Martela Oyj

Quarterly Report • Aug 9, 2019

1

Half Year Report

1 January – 30 June 2019

2019

MARTELA CORPORATION INTERIM REPORT 1 JANUARY – 30 JUNE 2019

MARTELA CORPORATION'S HALF YEAR REPORT 1 JANUARY – 30 JUNE

The January–June 2019 revenue remained on the same level and operating result decreased compared to previous year. Operating result decreased due to the tight competition which has led to decreased sales margins.

April–June 2019

• Revenue was EUR 24.8 million (25.6), representing a change of -3.0 %
• Operating result was EUR -1.8 million (-0.9)
• Operating profit per revenue was -7.1 % (-3.7 %)
• The result for the period declined and was EUR -1.9 million (-1.0)
• Earnings per share amounted to EUR -0.45 (-0.25)

January–June 2019

• Revenue was EUR 50.4 million (50.8), representing a change of -0.8 %
• Operating result was EUR -3.6 million (-1.8)
• Operating profit per revenue was -7.2 % (-3.6 %)
• The result for the period declined and was EUR -3.9 million (-2.2)
• Earnings per share amounted to EUR -0.95 (-0.52)

Outlook

Outlook for 2019

The Martela Group anticipates that its revenue and operating result in 2019 will improve slightly compared to the previous year. Traditionally Group's operating result accumulates during the second half of the year.

	2019	2018	Change	2019	2018	Change	2018
	4-6	4-6	%	1-6	1-6	%	1-12
Revenue	24,8	25,6	-3,0 %	50,4	50,8	-0,8 %	103,1
Operating result	-1,8	-0,9		-3,6	-1,8		-2,1
Operating result %	-7,1 %	-3,7 %		-7,2 %	-3,6 %		-2,0 %
Result before taxes	-1,9	-1,1		-4,0	-2,2		-2,5
Result for the period	-1,9	-1,0		-3,9	-2,2		-2,4
Earnings/share, eur	-0,45	-0,25		-0,95	-0,52		-0,57
Return on investment %	-23,0	-10,6		-23,7	-10,2		-4,9
Return on equity %	-45,5	-20,1		-47,5	-20,8		-11,4
Equity ratio %				28,4	39,2	-27,6 %	39,2
Gearing %				57,7	16,4	252,6 %	0,7

Key figures, EUR million

Matti Rantaniemi, CEO:

"The January–June 2019 revenue was EUR 50.4 million representing a decrease of 0.8% compared to same time in previous year. Our revenue increased in Sweden 23.6% and in Norway 38.2 % compared to previous year. Revenue decreased in Finland 3.5% and in Other countries 39.5 % compared to previous year. Decrease in Finland was impacted by postponement of frame agreement negotiations in the public sector and due that decreased demand. Excluding the public sector, we were able to grow in all other customer segments in Finland.

New orders grew in the first half of 2019 compared to same time previous year. Growth in all other segments than public sector was especially strong in the second quarter of 2019. I believe, that now when contract negotiations have ended, demand in the public sector will normalise. Martela being the preferred supplier in Kuntahankinta gives us a great opportunity to increase our sales.

Operating result decreased compared to last year and was EUR -3.6 million (-1.8). This was mainly influenced by toughened competition which resulted to a lower sales margin. In order to improve our profitability we initiated a cost efficiency program aiming to EUR 4 million cost savings by year 2021 in June. First part of the cost efficiency program was concluded in June through co-operation negotiations in Finnish entities. This is expected to bring approximately EUR 2 million annual cost savings from beginning of 2020 onwards. Change in the market condtions is permament and therefore we need to be able to align our fixed costs to meet the changing environment. I am confident that even these processes are never easy, these actions are necessary in order to secure succesful future in the long term.

Even though the challenges in market conditions have decreased our revenue and operating result in the short term, we strongly belive that basis for our strategy remains. Transformation in working and learning environments will continue, get stronger and expand. Working and learning environments will have to be able to adapt faster as needs and circumstances keep constantly changing. This will require capabilites to follow and understand the use of space, and needs of the users and to be able to renew and optimize the space according to those needs. Martela has expanded the strategically important Pod family by introducing several new products into it. These are specifically planned to meet the requirements of constantly growing need of flexible spaces.

Market situation

There has not been any major changes in the private sector market conditions. However demand for finnish public sector has been temporaly affected negatively by postponement of frame agreement negotiations. Now when these negotiations have been concluded we believe that public sector will be recovering. The demand for Martela's products and services is fundamentally affected also by the general economic situation and by the extent to which companies and the public sector need to stregthen the utilisation of their spaces and make their workplaces more effective as management tools.

Revenue and operating result

Revenue and result for April–June 2019

Revenue for April–June was EUR 24.8 million (25.6) and decreased by 3.0 % from the previous year. Compared to the previous year, revenue increased in Norway by 35.5 % and Sweden by 5.0 %. In Finland revenue declined by 3.7 % and in Other countries by 52.2 %.

Operating result for April–June was EUR -1.8 million (-0.9).

The April–June result before taxes was EUR -1.9 million (-1.1). The April–June net result was EUR -1.9 million (-1.0).

Revenue and result for January–June 2019

Revenue for January–June was EUR 50.4 million (50.8) and decreased by 0.8 % from the previous year. Compared to the previous year, revenue increased in Norway by 38,2 % and Sweden by 23,6 %. In Finland revenue declined by 3.5 % and in Other countries by 39.5 %.

Operating result for January–June was EUR -3.6 million (-1.8).

The January–June result before taxes was EUR -4.0 million (-2.2). The January–June net result was EUR -3.9 million (-2.2).

	2019	2018	Change	2019	2018	Change	2018
	4-6	4-6	%	1-6	1-6	%	1-12
Finland	20,3	21,1	-3,7 %	40,4	41,9	-3,5 %	86,2
Sweden	1,7	1,6	5,0 %	4,5	3,6	23,6 %	7,0
Norway	2,2	1,6	35,5 %	4,1	2,9	38,2 %	5,2
Other	0,6	1,2	-52,2 %	1,4	2,4	-39,5 %	4,6
Revenue total	24,8	25,6	-3,0 %	50,4	50,8	-0,8 %	103,1

Revenue by country, EUR million

Income from sale of goods 21,5 21,6 -0,5 % 43,7 43,9 -0,5 % 90,2 Income from sale of services 3,3 4,0 -16,4 % 6,7 6,9 -3,0 % 12,9

Revenue for January-June includes EUR 70 thousand (42) income from sold furniture that based on the customer agreement is classified as rental income.

Martela started a cost efficiency improvement program in the second quarter in order to improve its profitability. Target for the cost efficiency program is to reach EUR 4 million annual savings. Purpose of the planned actions is to align company's cost base to meet current market conditions and to secure set profitability targets. In addition to decrease fixed costs, company is also investigating other alternatives to change cost base to be more flexible. Planned savings will start to materialize gradually from the beginning of 2020 and will have full impact by the first quarter of 2021. As part of the efficiency program company started co-operation negotiations in it Finnish entities in June. As a result of the negotiations approximately 40 jobs will be reduced. This is estimated to have EUR 2 million annual savings, which will essentially realize from beginning of 2020 onwards.

Financial position

The cash flow from operating activities in January–June was EUR 0.6 million (3.9). The reclassification of rental expenses to repayments of lease liabilities in cash flow from financing activities under IFRS 16 had a positive effect on oprative cash flow of EUR 1.3 million.

At the end of the period, interest-bearing liabilities stood at EUR 16.7 million including EUR 6.0 million lease liabilities according to IFRS 16. At the end of comparison period the interest bearing liabilities stood at EUR 12.3 million. Net liabilities were EUR 8.3 million (3.1). At the end of the period, short-term limits of EUR 5.0 million were in use (6.0) and available limits stood at EUR 2.0 million.

The gearing ratio at the end of the period was 57.7 % (16.4) and the equity ratio was 28.4 % (39.2). The key ratios were negatively impacted by the lease liabilities according to IFRS 16 (EUR 6.0 million). Financial income and expenses were EUR -0.3 million (-0.4).

Financing arrangements include covenant clauses in which the ratio between the Group's net liabilities and EBITDA and the Group's equity ratio are examined. The key figures calculated at the end of the review period did not fulfill the EBITDA covenant, but Martela has received a waiver for the breach for Q2 from the financers covering most of the debts. The loans form financial institutions that a waiver has not been agreed on have been reported as short therm debts. The balance sheet total stood at EUR 51.6 million (49.4) at the end of the period.

Capital expenditure

The Group's gross capital expenditure for January– June was EUR 0.8 million (0.3).

Personnel

The Group employed an average of 497 people (516), which represents a decrease of 19 persons or 3.7 %. The number of employees in the Group was 518 (533) at the end of the review period. Personnel costs in January–June totalled EUR 14.3 million (14.0).

Personnel on average	2019	2018	Change	2018 1-12
by country	1-6	1-6	%
Finland	427	435	-1,8 %	432
Sweden	22	30	-26,7 %	28
Norway	9	11	-18,2 %	11
Other	39	40	-2,5 %	39
Total	497	516	-3,7 %	510

Martela's offering

In line with its Lifecycle strategy Martela creates high-quality services for workplaces and learning environments along the full lifecycle. Our offering includes workplace and learning environment specification and planning, implementation and furnishing as well as continuous measurement and optimization.

To add to the traditional way of purchasing Martela has introduced two new service models, Workplace as a Service and Learning environment as a Service. The monthly service fees can include everything from one to all of the lifecycle phases.

During 2019 Martela expanded the Pod product family by introducing the PodBooth and new PodMeeting products. Also a new version of the popular Grip-series was launced and the Bit-series has been expanded with new products.

OTHER MATTERS

Changes in Management Team

VP, People and Sustainability Maija Kaski left the company to move to the next stage in her career. She left her duties on January 8, 2019. The change has been announced in the stock exchange release on November 30, 2018.

Group structure

There were no changes in Group structure during the review period.

Shares

In January–June, a total 394 255 (646 337) of the company's series A shares were traded on the NASDAQ OMX Helsinki exchange, corresponding to 11,1 % (18,2) of the total number of series A shares.

The value of trading turnover was EUR 1.2 million (4.2), and the share price was EUR 3.07 at the end of the period (5,28). During January–June the share price was EUR 3.35 at its highest and EUR 2.79 at its lowest. At the end of June, equity per share was EUR 3.45 (4.55).

Treasury shares

Martela did not purchase any of its own shares in January–June. Martela owns a total of 13 082 Martela A shares and its holding of treasury shares amounted to 0.3% of all shares and 0.1% of all votes. Out of the shares 12 036 were purchased at an average price of EUR 10.65 and 1 046 were transferred from Martela Corporation's joint account to the treasury shares reserve based on the decision by AGM on March 13, 2018.

Share-based incentive programme

In the effective share-based incentive programme, there are two earning periods, which are 2017–2018 and 2019–2020. The Board of Directors will decide the earning criteria and the goals for each criterion of the programme at the beginning of each earning period.

The target group for the 2017–2018 and 2019-2020 earning periods is the Group's Management Team. The potential reward of the programme from the earning period 2017–2018 was based on the Group´s Earnings before Interest and Taxes (EBIT) and from the earning period 2019-2020 based on the Group's revenue and Earnings before Interest and Taxes (EBIT). No incentives will be paid for the earning period 2017–2018. The potential reward for the earning period 2019-2020 will be paid in one transaction as shares and a cash portion in year 2021.The cash portion is aimed to cover taxes and other costs related to the reward. The shares paid as reward may not be transferred during an approximate one-year restriction period established for the shares. For shares earned from the performance period 2019—2020, the restriction period will end on 30 April 2022. Management of the share-based incentive scheme has been outsourced to an external service provider.

2019 Annual General Meeting

Martela Corporation's Annual General Meeting was held on Thursday, March 14, 2019. The Meeting approved the Financial Statements and discharged the members of the Board of Directors and CEO from liability for the year of 2018. The Board of Directors proposal for a dividend of EUR 0.10 per share was approved. The record date for dividend payments was March 18, 2019 and the dividend was paid on April 17, 2019.

The Annual General Meeting confirmed that the Board of Directors will consist of seven members and Ms. Minna Andersson, Mr. Eero Leskinen, Mr. Eero Martela, Mr. Heikki Martela, Ms. Katarina Mellström and Ms. Anni Vepsäläinen be re-elected as members of the Board of Directors and Mr. Jan Mattsson elected as a new member of the Board of Directors.

KPMG Oy Ab, Authorised Public Accountants, was reappointed as the company's auditor.

The Annual General Meeting authorized the Board in accordance with the proposal of the Board of Directors to decide on the repurchase of own shares, issuance of own shares and/or to dispose of the own shares held by the Company.

The new Board of Directors convened after the AGM and elected from its members Heikki Martela as Chairman and Eero Leskinen as Vice Chairman.

Corporate responsibility and quality

Responsibility forms an integral part of Martela's strategy and operations. We support the responsibility of our customer companies by offering sustainable solutions for the workplace throughout its entire life cycle and by ensuring the responsible recycling of any furniture that is no longer needed. The company's Martela Lifecycle -model covers the entire lifecycle of the workplace. The Group has a quality and environmental system certified by an independent certifier, and they guarantee that operations are continuously improved, client expectations met and environmental matters taken into consideration.

Further information on the responsibility of the Group's operations can be found in the annually published responsibility report. Martela's responsibility reporting includes extensive non-financial information (NFI) required by the new accounting legislation. It has been published since 2010. All reports are available on the Martela website.

Administration

Martela Corporation is a Finnish limited liability company that is governed in its decision-making and management by Finnish legislation, especially the Finnish Limited Liability Companies Act, by other regulations concerning public listed companies, and by its Articles of Association. The company complies with the NASDAQ OMX Guidelines for Insiders and the Corporate Governance Code 2015 for Finnish listed companies published by the Securities Market Association. More information on Martela's governance can be found on the company's website.

EVENTS AFTER THE END OF THE FINANCIAL YEAR

No significant events requiring reporting have taken place since the January–June period, and operations have continued according to plan.

SHORT-TERM RISKS

The principal risk regarding profit performance relates to the general economic uncertainty and the consequent effects on the overall demand in Martela's operating environment. Due to the project-based nature of the sector, forecasting short-term developments is challenging.

Outlook

Outlook for 2019

The Martela Group anticipates that its revenue and operating result in 2019 will improve sligthly compared to the previous year. Traditionally Group's operating result accumulates during the second half of the year.

TABLES

Accounting policies

Martela Corporation's consolidated financial statements have been prepared in compliance with the IAS 34 standard and the International Financial Reporting Standards (IFRS) valid on 30 June 2019. The figures in the release have been rounded and the total sum of individual figures may differ from the total presented in the release. The figures presented in this release have not been audited. Same accounting principles have been applied in this report as in the financial statements 2018, exept for the following changes in IFRS standards implemented during the year:

IFRS 16

Through the implementation of the IFRS 16 Martela recognized EUR 6 115 thousand of right-of-use-assets and EUR 6 174 thousad of Lease liabilities to the opening balance sheet of 1.1.2019. Martela implemented the standard using the modified retrospective method without recalculation of comparative figures. Martela used retrospective approach in calculating the right of use assets book values for some office space leases using the borrowing rate of 1.1.2019, for other leases the caluculations were made from 1.1.2019 onwards.The rental period of the lease contracts is either the period in lease agreement or an estimated rental period. Estimated rental periods are used for open ended agreements. The estimated rental periods are 2 years for rented offices and sales facilities and 1 year for warehouses. Martela does not apply IFRS 16 to leases for which the lease term ends within 12 monts and are not offices or warehouses in use by Martela. The expenses from such short term leases are recognized as expenses in other operating expenses.

The lease agreements are included in the balance sheet of 30.6.2019 as follows
1 000 €
Tangible assets
Right of use assets - Buildings	5 142
Right of use assets - Machinery and equipment	723
Total	5 865
Non current liabilities
Lease liabilities	3 519
Current liabilities
Lease liabilities	2 453
Liabilities total	5 972

The lease agreements are included in the income statement of 30.6.2019 as follows
1 000 €
Other operating expenses
Vehicles	-196
IT	-7
Real estate	-1 081
Other expenses	-5
Depreciation and impairment
Depreciation and impairment	1 235
Financial expenses
Interest expenses on lease liabilities	84
Currency translation losses on lease liabilities	18

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(EUR 1000)
	2019	2018	2019	2018	2018
	4-6	4-6	1-6	1-6	1-12
Revenue	24 801	25 563	50 399	50 815	103 100
Other operating income	73	92	172	791	1 094
Employee benefit expenses	-7 268	-6 959	-14 265	-13 979	-26 703
Operating expenses	-18 149	-18 982	-37 528	-38 179	-76 984
Depreciation and impairment	-1 217	-651	-2 421	-1 286	-2 576
Operating profit/loss	-1 761	-936	-3 643	-1 839	-2 070
Financial income and expenses	-149	-179	-342	-360	-381
Profit/loss before taxes	-1 909	-1 116	-3 984	-2 199	-2 451
Taxes	26	75	53	41	84
Profit/loss for the period	-1 883	-1 041	-3 931	-2 159	-2 367
Translation differences	-56	-7	-132	-196	-130
Actuarial gains and losses	0	0	0	0	113
Acturial gains and losses, deferred taxes	0	0	0	0	-25
Total comprehensive income	-1 939	-1 048	-4 063	-2 355	-2 409
Basic earnings per share, eur	-0,45	-0,25	-0,95	-0,52	-0,57
Diluted earnings per share,eur	-0,45	-0,25	-0,95	-0,52	-0,57
Allocation of net profit for the period:
To equity holders of the parent	-1 883	-1 041	-3 931	-2 159	-2 367
Allocation of total comprehensive income: To equity holders of the parent	-1 939	-1 048	-4 063	-2 355	-2 409

GROUP BALANCE SHEET (EUR 1000)	30.6.2019	30.6.2018	31.12.2018
ASSETS
Non-current assets
Intangible assets	6 832	7 017	6 776
Tangible assets	10 266	4 500	4 581
Investments	53	53	53
Deferred tax assets	177	155	122
Total	17 327	11 726	11 531
Current assets
Inventories	7 792	9 747	8 544
Receivables	17 939	18 648	19 326
Cash and cash equivalents	8 495	9 258	10 594
Total	34 225	37 653	38 464
Total assets	51 553	49 379	49 995
EQUITY AND LIABILITIES
Equity
Share capital	7 000	7 000	7 000
Share premium account	1 116	1 116	1 116
Other reserves	-9	-9	-9
Translation differences	-1 071	-1 005	-939
Retained earnings	6 347	10 871	10 738
Treasury shares	-128	-128	-128
Share-based incentives	1 046	1 013	1 013
Total	14 300	18 859	18 791
Non-current liabilities
Interest-bearing liabilities	7 055	6 039	3 956
Deferred tax liabilities	350	455	383
Pension obligations	442	565	442
Total	7 847	7 059	4 781
Current liabilities
Interest-bearing	9 249	5 740	6 319
Non-interest bearing Total	20 157 29 406	17 721 23 461	20 105 26 424
Total liabilities	37 253	30 520	31 204
Equity and liabilities, total	51 553	49 379	49 995

CONSOLIDATED CASH FLOW STATEMENT (EUR 1000)	2019 1-6	2018 1-6	2018 1-12
Cash flows from operating activities
Cash flows from sales	51 995	57 514	110 436
Cash flow from other operating income	168	178	397
Payments on operating costs	-51 209	-54 011	-104 114
Net cash from operating activities before financial items and taxes	954	3 681	6 718
Interests paid	-188	-106	-242
Interests received	2	1	3
Other financial items	-137	-244	-142
Dividends received	0	0	4
Taxes paid	-64	571	1 056
Net cash from operating activities (A)	566	3 902	7 397
Cash flows from investing activities
Capital expenditure on tangible and intangible assets	-1 061	-321	-975
Proceeds from sale of tangible and intangible assets	5	1 213	1 213
Net cash used in investing activities (B)	-1 057	892	238
Cash flows from financing activities
Proceeds from short-term loans	660	6 000	6 000
Repayments of short-term loans	-580	-7 490	-8 984
Repayments of lease liabilities	-1 257	-2	0
Dividends paid and other profit distibution	-414	-1 326	-1 326
Net cash used in financial activities (C)	-1 591	-2 818	-4 309
Change in cash and cash equivalents ( A+B+C) (+ increase, - decrease)	-2 082	1 977	3 326
Cash and cash equivalents in the beginning of the
period	10 594	7 283	7 283
Translation differences	-17	-2	-16
Cash and cash equivalents at the end of period	8 495	9 258	10 594

STATEMENT OF CHANGES IN EQUITY

(EUR 1000)	Share capital	Share premium	Other resrves	Translation diff	Retained earnings	Tresury shares	Equity total
Equity attributable to equity holders of the parent		account
1.1.2018	7 000	1 116	-9	-810	15 456	-128	22 625
Profit/loss for the period					-2 159		-2 159
Translation diff.				-196			-196
Ohter change					13		13
Dividends					-1 125		-1 125
Whitholding taxes from dividends					-201		-201
Share-based incentives					-101	0	-101
30.6.2018	7 000	1 116	-9	-1 006	11 884	-128	18 858
01.01.2019	7 000	1 116	-9	-939	11 751	-128	18 791
Profit/loss for the period					-3 931		-3 931
Other change					-47		-47
ranslation diff.				-132			-132
Dividends					-355		-355
Whitholding taxes from dividends					-59		-59
Share-based incentives					33	0	33
30.6.2019	7 000	1 116	-9	-1 071	7 392	-128	14 300

CONTINGENT LIABILITIES	30.6.2019	30.6.2018	31.12.2018
Mortgages and shares pledged Other commitments	21 773 308	21 808 313	21 859 308
Rental commitments	6 915	8 091	7 785

DEVELOPMENT OF SHARE PRICE	2019	2018	2018
	1-6	1-6	1-12
Share price at the end of period, eur	3,07	5,28	2,96
Highest price, eur	3,35	8,48	8,48
Lowest price, eur	2,79	5,20	2,91
Average price, eur	3,07	6,56	5,18

KEY FIGURES/RATIOS	2019	2018	2018
	1-6	1-6	1-12
Operating profit/loss, EUR thousand	-3 643	-1 839	-2 070
-% in relation to revenue	-7,2	-3,6	-2,0
Profit/loss before taxes, EUR thousand	-3 984	-2 199	-2 451
-% in relation to revenue	-7,9	-4,3	-2,4
Profit/loss for the period, EUR thousand	-3 931	-2 159	-2 367
-% in relation to revenue	-7,8	-4,2	-2,3
Basic earnings per share, eur	-0,95	-0,52	-0,57
Diluted earnings per share, eur	-0,95	-0,52	-0,57
Equity/share, eur	3,45	4,55	4,54
Equity ratio %	28,4	39,2	39,2
Return on equity %	-47,5	-20,8	-11,4
Return on investment %	-23,7	-10,2	-4,9
Interest-bearing net-debt, EUR million	8,3	3,1	0,1
Gearing %	57,7	16,4	0,7
Capital expenditure, EUR million	0,8	0,3	1,7
-% in relation to revenue	1,7	0,6	1,6
Personnel at the end of period	518	533	501
Personnel on average	497	516	510
Revenue/employee, EUR thousand	101,4	98,5	202,2

Formulas for Calculation of Key Figures

Earnings / share	=	Profit attributable to the equity holders of the parent Average share issue-adjusted number of shares
Equity / share, EUR	=	Equity attributable to the equity holders of the parent Share issue-adjusted number of shares at year end
Return on equity, %	=	Profit/loss for the financial year x 100 Equity (average during the year)
Return on investment, %	=	(Pre-tax profit/loss + interest expenses + other financial expenses) x 100 Balance sheet total - Non-interest-bearing liabilities (average during year)
Equity ratio, %	=	Equity x 100 Balance sheet total - advances received
Gearing, %	=	Interest-bearing liabilities-cash and cash equivalents and liquid asset securities x 100 Equity
Personnel on average	=	Month-end average calculation of the number of personnel in active employment
Interest-bearing net debt	=	Interest-bearing debt - cash and other liquid financial assets

BRIEFING

A briefing for analysts, portfolio managers and the media will take place on Friday 9 th of August, 2019 from 11.30 a.m. to 12.30 p.m. EET at Martela House at Takkatie 1, Helsinki. The results will be presented by Matti Rantaniemi, CEO.

Martela Corporation Board of Directors

Matti Rantaniemi CEO

Further information Matti Rantaniemi, CEO, tel. +358 50 465 8194 Kalle Lehtonen, CFO, tel. +358 400 539 968

Distribution Nasdaq OMX Helsinki Key news media

www.martela.com

Our strategic direction is defined by our mission "Better working" and our vision "People-centric workplaces". Martela supplies user-centric workplaces where the users and their wellbeing are what matter most. We focus on the Nordic countries because, based on our common open work culture and needs, the Nordic countries are leaders in hybrid workplaces.