our audit procedures included
e.g. the following:
—
We have evaluated the internal control
environment related to inventory
management and tested the key controls
—
We have evaluated the inventory accounting
principles used against the applicable
accounting standards
—
We have performed risk assessment
procedures using data-analytics capabilities
—
We have evaluated the methodology and
implementation of shrinking and
obsolescence calculations
—
We have attended to the inventory counts
and performed verification procedures
through test counts of selected items
—
We have compared the unit prices of the
selected inventory items with the purchase
invoices, tested the correctness of the
weighted average price calculation and
compared the unit prices of selected stock
items with the selling prices
—
We have evaluated inventory related notes
information in the financial statements
Puuilo Plc
Auditor’s Report
April 15, 2026
3
We have not identified key audit matters relating to the parent company’s financial statements.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with IFRS Accounting Standards as adopted by the
EU, and of financial statements that give a true and fair view in accordance with the laws and regulations
governing the preparation of financial statements in Finland and comply with statutory requirements. The
Board of Directors and the Managing Director are also responsible for such internal control as they determine
is necessary to enable the preparation of financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for
assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as
applicable, matters relating to going concern and using the going concern basis of accounting. The financial
statements are prepared using the going concern basis of accounting unless there is an intention to liquidate
the parent company or the group or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted
in accordance with good auditing practice will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken on the basis of the
financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
— Identify and assess the risks of material misstatement of the financial statements, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that
is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve
collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the parent company’s or the group’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
— Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit evidence obtained, whether a material uncertainty
exists related to events or conditions that may cast significant doubt on the parent company’s or the
group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report to the related disclosures in the financial statements or,
if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the parent company or the group to cease to continue as a going concern.
Puuilo Plc
Auditor’s Report
April 15, 2026
4
— Evaluate the overall presentation, structure and content of the financial statements, including the
disclosures, and whether the financial statements represent the underlying transactions and events so
that the financial statements give a true and fair view.
— Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business units within the group as a basis for forming an opinion on the
group financial statements. We are responsible for the direction, supervision and review of the audit
work performed for purposes of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
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 15, May 2025, and our appointment
represents a total period of uninterrupted engagement of one year.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other
information comprises the report of the Board of Directors and the information included in the Annual Report,
but does not include the financial statements or our auditor’s report thereon. Our opinion on the financial
statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
With respect to the report of the Board of Directors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in compliance with the applicable provisions, excluding
the sustainability report information on which there are provisions in Chapter 7 of the Accounting Act and in
the sustainability reporting standards.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the
financial statements and the report of the Board of Directors has been prepared in compliance with the
applicable provisions. Our opinion does not cover the sustainability report information on which there are
provisions in Chapter 7 of the Accounting Act and in the sustainability reporting standards.
If, based on the work we have performed on the other information, we conclude that there is a material
misstatement of this other information, we are required to report that fact. We have nothing to report in this
regard.
Puuilo Plc
Auditor’s Report
April 15, 2026
5
Helsinki, April 15, 2026
KPMG OY AB
Audit Firm
HENRIK HOLMBOM
Authorised Public Accountant, KHT
KPMG Oy Ab
Töölönlahdenkatu 3 A
PO Box 1037
00101 Helsinki
FINLAND
Telephone +358 20 760 3000
www.kpmg.fi
KPMG Oy Ab, a Finnish limited liability company and a member firm of the KPMG global organization of independent member firms
affiliated with KPMG International Limited, a private English company limited by guarantee.
Business ID 1805485-9
Domicile Helsinki
This document is an English translation of the Finnish Assurance Report on the Sustainability Statement. Only the Finnish version of the
report is legally binding.
Assurance Report on the Sustainability Statement
To the Annual General Meeting of Puuilo Plc
We have performed a limited assurance engagement on the group sustainability statement of Puuilo Plc
(business identity code 2726573-8) that is referred to in Chapter 7 of the Accounting Act and that is included
in the report of the Board of Directors for the financial year 1.2.2025–31.1.2026.
Opinion
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our
attention that causes us to believe that the group sustainability statement does not comply, in all material
respects, with
1) the requirements laid down in Chapter 7 of the Accounting Act and the sustainability reporting
standards (ESRS), and
2) the requirements laid down in Article 8 of the Regulation (EU) 2020/852 of the European
Parliament and of the Council on the establishment of a framework to facilitate sustainable
investment, and amending Regulation (EU) 2019/2088 (EU Taxonomy).
Point 1 above also contains the process in which Puuilo Plc has identified the information for reporting in
accordance with the sustainability reporting standards (double materiality assessment).
Our opinion does not cover the tagging of the group sustainability statement with digital XBRL sustainability
tags in accordance with Chapter 7, Section 22, Subsection 1(2), of the Accounting Act, because sustainability
reporting companies have not had the possibility to comply with that requirement in the absence of
requirements for the tagging of sustainability information in the ESEF regulation or other European Union
legislation.
Basis for Opinion
We performed the assurance of the group sustainability statement as a limited assurance engagement in
compliance with good assurance practice in Finland and with the International Standard on Assurance
Engagements (ISAE) 3000 (Revised) Assurance Engagements Other than Audits or Reviews of Historical
Financial Information.
Our responsibilities under this standard are further described in the Responsibilities of the Authorised Group
Sustainability Auditor section of our report.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Other Matter
Regarding the comparative information, the group sustainability statement for the financial year 1.2.2024–
31.1.2025 was assured at a limited assurance level by a different authorised sustainability auditor, whose
assurance report dated March 24, 2025 expressed an unmodified opinion on the group sustainability
statement. Our opinion is not modified in respect to this matter.
Authorised Group Sustainability Auditor's Independence and Quality Management
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our engagement, and we have fulfilled our
other ethical responsibilities in accordance with these requirements.
The authorised group sustainability auditor applies International Standard on Quality Management ISQM 1,
which requires the authorised sustainability audit firm to design, implement and operate a system of quality
Puuilo Plc
Assurance Report on the Sustainability Statement
for the financial year 1.2.2025–31.1.2026
2
management including policies or procedures regarding compliance with ethical requirements, professional
standards and applicable legal and regulatory requirements.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director of Puuilo Plc are responsible for:
— the group sustainability statement and for its preparation and presentation in accordance with the
provisions of Chapter 7 of the Accounting Act, including the process that has been defined in the
sustainability reporting standards and in which the information for reporting in accordance with the
sustainability reporting standards has been identified,
— the compliance of the group sustainability statement with the requirements laid down in Article 8 of the
Regulation (EU) 2020/852 of the European Parliament and of the Council on the establishment of a
framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088, and for
— such internal control as the Board of Directors and the Managing Director determine is necessary to
enable the preparation of a group sustainability statement that is free from material misstatement, whether
due to fraud or error.
Inherent Limitations in the Preparation of a Sustainability Statement
Preparing a group sustainability statement requires a company to make materiality assessment to identify
relevant matters to report. This includes significant management judgement and choices. It is also
characteristic to the sustainability reporting that reporting of this kind of information includes estimates and
assumptions as well as measurement and estimation uncertainty.
The determination of greenhouse gases is subject to inherent uncertainty due to the incomplete scientific data
used to determine the emission factors and the numerical values needed to combine emissions of different
gases.
When reporting forward-looking information in accordance with ESRS standards, a company's management
is required to make assumptions about possible future events, and to disclose the company's possible future
actions in relation to those events, as well as to prepare the forward-looking information based on these
assumptions. Actual results are likely to differ because forecasted events often do not occur as expected.
Responsibilities of the Authorised Group Sustainability Auditor
Our responsibility is to perform an assurance engagement to obtain limited assurance about whether the
group sustainability statement is free from material misstatement, whether due to fraud or error, and to issue
a limited assurance report that includes our opinion. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the
decisions of users taken on the basis of the group sustainability statement.
Compliance with the International Standard on Assurance Engagements (ISAE) 3000 (Revised) requires that
we exercise professional judgment and maintain professional scepticism throughout the engagement. We
also:
— Identify and assess the risks of material misstatement of the group sustainability statement, whether due
to fraud or error, and obtain an understanding of internal control relevant to the engagement in order to
design assurance procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the parent company’s or the group’s internal control.
— Design and perform assurance procedures responsive to those risks to obtain evidence that is sufficient
and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement
resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery,
intentional omissions, misrepresentations, or the override of internal control.
Puuilo Plc
Assurance Report on the Sustainability Statement
for the financial year 1.2.2025–31.1.2026
3
Description of the Procedures That Have Been Performed
The procedures performed in a limited assurance engagement vary in nature and timing from, and are less
in extent than for, a reasonable assurance engagement. The nature, timing and extent of assurance
procedures selected depend on professional judgment, including the assessment of risks of material
misstatement, whether due to fraud or error. Consequently, the level of assurance obtained in a limited
assurance engagement is substantially lower than the assurance that would have been obtained had a
reasonable assurance engagement been performed.
Our procedures included, among others, the following:
— We interviewed the company’s management and persons responsible for collecting and preparing the
information contained in the group sustainability statement at the group level, as well as at different levels
and business areas of the organization.
— Regarding the double materiality assessment process, we assessed the implementation of the process
carried out by the company and the information disclosed on the process in relation to the requirements
of the ESRS standards.
— Through interviews we gained understanding of the group’s key processes, controls and information
systems related to collecting and consolidating the sustainability information.
— We got acquainted with the group’s internal guidelines and operating principles relevant to the
sustainability information disclosed in the group sustainability statement.
— We got acquainted with the background documentation and documents prepared by the company, as
applicable, and assessed whether they support the information included in the group sustainability
statement.
— We assessed the information disclosed on material sustainability matters in the group sustainability
statement in relation to the requirements of the ESRS standards.
— In relation to the EU taxonomy information, we gained understanding about the process by which the
company has defined taxonomy eligible and taxonomy aligned activities, and assessed the regulatory
compliance of the information provided.
Helsinki, April 15, 2026
KPMG OY AB
Authorised Sustainability Audit Firm
HENRIK HOLMBOM
Authorised Sustainability Auditor, KRT
Translation of the Finnish original
Independent Auditor's Report on the ESEF
Consolidated Financial Statements of Puuilo Plc
To the Board of Directors of Puuilo Plc
We have performed a reasonable assurance engagement on the financial statements
743700UJUT6FWHBXPR69-2026-01-31-1-fi.zip of Puuilo Plc (Business ID 2726573-8) that have been
prepared in accordance with the Commission's regulatory technical standard for the financial year ended
31.1.2026.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation of the company's report
of the Board of Directors and financial statements (the ESEF financial statements) in such a way that they
comply with the requirements of the Commission's regulatory technical standard. This responsibility includes:
— preparing the ESEF financial statements in XHTML format in accordance with Article 3 of the
Commission's regulatory technical standard
— tagging the primary financial statements, notes and company's identification data in the consolidated
financial statements that are included in the ESEF financial statements with iXBRL tags in accordance
with Article 4 of the Commission's regulatory technical standard and
— ensuring the consistency between the ESEF financial statements and the audited financial statements.
The Board of Directors and the Managing Director are also responsible for such internal control as they
determine is necessary to enable the preparation of ESEF financial statements in accordance with the
requirements of the Commission's regulatory technical standard.
Auditor’s independence and quality management
We are independent of the company in accordance with the ethical requirements that are applicable in Finland
and are relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities
in accordance with these requirements.
The auditor applies International Standard on Quality Management (ISQM) 1, which requires the firm to
design, implement and operate a system of quality management including policies or procedures regarding
compliance with ethical requirements, professional standards and applicable legal and regulatory
requirements.
Auditor’s responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities Markets Act, provide
assurance on the financial statements that have been prepared in accordance with the Commission's
regulatory technical standard. We express an opinion on whether the consolidated financial statements that
are included in the ESEF financial statements have been tagged, in all material respects, in accordance with
the requirements of Article 4 of the Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been provided. We conducted
a reasonable assurance engagement in accordance with International Standard on Assurance Engagements
(ISAE) 3000.
T
he engagement includes procedures to obtain evidence on:
— whether the primary financial statements in the consolidated financial statements that are included in the
ESEF financial statements have been tagged, in all material respects, with iXBRL tags in accordance with
the requirements of Article 4 of the Commission's regulatory technical standard and
— whether the notes and company's identification data in the consolidated financial statements that are
included in the ESEF financial statements have been tagged, in all material respects, with iXBRL tags in
accordance with the requirements of Article 4 of the Commission's regulatory technical standard and
— whether there is consistency between the ESEF financial statements and the audited financial statements.
The nature, timing and extent of the selected procedures depend on the auditor’s judgment. This includes an
assessment of the risk of a material deviation due to fraud or error from the requirements of the Commission's
regulatory technical standard.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that the primary financial
statements, notes and company's identification data in the consolidated financial statements that are included
in the ESEF financial statements of Puuilo Plc 743700UJUT6FWHBXPR69-2026-01-31-1-fi.zip for the
financial year ended 31.1.2026 have been tagged, in all material respects, in accordance with the
requirements of the Commission's regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of Puuilo Plc for the financial year ended
31.1.2026 has been expressed in our auditor's report dated 15.4.2026. With this report we do not express an
opinion on the audit of the consolidated financial statements nor express another assurance conclusion.
Helsinki 16 April 2026
KPMG OY AB
Audit Firm
H
enrik Holmbom
Authorised Public Accountant, KHT
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