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10-Q - SRV Interim Report January-September 2023: Q3 operative operating profit positive, order backlog remains strong - outlook unchanged

Company: SRV Yhtiöt Oyj Date: 2023-10-26 Language: English Register to download
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# **Interim Report**

1 January - 30 September 2023

SRV GROUP PLC 26 October 2023 at 8:30 am

![](_page_1_Picture_1.jpeg)

# **SRV Group Plc Interim Report 1 January – 30 September 2023**

# **Contents**

| January–September 2023 in brief:               | 2  |
|------------------------------------------------|----|
| Significant events after the period            | 3  |
| President & CEO's review                       | 4  |
| Business environment                           | 5  |
| Strategy and financial objectives              | 6  |
| ESG Review                                     | 8  |
| Business Review                                | 10 |
| Business and infrastructure construction       | 13 |
| Housing construction                           | 15 |
| Russian business operations and other holdings | 18 |
| Financing and financial position               | 19 |
| Short-term risks and uncertainties             | 20 |
| General Meeting                                | 21 |
| Incentive plans                                | 21 |
| Shares and shareholders                        | 21 |
|                                                |    |

<span id="page-2-0"></span>![](_page_2_Picture_1.jpeg)

# Q3 operative operating profit positive, order backlog remains strong – outlook unchanged

# **July–September 2023 in brief:**

- Revenue amounted to EUR 146.9 (186.8) million.
- Operative operating profit amounted to EUR 4.6 (3.9) million with an operating profit of EUR -4.9 (5.5) million. The divestment of SRV Russia Oy had a EUR -9.5 million impact on operating profit, of which EUR -9.3 million consisted of the recognition of translation differences in income.
- Cash flow from operating and investment activities totalled EUR -4.6 (4.5) million.
- New agreements valued at EUR 132.5 (135.0) million were signed in July–September.

# **January–September 2023 in brief:**

- Revenue amounted to EUR 428.3 (588.9) million.
- Operative operating profit amounted to EUR -1.3 (18.7) million with an operating profit of EUR -9.9 (-70.1) million. The divestment of SRV Russia Oy had a EUR -9.5 million impact on operating profit, of which EUR -9.3 million consisted of the recognition of translation differences in income.
- The result before taxes was EUR -16.4 (-69.1) million.
- Cash flow from operating and investment activities totalled EUR -13.6 (-12.7) million.
- The equity ratio fell to 34.9 per cent (36.3% 9/2022) and gearing rose to 84.8 per cent (59.3% 9/2022). Excluding the impact of IFRS 16, the equity ratio was 49.5 (48.6) per cent and gearing was 5.1 (-5.4) per cent.
- At period-end, the order backlog stood at EUR 995.6 (717.1) million. New agreements valued at EUR 528.3 (337.3) million were signed in January–September. The sold share of the order backlog was 92.1 (87.8) per cent.
- Earnings per share were EUR -1.0 (-6.5).

# **Outlook (unchanged)**

During 2023, SRV's revenue and result will be affected by several factors in addition to general economic trends, such as: the timing and amount of income recognition for SRV's own projects, which are recognised as income upon delivery; the margin of the order backlog and its development; the start-up of new contracts and development projects; the war that Russia started against Ukraine, including its related direct and indirect effects, such as material costs and the availability of materials and labour; and changes in demand. Higher interest rates and inflation have a negative impact on demand for housing and business premises among consumers and investors, and thus pose uncertainty with respect to the estimated start-ups of new projects.

Revenue in 2023 will mainly be generated by cooperative contracting and development projects sold to investors. At the beginning of 2023, the order backlog was strongly weighted towards cooperative contracting, which involves fewer risks but lower margins. The company therefore expects the largest proportion of its full-year earnings to be generated in the end of the year. The share of revenue accounted for by developer-contracted housing production will remain small in 2023.

• Full-year consolidated revenue for 2023 is expected to decrease in comparison to 2022 (revenue in 2022: EUR 770.1 million).

<span id="page-3-0"></span>• Operative operating profit is expected to be positive, but lower than in 2022 (operative operating profit in 2022: EUR 18.9 million.

# **Significant events after the period**

There were no significant events after the end of the review period.

# **Group Key Figures**

|                                        | 1-9/  | 1-9/  |        |           | 7-9/  | 7-9/  | 1-12/ |
|----------------------------------------|-------|-------|--------|-----------|-------|-------|-------|
| (IFRS, milj. eur)                      | 2023  | 2022  | change | change, % | 2023  | 2022  | 2022  |
| Revenue                                | 428.3 | 588.9 | -160.6 | -27.3     | 146.9 | 186.8 | 770.1 |
| Operative operating profit             | -1.3  | 18.7  | -20.0  | -106.9    | 4.6   | 3.9   | 18.9  |
| Operative operating profit, %          | -0.3  | 3.2   | -3.5   |           | 3.1   | 2.1   | 2.5   |
| Operating profit                       | -9.9  | -70.1 | 60.2   |           | -4.9  | 5.5   | -76.4 |
| Operating profit, %                    | -2.3  | -11.9 | 9.6    |           | -3.4  | 2.9   | -9.9  |
| Profit before taxes                    | -16.4 | -69.1 | 52.6   |           | -6.5  | 5.8   | -79.1 |
| Net profit for the period              | -14.4 | -76.7 | 62.3   |           | -6.6  | 5.3   | -85.7 |
| Net profit for the period, %           | -3.4  | -13.0 | 9.7    |           | -4.5  | 2.9   | -11.1 |
| Earnings per share2)                   | -1.0  | -6.5  | 5.5    |           | -0.5  | 0.4   | -6.6  |
| Order backlog (unrecognised)           | 995.6 | 717.1 | 278.5  | 38.8      |       |       | 838.8 |
| Equity ratio, %                        | 34.9  | 36.3  | -1.5   |           |       |       | 36.3  |
| Equity ratio, %, excl. IFRS 16 1)      | 49.5  | 48.6  | 0.9    |           |       |       | 48.2  |
| Net gearing ratio, %                   | 84.8  | 59.3  | 25.5   |           |       |       | 55.1  |
| Net gearing ratio, %, excl. IFRS 16 1) | 5.1   | -5.4  | 10.6   |           |       |       | -7.5  |
| Financing reserves                     | 63.9  | 61.8  | 2.1    | 3.4       |       |       | 65.9  |

1. The figure has been adjusted to remove the impacts of IFRS 16.

2. The key figure for the comparison period has been adjusted, taking the 2022 share issues and reverse share split into account.

# <span id="page-4-0"></span>**President & CEO's review**

Market conditions continued to be challenging in the third quarter of 2023, and we do not expect a significant change for the better in the short term. Demand for housing construction has almost come to a halt, and demand for real estate investments has weakened considerably as a result of the rapid rise in interest rates. Public construction remains strong, and there have been favourable developments in demand for industrial investments in terms of both volume and operating models. Our own development is strong in relation to the market, thanks to our net debt-free status, the low number of unsold apartments, and an order backlog that has strengthened since the end of last year, particularly in business construction. Our operational controllability has developed favourably over the past two years, which is reflected in our improved occupational safety, adherence to schedules, improved financial performance and, I'm delighted to say, also customer satisfaction.

In spite of the challenging market situation, our revenue continued to experience slight quarter-on-quarter growth, driven by business construction. However, due to poor demand for housing construction, revenue fell short of the comparison period.

As expected, our operative operating profit for the quarter was relatively good in view of the circumstances: EUR 4.6 million. The Group's profit before taxes was EUR 3.0 million before items relating to the divestment of SRV Russia Oy. Translation differences, which mainly stemmed from old exchange rate losses, were recognised in the income statement in conjunction with this transaction, and resulted in a loss, although without affecting the key figures in the balance sheet. We expect that the greatest proportion of our full-year earnings will be accrued during the second half of the year, as the favourable order intake during early 2023, along with other expected projects, will increase revenue and generate profit.

Our order backlog remained strong in the third quarter of 2023, and was 39% better than in the comparison period. The order backlog will lead to increased revenue starting from the last quarter of this year when projects get up to full speed. The annex to the National Museum of Finland in Helsinki and the Rajamäki Campus in Nurmijärvi were entered into our order backlog in July–September. After the development phase, we also entered a large Kerto timber mill into our order backlog. This mill is being built for Metsä Wood in Äänekoski and will be implemented as a cooperative project management contract. An increasing proportion of industrial projects are being carried out as

![](_page_4_Picture_8.jpeg)

cooperative contracts, which have proven to be effective in numerous challenging public-sector projects. The growth in our order backlog, coupled with its weighting towards cooperative business premises contracts, will take us through this challenging market situation.

The divestment of our Russian holdings proceeded during the review period, and in August we sold the share capital of our subsidiary SRV Russia Oy to the Cypriot real estate investment company Geomare Investments Limited. This transaction included SRV's Russian subsidiaries and associated companies (complete with their personnel) and the rest of SRV's plot holdings in Russia, which are owned by these companies, as well as a minority interest in the 4Daily shopping centre located close to Moscow. After this transaction, our only remaining asset in Russia is a 50 per cent holding in the Pearl Plaza shopping centre in St Petersburg. We will actively continue negotiations aimed at selling the last of our Russian holdings.

In October, SRV and the City of Helsinki jointly announced that we had begun the process of terminating the preliminary agreement for the Jätkäsaari Bunkkeri real estate transaction due to a lack of investor demand arising from the market situation. Both parties consider it important for the City to begin exploring a new solution for its planned sports facilities without delay. The divestment of this project is also part of our risk management, as we must ensure that our capital is used efficiently in a challenging market.

I see our favourable development continuing for the rest of the year, although we do not expect any particular traction from the market. Looking further ahead, I believe the trends for urbanisation and regional concentration will continue in Finland, and demand will gradually recover. If the market situation improves slightly, our strengthened position may open up opportunities for profitable growth over the coming years. We are well-placed to react quickly, thanks to both our financial position and the ready-to-start project portfolio produced by project development.

<span id="page-5-0"></span>The Bank of Finland forecasts that GDP will contract by 0.2 per cent in 2023. The economy is burdened by rising prices and interest rates, coupled with weak export demand. Employment has dipped after rising for a long time, and the business community's confidence in economic prospects has dimmed during the year. Although the cost level remains high, a slowdown in inflation will improve household consumption opportunities. Recovery from the recession will be slow, and will begin sluggishly in 2024. An upswing in GDP is forecast, first rising slightly to 0.2 per cent growth in 2024 and further strengthening in 2025. There are risks that trends in the global economy could be less favourable. (source: Bank of Finland).

Although inflation seems to have peaked, interest rate markets have remained tight. The Governing Council raised the ECB's key interest rate by 0.25 per cent at its September meeting. The Governing Council believes that the ECB's key interest rate is at a level that will slow inflation and steer it to the target level. The 12-month Euribor, which is a key interest rate for mortgage borrowers, stood at 4.2 per cent in the first week of October. The 12-month Euribor rate is expected to fall slightly in spring 2025. Rising interest rates and inflation have posed challenges for consumers, and this has been clearly evident in the marked weakening of demand in the housing market (source: Bank of Finland).

Consumer confidence has remained low for a long time as a result of Russia's war of aggression. This index stood at -11.5 in September compared to -8.0 in August and -8.8 in July. The consumer confidence index was at -18.3 a year ago in September 2022. Consumers' assessments of their own finances and the Finnish economy, both at present and in a year's time, were at a very low level. Unemployment forecasts have darkened considerably in Finland. (source: Statistics Finland)

Construction began to contract in autumn 2022. New construction startups and permits have plummeted during the past year. The Confederation of Finnish Construction Industries forecasts that construction will contract by 10 per cent this year and by 2 per cent in 2024. At the end of 2022, the intentions of households to buy a residential unit declined significantly due to surging energy prices and higher interest rates. The volume of housing construction will fall by almost 40 per cent in 2023, and this decline will continue into 2024. It is expected that approximately 16,000–20,000 residential units will be started this year and 19,000–24,000 in 2024. The trend in building permits

for business premises also began to decline in 2022 as uncertainty and high costs hindered tender operations. On the heels of the weak trend in permits, the volume of the construction of business premises continued to fall this year. Next year, the outlook for public service construction, industrial and warehouse construction, and commercial and office construction is brighter than for other types of construction. Investments in the years ahead will be supported by a slowdown in the rise of construction costs (source: Confederation of Finnish Construction Industries RT and Forecon).

 The real estate market has had a challenging year and the trading volume has slowed down. Real estate transactions totalled about EUR 1.8 billion during the first three quarters, which is the lowest volume since 2013. The transaction volume amounted to around EUR 0.4 billion during the third quarter. Housing accounted for more than 30 per cent of the transaction volume in the first half of the year. It was followed by offices (22 per cent) and industrial properties (19 per cent). Transactions by foreign investors represented more than fifty cent of the total volume. Investors are cautious due to the recession, inflation and rising interest rates, and yield requirements have increased in all property segments. Investors expect renewed activity in real estate transactions towards the end of the year. (source KTI)

Based on SRV's assessment of the prevailing market situation and its impacts on the company's operations, demand in housing sales will remain weak in the near future among both consumers and investors. For this reason, start-ups of new housing projects will remain very low in the entire market in the short term. The market for business premises is also more challenging than before, but is more upbeat than the housing market and more polarised in terms of demand. The public sector is making investments, and industrial investment demand is more active. In addition, there is still demand for user-oriented business premises in the current market situation. The rise in interest rates has increased investors' return requirements in all real estate segments, and investors have had more limited access to borrowed capital.

# <span id="page-6-0"></span>**Strategy and financial objectives**

The aims of SRV's strategy are: mitigating climate change, the well-being of users and residents of the premises, sustainable income from real estate properties over their entire lifecycle, excellent customer experience, and ensuring SRV's long-term competitive advantage and profitable growth. The strategy is being put into practice with four development programmes.

## **Value through lifecycle-wise construction**

This programme focuses on taking the entire lifecycle of the built environment into consideration – it implements construction solutions that aim to mitigate and adapt to climate change. An essential aspect of lifecycle wisdom is to ensure low environmental impacts and smooth everyday life during a building's occupancy, while also protecting biodiversity.

During the review period, biodiversity was promoted at the construction site of the fourth Kalasatama tower (Visio), such as by bringing decaying logs into the yard area to enrich biodiversity. The planted areas in Visio's yard will increase both the diversity of urban nature and the area's attractiveness. They will also improve microclimatic conditions and acoustics, make it less windy, reduce the stormwater load on sewers, and bind air pollutants.

The Helsinki Upper Secondary School of Natural Sciences, which opened during the review period, has a wooden structure and will therefore be able to sequester carbon during its life cycle. The building's frame is made of wooden elements, that is, Cross Laminated Timber (CLT) structures. The school also makes efficient use of renewable energy: its entire roof is filled with solar panels and the building is heated by 12 geothermal wells.

### **Streamlining operations throughout the entire construction chain**

SRV launched several business premises projects in July– September. As the start-up phase is crucial to the success of the entire project, the company has taken concrete targeted action to ensure a good degree of management at this stage. The company's development work is focusing on systematic project management and increasing the integration and collaboration competence of its teams.

During the review period, SRV developed the technical building services concept for Jorvi's new ward building, which will be used to harness all parties' expertise. This full integration of technical building services is the first of its kind and will enable everyone to work towards a common goal – starting with a common incentive model and continuing with standardised operating methods. This approach will ensure that direct contact between the various parties in the project occurs at the right time. A building automation sub-alliance will also strengthen cooperation. This new way of working will enable smoother and more efficient solutions that will benefit the entire project.

### **Best customer experience in the commercial premises market**

SRV is committed to its customer promise: By listening, we build wisely. During this review period, SRV continued to engage in systematic efforts to strengthen the customer experience and root the customer promise in the day-today work of the company's employees. A Net Promoter Score (NPS) measures customer satisfaction, and SRV's NPS for business premises has remained excellent throughout the year: the NPS B2B for January–September was 65 (target 53).

The renovation of the Finnish National Theatre's Small Stage was completed on schedule, and the NPS for the handover phase was a perfect 100. SRV received particular praise for the professional skills of its personnel, cost management, flexibility, smooth cooperation and good customer service.

A perfect 100 was also achieved for the handover phase of Lahti City Hall, which was handed over to the client in July. In this alliance project, an historic building designed by Eliel Saarinen was extensively renovated to meet today's needs. An alliance model was chosen for this challenging renovation project, and proved an excellent choice. The project was a success thanks to good communication, clear goals and continuous positive cooperation.

### **Increasing profitability in housing construction**

SRV continued to develop the cost-competitiveness of housing production on many fronts during the review period. In addition to cost-effectiveness, SRV has also achieved excellent quality standards on its housing construction sites. As Oy Helsingin Lapinmäentie 8 (Ainonkannel) and As Oy Vantaan Pekko (which was built for Suomen Asuntoneuvoja) were both completed in September as zero-defect handovers. Ainonkannel is one of the projects that SRV has implemented for the

residential real estate investment company Kojamo, and is also part of the Lapinmäentie project that is being developed and implemented by SRV. The project had a challenging schedule, but good planning, solid schedule management and a tight internal timetable ensured that it was handed over to the client one month ahead of schedule.

SRV's B2B NPS for housing production was excellent at 72. SRV received positive feedback about a number of things, such as construction quality control and schedule management, cooperation and site organisation, and the management of on-site occupational safety.

# **Financial objectives**

The company's operations are guided by the following long-term financial objectives that it aims to achieve by the end of 2026:

- Operative operating profit: 6%
- Revenue: EUR 900 million
- The objective is to distribute a dividend equalling 30-50 per cent of the annual result, while taking into account the outlook and capital needs of the company.

# <span id="page-8-0"></span>**ESG Review**

SRV's sustainability efforts comprise environmental responsibility, social responsibility and good governance (ESG). These efforts are guided by the UN Sustainable Development Goals (SDG), of which the following are the most important to our operations:

![](_page_8_Figure_5.jpeg)

## **Environmental responsibility**

SRV's long-term climate objective is for its own operations to be carbon neutral by 2030. By reducing emissions during construction, the company can have a direct impact on Finland's emissions, as construction is one of the largest sources of carbon dioxide emissions. SRV's construction sites are net-zero emission sites with respect to its own operations.

The cumulative carbon footprint from the company's own operations in 2023 (own emissions, Scope 1 and 2) totalled 1,032 tCO2 at the end of September. SRV's own energy procurement has been net emission free in 2023. Absolute carbon dioxide emissions decreased by 75 per cent during 2022. At the end of September, emission intensity was 3.7 tCO2 relative to revenue, down by about 25 per cent on 2022. The company's management monitors energy consumption and emissions on a monthly basis.

The EU Taxonomy is a classification system for sustainable finance. The taxonomy consists of a directive and the regulatory technical standards issued on the basis of the directive. In January–September, SRV's taxonomyaligned revenue accounted for 70.6 per cent of taxonomyeligible revenue for the reporting period (EUR 258.0

million). Taxonomy-eligible revenue for the period accounted for 87.4 per cent (EUR 365.2 million) of total revenue. Due to its project management contracting model, SRV's taxonomy-eligible capital expenditure and operating expenses are low.

![](_page_8_Figure_11.jpeg)

\*Of taxonomy-eligible revenue

SRV promotes responsible construction and aims to increase the share of green revenue in its development and developer contracting operations to 80 per cent in 2023. Green revenue covers the share of EU taxonomyeligible revenue accounted for by taxonomy-aligned revenue for the review period and projects for which environmental certification is planned. In July–September, green revenue was already more than 100 per cent.

Promoting waste sorting and the circular economy are the main objectives of SRV's environmental action. The sorting rate that SRV uses in its EU taxonomy reporting was 81.0 per cent in January–September. The aim for 2023 is to increase the cumulative sorting rate in all projects to over 70 per cent in line with the EU taxonomy.

![](_page_8_Figure_15.jpeg)

### **Construction waste sorting rate\* (%)**

\*Share of waste sorted at Finnish construction sites. Reported amounts do

Waste sorting rate, cumulative

not include demolition waste or surplus soil.

During the review period, SRV participated in World Green Building Week, which is the largest annual campaign for a sustainable built environment in the world.

## **Social responsibility**

### **Personnel**

SRV aims to be a safe, equal workplace with a good community spirit. SRV employed an average of 783 people in September 2023 (934 9/2022). Personnel work motivation was excellent in August (4.1/5.0). At the end of September 2023, SRV had 153 (188) female employees, representing 19.5 (21.3) per cent of personnel, and 630 (692) male employees, representing 80.5 (79.0) per cent of personnel.

![](_page_9_Figure_8.jpeg)

### **Personnel at period-end**

### **Customers**

SRV regularly measures customer satisfaction. The company's NPS B2B was 65 in January–September 2023 (target 53). B2B customers also rated how well SRV conducted business in accordance with its customer promise: 8.4/10 (target 8.5).

SRV's NPS B2C for January–September 2023 was 8 (target 39), and B2C customers gave the company a score of 7.1/10 for conducting business in accordance with the SRV customer promise (target 8.2). Customer feedback on the purchase and moving-in phases has been low compared to previous years (B2C), which impacts on NPS as expected. Going forward, the company will pay particular attention to customer satisfaction in the postmove phase.

### **Occupational health and safety**

SRV's long-term objective is to achieve a zero-accident frequency. The main theme of SRV's occupational safety in 2023 is to encourage a low threshold for intervening in neglect of occupational safety and to ensure a safe working environment for all those who work with the company. New operating methods to concretely address neglect of occupational safety were adopted at the beginning of 2023.

SRV's LTIF target for 2023 is 10 accidents per million hours worked. In September 2023, the Group's rolling 12 month LTIF for its own and subcontractors' personnel stood at 10 accidents per million hours worked.

![](_page_9_Figure_16.jpeg)

### **Lost time incident frequency rate (LTIF, rolling 12 months)\***

\* SRV + Subcontractors

The observation reporting rate at SRV in January– September was 2,452 observations per million hours worked (target: 2,200). A total of 12,754 observations were received. SRV uses weekly TR and MVR measurements to assess occupational safety on building construction sites (TR) and civil engineering sites (MVR). At the end of Q3 2023, the combined result of the Group's 12-month rolling TR and MVR measurements was 96.2 per cent. The company continuously monitors the accuracy of the measurement results by comparing them with calibration measurements made by SRV's Safety Team.

#### **Good Governance**

SRV is making goal-oriented efforts to promote responsible procurement. All approved SRV suppliers must answer ESG questions, on the basis of which they receive a sustainability rating. The company is seeking ways to even more effectively prevent labour exploitation and activities that violate the Code of Conduct.

In September, SRV held an Anti-Grey Economy Day at its construction sites with the aim of checking that contractors and their subcontractors meet the requirements to work on the company's sites. The

![](_page_10_Picture_1.jpeg)

employment rights of all third-country nationals were also reviewed during the reporting period to ensure they were in line with the work being done.

# <span id="page-11-0"></span>**Business Review**

The SRV Group's Corporate Executive Team is the chief operating decision-maker of the Group as defined in IFRS 8 Operating Segments. The Corporate Executive Team reviews business as a single operating segment. The new segment structure was introduced as from 1 January 2023.

### **January–September 2023**

 The Group's revenue declined by EUR 160.6 million to EUR 428.3 million (588.9 1–9/2022). Revenue from business construction rose by EUR 40.9 million to EUR 355.9 million, while revenue from housing construction was down EUR 178.5 million to EUR 72.4 million. The comparison figure for revenue includes the effect of the dissolution of construction profit margin eliminations amounting to EUR 14.5 million.

The Group's operative operating profit decreased to EUR -1.3 (18.7) million. Operative operating profit was weakened by a significant decrease in the volume of housing construction.

The Group's operating profit was EUR -9.9 (-70.1) million. Most of the company's remaining business operations in Russia were divested during the review period. The divestment had a EUR -9.5 million impact on operating profit, of which EUR -9.3 million consisted of the recognition of translation differences in income. The recognition of translation differences in income had no effect on the Group's shareholders' equity or the key figures in the balance sheet. The repayment of the loan receivable written down in the 2022 financial year had an impact of EUR 0.9 million on operating profit for the review period. The comparison figure for operating profit was impacted by, for instance, substantial write-downs of assets in Russia and the Fennovoima holding, the dissolution of profit margin eliminations and changes in the exchange rate of the rouble, which had a total impact of EUR -91.2 million.

The Group's profit before taxes totalled EUR -16.4 (-69.1) million. Financial income and expenses largely consist of EUR -2.6 (10.1) million in rouble exchange rate losses with no cash flow impact and EUR -4.2 (-3.4) million in interest expenses from IFRS 16 leases. The comparison figure was impacted by the aforementioned write-downs of Russian assets, EUR -91.2 million, write-downs of shareholder loans used to finance Russian associated companies, EUR -41.7 million, and EUR 38.6 million in financing arrangements made in 2022.

![](_page_11_Figure_10.jpeg)

![](_page_11_Figure_11.jpeg)

![](_page_11_Figure_12.jpeg)

The Group's earnings per share were EUR -1.0 (-6.5). Cash flow from operating activities was EUR -15.4 (-10.9) million and cash flow from investment activities was EUR 1.8 (-1.8) million. Cash flow from operating activities was impacted by the negative result for the review period and project-specific seasonal fluctuations.

At period-end, the Group's order backlog stood at EUR 995.6 (717.1) million. The sold share of the order backlog was 92.1 (87.8) per cent. New agreements valued at EUR 528.3 (337.3) million were signed in January–September. The most significant new business construction projects were the first implementation phase of the Laakso Joint Hospital in Helsinki, a large Kerto timber mill for Metsä Wood in Äänekoski, the Horisontti office skyscraper in Kalasatama, Helsinki, an annex to the National Museum of Finland in Helsinki, the multipurpose Sammontalo Building in Lappeenranta, the Okmetic factory building in Vantaa, and the Inkeroinen multipurpose building in Kouvola. New housing construction projects included a housing portfolio consisting of two residential buildings for a housing fund managed by eQ and a 101-unit apartment building in Verkkosaari for the City of Helsinki's Housing Production (ATT).

In addition, SRV has won projects valued at about EUR 1.1 billion that have not yet been entered into the order backlog. These include the next phases of the Laakso Joint Hospital in Helsinki and an office tower in Keilaniemi for a consortium formed by Mutual Pension Insurance Company Ilmarinen and HGR Property Partners Oy. Most of the revenue from projects is generated by contracts carried out under low-risk project management or alliance models.

## **July–September 2023**

The Group's revenue declined by EUR 39.9 million to EUR 146.9 million (186.8 7–9/2022). Revenue from business construction grew by EUR 35.2 million to EUR 130.5 million, while revenue from housing construction fell by EUR 72.3 million to EUR 16.3 million.

After a loss-making start to the year, the Group's operative operating profit swung into the black at EUR 4.6 (3.9) million. This improvement in the operative operating profit was supported by increased business construction volumes and better margins. The marked fall in housing construction volumes had a negative impact on operative operating profit.

![](_page_12_Figure_8.jpeg)

**Order backlog**

### **Order backlog for business and infrastructure construction**

![](_page_12_Figure_10.jpeg)

![](_page_12_Figure_11.jpeg)

## **Order backlog for housing construction**

The Group's operating profit was EUR -4.9 (5.5) million. Most of the company's remaining business operations in Russia were divested during the review period. The divestment had a EUR -9.5 million impact on operating profit, of which EUR -9.3 million consisted of the recognition of translation differences in income. The recognition of translation differences in income had no effect on the Group's shareholders' equity or the key figures in the balance sheet.

The Group's profit before taxes totalled EUR -6.5 (5.8) million. Financial income and expenses largely consist of EUR -0.5 (-0.5) million in rouble exchange rate losses with no cash flow impact and EUR -1.4 (-1.2) million in interest expenses from IFRS 16 leases. The Group's profit before taxes for the third quarter was EUR 3.0 million before the impact of the divestment of SRV Russia Oy.

The Group's earnings per share were EUR -0.5 (0.4).

Cash flow from operating and investment activities totalled EUR -4.6 (4.5) million. Cash flow was impacted by an increased need for net working capital due to projectspecific seasonal fluctuations.

New agreements valued at EUR 132.5 (135.0) million were signed in January–September. The quarter's new projects included a large Kerto timber mill for Metsä Wood in Äänekoski and an annex to the National Museum of Finland in Helsinki.

# <span id="page-14-0"></span>**Business and infrastructure construction**

In accordance with SRV's strategy, the company's business construction mainly consists of project management contracts and alliance projects for external clients, lifecycle projects, and SRV's own development projects. In addition to the basic profit margin, alliance projects offer the potential for extra earnings if the targets set for the project are achieved. Project management contracts are based either on a target price and guaranteed maximum price or a target budget. Like alliance projects, they offer the potential for extra earnings. In lifecycle projects, SRV is responsible for both the construction of the building and, for a separate service charge, also the property's maintenance for an agreed service period. A business development project is a project that is developed by SRV, but which is sold to an investor before construction begins. SRV bears the risks involved in both the construction and leasing of such projects. A business development project is a project that is developed by SRV, but which is sold to an investor before construction begins. SRV bears the risks involved in both the construction and leasing of such projects.

SRV's infrastructure construction consists of infrastructure solutions for the urban environment. The company implements projects under all types of contracts, ranging from prime contractor in large infrastructure projects to subcontractor in various foundation engineering projects. SRV's infrastructure construction includes different kinds of work such as rock construction, earthworks and foundation engineering, road construction and demanding concrete construction.

### **January–September 2023**

Revenue from business construction grew to EUR 355.9 (315.0) million and the order backlog rose to EUR 858.4 (511.5) million. Revenue grew in both project management and alliance contracts and development projects thanks to the start-up of the Horisontti office tower in Kalasatama. The growth of the order backlog, which began in the third quarter of the previous year, continued during the review period.

### **July–September 2023**

Revenue from business construction rose to EUR 130.5 (95.3) million. Revenue growth was seen in project management and alliance contracts in particular. The growth of the order backlog, which began in the third quarter of the previous year, continued during the review period.

### **Business and infrastructure projects under construction**

The most significant business and infrastructure projects currently under construction include a new ward building at Jorvi Hospital for HUS, the first implementation phase of Laakso Joint Hospital, a large Kerto timber mill in Äänekoski for Metsä Wood, business premises for Senate Properties in Helsinki, Vantaa and Oulu, the Horisontti office skyscraper in Kalasatama, Helsinki, a Wood City office, an annex to the National Museum of Finland in Helsinki, the Inkeroinen multipurpose building in Kouvola, the Wintteri education and wellbeing centre in Uusikaupunki, and demanding foundation engineering works in the Greater Helsinki Area.

### **Business and infrastructure projects under development**

SRV's project development is developing a diverse range of business premises, such as offices, hotels, logistics centres and retail premises in Finland's strongest urban centres. Examples of major projects currently under development include the Northern Deck in Tampere and, in the Greater Helsinki Area, Tower A (aka Pohjola Building) on Lapinmäentie, the Pressi office and logistics area in Vantaankoski and the metro centre in Kivenlahti.

### **Completed business and infrastructure projects**

In January–September SRV completed a multipurpose hall for Rauma Marine Constructions at Rauma shipyard, the basic renovation of Jorvi Hospital's operating theatres for HUS, the Terminal 2 expansion and alteration project at Helsinki Airport, a warehouse and logistics building in the Lieto district of Turku, a new hydropower plant for Koskienergia Oy in Kuhankoski, the Helsinki Upper Secondary School of Languages in Myllypuro, the Helsinki School of Natural Sciences in Kumpula, a new event centre in Kotka, basic renovation contracts for the Finnish National Theatre and Lahti City Hall, and the new Lamminrahka school centre in Kangasala.

| Land reserves,              |    |
|-----------------------------|----|
|                             |    |
| business construction       |    |
| 30 September 2023           |    |
| Building rights1), 1,000m2  | 93 |
| Land development agreements |    |
| Building rights1), 1,000m2  | 55 |

1) Building rights also include the estimated building rights/construction volume of unzoned land reserves and land areas covered by agreements in projects that are wholly or partly owned by SRV.

### **The largest ongoing business construction projects**

|              | Project | Completion | Completion |
|--------------|---------|------------|------------|
| Location     | type    | level, %*  | (estimate) |
|              |         |            |            |
|              |         |            |            |
| Helsinki     | Office  | 36         | Q2/2025    |
| Helsinki     | Office  | 51         | Q2/2024    |
|              |         |            |            |
|              |         | 0          | 0          |
| Espoo        | Public  | 10         | Q4/2025    |
| Helsinki     | Public  | 4          | 2030       |
| Oulu         | Public  | 24         | Q4/2025    |
| Äänekoski    | Retail  | 6          | Q3/2025    |
| Vantaa       | Public  | 29         | Q3/2024    |
| Helsinki     | Public  | 2          | Q2/2026    |
| Uusikaupunki | Retail  | 49         | Q1/2025    |
| Lappeenranta | Public  | 12         | Q2/2025    |
| Vantaa       | Retail  | 18         | Q1/2025    |
|              |         |            |            |

\*Situation at 30 September 2023

### <span id="page-16-0"></span>**Housing construction**

 In accordance with SRV's strategy, the company's housing construction mainly consists of residential development projects and developer-contracted housing projects in Finland's strongest growth centres, and particularly in the Helsinki Metropolitan Area. In addition, SRV selectively carries out housing construction projects for public and private sector clients. A developer-contracted project is a project that is developed by SRV. The company sells the residential units directly to consumers. SRV bears both the sale and construction risks in such projects. A residential development project is a project that is developed by SRV, but which is sold to an investor before construction begins. SRV bears the construction risks in such projects, which are recognised as income according to the percentage of completion. Construction contracts are construction projects that are launched by other parties but in which SRV serves as the main contractor.

### **January–September 2023**

 Revenue from housing construction declined to EUR 72.4 (250.9) million. Revenue decreased in both development and developer-contracted projects. Three (193) developer-contracted residential units were recognised as income during the review period. The order backlog for housing construction stood at EUR 137.2 (205.6) million. The new projects launched during the review period included a 101-unit apartment building in Verkkosaari, Helsinki for the City of Helsinki's Housing Production (ATT) and a housing portfolio consisting of two residential buildings for a housing fund managed by eQ: the residential building Hippoksenkatu 44 located in Kissanmaa, Tampere, and Asunto Oy Espoon Anna Sahlsténinkatu 15, located in Perkkaa, Espoo.

### **July–September 2023**

Revenue from housing construction declined to EUR 16.3 (88.6) million. Revenue decreased in both development and developer-contracted projects. Zero (124) developercontracted residential units were recognised as income during the review period. No new housing projects were started up during the review period.

### **Housing under construction**

At the end of September, SRV had a total of 541 (1,646) residential units under construction in Finland, located in growth centres. There were 62 (62) developer-contracted residential units under construction.

At the end of September, a total of 378 (1,479) units were under construction for investors in Helsinki, Espoo and Tampere. A total of 101 (105) units were under construction with competitive and negotiated contracts.

### **Completed and sold residential units, developer contracting**

In January, 23 residential units were completed in Aviapolis, Vantaa; they were recognised in unsold completed residential units when investor sales were cancelled after extensive negotiations. At the end of September, a total of 43 (26) completed units remained unsold. Three (29) developer-contracted residential units were sold during January–September.

### **Residential units recognised as income**

In January–September, three (193) developer-contracted residential units and parking spaces were recognised as income, generating total revenue of EUR 3.8 (47.1) million. Developer-contracted residential units are only recognised as income on completion, and only to the extent that they have been sold, after an average construction period of about 18 months.

### **Housing construction projects under development**

SRV focuses on residential project development in urban growth centres. SRV is currently developing housing construction projects in areas such as Kivenlahti, Espoonlahti, Kaitaa, Vermonniitty, Säterinkallio and Keilaniemi in Espoo and Lapinmäentie and Jätkäsaari in Helsinki as well as in Turku, Tampere and Oulu.

| Land reserves,              |     |
|-----------------------------|-----|
| housing construction        |     |
| 30 September 2023           |     |
| Building rights1), 1,000m2  | 143 |
| Land development agreements |     |
| Building rights1), 1,000m2  | 187 |

1) Building rights also include the estimated building rights/construction volume of unzoned land reserves and land areas covered by agreements in projects that are wholly or partly owned by SRV.

| Housing construction, Group        | 1-9/ | 1-9/  | change, | 7-9/ | 7-9/ | 1-12/ | Previous |
|------------------------------------|------|-------|---------|------|------|-------|----------|
| units                              | 2023 | 2022  | unit    | 2023 | 2022 | 2022  | 12 mo.   |
| Housing sales                      | 242  | 269   | -27     | 0    | 6    | 272   | 245      |
| developer contracting              | 3    | 29    | -26     | 0    | 6    | 32    | 6        |
| sold to investors and other sales  | 239  | 240   | -1      | 0    | 0    | 240   | 239      |
| Developer contracting              |      |       |         |      |      |       |          |
| start-ups                          | 0    | 62    | -62     | 0    | 62   | 85    | 0        |
| completed                          | 23   | 210   | -187    | 0    | 142  | 210   | 23       |
| recognised as income               | 3    | 193   | -190    | 0    | 124  | 196   | 6        |
| completed and unsold               | 43   | 26    | 17      |      |      | 23    |          |
| Under construction                 | 541  | 1,646 | -1,105  |      |      | 1,360 |          |
| contracts and negotiated contracts | 101  | 105   | -4      |      |      | 105   |          |
| sold to investors                  | 378  | 1,479 | -1,101  |      |      | 1,170 |          |
| developer contracting              | 62   | 62    | 0       |      |      | 85    |          |
| sold                               | 2    | 2     | 0       |      |      | 2     |          |
| unsold                             | 60   | 60    | 0       |      |      | 83    |          |
| sold, %                            | 3.2  | 3.2   |         |      |      | 2.4   |          |
| unsold, %                          | 96.8 | 96.8  |         |      |      | 97.6  |          |

| Order backlog, housing construction        | 1-9/  | 1-9/  | change,     | change, | 1-12/ |
|--------------------------------------------|-------|-------|-------------|---------|-------|
| (EUR million)                              | 2023  | 2022  | EUR million | %       | 2022  |
| Contracts and negotiated contracts         | 58.2  | 129.1 | -70.9       | -54.9 % | 74.6  |
| Under construction, sold                   | 0.8   | 0.8   | —           | — %     | 0.8   |
| Under construction, sold                   | 69.7  | 69.7  | —           | — %     | 73.9  |
| Completed and unsold developer contracting | 8.5   | 6.1   | 2.5         | 40.6 %  | 5.4   |
| Housing construction, total                | 137.2 | 205.6 | -68.5       | -33.3 % | 154.7 |

### <span id="page-18-0"></span>**Largest developer-contracted housing projects under construction**

| Project name                                                                | Location | Completion<br>(estimate) | Units     | Sold                    | For sale                 |         |  |  |  |
|-----------------------------------------------------------------------------|----------|--------------------------|-----------|-------------------------|--------------------------|---------|--|--|--|
| Kokardi                                                                     |          | Helsinki                 | Q4/2023   | 62                      | 2                        | 60      |  |  |  |
| Largest ongoing housing projects, investor projects and housing contracting |          |                          |           |                         |                          |         |  |  |  |
| Project name                                                                | Location |                          | Developer | Completion<br>level, %* | Completion<br>(estimate) |         |  |  |  |
| Visio                                                                       |          | Helsinki                 |           | Patrizia                | 89                       | Q4/2023 |  |  |  |
| Anna Sahlsténinkatu 15                                                      |          | Espoo                    |           | eQ                      | 16                       | Q4/2024 |  |  |  |
| Hippoksenkatu 44                                                            |          | Tampere                  |           | eQ                      | 45                       | Q2/2024 |  |  |  |
| Verkkosaarenkatu                                                            |          | Helsinki                 |           | HEKA                    | 1                        | Q2/2025 |  |  |  |

\*Situation at 30 September 2023

# **Russian business operations and other holdings**

In April 2022, SRV wrote down the balance sheet values of practically all of its shopping centres and other holdings in Russia and its holding in Fennovoima.

 In November 2022, SRV and its Finnish co-investors sold their holdings in Jupiter Realty 1 B.V., the company that owns the Okhta Mall shopping centre in St Petersburg, to the Cyprus-based property investor Geomare Investments Limited.

In August 2023, SRV divested the share capital of its subsidiary SRV Russia Oy to the Cypriot real estate investment company Geomare Investments Limited. The sold assets also include SRV's Russian subsidiaries and associated companies and SRV's remaining plot holdings in Russia, which are owned by these companies, as well as a minority interest in the 4Daily shopping centre located close to Moscow. The personnel responsible for SRV's business operations in Russia were also transferred in the transaction. The sales price of SRV Russia Oy was about EUR 4 million, which corresponded to the remaining balance sheet value of the company's operations in Russia. However, translation differences of EUR -9.3 million arising from old foreign exchange rate losses were recognised in income in connection with the transaction. The recognition of these translation differences did not have an impact on total shareholders' equity or the key figures in the balance sheet.

After this transaction, SRV's only remaining asset in Russia is a 50 per cent holding in the Pearl Plaza shopping centre in St Petersburg. The other owner of the shopping centre is the Chinese company Shanghai Industrial Investment (Holdings) Co. Ltd. SRV is actively continuing negotiations with its partner with the aim of selling its holding in Pearl Plaza as well.

SRV owns five per cent of Tampere Arena and has an 8.33 per cent holding in other Tampere Central Deck and Arena projects.

# <span id="page-19-0"></span>**Financing and financial position**

Financial income and expenses amounted to EUR -6.5 (1.1) million in January–September. Net financial expenses included EUR 1.4 (0.9) million in dividend and interest income, exchange rate differences amounting to EUR -2.6 (5.0) million arising from the conversion of subsidiary and associated company loans, which did not have an impact on cash flow, interest paid on derivatives and fair value changes amounting to EUR 0.5 (5.8) million, and interest expenses of EUR -0.8 (-5.4) million, of which EUR 0.6 (0.9) million was capitalised as of the beginning of the year. In addition, financial expenses included EUR -4.2 (-3.4) million in interest on lease agreement debts under IFRS 16 and EUR -1.5 (-0.1) million in other financial expenses.

Financial income and expenses amounted to EUR -1.6 (0.3) million in July-September. Net financial expenses included EUR 0.5 (0.2) million in dividend and interest income, exchange rate differences amounting to EUR -0.5 (-0.5) million arising from the conversion of subsidiary and associated company loans, which did not have an impact on cash flow, interest paid on derivatives and fair value changes amounting to EUR 0.0 (3.7) million, and interest expenses of EUR -0.2 (-1.4) million, of which EUR 0.2 (0.4) million was capitalised. In addition, financial expenses included EUR -1.4 (-1.2) million in interest on lease agreement debts under IFRS 16 and EUR -0.2 (-0.8) million in other financial expenses.

The equity ratio was 34.9 (36.3) and gearing was 84.8 (59.3) per cent. Excluding the impact of IFRS 16, the equity ratio was 49.5 (48.6) per cent and gearing was 5.1 (-5.4) per cent.

Capital employed stood at EUR 281.3 (273.9) million and the return on investment was -5.4 (-9.6) at the end of the review period. Excluding the impact of IFRS 16, capital employed amounted to EUR 178.4 (185.4) million. Net interest-bearing debt totalled EUR 117.7 (86.4) million at the end of the review period. Net interest-bearing debt saw year-on-year growth of EUR 31.3 million. Excluding the impact of IFRS 16, net interest-bearing debt totalled EUR 7.5 (-8.2) million, representing a rise of EUR 15.7 million on the comparison period. Housing corporation loans accounted for EUR 15.9 (7.1) million of the interest-bearing debt.

On 26 April, with the syndicate banks, the company agreed on and implemented the replacement of the earlier EUR 30 million committed revolving credit facility, EUR 40 million

committed project financing facility and EUR 63 million non-committed project financing facility with a new EUR 40 million committed revolving credit facility. The earlier EUR 40 million committed project financing facility and EUR 63 million non-committed project financing facility are being discontinued, and going forward project financing will be negotiated bilaterally with banks in accordance with normal market practices.

The interest margin of the new revolving credit facility is tied to three of SRV's key sustainability objectives: carbon dioxide emissions from the operations of the company and its partner network and the lost time injury frequency (LTIF). The new committed revolving credit facility is valid until April 2025 and includes a one-year extension option.

EUR 10 million of the company's new EUR 40 million committed revolving credit facility had been allocated as a committed overdraft facility by the end of the review period, and it remained unused at the end of the period. Of the remaining EUR 30 million, EUR 1 million was in use and EUR 29.0 million was unused.

At the end of the period, the Group's financing reserves totalled EUR 63.9 million (61.8), consisting of an undrawn committed revolving credit facility of EUR 29.0 million, an unused committed overdraft facility of EUR 10 million, cash and cash equivalents of EUR 24.9 million, and undrawn committed project financing amounting to EUR 0.0 million. Financing reserves were affected by EUR -13.6 (-12.7) million in cash flow from operating activities and investments, EUR -6.3 (-15.0) million in cash flow from financing activities, and an increase of EUR 10 million in the committed revolving credit facility from EUR 30 million to EUR 40 million.

<span id="page-20-0"></span>![](_page_20_Figure_3.jpeg)

![](_page_20_Figure_4.jpeg)

![](_page_20_Figure_5.jpeg)

The financial covenants of SRV's financing agreements are equity ratio, gearing, minimum operating margin, minimum liquidity, and certain other restrictions. The covenant levels of these financing agreements are determined on the basis of the accounting principles in force when the loan agreements were signed. Recognition of income on the basis of percentage of completion in developer contracting projects and the inclusion of capital loans into equity are taken into consideration in the calculation of the equity ratio covenant. The loan agreements also contain some other deviations from traditional covenant calculation methods. The main covenants of the financing agreements are presented in note 11 to the interim report.

SRV's investment commitments totalled EUR 19.6 (19.7) million at the end of the review period, and consisted of investments in Fennovoima and the Tampere Central Deck and Arena project. SRV was exposed to changes in the exchange rate of the rouble through its Russian subsidiaries, associated companies and joint ventures. As a result of write-downs of Russian holdings in 2022, and the sale in August 2023, the currency risk position has decreased considerably. The change in translation differences that impacted the comprehensive result and

shareholders' equity totalled EUR 10.0 million, of which EUR 9.3 million consisted of translation differences that were recognised in income in conjunction with the divestment of SRV Russia Oy. Translation differences recognised in equity totalled EUR -4.9 (-24.2) million at the end of the review period.

# **Short-term risks and uncertainties**

SRV's most significant short-term risks and uncertainties concern the upward trend in interest rates that has prevailed after the end of 2022, customer demand from investors and consumers, and tighter financing conditions. These factors might lead to delays or cancellations of planned projects, which in turn would have a negative impact on SRV's revenue and result.

The company's risks and risk management are described more extensively in the 2022 Notes to the Financial Statements and Annual Review, which were published on 1 March 2023 on the company's website: www.srv.fi/en/ investors/releases-and-publications/annual-reviewsfinancial-statements.

SRV has also published a Corporate Governance Statement, which includes a description of the main features of the company's risk management systems, as a separate report from the Annual Review. This statement was published on 1 March 2023 and is available on the company's website at: www.srv.fi/en/investors/cgi.

# **Changes in the Corporate Executive Team**

On 24 July 2023, Tero Karislahti, MSc. (Tech.), was appointed as SRV Group Plc's Senior Vice President, Regional Units and a member of the Corporate Executive Team, effective no later than 1 July 2024. Until then, Hannu Lokka, SRV's Executive Vice President, Strategic Project Development, and a member of the Corporate Executive Team, will be responsible for the Regional Units.

# <span id="page-21-0"></span>**General Meeting**

# **Annual General Meeting**

SRV's Annual General Meeting (AGM) was held on 27 March 2023. SRV published stock exchange releases on the decisions of the Annual General Meeting and the organisation of the Board of Directors on 27 March 2023. The stock exchange releases, presentations of the members of the Board of Directors and the minutes and decisions of the Annual General Meeting, including details, are available on the company's Internet site at www.srv.fi/ en/investors.

### **Board authorisations**

The Annual General Meeting of 27 March 2023 authorised the Board of Directors to decide on the buyback of a maximum of 1,700,000 of the company's own shares.

- The authorisation is valid until 30 June 2024.
- A maximum of 1,700,000 new shares or the reissue of treasury shares and/or the issue of special rights entitling to shares as referred to in Chapter 10, Section 1 of the Limited Liability Companies Act. The authorisation is valid until 30 June 2024.

# **Incentive plans**

.

At the end of the review period, SRV had two long-term incentive plans for key personnel of the Group:

- Performance Share Plan 2023 (President & CEO, Corporate Executive Team and other key employees)
- Cash-based reward plan (key employees excl. President & CEO)

Descriptions of the incentive plans are provided in a stock exchange release published on 28 March 2023: The Board of Directors of SRV Group Plc decided on new incentive plans for the Group's key employees – SRV.fi

# **Shares and shareholders**

SRV Group Plc's share capital is EUR 3.1 million. The share has no nominal value and the number of shares outstanding is 16,982,343. The company has one class of shares.

The closing price at Nasdaq Helsinki on 30 September 2023 was EUR 3.56 (EUR 3.52 on 30 September 2022). The highest share price during the reporting period was EUR 4.69 and the lowest EUR 3.00. On 30 September 2023, SRV had a market capitalisation of EUR 60.3 million (EUR 59.6 million on 30 September 2022), excluding the Group's treasury shares. 1.3 million shares were traded during the review period with a trade volume of EUR 5.1 million.

At the end of September 2023, the Group held 44,533 treasury shares (0.3 per cent of the total number of shares and combined number of votes). At the end of September, SRV had 10,484 registered shareholders (10,924 on 30 September 2022).

Espoo, 26 October 2023 Board of Directors

All forward-looking statements in this interim report are based on management's current expectations and beliefs about future events. The company's actual results and financial position may differ materially from the expectations and beliefs such statements contain due to a number of factors that have been presented in this interim report.

### **About this interim report**

This interim report has been prepared in accordance with IAS 34, and the disclosed information is unaudited. The figures in parentheses are the comparison figures for 2022.

### **Briefing, webcast and presentation materials**

A briefing for analysts, investors and media representatives will be held as a webcast on 26 October 2023, starting at 11:00 EEST. The webcast can be followed live at www.srv.fi/en/investors. The recording will be available on the website after the presentation. The materials will also be made available on the website.

### **Next interim report**

SRV Group Plc will publish its financial statement release for 2023 on 1 February 2024. During the silent period (1 January–1 February), the company will not comment on anything relating to market outlooks, business or earnings trends.

### **For further information, please contact:**

Saku Sipola, President & CEO, tel. +358 (0)40 551 5953, saku.sipola@srv.fi

Jarkko Rantala, CFO, tel. +358 (0)40 674 1949, jarkko.rantala@srv.fi

Miia Eloranta, Senior Vice President, Communications and Marketing, tel. +358 (0)50 441 4221, miia.eloranta@srv.fi

![](_page_23_Picture_0.jpeg)

| Key figures                                                                                | 1-9/   | 1-9/   | 7-9/  | 7-9/  | 1-12/  | Last 12 |
|--------------------------------------------------------------------------------------------|--------|--------|-------|-------|--------|---------|
| EUR million                                                                                | 2023   | 2022   | 2023  | 2022  | 2022   | Months  |
| Revenue                                                                                    | 428.3  | 588.9  | 146.9 | 186.8 | 770.1  | 609.5   |
| Operative operating profit1)                                                               | -1.3   | 18.7   | 4.6   | 3.9   | 18.9   | -1.1    |
| Operative operating profit, % revenue1)                                                    | -0.3   | 3.2    | 3.1   | 2.1   | 2.5    |         |
| Operating profit                                                                           | -9.9   | -70.1  | -4.9  | 5.5   | -76.4  | -16.2   |
| Operating profit, % revenue                                                                | -2.3   | -11.9  | -3.4  | 2.9   | -9.9   |         |
| Operating profit, excl. IFRS162)                                                           | -12.9  | -72.5  | -5.9  | 4.6   | -79.6  | -20.0   |
| Operating profit, % revenue excl. IFRS162)                                                 | -3.0   | -12.3  | -4.0  | 2.5   | -10.3  |         |
| Profit before taxes                                                                        | -16.4  | -69.1  | -6.5  | 5.8   | -79.1  | -26.4   |
| Profit before taxes, % of revenue                                                          | -3.8   | -11.7  | -4.4  | 3.1   | -10.3  |         |
| Net profit attributable to equity holders of the parent company                            | -14.4  | -76.7  | -6.6  | 5.3   | -85.7  | -23.4   |
| Return on equity, %                                                                        | -13.5  | -65.8  |       |       | -55.1  |         |
| Return on investment, %3)                                                                  | -5.4   | -9.6   |       |       | -10.1  |         |
| Return on investment % excl. IFRS16 2)3)                                                   | -10.5  | -14.4  |       |       | -14.9  |         |
| Capital employed                                                                           | 281.3  | 273.9  |       |       | 272.0  |         |
| Capital employed excl. IFRS162)                                                            | 178.4  | 185.4  |       |       | 186.4  |         |
| Equity ratio %                                                                             | 34.9   | 36.3   |       |       | 36.3   |         |
| Equity ratio excl. IFRS16, %2)                                                             | 49.5   | 48.6   |       |       | 48.2   |         |
| Net interest-bearing debt                                                                  | 117.7  | 86.4   |       |       | 80.5   |         |
| Net interest-bearing debt excl. IFRS162)                                                   | 7.5    | -8.2   |       |       | -11.5  |         |
| Net gearing ratio, %                                                                       | 84.8   | 59.3   |       |       | 55.1   |         |
| Net gearing ratio excl. IFRS16, %2)                                                        | 5.1    | -5.4   |       |       | -7.5   |         |
|                                                                                            |        |        |       |       |        |         |
| Order backlog                                                                              | 995.6  | 717.1  |       |       | 838.8  |         |
| New agreements                                                                             | 528.3  | 337.3  | 132.5 | 135.0 | 624.6  |         |
| Personnel on average<br>Earnings per share 4)                                              | 754    | 963    |       |       | 948    |         |
|                                                                                            | -1.0   | -6.5   | -0.5  | 0.4   | -6.6   | -1.1    |
| Earnings per share (diluted) 4)                                                            | -1.0   | -6.5   | -0.5  | 0.4   | -6.6   | -1.1    |
| Equity per share                                                                           | 8.2    | 8.6    |       |       | 8.6    |         |
|                                                                                            |        |        |       |       |        |         |
| Equity per share (without hybrid bond), euros                                              | 6.2    | 6.6    |       |       | 6.7    |         |
| Dividend per share, euros 4)                                                               | 0.0    | 0.0    |       |       | 0.0    |         |
| Dividend payout ratio, %                                                                   | 0.0    | 0,0    |       |       | 0.0    |         |
| Dividend yield, %                                                                          | 0.0    | 0,0    |       |       | 0.0    |         |
| Price per earnings ratio                                                                   | neg.   | neg.   |       |       | neg.   |         |
| Share price development 4)                                                                 |        |        |       |       |        |         |
| Share price at the end of the period, eur                                                  | 3.6    | 3.5    |       |       | 3.8    |         |
| Average share price, eur                                                                   | 3.9    | 9.5    |       |       | 9.2    |         |
| Lowest share price, eur                                                                    | 3.0    | 3.2    |       |       | 3.2    |         |
| Highest share price, eur                                                                   | 4.7    | 16.1   |       |       | 16.1   |         |
| Market capitalisation at the end of the period                                             | 60.3   | 59.6   |       |       | 64.4   |         |
| Trading volume, 1 000 units                                                                | 1,309  | 23,518 |       |       | 25,033 |         |
| Trading volume, %                                                                          | 7.7    | 196.3  |       |       | 189.2  |         |
| Weighted average number of shares outstanding during the period, 1<br>000 units5)          | 16,938 | 11,982 |       |       | 13,231 |         |
| Weighted average number of shares outstanding during the period<br>(diluted) 1 000 units5) | 16,938 | 11,982 |       |       | 13,231 |         |
| Number of shares outstanding at the end of the period,1 000 units5)                        | 16,938 | 16,938 |       |       | 16,938 |         |

1.The reconciliation calculation for operative operating profit can be found underneath this table

2.The effects of IFRS16 have been adjusted from the figure.

3. In calculation of the key ratios, only the profit for the review period has been annualised.

4.SRV executed reverse share split on 4 July 2022 to the effect that each forty shares of the company was

merged into one share. Share-specific figures of 1-3/2022 have been adjusted accordingly.

![](_page_24_Picture_0.jpeg)

### Alternative performance measures used in interim reporting

The company discloses certain other widely used performance measures that can for the most part be derived from the income statement and balance sheet. The company also publishes key figures excluding effect of IFRS 16. The formulas for these performance measures are provided in the next page. In the company's view, these measures clarify the result of operations and financial position based on the income statement and balance sheet.

### SRV presents key figures for operative operating profit and operating profit margin in the interim report

The key figure for operative operating profit is considered to provide a better view of the Group's operations when comparing the reported period to earlier periods. The currency exchange rate gains and losses of associated companies as well as income and expenses from hedging and items affecting comparability are eliminated from operating profit. The currency exchange rate gains and losses of associated companies are included above operating profit on the line "share of profits of associated and joint venture companies". Income and expenses from currency hedging are included above operating profit on the line "Income and expenses on currency derivatives".

### **Operative operating profit's reconciliation table**

|                                                                             | 1-9/ | 1-9/   | 7-9/ | 7-9/ | 1-12/  |
|-----------------------------------------------------------------------------|------|--------|------|------|--------|
| (EUR million)                                                               | 2023 | 2022   | 2023 | 2022 | 2022   |
| Operative operating profit in accordance with the new definition            | -1.3 | 18.7   | 4.6  | 3.9  | 18.9   |
| +/-exhange rate gains and losses of associated companies and joint ventures | 0.0  | 10.1   | 0.0  | -0.5 | 7.3    |
|                                                                             | 0.0  | 0.0    | 0.0  | 0.0  | 0.0    |
| +/- Items affecting comparability                                           |      |        |      |      |        |
| +/- Impairments of assets and their reversal                                | -8.6 | -101.3 | -9.6 | -0.3 | -108.9 |
| +/- gains and losses from exceptional sales of assets                       | 0.0  | 2.4    | 0.0  | 2.4  | 6.3    |
| +/- income and expenses due to changes in the Group structure               | 0.0  | 0.0    | 0.0  | 0.0  | 0.0    |
| +/- Items affecting comparability in total                                  | -8.6 | -98.9  | -9.6 | 2.1  | -102.5 |
| Operating profit                                                            | -9.9 | -70.1  | -4.9 | 5.5  | -76.4  |

### **SRV presents key figures excluding effect of IFRS 16 standard**

The company publishes alternative key figures, that is, IFRS 16 key figures that have been adjusted to exclude the impact of the IFRS 16 Leases standard on the balance sheet and result.

![](_page_25_Picture_0.jpeg)

### Calculation of key figures

| Return on equity, %                                 | = | 100 X | Net profit for the period                                                                                                                                                                             |
|-----------------------------------------------------|---|-------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|                                                     |   |       | Total equity, average                                                                                                                                                                                 |
| Capital employed                                    | = |       | Total assets – non-interest bearing debt – deferred tax liabilities – provisions                                                                                                                      |
|                                                     |   |       | Total assets – non-interest bearing debt – deferred tax liabilities – provisions – property, plant                                                                                                    |
| Capital employed, excl. IFRS16                      | = |       | and equipment, right -of-use asset – inventories, right -of-use asset                                                                                                                                 |
| Return on investment, %                             |   |       | Operating profit + interest and other financial income (incl. exchange rate gains and losses) +<br>Financial receivables write-down and sales loss (interim periods annualized)                       |
|                                                     |   |       | Invested capital, average                                                                                                                                                                             |
| Return on investment, % excl. IFRS16                | = | 100 X | Operating profit excl. IFRS16 bookings + interest and other financial income (incl. exchange rate<br>gains and losses) + Financial receivables write-down and sales loss (interim periods annualized) |
|                                                     |   |       | Capital employed excl. IFRS16, average                                                                                                                                                                |
|                                                     |   |       | Total equity                                                                                                                                                                                          |
| Equity ratio, %                                     | = | 100 X | Total assets – advances received                                                                                                                                                                      |
|                                                     |   |       | Total equity – IFRS16 depreciations, leases and interest and financial expenses recoqnised in                                                                                                         |
|                                                     |   | 100 X | income statement                                                                                                                                                                                      |
| Equity ratio,% excl. IFRS16                         | = |       | Total assets – advances received – IFRS16 depreciations, leases and interest and financial                                                                                                            |
|                                                     |   |       | expenses recoqnised in income statement                                                                                                                                                               |
| Net interest-bearing debt                           | = |       | Interest-bearing debt – cash and cash equivalents                                                                                                                                                     |
| Net interest-bearing debt excl. IFRS16              | = |       | Interest-bearing debt - interest-bearing lease liabilities – cash and cash equivalents                                                                                                                |
|                                                     |   |       | Net interest-bearing debt                                                                                                                                                                             |
| Net gearing ratio, %                                | = | 100 X | Total equity                                                                                                                                                                                          |
|                                                     |   |       | Interest-bearing debt - interest-bearing lease liabilities – cash and cash equivalents                                                                                                                |
| Net interest-bearing debt excl. IFRS16              | = | 100 X |                                                                                                                                                                                                       |
|                                                     |   |       | Total equity – IFRS16 depreciations, leases, interest and financial expenses recoqnized in income<br>statement                                                                                        |
|                                                     |   |       |                                                                                                                                                                                                       |
|                                                     |   |       |                                                                                                                                                                                                       |
| Earnings per share attributable to equity olders of | = |       | Result for the period – non-controlling interest – hybrid bond interest, tax adjusted                                                                                                                 |
| the parent company                                  |   |       | Average number of shares                                                                                                                                                                              |
| Earnings per share attributable to equity holders   | = |       | Result for the period – non-controlling interest – hybrid bond interest, tax adjusted                                                                                                                 |
| of the parent company (diluted)                     |   |       | Average number of shares (diluted)                                                                                                                                                                    |
| Equity per share                                    | = |       | Shareholders' equity attributable to equity holders of the parent company                                                                                                                             |
|                                                     |   |       | Average number of shares at end of period                                                                                                                                                             |
|                                                     | = |       | Shareholders' equity attributable to equity holders of the parent company – hybrid bond                                                                                                               |
| Equity per share (without hybrid bond)              |   |       | Average number of shares at end of period                                                                                                                                                             |
|                                                     |   |       | Share price at end of period                                                                                                                                                                          |
| Price per earnings ratio (P/E-ratio)                | = |       | Earnings per share                                                                                                                                                                                    |
|                                                     |   |       | Dividend per share                                                                                                                                                                                    |
| Dividend payout ratio, %                            | = |       | Earnings per share                                                                                                                                                                                    |
|                                                     |   |       | Dividend per share                                                                                                                                                                                    |
| Dividend yield, %                                   | = |       | Share price at end of period                                                                                                                                                                          |
|                                                     |   |       | Number of shares traded in euros during the period                                                                                                                                                    |
| Average share price                                 | = | 100 X | Number of shares traded during the period                                                                                                                                                             |
| Market capitalisation at the end of the period      | = | 100 X | Number of shares outstanding at the end of the period x share price at the end of the period                                                                                                          |
| Trading volume                                      | = |       | Number of shares traded during the period and their percentage of the weighted average number<br>of shares outstanding                                                                                |

![](_page_26_Picture_0.jpeg)

## **Group information by quarter**

| SRV Group                                       | 7-9/  | 4-6/  | 1-3/  | 10-12/ | 7-9/  | 4-6/  | 1-3/   |
|-------------------------------------------------|-------|-------|-------|--------|-------|-------|--------|
| EUR million                                     | 2023  | 2023  | 2023  | 2022   | 2022  | 2022  | 2022   |
| Revenue                                         | 146.9 | 143.1 | 138.3 | 181.2  | 186.8 | 211.4 | 190.7  |
| Operative operating profit                      | 4.6   | -3.9  | -2.0  | 0.2    | 3.9   | 9.8   | 4.9    |
| Operative operating profit %                    | 3.2   | -2.8  | -1.4  | 0.1    | 2.1   | 4.6   | 2.6    |
| Operating profit                                | -4.9  | -3.0  | -2.0  | -6.3   | 5.5   | 10.1  | -85.7  |
| Operating profit %                              | -3.4  | -2.1  | -1.4  | -3.5   | 2.9   | 4.8   | -44.9  |
| Financial income and expenses, total            | -1.6  | -2.5  | -2.5  | -3.8   | 0.3   | 43.6  | -42.8  |
| Profit before taxes                             | -6.5  | -5.5  | -4.4  | -10.0  | 5.8   | 53.7  | -128.5 |
| Order backlog                                   | 995.6 | 993.1 | 871.0 | 838.8  | 717.1 | 745.9 | 858.0  |
| New agreements                                  | 132.5 | 245.9 | 149.9 | 287.2  | 135.0 | 72.3  | 130.1  |
| Earnings per share, eur2)                       | -0.51 | -0.36 | -0.23 | -0.82  | 0.39  | 5.36  | -14.25 |
| Equity per share, eur2)                         | 6.21  | 6.04  | 6.46  | 6.65   | 6.62  | 6.31  | 1.18   |
| Share closing price, eur                        | 3.6   | 3.8   | 3.7   | 3.8    | 3.5   | 5.2   | 11.4   |
| Equity ratio, %                                 | 34.9  | 34.3  | 35.0  | 36.3   | 36.3  | 33.3  | 6.4    |
| Equity ratio, % excl. IFRS161)                  | 49.5  | 48.8  | 49.2  | 48.2   | 48.6  | 43.9  | 9.7    |
| Net interest-bearing liabilities                | 117.7 | 113.1 | 117.4 | 80.5   | 86.4  | 90.1  | 197.7  |
| Net interest-bearing liabilities excl. IFRS162) | 7.5   | 2.2   | 6.1   | -11.5  | -8.2  | -4.6  | 110.1  |
| Net gearing, %                                  | 84.8  | 83.3  | 82.2  | 55.1   | 59.3  | 64.2  | 748.4  |
| Net gearing, % excl. IFRS161)                   | 5.1   | 1.6   | 4.1   | -7.5   | -5.4  | -3.1  | 343.2  |

1.The effects of IFRS16 have been adjusted from the figure.

2.Figures for the comparison period are share issue and reverse share split adjusted.

![](_page_27_Picture_0.jpeg)

| Order backlog EUR million                       | 9/2023 | 6/2023 | 3/2023 | 12/2022 | 9/2022 |
|-------------------------------------------------|--------|--------|--------|---------|--------|
| - business construction                         | 858.4  | 837.2  | 742.4  | 684.0   | 511.5  |
| - housing construction                          | 137.2  | 155.9  | 128.5  | 154.7   | 205.6  |
| Group, total                                    | 995.6  | 993.1  | 871.0  | 838.8   | 717.1  |
| sold order backlog                              | 917.3  | 914.8  | 792.7  | 747.8   | 629.7  |
| unsold order backlog                            | 78.3   | 78.3   | 78.3   | 91.0    | 87.4   |
| Order backlog, housing construction in<br>Group |        |        |        |         |        |
| EUR million                                     | 9/2023 | 6/2023 | 3/2023 | 12/2022 | 9/2022 |
| Negotiation and construction contracts          | 58     | 77     | 49     | 75      | 129    |

| Housing construction, total | 137 | 156 | 129 | 155 | 206 |
|-----------------------------|-----|-----|-----|-----|-----|
| Completed and unsold        | 9   | 9   | 9   | 5   | 6   |
| Under construction, unsold  | 70  | 70  | 70  | 74  | 70  |
| Under construction, sold    | 1   | 1   | 1   | 1   | 1   |

| Housing production in Group            | 7-9/ | 4-6/  | 1-3/ | 10-12/ | 7-9/  |
|----------------------------------------|------|-------|------|--------|-------|
| (units)                                | 2023 | 2023  | 2023 | 2022   | 2022  |
| Housing sales, total                   | 0    | 241   | 1    | 3      | 6     |
| sales, developer contracting           | 0    | 2     | 1    | 3      | 6     |
| sales, negotiation contracts           | 0    | 239   | 0    | 0      | 0     |
| Developer contracting                  |      |       |      |        |       |
| - start-ups                            | 0    | 0     | 0    | 23     | 62    |
| - completed                            | 0    | 0     | 23   | 0      | 142   |
| -recognized in revenue                 | 0    | 2     | 1    | 3      | 124   |
| - completed and unsold                 | 43   | 43    | 45   | 23     | 26    |
| Under construction, total              | 541  | 1,056 | 879  | 1,360  | 1,646 |
| construction and negotiation contracts | 101  | 101   | 0    | 105    | 105   |
| negotiated contracts                   | 378  | 893   | 817  | 1,170  | 1,479 |
| developer contracting                  | 62   | 62    | 62   | 85     | 62    |
| - of which sold                        | 2    | 2     | 2    | 2      | 2     |
| - of which unsold                      | 60   | 60    | 60   | 83     | 60    |

![](_page_28_Picture_0.jpeg)

## **SRV GROUP PLC THE INTERIM REPORT 1 January - 30 September 2023, tables**

- [1\) Consolidated income statement and consolidated statement of comprehensive income](#page-29-0)
- [2\) Consolidated balance sheet](#page-30-0)
- [3\) Consolidated cash flow statement](#page-31-0)
- [4\) Statement of changes in Group equity](#page-32-0)
- [5\) Accounting policies](#page-34-0)
- [6\) Group commitments and contingent liabilities](#page-36-0)
- [7\) Financial assets and liabilities by measurement categories](#page-37-0)
- [8\) Breakdown of revenue](#page-39-0)
- [9\) Group and segment information](#page-39-0)
- [10\) Inventories](#page-39-0)
- [11\) Changes in financial position](#page-39-0)
- [12\) Currency Risks](#page-41-0)
- [13\) Financial income](#page-41-0)
- [14\) Russia business operations and divestment](#page-41-0)
- [15\) Related party transactions](#page-43-0)
- [16\) Events after period end](#page-43-0)

# <span id="page-29-0"></span>**1) Consolidated income statement and statement of comprehensive income**

| Consolidated income statement                       |      | 1-9/   | 1-9/   | change | change | 7-9/   |        | 7-9/ change | change | 1-12/  | Last 12 |
|-----------------------------------------------------|------|--------|--------|--------|--------|--------|--------|-------------|--------|--------|---------|
| EUR million                                         | Note | 2023   | 2022   | MEUR   | %      | 2023   | 2022   | MEUR        | %      | 2022   | Months  |
| Revenue                                             | 8    | 428.3  | 588.9  | -160.6 | -27.3  | 146.9  | 186.8  | -39.9       | -21.4  | 770.1  | 609.5   |
| Other operating income                              |      | 0.2    | 0.6    | -0.3   | -61.6  | 0.1    | 0.1    | -0.1        | -57.7  | 0.6    | 0.2     |
| Change in inventories of finished goods and work in |      |        |        |        |        |        |        |             |        |        |         |
| progress                                            |      | -3.9   | -90.3  | 86.4   | -95.7  | 5.4    | -12.5  | 17.9        | -143.3 | -88.4  | -2.0    |
| Use of materials and services                       |      | -363.7 | -441.2 | 77.5   | -17.6  | -129.6 | -148.3 | 18.7        | -12.6  | -600.6 | -523.0  |
| Employee benefit expenses                           |      | -49.2  | -55.4  | 6.2    | -11.2  | -14.5  | -16.3  | 1.8         | -11.0  | -74.3  | -68.2   |
| Share of profits of associated and joint venture    |      |        |        |        |        |        |        |             |        |        |         |
| companies                                           |      | 0.7    | 10.9   | -10.2  | -93.9  | 0.5    | -0.2   | 0.7         |        | -1.3   | -11.5   |
| Depreciation                                        |      | -4.2   | -3.9   | -0.4   | 9.0    | -1.4   | -1.3   | -0.2        | 11.9   | -5.1   | -5.5    |
| Impairments of investments                          |      | -9.3   | -71.1  | 61.7   | -86.9  | -10.1  | 0.2    | -10.3       |        | -65.0  | -3.3    |
| Other operating expenses                            |      | -8.8   | -8.7   | -0.1   | 1.3    | -2.2   | -3.1   | 0.9         | -29.7  | -12.3  | -12.4   |
| Operating profit                                    |      | -9.9   | -70.1  | 60.2   | -85.8  | -4.9   | 5.5    | -10.4       | -190.6 | -76.4  | -16.2   |
| Financial income                                    | 13   | 1.4    | 45.7   | -44.3  | -96.9  | 0.5    | -0.3   | 0.8         | -236.8 | 42.8   | -1.5    |
| Financial expenses                                  |      | -7.8   | -2.9   | -5.0   | 173.3  | -2.0   | 0.7    | -2.7        | -409.1 | -3.7   | -8.6    |
| Impairments of financial assets                     |      | 0.0    | -41.7  | 41.7   |        | 0.0    | 0.0    | 0.0         |        | -41.7  | 0.0     |
| Financial income and expenses, total                |      | -6.5   | 1.1    | -7.6   |        | -1.6   | 0.3    | -1.9        |        | -2.7   | -10.3   |
| Profit before taxes                                 |      | -16.4  | -69.1  | 52.6   | -76.2  | -6.5   | 5.8    | -12.3       | -212.8 | -79.1  | -26.5   |
| Income taxes                                        |      | 2.0    | -7.7   | 9.7    | -126.3 | 0.0    | -0.4   | 0.4         | -88.5  | -6.6   | 3.1     |
| Net profit for the period                           |      | -14.4  | -76.7  | 62.3   | -81.2  | -6.6   | 5.3    | -11.9       | -222.6 | -85.7  | -23.4   |
| Attributable to                                     |      |        |        |        |        |        |        |             |        |        |         |
| Equity holders of the parent company                |      | -14.4  | -76.7  | 62.3   |        | -6.6   | 5.3    | -11.9       |        | -85.7  | -23.4   |
| Earnings per share attributable to equity holders   |      |        |        |        |        |        |        |             |        |        |         |
| of the parent company 1)                            |      | -1.0   | -6.5   |        |        | -0.5   | 0.4    |             |        | -6.6   | -1.1    |
| Earnings per share attributable to equity holders   |      |        |        |        |        |        |        |             |        |        |         |
| of the parent company 1)                            |      | -1.0   | -6.5   |        |        | -0.5   | 0.4    |             |        | -6.6   | -1.1    |

1) The key figure for the comparison period has been adjusted, taking the 2022 share issues and reverse share split into account.

| Consolidated statement of comprehensive                                                      | 1-9/  | 1-9/  | 7-9/ | 7-9/ | 1-12/ | Last 12 |
|----------------------------------------------------------------------------------------------|-------|-------|------|------|-------|---------|
| income<br>EUR million                                                                        | 2023  | 2022  | 2023 | 2022 | 2022  | Months  |
| Net profit for the period                                                                    | -14.4 | -76.7 | -6.6 | 5.3  | -85.7 | -23.4   |
|                                                                                              |       |       |      |      |       |         |
| Other comprehensive income                                                                   |       |       |      |      |       |         |
| Gains and losses arising from translating the financial<br>statements of a foreign operation | 10.1  | -2.5  | 9.3  | -2.2 | -4.0  | 8.6     |
| Share of other comprehensive income of associated<br>and joint ventures companies            | -0.1  | -3.5  | -0.1 | 0.0  | 7.2   | 10.6    |
| Other comprehensive income for the period, net of<br>tax                                     | 10.0  | -6.0  | 9.3  | -2.2 | 3.2   | 19.2    |
| The share of comprehensive income attributable to<br>equity holders of the parent company    | 10.0  | -6.0  | 9.3  | -2.2 | 3.2   | 19.2    |
| Total comprehensive income for the period                                                    | -4.4  | -82.8 | 2.7  | 3.1  | -82.5 | -4.1    |
| Attributable to                                                                              |       |       |      |      |       |         |
| Equity holders of the parent company                                                         | -4.4  | -82.8 | 2.7  | 3.1  | -82.5 | -4.1    |
| Non-Controlling interests                                                                    | 0.0   | 0.0   | 0.0  | 0.0  | 0.0   | 0.0     |

<span id="page-30-0"></span>![](_page_30_Picture_0.jpeg)

# **2) Consolidated balance sheet**

| Consolidated balance sheet EUR million<br>Note                     | 30 September<br>2023 | 30 September<br>2022 | change, % | 31 December<br>2022 |
|--------------------------------------------------------------------|----------------------|----------------------|-----------|---------------------|
| ASSETS                                                             |                      |                      |           |                     |
| Non-current assets                                                 |                      |                      |           |                     |
| Property, plant and equipment                                      | 4.5                  | 4.2                  | 5.2       | 4.1                 |
| Property, plant and equipment, right -of-use asset                 | 7.7                  | 9.1                  | -14.7     | 8.8                 |
| Goodwill                                                           | 1.7                  | 1.7                  | 0.0       | 1.7                 |
| Other intangible assets                                            | 0.7                  | 0.7                  | 3.0       | 0.7                 |
| Shares in associated companies and joint ventures                  | 3.1                  | 3.4                  | -7.9      | 2.1                 |
| Other financial assets                                             | 6.8                  | 10.1                 | -32.6     | 7.8                 |
| Receivables                                                        | 13.2                 | 13.0                 | 1.7       | 14.2                |
| Deferred tax assets                                                | 37.6                 | 36.2                 | 4.0       | 37.5                |
| Non-current assets, total                                          | 75.5                 | 78.5                 | -3.8      | 77.0                |
| Current assets                                                     |                      |                      |           |                     |
| Inventories<br>10                                                  | 154.8                | 155.8                | -0.6      | 162.8               |
| Inventories, right -of-use asset<br>10                             | 93.3                 | 77.9                 | 19.8      | 75.1                |
| Trade and other receivables                                        | 91.8                 | 107.2                | -14.4     | 88.3                |
| Loan receivables from associated companies and joint ventures      | 0.3                  | 0.0                  | 100.0     | 0.0                 |
| Cash and cash equivalents                                          | 24.9                 | 41.8                 | -40.5     | 45.3                |
| Current assets, total                                              | 365.0                | 382.6                | -4.6      | 371.5               |
| ASSETS, TOTAL                                                      | 440.5                | 461.1                | -4.5      | 448.5               |
|                                                                    | 30 September         | 30 September         |           | 31 December         |
| Consolidated balance sheet EUR million                             | 2023                 | 2022                 | change, % | 2022                |
| EQUITY AND LIABILITIES                                             |                      |                      |           |                     |
| Equity attributable to equity holders of the parent company        |                      |                      |           |                     |
| Share capital                                                      | 3.1                  | 3.1                  | 0.0       | 3.1                 |
| Invested free equity fund                                          | 303.6                | 303.6                | 0.0       | 303.6               |
| Translation differences                                            | -4.9                 | -24.2                | -79.6     | -14.9               |
| Hybrid bond                                                        | 33.5                 | 33.5                 | 0.0       | 33.5                |
| Retained earnings                                                  | -196.5               | -170.3               | 15.4      | -179.0              |
| Equity attributable to equity holders of the parent company, total | 138.7                | 145.7                | -4.8      | 146.2               |
| Non-controlling interests                                          | 0.0                  | 0.0                  |           | 0.0                 |
| Total equity<br>4                                                  | 138.7                | 145.7                | -4.8      | 146.2               |
| Non-current liabilities                                            |                      |                      |           |                     |
| Deferred tax liabilities                                           | 0.2                  | 1.3                  | -83.2     | 1.1                 |
| Provisions                                                         | 10.0                 | 11.6                 | -13.9     | 12.2                |
| Interest-bearing liabilities excl. lease liabilities               | 30.5                 | 23.6                 | 29.5      | 23.8                |
| Interest-bearing lease liabilities                                 | 107.7                | 92.2                 | 16.8      | 89.5                |
| Other liabilities                                                  | 5.6                  | 8.8                  | -36.9     | 6.3                 |
| Non-current liabilities, total                                     | 153.9                | 137.5                | 12.0      | 133.0               |
| Current liabilities                                                |                      |                      |           |                     |
| Trade and other payables                                           | 138.0                | 158.5                | -12.9     | 148.0               |
| Current tax payables (based on profit for the review period)       | 0.0                  | 0.0                  | -22.5     | 1.0                 |
| Provisions                                                         | 5.4                  | 7.0                  | -22.5     | 7.9                 |
| Interest-bearing liabilities excl. lease liabilities               | 1.8                  | 10.0                 | -81.5     | 10.0                |
| Interest-bearing lease liabilities                                 | 2.5                  | 2.4                  | 4.1       | 2.4                 |
| Current liabilities, total                                         | 147.8                | 178.0                | -16.9     | 169.4               |
| Liabilities, total                                                 | 301.8                | 315.4                | -4.3      | 302.3               |
| EQUITY AND LIABILITIES, total                                      | 440.5                | 461.1                | -4.5      | 448.5               |

<span id="page-31-0"></span>![](_page_31_Picture_0.jpeg)

# **3) Consolidated cash flow statement**

|                                                              | 1-9/   | 1-9/   | 1-12/  | Last 12 |
|--------------------------------------------------------------|--------|--------|--------|---------|
| EUR Million                                                  | 2023   | 2022   | 2022   | Months  |
| Cash flows from operating activities                         |        |        |        |         |
| Cash receipts from customers                                 | 422.4  | 608.1  | 805.4  | 619.7   |
| Cash receipts from other operating income                    | 0.2    | 0.6    | 0.6    | 0.2     |
| Cash paid to suppliers and employees                         | -431.8 | -607.8 | -802.5 | -626.5  |
| Net cash before interests and taxes                          | -9.2   | 0.9    | 3.5    | -6.7    |
| Interests received and other financial income                | 0.4    | 0.3    | 0.4    | 0.5     |
| Interests paid and other expenses from financial costs       | -6.5   | -11.8  | -13.7  | -8.4    |
| Income taxes paid or received                                | -0.1   | -0.3   | -0.3   | -0.1    |
| Cash flows from operating activities                         | -15.4  | -10.9  | -10.1  | -14.7   |
| Cash flow from investing activities                          |        |        |        |         |
| Purchase of tangible and intangible assets                   | -1.5   | -2.2   | -2.5   | -1.8    |
| Sale of tangible and intangible assets                       | 0.1    | 0.5    | 0.5    | 0.1     |
| Purchase of investments                                      | -1.1   | -0.1   | -0.1   | -1.1    |
| Proceeds from sale of investments                            | 1.1    | 0.0    | 0.0    | 1.1     |
| Subsidiary shares sold                                       | 1.4    | 0.0    | 0.0    | 1.4     |
| Investments in associated companies and joint ventures       | -0.1   | -0.0   | -0.0   | -0.1    |
| Associated companies and joint ventures sold                 | 0.0    | 0.0    | 4.2    | 4.2     |
| Loans granted                                                | -2.3   | 0.0    | -0.0   | -2.3    |
| Proceeds from repayments of loans                            | 4.2    | 0.0    | 0.0    | 4.2     |
| Net cash used in investing activities                        | 1.8    | -1.8   | 2.1    | 5.7     |
|                                                              |        |        |        |         |
| Cash flows from operating and investing activities in total  | -13.6  | -12.7  | -8.0   | -8.9    |
| Cash flow from financing activities                          |        |        |        |         |
| Gross cash from share issue                                  | 0.0    | 34.8   | 34.8   | -0.0    |
| Share issue costs                                            | 0.0    | -2.7   | -2.7   | 0.0     |
| Proceeds from loans                                          | 0.0    | 1.0    | 1.0    | 0.0     |
| Repayment of loans                                           | -10.0  | -31.7  | -31.7  | -10.0   |
| Hybrid bond costs                                            | 0.0    | -0.7   | -0.7   | 0.0     |
| Hybrid bond intrests                                         | -2.8   | -2.0   | -2.0   | -2.8    |
| Change in housing corporation loans                          | 8.5    | -11.0  | -10.7  | 8.8     |
| Purchase of own shares                                       | -0.1   | -0.7   | -0.7   | -0.1    |
| Repayment of lease liabilities                               | -1.9   | -1.8   | -2.4   | -2.5    |
| Net cash flow from financing activities                      | -6.3   | -15.0  | -15.3  | -6.6    |
| Net change in cash and cash equivalents                      | -19.9  | -27.6  | -23.3  | -15.6   |
| Cash and cash equivalents at the beginning of period         | 45.3   | 68.0   | 68.0   | 41.8    |
| Effect of exchange rate changes in cash and cash equivalents | -0.6   | 1.4    | 0.6    | -1.4    |
| Cash and cash equivalents at the end of period               | 24.9   | 41.8   | 45.3   | 24.9    |

<span id="page-32-0"></span>![](_page_32_Picture_0.jpeg)

# **4) Statement of changes in Group equity**

| Equity attributable to the equity holders of the parent company |                  |                                 |                |                            |                       |                      |       |                                |                 |
|-----------------------------------------------------------------|------------------|---------------------------------|----------------|----------------------------|-----------------------|----------------------|-------|--------------------------------|-----------------|
|                                                                 | Share<br>Capital | Invested<br>Free Equity<br>Fund | Hybrid<br>Bond | Translation<br>differences | Fair value<br>reserve | Retained<br>earnings | Total | Non<br>controllin<br>interests | Total<br>Equity |
| 1 January - 30 September<br>2023 (EUR million)                  |                  |                                 |                |                            |                       |                      |       |                                |                 |
| Equity 1 January 2023                                           | 3.1              | 303.6                           | 33.5           | -14.9                      | 0.0                   | -179.0               | 146.2 | 0.0                            | 146.2           |
| Net profit for the financial year                               | 0.0              | 0.0                             | 0.0            | 0.0                        | 0.0                   | -14.4                | -14.4 | 0.0                            | -14.4           |
| Other comprehensive income items<br>(with the tax effect)       |                  |                                 |                |                            |                       |                      |       |                                |                 |
| Other comprehensive income total                                | 0.0              | 0.0                             | 0.0            | 10.0                       | 0.0                   | 0.0                  | 10.0  | 0.0                            | 10.0            |
| Comprehensive income for the                                    |                  |                                 |                |                            |                       |                      |       |                                |                 |
| financial year                                                  | 0.0              | 0.0                             | 0.0            | 10.0                       | 0.0                   | -14.4                | -4.5  | 0.0                            | -4.5            |
| Transactions with the                                           |                  |                                 |                |                            |                       |                      |       |                                |                 |
| shareholders<br>Purchase of own shares                          | 0.0              | 0.0                             | 0.0            | 0.0                        | 0.0                   | -0.1                 | -0.1  | 0.0                            | -0.1            |
| Share-based incentive plan                                      | 0.0              | 0.0                             | 0.0            | 0.0                        | 0.0                   | -0.2                 | -0.2  | 0.0                            | -0.2            |
| Hybrid bond interests                                           | 0.0              | 0.0                             | 0.0            | 0.0                        | 0.0                   | -2.8                 | -2.8  | 0.0                            | -2.8            |
| Transactions with the shareholders,                             |                  |                                 |                |                            |                       |                      |       |                                |                 |
| total                                                           | 0.0              | 0.0                             | 0.0            | 0.0                        | 0.0                   | -3.0                 | -3.0  | 0.0                            | -3.0            |
| Equity on 30 September 2023                                     | 3.1              | 303.6                           | 33.5           | -4.9                       | 0.0                   | -196.5               | 138.7 | 0.0                            | 138.7           |

|                                                           |                  | Equity attributable to the equity holders of the parent company |                |                            |                       |                      |       |                                |                 |
|-----------------------------------------------------------|------------------|-----------------------------------------------------------------|----------------|----------------------------|-----------------------|----------------------|-------|--------------------------------|-----------------|
|                                                           | Share<br>Capital | Invested<br>Free Equity<br>Fund                                 | Hybrid<br>Bond | Translation<br>differences | Fair value<br>reserve | Retained<br>earnings | Total | Non<br>controllin<br>interests | Total<br>Equity |
| 1 January - 30 September 2022<br>(EUR million)            |                  |                                                                 |                |                            |                       |                      |       |                                |                 |
| Equity 1 January 2022                                     | 3.1              | 264.7                                                           | 15.4           | -18.2                      | 0.0                   | -99.9                | 165.1 | 0.0                            | 165.1           |
| Net profit for the financial year                         | 0.0              | 0.0                                                             | 0.0            | 0.0                        | 0.0                   | -76.7                | -76.7 | 0.0                            | -76.7           |
| Other comprehensive income items<br>(with the tax effect) |                  |                                                                 |                |                            |                       |                      |       |                                |                 |
| Other comprehensive income total                          | 0.0              | 0.0                                                             | 0.0            | -6.0                       | 0.0                   | 0.0                  | -6.0  | 0.0                            | -6.0            |
| Comprehensive income for the                              |                  |                                                                 |                |                            |                       |                      |       |                                |                 |
| financial year                                            | 0.0              | 0.0                                                             | 0.0            | -6.0                       | 0.0                   | -76.7                | -82.7 | 0.0                            | -82.7           |
| Transactions with the<br>shareholders                     |                  |                                                                 |                |                            |                       |                      |       |                                |                 |
| Purchase of own shares                                    | 0.0              | 0.0                                                             | 0.0            | 0.0                        | 0.0                   | -0.7                 | -0.7  | 0,0                            | -0.7            |
| Share-based incentive plan                                | 0.0              | 0.0                                                             | 0.0            | 0.0                        | 0.0                   | 0.6                  | 0.6   | 0,0                            | 0.6             |
| Directed issue and write-down of<br>hybrid loan           | 0.0              | 6.8                                                             | -15.4          | 0.0                        | 0.0                   | 8.5                  | 0.0   | 0.0                            | 0.0             |
| Right issue                                               | 0.0              | 34.8                                                            | 0.0            | 0.0                        | 0.0                   | 0.0                  | 34.8  | 0.0                            | 34.8            |
| Cost related to share issues excl<br>taxes                | 0.0              | -2.7                                                            | 0.0            | 0.0                        | 0.0                   | 0.0                  | -2.7  | 0.0                            | -2.7            |
| Conversion of notes                                       | 0.0              | 0.0                                                             | 34.2           | 0.0                        | 0.0                   | 0.0                  | 34.2  | 0.0                            | 34.2            |
| Costs related to notes' conversion                        | 0.0              | 0.0                                                             | -0.7           | 0.0                        | 0.0                   | 0.0                  | -0.7  | 0.0                            | -0.7            |
| Hybrid bond interests                                     | 0.0              | 0.0                                                             | 0.0            | 0.0                        | 0.0                   | -2.0                 | -2.0  | 0,0                            | -2.0            |
| Transactions with the shareholders,<br>total              | 0.0              | 38.9                                                            | 18.1           | 0.0                        | 0.0                   | 6.4                  | 63.4  | 0,0                            | 63.4            |
| Equity on 30 September 2022                               | 3.1              | 303.6                                                           | 33.5           | -24.2                      | 0.0                   | -170.3               | 145.7 | 0,0                            | 145.7           |

![](_page_33_Picture_0.jpeg)

|                                                                | Equity attributable to the equity holders of the parent company |             |        |             |            |          |       |            |        |
|----------------------------------------------------------------|-----------------------------------------------------------------|-------------|--------|-------------|------------|----------|-------|------------|--------|
|                                                                | Invested                                                        |             |        |             |            |          |       |            |        |
|                                                                | Share                                                           | Free Equity | Hybrid | Translation | Fair value | Retained |       | controllin | Total  |
|                                                                | Capital                                                         | Fund        | Bond   | differences | reserve    | earnings | Total | interests  | Equity |
| 1 January - 31 December 2022<br>(EUR million)                  |                                                                 |             |        |             |            |          |       |            |        |
| Equity 1 January 2022                                          | 3.1                                                             | 264.7       | 15.4   | -18.2       | 0,0        | -99.9    | 165.1 | 0.0        | 165.1  |
| Net profit for the financial year                              | 0.0                                                             | 0.0         | 0.0    | 0.0         | 0.0        | -85.7    | -85.7 | 0.0        | -85.7  |
| Other comprehensive income items<br>(with the tax effect)      |                                                                 |             |        |             |            |          |       |            |        |
| Translation difference                                         | 0.0                                                             | 0.0         | 0.0    | -4.0        | 0.0        | 0.0      | -4.0  | 0.0        | -4.0   |
| Share of other comprehensive<br>income of associated and joint |                                                                 |             |        |             |            |          |       |            |        |
| ventures companies                                             | 0.0                                                             | 0.0         | 0.0    | 7.2         | 0.0        | 0.0      | 7.2   | 0.0        | 7.2    |
| Other comprehensive income total                               | 0.0                                                             | 0.0         | 0.0    | 3.2         | 0.0        | 0.0      | 3.2   | 0.0        | 3.2    |
| Comprehensive income for the                                   |                                                                 |             |        |             |            |          |       |            |        |
| financial year                                                 | 0.0                                                             | 0.0         | 0.0    | 3.2         | 0.0        | -85.7    | -82.5 | 0.0        | -82.5  |
| Transactions with the<br>shareholders                          |                                                                 |             |        |             |            |          |       |            |        |
| Purchase of own shares                                         | 0.0                                                             | 0.0         | 0.0    | 0.0         | 0.0        | -0.7     | -0.7  | 0.0        | -0.7   |
| Share-based incentive plan                                     | 0.0                                                             | 0.0         | 0.0    | 0.0         | 0.0        | 0.8      | 0.8   | 0.0        | 0.8    |
| Directed issue and write-down of<br>hybrid loan                | 0.0                                                             | 6.8         | -15.4  | 0.0         | 0.0        | 8.5      | 0.0   | 0.0        | 0.0    |
| Right issue                                                    | 0.0                                                             | 34.8        | 0.0    | 0.0         | 0.0        | 0.0      | 34.8  | 0.0        | 34.8   |
| Cost related to share issues excl                              |                                                                 |             |        |             |            |          |       |            |        |
| taxes                                                          | 0.0                                                             | -2.7        | 0.0    | 0.0         | 0.0        | 0.0      | -2.7  | 0.0        | -2.7   |
| Conversion of notes                                            | 0.0                                                             | 0.0         | 34.2   | 0.0         | 0.0        | 0.0      | 34.2  | 0.0        | 34.2   |
| Costs related to notes' conversion                             | 0.0                                                             | 0.0         | -0.7   | 0.0         | 0.0        | 0.0      | -0.7  | 0.0        | -0.7   |
| Hybrid bond interests                                          | 0.0                                                             | 0.0         | 0.0    | 0.0         | 0.0        | -2.0     | -2.0  | 0.0        | -2.0   |
| Transactions with the                                          |                                                                 |             |        |             |            |          |       |            |        |
| shareholders, total                                            | 0.0                                                             | 38.9        | 18.1   | 0.0         | 0.0        | 6.5      | 63.6  | 0.0        | 63.6   |
| Equity on 31 December 2022                                     | 3.1                                                             | 303.6       | 33.5   | -14.9       | 0.0        | -179.0   | 146.2 | 0.0        | 146.2  |

<span id="page-34-0"></span>Q3 2023 26 October 2023 at 8:30 am

## **5) Accounting policies**

This Interim Report has been prepared in accordance with IAS 34 Interim Financial Reporting. In preparing this Interim Report release, SRV has applied the same accounting policies as in its annual financial statements for 2022, however so that the Group has introduced as of 1 January 2023 the new or revised IFRS standards and IFRIC interpretations published by the IASB mentioned in the accounting policies of the annual financial statements for 2022. These do not have a material impact on the Interim Report. In connection with the financial transaction described below, SRV has written down financial liabilities with equity instruments. SRV initially measures the equity instruments issued to the creditor to write down financial liabilities at their fair value on the date when the liabilities are extinguished. The difference between the carrying amount of the extinguished financial liabilities and the paid amount is recognised in profit or loss. The direct transaction costs of the issued equity instruments are recognised directly as an adjustment to equity. The information disclosed in this Interim report is unaudited. The figures in this Interim report have been rounded up to millions of euros, so the sum total of individual figures may deviate from the sum total presented.

### **Segment change**

As from 1 January 2019, SRV reported its business operations as two segments: Construction and Investments. On 27 April 2023, SRV announced that its segment structure has been changed due to internal reorganisation and that going forward the company will report its operations as a single segment. SRV's Investments segment primarily consisted of operations related to its holdings in Russia, which SRV wrote down almost in their entirety in spring 2022. The chief operating decisionmaker as defined in IFRS 8 is the Group's Corporate Executive Team, which reviews SRV's business as a single operating segment, which also comprises the reportable segment.

#### **Comparison figures for share-specific key figures**

On 4 July 2022, the company carried out a reverse share split, in which each 40 shares of SRV were merged into one share. The comparison figures for the share-specific key figures have been adjusted accordingly.

### **Short-term risks and uncertainties**

SRV's most significant short-term risks and uncertainties are related to the upward trend in interest rates and thus to the demand of investor and consumer customers. This may have an impact on the delay or cancellation of planned projects **Use of estimates**

The preparation of the Interim report in accordance with IFRS requires Group management to make estimates and assumptions that affect both the values of assets and liabilities on the balance sheet date, and income and expenditure for the financial period. Judgements also have to be made in applying the accounting principles. As these estimates and assumptions are based on current perceptions of the situation on the balance sheet date, they involve risks and uncertainties. Actual results may therefore differ from the estimates and assumptions. The key accounting estimates and judgement-based solutions are presented in greater detail in the accounting principles of the consolidated financial statements for 2021. Changes in estimates, increased uncertainty and management considerations influenced by war in Ukraine has been described below

Deferred tax assets recognised in SRV's balance sheet at the end of the review period amounted to EUR 37.6 million. Most of SRV's deferred tax assets are related to confirmed tax losses. The tax losses arose from the divestment of the holding in the REDI shopping centre as well as the loss-making contracts for the REDI shopping centre, REDI Majakka and Tampere Arena. The deferred tax assets of the Russian companies have been written down in their entirety. The deferred tax assets will be recognised only up to the amount for which the company has sufficient taxable temporary differences or other credible evidence of the ability to use tax losses. At the end of the review period, SRV stated that it is probable that the deferred tax assets will be used. These losses arose due to individual identifiable reasons that are not expected to reoccur. The oldest deferred tax assets from confirmed losses date back to 2016. Confirmed losses can be deducted from profit over the next 10 tax years as income is generated. The assumptions on which the amount of taxable income is based include the management's estimate of future cash flow, including future revenue, operating expenses and financial expenses. The SRV Group's ability to generate taxable income also depends on the general state of the national economy and factors related to financing, competitiveness and regulation that are beyond the SRV Group's control. If a Group company has posted a loss in the recent past, deferred tax assets are recognised on the tax losses only up to the amount for which the company has sufficient taxable temporary differences or other credible evidence of the ability to use tax losses. The deferred tax assets recognised in the balance sheet at the end of reporting period are also based on the fact that losses are confirmed in taxation such that they can be generally utilised for SRV's future taxable income.

The calculation parameters are essential for the final result of the valuation calculation. The key parameters are inflation, growth in consumer demand, forecasts of the trend in rental income and the weighted average cost of capital, which correlates with the local risk-free interest level. The values of the calculation parameters have changed significantly after Russia invaded Ukraine. Expected inflation has risen significantly and the forecast for consumer demand has weakened considerably. In the prevailing exceptional circumstances, the estimation of the used parameters involves extremely high uncertainty,

![](_page_35_Picture_0.jpeg)

and the situation is not expected to be rectified in the near future. Using the available sources of information, the company has sought to establish an overview of the parameters that is as accurate as possible.

SRV suspended the construction of the Torihotelli contract in Oulu due to the payment difficulties of the client. Trade receivables in the contract involve credit loss risks. At the end of September, SRV had about EUR 16.0 million receivables due from this contract, secured by a mortgage on the property under construction and pledges on certain other assets. In March, the company initiated legal proceedings to realise the collateral. In order toaccelerate the realisation of the mortgaged property, SRV filed an application on 27 June 2022 to declare the client company bankrupt. As a result, the District Court of Oulu declared the company developing the hotel, Kiinteistö Oy Oulun Torihotelli, bankrupt on 26 August 2022.

In this interim report, SRV has not classified its assets as assets held for sale in accordance with IFRS 5. In an investor news bulletin published on 2 August 2023, SRV announced that it had divested the majority of its remaining holdings in Russia. After this transaction, SRV's only remaining asset in Russia is a 50 per cent holding in the Pearl Plaza shopping centre. SRV is actively continuing negotiations with its partner with the aim of selling its holding in Pearl Plaza as well. There is exceptionally high uncertainty in the market, which makes it difficult to estimate the exact timing and probability of divesting these assets.

<span id="page-36-0"></span>![](_page_36_Picture_0.jpeg)

# **6) Group commitments and contingent liabilities**

| (EUR million)                        | 30 September<br>2023 | 30 September 2022 | change, % | 31 December 2022 |
|--------------------------------------|----------------------|-------------------|-----------|------------------|
| Collateral given for own liabilities |                      |                   |           |                  |
| Real estate mortgages given1)        | 17.8                 | 9.0               | 97.8      | 9.2              |
|                                      |                      |                   |           |                  |
| Other commitments                    |                      |                   |           |                  |
| Investment commitments given         | 19.6                 | 19.7              | -0.6      | 19.6             |
| Plots purchase commitments           | 0.3                  | 17.6              | -98.5     | 8.0              |

1. Real estate mortgages include the total amount of mortgages given as collateral for developer contracting

housing production against the housing corporation loans of uncompleted and unsold completed projects.

<span id="page-37-0"></span>![](_page_37_Picture_0.jpeg)

# **7) Financial assets and liabilities by measurement categories**

| 30 September 2023                      |                                                                                 |                                                                   |                                           |            |
|----------------------------------------|---------------------------------------------------------------------------------|-------------------------------------------------------------------|-------------------------------------------|------------|
| (EUR million)                          | Financial assets and<br>liabilities at fair value<br>through profit and<br>loss | Financial assets and<br>liabilities measured<br>at amortised cost | Carrying amounts by<br>balance sheet item | Fair value |
| Non-current financial asset            |                                                                                 |                                                                   |                                           |            |
| Long-term interest bearing receivables | 0.0                                                                             | 13.2                                                              | 13.2                                      | 13.2       |
| Long-term receivables                  | 0.0                                                                             | 0.0                                                               | 0.0                                       | 0.0        |
| Current financial assets               | 0.0                                                                             | 0.0                                                               | 0.0                                       | 0.0        |
| Accounts receivables                   | 4.8                                                                             | 0.0                                                               | 4.8                                       | 4.8        |
| Other interest bearing receivables     | 6.8                                                                             | 0.0                                                               | 6.8                                       | 6.8        |
| Current financial assets               |                                                                                 |                                                                   |                                           |            |
| Accounts receivables                   | 0.0                                                                             | 38.0                                                              | 38.0                                      | 38.0       |
| Cash and cash equivalents              | 0.0                                                                             | 24.9                                                              | 24.9                                      | 24.9       |
| Total                                  | 11.6                                                                            | 76.0                                                              | 87.6                                      | 87.6       |
| Non-current financial liabilities      |                                                                                 |                                                                   |                                           |            |
| Interest bearing liabilities           | 0.0                                                                             | 30.5                                                              | 30.5                                      | 30.5       |
| Derivative instruments                 | 0.0                                                                             | 0.0                                                               | 0.0                                       | 0.0        |
| Other non-current liabilities          | 0.0                                                                             | 5.6                                                               | 5.6                                       | 5.6        |
| Current financial liabilities          |                                                                                 |                                                                   |                                           |            |
| Interest bearing liabilities           | 0.0                                                                             | 1.8                                                               | 1.8                                       | 1.8        |
| Accounts payables                      | 0.0                                                                             | 54.3                                                              | 54.3                                      | 54.3       |
| Total                                  | 0.0                                                                             | 92.2                                                              | 92.2                                      | 92.2       |
| 31.12.2022                             |                                                                                 |                                                                   |                                           |            |
|                                        | Financial assets and                                                            |                                                                   |                                           |            |

|                                        | liabilities at fair value | Financial assets and |                     |            |
|----------------------------------------|---------------------------|----------------------|---------------------|------------|
|                                        | through profit and        | liabilities measured | Carrying amounts by |            |
| (EUR million)                          | loss                      | at amortised cost    | balance sheet item  | Fair value |
| Non-current financial asset            |                           |                      |                     |            |
| Long-term interest bearing receivables | 0.0                       | 14.2                 | 14.2                | 14.2       |
| Long-term receivables                  | 0.0                       | 0.0                  | 0.0                 | 0.0        |
| Accounts receivables                   | 4.1                       | 0.0                  | 4.1                 | 4.1        |
| Other interest bearing receivables     | 7.8                       | 0.0                  | 7.8                 | 7.8        |
| Current financial assets               |                           |                      |                     |            |
| Accounts receivables                   | 0.0                       | 28.7                 | 28.7                | 28.7       |
| Cash and cash equivalents              | 0.0                       | 45.3                 | 45.3                | 45.3       |
| Total                                  | 11.9                      | 88.3                 | 100.1               | 100.1      |
| Non-current financial liabilities      |                           |                      |                     |            |
| Interest bearing liabilities           | 0.0                       | 23.8                 | 23.8                | 23.8       |
| Derivative instruments                 | 0.0                       | 0.0                  | 0.0                 | 0.0        |
| Other non-current liabilities          | 0.0                       | 6.3                  | 6.3                 | 6.3        |
| Current financial liabilities          |                           |                      |                     |            |
| Interest bearing liabilities           | 0.0                       | 10.0                 | 10.0                | 10.0       |
| Accounts payables                      | 0.0                       | 43.0                 | 43.0                | 43.0       |
| Total                                  | 0.0                       | 83.1                 | 83.1                | 83.1       |

![](_page_38_Picture_0.jpeg)

|                              | 9/2023     |        | 9/2022     |        | 12/2022    |        |
|------------------------------|------------|--------|------------|--------|------------|--------|
| Liability of derivative      | Fair value |        | Fair value |        | Fair value |        |
| instruments (EUR million)    | Posit.     | Negat. | Posit.     | Negat. | Posit.     | Negat. |
| Hedge accounting not applied |            |        |            |        |            |        |
| Currency options             | 0.0        | 0.0    | 0.0        | 0.0    | 0.0        | 0.0    |
| Interest rate swaps          | 4.8        | 0.0    | 3.2        | 0.0    | 4.1        | 0.0    |

|                                          | 9/2023 | 9/2022 | 12/2022 |
|------------------------------------------|--------|--------|---------|
| Nominal values of derivative instruments |        |        |         |
| Currency options                         | 0.0    | 0.0    | 0.0     |
| Interest rate swaps                      | 100.0  | 100.0  | 100.0   |

### **Fair value hierarchy of financial assets and liabilities**

Financial assets at fair value through profit or loss: The company had foreign exchange option contracts and interest rate swaps recognised at fair value through profit or loss.

### **Derivative financial instruments at fair value through profit or loss**

| (EUR million)                    | Level 1 | Level 2 | Level 3 | Total |
|----------------------------------|---------|---------|---------|-------|
|                                  |         |         |         |       |
| 30 September 2023                |         |         |         |       |
| Derivative financial assets      | 0.0     | 4.8     | 0.0     | 4.8   |
| Derivative financial liabilities | 0.0     | 0.0     | 0.0     | 0.0   |
| 30 September 2022                |         |         |         |       |
| Derivative financial assets      | 0.0     | 3.2     | 0.0     | 3.2   |
| Derivative financial liabilities | 0.0     | 0.0     | 0.0     | 0.0   |
| 31 December 2022                 |         |         |         |       |
| Derivative financial assets      | 0.0     | 4.1     | 0.0     | 4.1   |
| Derivative financial liabilities | 0.0     | 0.0     | 0.0     | 0.0   |

### **Other financial assets at fair value through profit or loss**

| (EUR million)          | 30 September 2023 | 30 September 2022 | 31 December 2022 |
|------------------------|-------------------|-------------------|------------------|
| Other financial assets | 7.8               | 24.7              | 24.7             |
| Inreases               | 0.0               | 0.1               | 0.1              |
| Changes in fair values | -1.0              | -11.5             | -17.0            |
| Decreases              | 0.0               | 0.0               | 0.0              |
| Total                  | 6.8               | 13.3              | 7.8              |
|                        |                   |                   |                  |
| Non-current            | 6.8               | 13.3              | 7.8              |
| Current                | —                 | —                 | —                |

<span id="page-39-0"></span>![](_page_39_Picture_0.jpeg)

### **Other financial assets at fair value through profit or loss**

| (EUR million)         | Level 1 | Level 2 | Level 3 | Total |
|-----------------------|---------|---------|---------|-------|
| 30 September 2023     |         |         |         |       |
| Unlisted shares       | —       | 0.6     | 6.8     | 7.4   |
| Long-term receivables | —       | 4.8     | —       | 4.8   |
|                       |         |         |         |       |
| 30 September 2022     |         |         |         |       |

| Unlisted shares       | — | 0.6 | 9.5 | 10.1 |
|-----------------------|---|-----|-----|------|
| Long-term receivables | — | 3.2 | —   | 3.2  |
|                       |   |     |     |      |

| 31 December 2022      |   |     |     |     |
|-----------------------|---|-----|-----|-----|
| Unlisted shares       | — | 0.6 | 4.9 | 5.5 |
| Long-term receivables | — | 2.2 | —   | 2.2 |

Level 1 instruments are traded in active markets and their fair values are directly based on the market price

The fair values of level 2 instruments are derived from market data.

The fair values of level 3 instruments are not based on observable market data, but may also be based quotations provided by brokers, external market valuation reports or cash flow-based forecast. Valuation may also be based on acquisition cost if this the best estimate of fair value.

Unlisted shares and investments consist mainly of shares purchased for leisure facilities used by SRV's employees (level 2) and real estate funds and projects (level 3). Assets recognised in level 3 consist mainly of Tampere Central Deck and Arena

### **8) Breakdown of revenue**

| Revenue                                | 1-9/  | 1-9/  | change | change | 7-9/  | 7-9/  | 1-12  | Last 12 |
|----------------------------------------|-------|-------|--------|--------|-------|-------|-------|---------|
| (EUR million)                          | 2023  | 2022  | MEUR   | %      | 2023  | 2022  | 2022  | Months  |
| Revenue recognition at a point in time | 3.8   | 48.8  | -45.0  | -92.2  | 1.5   | 27.4  | 50.1  | 5.2     |
| Revenue recognition over time          | 422.4 | 517.2 | -94.8  | -18.3  | 145.3 | 158.4 | 692.6 | 597.8   |
| Other revenue                          | 2.1   | 22.9  | -20.8  | -90.9  | 0.1   | 1.0   | 27.4  | 6.6     |
| Total                                  | 428.3 | 588.9 | -160.6 | -27.3  | 146.9 | 186.8 | 770.1 | 609.5   |

## **9) Group and Segment Information**

SRV will report its operations as a single segment starting from 1 January 2023. The comparison figures have been adjusted accordingly. The chief operating decision-maker as defined in IFRS 8 is the Group's Corporate Executive Team, which reviews SRV's business as a single operating segment, which also comprises the reportable segment.

## **10) Inventories**

| EUR million                                                        | 30 September<br>2023 | 30 September<br>2022 | change<br>MEUR | 31 December<br>2022 |
|--------------------------------------------------------------------|----------------------|----------------------|----------------|---------------------|
| Land areas and plot-owning companies                               | 76.1                 | 74.3                 | 1.8            | 75.4                |
| Work in progress                                                   | 71.4                 | 73.1                 | -1.7           | 79.6                |
| Shares in completed housing corporations and real estate companies | 4.3                  | 5.3                  | -1.0           | 4.8                 |
| Other inventories                                                  | 96.4                 | 81.0                 | 15.4           | 78.2                |
| Right-of-use asset, total                                          | 93.3                 | 77.9                 | 15.4           | 75.1                |
| Other inventories                                                  | 3.1                  | 3.1                  | 0.0            | 3.0                 |
| Inventories, total                                                 | 248.1                | 233.6                | 14.5           | 238.0               |

![](_page_40_Picture_0.jpeg)

# **11) Changes in financial position**

### **Financial liabilities, excluding lease liabilities**

| 30 September 2023                       | Maturity        |                         |      |      |      |      |       |
|-----------------------------------------|-----------------|-------------------------|------|------|------|------|-------|
| EUR Million                             | Carrying amount | Contractual liability1) | 2023 | 2024 | 2025 | 2026 | later |
| Bonds                                   | 0.0             | 0.0                     | 0.0  | 0.0  | 0.0  | 0.0  | 0.0   |
| Loans from financial institutions       | 1.8             | 3.3                     | 0.2  | 2.8  | 0.3  | 0.0  | 0.0   |
| Housing loans2)                         | 15.9            | 29.1                    | 0.2  | 1.0  | 1.1  | 1.1  | 25.7  |
| Commercial papers                       | 0.0             | 0.0                     | 0.0  | 0.0  | 0.0  | 0.0  | 0.0   |
| Other liabilities                       | 14.6            | 14.6                    | 0.0  | 0.0  | 0.0  | 0.0  | 14.6  |
| Other liabilities non- interest bearing | 9.1             | 9.1                     | 3.5  | 2.5  | 3.1  | 0.0  | 0.0   |
| Derivative liabilities                  | 0.0             | 0.0                     | 0.0  | 0.0  | 0.0  | 0.0  | 0.0   |
| Accounts payables                       | 54.3            | 54.3                    | 54.3 | 0.0  | 0.0  | 0.0  | 0.0   |
| Total                                   | 95.7            | 110.4                   | 58.2 | 6.3  | 4.5  | 1.1  | 40.3  |

### **Financial liabilities, lease liabilities**

| 30 September 2023 | Maturiteetti    |                       |      |      |      |      |       |
|-------------------|-----------------|-----------------------|------|------|------|------|-------|
| EUR Million       | Carrying amount | Contractual liability | 2023 | 2024 | 2025 | 2026 | later |
| Lease liabilities | 110.2           | 262.1                 | 7.9  | 7.5  | 7.0  | 7.0  | 232.7 |

#### **Financial liabilities, excluding lease liabilities**

| 31 December 2022                        | Maturity        |                         |      |      |      |      |       |
|-----------------------------------------|-----------------|-------------------------|------|------|------|------|-------|
| EUR Million                             | Carrying amount | Contractual liability1) | 2023 | 2024 | 2025 | 2026 | later |
| Bonds                                   | 0.0             | 0.0                     | 0.0  | 0.0  | 0.0  | 0.0  | 0.0   |
| Loans from financial institutions       | 11.8            | 13.7                    | 11.4 | 2.3  | 0.0  | 0.0  | 0.0   |
| Housing loans2)                         | 7.4             | 12.0                    | 0.3  | 0.3  | 0.4  | 0.4  | 10.6  |
| Commercial papers                       | 0.0             | 0.0                     | 0.0  | 0.0  | 0.0  | 0.0  | 0.0   |
| Other liabilities                       | 14.6            | 14.6                    | 0.0  | 0.0  | 0.0  | 0.0  | 14.6  |
| Other liabilities, non-interest bearing | 9.8             | 9.8                     | 3.5  | 2.5  | 3.1  | 0.0  | 0.7   |
| Derivative liabilities                  | 0.0             | 0.0                     | 0.0  | 0.0  | 0.0  | 0.0  | 0.0   |
| Account payables                        | 43.0            | 43.0                    | 43.0 | 0.0  | 0.0  | 0.0  | 0.0   |
| Total                                   | 86.6            | 93.0                    | 58.2 | 5.1  | 3.5  | 0.4  | 25.9  |

### **Financial liabilities, lease liabilities**

| 31 December 2022  | Maturity        |                       |      |      |      |      |       |
|-------------------|-----------------|-----------------------|------|------|------|------|-------|
| EUR Million       | Carrying amount | Contractual liability | 2023 | 2024 | 2025 | 2026 | later |
| Lease liabilities | 92.0            | 220.8                 | 7.0  | 6.8  | 6.1  | 6.0  | 194.9 |

1. Includes all contractual payments, e.g. interest and commitment fees.

2.At the time of handing over the apartment, the responsibility for repaying the principal and interest on the housing loans passes to the buyer of the apartment. Irrespective of whether the apartment is unfinished or completed, but not handed over to the buyer, SRV's debt capital and interest are presented in full up to the maturity of the loan. Only when control of the apartment is transferred will interest and principal be removed from the table.

On 26 April, with the syndicate banks, the company agreed on and implemented the replacement of the earlier EUR 30 million committed revolving credit facility, EUR 40 million committed project financing facility and EUR 63 million noncommitted project financing facility with a new EUR 40 million committed revolving credit facility. The earlier EUR 40 million committed project financing facility and EUR 63 million non-committed project financing facility are being discontinued, and going forward project financing will be negotiated bilaterally with banks in accordance with normal market practices. The covenants of the agreement are equity ratio, gearing, minimum operating margin, minimum liquidity, and certain other restrictions. EUR 10 million of the company's new EUR 40 million committed revolving credit facility was allocated as a committed overdraft facility during the review period. It remained unused at the end of the period. Of the remaining EUR 30 million, EUR 1.0 million was in use and EUR 29.0 million was unused.

<span id="page-41-0"></span>![](_page_41_Picture_0.jpeg)

### **Covenants**

SRV's financing agreements contains standard covenants that relate to, among other, certain key financial indicators and ratios, and the guarantees given by SRV. The covenants of the revolving credit facility (RCF) are based on FAS or IFRS figures, adjusted and calculated in accordance with the methods defined in the terms and conditions of the RCF agreement. The covenants are percentage of completion equity ratio, net gearing excluding IFRS 16 impact, Last 12 months minimum EBITDA excluding the share of associated companies' income and the impact of transaction costs and impairments, minimum liquidity and certain other limitations. Of the aforementioned covenants equity ratio, net gearing and minimum EBITDA are tested quarterly. Minimum liquidity is tested monthly.

The table below presents the covenants and covenant levels of the RCF in place at the end of the reporting period

| Financial covenants of the RCF                                                                                     | Covenant value                                 |  |  |  |
|--------------------------------------------------------------------------------------------------------------------|------------------------------------------------|--|--|--|
| Equity ratio (overtime revenue recognition)                                                                        | >30 per cent                                   |  |  |  |
| Net gearing (excluding IFRS 16 impact)                                                                             | ≤70 per cent                                   |  |  |  |
| Minimum liquidity                                                                                                  | >EUR 25 million at the period end              |  |  |  |
| Minimum EBITDA (excluding the share of associated company results and before<br>transaction costs and impairments) | >EUR 3-15 million, depending on testing period |  |  |  |

### **12) Currency Risks**

SRV is exposed to changes in the exchange rate of the rouble through its Russian associated company. The roubledenominated items have been valued in euros at an exchange rate of 103.217 (that is, the exchange rate on the review date). SRV's currency risk position has decreased considerably as a result of the divestment in Q3/2023. After this transaction, SRV's only remaining asset in Russia is a 50 per cent holding in the Pearl Plaza shopping centre in St Petersburg.

Currency risks are divided into transaction risk and translation risk. Transaction risk relates to foreign currencydenominated business (sales and purchases) and financing (loans) cash flows. Translation risk relates to investments in foreign subsidiaries, associated companies and project companies in which the functional currency is not the euro, and whose imputed effects are reflected in translation differences in the Group's consolidated equity.

## **13) Financial income**

|                                  | 1-9/ | 1-9/ | muutos | muutos, | 7-9/ | 7-9/ | 1-12 |
|----------------------------------|------|------|--------|---------|------|------|------|
| EUR million                      | 2023 | 2022 | meur   | %       | 2023 | 2022 | 2022 |
| Dividend and interest income     | 1.4  | 0.9  | 0.5    | 54.4    | 0.5  | 0.2  | 1.4  |
| Exchange rate gains              | 0.0  | 5.0  | -5.0   | -100.0  | 0.0  | -0.5 | 1.5  |
| Partial write down of notes      | 0.0  | 17.1 | -17.1  | -100.0  | 0.0  | 0.0  | 17.1 |
| Fair-value change of hybrid loan | 0.0  | 22.9 | -22.9  | -100.0  | 0.0  | 0.0  | 22.9 |
| Financial income, total          | 1.4  | 45.7 | -44.5  | -97.3   | 0.5  | -0.3 | 42.8 |

# **14) Russia business operations and divestment**

In 2022 SRV has written down the balance sheet values of practically all of its shopping centres and other holdings in Russia and its holding in Fennovoima.

In August 2023, SRV divested the share capital of its subsidiary SRV Russia Oy. The sold assets also include SRV's Russian subsidiaries and associated companies and SRV's remaining plot holdings in Russia, which are owned by these companies, as well as a minority interest in the 4Daily shopping centre located close to Moscow. The personnel responsible for SRV's business operations in Russia were also transferred in the transaction. After this transaction, SRV's only remaining asset in Russia is a 50 per cent holding in the Pearl Plaza shopping centre in St Petersburg.

![](_page_42_Picture_0.jpeg)

### **Impact of divestment on Group's assets and liabilities**

| EUR million                  | Q3 2023 |
|------------------------------|---------|
| Assets, total                | 5.3     |
| Laibilities, total           | 1.4     |
| Sold net assets, total       | 3.9     |
| Sales price                  | 3.9     |
| Translation difference       | -9.3    |
| Transaction fees             | -0.2    |
| Net result from sale         | -9.5    |
| Cash flow from sale          |         |
| EUR million                  | Q3 2023 |
| Sales price                  | 3.9     |
| Cash and cash equivalents of |         |
| divested operations          | -2.3    |
| Transaction fees             | -0.2    |
| Cash flow from sale          | 1.4     |

Translation differences totalling EUR -9.3 million were recognised in income and entered under shareholders' equity in the balance sheet, which contributed to the capital loss. A net result from sale of EUR -9.5 million has been recognised as an impairment in the consolidated income statement. This net result from sale has no impact on the Group's operative operating profit.

<span id="page-43-0"></span>![](_page_43_Picture_0.jpeg)

# **15) Related party transactions**

EUR million

| 30 September 2023        | Salaries and<br>compensation | Sale of goods and<br>services | Purchase of<br>goods and<br>services | Interest Income | Receivables | Liabilities |
|--------------------------|------------------------------|-------------------------------|--------------------------------------|-----------------|-------------|-------------|
| Management and the Board |                              |                               |                                      |                 |             |             |
| of Directors             | 2.5                          | 0.0                           | 0.0                                  | 0.0             | 0.0         | 0.0         |
| Joint ventures           | 0.0                          | 0.6                           | 0.0                                  | 0.0             | 0.0         | 0.0         |
| Associated companies     | 0.0                          | 0.0                           | 0.0                                  | 0.0             | 0.0         | 0.0         |
| Other related parties    | 0.0                          | 0.0                           | 0.0                                  | 0.0             | 0.0         | 0.0         |
| Total                    | 2.5                          | 0.6                           | 0.0                                  | 0.0             | 0.0         | 0.0         |

On 30 June 2022 SRV has written down it's loan receivables from associated companies classified as related party transactions. At balance sheet date the value of loan receivables from associated companies was EUR 0.0 million (09/2022 EUR 0.0 million and 12/2022 EUR 0.0 million).

| 30 September 2022        | Salaries and<br>compensation | Sale of goods and<br>services | Purchase of<br>goods and<br>services | Interest Income | Receivables | Liabilities |
|--------------------------|------------------------------|-------------------------------|--------------------------------------|-----------------|-------------|-------------|
| Management and the Board |                              |                               |                                      |                 |             |             |
| of Directors             | 2.6                          | 0.0                           | 0.0                                  | 0.0             | 0.0         | 0.0         |
| Joint ventures           | 0.0                          | 1.1                           | 0.0                                  | 0.0             | 0.0         | 0.0         |
| Associated companies     | 0.0                          | 1.4                           | 0.0                                  | 0.0             | 0.0         | 0.0         |
| Other related parties    | 0.0                          | 0.0                           | 0.0                                  | 0.0             | 0.0         | 0.0         |
| Total                    | 2.6                          | 2.5                           | 0.0                                  | 0.0             | 0.0         | 0.0         |

| 31 December 2022         | Salaries and<br>compensation | Sale of goods and<br>services | Purchase of<br>goods and<br>services | Interest Income | Receivables | Liabilities |
|--------------------------|------------------------------|-------------------------------|--------------------------------------|-----------------|-------------|-------------|
| Management and the Board |                              |                               |                                      |                 |             |             |
| of Directors             | 3,4                          | 0,0                           | 0,0                                  | 0,0             | 0,0         | 0,0         |
| Joint ventures           | 0,0                          | 1,4                           | 0,0                                  | 0,0             | 0,0         | 0,0         |
| Associated companies     | 0,0                          | 1,5                           | 0,0                                  | 0,0             | 0,0         | 0,0         |
| Other related parties    | 0,0                          | 0,0                           | 0,0                                  | 0,0             | 0,0         | 0,0         |
| Total                    | 3.4                          | 2.9                           | 0.0                                  | 0.0             | 0.0         | 0.0         |

## **16) Events after reporting period**

There were no significant events after the end of the review period.