Annual Report • Mar 16, 2022
Annual Report
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Ponsse in brief 4
Ponsse in 2021 6
Ponsse's values 8
Ponsse's purpose, mission and vision 9
Review by the Chairman of the Board and the President and CEO 10
Ponsse products 12
Ponsse service 16
Board of Directors 20
Management Team 22
Area Directors and subsidiary
Managing Directors 23
Corporate responsibility at Ponsse 26
Social responsibility 32 Environmental responsibility 40 Finances and administration 46 Goals and actions plan 54
Einari Vidgrén Foundation 55
Board of Directors' report 1 January – 31 December 2021 59
Financial indicators 66
Consolidated financial statements (IFRS) 70
Parent company's financial statements (FAS) 102
Share capital and shares 113
Board of directors' proposal for the disposal of profit 117
Auditor's report 118
Deliveries from the central warehouse
Forest machines manufactured since 1970
Coffee cups drained at Vieremä
Guests at the Ponsse Club
Languages spoken in the global Ponsse network
PONSSE dealers 44
Team spirit in the global Ponsse family
100%
Service centres across the world
Sold used machines
PONSSE machines at global logging sites 14,000
Ponsse Plc is a company specialising in the sales, production, maintenance and technology of cut-to-length method forest machines. It is driven by a genuine interest in its customers and their business. Ponsse develops and manufactures sustainable and innovative harvesting solutions based on customers' needs. Ponsse has 12 subsidiaries and 44 dealers across the world.
Throughout its history, the value-driven family company, established by forest machine entrepreneur Einari Vidgrén in 1970, has only focused on cut-to-length forest machines. Today, more than 17,000 PONSSE forest machines have been completed at the Vieremä factory for global logging sites, customised to meet customers' needs.
Hailing from Vieremä, Finland, Ponsse is one of the world's leading forest machine manufacturers. The company's shares are quoted on the NASDAQ OMX Nordic List.
Employees 2,072
Net sales, MEUR 750
Share of exports 80%
The year 2021 was a time of growth for Ponsse. Our order flows broke new records, our order books were at a record high, and all our business areas grew sig nificantly. Our profitability improved, and our cash flow was excellent throughout the year. Ponsse's solvency is strong.
Our customers' work situation was excellent through out the year. All our market areas made good pro gress. The good market situation was also reflected in our maintenance services that grew better than expected, driven by our customers' busy work schedules. Our used machine operations also grew well.
Our employees worked remotely for the most part of the year, with the exception of our production, sales and maintenance service employees. The 17,000th PONSSE forest machine was completed at the Vieremä factory, and despite the challenges presented by the coronavirus pandemic, the factory operated without interruptions throughout the year. Thanks go to all Ponsse employees, who were exemplary in taking responsibility.
Innovative harvesting solutions, sustainable develop ment and responsibility will continue to be key success factors for us in the future. Based in Vieremä, we are focusing and will continue to focus on the sale, main tenance, manufacture and R&D of cut-to-length forest machines. Our customers and committed personnel will enable our success in the future as well.
Ponsse Brazil celebrates 15 years of opera tions. The company's more than 300 profes sionals serve customers in 11 locations.
PONSSE UK Ltd celebrates its 25th anni versary. The first PONSSE machines were delivered to the United Kingdom in 1994.
Ponsse and Lapland Education Centre REDU open an advanced simulation-based learning environment in Rovaniemi. This also marks the largest simulator deal in Ponsse's history.
LRQA grants the ISO 9001:2015 certificate for the first time to Ponsse Brazil. The certificate is one of Ponsse Brazil's strategic goals for 2021.
The Einari Vidgrén Foundation awards forestry professionals for the 16th time. In 2021, the foundation's awards total EUR 169,900.
The 17,000th Ponsse forest machine is completed at Ponsse's factory in Vieremä. The PONSSE Elk is delivered to Kuusmoto Oy, operating at logging sites in Posio and Ranua in Lapland, Finland.
People rank Ponsse Finland as the most reputable company for the fourth year in succession. A total of 9,265 Finns partici pated in the annual reputation survey.
Quality Austria grants the ISO 45001:2018 occupational health and safety certificate to Ponsse Uruguay. At the same time, the ISO 9001 certificate is renewed.
CDN Ergo, a new PONSSE dealer, starts operations in Poland. Now, the Ponsse network consists of 44 dealers across the world.
PONSSE Scorpion's new Future Cabin wins a product design award in the internation ally acclaimed Red Dot design competition. The Best of the Best award in the Product Design category is given for the cabin's innovative design.
Ponsse strengthens its operations in Chile. Ponsse Group will move its sales, spare parts and maintenance services in Chile under its new subsidiary, Ponsse Chile SpA.
Ponsse introduces PONSSE Full Simulator, a comprehensive training system with high-reso lution graphics and real-life forest environments that offer a complete platform for professional training. The system is launched at the Ponsse Studio online event, marking the beginning of a series of nine online events at the same time.
Ponsse launches the fully modernised Scorpion harvester model series. The next-generation PONSSE Scorpion meets all the requirements set by modern forest management. It offers unprecedented stability, efficiency and produc tivity, bearing the environment in mind and with minimum surface pressure. R&D, conducted together with customers, focused on improved ergonomics, safety, visibility from the cabin, and usability.
Ponsse launches the new PONSSE H7 HD Euca harvester head for processing euca lyptus trees, also in rougher conditions. The PONSSE H7 HD Euca debarking harvester head makes the harvesting of medium-sized and large eucalyptus trees even more efficient and productive. The launch further strengthens Ponsse's strategy of becoming one of the world's leading manufacturers of harvester heads.
Ponsse introduces the new Frame and Crane Care for maintenance agreements. The new Frame and Crane Care provides customers with even more comprehensive maintenance agreement services.
Ponsse launches the new K101 and K111 loaders for its most popular forwarder mod els. Developed together with customers, the loaders are designed for efficient load handling in demanding conditions.
At the "Shaping the Future – data and digitalisation in harvesting" online event, Ponsse's specialists talk about future har vesting and forest management operations from the digital services perspective.
The "Ponsse's innovative solutions for working on slopes" online event presents the solutions provided for PONSSE forest machines in areas with varying terrain and steepness.
At the "Ponsse's solutions for thinning sites" online event, Ponsse's specialists and custom ers discuss about how to select the correct equipment for thinning sites, and how the forest's growth conditions can be improved, and trees can be made to grow sturdier more quickly through correctly timed thinning.
The "Ponsse's solutions for heavy-duty forwarding" online event presents the experiences of Ponsse's customers and specialists in the Elephant King and the Active Crane loader control system.
We exist for our customers. This idea has not changed since machine entrepreneur Einari Vidgrén declared it as Ponsse's driving force. Nor will it ever change. Our operations' deep customer orientation and genuine closeness to customers help us understand our customers' actual needs.
Ponsse's roots are deep in the forest, and a love for the forest joins us and our customers all over the world. In every way, we strive to enable the well-being of forests in accordance with the principles of sustainable development. Healthy and well-managed forests are essential for the future of both Ponsse and our
We believe that we offer our customers the best solutions on the markets. We want to exceed our customers' expectations every day of the year.
Sustainable development guides all our actions. As an innovative leader in our industry, we take responsibility for our environment and the well-being of forests. Our continuous development makes us the most desirable partner.
We are enthusiastic about the continuous development of Ponsse. We want to be the world leader in sustainable solutions representing the cut-to-length method. Fast technological development, combined with the Ponsse way of working, develops our operations and produces constant results.
Our innovation is based on a culture of experimentation and networking, and they enable us to efficiently introduce new technologies and solutions to the market to support our customers' business.
Ponsse employees who feel well throughout our Ponsse network are our most important assets and the prerequisites for all development.
Ponsse's mission describes our main task and reflects our core business. While our purpose provides us with a firm foundation, our mission provides us with a permanent task as a part of our operating environment.
Customer closeness is a way of life for us at Ponsse. Without our customers, we would have nothing: no production, service operations, R&D or support functions. Our partnership with our customers is based on trust. We always keep our promises.
Our task is to understand our customers and their business. Our customers' extensive knowledge of timber harvesting and the industry also enables us to learn. We develop all our solutions for our customers' needs to produce added value for their operations.
Our solutions play an important role in enabling the implementation of the principles of sustainable forestry. Our ability to develop and innovate sustainable solutions for the needs of responsible forestry is based on close partnerships with our customers, the professionalism of our people, and our technological abilities.
We are a value-driven company, with our values guiding our daily work. Our strong culture, developed over decades, forms our most important competitive edge. Together with our customers, personnel and other stakeholders, we form the Ponsse family. customers. We believe that we are part of the solution in combating climate change.
Sustainable development provides us with a direction and an opportunity for innovation and new operating methods. It also ensures our social and financial success.
The development of our innovations and solutions is always initiated and guided by our customers' needs, combined with the possibilities offered by technology. Our customers' insight enables us to develop solutions that offer true added value in everyday work within the harvesting business.
Our customers succeed together with us
WHY DO WE EXIST?
The year 2021 was a time of growth for Ponsse. Driven by changes in consumption behaviour resulting from the coronavirus pandemic and the high trend in the forest industries, markets for cut-to-length forest machines were at a very high level. Our order flows broke new records, and our order books were at a record-high. All of our business areas grew significantly, our profitability improved and our cash flow was excellent throughout the year. Ponsse's solvency is strong.
Our customers' work situation was excellent throughout the year. All our market areas made good progress, and Ponsse's sales and service organisation did excellent work throughout the year. The positive trend in demand for PONSSE forest machines started during the final quarter of 2020. During the first quarter of 2021, demand turned towards a rapid increase, strengthening our order books considerably. It became quickly evident that we will operate our Vieremä factory at full capacity throughout the year, the component and coronavirus situations permitting.
The good market situation was also reflected in our maintenance services that grew better than expected, driven by our customers' busy work schedules. The continuous development of our maintenance services also produced excellent results, and our maintenance service network was able to keep our customers' machines up and running globally. Our used machine business grew well, with the stock levels of used machines being under control.
Epec Oy, our technology company, was the fastest growing of our business areas, with its revised strategy starting to produce results. Changes in our operating environment towards constantly more ecological technologies have given excellent opportunities for Epec's rapidly developing technologies. The company specialises in control technologies for machines operating in demanding conditions, and autonomous and electric transmission systems.
However, this growth would not have been possible without all the hard work, regardless of the stable market situation. The highly challenging availability of parts and components was on the flip side of high demand. The soaring demand for equipment and machine manufacturing challenged manufacturing networks that were already in a vulnerable position. High demand, combined with logistics issues, affected the availability of parts and components, and caused significant inflation in prices and other operating expenses. This had a negative impact on both our maintenance services and supply chains. However, our supplier network, being almost entirely situated in Europe, eased the availability challenges. Our subsidiary Epec Oy secured the availability of electronics components for Ponsse and Epec's other customers, despite the global availability issues regarding semiconductors. We were able to manufacture all the PONSSE forest machines defined in our production plan and deliver them effectively to our customers across the world. The challenges in the availability of parts and components have pushed people in our company and manufacturing network to their limits. We are very proud of the excellent performance that has kept our maintenance service network and factory in operation. This would not have been possible without our manufacturing network, and the 17,000th forest machine completed at the Vieremä factory is an indication of everyone's commitment and hard work.
Our goal of finding a balance between growth, profitability and cash flows has driven our operations towards higher solvency. Along the years, we have been able to grow significantly, while taking care of our company's profitability and ensuring excellent cash flows. This has naturally strengthened our balance sheet. We still have a lot of work ahead of us but, right now, we are satisfied with the development of our solvency and our strong financial standing. This gives our company an opportunity to move forward and invest in the future.
Continuous and purposeful development is an integral part of Ponsse's operations. We will systematically develop our distribution and manufacturing network, as well as its operating methods, and expand to new areas following customer needs. Most recently, we announced the transfer of the operations of FC Ventas Y Servicios, our dealer in Chile, to our subsidiary Ponsse Chile SpA during Q1/2022. The Ponsse network's daily operations keep our customers satisfied, and its training is an important success factor for us. Currently, the development of product technologies and digital services is rapid, and we aim to increasingly improve the customer value through new R&D and technological solutions.
Sustainable development and responsibility are key factors for our future success and prerequisites for the continuity of our business. Ponsse is doing purposeful work as part of sustainable forestry. This motivates every one of us at Ponsse and every member of our international network. We believe that our technologies and new business models provide us with more and more opportunities to fulfil the principle of sustainable development in forestry. Productive harvesting that respects the environment supports forest regeneration and enables the use of valuable raw materials for long-lasting high-quality wooden products. The significance of wood as a renewable raw material in replacing
fossil raw materials is huge, and the level of innovation in the industry is high. In developing our products and services, we are constantly aiming at solutions that are friendlier to the climate and nature, and we aim to make our operations carbon neutral. We still need to work hard to achieve our goals, but the direction is clear.
Our strong Ponsse culture, developed over five decades, is an important asset for us. We are a value-driven company, with a clear focus on the future. The values based on our history – customer orientation, integrity, innovativeness and the Ponsse spirit – are genuinely important to us at Ponsse, and they illustrate our day-to-day activities well. At the same time, we are continuously investing in the sustainable development of our functions that address the natural environment, our personnel and our finances.
Based in Vieremä, we are focusing and will continue to focus on the sale, maintenance, manufacture and R&D of cut-to-length forest machines. Our customers and committed personnel will enable our success in the future as well.
Jarmo Vidgrén Chairman of the Board of Directors Juho Nummela President and CEO
Ponsse's harvesting solutions are developed in cooperation with customers, driven by technology and in line with sustainable development. The cut-to-length method, in which we have specialised throughout our more than 50-year history, plays an important role in sustainable silviculture.
Information and data have slowly become increasingly important also in the forest industry, and the ongoing digitalisation has started a whole new era of data-driven business. Systematic data collection and data-based services have already been part of Ponsse's operations for decades, and the development of technologies and data processing tools has expanded the opportunities to scale digital services. Ponsse follows the industry's megatrends in its R&D activities, and the future product range will be a balance between the customer demand and the technologies that are launched on the market. Current megatrends in harvesting include digitalisation, sustainable and responsible forestry (including electrification), connectivity and data transfer solutions, and automation.
Our digital offering covers everything from distributed platforms to centralised user experiences. It also includes the PONSSE Manager platform, which brings all our customers' digital services together in one place. The factory-equipped Connectivity Unit is another good example of a data-to-information process. It automatically sends data from our forest machines and collects information about machine movements, operations and performance, among other factors. This helps maintenance services, for example, to remotely access the necessary data about machine's operations for solving problems and for evaluating maintenance needs.
In February, we launched the fully modernised Scorpion harvester model series. The next-generation PONSSE Scorpion meets all the requirements set by modern forest management and offers unprecedented stability, efficiency and productivity, bearing the environment in mind and with minimum surface pressure. The new Scorpion's characteristics include its excellent visibility and handling. One of the most prominent changes was the one-piece
windscreen, which extends to the roof of the cabin, offering even better visibility for the operator and ensuring safe working in all conditions. The unique crane solution offers visibility in all directions.
R&D for the new Scorpion, conducted together with customers, focused on improved ergonomics, safety, visibility from the cabin and usability. The workspace in the cabin was modified to be more practical, and the silent office with a view supports the operator's enjoyment and coping. The launch set a new standard for the operator's working environment, making our customer promise "A logger's best friend" even more solid than before.
PONSSE Active Care maintenance agreements have established their position in many market areas across the world. They make our customers' everyday operations easier and constitute a solid framework for preventive maintenance to provide customers with cost savings. Regular maintenance ensures uninterrupted machine operations and correct adjustments, maximises productivity and minimises fuel consumption.
In May, Ponsse Frame and Crane Care was launched for maintenance agreement customers, covering all machine frame parts up to 10,000 operating hours. The Frame and Crane Care provides customers with even more comprehensive maintenance agreement services.
In May, the new debarking PONSSE H7 HD Euca harvester head was launched. It further strengthened Ponsse's strategy of also being one of the world's leading manufacturers of harvester heads as well. R&D focused on mechanical durability and the ease maintenance. There was a general need for a more efficient and productive harvester head for processing small and medium-sized eucalyptus trees.
All PONSSE harvester heads are characterised by a simple and solid structure, which is why they can be used in various harvesting applications, ranging from harvesters to track-based solutions. All harvester heads are manufactured and designed at the Vieremä factory. Comprehensive design applies to both mechanical components and the electronic control system, controls and software. The manufacturing process is highly automated, guaranteeing a high level of quality and measuring accuracy.
The PONSSE Opti 8 touchscreen computer, equipped as standard in our forest machines from the beginning of 2021, received positive feedback from our customers throughout the year. During the latest update, the computer, which makes the operator's daily work quicker and easier, received performance upgrades and the most advanced touchscreen technology in the markets.
The completely upgraded and easy-to-adopt PONSSE Opti 5G information system allows operators to operate and adjust their forest machine directly on the touchscreen without needing to access any separate menus.
Throughout its history, Ponsse's operations have been guided by genuine customer orientation, and making the operator's work easier is one of our starting points. Active Crane, a crane control system for harvesters, is an example of how we make the operator's daily activities easier. With Active Crane, the operator can control the movements of the harvester head, instead of just controlling the individual operations of the crane. This allows the operator to focus on wood processing, instead of simply controlling the crane. The system is controlled using two levers, one of which controls the harvester head's height from the ground, and the other the direction of movement. The movement ranges of the controls are optimised for typical harvester work. The system also slows down all movements automatically before the end of their movement range to protect mechanical structures and the operator from straining impacts. When the operator indicates a specific spot, Active Crane automatically takes care of lifting, boom and extension movements.
In May, the PONSSE K101 and K111 loaders were launched. The new loaders are equipped with new working lights, they have a stronger structure, and they are even more productive, reliable and powerful. A user-friendly loader is a particularly important factor considering the smooth flow of work and the operator's wellbeing. The new loaders are also more maintenance-friendlier. The loaders feature powerful hydraulics and a proven structure, with which even the farthest stems can be loaded safely and precisely. The
K101 and K111 loaders are available for the most popular forwarders: PONSSE Buffalo, Buffalo King and Bison Active Frame.
Ponsse's firefighting equipment also continued its popularity in 2021. Installed in the forwarder's load space, the firefighting equipment helps suppress wildfires, even in challenging conditions. Operations in difficult terrain come as second nature to forwarders, and they have more than enough capacity in their hydraulic system for demanding conditions.
The firefighting equipment is a carefully thought-out system and an economical solution: the forwarder can be engaged in productive operations when the firefighting equipment is not required. The equipment is delivered to the fire location as a single package – and after it has been connected to forest machine hydraulics, the equipment is ready to operate. The 10 m3 water tank can be filled from a natural water source or the tank of a fire truck. The tank withstands the use of various chemicals mixed with water, as well as seawater. It is also light enough to be lifted into the machine load space. The water cannon has a range of 47 metres and a turning radius of 360 degrees.
Listening to customers is the principle that guides the daily activities of maintenance and the development of all operations. The Service network expanded during 2021, bringing services even closer to our customers. Shorter distances to service centres help us allocate more working hours for each customer and, in this way, improve our profitability. The daily activities, product and service range, and solutions of maintenance services help our customers focus on their core business – productive and effective harvesting.
The high availability of PONSSE forest machines, their optimal productivity and the proactive management of maintenance costs are the basic pillars of our customers' business. All of these also guide the daily activities of maintenance and the development of all operations. To guarantee better services for our customers, we are constantly developing our operations and expanding our service product range and network. Our uncompromising goal is to provide our customers with the best maintenance services in the field year after year.
The net sales of Service grew well in 2021. The customers' work situation was good, and machine maintenance events increased alongside higher annual operating hours, which was reflected in increased sales of Service. The developing product, service and solution range that supports our customers' operations also enabled growth.
The past year taught our Service network to live with the coronavirus pandemic. The changes in our operating models that we had made to serve our customers in the exceptional circumstances were established as everyday practices as the general situation became the new normal. Good examples include spare parts delivery services and Parts Online, a service for ordering spare parts.
We also expanded our range of spare parts, accessories and consumables during the year, and our goal is to continue to provide a high-quality range with competitive prices. Our offering is constantly developing towards solutions with digital services that accelerate the maintenance process and make services even more transparent. Digital solutions offer new opportunities to deepen and expand the service level, but if it were not for our specialists who quickly react to the needs of our customers and understand what each customer needs, our service promise "A logger's best friend" would be baseless.
Listening to customers and all the work we have done based on feedback have paid off – this is indicated by our satisfied customers. The best Service in the industry has long been and will continue to be the common goal of Ponsse's service network.
The well-being and expertise of our employees are key assets for our Service network, and prerequisites for everything we do and the development of our operations. We provide our personnel with continuous training, and we develop our working environment to be safer and more ergonomic.
Due to the travel restrictions caused by the coronavirus pandemic, employee training was also exceptional in 2021. Courses that quickly went online and training methods and content continued their development in the new normal. Online training routines have far-reaching results, but they also supplement in-person training by offering different digital opportunities.
The new normal in the training environment challenged our entire training network to pick up the pace in terms of development, and our training team and our entire network deserve thanks for their rapid reactions.
During the year, we responded to growing customer needs by developing our Service network across the world. This included investments in personnel resources, training, stocked spare parts, facilities and vehicles. The expanded network brought us even closer to our customers, with shorter distances to service centres allowing us to allocate more working hours for each customer and thus giving us the opportunity to improve our profitability.
During the year, PONSSE Active Care maintenance agreements established their position in many market areas across the world. They received highly positive feedback from customers, with development proposals helping us develop the content of maintenance agreements in the future.
Active Care agreements provide a strong framework for preventive maintenance to provide customers with cost savings. Regular maintenance also ensures correct machine adjustments to maximise productivity and minimise fuel consumption.
The goal of Active Care agreements is to safeguard machine availability and control machine maintenance costs, but they also give the opportunity to be more responsible. One goal is that recycled materials are handled by the authorised PONSSE maintenance network. Maintenance agreements also give the
opportunity to plan daily and weekly work, which helps improve occupational health and safety. Furthermore, preventive maintenance can support Reman operations, meaning the recycling of worn and damaged parts. In Reman operations, old spare parts are remanufactured, minimising the use of new materials and reducing environmental loads.
Our Service network serves our customers professionally and pays attention to local customer needs. Over the years, service centres have undergone a significant number of audits through the Effective and Safe Workshop (ESW) audit and development system. During the past year, the ESW already reached the admirable age of 10 years. Audits are an important part of the development of Service operations.
ANNUAL REPORT 2021 YEAR 2021
The Board was selected by the Annual General Meeting on 7 April 2021.
According to the Articles of Association, the Ponsse Plc Board consists of at least five and at most eight members. The Board members are selected by the Annual General Meeting which – according to the Articles of Association – must be held by the end of June each year. The period of office of the Board members ends at the next Annual General Meeting. The Board selects a chairperson for the period of office from among its members.
During the year under review, the Board convened 11 times. The Board members actively participated in the meetings – the attendance rate was 97.4%.
Commercial College Graduate in Marketing Ponsse Plc, Board Member since 2020 Shareholding in Ponsse Plc on 31 December 2021: 3,684,263 shares
Ponsse Plc, Group Sales and Marketing Director and Vice President 2008–2020 Ponsse Plc, Area Director, North European business area 2007–2008 Ponsse Plc, Sales Director, Finland 2004–2008 Ponsse Plc, Area Sales Manager 2001–2004 Ponsse AB, Warranty Handler and Area Sales Manager, used machines 1999–2001 Ponsse Plc, Warranty Handler 1997–1999
Einari Vidgrén Oy, Board Member KalPa Hockey Oy, Board Member Lumon Oy, Board Member Savonmaan Puolesta Oy, Board Member MAMMU KAARIO, b. 1963
Board professional Master of Law, MBA Ponsse Plc, Board Member since 2010 Shareholding in Ponsse Plc on 31 December 2021: 4,500 shares Independent of the company and major shareholders
Partnera Oy, Managing Director 2016–2017 Korona Invest Oy, Investment Manager 2011–2016 Unicus Oy, Partner 2006–2011 Conventum Corporate Finance Oy, Director 1998–2005 Prospectus Oy, Director 1994–1998 Kansallis-Osake-Pankki, Specialist 1988–1994
Aspo Oyj, Deputy Chairman of the Board CapMan Oyj, Deputy Chairman of the Board Gofore Oyj, Board Member Ilmastorahasto Oy, Board Member Lapti Group Oy, Board Member Makai Holding Oy, Chairman of the Board Puuilo Oyj, Board Member Robit Oyj, Deputy Chairman of the Board SAKA Finland Group Oy, Chairman of the Board Sibelius-Akatemian tukisäätiö ry, Board Member Suomen Urheilun tukisäätiö ry, Board Member Taideyliopiston sijoituskomitea, Member Urhea-halli Oy, Board Member
Mutant Koala Pictures Oy, Managing Director Bachelor of Culture and Arts Ponsse Plc, Board Member since 2011 Shareholding in Ponsse Plc on 31 December 2021: 3,764,778 shares
WORK EXPERIENCE Mutant Koala Pictures, Entrepreneur since 2004
OTHER KEY POSITIONS OF TRUST Einari Vidgrén Foundation, Board Member Einari Vidgrén Oy, Board Member
Master of Pedagogy Ponsse Plc, Board Member since 2000 Shareholding in Ponsse Plc on 31 December 2021: 6,207,000 shares
Ponsse Plc, Chairman of the Board 2010–2020 Ponsse Plc, Deputy to the CEO 2003 Ponsse Plc, Public Relations Manager, Marketing and Communications 2000–2010 Ponsse Plc, Press Officer 1998–2000
Commercial College Graduate Ponsse Plc, Board Member since 2013 Shareholding in Ponsse Plc on 31 December 2021: 3,691,742 shares
Ponsse Plc, Area Director 2007–2017 Ponsse Plc, Area Export Manager 2001–2007 Ponsse Plc, Marketing Manager 1994–2001
Einari Vidgrén Oy, Board Member
Master's degree in engineering (process technology) Ponsse Plc, Board Member since 2018 Independent of the company and major shareholders
Einari Vidgrén Foundation, Chairman of the Board Einari Vidgrén Oy, Chairman of the Board Vieremän Kylänraitti Association, Chairman of the Board Vieremän Oriyhdistys Association, Chairman of the Board Ylä-Savon Hippos Association, Chairman of the Board 20 21
Uros Oy, CEO 2020 Apetit Oyj, President and CEO 2015–2019 Stora Enso Oyj, Country Director and Board Member 2007–2015 Stora Enso Oyj, Managerial positions 1990–2007 Kemi Oy, engineer 1988–1990
Koskisen Oy, Chairman of the Board
Keitele Group, Director of sawmill operations M.Sc. (Econ.) Ponsse Plc, Board Member since 2016 Independent of the company and major shareholders
Keitele Forest Oy, Director of sawmill operations 2014– Keitele Forest Oy, Sales Director 2006–2014 Keitele Forest Oy, Export Manager 1999–2006
OTHER KEY POSITIONS OF TRUST Keitele Forest Oy, Board Member
31 December 2021
Dr. Tech. President and CEO Member of the Management Team since 2 January 2005 Joined Ponsse in 2002 Previous main positions: Ponsse Plc, Factory Director 2006–2008, Ponsse Plc, Quality and IT Director 2005–2006 Shareholding in Ponsse Plc on 31 December 2021: 62,541 shares
Forestry Engineer, MBA Sales, Service and Marketing Director Member of the Management Team since 1 June 2020 Joined Ponsse in 2007 Previous main positions: Ponsse Plc, Director, dealer network development 2018–2020, Ponsse Latin America Ltd., Managing Director 2016–2018, Ponsse Plc, Area Director, NA dealers, Baltics and Chile 2011–2016, Ponsse North America, Inc., Managing Director 2007–2011 Shareholding in Ponsse Plc on 31 December 2021: 722 shares
Student of Technology Director, Digital Services and IT Member of the Management Team since 1 December 2020 Joined Ponsse in 2018 Previous main positions: Ponsse Plc, Manager, IT and Digital Services 2019–2020, Ponsse Plc, IT Manager 2018–2019, Qentinel Finland Oy, Managing Director 2017–2018 Shareholding in Ponsse Plc on 31 December 2021: 180 shares
M.Sc. (Tech.) CFO and Deputy to the CEO Member of the Management Team since 1 October 2009 Joined Ponsse in 2009 Previous main positions: Suunto Oy, Director, Operations and Quality 2007–2009 Shareholding in Ponsse Plc on 31 December 2021: 7,670 shares
Technician (technical college), MTD Global Service Director Member of the Management Team since 3 May 2010 Joined Ponsse in 1994 Previous main positions: Ponsse Plc, Distribution Development Director 2007–2010, Ponsse Plc, Service
Director 2004–2007, Ponsse Plc, After Sales Manager 1997–2004, Ponsse Plc, Parts Manager 1995–1997 Shareholding in Ponsse Plc on 31 December 2021: 1,200 shares
B. Eng. Director, supply chain Member of the Management Team since 1 October 2013 Joined Ponsse in 2013 Previous main positions: Metso Corporation, Metso Automation, Director, Analyzers Product Group 2010–2013, Director, Kajaani Operations 2006–2010 Shareholding in Ponsse Plc on 31 December 2021: 6,416 shares
JUHA INBERG, b. 1973
Dr. Tech. Director, Technology and R&D Member of the Management Team since 1 January 2009 Joined Ponsse in 2003 Previous main positions: Ponsse Plc, R&D Engineer 2003–2006, Engineering Manager 2006–2008 Shareholding in Ponsse Plc on 31 December 2021: 12,796 shares
PAULA OKSMAN, b. 1959
Director of Human Resources and Ponsse Academy Member of the Management Team since 1 August 2005 Joined Ponsse in 2005
Previous main positions: Genencor International Oy, Manager of Human Resources 1996–2005, University of Jyväskylä, Continuing Education Centre, Head of Training Division 1987–1996
Shareholding in Ponsse Plc on 31 December 2021: 6,436 shares
FERNANDO CAMPOS, b. 1982 Managing Director, Ponsse Latin America Ltd. Area Director Brazil
Joined Ponsse in 2006
GARY GLENDINNING, b. 1970 Managing Director, Ponsse UK Ltd. Area Director Ireland Joined Ponsse in 1997
MARTIN TOLEDO, b. 1971 Managing Director, Ponsse Uruguay Ltd. Area Director, Argentina and Chile Joined Ponsse in 2005
JANNE TARVAINEN, b. 1968 Area Director, Australia, New Zealand, Portugal, South Africa and Spain Joined Ponsse in 2017
TARMO SAKS, b. 1975 Area Director, Baltic countries, Poland, Slovakia and the Czech Republic Joined Ponsse in 2019
PEKKA RUUSKANEN, b. 1968 Managing Director, Ponsse North America Inc. Joined Ponsse in 1998
ANTTI RÄSÄNEN, b. 1976 Area Director, Bulgaria, Croatia, Hungary, Italy, Romania, Serbia and Slovenia Joined Ponsse in 2002
CLÉMENT PUYBARET, b. 1980 Managing Director, Ponssé S.A.S. Joined Ponsse in 2006
CARL-HENRIK HAMMAR, b. 1974 Managing Director, Ponsse AB Managing Director, Ponsse AS Joined Ponsse in 2015
JUSSI HENTUNEN, b. 1983 Director, Ponsse retail network Joined Ponsse in 2006
JYRI KYLÄ-KAILA, b. 1979 Managing Director, Epec Oy Joined Ponsse in 2019
RISTO KÄÄRIÄINEN, b. 1971 Managing Director, Ponsse China (Beihai Ponsse Trading Co. Ltd) Area Director, Japan Joined Ponsse in 2007
JAAKKO LAURILA, b. 1970 Managing Director, OOO Ponsse Area Director, Russia and Belarus Joined Ponsse in 2002
JANI LIUKKONEN, b. 1972 Country Director, Finland Joined Ponsse in 2001
TUOMO MOILANEN, b. 1965 Area Director, Austria and Germany Joined Ponsse in 2011
EERO LUKKARINEN, b. 1965
Area Director, North American Dealers Joined Ponsse in 2012
For everyone at Ponsse, responsibility means a shared set of strong values that emphasise honest work, respect shown towards people and our strive to achieve the best possible results, also considering the environment. Together, we have the enthusiasm, skill and will to constantly make things better.
Corporate responsibility at Ponsse 26 Social responsibility 32 Environmental responsibility 40 Finances and administration 46 Goals and actions plan 54 Einari Vidgrén Foundation 55
Ponsse is committed to carrying out its business sustainably and responsibly. Responsibility is central to the company's values, strategy and good governance. The purpose of this review is to describe our responsibility practices and principles and provide transparent information on our operations, also including information other than financial reporting.
Ponsse's values – integrity, innovation, the Ponsse spirit, and customer closeness – lay a solid foundation for all our operations and have guided us throughout our history to do honest work, respect people and cooperation, and develop outselves as part of our community. Machine entrepreneur Einari Vidgrén founded the family-owned company in 1970 in Vieremä where our production and head office are still located today. We have grown as an integral part of the community around us which has naturally helped us understand our social, financial and environmental impact.
Currently, Ponsse operates in more than 40 countries through our subsidiary and service networks, and our customers range from small harvesting companies to major international corporations. The customer-based development of products and services, honest operations and confidential relationships have enabled our long-term growth-driven operations. In recent years, our stakeholders' expectations and interest towards other parts of our corporate responsibility have also increased. This is a significant asset for our development. Needs to develop environmentally friendly products and services have steered us in the correct direction, while the requirements for transparency guide us towards a more systematic development of responsibility. We are committed to developing ourselves and complying with the EU's responsibility requirements for business activities that support our stakeholders' access to transparent and up-to-date information on our operations.
Ponsse's mission and vision, revised in 2021, emphasise the significance of responsibility and sustainable development as our future success factors and as prerequisites for the continuity of our operations. We believe that our technologies offer more opportunities to follow the principles of sustainable development in forestry. Productive harvesting that respects the environment supports the regeneration of commercial forests and enables the use of valuable raw materials in long-lasting and high-quality wood-based products, replacing plastic and concrete, among others.
In 2021, Ponsse was selected, for the fourth time, as the most reputable company in Finland in the annual Reputation&Trust survey, measured by the following dimensions: governance, financial performance, leadership, innovation, dialogue, products and services, workplace, and responsibility. We also aim to develop further in all these dimensions.
Our carbon footprint decreased by 42% from 2019 to 2020. For the first time, we calculated the carbon footprint of the entire Ponsse Group.
35% more safety observations We made a total of 3,435 safety
observations and implemented 5,700 measures to develop or maintain safety.
Ponsse Plc's operations comply with the ISO 9001 standard for quality management, ISO 14001 standard for environmental management and ISO 45001 standard for occupational health and safety management.
We are already 2,072 employees strong, and each of us included in the incentive system.
Remanufacturing provide customers with low-cost spare parts, minimises material waste and solves challenges related to the availability.
In Finland, the share renewable electricity accounts for 100% of our energy consumption. We use
renewable hydropower.
footprint
Renewable
-42%
Ponsse's revised mission and vision highlight responsibility and sustainable development as key parts of Ponsse's business strategy. The company's annual strategy process defines func tion-specific responsibility goals and measures, and the evalua tion of responsibility risks and opportunities is part of our risk management process.
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Ponsse's Board of Directors and management are committed to advancing corporate responsibility. We have developed an op erating policy, in which the Board of Directors is provided with a regular overview of the company's responsibility activities, as well as risks and opportunities associated with corporate re sponsibility. The overview is maintained by the company's CEO and deputy CEO who are responsible for ensuring that corporate responsibility is part of the company's strategy and risk manage ment. The Management Team is in charge of function-specific responsibility goals, their monitoring and achievement, and the identification of operational risks and opportunities associated with responsibility.
During 2021, we increased our resources in responsibility ac tivities. The company appointed a sustainability manager whose task is to guide and develop key focus areas of responsibility together with different functions. In addition, separate resources were allocated to key functions considering our responsibility goals. HSE managers are responsible for the development of health, safety and environmental activities, and the procurement development specialist guides the advancement of responsibility goals related to the supplier network. The interest and commit ment of Ponsse's personnel towards developing more and more responsible operating methods and solutions has strengthened the value of responsibility.
Harmonised responsibility practices are ensured based on the company's Code of Conduct and values. We require Ponsse's em ployees and partners to comply with the principles of our Code of Conduct and respect our values whenever they work with or represent Ponsse. The Code of Conduct training is part of the induction programme for our new employees, and the training completion rate is monitored in annual performance appraisals.
Of all our suppliers, 72 per cent have signed the Ponsse Supplier Code of Conduct and ten per cent have verified their commitment to following responsible operating methods through other documentation.
•Customer satisfaction
Areas: •Maintenance network •Processes •Competence
| Goal: Goal: |
|
|---|---|
| Innovative products and services supporting Balanced and sustainable company finances sustainable silviculture and the preservation ensure our ability to develop and invest. of nature. Areas: Areas: •Cash flow from business operations •Cut-to-length (CTL) method •Profitability •Environmental impact •Solvency •Biodiversity |
|
| Administration and management Lifecycle management Goal: Goal: Services supporting the environmentally Reliable, developing financial management. sustainable use and lifecycle of our product Good corporate governance ensures that busi solutions. ness principles and practices are ethical and of a high professional quality. |
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| Areas: •Maintenance network Areas: •Processes •Proactive financial management •Competence •Sustainable financing solutions •Product and service range •Investments and risk management |
|
| Natural resources Stakeholders Goal: Goal: Harmonised and environmentally sustainable Supporting stakeholders' continuity. operations by using state-of-the-art technology and saving natural resources. Areas: •Customers Areas: •Personnel •Owners •Environmental management •Energy and material efficiency •Suppliers |
|
| •Water consumption •Society •Emissions |
Goal: Honest, ethical and communal operations and communication.
Areas: •Ethical practices •Responsibility of partners •Open communication and cooperation
Goal: Harmonised and environmentally sustainable operations by using state-of-the-art technology and saving natural resources.
•Water consumption •Emissions
•Waste
RESPONSIBILITY
Ponsse is a good and safe place to work for us. We work productively following the excellent Ponsse spirit, appreciate one another and take care of each other, our customers and our whole network.
Our product and service solutions play an important role in enabling the implementation of the principles of sustainable forestry. We bear responsibility for the machine lifecycle and extend it through good maintenance services. Sustainable and responsible development offers us a direction and opportunities.
We understand the impact of our operations on the environment and human rights. In our operations, we seek carbon neutrality and material efficiency.
Acting honestly and ethically as a community is at the core of Ponsse. Good corporate governance and our Code of Conduct define how we treat people equally, conduct sustainable business and engage in confidential cooperation with our partners.
Investments in R&D: EUR 23.8 million Forest machine recycling rate: 97%
Percentage of maintenance agreements in new machine sales: 41%
Highest environmental impact:
•production of the steel used in manufacturing
•95% of CO2 emissions during the machine lifecycle are generated at the operating stage (fuel manufacturing and consumption)
Carbon footprint: -42%, 2020 4,657 t CO2-eq (2019: 7,972 t CO2-eq)
Renewable electricity in Finland: 100%
The Group's energy consumption (electricity and heating): 22.61 GWh
Waste utilisation rate in Finland: 91%
Increase in the sale of recycled parts (reman, budget): 50%
Total taxes paid: EUR 56.7 million, of which EUR 25.9 million in Finland
Net promoter score, Ponsse network*: NPS 62 (n=1,107) Net promoter score, Ponsse Group: NPS 31 (n=618)
* Ponsse Group and Ponsse dealers
Integrity, Innovation, the Ponsse spirit, Customer closeness
Safety, LTIF: 17.1 Employee engagement, eNPS: 40 Voluntary employee turnover: 7.3% Incentive programme coverage: 100%
Ponsse is an equal and non-discriminating working community, in which everyone has equal opportunities, rights and obligations.
Our aim is that our machines are as safe and ergonomic as possible for their users. We select high-quality materials that withstand long-term wear for our machines. We develop solutions that save the environment, promote the circular economy and reduce environmental impact during the machine lifecycle.
Social, ecological and financial sustainability guide how we select our suppliers. We know our suppliers, and together, we improve transparency and risk management, while being committed to complying with our Code of Conduct.
We build trust by engaging in open cooperation and long-term business activities with our different stakeholders. Working as a community is important to us wherever we operate.
At Ponsse, social responsibility means responsi bility for the impact of our business activities on people, taking responsibility for this impact, and continuously aiming to have a positive impact on our people and community. Ponsse has a strong value base that steers its employees to respect people and cooperation, and to develop our opera tions and community.
We are committed to respecting internationally recognised human rights, including international conventions on human rights and the ILO Decla ration on Fundamental Principles and Rights at Work. We are also committed to complying with the UN Guiding Principles on Business and Human Rights. We do not accept child labour or other forms of forced labour in any circumstances.
Ponsse complies with the ISO 45001 standard for occupational safety and health management. We want to offer our employees a safe and healthy working environment and be an equal and relia ble employer. Our goal is to be a developing workplace and have responsible, healthy and competent employees who are treated with equal respect.
Ponsse accepts no discrimination against our employees or job applicants based on age, origin, nationality, language, religion, conviction, opinion, political action, trade unionism, family relations, health, disability, sexual orientation or other personal reasons. We promote an equal, non-discriminating and diverse working culture, and we do not accept any harassment or work place bullying. We support the freedom of association, and every employee has the right to either belong to a trade union or not, and to participate in codetermination in their workplace.
In 2012, we revised our equality and non-discrimination plan and defined the goal that all Ponsse's employees should feel that they are treated in an equal and non-discriminating manner. We conducted a pay survey for the personnel working in Finland to identify the job classification, remuneration and any pay differ ences between men and women. No unjustified pay differences among employees carrying out the same or similar work were identified. Ponsse conducts the pay survey every three years and revises the equality plan in other respects every year.
At Ponsse, employees have equal opportunities to apply for various positions and to advance in their careers in accordance with their education and competence. Vacancies are available for application by everyone with a few exceptions. Ponsse aims to facilitate coordination between work and leisure through working hours arrangements and by adopting a positive approach to the use of family leave.
At the end of 2021, men accounted for 89 per cent and women for 11 per cent of Ponsse Group's personnel. We seek to find new ways to make the forest industry more attractive. Considering the company's growth and development, it is important for Ponsse to recruit the best professionals in the field, regardless of the gender or other personal background.
In 2021, the number of personnel increased by 227 new em ployees, mainly in Finland, Russia and Brazil, with the number of personnel totalling 2,072 at the end of the 2021. Including our Finnish subsidiary Epec Oy, a total of 1,154 of our employees work in Finland where all PONSSE forest machines are designed and manufactured.
To advance our personnel's competence and recruitment, we are engaged in cooperation with universities, universities of applied sciences and vocational schools. We also provide vocational training in our facilities. Together with Ylä-Savo Vocational College, we have trained mechanics and welders in our production for ten years now through the "Ponsse Polku" (Ponsse Training Path) programme, and it has become an im portant recruitment channel for our factory. In 2021, Ylä-Savo Vocational College gave Ponsse the "Mainio koulutustyöpaikka" (Great Workplace for Education) certificate.
Ponsse has emphasised the appreciation of its personnel since the founding of the company. The input and role of every employee is an important part of the whole. We want our employees to be safe and healthy and feel that they have a meaningful job in which they want to continuously improve their performance. Ponsse's employees are our most important assets and prerequisites for all our development.
The availability of skilled employees also presents a challenge to Ponsse. We maintain a positive employer image by means of high-quality recruitment and communication. In Finland, we have a presence in key technology locations, and we provide job opportunities across Finland.
As part of Ponsse's work culture, it is important that all Ponsse employees understand the company's position and goals. The company's strategic goals are communicated and implemented in each function every year and, as a result, they become part of every employee's personal goals. The goals are monitored through daily management and development appraisals.
Ponsse's corporate culture is based on the Code of Conduct and the One Ponsse programme. One Ponsse is an operating model for every Ponsse employee. It focuses on our activities for the benefit of our customers and defines the principles that guide our daily activities: customer orientation, working together and taking responsibility, open and proactive communication, agile execution and transparency, and unified operating methods.
In accordance with One Ponsse, we bear responsibility for what we do and for our common goals, without any organisational boundaries. The ground rule always is that communication in the organisation is open and active, and we work with respect for each other and our common practices. This is visible to our customers as first-rate services and rapid responses to customer needs.
All of the Group's supervisors participate in the One Ponsse Leadership Programme, which provides guidance towards systematic and high-quality supervisory work. The One Ponsse principles are implemented in the daily activities of Ponsse's employees through training and communication for all employees. In 2021, One Ponsse training focused on leadership and supervisory skills in the exceptional circumstances caused by the coronavirus pandemic.
Motivated employees who feel well have a significant impact on work results and customer experiences. The experiences and well-being of Ponsse's employees are monitored not only through development appraisals conducted twice a year, but also through the quarterly "Ponssen Pulssi" (Ponsse Pulse) well-being survey and the eNPS index, which measures employee experiences. In addition, the Group conducts an extensive personnel survey every two or three years.
In 2021, the Group's total eNPS ranged from 31 to 49, with the average being 40 (Q4/2020: +55), which has been set as a limit for excellent results in the index. Our employee feedback highlighted the uncertainty related to the coronavirus pandemic
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| The Group's personnel on 31 December | 2,072 | 1,845 | 1,764 |
| Personnel in Finland, % | 57% | 59% | 60% |
| Personnel in other countries, % | 43% | 41% | 40% |
| Permanent employees, % | 97% | 94% | 95% |
| Fixed-term employees, % | 3% | 6% | 5% |
| Full-time employees, % | 98% | 97% | 97% |
| 150 Part-time employees, % |
2% Henkilöstö tytäryhtiöittäin 31.12. |
3% | 3% |
| Average duration of employment, years | 7.2 | 7.6 | 7.3 |
| Voluntary employee turnover, % | 2020 7.3% |
4.1% | 202 5.1% |
| Average age of the personnel | 38 919 |
40 | 40 |
| Ponsse Oyj The personnel's age distribution |
1 004 |
||
| Ponsse AB Under 30 years |
64 23% |
21% | 71 19% |
| 30–49 years | 58% 12 |
60% | 60% |
| Ponsse AS Over 50 years |
19% | 19% | 12 21% |
| Ponssé S.A.S Gender distribution, % |
38 | 42 | |
| Female | 11% 24 |
11% | 12% 29 |
| Ponsse UK Ltd. Male |
89% | 89% | 88% |
| Ponsse Machines Ireland Ltd. Gender distribution among supervisors, % |
8 | 7 | |
| Ponsse North America, Inc. Female |
80 12% |
10% | 86 11% |
| Male | 88% | 90% | 89% |
| Ponsse LaAn America, Ltda. Gender distribution in the Management Team, % |
328 | 390 | |
| Ponsse Uruguay S.A. Female |
97 13% |
11% | 109 14% |
| OOO Ponsse Male |
118 87% |
89% | 139 86% |
| Gender distribution in the Board of Directors, % | |||
| Ponsse China Ltd. Female |
31 14% |
14% | 33 17% |
| Epec Oy Male |
126 86% |
86% | 150 83% |
| Salaries and wages, EUR million | 102.8 | 85.7 | 92.7 |
| Incentive scheme coverage | 100% | 100% | 100% |
Personnel by personnel group on 31 December
985 (876)
166 (154)
34 35
and the availability of components. We have set an eNPS of more than 50 as our long-term goal.
A total of 1,176 employees participated in the annual sur vey to measure the quality of management, with the Group's average score being 3.25 (2020: 3.32) on a scale from 1 to 4. Management training provided for Ponsse's subsidiary network evened out any company-specific differences, and the total score was good.
The voluntary employee turnover increased in the good job market situation to 7.3 per cent (2020: 4.1). Our goal is to keep employee turnover below five per cent. A full 100 per cent of Ponsse's personnel are included in performance reward schemes.
The majority of our white-collar employees also continued to work remotely in 2021 with the exception of production and maintenance services. Ponsse's employees complied with our strict safety instructions which helped us avoid any coronavirus infections in our facilities. Enhanced communication and occupa tional healthcare services also supported our success.
We comply with the ISO 45001 standard for occupational safety and health management in our operations. With regard to work safety, our goal is to develop safety culture and thinking, and to prevent accidents by investing proactive safety measures. At Ponsse, the development of smooth work flow and quality is also closely linked to the safety measures. We are committed to im proving occupational health and safety to meet our stakeholders' expectations, and we comply with the legislation and the Group's guidelines to ensure a safe working environment in all our oper ating areas.
Ponsse measures occupational safety using the Lost Time Injury Frequency (LTIF), which represents the number of accidents leading to absences per one million working hours. In 2021, changes and uncertainties in daily work processes were also reflected in safety. In 2021, the Group LTIF rate was 17.1 (2020: 7.8). A total number of accidents resulting in sick leave was 64 (2020: 27), of which 26 (2020: 12) resulted in less than three days of sick leave and 38 (2020: 15) more than three days of sick leave.
Our goal is to be an accident-free company in the future. To achieve our safety goals, we will target measures at preventive safety and continuous observations. As a tool for predictability, we also use risk assessment and safety observations, walks and training. In 2021, the a total of 3,435 safety observations were reported in the Group (2020: 2,539) and approximately 5,700 measures were implemented to develop or maintain safety. The number of safety observations increased particularly in China
(173) and the highest increase in safety walks was in Russia (52). At the end of the year, Ponsse AS in Norway had the longest con secutive period without accidents, where no accidents resulting in sick leave have occurred in more than ten years.
We also focused on safety resources and, during 2021, Ponsse's subsidiaries in Sweden, the UK, Ireland and China appointed a person responsible for safety and the environment. In addition to Finland, Ponsse's subsidiaries in Brazil and Uruguay, as well as Epec Oy, have a full-time health, safety and environ ment manager. LTIF (Lost Time Injury Frequency) 2019 2020 2021 16,1 7,8 17,1
Mutual trust with our different stakeholders is based on open long-term cooperation. Our key stakeholders include our customers and members of the entire Ponsse network. We want to know our customers personally and also address their families and stakeholders in our activities. The Ponsse network consists of our own companies, as well as our dealers who we always aim to treat as equivalent to our own companies. We monitor customer satisfaction in all our sales and service activities. At the end of 2021, our net promoter score (ranging from -100 to +100) was 31 within Ponsse Group, and 62 when our dealers are included.
We find it important to be a responsible company in the communities in which we operate. When selecting our partners, we address the local dimension and aim to create regional well-being through profitable and environmentally sustainable operations. Ponsse's production and head office are still located in the company's birthplace in Vieremä where we have a high impact on regional employment. At the end of 2021, we had 659 employees at our factory and 116 employees at our Iisalmi logistics centre and in our maintenance services. In addition, nearly 400 employees work in companies that mainly act as Ponsse's subcontractors or manufacture components for Ponsse in the partnership business park located in the immediate vicinity of our factory. We make 47 per cent of our purchases from subcontractors that are located within a 25-kilometre radius from our production.
In addition, our sports sponsorships highlight the local dimension, a shared set of values and long-term partnerships, ranging from children and young people to professional sports.
Our stakeholders' expectations have an impact on our responsibility goals, and we try to understand the expectations set for us through active cooperation. We conducted a stakeholder survey at the end of 2021 and at the beginning of 2022 to identify our stakeholders' expectations related to responsibility. The targeted online survey was responded to by 443 and the interviews by 14 specialists in our different market areas. Of the respondents to the online survey, 82 per cent represented Ponsse's personnel. The interviewees were specialists representing the company's Board of Directors, the supplier, customer and service networks, forest companies, educational institutions, environmental associations, and funding and investment companies.
This was Ponsse's first large-scale responsibility survey targeted at stakeholders, and we will use its results to prioritise the focus areas of our responsibility during the spring of 2022.
Our employees and stakeholders can report any activities in breach of our Code of Conduct through our whistleblowing channel on the company's website. The whistleblowing team
appointed by Ponsse's Board of Directors processes reports submitted through the channel and forwards them to the Management Team, if required. In 2021, nine reports were submitted to the whistleblowing channel. The anonymous reports were divided into the following topics: conflicts of interest (2), corruption (1), misuse (2), HR procedures and guidelines (2), as well as privacy protection and the protection of personal data, and security in network and information systems (2). All of the reports were investigated following the agreed process, and we identified needs to specify guidelines and procedures. The reports did not lead to any legal proceedings.
In the development of PONSSE forest machines, we always prioritise the customers and the end users, especially machine operators and maintenance personnel, but is also necessary to ensure the safe machine manufacturing. We assess the risks to machine users during the product life cycle at the earliest stage possible. Primarily, we aim to eliminate any hazards by means of design and secondarily through technical protective measures that improve safety. Warnings and instructions related to any residual risks remain the final means.
Our products meet the international standards applicable to them and the relevant safety requirements set out in directives, including the safety cabin's protective FOPS, OPS and ROPS
Honesty, ethics and communality in operations are vital factors for us. Good corporate governance and our Code of Conduct define how we treat people equally, conduct sustainable business and engage in close cooperation with our partners.
structures and related test standards. As an indication of this, all machines carry the CE marking, and a declaration of conformity, including references to relevant directives, is delivered with each machine. We participate in the development of industry standards in the international standardisation committee to enable safer solutions in the future together.
The professional skills of forest machine operators are highly significant considering the safe use of machines. High-quality operator training and instructions, combined with professional maintenance services during the product lifecycle, significantly improve not only the productivity and smooth flow of work, but also safety. Operator training also ensures that working methods and the forest machine and its equipment are suitable for each logging site in the best possible manner and that the harvesting results support sustainable forestry.
Ergonomics is a significant part of the forest machine operator's well-being. We invest in ergonomics by offering the best possible visibility over the work area from the cabin and by developing cabin and workstation ergonomics, such as the seat and controls, and by stabilising and levelling the operator's work environment, if required. User interfaces and automation systems, such as the Active Crane boom control system, are part of development. The user interface must be easy to use and provide the information required at the correct time to reduce the cognitive load targeted at the operator.
In 2021, we calculated for the first time the carbon footprint of the entire Ponsse Group for emissions from our own operations (Scope 1) and the energy we purchase (Scope 2). The calculation was made according to the GHG (greenhouse gas protocol) developed to calculate the climate change impacts. In our carbon footprint calculation, we report fossil and biogenic emissions separately. Fossil emissions come from the combustion and use of non-renewable energy sources, and biogenic emissions from the utilisation of organic energy sources, for instance forest chips, which produce thermal energy used by our Vieremä factory.
In 2019, the total carbon footprint of Ponsse's global opera tions was 7,972 t CO 2 eq and 42 per cent less, 4,657 t CO 2 eq in 2020. The main reason for the reduction of carbon footprint was the transition from the use of general electricity to the guaranteed 100% renewable hydropower at all our offices in Finland. In 2019, our biogenic emissions were 2,863 t CO 2 eq and 2,445 t CO 2 eq in 2020.
The overall climate change impact, i.e. absolute emissions, of Ponsse's operations decreased by a total of 34 per cent from 2019 (10,835 t CO 2 eq) to 2020 (7,102 t CO 2 eq). In 2020, the most notable impacts on our carbon footprint included the use of our own vehicles and machines, purchased heat and test driving of produced forest machines.
In 2019, the Scope 1 and Scope 2 emissions had an equal im pact on our carbon footprint, but after transition to renewable en ergy in Finland, 75 per cent of our emissions in 2020 came from our own operations (Scope 1). The emissions from purchased energy (Scope 2) varied between our subsidiaries due to different energy options in our different market areas. In the European energy and electricity markets, it is easy for consumers to choose how the energy they purchase is generated.
We will continue to calculate our carbon footprint for 2021 during H1/2022 once the production mix of energy producers needed for calculation becomes available. Based on the calcula tion results and our current state assessment, we will prepare a roadmap to our carbon neutrality target and determine the Scope 3 emissions relevant to our operations, which come, for example, from the end use of the products we manufacture and purchased components. During 2022, we will also schedule and define the first percentage emission reduction targets and measures to reduce emissions, and set concrete targets and timetable for our carbon neutrality target.
As part of the audit of our customer's supplier network, we participated in the CDP's climate change impact assessment in the summer of 2021. However, since our carbon footprint calculation at the Group level was not completed, we were not able to include calculation data on our climate change impact in the assessment and our result was D. Despite the poor result, our participation improved our understanding of our climate change impact.
The primary objective of the sourcing and logistics is effective inventory turnover and optimal availability of materials. This helps maintain our inventory and keep our space and resource requirements reasonable, as well as avoid material waste. The biggest environmental impacts of our sourcing and logistics are related to the manufacturing of steel used in PONSSE forest machines and transport of components. The combined percentage of steel and cast components in the weight of forest machine is considerable, making up 82 per cent. We calculate and measure machine structures in our R&D in order to optimise the use of steel depending on the site load. The recycling rate of the forest machine is 97 per cent.
We have managed our environmental impact and other sourc ing-related risks, for example, by concentrating our purchases in Europe and especially in Finland. 75 per cent of Ponsse's direct suppliers and subcontractors are located in Finland and 22 per cent in other EU countries. Ponsse in not engaged in direct sourc ing from the so-called low-cost countries to a substantial extent. Besides Finland, the most technologically advanced and most expensive components of the PONSSE forest machines come from Germany and Sweden.
More than 20 per cent of our subcontractors are located within a radius of 25 kilometres from our production, mainly in a business park for partner companies next to Vieremä factory. The proximity of the location significantly reduces emissions from transport and enables shared transport between our production and our subcontractors.
We aim to manage the environmental impacts from trans port by making transportations more efficient and developing packaging solutions. 90 per cent of our transportation partners report their carbon footprint to us and we prepare to expand our emissions monitoring. We cooperate with our largest suppliers to reuse packaging between them and Ponsse. Recyclable
We manage and develop Ponsse's business taking environmental aspects into account in all our operations. We want to avoid or minimise the negative impacts of our products, services, operations and decisions on biodiversity, the ecosystem and sufficiency of natural resources. Our objective is to recognise the environmental impact of our operations and achieve carbon neutrality and high material efficiency in our operations. Ponsse is committed to comply with the ISO 14001 environmental system standard.
packaging, transport racks designed for PONSSE components and packaging design has reduced not only the use of packaging materials but also the parts' damage and improved the freight load factor. We use folding packaging for large products to make return logistics more efficient.
In our deliveries, we mainly use standard, reusable pallets and send disposable pallets for shredding and further for district heat production in Vieremä. In other respects, we fulfil our producer responsibility by circulating the packaging generated in our operations to a producer community who sends the materials for recycling or energy recovery.
We manufacture all PONSSE forest machines in Vieremä and production accounts for approximately a third of Ponsse's carbon footprint. The environmental impacts of production come from the consumption of energy and raw materials, use of chemicals and VOC emissions from surface treatment. We have an environmental permit for our operations and a chemical storage and handling operations granted by TUKES (Finnish Safety and Chemicals Agency).
We use electricity generated by hydropower with guarantees of origin in our production and all our offices in Finland. In 2021, the factory's solar power station with 640 solar panels generated a total of 150 MWh of electricity.
We are modernising our building system technology in conjunction with all production technology and real estate investments to enable energy efficiency and predictive maintenance. The upgrade of the building automation implemented in Vieremä's facilities in 2021 and inspection of the controls and adjustments of machines with Stage IV engine will generate 203 MWh of annual energy savings. In addition to environmental values, the energy savings we achieve also generates economic benefits and the investment pays for itself in 2,3 years.
Our production method is not water-intensive. We use water only to wash parts during surface treatment and to wash machines after test drive. Thorough equipment cleaning also prevents the spread of invasive species. In surface treatment, we use the same water multiple times to minimise consumption. In 2021, the water consumption in our production increased by 27 per cent compared to the previous year, amounting to 14,946 m3 (2020: 11,721 m3 ).
In 2021, we reduced VOC emissions from our production, contributing to global warming, per litre of used paint by utilising a new paint grade with a higher content of dry matter in the surface treatment. Besides being environmentally friendly, the new paint provides higher corrosion resistance, lower environmental load and better spreading rate.
Our goal is to avoid the generation of waste and especially mixed waste in our operations. We sort the generated waste so it can be reused and recycled as efficiently as possible as a material or for energy recovery. Currently, we are able to recycle cardboard, paper, plastic and metal waste generated in our production.
After the forest machine is completed on the assembly line, it is filled with light fuel oil or diesel based on customers' needs and the country of destination. Since the beginning of 2020, only diesel produced from renewable raw materials has been used in our production, which has reduced the fossil emissions of our production by 0.2 per cent per year. Emissions from the first fill fuel are included in the Ponsse's own emissions (Scope 1) as 75 per cent of the fuel is used for machine testing and delivery. According to the life cycle assessment, using diesel in the machine over the entire service life will reduce its fossil carbon footprint by more than 90 per cent. In 2021, biodegradable hydraulic oil selected as a first fill fuel was used in 16 per cent of our new machine deliveries.
Post-production machine testing generates emissions from fuels and oils used in the transport and test drive of the machines. We use our own transport fleet to deliver all produced PONSSE machines to the test site, to our domestic customers and to Iisalmi railway station for export onward transport around the world. 80 per cent of our production is exported and all exports are transported to the port by rail, the most energy-efficient and low-emission transport mode.
| 2021 | 2020 | 2019 | |
|---|---|---|---|
| Carbon footprint | |||
| fossil, t CO2-eq | Q2/2022* | 4,657 | 7,972 |
| biogenic, t CO2-eq | Q2/2022* | 2,445 | 2,863 |
| carbon intensity, t CO2-eq/EUR thousand (total emissions/net sales) | Q2/2022* | 0.007 | 0.012 |
| Energy | |||
| energy consumption (electricity and heating), GWh | 22.61 | 21.15 | 24.15 |
| distribution of energy consumption | |||
| electricity, GWh | 12.38 | 11.37 | 12.91 |
| heating, GWh | 10.23 | 9.81 | 11.23 |
| fuel, GWh | Q2/2022* | 12.6 | 14.89 |
| share of renewable / fossil-based electricity, % | 89.1/10.9 | - | - |
| VOC emissions | |||
| VOC emissions, kg (production) | 15,261 | 12,980 | 13,200 |
| Water | |||
| water consumption, m3 | 29,614.9 | 24,688.7 | 32,172.7 |
| Waste** | |||
| waste, kg | 2,433,236 | 2,257,364 | 2,845,177 |
| waste recycling rate, % | 38 | 45 | 39 |
| waste utilisation rate, % | 91 | 93 | 92 |
*The results of the 2021 carbon footprint calculation and energy consumption distribution will be published in Q2/2022 on the company's website. The heating plant production distributions required for the calculations are not available at the time of publication of this report. ** The waste volume is only reported for Ponsse's operations in Finland.
Ponsse's circular economy competence is particu larly strong in the spare part and used machine business. We sell and refurbish used machines in all our markets. Trade-in machines refurbished by skilled technicians can be upgraded with a range of performance packages to meet the requirements of forestry today.
Ponsse Reman & Parts Recirculation Unit, located at the logistics centre and maintenance services in Iisalmi, handles parts damaged at the custom ers, factory or in the sales networks, which are sold at to the customers at an affordable price after reconditioning or utilised in the refurbishing of used forest machines. The goal is to promote circular economy by establishing reconditioning services at our non-EU subsidiaries closer to local customers.
Remanufacturing offers customers affordable products, minimises material loss and also solves problems related to the availability of spare parts. The parts received for reconditioning are usually the largest and the most expensive parts of mechanical transmission, such as engines or gear systems. In 2021, the engine testing equipment was deployed in Iisalmi to ensure the quality of refurbished engines. The price of the parts require a deposit, which the customer will get back when returning the damaged part for reconditioning. This way we can ensure that the spare parts do not end up as waste.
We have studied the environmental impacts of reconditioning using a life cycle assessment and the results support the goals of a circular econ omy: the carbon footprint of a single component is reduced by approximately one quarter when a reconditioned component is selected instead of a new one. The better we are at reusing machine parts, the less emissions there will be from the machines during their entire life cycle.
In 2021, Ponsse was included in the Finland's Independence Celebration Fund 's "The most interesting companies in the circular economy in Finland" list as a pioneering company that offers circular economy solutions.
Pioneer in circular economy
We are committed to developing sustainable and innovative harvesting solutions. In line with the expectations of our stake holders, environmental aspects have become a major driver in our R&D. Our investments in minimising the fuel consumption, emissions, forest damage and soil degradation, as well as the continuous development of our service processes also affect the sustainability of our customers' operations.
We have identified the life cycle environmental impacts of the Ponsse's products and services using the life cycle assessment (LCA) specified in the ISO 14040 standard. We have studied the environmental impact of the manufacturing, transport and use of machines and related maintenance in different conditions. The highest life cycle emissions contributing to global warming, approximately 95 per cent, come from the consumption and production of fuel used in the machines. The highest emissions from transport are related to the deliveries of machines from the Vieremä factory and relocations between stands.
The objective of our continuous development in the R&D is to reduce the consumption of fuel and oils during the use of machines. Fuel efficiency, i.e. fuel consumption in relation to the amount of harvested wood, is an important cost factor in the timber harvesting, and therefore the development is driven by both economic and environmental factors. Thanks to the product development, renewable fuels and hydraulic oils can also be used in the PONSSE forest machines.
The major environmental factors of the maintenance include oils, tyres and spare parts used in the machine. The authorised Ponsse maintenance network ensures the proper handling of waste when the machine is serviced by the authorised PONSSE maintenance network. In our maintenance services, we empha sise predictive maintenance so that unexpected breakdowns can be prevented and maintenance can be carried out safely without endangering the environment and technicians. Maintenance agreements also allow to extend the service intervals for ma chines, which means less maintenance products and less waste.
Currently, 0 per cent (CAPEX, OPEX and turnover) of our operations are Taxonomy-eligible and respectively 100 per cent not Taxonomy-aligned (CAPEX, OPEX and turnover). Our prod ucts do not therefore meet the criteria of the EU classification system for sustainable finance for the products mitigating climate change or contributing to climate change adaptation.
PONSSE forest machines are based on cut-to-length (CTL) logging method. The machines have been developed not only to utilise very valuable wood raw material but also to leave as few tracks as possible at the logging sites. The knowledge and methods related to sustainable use of Nordic forests are one of the solution to mitigating global deforestation while renewable wood raw materials are needed to replace, for example, plastic and concrete. The practices and obligations of regenerating com mercial forests, harvesting technology and forest management methods play an important role when forest resources are needed both for carbon sequestration and as a raw material, giving due consideration to the forest biodiversity.
The advanced calculating capabilities of the measuring devices used in the CTL machines allows to get the best possible value from the forest. This does not mean just economic benefits. Once the raw material yields and value-added processing can be optimised, the wood will yield the maximal long-term carbon sequestration in sawn timber.
CTL machines can be used for different types of harvesting, from first thinning and regeneration felling to final felling. All harvesting methods take into account fast and safe regeneration of the forest, because only the healthy growth of the next gen eration of trees allows for the forest cycles and regeneration of raw materials. In order to enable different harvesting methods, the machines must be balanced and durable to utilise high-reach crane, for example, in thinning.
The CTL method is aimed to reduce the strain caused by the machines on the terrain. The balanced weight distribution in the eight-wheel PONSSE forest machines in combination with the appropriate tracks can minimise the load on the soil. The for warders that drive multiple times on the same track have a mas sive impact on rut formation. In the CTL method, the harvester leaves branches and treetops on the trail to protect the ground on which the forwarder will drive. The large loading space also reduces rut formations, thus requiring fewer return trips.
RESPONSIBILITY
It is important for Ponsse to maintain a good balance between op erational growth, profitability and cash flow from business oper ations. We want to grow responsibly, which is why the long-term development of operations and the building of a strong financial position to secure continuity are emphasised in our decision mak ing. We are constantly investing in research and development, the supply chain and maintenance service network in Finland and in our subsidiaries' operating countries.
As part of responsible financial management, we always en sure that we can fulfil our obligations towards our key stakehold ers. Our main obligations are to remunerate our personnel, pay dividends to our owners, pay suppliers for goods and services, pay social taxes, and keep our customer promises.
We ensure investments and adaptation to business fluctuations through sustainable financing solutions. In our financing solu tions, we have also used loans linked to our sustainable develop ment goals, in which we are evaluated with indicators related to the development of our safety and our suppliers' compliance with the Supplier Code of Conduct.
Ponsse Plc specialises in the sale, production, maintenance and technology of cut-to-length method forest machines, and is driven by a genuine interest in its customers and their business operations. We develop and manufacture sustainable and innova tive harvesting solutions based on customer needs.
Ponsse Group consists of Ponsse Plc, the parent company, and subsidiaries under its direct ownership in Sweden, Norway, France, the UK, Ireland, Russia, China, the USA, Brazil, Uruguay and Chile, as well as Epec Oy in Finland. The foreign subsidiaries account for international maintenance services and sales of PONSSE forest machines together with 44 PONSSE dealers. Technology company Epec Oy develops and manufac tures products and services for machine control.
All PONSSE forest machines are manufactured, from key components to assembly, at our Vieremä factory in Finland where
Financial responsibility and good corporate governance mean the balanced and sustainable development of Ponsse's finances, while addressing ethical business, stakeholders and the environment.
In economical sustainability, we focus on profitability, cash flow from business operations, and growth to ensure our company's financial performance in the long term. This brings stability and continuity to local communities and society all across our global field of operations.
the company's head office is also located. Exports account for 80 per cent of our net sales, and our international maintenance service network consists of 235 service centres.
We want to promote an open tax policy, and we comply with valid tax laws and regulations in all countries where Ponsse oper ates. The company has no separate taxation-based corporate struc tures. We are committed to paying the respective statutory taxes and fees without delay wherever we operate and produce results. We comply with the OECD transfer pricing guidelines and ensure regularly that intra-group pricing is based on market terms.
We report and publish our tax information in accordance with legislation and the transparency goals set in our tax policy. The goal of our tax management is predictable and effective taxation with high morals. We are engaged in close cooperation with the Large Taxpayers' Office in Finland. Paid taxes in total (EUR 1,000)
In 2021, Ponsse paid a total of EUR 56.7 million (2020: EUR 32.4 million) in taxes and duties, of which EUR 25.9 (13.4) million in Finland. 2019 2020 2021 Finland 24 027 13 418 25 888
Throughout its history, Ponsse has been a family-owned company, and values and long-term operations have been emphasised in its management. Ponsse's financial management is also based on reliability, proactivity and continuous development.
• We want to maintain the balance between the operational growth, profitability and cash flow from business operations
• The long-term development of operations is emphasised in our decision making
| 2021 | 2020 | |||||
|---|---|---|---|---|---|---|
| (1,000 EUR) | Finland Other countries | Total** | Finland Other countries | Total** | ||
| Net sales | 616,777 | 439,247 | 749,998 | 503,280 | 383,653 | 636,627 |
| Result before taxes | 61,243 | 30,610 | 73,204 | 2,858 | 5,307 | 8,165 |
| Personnel (persons) | 1,154 | 918 | 2,072 | 1,045 | 800 | 1,845 |
| Corporate income tax | 12,301 | 6,284 | 18,585 | 3,558 | 3,331 | 6,889 |
| Property tax | 428 | 229 | 657 | 218 | 216 | 434 |
| Employer's charges | 13,072 | 6,287 | 19,359 | 9,606 | 5,361 | 14,967 |
| Custom duties | 84 | 17,839 | 17,924 | 33 | 9,604 | 9,637 |
| Other taxes | 3 | 216 | 219 | 3 | 117 | 120 |
| Paid taxes total (EUR 1,000) |
25,888 Net sales, MEUR |
30,856 | 56,744 | 13,418 Operating result, MEUR |
18,630 | 32,048 |
* Unconsolidated
**Consolidated 2017 2018 2019 2020 2021
In 2020 the parent company measured the net investment to subsidiary Ponsse Latin America Ltda at fair value by recognising credit loss from trade receivables and impairment from non-current investments, in total EUR 30.4 million. These postings influenced the effective tax rate of both the parent company and the group in 2020. 44,8 61,7 67,3 57,1 75,0 576,6 612,4 667,4 636,6 750,0
(MEUR)
(%)
RESPONSIBILITY
Ponsse's shares are listed on Nasdaq Helsinki, and we comply with the rules and regulations of the Helsinki stock exchange and the Finnish Financial Supervisory Authority. Consolidated financial statements and interim reports are prepared in accordance with the International Financial Reporting Standards (IFRS). Ponsse's ethical values are described in the company's Code of Conduct, which is available on the Ponsse's website. Our ethical business is also supported by our whistleblowing channel, which allows any suspected misuse related to Ponsse and its operations to be reported.
According to good corporate governance, Ponsse protects the rights of its shareholders, conducts diligent and correctly timed financial reporting, and provides the organisation's managers with guidance. Auditing, internal control, risk management, compliance with legislation and regulations, and management and administrative practices have been arranged appropriately, and the most significant business activities and conflicts of interest are evaluated on the basis of risks.
We are committed to combating corruption in all its forms, including extortion and bribery. We do not use bribes or other unlawful payments, nor do we authorise these payments to gain or maintain business.
We do not accept or facilitate money laundering, and we comply with legislation related to the prevention of money laundering everywhere in the world. We know who our business partners are. We conduct business only with reputable parties involved in legitimate business activities, with funds derived from legitimate sources.
We promote fair and honest competition. We comply with applicable competition law, regardless of the market area, and refrain from entering into or carrying out any illegal practices.
Our assets may not be used for unlawful or improper purposes. We respect and protect personal data, and employees processing it are expected to exercise special caution when processing data.
Diversity in the Board of Directors promotes an open discussion culture and the ability to adopt an open approach to innovative ideas. Diversity is supported by the consideration of the age and gender distribution, educational backgrounds, as well as work and international experience. It benefits the company as a whole that individuals whose skills, backgrounds and views differ from one another are appointed to the Board. This ensures the development of business and responsibility, as well as good corporate governance.
During the 2021 financial period, Ponsse's Board of Directors consisted of members with expertise in finances, legal affairs, technology, internationalisation, strategies, and sales and marketing. One of the seven members was female. Three members were independent, deviating from the Corporate Governance Code's recommendation. The company justifies this deviation in that, throughout its history, Ponsse has been a strongly person- and family-owned company, led successfully under the guidance of its Board of Directors and shareholders. The members of the Board of Directors represent the continuity of the successful management method, and the deviation from the recommendation has not resulted or will not result in any conflicts of interest between the company and its shareholders.
The goal of the company's remuneration policy is to advance the company's long-term financial performance and the building of a sustainable shareholder value by recruiting, committing and motivating senior managers and employees to fulfil Ponsse's strategy. As a rule, remuneration must be competitive, engaging and fair. The annual performance bonus of the President and CEO and the Deputy CEO cannot exceed 50% of their salary in the previous year.
Ponsse complies with good corporate governance in accordance with legislation on listed Finnish companies, Ponsse's Articles of Association, and the 2020 Corporate Governance Code for listed companies, while promoting openness and transparency. The purpose of the corporate governance principles is to ensure ethical business and a high level of professionalism.
Ponsse's operations are also
Our management systems steer the implementation of Ponsse's sustainable development principles and responsible leadership. The aim is to standardise our group's operations and ensure our company's continuous development. Alongside the management systems, the company's mission, vision and values strongly guide the company's operations, in which responsibility has been given a strategically important position.
Ponsse Plc's operations comply with ISO 9001 for quality management systems, ISO 14001 for environmental management systems, and ISO 45001 for occupational health and safety management systems. In 2021, LRQA audited the company's management systems. In addition, the statutory audit of the com pliance of production with requirements was conducted. Internal audits mandated by our operating processes were carried out in the group according to the normal audit programme. Due to the coronavirus pandemic, only select critical audits were conducted in our supplier network.
Ponsse's Finnish subsidiary Epec Oy, a developer and manufacturer of Ponsse's information system solutions, was awarded the ISO 27001 certification for its information security management system in 2021. Epec Oy also has the following certifications: ISO 9001 for quality management systems, ISO 14001 for environmental management systems, and ISO 45001 for occupational health and safety management systems. Ponsse Uruguay S.A, part of Ponsse Group, has been ISO 9001 and ISO 45001 certified since 2020. Ponsse Latin America Ltda, our Brazilian subsidiary, was ISO 9001 certified in 2021.
As part of our responsibility, we have identified trends and associated risks and opportunities in our business environment. In our assessments, the emphasised significance of sustainable development, especially from the perspectives of climate change, biodiversity and resource efficiency, and the opportu nities offered by digitalisation and technological development have been identified as trends that affect our responsibility and operations.
In 2021, we revised our risk management process and developed tools for analysing risks. In our revised risk man agement process, we placed more focus on risks and opportu nities associated with the environment and social and financial responsibilities from the perspectives of strategic, operational, financing and loss risks. In 2022, our aim is to conduct the first climate risk assessment as part of our strategic risk as sessment process.
Global economic uncertainties may have a negative impact on demand for forest machines and the availability of components. Our operations in more than forty countries events out risks asso ciated with economic fluctuations. We aim to keep our operations flexible and sensitive to changes which allows us to take rapid adaptation measures if the market situation so requires.
Growing digitalisation has increased the data security risk, which we address in the processing of business, customer and personal data. Having updated, reliable, available and secure data and information systems is essential considering our operations. Currently, the company is upgrading its ERP system.
The faster recovery of the global economy than expected and rapid growth in demand have resulted in availability issues in certain component groups. Rapid economic fluctuations may also lead to high inflation in component markets. We aim to safeguard the quality of our products and competitive prices by knowing our supplier network and alternative procurement channels, and by engaging in long-term agreements and close R&D coopera tion with our suppliers.
We support sustainable forestry by innovative products and services that protect nature and the environment. We promote har vesting based on the sustainable and effective CTL method and are constantly reducing the environmental impact of our products and services. We aim to reduce risks by engaging in close coop eration with our customers and stakeholders to ensure appropriate technological trends. In addition, we work actively with higher educational institutions, universities and research organisations.
The geopolitical situation will increase uncertainty through finan cial market operations and sanctions. Volatile exchange markets in emerging countries may increase uncertainty. The key goal of financial risk management is to keep liquidity, interest and currency risks under control. To ensure a good liquid position, the company has entered into binding credit facility agreements with different funding providers. The impact of adverse changes in interest rates is minimised by using loans and interest swaps tied to different reference rates. The impact of exchange rate fluctuations is reduced partly through derivative contracts.
| Topic | Measures 2022 | Target | Target | 2021 | Indicator |
|---|---|---|---|---|---|
| WE IMPROVE THE WELLBEING OF OUR PEOPLE | |||||
| Occupational safety |
Preventive safety work Developing safety management, training and observation |
1. Zero accidents | LTIF < 5 | LTIF 17.1 | LTIF |
| Occupational well-being |
Preventive occupational healthcare |
2. Committed employees with good well-being |
Voluntary employee turnover < 5% |
7.3% | Voluntary employee turnover, % |
| Equality and non discrimination |
Implementation of the equality and non-discrimination plan Human rights assessment |
3. Equal and non-discriminating workplace |
Employee engagement, eNPS > 50 |
eNPS 40 | Employee engagement, eNPS (Employee Net Promoter Score) |
| Ethics | Updating the Code of Conduct training |
4. Working community committed to the Code of Conduct |
100% of employees have completed the Code of Conduct training |
80% | Employees with completed training, % |
| Leadership and super visory skills |
One Ponsse leadership and supervisory skill training |
5. Skilled leadership and supervisory work |
Management quality > 3 | 3.25 | Management quality 1‒4 |
| WE INNOVATE SUSTAINABLE SOLUTIONS THAT RESPECT NATURE | |||||
| Innovations | Developing customer-oriented product development processes |
1. Environmentally friendly, safe and ergonomic innovations |
Product development's share of net sales > 3% |
3.17% (EUR 23.8 million) |
Product development's share of net sales, % |
| Product safety |
Product safety integrated into all phases of the product development process |
2. Solutions safe to operate, maintain and produce |
Zero accidents | Number of accidents | |
| Maintenance services |
Developing maintenance agreement offering and sales |
3. Services supporting the environmentally sustainable use of products |
Maintenance agreements > 90% of new machine sales |
41% | Maintenance agreements, % of new machine sales |
| Harvesting | Implementing training and raising awareness of CTL harvesting |
4. Promoting environmentally friendly CTL harvesting |
Two thirds of harvesting |
Share of mechanical harvesting, % |
|
| WE DO NOT BURDEN NATURE THROUGH OUR OPERATIONS | |||||
| Circular economy, material efficiency |
Remanufacturing of spare parts Expanding operations of Ponsse Reman & Parts Recirculation |
1. Reducing material waste and raw material consumption through circular economy solutions |
95 % | 95 % | Recirculation percentage of components damaged at the factory |
| Circular economy, life cycle |
Expansion of performance package offering |
2. Prolonging the life cycle of PONSSE forest machines through maintenance services |
Number of performance packages |
||
| Energy consumption |
Monitoring of subsidiaries' energy consumption and verifying the origin of electricity |
3. Energy used by Ponsse is produced through renewable and sustainable means |
100% renewable energy | Share of renewable energy in carbon footprint calculation results, available H1/2022 |
|
| Greenhouse gas emissions |
Carbon neutrality roadmap and Scope 3 emission category definitions Emission reduction objectives |
4. Ponsse is a carbon-neutral company |
The objective will be set in 2022 |
2020 CO2 emissions -42% (4657 t CO2-eq) 2021 performance will be available H1/2022 |
Reduction of direct (Scope 1) and indirect (Scope 2) emissions compared to 2019, t CO2-eq |
| Waste | Monitoring of subsidiaries' waste utilisation rate |
5. Minimizing produced waste and ensuring utilisation of waste |
Utilisation rate of waste 100% |
Utilisation rate of waste 88% (Finland) |
Utilisation rate of waste, % |
| Environmental work |
Systematic environmental work and risk assessments of functions |
6. We know the environmen tal impact of our operations and work systematically to reduce it |
Carbon neutrality roadmap Group carbon | footprint calculations | |
| WE ARE A RELIABLE PARTNER THAT VALUES COMMUNITY | |||||
| Supply chain | Development of supplier network control and Supplier Code of Conduct process |
1. A transparent supply chain committed to the sustainable business practices |
100% of suppliers have agreed to the responsible business practices |
80% | Supplier Code of Conduct commitment, % |
| Customers | Improving a seamless customer experience |
2. Confidential and developing customer cooperation |
NPS > 60 | NPS 31 | Customer engagement, NPS (products, mainte nance, spare parts) |
| Responsibility work |
Goals and measures of materiality assessment-based responsibility work |
3. Identifying the sustainability expectations of vital stakeholders and related development measures |
Sustainability roadmap | Stakeholder survey |
Every year, the Einari Vidgrén Foundation rewards Finnish and international forest industry professionals. In 2021, the foundation gave the Einari Operator award to 45 merited forest machine operators in recognition of high professional quality and customer-driven activities. The rewarded operators were recognised for their determination regarding the quality of work and close cooperation with forest owners and other stakeholders. Einari Student scholarships were given to 34 forest machine students who had excelled in their studies.
The foundation issues annual Einari Recognition awards for harvesting research and development, people who develop education in the industry, and those who increase the image and recognition of the industry. In 2021, rewarding focused on increasing the awareness of children and young people regarding forests and sustainable forestry. Einari Recognitions were given to Kari Huotari from Työtehoseura, Perttu Liukkonen from Metsä Group, Niina Mäntyniemi from the Rural Professions Association, and the forest trail project of the Vieremä 4H Organisation. Canadian New Brunswick Community College was rewarded for its CTL education and Juho Kemppainen (Jätkä-Juho Oy) as a young rural entrepreneur. The Swedish Network for Women and Nonbinary Persons in the Forest Sector (NYKS) was recognised for promoting equality in the forest and harvesting industry and for improving the industry's image among women.
The goal of the Einari Vidgrén Foundation, established in 2005 by forest machine entrepreneur and industrial counsellor Einari Vidgrén, founder of Ponsse Plc, is to increase appreciation for the work done in the field of mechanised harvesting and highlight the responsible activities carried out in the forest industry in line with the principles of sustainable development. At the same time, the foundation seeks to improve the image of entrepreneurship in the field of mechanised harvesting and the attractiveness of the harvesting sector, especially among young people.
The Einari Award, the Einari Vidgrén Foundation's annually distributed key recognition, is granted for long-term work and professional entrepreneurship in the demanding harvesting industry. In 2021, the Einari Award was received by Kimmo Hokkanen (Metsäkone Hokkanen Oy).
The Einari Vidgrén Foundation's lifetime achievement awards were given to Paavo Rautio (Metsärautio Oy) and Markku Eronen (Metsäkoneurakointi Veljekset Eronen Ky). The lifetime achievement award is a recognition of a significant life's work in advancing Finland's forestry, high-quality harvesting and economic growth.
In 2021, the foundation rewarded forestry professionals with EUR 169,900. The Einari Vidgrén Foundation is chaired by Juha Vidgrén.
Ponsse's consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards, IFRS. The financial statements of the parent company have been prepared in accordance with the Finnish Accounting Standards, FAS, which the company conformed with prior to the 2005 financial period. The notes constitute an essential part of the financial statements. A sum of single figures may differ from the totals presented in the financial statements, as all figures have been rounded.
Board of Directors' report 1 January – 31 December 2021 59 Financial indicators 66 Per-share data 67 Formulae for financial indicators 68
Consolidated statement of comprehensive income 70 Consolidated statement of financial position 71 Consolidated statement of cash flows 72 Consolidated statement of changes in equity 73 Notes to the consolidated financial statements 74
Parent company's profit and loss account 102 Parent companys's balance sheet 103 Parent companys's cash flow statement 104 Notes to the parent company's accounts 105
Share capital and shares 113
Shareholders 116
Board of directors' proposal for the disposal of profit 117
Auditor's report 118
Ponsse Plc's Annual General Meeting for 2022 is scheduled to be held on Thursday 7 April 2022. without the presence of shareholders or their representatives at the company's registered office at Ponssentie 22, FI-74200 Vieremä, Finland.
To be eligible to attend the AGM, shareholders must be registered by 28 March 2022 in the company's share register maintained by Euroclear Finland Oy. Shareholders who hold shares under their own names are automatically registered in the company's share register. A shareholder with nominee registration can be temporarily added to the company's share register. This must be done by 10 a.m. Finnish time on 4 April 2022 for the purpose of attending the AGM. Holders of nominee-registered shares are advised to acquire instructions from their administrator regarding registration in the share register, the issuance of powers of attorney and registration for the AGM in good time.
Shareholders wishing to attend the AGM should notify the company of their intention to do so by 4 p.m. Finnish time on Monday 28 March 2022, either by writing to Ponsse Plc, Share Register, FI-74200 Vieremä, Finland, by calling +358 (0)20 768 800 or by contacting the company online at www.ponsse. com/yhtiokokous. Written notifications must arrive before the above-mentioned deadline. Please submit any powers of attorney accompanying the advance registration.
The company's Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.60 per share be paid for 2021. The Board will also propose that the Annual General Meeting will authorise the Board to decide on paying a dividend of at most EUR 0.25 per share at a later date. The dividend shall be paid to all shareholders who are listed in the share register maintained by Euroclear Finland Oy as a company shareholder on the record date, 11 April 2022. The dividend shall be paid on 20 April 2022.
Ponsse Plc's shares and shareholders are listed in the shareholder register maintained by Euroclear Finland Oy. Shareholders are requested to report any change of address and other matters related to their shareholding to the book-entry securities register in which they have a book-entry securities account.
In addition to the financial statements and the Annual Report for 2021, Ponsse Plc will issue three interim reports. Interim reports for the financial period 2022 will be published as follows:
The interim reports will be published in Finnish and English on the Ponsse website at www.ponsse.com.
This Annual Report is available in Finnish and English. You may order Annual Reports from the following address: Ponsse Plc Ponssentie 22, FI-74200 Vieremä, Finland Tel. +358 (0)20 768 800, Fax +358 (0)20 768 8690 E-mail: [email protected]
The Annual Report will also be available online at www.ponsse.com.
Ponsse maintains a silent period, which begins at the end of each reporting quarter and ends at the publication of the result for the quarter or financial period in question. During the silent period, Ponsse does not comment on the company's financial situation, the market or the outlook. During the period, Ponsse's top management does not meet representatives of capital markets or financial media or comment on matters concerning the company's financial situation or the general outlook.
Should you have any questions regarding Ponsse's business operations, please consult the following people:
Juho Nummela, President and CEO Tel. +358 (0)40 049 5690 E-mail: [email protected]
Petri Härkönen, CFO Tel. +358 (0)50 409 8362 E-mail: [email protected]
The following companies, among others, follow Ponsse as an investment object: Carnegie Investment Bank AB, Finland Branch Inderes Oy Nordea Bank Finland Plc OP Bank Plc
Ponsse Group recorded net sales amounting to EUR 750.0 million (in 2020, EUR 636.6 million) and an operating result of EUR 75.0 (57.1) million for the period. Result before taxes was EUR 73.2 (39.6) million. Earnings per share were EUR 1.97 (EUR 1.15).
Consolidated net sales for the period under review amounted to EUR 750.0 (636.6) million, which is 17.8 per cent more than in the comparison period. International business operations accounted for 80.4 (79.6) per cent of net sales.
Net sales were regionally distributed as follows: Northern Europe 33.3 (39.6) per cent, Central and Southern Europe 18.2 (23.6) per cent, Russia and Asia 22.2 (14.6) per cent, North and South America 25.9 (21.7) per cent and other countries 0.4 (0.5) per cent.
The operating result amounted to EUR 75.0 (57.1) million. The operating result equalled 10.0 (9.0) per cent of net sales for the period under review. Consolidated return on capital employed (ROCE) stood at 20.7 (12.4) per cent.
Staff costs for the period totalled EUR 102.8 (85.7) million. Other operating expenses stood at EUR 63.6 (47.8) million. The net total of financial income and expenses amounted to EUR -1.8 (-17.7) million. Exchange rate gains and losses with a net effect of EUR -1.0 (-15.2) million were recognised under financial items for the period.
The parent company's receivables from subsidiaries stood at EUR 37.3 (42.2) million net. Their reduction and the moderate change in exchange rates have resulted in a significantly reduced impact on financial items for the period under review. The unrealised exchange rate losses for the comparison period mainly consist of the assessment of inter-company accounts payable for Ponsse Latin America Ltda and OOO Ponsse.
Result for the period under review totalled EUR 55.1 (32.3) million. Diluted and undiluted earnings per share (EPS) came to EUR 1.97 (1.15).
At the end of the period under review, the total consolidated statements of financial position amounted to EUR 512.6 (474.0) million. Inventories stood at EUR 167.4 (142.1) million. Trade receivables totalled EUR 43.5 (35.4) million, while cash and cash equivalents stood at EUR 120.9 (123.6) million. Group shareholders' equity stood at EUR 297.3 (255.0) million and parent company shareholders' equity (FAS) at EUR 226.8 (197.3) million. The amount of interest-bearing liabilities was EUR 54.8 (114.5) million. The company has ensured its liquidity by credit facility limits and commercial paper programs, which are not used at the end of the period under review. Group's loans from financial institutions are non-collaretal bank loans without financial covenants. Consolidated net liabilities totalled EUR -66.1 (-9.1) million, and the debt-equity ratio (net gearing) was -22.2 (-3.6) per cent. The equity ratio stood at 60.7 (54.3) per cent at the end of the period under review.
Cash flow from operating activities amounted to EUR 102.4 (74.8) million. Cash flow from investment activities came to EUR -24.1 (-20.0) million.
The company has recovered from the impacts of covid-19 pandemic on the demand for products faster than expected. However, the covid-19 pandemic has caused changes in the company's operating environment. The company's management is actively monitoring the development of the pandemic. The covid-19 pandemic has had a major impact on the availability of components.
Covid-19 pandemic restrictions have been felt by company operations across the world. Decisions have been made to ensure the health and safety of the company's customers and all Ponsse employees. The company's white-collar employees have mainly been teleworking, while manufacturing units and the sales and service business network are operating as normal.
In terms of financing, the company has carried out all measures necessary to ensure business continuity. The company has analysed credit risks related to trade receivables and credit loss provisions and concluded that there are sufficient provisions at the end of the period under review. The company has not had any signs of decreases in goodwill or the value of activated development costs.
Based on the company's impairment calculations, there was no need to reduce the goodwill of any cash-generating unit at the end of the financial period.
The company analysed credit risks related to trade receivables, as well as credit loss provisions, and concluded that there were enough provisions at the end of the financial period.
Order intake for the period totalled EUR 1,019.6 (581.7) million, while period-end order books were valued at EUR 439.8 (174.9) million.
The subsidiaries included in the Ponsse Group are Ponsse AB, Sweden; Ponsse AS, Norway; Ponssé S.A.S., France; Ponsse UK Ltd, the United Kingdom; Ponsse Machines Ireland Ltd, Ireland; Ponsse North America, Inc., the United States; Ponsse Latin America Ltda, Brazil; Ponsse Uruguay S.A., Uruguay; OOO Ponsse, Russia; Ponsse Asia-Pacific Ltd, Hong Kong; Ponsse China Ltd, China and Epec Oy, Finland. The Group includes also the OOO Ponsse wholly-owned property company Ponsse Centre in Russia and Sunit Oy in Finland, which is Ponsse Plc's associate with a holding of 34 per cent.
Group's R&D expenses during the period under review totalled EUR 23.8 (21.3) million, of which EUR 9.2 (9.2) million was capitalised.
Capital expenditure totalled EUR 24.9 (20.3) million. It consisted in addition to capitalised R&D expenses of investments in buildings and ordinary maintenance and replacement investments for machinery and equipment.
Annual General Meeting was held in Vieremä, Finland 7 April 2021. The AGM approved the parent company financial statements and the consolidated financial statements, and members of the Board of Directors and the President and CEO were discharged from liability for the 2020 financial period.
The AGM decided to pay a dividend of EUR 0.60 per share for 2020 (dividends totaling EUR 16,800,000). The dividend payment record date was 9 April 2021, and the dividends were paid on 16 April 2021.
Annual General Meeting authorised the Board of Directors to decide on the acquisition of treasury shares so that a maximum of 250,000 shares can be acquired in one or several instalments. The maximum amount corresponds to approximately 0.89 per cent of the company's total shares and votes. The shares will be acquired in public trading organised by Nasdaq Helsinki ("the Stock Exchange"). Furthermore, they will be acquired and paid according to the rules of the Stock Exchange and Euroclear Finland Ltd. The Board may, pursuant to the authorisation, only decide upon the acquisition of the treasury shares using the company's unrestricted shareholders' equity.
The authorisation is required to support the company's growth strategy and for use in the company's potential corporate acquisitions or other arrangements. In addition, shares can be distributed to the company's current shareholders, used for increasing shareholders' ownership value by invalidating shares after their acquisition or used in personnel incentive systems. The authorisation includes the right of the Board to decide upon all other terms and conditions in the acquisition of treasury shares.
The authorisation is valid until the next Annual General Meeting; however, no later than 30 June 2022. The previous authorisations are cancelled.
The AGM authorised the Board of Directors to decide on the assignment of treasury shares held by the company in one or more tranches for payment or without payment so that a maximum of 250,000 shares will be issued on the basis of the authorisation. The maximum amount corresponds to approximately 0.89 per cent of the company's total shares and votes. The authorisation includes the right of the Board to decide upon all other terms and conditions of the share issue. Thus, the authorisation includes the right to organise a directed issue in deviation of the shareholders' subscription rights under the provisions prescribed by law.
The authorisation is used in supporting the company's growth strategy in the company's potential corporate acquisitions or
other arrangements. In addition, the shares can be issued to the company's current shareholders, sold through public trading or used in personnel incentive systems. A directed share issue may only be free of charge if there is a particularly weighty economic reason for this considering the company, taking into account the interests of the company and all of its shareholders.
The authorisation is valid until the next Annual General Meeting; however, no later than 30 June 2022. The previous authorisations are cancelled.
Annual General Meeting authorised the Board of Directors to decide on a directed share issue and to issue special rights entitling to shares as referred to in Section 10(1) of the Finnish Limited Liability Companies Act, in one or more tranches, for payment or without a payment.
Based on the authorisation, a maximum of 200,000 shares can be issued, which is approximately 0.7 per cent of the current total number of shares in the company. Shares can be issued as part of the company's share-based incentive plans. The Board of Directors will decide on all the terms and conditions for the granting of special rights entitling to shares in the share issue. Based on the authorisation, a derogation from the pre-emptive subscription right of shareholders (directed issue) may be granted for the special rights entitling to shares. A directed issue may only be free of charge if there is a particularly weighty economic reason for this considering the company, taking into account the interests of the company and all of its shareholders.
The authorisation is valid until the next Annual General Meeting, however no later than 30 June 2022.
Jarmo Vidgrén acted as Chairman of the Board and Mammu Kaario as Vice Chairman of the Board. Members of the Board were Matti Kylävainio, Juha Vanhainen, Janne Vidgrén, Juha Vidgrén and Jukka Vidgrén.
The Board of Directors did not establish any committees or commissions from among its members.
The Board of Directors convened eleven times during the period under review. The attendance rate was 97.4 percent.
During the period under review, KPMG Oy Ab acted as the company auditor with Ari Eskelinen, Authorised Public Accountant, as the principal auditor.
The following persons were members of the Management Team: Juho Nummela, President and CEO, acting as the chairman; Petri Härkönen, Deputy CEO, CFO; Juha Inberg, Technology and R&D Director; Marko Mattila, Sales and Marketing Director; Tapio Mertanen, Service Director; Paula Oksman, HR Director;
Miika Soininen, Director of IT and Digital Services and Tommi Väänänen, Director of Delivery Chain Process. The company management has regular management liability insurance.
The area director organisation of sales is led by Marko Mattila, the Group's Sales and Marketing Director, and Tapio Mertanen, Service Director. Area directors report to Jussi Hentunen, Ponsse Retail Network Manager. Managing Directors of subsidiaries and Jussi Hentunen report to Marko Mattila, Ponsse Plc's Sales and Marketing Director.
The geographical distribution and the responsible persons are presented below:
Northern Europe: Jani Liukkonen (Finland), Carl-Henrik Hammar (Sweden, Denmark and Norway) and Tarmo Saks (the Baltic countries),
Central and Southern Europe: Tuomo Moilanen (Germany and Austria), Clément Puybaret (France), Janne Tarvainen (Spain and Portugal), Gary Glendinning (Hungary, Romania, Slovenia, Croatia and Serbia until 28 February 2021; United Kingdom and Ireland), Antti Räsänen (Hungary, Italy, Romania, Slovenia, Croatia, Serbia and Bulgaria starting 1 March 2021) and Tarmo Saks (Poland, Czech Republic and Slovakia),
Russia and Asia: Jaakko Laurila (Russia and Belarus), Janne Tarvainen (Australia and South Africa) and Risto Kääriäinen (China and Japan),
North and South America: Pekka Ruuskanen (the United States), Eero Lukkarinen (Canada), Fernando Campos (Brazil) and Martin Toledo (Uruguay, Chile and Argentina).
The Group had an average staff of 1,954 (1,782) during the period and employed 2,072 (1,845) people at period-end. Average number or employees
Epec Oy also has the following certifications: ISO 9001 for quality management systems, ISO 14001 for environmental management systems, and ISO 45001 for occupational health and safety management systems.
Our management systems steer the implementation of Ponsse's sustainable development principles and responsible leadership. At Ponsse, sustainable development means taking the economic, social and ecological points of view and the principles related to them equally into account in the company's operations.
According to the point of view of ecological sustainability we want to avoid and minimise the negative impacts of our products, services, operations and decisions on biodiversity, the ecosystem and sufficiency of natural resources.
We evaluate the lifetime environmental impacts of our products according to the life cycle assessment specified in ISO 14040. Our investments in minimising the fuel consumption and emissions of our products, as well as the damage they can cause to trees and the soil, and the continuous development of our service processes also influence the sustainability of our customers' operations.
To maintain social sustainability, we ensure people's occupational health and safety, exercise equal and fair treatment, and support employment and the development of a skilled workforce.
In economical sustainability, we focus on profitability, cash flow from business operations, and growth to ensure our company's financial performance in the long term. This brings stability and continuity to local communities and society all across our global field of operations.
In its decision-making and administration, the company observes the Finnish Limited Liability Companies Act, other regulations governing publicly listed companies and the company's Articles of Association. The company's Board of Directors has adopted the Code of Governance that complies with the Finnish Corporate Governance Code approved by the Board of the Securities Market Association. The purpose of the code is to ensure that the company is professionally managed and that its business principles and practices are of a high ethical and professional standard.
The Code of Governance is available on Ponsse's website in the Investors section.
The non-financial information reporting is available at the annual report, in section Corporate social responsibility and also on Ponsse's website in the Investors section.
Risk management is based on the company's values, as well as strategic and financial objectives. Risk management aims to support the achievement of the objectives specified in the company's strategy, as well as to ensure the financial development of the company and the continuity of its business.
Furthermore, risk management aims to identify, assess and monitor business-related risks which may influence the achievement of the company's strategic and financial goals or the continuity of its business. Decisions on the necessary measures to anticipate risks and react to observed risks are made on the basis of this information.
Risk management is a part of regular daily business, and it is also included in the management system. Risk management is controlled by the risk management policy approved by the Board.
A risk is any event that may prevent the company from reaching its objectives or that threatens the continuity of business. On the other hand, a risk may also be a positive event, in which case the risk is treated as an opportunity. Each risk is assessed on the basis of its impact and probability. Methods of risk management include avoiding, mitigating and transferring risks. Risks can also be managed by controlling and minimising their impact.
The insecurity in the world economy may result in a decline in the demand for forest machines and the availability of components. The unexpectedly swift recovery of the world economy and rapid growth in demand have resulted in availability problems in certain component groups. The quick economic fluctuation may affect availability, but also cause rapid inflation in the component market. The uncertainty may also be increased by the volatility of developing countries' foreign exchange markets. The geopolitical situation, in particular, will increase the uncertainty through financial market operations and sanctions. Changes taking place in the fiscal and customs legislation in countries to which Ponsse exports may hamper the company's export trade or its profitability
The geopolitical risk materialized in Russia at the end of February 2022, which has caused challenges in the financial markets and imposed sanctions affecting the business. The effects on the Group's operations to date have been described in more detail in the events after the period.
The effects of the covid-19 pandemic are described in section "IMPACT OF THE COVID-19 PANDEMIC" of this release.
The parent company monitors the changes in the Group's internal and external trade receivables and the associated risk of impairment.
The key objective of the company's financial risk management policy is to manage liquidity, interest and currency risks. The company ensures its liquidity through credit limit facilities agreed with a number of financial institutions. The effect of adverse changes in interest rates is minimised by utilising credit linked to different reference rates and by concluding interest rate swaps. The effects of currency rate fluctuations are partly mitigated through derivative contracts.
Estimates and assumptions regarding the future have to be made during the preparation of the financial statements, and the outcome may differ from the estimates and assumptions. Group management utilises their best judgement when making decisions regarding accounting policies and their adoption. Estimates made when compiling the financial statements are based on the management's best views on the closing date of the reporting period. The estimates are based on previous experience and assumptions about the future that are deemed the most likely on the balance sheet date.
On the date of the financial statements, the Group recognises a credit loss on receivables for which no payment will probably be received according to its best judgement. The general model specified in IFRS 9 is applied when recognising provision for expected credit losses.
On the date of the financial statements, the Group recognises impairment losses according to its best judgement. The assessment takes into account the age structure of the inventory and the likely selling price.
The guarantee provision is based on realised guarantee expenses and on failure history recorded in the previous years. In addition, company may prepare provision for possible individual warranty obligations, if needed.
On the date of the financial statements, the Group assesses whether the new product is technically feasible, whether it can be commercially utilised and whether future economic benefits will be received from the product, which makes it possible to capitalise development expenditure arising from the design of new or advanced products on the balance sheet as intangible assets.
Ponsse Plc is committed to observing the following standards: ISO 9001 for quality management systems, ISO 14001 for environmental management systems, and ISO 45001 for occupational health and safety management systems. The purpose of management systems is to standardise our group's operations and ensure our company's continuous development.
The company's registered share capital consists of 28,000,000 shares. The trading volume of Ponsse Plc shares for 1 January – 31 December 2021 totalled 1,351,899, accounting for 4.8 per cent of the total number of shares. Share turnover amounted to EUR 54.4 million, with the period's lowest and highest share prices amounting to EUR 29.15 and EUR 48.8, respectively. Market capitalisation, MEUR
At the end of the period, shares closed at EUR 42.20, and market capitalisation totalled EUR 1,181.6 million. 2017 2018 2019 2020 2021
At the end of the period under review, the company held 227 treasury shares. 739 693 868 818 1 182
Our management systems were audited by LRQA in 2021, and we also carried out a statutory compliance audit of our production. Internal audits mandated by our operating processes were carried out in the group according to the normal audit programme. Due to the covid-19 pandemic, only select critical audits were performed in our supplier network.
Ponsse Uruguay S.A, part of Ponsse Group, has been ISO 9001 and ISO 45001 certified since 2020. Ponsse Latin America Ltda, our Brazilian subsidiary, was ISO 9001 certified in 2021. Ponsse's Finnish subsidiary Epec Oy was awarded ISO 27001 certification for its information security management system in 2021. Epec develops and produces Ponsse data system solutions.
MARKET CAPITALISATION
In April 2021, the IFRS Interpretations Committee published its final agenda decision on the accounting of configuration or customisation costs in a cloud computing arrangement (IAS 38 Intangible Assets). In this agenda decision, the Interpretations Committee determined when an intangible asset in relation to the configuration or customisation of application software can be recognized. IFRIC agenda decisions have no date when they enter into force, and they are expected to be applied as soon as possible.
Because the Group uses cloud computing arrangements, it has analysed the impact on the accounting principles applied to the deployment costs of cloud services. Based on this analysis, it was concluded that the IFRIC agenda decision has an impact on the earlier accounting treatment related to costs in cloud computing ar rangements. As a result of the analysis, Group has expensed cloud computing related costs which clearly do not give rise to an intan gible asset. This recognition has an EUR 0.2 million impact on the fourth quarter result. The analysis will be continued during 2022 for items under consideration recorded in advance payments (EUR 0.4 million) in order to confirm the final accounting treatment.
Ponsse Group will be independently responsible for its sales, spare parts and maintenance services in the Czech Republic. On 4 February 2022, Ponsse signed a deed of sale, in which it agrees to purchase all shares in KŘENEK FOREST SERVICE s.r.o, its PONSSE forest machine and service dealer in the Czech Republic. The aim is that PONSSE services in the Czech Republic will transfer to Ponsse Group by 1 April 2022. The company will operate as a subsidiary wholly owned by Ponsse.
Ponsse Plc has decided on 2 March 2022 to discontinue temporarily all export operations to Russia and Belarus for both PONSSE forest machines and their spare parts. Also the Ponsse Group's Russian subsidiary OOO Ponsse is discontinues tempo rarily its local spare parts and service operations. Sales in Russia and Belarus account for about 20 percent of the company's net sales calculated from the 2021 financial statements.
At the same time, Ponsse Plc withdrew its profit guidance for the current year. The new profit quidance is linked to the uncer tainties caused by Russia's invasion of Ukraine and EU sanctions. The company announced that it will not provide new guidance for the current year. In accordance with the previous profit quidance, Group´s euro-denominated operating result in 2022 is estimated to be on a par with 2021.
In this challenging situation, Ponsse also strives to take care of the OOO Ponsse's personnel.
Ponsse Plc's Board of Directors has decided to amend its dividend proposal included in the financial statement release published on 22 February 2022 for the Annual General Meeting to be held on 7 April 2022. This amendment is related to Russia's attack on Ukraine and the impacts of this on the company's oper ations and finances.
The Board's new dividend proposal:
"The company's Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.60 per share be paid for 2021. The Board will also propose that the Annual General Meeting will authorise the Board to decide on paying a dividend of at most EUR 0.25 per share at a later date."
The previous dividend proposal published on 22 February 2022 was as follows:
"The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.85 per share be paid for 2021."
The Group has decided to withdraw its profit guidance for the current year. A stock exchange release was released on the matter on 2 March 2022.
Sustainable solutions to address the availability of parts and components, as well as increasing costs, are being sought in cooperation with the supplier network. High rate of infections caused by the covid-19 pandemic can cause significant challeng es to supplier network and Ponsse factory operations.
The company will continue its enhanced cost control and careful investment execution.
No such material changes have taken place in the company's finan cial standing after the end of the financial year that would affect the proposal for dividend distribution. When making its proposal regarding dividends, the Board of Directors has taken into account the impact of distribution of dividends on the Group's solvency as prescribed in Chapter 13, section 2 of the Companies Act.
The parent company's distributable funds total EUR 185,322,440.64, of which the net profit for the period amounted to EUR 46,292,198.39.
The company's Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.60 per share be paid for 2021. The Board will also propose that the Annual General Meeting will authorise the Board to decide on paying a dividend of at most EUR 0.25 per share at a later date. The dividend distri bution totals to at most EUR 23,800,000.00.
If the maximum dividend is distributed, EUR 161,522,440.60 will remain in the parent company's non-restricted equity.
Vieremä, 15 March 2022
Ponsse Plc Board of Directors
| IFRS 2021 | IFRS 2020 | IFRS 2019 | |
|---|---|---|---|
| Extent of operations | |||
| Net sales, (1,000 EUR) | 749,998 | 636,627 | 667,402 |
| Change, % | 17.8 | -4.6 | 9 |
| R&D expenditure, total (1,000 EUR) | 23,786 | 21,298 | 19,282 |
| of which capitalised (1,000 EUR) | 9,196 | 9,214 | 7,656 |
| as % of net sales | 3.2 | 3.3 | 2.9 |
| Gross capital expenditure (1,000 EUR) | 24,854 | 20,268 | 28,567 |
| as % of net sales | 3.3 | 3.2 | 4.3 |
| Average number of employees | 1,954 | 1,782 | 1,761 |
| Net sales/employee (1,000 EUR) | 384 | 357 | 379 |
| Order stock, EUR million | 439.8 | 174.9 | 256.8 |
| Profitability | |||
| Operating result (1,000 EUR) | 75,021 | 57,146 | 67,301 |
| as % of net sales | 10.0 | 9.0 | 10.1 |
| Result before taxes, (1,000 EUR) | 73,204 | 39,561 | 66,574 |
| as % of net sales | 9.8 | 6.2 | 10 |
| Result for the period (1,000 EUR) | 55,073 | 32,284 | 52,010 |
| as % of net sales | 7.3 | 5.1 | 7.8 |
| Return on equity, % (ROE) | 19.9 | 13.3 | 24.1 |
| Return on capital employed, % (ROCE) | 20.7 | 12.4 | 23.5 |
| Financing and financial position | |||
| Current ratio | 2.2 | 1.9 | 1.9 |
| Equity ratio, % | 60.7 | 54.3 | 54.8 |
| Net gearing, % | -22.2 | -3.6 | 14.2 |
| Interest-bearing liabilities (1,000 EUR) | 54,796 | 114,525 | 81,682 |
| Non-interest-bearing liabilities (1,000 EUR) | 160,559 | 104,401 | 113,000 |
| IFRS 2021 | IFRS 2020 | IFRS 2019 | |
|---|---|---|---|
| Earnings per share (EPS), EUR | 1.97 | 1.15 | 1.86 |
| Equity per share, EUR | 10.62 | 9.11 | 8.29 |
| Nominal dividend per share, EUR | 0.851 | 0.60 | 0.30 |
| Dividend per share adjusted for share issues EUR | 0.851 | 0.60 | 0.30 |
| Dividend per earnings, % | 43.21 | 52.0 | 16.2 |
| Effective dividend yield, % | 2.01 | 2.1 | 1.0 |
| Price/earnings ratio (P/E) | 21.5 | 25.3 | 16.7 |
| Share performance | |||
| Lowest trading price | 29.15 | 19.36 | 24.80 |
| Highest trading price | 48.80 | 33.00 | 31.95 |
| Closing price | 42.20 | 29.20 | 31.00 |
| Average price | 40.31 | 25.23 | 28.48 |
| Market capitalisation, EUR million | 1,181.6 | 817.6 | 868.0 |
| Dividends paid, EUR million | 23.81 | 16.8 | 8.4 |
| Shares traded | 1,351,899 | 2,920,250 | 1,774,066 |
| Shares traded, % | 4.8 | 10.4 | 6.3 |
| Weighted average number of shares during | |||
| the period, adjusted for share issues | 28,000,000 | 28,000,000 | 28,000,000 |
| Number of shares on the closing date, | |||
| adjusted for share issues | 28,000,000 | 28,000,000 | 28,000,000 |
The Group has applied ESMA's (the European Securities and Markets Authority) new Guidelines on Alternative Performance Measures, which entered into effect on 3 July 2016.
In addition to the consolidated financial statements produced in compliance with IFRS, Ponsse Plc is presenting alternative performance measures to describe the financial development of its business operations and to provide a comparable overall view of the company's profitability, solvency and liquidity, as well as to provide additional information for analysing its result and capital structure.
The alternative performance measures should not be reviewed separately or in lieu of the figures presented in the audited IFRS-compliant financial statements.
The alternative performance measures have not been audited.
1The company's Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.60 per share be paid for 2021. The Board will also propose that the Annual General Meeting will authorise the Board to decide on paying a dividend of at most EUR 0.25 per share at a later date.
| Net result for the period | x 100 | ||||
|---|---|---|---|---|---|
| Return on equity,% (ROE) = Shareholders' equity + minority interest (average during the year) |
|||||
| Return on capital employed, % | Result before taxes + financial expenses | ||||
| (ROCE) = | Shareholders' equity + interest−bearing financial liabilities (average during the year) | x 100 | |||
| Shareholders' equity + minority interest | |||||
| Equity ratio, % = | Balance sheet total − advance payments received | x 100 | |||
| Interest-bearing financial liabilities − cash and cash equivalents | |||||
| Net gearing, % = | Shareholders' equity | x 100 | |||
| Average number of personnel during the financial year = |
Average of the number of personnel at the end of each month. The calculation has been adjusted for part-time employees. |
||||
| Earnings per share (EPS) = | Net result for the period − minority interest | ||||
| Average number of shares during the accounting period, adjusted for share issues | |||||
| Shareholders' equity | |||||
| Equity per share = | Number of shares at closing of the accounts, adjusted for share issues | ||||
| Dividend per share, adjusted | Dividend per share | ||||
| for share issues = | Adjustment factors for share issues afer financial period | ||||
| Dividend per share | |||||
| Dividend per earnings, % = | Earnings per share | x 100 | |||
| Dividend per share, adjusted for share issues | |||||
| Effective dividend yield, % = | Last trading price for the period, adjusted for share issues | x 100 | |||
| Price/earnings ratio (P/E) = | Last trading price for the period, adjusted for share issues | ||||
| Earnings per share | |||||
| Market capitalisation = | Number of shares at end of the financial year multiplied by the closing price on the last trading day of the financial year adjusted for share issues. |
||||
| Shares traded, % = | Shares traded during the financial period | x 100 | |||
| Average number of shares during the period |
(%)
(MEUR)
(MEUR)
(MEUR)
(%)
| (1,000 EUR) | Note1 | 2021 | 2020 |
|---|---|---|---|
| Net sales | 2 | 749,998 | 636,627 |
| Other operating income | 2.3 | 3,573 | 3,521 |
| Change in inventories of finished goods and work in progress | 12,502 | -6,424 | |
| Raw materials and services | -499,351 | -418,400 | |
| Expenditure on employment-related benefits | 3.1, 3.2 | -102,835 | -85,726 |
| Depreciation and amortisation | 4.3 | -25,251 | -24,631 |
| Other operating expenses | 2.4 | -63,615 | -47,821 |
| Operating result | 75,021 | 57,146 | |
| Financial income and expenses | 5.2 | -1,836 | -17,671 |
| Share of results of associated companies | 19 | 86 | |
| Result before taxes | 73,204 | 39,561 | |
| Income taxes | 6.1 | -18,131 | -7,277 |
| Net result for the period | 55,073 | 32,284 | |
| Other items included in total comprehensive result: | |||
| Translation differences related to foreign units | 3,916 | -968 | |
| Total comprehensive income for the financial period | 58,989 | 31,316 | |
| Earnings per share calculated from the result belonging to parent company shareholders: | |||
| undiluted earnings per share (EUR), result for the period | 2.5 | 1.97 | 1.15 |
| earnings per share (EUR) adjusted for dilution, result for the period | 2.5 | 1.97 | 1.15 |
| (1,000 EUR) | Note1 | 2021 | 2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Tangible assets | 4.1 | 112,127 | 112,183 |
| Goodwill | 4.2 | 3,801 | 3,808 |
| Intangible assets | 4.2 | 42,087 | 36,709 |
| Other financial assets | 5.3, 5.7 | 373 | 371 |
| Investments in associated companies | 7.2 | 785 | 832 |
| Receivables | 4.6 | 173 | 839 |
| Deferred tax assets | 6.2 | 3,360 | 3,076 |
| Total non-current assets | 162,706 | 157,818 | |
| Current assets | |||
| Inventories | 4.5 | 167,414 | 142,137 |
| Trade receivables and other receivables | 4.6, 5.7 | 60,664 | 48,549 |
| Income tax receivables | 938 | 1,849 | |
| Cash and cash equivalents | 5.4, 5.7 | 120,900 | 123,611 |
| Total current assets | 349,916 | 316,146 | |
| 512,622 | |||
| 5.1 | |||
| 7,000 | |||
| -2 | |||
| 8,347 | |||
| 3,460 | |||
| 278,462 | |||
| 297,267 | |||
| 6.2 | 967 | ||
| 5.5, 5.7 | 49,851 | ||
| 5.7 | 87 | ||
| TOTAL ASSETS SHAREHOLDERS' EQUITY AND LIABILITIES Shareholders' equity Share capital Treasury shares Translation differences Other reserves Retained earnings Equity owned by parent company shareholders Non-current liabilities Deferred tax liabilities Interest-bearing liabilities Other liabilities Total non-current liabilities |
50,905 | ||
| Current liabilities | |||
| 5.5, 5.7 | 4,945 | ||
| Interest-bearing liabilities Trade creditors and other liabilities |
4.7 | 154,054 | |
| Income tax liabilities | 901 | ||
| 4.8 | 4,550 | ||
| Provisions Total current liabilities |
164,450 | 473,964 7,000 -2 4,431 3,460 240,149 255,038 1,137 50,470 41 51,648 64,055 96,932 1,312 4,979 167,278 |
1The note refers to the Notes to the Accounts on pages 74–101.
1The note refers to the Notes to the Accounts on pages 74–101.
| (1,000 EUR) | Note1 | 2021 | 2020 |
|---|---|---|---|
| Cash flows from operating activities: | |||
| Net result for the period | 55,073 | 32,284 | |
| Adjustments: | |||
| Financial income and expenses | 5.2 | 1,836 | 17,671 |
| Share of the result of associated companies | -19 | -86 | |
| Depreciation and amortisation | 4.3 | 25,251 | 24,631 |
| Income taxes | 6.1 | 18,131 | 7,277 |
| Other adjustments | -1,016 | 1,749 | |
| Cash flow before changes in working capital | 99,256 | 83,526 | |
| Change in working capital: | |||
| Change in trade receivables and other receivables | -12,835 | 9,454 | |
| Change in inventories | -22,371 | 1,965 | |
| Change in trade creditors and other liabilities | 57,525 | -7,570 | |
| Change in provisions for liabilities and charges | -429 | 1,529 | |
| Interest received | 190 | 97 | |
| Interest paid | -1,062 | -1,068 | |
| Other financial items | 279 | -3,100 | |
| Income taxes paid | -18,126 | -10,043 | |
| Net cash flows from operating activities (A) | 102,429 | 74,790 | |
| Cash flows used in investing activities: | |||
| Investments in tangible and intangible assets | -24,856 | -20,270 | |
| Proceeds from sale of tangible and intangible assets | 776 | 254 | |
| Net cash flows used in investing activities (B) | -24,080 | -20,016 | |
| Cash flows from financing activities: | |||
| Withdrawal/repayment of current loans | -61,031 | 28,680 | |
| Withdrawal/repayment of finance lease liabilities | -3,113 | -1,268 | |
| Dividends paid | 5.1 | -16,800 | -8,400 |
| Net cash flows from financing activities(C) | -80,943 | 19,012 | |
| Change in cash and cash equivalents (A+B+C) | -2,594 | 73,786 | |
| Cash and cash equivalents 1 Jan | 123,611 | 48,704 | |
| Impact of changes in exchange rates | -116 | 1,121 | |
| Cash and cash equivalents 31 Dec | 5.4 | 120,900 | 123,611 |
| Note1 | Share capital |
Share premium account and other reserves |
Translation differences |
Treasury shares |
Retained earnings |
Shareholders' equity total |
|
|---|---|---|---|---|---|---|---|
| Shareholders' equity, 1 Jan 2021 | 7,000 | 3,460 | 4,431 | -2 | 240,149 | 255,038 | |
| Translation differences | 0 | 0 | 3,916 | 0 | 0 | 3,916 | |
| Result for the period | 0 | 0 | 0 | 0 | 55,073 | 55,073 | |
| Total comprehensive income for the period |
0 | 0 | 3,916 | 0 | 55,073 | 58,989 | |
| Direct entries to retained earnings | 0 | 0 | 0 | 0 | 7 | 7 | |
| Share Plan | 0 | 0 | 0 | 0 | 33 | 33 | |
| Dividend distribution | 5.1 | 0 | 0 | 0 | 0 | -16,800 | -16,800 |
| Shareholders' equity, 31 Dec 2021 | 7,000 | 3,460 | 8,347 | -2 | 278,462 | 297,267 | |
| Shareholders' equity, 1 Jan 2020 | 7,000 | 3,460 | 5,399 | -2 | 216,264 | 232,121 | |
| Translation differences | 0 | 0 | -968 | 0 | 0 | -968 | |
| Result for the period | 0 | 0 | 0 | 0 | 32,284 | 32,284 | |
| Total comprehensive income for the period |
0 | 0 | -968 | 0 | 32,284 | 31,316 | |
| Dividend distribution | 5.1 | 0 | 0 | 0 | 0 | -8,400 | -8,400 |
| Shareholders' equity, 31 Dec 2020 | 7,000 | 3,460 | 4,431 | -2 | 240,149 | 255,038 |
1The note refers to the Notes to the Accounts on pages 74–101.
1The note refers to the Notes to the Accounts on pages 74–101.
The company has made a retrospective change in comparison period between items Other adjustments, Income taxes paid and Change in trade creditors and other liabilities. The change had no effect on Net cash flows from operating activities (A).
Ponsse Group is a sales, maintenance and technology company committed to creating success for its customers and determined to secure its position as a global leader in the field of environmentally friendly cut-to-length forest machines. The Ponsse Group includes the parent company Ponsse Plc as well as the wholly-owned subsidiaries Ponsse AB in Sweden, Ponsse AS in Norway, Ponssé S.A.S. in France, Ponsse UK Ltd. in Great Britain, Ponsse Machines Ltd. in Ireland, Ponsse North America Inc. in the United States, Ponsse Latin America in Brazil, OOO Ponsse in Russia, Ponsse Asia-Pacific Ltd in Hong Kong, Ponsse China Ltd in China, Ponsse Uruguay S.A. in Uruguay and Epec Oy in Finland. The Group includes also the OOO Ponsse wholly-owned property company Ponsse Centre in Russia and Sunit Oy in Finland, which is Ponsse Plc's associate with a holding of 34 per cent.
The Group's parent company is Ponsse Plc, a Finnish public limited company established in accordance with Finnish legislation. Ponsse Plc's shares are listed on the NASDAQ OMX Nordic List. The parent company is headquartered in Vieremä and its registered address is Ponssentie 22, 74200 Vieremä.
Copies of the consolidated financial statements are available on the Internet at www.ponsse.com and can be requested from the Group's head office at Ponssentie 22, 74200 Vieremä.
Ponsse Plc's Board of Directors approved the disclosure of these financial statements at its meeting on 21 February 2022. According to the Finnish Companies Act, shareholders have the option to approve or reject the financial statements at a General Meeting of Shareholders to be held after the disclosure. The General Meeting of Shareholders may also amend the financial statements.
The consolidated financial statements have been prepared in compliance with the International Financial Reporting Standards (IFRS), observing the IAS and IFRS standards as well as SIC and IFRIC interpretations valid on 31 December 2021. In the Finnish Accounting Act and regulations enacted by virtue of the Act, International Financial Reporting Standards refer to the standards
approved for use in the European Union in accordance with the procedure specified in the EU regulation (EC) No 1606/2002. The notes to the financial statements are also in compliance with Finnish legislation concerning accounting and corporate law. This legislation complements the IFRS regulations.
The information in the consolidated financial statements is presented in thousands of euro and is based on original acquisition costs, with the exception of financial assets and liabilities as well as derivative contracts that are measured at fair value. The financial statements have been presented in accordance with the profit and loss account by type of expense.
The consolidated financial statements have been prepared in compliance with the same accounting principles as in 2020 apart from the following new standards, interpretations and amendments to existing standards valid as of 1 January 2021.
The Group has adopted following standards and standard amendments in the beginning of year 2021.
– Covid-19-Related Rent Concessions beyond 30 June 2021 – Amendment to IFRS 16 Leases (effective from 1 April 2021 for financial years starting, at the latest, on or after 1 January 2021) The amendments allow the lessees not to account for rent concessions as lease modifications if the concessions are a direct consequence of the covid-19 pandemic and only if certain conditions are met.
The amendment had no material impact on the consolidated financial statements.
– Interest Rate Benchmark Reform – Phase 2 – Amendments to IFRS 9 Financial Instruments, IAS 39 Financial Instruments: Recognition and Measurement, IFRS 7 Financial Instruments: Disclosures and IFRS 16 Leases (effective for financial years beginning on or after 1 January 2021)
Amendments address issues affecting financial statements when changes are made to contractual cash flows and hedging relationships as a result of interest rate benchmark reform. Amendments assist companies in providing useful information about the effects of interest rate benchmark reform on financial statements.
The figures indicating the earnings and financial position of Group entities are measured in the currency of each unit's primary operating environment ("functional currency"). The consolidated financial statements are presented in euro, which is the operating and presentation currency of the Group's parent company.
Transactions denominated in a foreign currency have been converted into the functional currency at the exchange rate valid on the transaction date. In practice, the applicable exchange rate is often a near estimate of the rate valid on the transaction date. Monetary items in a foreign currency have been converted into the functional currency at the exchange rates valid on the closing date of the reporting period. Non-monetary items in a foreign currency are measured at the exchange rates valid on the transaction date. Gains and losses originating from business transactions in a foreign currency and the conversion of monetary items are recognised through profit or loss. Exchange rate gains and losses from operations, as well as exchange rate gains and losses on foreign currency loans, are included in financial income and expenses.
The income and expense items in the comprehensive profit and loss accounts of non-Finnish consolidated companies have been converted into euro at the average exchange rate of the accounting period, and their balance sheets have been converted at the exchange rate quoted on the closing date of the accounting period. The different exchange rates applicable to the conversion of profit on the profit and loss account and balance sheet result in a translation difference recognised in shareholders' equity. This change is recognised under other comprehensive profit/loss
items. Translation differences arising from the elimination of the acquisition cost of foreign subsidiaries, as well as translation differences in equity items accumulated after the acquisition, are recognised under other comprehensive profit/loss items. When a subsidiary is divested in full or in part, accumulated translation differences are recognised through profit or loss as part of the sales gain or loss.
The standard IAS 1 Presentation of Financial Statements does not define the concept of operating profit. The Group has defined it as follows: operating profit is the net amount created by adding other operating income to net sales, subtracting purchase costs adjusted by change in inventories of finished and unfinished products and costs of manufacture for own use, and subtracting costs of employee benefits, depreciation and amortisation, any impairment losses and other operating expenses. All profit and loss items other than the above are presented below operating profit. Exchange rate differences are recognised in financial items.
Estimates and assumptions regarding the future have to be made during the preparation of the financial statements, and the outcome may differ from the estimates and assumptions. Furthermore, the application of accounting policies requires consideration.
Group management utilises their best judgement when making decisions regarding accounting policies and their adoption. This refers to those cases in particular where the valid IFRS standards offer several alternative booking, recognition or presentation methods.
| Closing exchange rate 31 Dec 2021 |
Average exchange rate 2021 |
Closing exchange rate 31 Dec 2020 |
Average exchange rate 2020 |
|
|---|---|---|---|---|
| SEK | 10.25030 | 10.14685 | 10.03430 | 10.47885 |
| NOK | 9.98880 | 10.18743 | 10.47030 | 10.71148 |
| GBP | 0.84028 | 0.86153 | 0.89903 | 0.88638 |
| USD | 1.13260 | 1.18506 | 1.22710 | 1.14518 |
| BRL | 6.31010 | 6.37819 | 6.37350 | 5.88470 |
| RUB | 85.30040 | 87.64787 | 91.46710 | 83.12714 |
| CNY | 7.19470 | 7.63882 | 8.02250 | 7.89157 |
Estimates made when compiling the financial statements are based on the management's best views on the closing date of the reporting period. The estimates are based on previous experience and assumptions about the future that are deemed the most likely on the balance sheet date. These are connected to, for example, the expected development of the Group's financial operating environment regarding the sales and the level of expenditure. The Group regularly monitors the realisation of estimates and assumptions, as well as changes in the underlying factors, together with the business unit by utilising several internal and external sources of information. Any changes in the estimates and assumptions are recognised in the financial period during which the estimates and assumptions are adjusted, and in all subsequent financial periods.
The essential assumptions concerning the future and crucial factors of uncertainty associated with the estimates on the closing date of the reporting period that will impose a significant risk of substantial changes in the book values of assets and liabilities during the next financial period are given below. Group management has deemed these the most important sectors in the financial statements because the compilation principles connected with these issues are the most complex from the Group's viewpoint, and their adoption requires using the most major estimates and assumptions when, for example, evaluating asset items. Furthermore, the potential impacts of the assumptions and estimates used in these sectors of the financial statements are deemed the greatest.
IASB has published new or revised standards and interpretations, presented below, that the Group has not yet applied. The Group will adopt these standards and interpretations starting on the effective date of the standard or interpretation or, if the effective date is not the first day of a financial period, starting at the beginning of the next financial period. The amendments do not expect to have any material impact on the consolidated financial statements.
– Onerous Contracts – Costs of Fulfilling a Contract – Amendments to IAS 37 Provisions, Contingent Liabilities and Contingent Assets (effective for financial years beginning on or after 1 January 2022)
When an onerous contract is accounted for based on the costs of fulfilling the contract, the amendments clarify that these costs comprise both the incremental costs and an allocation of other direct costs.
– Annual Improvements to IFRS Standards 2018–2020 (effec-
tive for financial years beginning on or after 1 January 2022) The annual improvements process provides a mechanism for minor and non-urgent amendments to IFRSs to be grouped together and issued in one package annually. The amendments clarify the following standards:
Under the amendments, proceeds from selling items before the related item of PPE is available for use should be recognized in profit or loss, together with the costs of producing those items. The amendment is applied retrospectively. The amendment has no impact on previously reported figures.
– Reference to the Conceptual Framework — Amendments to IFRS 3 Business Combinations (effective for financial years beginning on or after 1 January 2022)
The amendment updates a reference in IFRS 3 and made further amendments to avoid unintended consequences of updating the reference.
The amendments are to promote consistency in application and clarify the requirements on determining if a liability is current or non-current.
– Disclosure of Accounting Policies – Amendments to IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality Judgements (effective for financial years beginning on or after 1 January 2023, early application is permitted)
The amendments clarify the application of materiality to disclosure of accounting policies to help companies provide useful accounting policy disclosures.
– Definition of Accounting Estimates – Amendments to IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors (effective for financial years beginning on or after 1 January 2023, early application is permitted)
The amendments clarify how companies should distinguish changes in accounting policies from changes in accounting estimates, with a primary focus on the definition of and clarifications on accounting estimates.
– Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to IAS 12 Income Taxes (effective for financial years beginning on or after 1 January 2023, early application is permitted)
The amendments narrow the initial recognition exemption (IRE) and clarify that the exemption does not apply to transactions such as leases and decommissioning obligations which give rise to equal and offsetting temporary differences.
As in the most cases the deferred tax assets and liabilities arising from recognition of leases can be offset with each other, the amendment has not material effect on the Group's consolidated statement of financial position. The amendment will, however, change the disclosure information in the consolidated financial statements related to the deferred taxes.
– Sale or Contribution of Assets between an Investor and its Associate or Joint Venture – Amendments to IFRS 10 Consolidated Financial Statements and IAS 28 Investments in Associates and Joint Ventures (available for optional adoption, effective date deferred indefinitely)
The amendments address the conflict between the existing guidance on consolidation and equity accounting and require the full gain to be recognised when the assets transferred meet the definition of a 'business' under IFRS 3 Business Combinations.
Other new or amended standards, improvements or annual improvements applicable from January 1, 2022 or later are not material for the Group's consolidated financial statements.
The operating segments are reported in a way which is consistent with the internal management reporting used by the Group Management Team in operational decision-making.
Revenue can be recognised over time or at a specific point in time, with the transfer of control being the key criterion. Fivestep guideline on recognised revenue:
The most significant part of the Group's net sales comes from machine sales where revenue is recognised at a specific point in time when control transfers to the customer in accordance with agreement terms. With regard to maintenance services, control transfers over time. However, a significant part of the Group's maintenance services comprises short-term services. Revenue from long-term maintenance agreements is recognised over time so that the revenue corresponds with the maintenance services carried out by the Group. Agreements may include discounts and other than cash remuneration, i.e. trade-in machines. Discounts are allocated as items adjusting net sales to the period to which sales gains are allocated, and other than cash remuneration is recognised at fair value.
The Group has four operating segments based on a geographical division of regions. The operating segments are based on reporting used by the Group Management Team in operational decision-making.
The net sales of the reported operating segments are mainly generated by sales of forest machines and maintenance services. Reported segments do not depart from operating segments.
The Group Management Team assesses the performance of the operating segments on the basis of operating result (EBIT).
Income from each segment is allocated in accordance with the location of the customer. Unallocated income contains sales to areas outside segments, such as South Africa or Australia. The income items include items that can be allocated to the segment
on reasonable grounds. Income items allocated to a segment are based on the normal production degree.
The Group's reported segments are:
Pricing between segments is based on fair market price.
| (1,000 EUR) | Northern Europe |
Central and Southern Europe |
Russia and Asia | North and South America |
Total |
|---|---|---|---|---|---|
| Net sales of the segments | 479,306 | 140,391 | 168,408 | 213,970 | 1,002,075 |
| Revenues between segments | -229,725 | -3,918 | -1,655 | -19,787 | -255,085 |
| Unallocated sales | 3,008 | ||||
| Net sales from external customers | 249,580 | 136,473 | 166,753 | 194,184 | 749,998 |
| Operating result of the segment | 3,294 | 17,730 | 28,563 | 26,915 | 76,502 |
| Unallocated items | -1,481 | ||||
| Operating result | 3,294 | 17,730 | 28,563 | 26,915 | 75,021 |
| Depreciation and amortisation | 21,165 | 736 | 1,278 | 2,072 | 25,251 |
| (1,000 EUR) | Northern Europe |
Central and Southern Europe |
Russia and Asia | North and South America |
Total |
|---|---|---|---|---|---|
| Net sales of the segments | 408,068 | 153,703 | 94,051 | 141,078 | 796,900 |
| Revenues between segments | -155,898 | -3,509 | -1,338 | -2,920 | -163,665 |
| Unallocated sales | 3,392 | ||||
| Net sales from external customers | 252,170 | 150,195 | 92,713 | 138,157 | 636,627 |
| Operating result of the segment | 6,190 | 21,019 | 21,452 | 20,557 | 69,219 |
| Unallocated items | -12,073 | ||||
| Operating result | 6,190 | 21,019 | 21,452 | 20,557 | 57,146 |
| Depreciation and amortisation | 21,418 | 704 | 991 | 1,517 | 24,631 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Net sales | ||
| Net sales of the reporting segments | 1,002,075 | 796,900 |
| Income from all other segments | 3,008 | 3,392 |
| Elimination of income between segments | -255,085 | -163,665 |
| Group's net sales, total | 749,998 | 636,627 |
| Group's operating result, total | 75,021 | 57,146 |
|---|---|---|
| Items not allocated to any segment | -1,868 | -12,393 |
| Result of all other segments | 387 | 320 |
| Result of the reporting segments | 76,502 | 69,219 |
| % | 2021 | 2020 |
|---|---|---|
| Export share of net sales | 80.4 | 79.6 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Machine sales | 569,771 | 495,157 |
| Service | 159,596 | 125,895 |
| Information systems | 20,631 | 15,575 |
| Total | 749,998 | 636,627 |
Public subsidies, such as government grants associated with the acquisition of tangible assets, are recognised as deductions in the book values of tangible assets when it is reasonably certain that the subsidies will be received and the Group fulfils the preconditions for receiving such subsidies. The subsidies will be recognised as income during the useful life of the asset items. Any subsidies covering already realised expenses are recognised through profit or loss for the accounting period during which the right to obtain the subsidy arises. Such subsidies are presented in other operating income.
Rental income is recognised in equal instalments over the rental period.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Rental income | 372 | 439 |
| Sales profits on tangible assets | 776 | 254 |
| Public subsidies | 958 | 1,659 |
| Recycling income | 544 | 204 |
| Other | 924 | 966 |
| Total | 3,573 | 3,521 |
Year 2020 public subsidies include periodic covid-19 aids from different states amounting to EUR 1.4 million.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Voluntary employee expenses | 5,114 | 3,769 |
| Travel expenses | 2,601 | 2,045 |
| Operating and maintenance expenses | 9,901 | 7,957 |
| Shipping and handling expenses | 13,749 | 9,792 |
| Rent expenses | 1,694 | 1,460 |
| Marketing and representation expenses | 3,592 | 4,533 |
| Administrative expenses | 15,345 | 11,012 |
| R&D expenditure | 4,302 | 1,858 |
| Other expense items | 7,318 | 5,396 |
| Total | 63,615 | 47,822 |
AUDITOR'S REMUNERATIONS
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| KPMG | ||
| Auditor's remunerations | 205 | 196 |
| Certificates and statements | 7 | 1 |
| Tax advice | 9 | 26 |
| Other remunerations | 58 | 50 |
| 279 | 273 |
Above-mentioned other remunerations than auditor's remunerations paid to KPMG Oy AB amounted to EUR 67 thousand (EUR 76 thousand in 2020).
| Other organisations | ||
|---|---|---|
| Auditor's remunerations | 39 | 40 |
| Certificates and statements | 4 | 2 |
| Tax advice | 15 | 11 |
| Other remunerations | 24 | 38 |
| 82 | 91 | |
| Total | 361 | 364 |
Undiluted earnings per share are calculated by dividing the result for the financial period belonging to the parent company's shareholders by the weighted average of shares outstanding during the financial period.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Result for the financial period belong ing to parent company shareholders |
55,073 | 32,284 |
| Weighted average number of shares during the financial period (1,000 pcs) |
28,000 | 28,000 |
| Undiluted earnings per share (EUR/share) |
1.97 | 1.15 |
In the calculation of earnings per share adjusted for dilution, the weighted average number of shares includes the diluting effect of the conversion of all potential ordinary shares. In year 2021, the Group's share-based incentive scheme did not produce a diluting effect, which means that the earnings per share adjusted for dilution equal the undiluted earnings per share.
The Group's pension schemes are defined contribution plans. Under defined contribution plans, the Group makes fixed payments to a separate entity. Contributions paid to defined contribution pension plans are recognised through profit or loss during the financial period to which the charge applies.
Pension cover for the personnel of the Group's Finnish companies is arranged through statutory pension insurance policies with external pension insurance companies. Foreign Group companies have arranged pensions for their personnel in accordance with local legislation.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Wages and salaries | 82,487 | 69,529 |
| Pension expenditure – defined contribution plans |
11,543 | 8,346 |
| Share plan | 989 | 1,229 |
| Other social security costs | 7,816 | 6,621 |
| Total | 102,835 | 85,726 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Employees | 1,201 | 1,061 |
| Clerical workers | 753 | 721 |
| Total | 1,954 | 1,782 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Salaries and other short-term employment-related benefits |
3,946 | 4,117 |
| Benefits paid upon termination of employment |
0 | 0 |
| Pension liabilities, statutory and voluntary pension security |
1,139 | 1,239 |
| Total | 5,085 | 5,356 |
Management's employment-related benefits include salaries and bonuses of the President and CEO, parent company's Management Team and Managing Directors of subsidiaries.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| President and CEO | ||
| Salaries and other short-term employment-related benefits |
722 | 996 |
| Pension liabilities, statutory and voluntary pension security |
387 | 438 |
| Total | 1,108 | 1,434 |
| Kaario Mammu | 45 | 45 |
|---|---|---|
| Kylävainio Matti | 38 | 38 |
| Vanhainen Juha | 38 | 38 |
| Vidgrén Janne | 38 | 38 |
| Vidgrén Jarmo | 48 | 28 |
| Vidgrén Juha | 38 | 39 |
| Vidgrén Jukka | 38 | 38 |
| Total | 283 | 264 |
The President and CEO is included in the performance-based bonus scheme. The bonus is based on a performance target approved by the Board of Directors. The President and CEO's period of notice is six months if service is terminated by the company, or six months if service is terminated by the President and CEO. The terms and conditions of the President and CEO's employment are defined in writing in a service contract approved by the Board of Directors. No loans have been granted to management.
The Group has valid an incentive scheme, from which the plan was paid or will be paid partly in the company's shares and partly in cash. The effect of the scheme on profit is disclosed in expenditure on employment-related benefits.
During the financial period, ended the incentive scheme launched in 2018 for the Group's key employees.
The prerequisite for participating in the plan was that a key employee acquire the Company's shares up to the number determined by the Board of Directors. Furthermore, receipt of reward was tied to the validity of the key employee's employment or service upon reward payment.
The reward from the plan was paid partly in the company's shares and partly in cash in December 2018. The cash proportion will cover taxes and tax-related costs arising from the reward to the key employee. Shares given as reward was not allowed to transfer during the restriction period ending on 12 December 2021. If a key employee's employment or service ends during the restriction period, the key employee was obliged to return the shares given as reward, fully or partly, to the company, without compensation.
Through the free rights issue 13 December 2018 to the Group's key employees who have acquired shares was transferred as a bonus 36,349 treasury shares acquired by the company. The fair value of share based incentives has been EUR 1,040 thousand at grant date. The expenses of the share-based bonus scheme during the restriction period from 13 December 2018 to 12 December 2021 were totalled EUR 2,999 thousand, which is recognised as other receivables in balance sheet and as an expense for the restriction period on an accrual basis. During the financial period, EUR 989 thousand (EUR 1,229 thousand in 2020) was recognised as an expense of the share-based bonus scheme.
During the financial period, the Board of Directors of Ponsse Plc has approved three new Ponsse Group's share-based incentive plans:
The aim of the new plans is to align the objectives of the shareholders and plan participants for increasing the value of the company in the long-term, to retain the participants at the company and to offer them competitive reward schemes that are based on earning and accumulating the company's shares.
The company announced the new share plans on a stock exchange release 17 February 2021.
The CEO's and key employee performance based matching share plan have not been implemented during the financial period.
During the financial period 2021, the Group implemented the restricted share plan, where the reward is based on participant's valid employment or director contract and the continuity of the employment or service during a restriction period.
The reward will be 3,000 company shares given after the end of a 24 months restriction period. The expenses of the share plan will be recognised as an expense for the restriction period on an accrual basis.
During the financial period, EUR 76 thousand was recognised as an expense of the restricted share plan.
The Group did not have any pension obligations.
Tangible assets are recognised at acquisition cost less accumulated depreciation and impairment losses.
Expenses incurred from the direct acquisition of tangible assets are included in the acquisition. The acquisition cost of a self-manufactured asset item includes material expenses, direct expenses incurred for employee benefits and other direct expenses incurred for the completion of the tangible assets for the intended use.
If tangible assets consist of several parts whose estimated useful lives differ, each part is treated as a separate item. In such a case, all replacement costs are activated and any remaining book value in connection with replacement is derecognised. In any other cases, costs arising at a later date are included in the book value of tangible assets only if it is likely that the future economic benefits related to the item will benefit the Group and the item's acquisition cost can be reliably defined. Other repair and maintenance costs are recognised through profit or loss as they are realised.
Asset items are depreciated by the straight-line method over their estimated useful life. Depreciation is not booked on land areas. Estimated useful lives are the following:
| Buildings | 20 years |
|---|---|
| Machinery and equipment | 5–10 years |
The residual value, useful life and the depreciation method of asset items are reviewed at least upon each closing of the accounts and adjusted, if necessary, to reflect any changes in the expected economic benefit.
Depreciation and amortisation begins when the asset item is ready for use, i.e. when it is in such a location and condition that it can function in the manner intended by management. Depreciation on tangible assets will be discontinued when the item is classified as available for sale in accordance with standard IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.
Sales gains and losses arising from the decommissioning and transfer of tangible assets is recognised through profit or loss and presented under other operating income and expenses. The sales gain is defined as the difference between the selling price and residual acquisition cost.
According the standard IFRS 16 – Leases, the Group recognises non-cancellable leases on the balance sheet. The Group has made use of an easement allowed in the standard according to which short-term leases of assets with minor value do not need to be recognised on the balance sheet. For non-fixed-term leases, the Group only recognises on the balance sheet leases with a term of notice longer than 12 months that do not include a significant sanction. A simplified method has been used for the transition.
Lease contracts in which the risks and benefits characteristic of ownership remain with the lessor are treated as other lease contracts. Leases payable on the basis of other lease contracts are recognised as expenses through profit or loss in equal instalments over the lease period.
Leases where the Group has not substantially transferred the risks and benefits of ownership of the asset to the lessee are included in tangible assets or inventories on the balance sheet. Lease income is recognised through profit or loss in equal instalments over the lease period.
| Land and | Machinery and | Prepayments and unfinished |
|||
|---|---|---|---|---|---|
| (1,000 EUR) | water | Buildings | equipment | acquisitions | Total |
| Acquisition cost 1 Jan 2021 | 3,601 | 107,064 | 108,699 | 3,068 | 222,433 |
| Increase | 26 | 5,829 | 13,042 | 6,999 | 25,896 |
| Decrease | -5 | -97 | -2,217 | -8,328 | -10,648 |
| Exchange rate difference | 119 | 1,019 | 819 | 118 | 2,076 |
| Acquisition cost 31 Dec 2021 | 3,741 | 113,816 | 120,343 | 1,857 | 239,757 |
| Accumulated depreciation and impairment 1 Jan 2021 | 0 | -40,290 | -69,961 | 0 | -110,251 |
| Depreciation and amortisation | 0 | -6,962 | -10,411 | 0 | -17,373 |
| Accumulated depreciation on decrease and transfers | 0 | 0 | 831 | 0 | 831 |
| Exchange rate difference | 0 | -242 | -597 | 0 | -838 |
| Accumulated depreciation and impairment 31 Dec 2021 | 0 | -47,493 | -80,138 | 0 | -127,631 |
| Book value 1 Jan 2021 | 3,601 | 66,774 | 38,738 | 3,068 | 112,181 |
| Book value 31 Dec 2021 | 3,741 | 66,323 | 40,205 | 1,857 | 112,127 |
| (1,000 EUR) | Land and water |
Buildings | Machinery and equipment |
Prepayments and unfinished acquisitions |
Total |
|---|---|---|---|---|---|
| Acquisition cost 1 Jan 2021 | 3,601 | 107,064 | 108,699 | 3,068 | 222,433 |
| Increase | 26 | 5,829 | 13,042 | 6,999 | 25,896 |
| Decrease | -5 | -97 | -2,217 | -8,328 | -10,648 |
| Exchange rate difference | 119 | 1,019 | 819 | 118 | 2,076 |
| Acquisition cost 31 Dec 2021 | 3,741 | 113,816 | 120,343 | 1,857 | 239,757 |
| Accumulated depreciation and impairment 1 Jan 2021 | 0 | -40,290 | -69,961 | 0 | -110,251 |
| Depreciation and amortisation | 0 | -6,962 | -10,411 | 0 | -17,373 |
| Accumulated depreciation on decrease and transfers | 0 | 0 | 831 | 0 | 831 |
| Exchange rate difference | 0 | -242 | -597 | 0 | -838 |
| Accumulated depreciation and impairment 31 Dec 2021 | 0 | -47,493 | -80,138 | 0 | -127,631 |
| Book value 1 Jan 2021 | 3,601 | 66,774 | 38,738 | 3,068 | 112,181 |
| Book value 31 Dec 2021 | 3,741 | 66,323 | 40,205 | 1,857 | 112,127 |
| Book value 1 Jan 2021 | -3.601 |
|---|---|
| Book value 31 Dec 2021 | 3.741 |
| Book value 31 Dec 2020 | 3,601 | 66,774 | 38,738 | 3,068 | 112,181 |
|---|---|---|---|---|---|
| Book value 1 Jan 2020 | 3,672 | 67,088 | 45,290 | 2,457 | 118,507 |
| Accumulated depreciation and impairment 31 Dec 2020 | 0 | -40,290 | -69,961 | 0 | -110,251 |
| Exchange rate difference | 0 | 285 | 1,306 | 0 | 1,592 |
| Accumulated depreciation on decrease and transfers | 0 | 3 | 613 | 0 | 616 |
| Depreciation and amortisation | 0 | -6,577 | -10,274 | 0 | -16,852 |
| Accumulated depreciation and impairment 1 Jan 2020 | 0 | -34,001 | -61,606 | 0 | -95,607 |
| Acquisition cost 31 Dec 2020 | 3,601 | 107,064 | 108,699 | 3,068 | 222,433 |
| Exchange rate difference | -222 | -1,724 | -2,285 | -53 | -4,284 |
| Decrease | 0 | -72 | -4,651 | -4,726 | -9,449 |
| Increase | 151 | 7,770 | 8,739 | 5,390 | 22,051 |
| Acquisition cost 1 Jan 2020 | 3,672 | 101,089 | 106,896 | 2,457 | 214,114 |
| Book value 31 Dec 2020 | 3,601 | 66,774 | 38,738 | 3,068 | 112,181 |
|---|---|---|---|---|---|
| Book value 1 Jan 2020 | 3,672 | 67,088 | 45,290 | 2,457 | 118,507 |
| Accumulated depreciation and impairment 31 Dec 2020 | 0 | -40,290 | -69,961 | 0 | -110,251 |
| Exchange rate difference | 0 | 285 | 1,306 | 0 | 1,592 |
| Accumulated depreciation on decrease and transfers | 0 | 3 | 613 | 0 | 616 |
| Depreciation and amortisation | 0 | -6,577 | -10,274 | 0 | -16,852 |
| Accumulated depreciation and impairment 1 Jan 2020 | 0 | -34,001 | -61,606 | 0 | -95,607 |
| Acquisition cost 31 Dec 2020 | 3,601 | 107,064 | 108,699 | 3,068 | 222,433 |
| Exchange rate difference | -222 | -1,724 | -2,285 | -53 | -4,284 |
| Decrease | 0 | -72 | -4,651 | -4,726 | -9,449 |
| Increase | 151 | 7,770 | 8,739 | 5,390 | 22,051 |
| Acquisition cost 1 Jan 2020 | 3,672 | 101,089 | 106,896 | 2,457 | 214,114 |
| Book value 31 Dec 2020 | 3,601 | 66,774 | 38,738 | 3,068 | 112,181 |
|---|---|---|---|---|---|
| Book value 1 Jan 2020 | 3,672 | 67,088 | 45,290 | 2,457 | 118,507 |
| Accumulated depreciation and impairment 31 Dec 2020 | 0 | -40,290 | -69,961 | 0 | -110,251 |
| Exchange rate difference | 0 | 285 | 1,306 | 0 | 1,592 |
| Accumulated depreciation on decrease and transfers | 0 | 3 | 613 | 0 | 616 |
| Depreciation and amortisation | 0 | -6,577 | -10,274 | 0 | -16,852 |
| Accumulated depreciation and impairment 1 Jan 2020 | 0 | -34,001 | -61,606 | 0 | -95,607 |
| Acquisition cost 31 Dec 2020 | 3,601 | 107,064 | 108,699 | 3,068 | 222,433 |
| Exchange rate difference | -222 | -1,724 | -2,285 | -53 | -4,284 |
| Decrease | 0 | -72 | -4,651 | -4,726 | -9,449 |
| Increase | 151 | 7,770 | 8,739 | 5,390 | 22,051 |
| Acquisition cost 1 Jan 2020 | 3,672 | 101,089 | 106,896 | 2,457 | 214,114 |
| (1,000 EUR) | Buildings | Machinery and equipment |
Total |
|---|---|---|---|
| Book value 1 Jan 2021 | 9,301 | 1,864 | 11,165 |
| Increase | 451 | 3,862 | 4,312 |
| Depreciation and amortisation | -2,068 | -1,190 | -3,258 |
| Exchange rate difference | 13 | 44 | 56 |
| Book value 31 Dec 2021 | 7,696 | 4,579 | 12,275 |
| Book value 1 Jan 2020 | 5,573 | 1,363 | 6,937 |
| Increase | 5,796 | 1,191 | 6,988 |
| Depreciation and amortisation | -2,079 | -621 | -2,700 |
| Exchange rate difference | 10 | -69 | -60 |
| Book value 31 Dec 2020 | 9,301 | 1,864 | 11,165 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Book value 1 Jan | 11,104 | 6,787 |
| Exchange rate difference | 206 | 52 |
| Increase | 4,312 | 6,965 |
| Interest expense | 247 | 201 |
| Lease payments | -3,505 | -2,901 |
| Decrease | 0 | 0 |
| Book value 31 Dec | 12,364 | 11,104 |
| Non-current lease liabilities | 9,018 | 8,360 |
| Current lease liabilities | 3,346 | 2,743 |
| Total | 12,364 | 11,104 |
Maturity of lease liabilities is presented in note 5.5, section Due dates and reconciliation of lease liabilities.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Depreciation charge of right-of-use assets | 3,258 | 2,700 |
| Interest expense | 247 | 201 |
| Expense relating to leases of low--value assets or short-term leases |
1,151 | 1,028 |
| Expense relating to variable lease pay ments not included in lease liabilities |
543 | 433 |
| Total | 5,199 | 4,361 |
The Group made use of an easement allowed in the standard according to which short-term leases of assets with minor value do not need to be recognised on the balance sheet. For non-fixedterm leases, the Group only recognises on the balance sheet leases with a term of notice longer than 12 months that do not include a significant sanction.
The rents are discounted using the internal interest rate of the lease contract. If this rate of interest cannot be easily determined, which is often the case in the Group's lease contracts, the interest rate of the lessee's additional credit is used. This refers to the interest rate which the lessee concerned would have to pay when borrowing for an equivalent period and with equivalent guarantees the money required to acquire an asset with a value equivalent to that of the right-of-use asset in a similar economic environment. The weighted average of the interest rate of the lessee's additional loan applicable to lease contract liabilities on 1 January 2021 was 1.0%.
An intangible asset item is only recognised in the balance sheet at original cost if its acquisition cost can be reliably determined and it is probable that the expected economic benefit from the item will be to the Group's advantage.
Intangible assets with a limited useful life are recognised as expenses through profit or loss by straight-line amortisation over their known or estimated useful life. The Group does not have any intangible assets with an unlimited useful life.
The amortisation periods for intangible assets are the following:
| Capitalised development expenditure | 3–10 years |
|---|---|
| Patents | 5 years |
| Computer software | 5 years |
| Other intangible assets | 5–10 years |
The residual value, useful life and depreciation and amortisation method of asset items are reviewed at least upon each closing of accounts and adjusted, if necessary, to reflect any changes in the expected economic benefit.
Depreciation and amortisation of intangible assets begins when the asset item is ready for use, i.e. when it is in such a location and condition that it can function in the manner intended by management.
The recording of depreciation and amortisation is discontinued when an intangible asset item is classified as held for sale (or included in a group of assignable items classified as held for sale) in accordance with IFRS 5 Non-current Assets Held for Sale and Discontinued Operations.
Research costs are recognised as expenses through profit or loss. Development costs arising from the design of new or more advanced products are capitalised as intangible assets in the balance sheet starting from the time the product is technically feasible, it can be utilised commercially, and future economic benefit is expected from the product. Capitalised development expenditure consists of the costs of materials, labour and testing arising directly from the preparation of an asset for its intended use. Development costs previously recognised as expenses will not be subsequently capitalised.
Amortisation is booked on an item starting from the time it is ready for use. An item that is not yet ready for use is tested annually for impairment. After initial recognition, capitalised development expenditure is measured at original cost less accumulated amortisation and impairment. The useful life of capitalised development expenditure is from three to ten years, during which the capitalised expenditure will be recognised as expenses by straight-line amortisation.
Goodwill arising from business combinations is recognised at the amount by which the consideration paid, share of non-controlling interest holders of the acquiree and previous holding combined exceed the fair value of the acquired net assets.
No amortisation is booked on goodwill but it is tested annually for impairment. For this purpose, goodwill is allocated to cash-generating units. Goodwill is recognised at original cost deducted by impairment.
In April 2021, the IFRS Interpretations Committee published its final agenda decision on the accounting of configuration or customisation costs in a cloud computing arrangement (IAS 38 Intangible Assets). In this agenda decision, the Interpretations Committee determined when an intangible asset in relation to the configuration or customisation of application software can be recognized. IFRIC agenda decisions have no date when they enter into force, and they are expected to be applied as soon as possible.
Because the Group uses cloud computing arrangements, it has analysed the impact on the accounting principles applied to the deployment costs of cloud services. Based on this analysis, it was concluded that the IFRIC agenda decision has an impact on the earlier accounting treatment related to costs in cloud computing arrangements. As a result of the analysis, Group has expensed cloud computing related costs which clearly do not give rise to an intangible asset. This recognition has an EUR 0.2 million impact on the fourth quarter result. The analysis will be continued during 2022 for items under consideration recorded in advance payments (EUR 0.4 million) in order to confirm the final accounting treatment.
The Group carries out annual impairment testing of goodwill and unfinished intangible assets, and evidence of impairment is evaluated as presented above in the accounting policies. Recoverable amounts from cash-generating units are determined as calculations based on value in use. The preparation of these calculations requires the use of estimates.
| (1,000 EUR) | Development expenditure |
Patent costs |
Intangible rights |
Other intangible assets |
Prepayments and unfinished acquisitions |
Total |
|---|---|---|---|---|---|---|
| Acquisition cost 1 Jan 2021 | 40,381 | 2,253 | 3,416 | 14,294 | 16,200 | 76,544 |
| Increase | 15,706 | 650 | 235 | 2,151 | 14,335 | 33,077 |
| Transfers between items | 0 | 1 | 0 | 124 | 0 | 125 |
| Decrease | 0 | 0 | 0 | -394 | -19,749 | -20,143 |
| Acquisition cost 31 Dec 2021 | 56,087 | 2,904 | 3,651 | 16,175 | 10,786 | 89,603 |
| Accumulated depreciation and impairment 1 Jan 2021 | -27,266 | -1,463 | -2,813 | -8,291 | 0 | -39,834 |
| Depreciation and amortisation | -5,388 | -351 | -247 | -1,892 | 0 | -7,879 |
| Accumulated depreciation on decrease and transfers | 0 | 0 | 0 | 199 | 0 | 199 |
| Exchange rate difference | 0 | 0 | 0 | -2 | 0 | -2 |
| Accumulated depreciation and impairment 31 Dec 2021 | -32,655 | -1,814 | -3,060 | -9,987 | 0 | -47,516 |
| Book value 1 Jan 2021 | 13,114 | 790 | 604 | 6,002 | 16,200 | 36,710 |
| Book value 31 Dec 2021 | 23,432 | 1,090 | 592 | 6,188 | 10,786 42,087 | |
| Acquisition cost 1 Jan 2020 | 36,301 | 1,927 | 3,300 | 12,055 | 10,685 | 64,268 |
| Increase | 4,080 | 301 | 116 | 2,239 | 12,962 | 19,698 |
| Transfers between items | 0 | 25 | 0 | 0 | 0 | 25 |
| Decrease | 0 | 0 | 0 | 0 | -7,447 | -7,447 |
| Acquisition cost 31 Dec 2020 | 40,381 | 2,253 | 3,416 | 14,294 | 16,200 | 76,544 |
| Accumulated depreciation and impairment 1 Jan 2020 | -21,532 | -1,134 | -2,546 | -6,843 | 0 | -32,055 |
| Depreciation and amortisation | -5,734 | -329 | -267 | -1,448 | 0 | -7,779 |
| Accumulated depreciation on decrease and transfers | 0 | 0 | 0 | 0 | 0 | 0 |
| Exchange rate difference | 0 | 0 | 0 | 0 | 0 | 0 |
| Accumulated depreciation and impairment 31 Dec 2020 | -27,266 | -1,463 | -2,813 | -8,291 | 0 | -39,834 |
| Book value 1 Jan 2020 | 14,769 | 793 | 755 | 5,211 | 10,685 | 32,213 |
| Book value 31 Dec 2020 | 13,114 | 790 | 604 | 6,002 | 16,199 36,710 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Goodwill is allocated to the following cash-generating units: |
||
| Northern Europe segment: Epec Oy | 3,440 | 3,440 |
| Northern Europe segment: Business in Norrbotten region, Sweden |
361 | 369 |
| Total | 3,801 | 3,809 |
For impairment testing, the recoverable amounts have been determined on the basis of value in use. The cash flow forecast is based on three-year forecasts approved by management. The applicable discount rate before tax is 12.5%. The discount rate before tax is determined on the basis of weighted average cost of capital (WACC). Cash flows following the forecast period approved by management have been estimated by extrapolating with a steady growth factor of 1% in the units. The growth factor applied does not exceed long-term realised growth of the sectors in question.
The essential variables used for the calculation of value in use are the following:
It is the management's opinion that no reasonably estimated change in any essential variable would result in the recoverable amounts falling below their book value.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| R&D expenditure recorded as a cost item in the consolidated statement of comprehensive income |
19,960 | 17,831 |
On each closing date of a reporting period, the Group estimates whether there is evidence that the value of an asset may have been impaired. If there is such evidence, the amount recoverable from the asset will be estimated. Furthermore, the recoverable amount will be estimated annually for the following assets regardless of whether there is evidence of impairment: goodwill and unfinished intangible assets. The need for impairment is reviewed at the level of cash-generating units, which refers to the lowest level of unit that is mainly independent of other units and whose cash flows can be separated from other cash flows.
The recoverable amount equals the fair value of an asset deducted by costs arising from its sale, or value in use if this is higher. Value in use refers to estimated future net cash flows available from the asset or the cash-generating unit discounted to present value. The applicable discount rate is a rate determined before tax that reflects the market opinion on the time value of money and the specific risks associated with the asset.
An impairment loss is recognised when the book value of an asset exceeds its recoverable amount. Impairment losses are immediately recognised through profit or loss. If an impairment loss is attributable to a cash-generating unit, it is first allocated to reduce the goodwill attributable to the cash-generating unit and then to reduce other asset items within the unit on a pro rata basis. In connection with the recognition of an impairment loss, the useful life of the asset subject to depreciation or amortisation is reassessed. Impairment losses on assets other than goodwill will be reversed if there is a change in the estimates used for determining the recoverable amount from the asset. However, any impairment loss reversal may not exceed the amount that would be the book value of the asset item if the impairment loss were not recognised. Impairment losses recognised on goodwill are not to be reversed under any circumstances.
On the date of the reporting period, the Group assesses whether the new product is technically feasible, whether it can be commercially utilised and whether future economic benefits will be received from the product, which makes it possible to capitalise development expenditure arising from the design of new or advanced products on the balance sheet as intangible assets.
Intangible rights include computer software licence fees, among others. Other intangible assets include fees for computer software tailored for the Group, among others. Prepayments and unfinished acquisitions include R&D expenditure, patent application expenses and computer software acquisition costs.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Intangible assets | ||
| Capitalised development expenditure | 5,388 | 5,734 |
| Patents | 351 | 329 |
| Intangible rights | 247 | 267 |
| Other intangible assets | 1,892 | 1,448 |
| Total | 7,878 | 7,779 |
| Tangible assets | ||
| Buildings | 6,962 | 6,577 |
| Machinery and equipment | 10,411 | 10,274 |
| Total | 17,373 | 16,852 |
| Total | 25,251 | 24,631 |
Inventories are valued at acquisition cost or a lower net realisable value. The Average Cost method is used as a basis for calculating the value of materials and supplies in stock. The acquisition cost of finished and unfinished products comprises raw materials, direct expenses due to work performed, other direct expenses, and the appropriate proportion of the variable and fixed overheads of manufacturing at the normal utilised capacity. The inventory of second-hand machines is valued at acquisition cost or a lower probable net realisable value. Net realisable value refers to an estimated sales price available through normal business operations less the estimated costs of finishing the product and the costs of sale.
On the date of the financial statements, the Group recognises impairment losses according to its best judgement, particularly with regard to trade-in machines. The assessment takes into account the age structure of the trade-in machine stock and the likely selling prices.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Raw materials and consumables | 102,408 | 83,799 |
| Work in progress | 20,984 | 7,919 |
| Finished products/goods | 15,212 | 16,247 |
| Other inventories | 28,810 | 34,171 |
| Total | 167,414 | 142,137 |
EUR 3.2 million was recognised as an expense item, which was used to reduce the book value of inventories to correspond to the net realisable value (EUR 4.4 million in 2020).
On the date of the financial statements, the Group recognises a credit loss on receivables for which no payment will probably be received according to its best judgement.
The Group applies the general model specified in IFRS 9 on recognising expected credit losses.
To determine the expected credit losses, the trade receivables from each customer were grouped on the basis of the probability of credit risk and lateness of payment. The credit loss risk is deemed to have increased significantly if the payment is more than 30 days overdue. A customer-specific assessment of the expected credit loss is made on that basis. The sold machine serving as security is taken into account when determining the credit loss.
The estimates are based on systematic and continuous review of receivables as part of credit risk control. The assessment of credit risks is based on previously realised credit losses, amount and structure of the receivables and short-term financial events and conditions.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Trade receivables | 0 | 0 |
| Loan receivables | 0 | 7 |
| Other receivables | 0 | 749 |
| Accrued income | 73 | 82 |
| Total | 73 | 839 |
Receivables do not have any significant credit risk concentrations.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Trade receivables | 43,394 | 35,384 |
| Accrued income | 4,346 | 2,835 |
| Other receivables | 12,830 | 9,711 |
| Derivative contracts held for trading | 94 | 619 |
| Total | 60,664 | 48,549 |
Definition established of expected credit losses is described in note 5.6. The fair value of receivables is presented in note 5.7.
| (1,000 EUR) | Non-matured | Matured less than 30 days |
Matured 30‒90 |
Matured 91‒180 days |
Matured 181‒360 days |
Matured more than 360 days |
Total |
|---|---|---|---|---|---|---|---|
| 2021 | |||||||
| Gross book value of trade receivables |
34,028 | 6,426 | 2,258 | 599 | 157 | 493 | 43,964 |
| Deductible item concerning expected loss |
-76 | -493 | -569 | ||||
| Net book value of trade receivables |
34,028 | 6,426 | 2,258 | 599 | 81 | 0 | 43,394 |
| 2020 | |||||||
| Gross book value of trade receivables |
26,547 | 6,276 | 1,888 | 452 | 499 | 617 | 36,279 |
| Deductible item concerning expected loss |
-28 | -249 | -617 | -895 | |||
| Net book value of trade receivables |
26,547 | 6,276 | 1,888 | 423 | 249 | 0 | 35,384 |
| (1,000 EUR) | Non-matured | Matured less than 30 days |
Matured 30‒90 |
Matured 91‒180 days |
Matured 181‒360 days |
Matured more than 360 days |
Total |
|---|---|---|---|---|---|---|---|
| 2021 | |||||||
| Gross book value of trade receivables |
34,028 | 6,426 | 2,258 | 599 | 157 | 493 | 43,964 |
| Deductible item concerning expected loss |
-76 | -493 | -569 | ||||
| Net book value of trade receivables |
34,028 | 6,426 | 2,258 | 599 | 81 | 0 | 43,394 |
| 2020 | |||||||
| Gross book value of trade receivables |
26,547 | 6,276 | 1,888 | 452 | 499 | 617 | 36,279 |
| Deductible item concerning expected loss |
-28 | -249 | -617 | -895 | |||
| Net book value of trade receivables |
26,547 | 6,276 | 1,888 | 423 | 249 | 0 | 35,384 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Change in the deduction for the expected loss associated with trade receivables |
-325 | -381 |
| Final credit losses | 193 | 365 |
| Cancelled final credit losses | -44 | -74 |
| Total | -176 | -90 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Trade creditors (other financial liabilities) | 89,839 | 59,551 |
| Advances received | 22,937 | 4,549 |
| Other liabilities | 12,255 | 7,387 |
| Accruals and deferred income | ||
| Accrued staff expenses | 21,917 | 16,982 |
| Interest accruals | 6 | 394 |
| Liabilities based on sales contracts | 4,386 | 4,575 |
| Other accruals and deferred income | 3,324 | 3,778 |
| Derivative contracts held for trading | 292 | 1,029 |
| Total | 154,956 | 98,244 |
A provision is recognised when the Group has a legal or factual obligation based on a previous event, the realisation of a payment obligation is probable and the amount of the obligation can be reliably estimated. The amount of the provisions is measured on each closing date and modified according to the best estimate at the time of assessment. Changes in provisions are recognised in the income statement at the same amount as the initial recognition of the provision.
A guarantee provision is recognised upon the sale of a product subject to a guarantee condition. The amount of guarantee provision is based on empirical data on actual guarantee costs.
The guarantee provision is based on realised guarantee expenses. The guarantee period granted for the products is 12 months or 2,000 hours, and defects in the products observed during the guarantee period are repaired at the company's cost. The guarantee provision is based on failure history recorded in the previous years. The guarantee provisions are expected to be used during the next year.
| (1,000 EUR) | Guarantee provision |
|---|---|
| 31 Dec 2020 | 4,979 |
| Increase | 956 |
| Decrease | -1,384 |
| 31 Dec 2021 | 4,550 |
Share capital is presented as the nominal value of ordinary shares. Expenses associated with the issuance or purchase of equity instruments are presented as an equity reduction item.
The dividend distribution to shareholders proposed by the Board of Directors is recognised as a deduction of shareholders' equity in the period during which the general meeting of shareholders has approved the dividend.
Dividend income is recognised once the dividend becomes vested.
The following table is a presentation of the effects of changes in the numbers of shares and equity.
| Number of shares |
Share capital |
Other reserves |
Treasury shares |
|
|---|---|---|---|---|
| (1,000 pcs) (1,000 EUR) (1,000 EUR) (1,000 EUR) | ||||
| 31 Dec 2020 | 28,000 | 7,000 | 3,460 | -2 |
| Share-based incentive plan |
0 | 0 | 0 | |
| 31 Dec 2021 | 28,000 | 7,000 | 3,460 | -2 |
The maximum number of shares is 48 million (48 million in 2020). The nominal value of each share is EUR 0.25, and the Group's maximum share capital is EUR 12 million (EUR 12 million in 2020). The number of shares outstanding is 28 million (28 million in 2020). All issued shares have been paid in full.
All shares are of the same series and each share entitles its holder to one vote at shareholders' meetings and gives an equal right to dividends.
Ponsse Plc has no outstanding convertible notes or bonds with warrants.
The Ponsse Plc Board of Directors is not currently authorised to increase the share capital or issue convertible notes or bonds with warrants.
The Ponsse Plc Board of Directors is authorised by AGM to decide upon the acquisition of the treasury shares using the company's unrestricted shareholders' equity and to decide on the assignment of treasury shares.
Below are descriptions of the equity reserves:
The company holds 227 treasury shares.
The translation differences reserve comprises translation differences arising from the translation of financial statements of foreign units.
Other reserves comprises increase for the issue of the treasury shares related to the share based incentive plan.
In 2021, a dividend of EUR 0.60 was paid per share, for a total of EUR 16.8 million (in 2020, EUR 0.30 per share, for a total of EUR 8.4 million). The company's Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.60 per share be paid for 2021. The Board will also propose that the Annual General Meeting will authorise the Board to decide on paying a dividend of at most EUR 0.25 per share at a later date. The dividend distribution totals to at most EUR 23,8 million.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Dividend income from financial assets available for sale |
5 | 5 |
| Interest income from loans and receivables | 190 | 97 |
| Exchange rate gains, realised | 0 | 0 |
| Exchange rate gains, unrealised | 0 | 0 |
| Change in the fair value of derivative instruments |
0 | 168 |
| Other financial income | 447 | 197 |
| Total | 643 | 466 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Interest expenses for financial loans | 603 | 1,415 |
| Exchange rate losses, realised | 41 | 2,169 |
| Exchange rate losses, accruals | 759 | 13,239 |
| Change in the fair value of derivative instruments |
235 | 0 |
| Other financial expenses | 841 | 1,314 |
| Total | 2,478 | 18,137 |
| Financial income and expenses in total |
-1,836 | -17,671 |
Accrued exchange rate losses in 2020 mainly consist of measuring the Group's internal trade receivables in company Ponsse Latin America Ltda.
| (1,000 EUR) | Other shares and holdings |
|---|---|
| Acquisition cost 31 Dec 2020 | 371 |
| Increase | 2 |
| Decrease | 0 |
| Acquisition cost 31 Dec 2021 | 373 |
Other financial assets mainly contain unquoted shares in enterprises serving the company's operations. They are measured at acquisition cost because their fair values are not reliably available.
| 120,900 | 123,611 |
|---|---|
| 2021 | 2020 |
Interest-bearing liabilities are classified as short-term liabilities unless the Group has the unconditional right to postpone the payment of the liabilities by at least 12 months from the end of the reporting period.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Non-current interest-bearing liabilities |
||
| Loans from financial institutions | 39,162 | 39,481 |
| Other liabilities | 1,671 | 2,629 |
| Lease liabilities | 9,018 | 8,360 |
| Total | 49,851 | 50,470 |
Current interest-bearing
| Total | 4,945 | 64,055 |
|---|---|---|
| Lease liabilities | 3,346 | 2,743 |
| Other liabilities | 958 | 30,958 |
| Loans from financial institutions | 641 | 30,353 |
| liabilities |
The fair values for commitments is presented in Note 8.1.
The fair values for liabilities is presented in Note 5.7.
The Group has both floating rate and fixed rate non-collaretal bank loans.
EUR 15,726 thousand of all liabilities have a fixed interest rate (EUR 45,525 thousand in 2020). Other loans EUR 39,070 thousand (EUR 69,000 thousand in 2020) have a variable interest rate.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Lease liabilities – total amount of minimum rents |
||
| Within less than twelve months | 3,497 | 2,857 |
| Within one to five years | 8,458 | 7,579 |
| After more than five years | 683 | 1,136 |
| Total | 12,638 | 11,571 |
| Total lease liabilities | 12,638 | 11,571 |
|---|---|---|
| Financial expenses to be accrued in the future |
274 | 468 |
| Total | 12,364 | 11,104 |
| After more than five years | 674 | 261 |
| Within one to five years | 8,344 | 8,099 |
| Within less than twelve months | 3,346 | 2,743 |
| minimum rents |
The Group is exposed to several financing risks in its normal course of business. The objective of the Group's risk management is to minimise the adverse effects of changes in the financial markets on the Group's earnings. The primary types of financing risks are foreign exchange risk and interest rate risk. The Group uses forward exchange agreements, foreign currency loans and interest rate swaps for risk management. The general principles of the Group's risk management are approved by the Board of Directors of the parent company, and the Group management with the business operations is responsible for their practical implementation. The Group management will identify and assess the risks, and acquire the instruments required for hedging against risks in close cooperation with operating units.
The Group operates internationally and is therefore exposed to transaction risks arising from different foreign exchange positions, as well as risks arising from the conversion of investments in different currencies to the parent company's operating currency. The most important currencies for the Group are the United States dollar (USD), the Swedish krona (SEK), the pound sterling (GBP), the Brazilian real (BRL) and Russian rouble (RUB), of which USD, SEK and GBP are hedged according to Group's hedging policy.
Foreign exchange risks arise from commercial transactions, monetary balance sheet items and net investments in foreign subsidiaries. The equity of the Group subsidiaries is EUR 88.6 million (EUR 43.7 million in 2020), including a dividend of EUR 1.0 million (EUR 1.7 million in 2020) paid to the parent company.
The Group processes foreign currency denominated receivables and liabilities at net amounts for hedging purposes, and hedges them with forward exchange agreements. Hedging transactions are carried out in accordance with written risk management principles approved by Group management. Hedge accounting in accordance with IFRS 9 is not applied to these items (Note 5.2).
The following table is a presentation of the strengthening or weakening of the euro against the United States dollar, the Swedish krona, the pound sterling, Brasilian real and Russian rouble, with all other factors remaining unchanged. The total net position of the aforementioned currencies is -4.8 million euros (-37.3 million euros in 2020).The change percentages reflect average volatility during the previous 12 months. The sensitivity analysis is based on foreign currency assets and liabilities on the balance sheet date. The sensitivity analysis also takes into consideration the effects of currency derivatives, which off-set the effects of exchange rate changes.
The changes would mainly have been caused by exchange rate changes in foreign currency trade receivables and liabilities.
| (1,000 EUR) | 2021 | |||
|---|---|---|---|---|
| Change in EUR exchange rate |
Strengthening | Weakening | ||
| Effect on result after taxes | ||||
| USD | 4% | -129 | 3% | 86 |
| SEK | 2% | 28 | 1% | -19 |
| GBP | 2% | -46 | 3% | 48 |
| BRL | 7% | 531 | 6% | -407 |
| RUB | 6% | 6 | 5% | -5 |
| (1,000 EUR) | 2020 | |||
|---|---|---|---|---|
| Change in EUR exchange rate |
Strengthening | Weakening | ||
| Effect on result after taxes | ||||
| USD | 5% | 181 | 7% | -257 |
| SEK | 4% | 13 | 6% | -16 |
| GBP | 5% | -48 | 3% | 28 |
| BRL | 23% | 6,872 | 15% | -4,397 |
| RUB | 16% | -416 | 11% | 295 |
The Group's short-term money market investments expose its cash flow to interest rate risk, but the overall effect is not significant. The Group's income and operational cash flows are mainly independent of market interest rate fluctuations. The Group is mainly exposed to interest rate risk associated with the non-current loan portfolio. The Group hedges the interest rate risk associated with future cash flows by interest rate swaps. The degree of hedging is about 72 per cent of all floating rate loans.
| (1,000 EUR) | ||
|---|---|---|
| Sensitivity analysis for floating interest loans: | ||
| Change percentage | +1% | -0.5% |
| Effect on result after taxes | -552 | 276 |
The Group's policy defines creditworthiness requirements for customers, investment transactions and counterparties to derivatives, as well as investment principles. The Group does not have any significant concentrations of credit risk on receivables because its customer base is wide and geographically diversified. The Group aims at cautious and secured credit granting. As a rule, the sold machine is guarantee for trade receivables until the purchase price has been paid. The Group's maximum credit risk corresponds to the book value of financial assets at period-end. Trade receivables are presented by age in Note 4.6.
The Group applies the IFRS 9 general model for measuring expected credit losses, according to which probable credit losses are recognised from trade receivables over 30 days overdue and over EUR 10 thousand. To determine the credit loss, the overdue trade receivables are grouped based on payment delay, probability of payment default and secure of the trade receivable. The credit loss risk is deemed to have increased significantly if the payment is more than 30 days overdue. A customer-specific assessment of the expected credit loss is made on that basis. The sold machine serving as security is taken into account when determining the credit loss.
The Group aims to continuously estimate and monitor the amount of financing required for business operations in order to maintain sufficient liquid assets for financing the operations and repaying any loans falling due. Group management has not identified significant liquidity risk concentrations in financial assets or sources of financing.
The availability and flexibility of financing is ensured through credit facilities and other financial instruments, as well as through co-operation with several banks. The amount of unused credit facilities on 31 December 2021 was EUR 140.0 million, which
equals 100 per cent of the total credit facilities (2020, EUR 110.0 million, 79 per cent). The credit limit facilities mainly mature for renewal every three years. The Group has available an EUR 100 million corporate paper programme, of which EUR 0 million has been taken out. In addition, the group has in use bank account limits worth 3 million euros during the financial period.
The average maturity of the bank loans was 2.9 years (2020, 3.9 years) on 31 December 2021.
The following is a presentation of a contractual maturity analysis regarding financial liabilities. The figures are non-discounted and include both interest payments and repayment of capital.
| (1,000 EUR) | Balance sheet value |
Cash flow* |
Within less than one year |
Within one to five years |
After more than five years |
|---|---|---|---|---|---|
| 31 Dec 2021 | |||||
| Bank loans | 39,803 41,152 | 948 40,204 | 0 | ||
| Other liabilities | 2,629 | 2,671 | 976 | 1,695 | 0 |
| Lease liabilities | 12,364 12,638 | 3,497 | 8,458 | 683 | |
| Trade creditors and other liabilities 154,664 154,664 154,664 |
|||||
| Derivative contract liabilities |
292 | 292 | 292 | ||
| Off-balance sheet liabilities** |
0 | 7,404 | 7,404 |
| (1,000 EUR) | Balance sheet value |
Cash flow* |
Within less than one year |
Within one to five years |
After more than five years |
|---|---|---|---|---|---|
| 31 Dec 2020 | |||||
| Bank loans | 69,834 71,471 31,016 40,455 | 0 | |||
| Other liabilities | 33,587 33,807 31,134 | 2,673 | 0 | ||
| Lease liabilities | 11,104 11,571 | 2,857 | 7,579 | 1,136 | |
| Trade creditors and other liabilities |
97,215 97,215 97,215 | ||||
| Derivative contract liabilities |
1,029 | 1,029 | 1,029 | ||
| Off-balance sheet liabilities** |
0 | 7,897 | 7,897 |
*contractual cash flow from contracts cleared in gross values **maximum cash flow based on off-balance sheet agreements, not taking into account the probability of the payment being realised. Detailed information in Note 8.1.
The purpose of the Group's capital management is to support business through an optimum capital structure by ensuring normal operating conditions and to increase shareholder value with the aim of providing the best possible return. An optimum capital structure also ensures smaller capital costs.
The capital structure can be affected through e.g. dividend distribution. The Group can change and adjust the dividends paid to shareholders or the amount of capital returned to them or the number of new issued shares or decide on selling assets held for sale in order to reduce liabilities.
The Group's interest-bearing net liabilities at the end of 2021 were EUR -66.1 million (31 Dec 2020: EUR 9.1 million) and net gearing was -22.2 per cent (31 Dec 2020: -3.6 per cent). For calculating net gearing, interest-bearing net financial liabilities were divided by the amount of equity. Net liabilities include interest-bearing liabilities deducted by interest-bearing receivables and liquid assets.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Interest-bearing liabilities | 54,796 | 114,525 |
| Interest-bearing receivables | 0 | -7 |
| Cash and cash equivalents | -120,900 | -123,611 |
| Net liabilities | -66,104 | -9,093 |
| Total shareholders' equity | 297,267 | 255,038 |
| Net gearing | -22.2 % | -3.6 % |
| (1,000 EUR) | Financing liabilities | Other assets | ||||
|---|---|---|---|---|---|---|
| Loans | Leases | Sub total | Cash and cash equivalents |
Liquid investments |
Total | |
| Net liabilities 1 Jan 2021 | -103,421 | -11,104 | -114,525 | 123,611 | 7 | 9,093 |
| Cash flows | 61,031 | 3,113 | 64,143 | -2,594 | 61,549 | |
| Acquisition – leases | -4,312 | -4,312 | -4,312 | |||
| Exchange rate adjustments | -40 | -62 | -102 | -117 | -219 | |
| Other changes | 0 | -7 | -7 | |||
| Net liabilities 31 Dec 2021 | -42,430 | -12,366 | -54,796 | 120,900 | 0 | 66,104 |
| Net liabilities 1 Jan 2020 | -74,895 | -6,787 | -81,682 | 48,704 | 56 | -32,923 |
| Cash flows | -28,680 | 1,268 | -27,412 | 73,786 | 46,374 | |
| Acquisition – leases | -5,683 | -5,683 | -5,683 | |||
| Exchange rate adjustments | 155 | 98 | 253 | 1,121 | 1,373 | |
| Other changes | 0 | -48 | -48 | |||
| Net liabilities 31 Dec 2020 | -103,421 | -11,104 | -114,525 | 123,611 | 7 | 9,093 |
The Group's financial assets are classified as assets to be recognised at fair value through profit or loss or to be recognised as amortised cost. The classification is based on the purpose of acquiring financial assets and in connection with the original acquisition.
Financial asset items are classified as Financial assets at fair value through profit or loss if they are acquired for trading purposes or if they are categorised as assets to be recognised at fair value through profit or loss upon initial recognition. The Group has classified investments and derivatives to be recognised at fair value through profit or loss. The derivatives are included in current assets and liabilities.
Financial asset items are classified as assets to be recognised as amortised cost if both of the following conditions are met: a) financial asset items are held pursuant to a business model aimed at holding financial assets for the purpose of collecting cash flows based on an agreement and b) the terms of contract for an item belonging to financial assets stipulates for cash flows that will be implemented at specific points in time and that solely involve the payment of capital and the remaining interest on such capital. The Group has classified trade receivables, other receivables and cash as financial assets to be classified as assets to be recognised as amortised cost. In terms of their nature, the financial assets recognised as amortised cost are included in current or non-current assets in the balance sheet – to non-current assets if they are due to mature after more than 12 months.
With regard to a decline in the value of financial assets, an expected credit loss model is applied.
Interest-bearing liabilities are classified as assets to be recognised at fair value through profit or loss or to be recognised as amortised cost. The Group recognises derivative instruments at fair value through profit or loss. Loans from financial institutions, finance leasing liabilities, accounts payable and other liabilities are recognised as amortised cost. Financial liabilities are classified as short-term liabilities unless the Group has the unconditional right to postpone the payment of the liabilities by at least 12 months from the end of the reporting period.
The Group does not apply hedge accounting pursuant to the IFRS 9 Standard. Derivatives are forward contracts and interest rate swaps that are recognised at fair value through profit or loss. The fair value of the derivatives is recognised in other current assets and liabilities.
| 31 Dec 2021 Balance sheet assets |
Assets at fair value through profit or loss |
Assets at original amortised cost |
Total |
|---|---|---|---|
| Unlisted shares | 373 | 0 | 373 |
| Derivative instruments | 94 | 0 | 94 |
| Trade receivables and other receivables (excluding prepayments) |
0 | 43,394 | 43,394 |
| Cash and cash equivalents | 0 | 120,900 | 120,900 |
| Total | 467 | 164,294 | 164,761 |
| 31 Dec 2021 Balance sheet liabilities |
Liabilities at fair value through profit or loss |
Liabilities at original amortised cost |
Total |
|---|---|---|---|
| Loans (excluding lease liabilities) | 0 | 39,803 | 39,803 |
| Lease liabilities | 0 | 12,364 | 12,364 |
| Derivative instruments | 292 | 0 | 292 |
| Trade creditors and other liabilities (excluding statutory obligations) |
0 | 89,839 | 89,839 |
| Total | 292 | 142,005 | 142,297 |
(1,000 EUR)
| 31 Dec 2020 Balance sheet assets |
Assets at fair value through profit or loss |
Assets at original amortised cost |
Total |
|---|---|---|---|
| Unlisted shares | 371 | 0 | 371 |
| Derivative instruments | 619 | 0 | 619 |
| Trade receivables and other receivables (excluding prepayments) |
0 | 35,384 | 35,384 |
| Cash and cash equivalents | 0 | 123,611 | 123,611 |
| Total | 990 | 158,995 | 159,985 |
| 31 Dec 2020 Balance sheet liabilities |
Liabilities at fair value through profit or loss |
Liabilities at original amortised cost |
Total |
|---|---|---|---|
| Loans (excluding lease liabilities) | 0 | 69,834 | 69,834 |
| Lease liabilities | 0 | 11,104 | 11,104 |
| Derivative instruments | 1,029 | 0 | 1,029 |
| Trade creditors and other liabilities (excluding statutory obligations) |
0 | 59,551 | 59,551 |
| Total | 1,029 | 140,489 | 141,518 |
The Group's items measured at fair value includes unlisted shares and derivative instruments.
Unlisted shares belong to level 3 and derivative instruments belong to level 2 in the fair value hierarchy.
The Group's items measured at fair value only include deriv ative instruments. These instruments belong to level 2 in the fair value hierarchy.
The nominal values of forward agreements were EUR 28.0 million in 2021 and EUR 29.0 million in 2020.
The following price quotations, assumptions and valuation models have been used for the determination of fair values for financial assets and liabilities presented in the table:
Tax based on the taxable income for the period and deferred tax
Tax expenses comprise tax based on the taxable income for the financial period and deferred tax. Taxes are recognised through profit and loss, except if they are directly related to items rec ognised in equity or comprehensive profit and loss account. In such a case, the tax is also recognised under these items. The tax based on the taxable income for the period is calculated on the basis of taxable income in accordance with the tax rate valid in each country.
Deferred taxes are calculated on temporary differences be tween book value and the tax base. However, no deferred tax will be recognised if the tax arises from the original recognition of an asset or liability in accounting, when it is not a question of a business combination and the recognition of such an asset or liability does not affect the profit in accounting or taxable income at the time the transaction is realised.
Deferred tax is recognised in the case of investments in subsid iaries or associated companies, except if the Group is able to determine the time the temporary difference was eliminated and the extent to which the difference will probably not be eliminated during the foreseeable future.
The most substantial temporary differences arise from the depreciation of tangible assets, as well as adjustments at fair value upon acquisitions.
Deferred tax is calculated at tax rates enacted by the closing date of the reporting period which have in practice been ap proved by the closing date of the reporting period.
Deferred tax receivables are recognised up to the probable amount of taxable income in the future against which the tempo rary difference can be utilised. The conditions for recognising a deferred tax liability are estimated in this respect on each closing date of a reporting period.
The Group deducts deferred tax receivables and liabilities from each other only in the case that the Group has a legally enforce able right to set off tax receivables and tax liabilities based on the taxable income for the period against each other and the deferred tax receivables and liabilities are related to income taxes levied by the same tax recipient, either from the same taxpayer or different taxpayers, who intend either to set off the tax receivables and liabilities based on the taxable income for the period against each other, or to realise the receivable and pay the liabilities simultaneously in each such future period during which a significant amount of deferred tax liabilities are expected to be paid or a significant amount of deferred tax receivables are expected to be utilised.
Preparing the consolidated financial statements requires the Group to estimate its income taxes separately for each subsidiary. The estimates take into account the tax position and the effect of temporary differences due to different tax and ac counting practices, such as allocation of income and provisions for expenses. Deferred tax assets and liabilities are recognised as the result of the differences. The possibilities of utilising a deferred tax asset are estimated and adjusted to the extent that the possibility of utilisation is unlikely.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Tax based on the taxable income for the period |
17,517 | 6,889 |
| Taxes from previous financial periods | 1,069 | 0 |
| Deferred taxes | -454 | 388 |
| Total | 18,131 | 7,277 |
Reconciliation of tax expenses in the consolidated statement of comprehensive income and taxes calculated at the Group's domestic tax rate (2021: 20.0%, 2020: 20.0 %)
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Result before taxes | 73,204 | 39,561 |
| Tax calculated using the domestic tax rate | 14,641 | 7,912 |
| Effect of the different tax rates used in foreign subsidiaries |
2,786 | -597 |
| Tax-exempt income | -45 | -362 |
| Non-deductible expenses | -356 | 3,132 |
| Tax reliefs and supports | -24 | -124 |
| Unbooked deferred tax assets | 0 | 3,257 |
| Taxes for previous financial periods | 1,069 | 0 |
| Other items | 61 | -5,941 |
| Taxes in the consolidated statement of comprehensive income |
18,131 | 7,277 |
In 2020, the Group's effective tax rate was affected by consolidation. No deferred tax is recognised for it, because it is treated as a permanent difference. The tax impact of the permanent difference shows on the tax reconciliation on rows "Non-deductible expenses", "Unbooked deferred tax assets" and "Other items".
| (1,000 EUR) | |||
|---|---|---|---|
| Deferred tax assets: | 31 Dec 2020 |
Recognised through profit or loss |
31 Dec 2021 |
| Inventories | 1,862 | 254 | 2,116 |
| Confirmed losses in taxation | 716 | -33 | 683 |
| Other items | 498 | 63 | 561 |
| Total | 3,076 | 285 | 3,360 |
| Deferred tax liabilities: | 31 Dec 2020 |
Recognised through profit or loss |
31 Dec 2021 |
|---|---|---|---|
| Inventories | 0 | 0 | 0 |
| Fixed assets | 1,137 | -170 | 967 |
| Other items | 0 | 0 | 0 |
| Total | 1,137 | -170 | 967 |
| (1,000 EUR) | |||
|---|---|---|---|
| Deferred tax assets: | 31 Dec 2019 |
Recognised through profit or loss |
31 Dec 2020 |
| Inventories | 2,521 | -659 | 1,862 |
| Confirmed losses in taxation | 878 | -161 | 716 |
| Translation difference for the accounting period |
109 | ||
| Other items | 445 | 53 | 498 |
| Total | 3,844 | -659 | 3,076 |
| Deferred tax liabilities: | 31 Dec 2019 |
Recognised through profit or loss |
31 Dec 2020 |
|---|---|---|---|
| Inventories | 0 | 0 | 0 |
| Fixed assets | 1,407 | -271 | 1,137 |
| Other items | 0 | 0 | 0 |
| Total | 1,407 | -271 | 1,137 |
No deferred tax has been recognised through shareholders' equity.
A deferred tax asset of EUR 0.7 million has been recognised for confirmed losses EUR 21.9 million (16.3 in 2020) associated with the Group's foreign subsidiaries. The confirmed losses mentioned have no maturity time.
The consolidated financial statements include the parent company Ponsse Plc and all of its subsidiaries. Subsidiaries are entities in which the Group exercises control. A position of control arises when the Group, by being an investor, is exposed, or has rights, to variable returns from its involvement with the investee and has the ability to affect those returns through its power over the investee.
Intra-Group shareholdings have been eliminated using the acquisition method. The consideration paid and the identifiable assets and obtained liabilities of the acquiree are measured at fair value at the time of acquisition. Acquisition-related expenses, excluding expenses arising from the issuance of debt or equity securities, are recorded as an expense. The consideration paid does not include business operations processed separately from the acquisition. Their effect has been recognised in connection with the acquisition through profit or loss. Processing of the goodwill arising from subsidiary acquisitions is described in part "Goodwill".
Acquired subsidiaries are included in the consolidated financial statements as of the date the Group acquired a position of control, and divested subsidiaries are included until the date the Group's control is discontinued. All intra-Group business transactions, receivables, liabilities, unrealised gains and internal profit distributions are eliminated during the preparation of the consolidated financial statements. Unrealised losses are not eliminated if they are caused by impairment.
In connection with an acquisition that takes place in phases, the previous interest is measured at fair value and the arising profit or loss is recognised through profit or loss. When the Group loses control of a subsidiary, the remaining investment is measured at fair value on the date when control was lost, and the resulting difference is recognised through profit or loss.
Associates are entities in which the Group exercises significant power. Significant power mainly arises when the Group holds more than 20 per cent of the voting rights in an entity or the Group otherwise has significant power but no position of control.
Associates are consolidated using the equity method. If the Group's share of an associate's loss exceeds the book value of the investment, the investment is recognised in the balance sheet at zero value and loss exceeding the book value is not consolidated unless the Group is committed to the fulfilment of the associate's obligations. An investment in an associate includes the goodwill arising from its acquisition. A share of associate profits corresponding to the Group's share of holding is presented as a separate item after operating profit.
The Group's related parties include the parent company, subsidiaries and associates. Related parties also include the members of the Board of Directors, the President and CEO and the members of the management team, including their family members and controlled corporations.
The Group's parent and subsidiary relationships are the following:
| Name and domicile | Group and parent company share of shares and votes,% |
|---|---|
| Parent company Ponsse Plc, Vieremä, Finland |
|
| Ponsse AB, Västerås, Sweden | 100 |
| Ponsse AS, Kongsvinger, Norway | 100 |
| Ponssé S.A.S., Gondreville, France | 100 |
| Ponsse UK Ltd., Annan, United Kingdom | 100 |
| Ponsse Machines Ireland Ltd., Port Laioise, Ireland |
100 |
| Ponsse North America, Inc., Rhinelander, United States |
100 |
| Ponsse Latin America Indústria de Máquinas Florestais Ltda, Mogi das Cruzes, Brazil |
100 |
| OOO Ponsse, St. Petersburg, Russia | 100 |
| Ponsse Centre, St. Petersburg, Russia (owned by OOO Ponsse) |
100 |
| Epec Oy, Seinäjoki, Finland | 100 |
| Ponsse Asia-Pacific Ltd., Hong Kong | 100 |
| Ponsse China Ltd., Beihai, China (owned by Ponsse Asia-Pacific Ltd.) |
100 |
| Ponsse Uruguay S.A., Paysandú, Uruguay | 100 |
| Ponsse Chile SpA Chillán, Chile (starting from 4 Nov 2021) |
100 |
A list of associated companies is presented in Note 7.2. The Group has no joint ventures.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| At beginning of financial period | 832 | 849 |
| Adjustment for previous periods | 0 | -1 |
| Dividens received | -66 | -102 |
| Share of the result of the financial period |
19 | 86 |
| At end of financial period | 785 | 832 |
Information concerning the Group's associated company, its assets, liabilities, net sales and result:
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Associated company | ||
| Sunit Oy, Kajaani, Finland | ||
| Assets | 2,926 | 3,341 |
| Liabilities | 544 | 893 |
| Net sales | 3,854 | 3,369 |
| Result | 129 | 254 |
| Share of ownership | 34% | 34% |
Sunit Oy specialises in telematics and manufactures vehicle computers.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Guarantees given on behalf of others | 20 | 20 |
| Responsibility of checking the VAT deductions made on real property investments, returns responsibility |
7,272 | 7,863 |
| Other commitments | 112 | 14 |
| Total | 7,404 | 7,897 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Minimum rents due based on other non-cancellable leases |
847 | 730 |
Ponsse Group will be independently responsible for its sales, spare parts and maintenance services in the Czech Republic. On 4 February 2022, Ponsse signed a deed of sale, in which it agrees to purchase all shares in KŘENEK FOREST SERVICE s.r.o, its PONSSE forest machine and service dealer in the Czech Republic. The aim is that PONSSE services in the Czech Republic will transfer to Ponsse Group by 1 April 2022. The company will operate as a subsidiary wholly owned by Ponsse.
Ponsse Plc has decided on 2 March 2022 to discontinue temporarily all export operations to Russia and Belarus for both PONSSE forest machines and their spare parts. Also the Ponsse Group's Russian subsidiary OOO Ponsse is discontinues tempo rarily its local spare parts and service operations. Sales in Russia and Belarus account for about 20 percent of the company's net sales calculated from the 2021 financial statements.
At the same time, Ponsse Plc withdrew its profit guidance for the current year. The new profit quidance is linked to the uncer tainties caused by Russia's invasion of Ukraine and EU sanctions. The company announced that it will not provide new guidance for the current year. In accordance with the previous profit quidance, Group´s euro-denominated operating result in 2022 is estimated to be on a par with 2021.
In this challenging situation, Ponsse also strives to take care of the OOO Ponsse's personnel.
Ponsse Plc's Board of Directors has decided to amend its dividend proposal included in the financial statement release published on 22 February 2022 for the Annual General Meeting to be held on 7 April 2022. This amendment is related to Russia's attack on Ukraine and the impacts of this on the company's oper ations and finances.
The Board's new dividend proposal:
"The company's Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.60 per share be paid for 2021. The Board will also propose that the Annual General Meeting will authorise the Board to decide on paying a dividend of at most EUR 0.25 per share at a later date."
The previous dividend proposal published on 22 February 2022 was as follows:
"The Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.85 per share be paid for 2021."
| (1,000 EUR) | Note1 | 2021 | 2020 |
|---|---|---|---|
| Net sales | 2 | 582,331 | 478,586 |
| Increase (+)/decrease (-) in inventories of finished goods and work in progress | 13,280 | -7,436 | |
| Other operating income | 3 | 2,055 | 943 |
| Raw materials and services | 4 | -417,690 | -338,290 |
| Staff costs | 5, 6, 7 | -64,332 | -52,755 |
| Depreciation, amortisation and impairment | 8 | -17,856 | -18,138 |
| Other operating expenses | -42,932 | -46,047 | |
| Operating result | 54,856 | 16,863 | |
| Financial income and expenses | 10 | 1,687 | -16,966 |
| Result before extraordinary items | 56,542 | -102 | |
| Appropriations | 11 | 1,205 | 845 |
| Direct taxes | 12 | -11,455 | -2,987 |
| Net result for the period | 46,292 | -2,244 |
| (1,000 EUR) | Note1 | 2021 | 2020 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Intangible assets | 13 | 40,212 | 35,234 |
| Tangible assets | 13 | 74,419 | 77,717 |
| Financial assets | 14 | 11,782 | 11,782 |
| Total non-current assets | 126,413 | 124,733 | |
| Current assets | |||
| Inventories | 15 | 96,310 | 77,690 |
| Non-current receivables | 16 | 8,197 | 8,131 |
| Current receivables | 16 | 58,605 | 56,998 |
| Cash in hand and at banks | 95,633 | 114,380 | |
| Total current assets | 258,745 | 257,199 | |
| TOTAL ASSETS | 385,158 | 381,932 | |
| LIABILITIES | |||
| Shareholders' equity | 17, 18 | ||
| Share capital | 7,000 | 7,000 | |
| Revaluation reserve | 841 | 841 | |
| Other reserves | 3,458 | 3,458 | |
| Retained earnings | 169,232 | 188,274 | |
| Net result for the period | 46,292 | -2,244 | |
| Total shareholders' equity | 226,822 | 197,329 | |
| Appropriations | 19 | 2,539 | 3,744 |
| Provisions for liabilities and charges | 20 | 4,833 | 5,097 |
| Creditors | |||
| Non-current creditors | 21 | 40,671 | 41,629 |
| Current creditors | 22 | 110,293 | 134,134 |
| Total creditors | 150,964 | 175,763 | |
| TOTAL LIABILITIES | 385,158 | 381,932 |
1The note refers to the Notes to the Accounts on pages 105–112.
1The note refers to the Notes to the Accounts on pages 105–112.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Cash flows from operating activities: | ||
| Operating result | 54,856 | 16,863 |
| Depreciation, amortisation and impairment | 17,856 | 18,138 |
| Change in provisions | -477 | 3,341 |
| Other adjustments | 729 | 15,365 |
| Cash flow before changes in working capital | 72,963 | 53,708 |
| Change in working capital: | ||
| Increase (-)/decrease (+) in current non-interest-bearing receivables | -3,948 | 27,093 |
| Increase (-)/decrease (+) in inventories | -18,620 | 10,752 |
| Increase (+)/decrease (-) in current non-interest-bearing liabilities | 37,333 | -14,293 |
| Cash flow from operations before financial items and income taxes | 87,728 | 77,260 |
| Interest received | 889 | 940 |
| Interest paid | -722 | -805 |
| Dividends received | 1,100 | 1,802 |
| Other financial items | -343 | -2,438 |
| Income taxes paid | -10,074 | -6,188 |
| Net cash flows from operating activities (A) | 78,578 | 70,571 |
| Cash flows used in investing activities: | ||
| Investments in tangible and intangible assets | -19,536 | -15,918 |
| Proceeds from sale of tangible and intangible assets | 33 | 0 |
| Net cash flows used in investing activities (B) | -19,503 | -15,918 |
| Cash flows from financing activities: | ||
| Increase (+)/decrease (-) in current loans | -60,000 | 30,000 |
| Increase (+)/decrease (-) in non-current loans | -958 | -958 |
| Increase (-)/decrease (+) in non-current receivables | -65 | 802 |
| Dividends paid and other distribution of profit | -16,799 | -8,400 |
| Net cash flows from financing activities (C) | -77,822 | 21,444 |
| Increase (+)/decrease (-) in liquid assets (A+B+C) | -18,747 | 76,097 |
| Cash and cash equivalents on 1 Jan | 114,380 | 38,283 |
| Cash and cash equivalents on 31 Dec | 95,633 | 114,380 |
Ponsse Plc's financial statements have been prepared in accordance with the Finnish Accounting Standards (FAS). The information in the financial statements is given in thousands of euro and is based on original acquisition costs unless otherwise stated in the accounting policies. The financial statements have been presented in accordance with the profit and loss account by type of expense.
Non-current assets are recognised in the balance sheet at immediate cost less planned depreciation and amortisation. Planned depreciation and amortisation has been calculated on a straightline basis over the useful life of the assets. Depreciation and amortisation has been calculated starting from the month during which the asset was taken into use.
The depreciation and amortisation periods are: R&D expenses 3–10 years Intangible rights 5 years Other intangible assets 5 years Buildings and structures 20 years Machinery and equipment 5–10 years
Inventories are valued at acquisition cost or a lower probable net realisable value. The Weighted Average Cost method is used as a basis for calculating the value of materials and supplies in stock. The acquisition cost of finished and unfinished products comprises raw materials, direct expenses due to work performed, other direct expenses, and the appropriate proportion of the variable and fixed overheads of manufacturing at the normal utilised capacity. The inventory of second-hand machines is valued at acquisition cost or a lower probable net realisable value. Net realisable value refers to an estimated sales price available through normal business operations less the estimated costs of finishing the product and the costs of sale.
Probable guarantee expenses in respect of products delivered are booked under provisions for liabilities and charges.
Sales are recognised upon the delivery of performance. Items such as indirect taxes and discounts granted have been deducted from the sales revenue before calculating net sales. Exchange rate differences in sales are recognised in financial items.
Leasing payments have been recognised as expenses.
Development costs that fulfil the capitalisation requirements of Chapter 5, Section 8 of the Accounting Act have been booked under intangible assets in the balance sheet and are subject to amortisation. Research costs are recognised directly as annual expenses.
Statutory pension cover for Group employees has been arranged through pension insurance companies and there are no outstanding pension liabilities. Pension insurance contributions have been allocated to match the wages and salaries booked on an accrual basis in the annual accounts.
Derivatives of the parent company include currency derivatives and interest rate swaps. The fair values of the currency derivatives are capitalised and the change of fair values is recognised through profit or loss for the financial period. The fair values of interest rate swaps are presented in notes to the off-balance sheet.
Income taxes have been recognised according to Finnish tax legislation.
Business transactions in a foreign currency are recognised at the exchange rate on the transaction date, while receivables and liabilities in the balance sheet are converted at the exchange rate on the balance sheet date. Exchange rate differences arising from the measurement of balance sheet items are booked under financial items in the profit and loss account.
The data for the financial year 1 January to 31 December 2021 is comparable with the previous year.
| (1,000 EUR) | 2021 2020 |
|
|---|---|---|
| Northern Europe | 202,948 | 205,891 |
| Southern and Central Europe | 106,112 | 117,181 |
| Russia and Asia | 133,205 | 60,131 |
| North and South America | 137,363 | 92,039 |
| Other countries | 2,703 | 3,346 |
| Total | 582,331 | 478,586 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Sales profits on tangible assets | 33 | 0 |
| Public subsidies | 916 | 275 |
| Other | 1,106 | 668 |
| Total | 2,055 | 943 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Raw materials and consumables | ||
| Purchases during the financial period | 410,149 | 323,164 |
| Increase (-)/decrease (+) in inventories | -5,368 | 3,235 |
| External services | 12,908 | 11,891 |
| Total | 417,690 | 338,290 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Persons | ||
| Employees | 446 | 418 |
| Clerical workers | 530 | 516 |
| Total | 976 | 934 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Salaries and bonuses | 52,671 | 44,271 |
| Pension costs | 9,221 | 6,414 |
| Other social security costs | 2,440 | 2,070 |
| Total | 64,332 | 52,755 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| President and CEO | 722 | 996 |
| Members of the Board of Directors | 374 | 325 |
| Total | 1,096 | 1,321 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Depreciation according to plan | 17,856 | 18,138 |
| Total | 17,856 | 18,138 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| KPMG | KPMG | |
| Auditor's remunerations | 77 | 77 |
| Certificates and statements | 7 | 1 |
| Tax advice | 7 | 26 |
| Other remunerations | 54 | 50 |
| Total | 144 | 154 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Dividend income | ||
| From Group companies | 1,033 | 1,700 |
| From associated companies | 66 | 102 |
| From others | 0 | 0 |
| Dividend income, total | 1,100 | 1,802 |
| Interest income and other financial income | ||
| From Group companies | 890 | 920 |
| Change in the fair value of derivative instruments |
985 | 10,722 |
| From others | 3,815 | 10,756 |
| Interest income and other financial income, total |
5,690 | 22,398 |
| Financial income, total | 6,790 | 24,200 |
| Value adjustments of financial securities Interest expenses and other financial |
0 | 15,315 |
| expenses | ||
| To Group companies Change in the fair value of derivative instruments |
0 2,203 |
0 9,878 |
| To others | 2,900 | 15,973 |
| Interest expenses and other financial expenses, total |
5,103 | 25,851 |
| Financial expenses, total | 5,103 | 41,165 |
| Financial income and expenses, total | 1,687 | -16,966 |
In 2020, the parent company has measured the net investment to subsidiary Ponsse Latin America Ltda at fair value by recognising credit loss from trade receivables EUR 15.1 million and impairment from non-current investments EUR 15.3 million, in total EUR 30.4 million.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Difference between depreciations according to plan and depreciations in taxation |
1,205 | 845 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Income tax on extraordinary items | 0 | 0 |
| Income taxes from actual operation | 11,455 | 2,987 |
| Change in deferred tax asset | 0 | 0 |
| Total | 11,455 | 2,987 |
| (1,000 EUR) | Development costs |
Patent costs |
Intangible rights |
Other intangible assets |
Prepayments and unfinished acquisitions |
Total |
|---|---|---|---|---|---|---|
| Acquisition cost 1 Jan 2021 | 35,803 | 2,194 | 2,280 | 15,576 | 16,021 | 71,874 |
| Increase | 15,706 | 630 | 83 | 2,094 | 13,632 | 32,145 |
| Decrease | 0 | 0 | 0 | -398 | -19,623 | -20,022 |
| Transfers between items | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisition cost 31 Dec 2021 | 51,509 | 2,824 | 2,363 | 17,272 | 10,029 | 83,997 |
| Accumulated depreciation on 1 Jan 2021 | -23,636 | -1,438 | -1,895 | -9,049 | 0 | -36,017 |
| Accumulated depreciation on decrease and transfers | 0 | 0 | 0 | 199 | 0 | 199 |
| Depreciation for the accounting period | -5,015 | -346 | -156 | -1,833 | 0 | -7,349 |
| Accumulated depreciation on 31 Dec 2021 | -28,650 | -1,784 | -2,051 | -10,683 | 0 | -43,168 |
| Book value 31 Dec 2021 | 22,859 | 1,040 | 312 | 6,589 | 10,029 | 40,829 |
| Book value 31 Dec 2020 | 12,167 | 756 | 385 | 6,528 | 16,021 | 35,857 |
| (1,000 EUR) | Land and water |
Buildings and structures |
Machinery and equipment |
Other tangible assets |
Prepayments and unfinished acquisitions |
Total |
|---|---|---|---|---|---|---|
| Acquisition cost 1 Jan 2021 | 1,618 | 78,477 | 81,354 | 230 | 1,240 | 162,918 |
| Increase | 0 | 2,785 | 4,652 | 0 | 5,758 | 13,195 |
| Decrease | 0 | 0 | 0 | 0 | -5,981 | -5,981 |
| Transfers between items | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisition cost 31 Dec 2021 | 1,618 | 81,262 | 86,006 | 230 | 1,016 | 170,132 |
| Accumulated depreciation on 1 Jan 2021 | 0 | -32,246 | -54,419 | 0 | 0 | -86,665 |
| Accumulated depreciation on decrease and transfers | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation for the accounting period | 0 | -3,881 | -6,625 | 0 | 0 | -10,506 |
| Accumulated depreciation on 31 Dec 2021 | 0 | -36,128 | -61,044 | 0 | 0 | -97,172 |
| Revaluations | 0 | 841 | 0 | 0 | 0 | 841 |
| Book value 31 Dec 2021 | 1,618 | 45,975 | 24,962 | 230 | 1,016 | 73,801 |
| Book value 31 Dec 2021 | 1,618 | 47,072 | 26,935 | 230 | 1,240 | 77,094 |
| Book value of operating machinery and equipment | ||||||
| 31 Dec 2021 | 22,490 | |||||
| 31 Dec 2020 | 24,610 |
A revaluation of EUR 841 thousand was made on 31 August 1994 of the parent company's business premises at Vieremä. Depreciation has not been applied to the revaluation. The revaluation was made on the basis of legislation then in effect because the likely sales price of the premises is permanently and substantially higher than the acquisition cost.
| (1,000 EUR) | Shares in Group companies |
Shares in associated companies |
Shares, other |
Receivables from Group companies |
Receivables, other |
Total |
|---|---|---|---|---|---|---|
| Acquisition cost 1 Jan 2021 | 32,617 | 335 | 440 | 0 | 0 | 33,391 |
| Increase | 0 | 0 | 0 | 0 | 0 | 0 |
| Decrease | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisition cost 31 Dec 2021 | 32,617 | 335 | 440 | 0 | 0 | 33,391 |
| Accumulated write-downs 1 Jan 2021 | -21,525 | 0 | -84 | 0 | 0 | -21,608 |
| Decrease | 0 | 0 | 0 | 0 | 0 | 0 |
| Write-downs | 0 | 0 | 0 | 0 | 0 | 0 |
| Revaluations | 0 | 0 | 0 | 0 | 0 | 0 |
| Book value 31 Dec 2021 | 11,092 | 335 | 356 | 0 | 0 | 11,782 |
| Book value 31 Dec 2020 | 11,092 | 335 | 356 | 0 | 0 | 11,782 |
Impairments are related to down-write of investment in Ponsse Latin America Ltda.
| Name and domicile | Companys's share of ownership, % |
|---|---|
| Ponsse AB, Västerås, Sweden | 100 |
| Ponsse AS, Kongsvinger, Norway | 100 |
| Ponssé S.A.S., Gondreville, France | 100 |
| Ponsse UK Ltd., Annan, United Kingdom | 100 |
| Ponsse Machines Ireland Ltd., Ireland | 100 |
| Ponsse North America, Inc., Rhinelander, United States |
100 |
| Ponsse Latin America Indústria de Máquinas Florestais Ltda, Mogi das Cruzes, Brazil |
100 |
| OOO Ponsse, St. Petersburg, Russia | 100 |
| Ponsse Centre, St. Petersburg, Russia (owned by OOO Ponsse) |
100 |
| Epec Oy, Seinäjoki, Finland | 100 |
| Ponsse Asia-Pacific Ltd., Hong Kong | 100 |
| Ponsse China Ltd., Beihai, China (owned by Ponsse Asia-Pacific Ltd.) |
100 |
| Ponsse Uruguay S.A., Paysandú, Uruguay | 100 |
| Ponsse Chile SpA, Chillán, Chile (starting from 4 November 2021) |
100 |
All Group companies were consolidated in the parent company's financial statements.
| Name and domicile | Companys's share of ownership, % |
|---|---|
| Sunit Oy, Kajaani, Finland | 34 |
The associate was consolidated in the parent company's financial statements.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Raw materials and consumables | 63,941 | 54,790 |
| Work in progress | 20,526 | 7,427 |
| Finished products/goods | 4,074 | 3,906 |
| Other inventories | 7,770 | 11,567 |
| Prepayments | 0 | 0 |
| Total | 96,310 | 77,690 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Non-current receivables | ||
| Receivables from Group companies | ||
| Loan receivables | 8,197 | 8,131 |
| Loan receivables | 0 | 0 |
| Other receivables | 0 | 0 |
| Non-current receivables, total | 8,197 | 8,131 |
| Current receivables | ||
| Trade receivables | 13,787 | 9,105 |
| Receivables from Group companies | ||
| Trade receivables | 37,708 | 39,071 |
| Other receivables | 4,315 | 5,289 |
| Accrued income | ||
| Grants receivable | 596 | 156 |
| Income tax receivables | 236 | 1,616 |
| Derivative contracts | 94 | 619 |
| Other accrued income | 1,870 | 1,141 |
| Other accrued income, total | 2,796 | 3,533 |
| Current receivables, total | 58,605 | 56,998 |
| Receivables, total | 66,802 | 65,129 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Equity employed | ||
| Share capital on 1 Jan | 7,000 | 7,000 |
| Scrip issue | 0 | 0 |
| Share capital on 31 Dec | 7,000 | 7,000 |
| Share premium account on 1 Jan | 0 | 0 |
| Scrip issue | 0 | 0 |
| Share premium account on 31 Dec | 0 | 0 |
| Revaluation reserve 1 Jan | 841 | 841 |
| Revaluation of non-current assets, change | 0 | 0 |
| Revaluation reserve 31 Dec | 841 | 841 |
| Equity employed, total | 7,841 | 7,841 |
| Shareholders' surplus | ||
| Other reserves 1 Jan | 3,458 | 3,458 |
| Share based incentive scheme, change | 0 | 0 |
| Other reserves 31 Dec | 3,458 | 3,458 |
| Retained earnings on 1 Jan | 186,030 | 196,674 |
| Purchase of treasury shares | 0 | 0 |
| Share based incentive scheme, change | 0 | 0 |
| Dividend distribution | -16,799 | -8,400 |
| Retained earnings on 31 Dec | 169,232 | 188,274 |
| Result for the period | 46,292 | -2,244 |
Shareholders' surplus, total 218,982 189,488
Total shareholders' equity 226,823 197,329
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Retained earnings | 169,232 | 188,274 |
| Result for the period | 46,292 | -2,244 |
| Capitalised R&D expenses | -30,201 | -26,506 |
| Total | 185,322 | 159,524 |
Capitalised R&D expenses are deducted from the distributable funds as of 1 January 2016.
Ponsse Plc's registered share capital on 31 December 2021 was EUR 7,000,000 divided into 28,000,000 shares each having a nominal value of EUR 0.25. All shares are of the same series and each share entitles its holder to one vote at shareholder meetings and gives an equal right to a dividend.
Ponsse Plc has no outstanding convertible notes or bonds with warrants. The parent company holds 227 treasury shares. The Ponsse Plc Board of Directors is not currently authorised to increase the company's share capital, or issue convertible notes or bonds with warrants.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Depreciation difference | 2,539 | 3,744 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Guarantee provision | 4,833 | 5,097 |
| Other compulsory provisions | 0 | 0 |
| Total | 4,833 | 5,097 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Loans from financial institutions | 39,000 | 39,000 |
| Pension loans | 0 | 0 |
| Other loans | 1,671 | 2,629 |
| Non-current creditors, total | 40,671 | 41,629 |
| Debts falling due in more than five years |
||
| Loans from financial institutions | 0 | 0 |
| Pension loans | 0 | 0 |
| Other loans | 0 | 0 |
| Total | 0 | 0 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Loans from financial institutions | 0 | 30,000 |
| Pension loans | 0 | 0 |
| Other loans | 958 | 30,958 |
| Advances received | 381 | 197 |
| Trade creditors | 80,775 | 50,790 |
| Advances received | 0 | 0 |
|---|---|---|
| Intra-Group trade creditors | 8,259 | 4,562 |
| Other intra-Group liabilities | 0 | 0 |
| Accruals and deferred income | 0 | 0 |
| Liabilities to Group companies, total | 8,259 | 4,562 |
| Advance invoicing | 0 | 0 |
| Advance invoicing to Group companies | 0 | 0 |
| Other liabilities | 1,402 | 1,048 |
| Accruals and deferred income | ||
| Accrued staff expenses | 13,781 | 10,398 |
| Interest accruals | 6 | 394 |
| Income tax liability | 0 | 0 |
| Accruals and deferred income in respect of inventories |
0 | 0 |
| Other accruals and deferred income | 4,731 | 5,786 |
| Accruals and deferred income, total | 18,518 | 16,578 |
| Current creditors, total | 110,293 134,134 |
|---|---|
Company has not issued any written security for the external liablities.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Leasing payments payable under leasing agreements |
||
| Leasing payments payable during the next financial period |
489 | 338 |
| Leasing payments payable thereafter | 711 | 267 |
| Leasing payments payable under leasing agreements, total |
1,200 | 605 |
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Guarantees given on behalf of companies within | ||
| the Group | 24 | 261 |
The parent company has issued a written security for the external liabilities of its six subsidiaries.
Pension cover for the personnel of the company is arranged with external pension insurance company.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Guarantees given on behalf of others | 2,528 | 1,720 |
| Repurchase commitments | 299 | 441 |
| Other commitments | 7,384 | 7,877 |
| Other contingent liabilities, total | 10,211 10,037 |
The company is responsible for checking the VAT deductions made on real property investments if the taxable usage of the real property is diminished during the auditing period. The maximum amount of the liability is EUR 7,271,688 (EUR 7,863,036) and the last auditing year is 2031 (2030), and this is included in above-mentioned Other commitments section.
| (1,000 EUR) | 2021 | 2020 |
|---|---|---|
| Forward exchange agreements | ||
| Fair value | 10 | 245 |
| Value of underlying asset | 27,423 | 28,969 |
| Interest rate derivatives | ||
| Fair value | -208 | -655 |
| Value of underlying asset | 28,000 | 29,000 |
Derivative contracts are used solely to hedge against foreign exchange and interest rate risks.
Ponsse Plc's share capital is EUR 7,000,000 divided into 28,000,000 shares. The nominal value of each share is EUR 0.25. All shares are of the same series and each share entitles its holder to one vote at shareholders' meetings and gives an equal right to dividends.
Ponsse Plc has no outstanding convertible notes or bonds with warrants.
The parent company holds 227 treasury shares.
Annual General Meeting authorised the Board of Directors to decide on the acquisition of treasury shares so that shares can be acquired in one or several instalments to a maximum of 250,000 shares. The maximum amount corresponds to approximately 0.89 per cent of the company's total shares and votes. The shares will be acquired in public trading organised by Nasdaq Helsinki ("the Stock Exchange"). Furthermore, they will be acquired and paid according to the rules of the Stock Exchange and Euroclear Finland Ltd. The Board may, pursuant to the authorisation, only decide upon the acquisition of the treasury shares using the company's unrestricted shareholders' equity. The authorisation is required for supporting the company's growth strategy in the company's potential mergers and acquisitions or other arrangements. In addition, shares can be distributed to the company's current shareholders, used for increasing shareholders' ownership value by invalidating shares after their acquisition or used in personnel incentive systems. The authorisation includes the right of the Board to decide upon all other terms and conditions in the acquisition of treasury shares. The authorisation is valid until the next Annual General Meeting; however, no later than 30 June 2022. The previous authorisations are cancelled.
The AGM authorised the Board of Directors to decide on the assignment of treasury shares held by the company in one or more tranches for payment or without payment so that a maximum of 250,000 shares will be issued on the basis of the authorisation. The maximum amount corresponds to approximately 0.89 per cent of the company's total shares and votes. The authorisation includes the right of the Board to decide upon all other terms and conditions of the share issue. Thus, the authorisation includes the right to organise a directed issue in deviation of the shareholders' subscription rights under the provisions prescribed by law. The authorisation is used in supporting the Company's growth strategy in the Company's potential corporate acquisitions or other arrangements. In addition, the shares can be issued to the Company's current shareholders, sold through public trading or used in personnel incentive systems. A directed share issue may only be free of charge if there is a particularly weighty economic reason for this considering the company, taking into account the interests of the company and all of its shareholders. The authorisation is valid until the next Annual General Meeting; however, no later than 30 June 2022. The previous authorisations are cancelled.
Annual General Meeting authorised the Board of Directors to decide on a directed share issue and to issue special rights entitling to shares as referred to in Section 10(1) of the Finnish Limited Liability Companies Act, in one or more tranches, for payment or without a payment. Based on the authorisation, a maximum of 200,000 shares can be issued, which is approximately 0.7 per cent of the current total number of shares in the company. Shares can be issued as part of the company's share-based incentive plans. The Board of Directors will decide on all the terms and conditions for the granting of special rights entitling to shares in the share issue. Based on the authorisation, a derogation from the pre-emptive subscription right of shareholders (targeted share issue) may be granted for the special rights entitling to shares. A directed issue may only be free of charge if there is a particularly weighty economic reason for this considering the company, taking into account the interests of the company and all of its shareholders. The authorisation is valid until the next Annual General Meeting, however no later than 30 June 2022.
| Subscription period |
Method of increase | Nominal value EUR |
Number of new shares |
Increase in share capital EUR |
New share capital EUR |
|---|---|---|---|---|---|
| 31 August 1994 | Scrip issue | 0.84 | 1,300,000 | 1,093,221.52 | 2,489,181.31 |
| 9–22 March 1995 | Scrip issue | 0.84 | 148,000 | 124,459.07 | 2,613,640.38 |
| 9–22 March 1995 | Rights issue targeted at the general public | 0.84 | 392,000 | 329,648.34 | 2,943,288.71 |
| 16 March 2000 | Split 1: 2 | 0.42 | - | 0.00 | 2,943,288.71 |
| 16 March 2000 | Scrip issue | 0.50 | - | 556,711.29 | 3,500,000.00 |
| 29 November 2004 Scrip issue | 0.50 | 7,000,000 | 3,500,000.00 | 7,000,000.00 | |
| 29 March 2006 | Split 1: 2 | 0.25 | - | 0.00 | 7,000,000.00 |
At the end of the financial year, the company's Board of Directors did not have any valid authorisation to increase the share capital or to issue convertible bonds or bonds with warrants.
| Month | Turnover value, EUR |
Turnover, number of shares |
Lowest, EUR |
Highest, EUR |
Weighted average share price, EUR |
Closing price, EUR |
Market capitalisation, EUR |
Number of shares |
Relative turnover, % |
|---|---|---|---|---|---|---|---|---|---|
| 1 | 3,026,332 | 98,086 | 29.15 | 31.95 | 30.85 | 31.90 | 893,200,000 | 28,000,000 | 0.35 |
| 2 | 3,831,358 | 115,447 | 31.55 | 34.40 | 33.19 | 33.50 | 938,000,000 | 28,000,000 | 0.41 |
| 3 | 3,922,916 | 110,960 | 33.10 | 38.70 | 35.38 | 37.80 | 1,058,400,000 | 28,000,000 | 0.40 |
| 4 | 8,370,538 | 203,375 | 37.00 | 45.10 | 41.19 | 44.20 | 1,237,600,000 | 28,000,000 | 0.73 |
| 5 | 4,591,596 | 105,297 | 42.00 | 45.85 | 43.64 | 43.10 | 1,206,800,000 | 28,000,000 | 0.38 |
| 6 | 2,440,339 | 57,279 | 40.15 | 44.25 | 42.63 | 42.40 | 1,187,200,000 | 28,000,000 | 0.20 |
| 7 | 2,354,659 | 57,120 | 39.90 | 42.95 | 41.22 | 42.95 | 1,202,600,000 | 28,000,000 | 0.20 |
| 8 | 4,072,282 | 94,129 | 41.50 | 44.70 | 43.26 | 44.00 | 1,232,000,000 | 28,000,000 | 0.34 |
| 9 | 6,092,940 | 148,435 | 38.00 | 45.20 | 41.05 | 39.85 | 1,115,800,000 | 28,000,000 | 0.53 |
| 10 | 6,878,278 | 154,085 | 38.25 | 48.80 | 44.64 | 44.70 | 1,251,600,000 | 28,000,000 | 0.55 |
| 11 | 4,816,887 | 109,436 | 41.05 | 45.75 | 44.01 | 42.20 | 1,181,600,000 | 28,000,000 | 0.39 |
| 12 | 4,028,989 | 98,250 | 39.40 | 42.35 | 41.03 | 42.20 | 1,181,600,000 | 28,000,000 | 0.35 |
| 2021 | 54,427,113 1,351,899 | 29.15 | 48.80 | 40.31 | 42.20 | 1,181,600,000 | 28,000,000 | 4.83 |
| Shares, pcs | Percentage of shares and votes, % |
Shares of nominee registered, pcs |
Shares of nominee registered, % |
Votes, pcs | Percentage of votes, % |
|
|---|---|---|---|---|---|---|
| Enterprises | 585,310 | 2.090 | 0 | 0 | 585,310 | 2.090 |
| Financial institutions and insurance companies |
2,470,247 | 8.822 | 962,719 | 3.438 | 3,432,966 | 12.261 |
| Public sector entities | 899,006 | 3.211 | 0 | 0 | 899,006 | 3.211 |
| Households | 22,205,160 | 79.304 | 0 | 0 | 22,205,160 | 79.304 |
| Non-profit organisations | 547,538 | 1.955 | 0 | 0 | 547,538 | 1.955 |
| Foreign holding | 29,563 | 0.106 | 300,457 | 1.073 | 330,020 | 1.179 |
| Total | 26,736,824 | 95.489 | 1,263,176 | 4.511 | 28,000,000 | 100.000 |
| Shares per shareholder | Number of shareholders |
Percentage of shareholders, % |
Shares, total, pcs | Percentage of shares and votes, % |
|---|---|---|---|---|
| 1–100 | 9,929 | 62.399 | 354,736 | 1.267 |
| 101–500 | 4,093 | 25.723 | 1,035,359 | 3.698 |
| 501–1,000 | 957 | 6.014 | 742,181 | 2.651 |
| 1,001–5,000 | 758 | 4.764 | 1,607,226 | 5.740 |
| 5,001–10,000 | 90 | 0.566 | 651,900 | 2.328 |
| 10,001–50,000 | 65 | 0.408 | 1,252,234 | 4.472 |
| 50,001–100,000 | 7 | 0.044 | 467,591 | 1.670 |
| 100,001–500,000 | 7 | 0.044 | 2,150,712 | 7.681 |
| yli 500,000 | 6 | 0.038 | 19,738,061 | 70.493 |
| Total | 15,912 | 100.000 | 28,000,000 | 100.000 |
BY MONTH 2021
| BY MONTH 2021 | WEIGHTED AVERAGE SHARE PRICE |
|---|---|
| (EUR) | |
| 46 | |
| 43 | |
| 40 | |
| 37 | |
| No. | Name | Number of shares | Percentage of shares Percentage of votes | |
|---|---|---|---|---|
| 1 | Vidgrén Juha Einari | 6,207,000 | 22.17 | 22.17 |
| 2 | Vidgrén Jukka Tuomas | 3,764,778 | 13.45 | 13.45 |
| 3 | Vidgrén Janne Ilmari | 3,691,742 | 13.18 | 13.18 |
| 4 | Vidgrén Jarmo Kalle Johannes | 3,684,263 | 13.16 | 13.16 |
| 5 | Nordea Nordic Small Cap Fund | 1,459,755 | 5.21 | 5.21 |
| 6 | Skandinaviska Enskilda Banken Ab (Publ), Helsinki | 930,523 | 3.32 | 3.32 |
| 7 | Ilmarinen Mutual Pension Insurance Company | 420,791 | 1.50 | 1.50 |
| 8 | Varma Mutual Pension Insurance Company | 389,000 | 1.39 | 1.39 |
| 9 | Einari Vidgrén Foundation | 388,000 | 1.39 | 1.39 |
| 10 | Evli Suomi Pienyhtiöt mutual fund | 306,954 | 1.10 | 1.10 |
| 11 | Aktia Capital mutual fund | 218,000 | 0.78 | 0.78 |
| 12 | SEB Finland Small Cap | 215,000 | 0.77 | 0.77 |
| 13 | Citibank Europe Plc | 212,967 | 0.76 | 0.76 |
| 14 | Elo Mutual Pension Insurance Company | 80,000 | 0.29 | 0.29 |
| 15 | Säästöpankki Kotimaa mutual fund | 79,392 | 0.28 | 0.28 |
| 16 | Kirkon Eläkerahasto | 79,000 | 0.28 | 0.28 |
| 17 | Nummela Juho Aleksi | 62,541 | 0.22 | 0.22 |
| 18 | Mandatum Life Insurance Company Limited | 62,017 | 0.22 | 0.22 |
| 19 | Rinta-Jouppi Jarmo Aulis | 53,500 | 0.19 | 0.19 |
| 20 | Randelin Mari | 51,141 | 0.18 | 0.18 |
| 21 | Relander Pär-Gustaf | 48,000 | 0.17 | 0.17 |
| 22 | Vidgrén Kalle Samuel | 40,800 | 0.15 | 0.15 |
| 23 | Vidgrén Henri Eemil | 38,084 | 0.14 | 0.14 |
| 24 | Apotrade Consulting Oy | 36,000 | 0.13 | 0.13 |
| 25 | Clearstream Banking S.A. | 34,612 | 0.12 | 0.12 |
| 26 | Aro Erkki Arvi Juhani | 32,807 | 0.12 | 0.12 |
| 27 | Relander Annette Louise | 32,000 | 0.11 | 0.11 |
| 28 | Pietarinen Oiva Untamo | 31,432 | 0.11 | 0.11 |
| 29 | Outokummum Metalli Oy | 28,771 | 0.10 | 0.10 |
| 30 | Niemi Mutual Fund | 28,000 | 0.10 | 0.10 |
| Other shareholders | 5,293,130 | 18.90 | 18.90 | |
| Total | 28,000,000 | 100.00 | 100.00 |
At year-end 2021, Ponsse Plc had 15,912 shareholders (on 31 December 2020: 15,340).
Members of the Board of Directors, President and CEO, companies under their control and their underage children held a total of 17,415,099 Ponsse Plc shares on 31 December 2021, corresponding to 62.2 per cent of shares and votes in the company.
No such material changes have taken place in the company's financial standing after the end of the financial year that would affect the proposal for dividend distribution. When making its proposal regarding dividends, the Board of Directors has taken into account the impact of distribution of dividends on the Group's solvency as prescribed in Chapter 13, section 2 of the Companies Act.
The parent company's distributable funds total EUR 185,322,440.64, of which the net profit for the period amounted to EUR 46,292,198.39.
The company's Board of Directors will propose to the Annual General Meeting that a dividend of EUR 0.60 per share be paid for 2021. The Board will also propose that the Annual General Meeting will authorise the Board to decide on paying a dividend of at most EUR 0.25 per share at a later date. The dividend distribution totals to at most EUR 23,800,000.00.
If the maximum dividend is distributed, EUR 161,522,440.60 will remain in the parent company's non-restricted equity.
Vieremä, 15 March 2022
| Jarmo Vidgrén | Mammu Kaario | Matti Kylävainio | |
|---|---|---|---|
| Juha Vanhainen | Juha Vidgrén | Janne Vidgrén | Jukka Vidgrén |
President and CEO
A report on the audit carried out has been submitted today.
Helsinki, 15 March 2022
KPMG Oy Ab
Ari Eskelinen
APA
To the Annual General Meeting of Ponsse Plc
We have audited the financial statements of Ponsse Plc (business identity code 0934209-0) for the year ended 31 December 2021. The financial statements comprise the consolidated statement of financial position, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes, including a summary of significant accounting policies, as well as the parent company's balance sheet, profit and loss account, cash flow statement and notes.
Our opinion is consistent with the additional report submitted to the Board of Directors.
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent company and group companies are in compliance with laws and regulations applicable in Finland regarding these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 3.1 to the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
The scope of our audit was influenced by our application of materiality. The materiality is determined based on our professional judgement and is used to determine the nature, timing and extent of our audit procedures and to evaluate the effect of identified misstatements on the financial statements as a whole. The level of materiality we set is based on our assessment of the magnitude of misstatements that, individually or in aggregate, could reasonably be expected to have influence on the economic decisions of the users of the financial statements. We have also taken into account misstatements and/or possible misstatements that in our opinion are material for qualitative reasons for the users of the financial statements.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The significant risks of material misstatement referred to in the EU Regulation No 537/2014 point (c) of Article 10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of whether there was evidence of management bias that represented a risk of material misstatement due to fraud.
The amount of net sales in the financial statements is addressed as a key audit matter, since net sales comprises various revenue streams and a considerable number of transactions.
Machine sales account for the most significant part of the consolidated net sales, 76%, where revenue is recognised at a point in time when control transfers to the customer in accordance with contract terms.
The timing of revenue recognition for machine sales involves risk of revenue being recorded either too early or too late.
(Accounting principles concerning the consolidated financial statements and note 2)
(Accounting principles concerning the consolidated financial statements and note 4.5)
Inventories are measured at the lower of cost and probable net realizable value. The cost of materials and supplies is assigned by using the average cost formula.
Trade-in machines, materials and supplies account for 78% of the total inventory balance amounting to approximately EUR 167 million.
Valuation of trade-in machines, materials and supplies involves judgements made by management for probable net realizable value.
Functionality of the IT systems and internal control plays a major role in ensuring the accuracy of inventory reporting (number and unit price).
This document is an English translation of the Finnish auditor's report. Only the Finnish version of the report is legally binding.
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company's and the group's ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or cease operations, or there is no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company's or the group's internal control.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our auditor's report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication.
We were first appointed as auditors by the Annual General Meeting on 27 May 2020, and our appointment represents a total period of uninterrupted engagement of 2 years.
The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the report of the Board of Directors and the information included in the Annual Report, but does not include the financial statements and our auditor's report thereon. We have obtained the report of the Board of Directors prior to the date of this auditor's report, and the Annual Report is expected to be made available to us after that date. Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility also includes considering whether the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial statements and the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor's report, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.
Ari Eskelinen Authorized Public Accountant, KHT
Ponssentie 22 74200 Vieremä FINLAND Tel. +358 20 768 800 www.ponsse.com
(INFORMATION SYSTEMS) Tiedekatu 6 PO Box 194 60100 Seinäjoki FINLAND Tel. +358 20 760 8111 www.epec.fi
Ponssentie 22 74200 Vieremä FINLAND Tel. +358 20 768 800 www.ponsse.com
Tiedekatu 6 PO Box 194 60100 Seinäjoki FINLAND Tel. +358 20 760 8111 www.epec.fi
Västsura Lisjövägen 40 735 91 Surahammar SWEDEN Tel. +46 220 399 00
Klettavegen 7 2211 Kongsvinger NORWAY Tel. +47 628 888 70
BALTIC AGRO MACHINERY SIA Tiraines iela 15, Riga LATVIA Tel. +371 670 643 00
MACHINERY Molėtų g.13 Didžiosios Riešės k., Vilnius, LT-14262 LITHUANIA Tel. +370 5 247 7393
ZAC Croix Saint Nicolas 14 Rue de Lorraine 54840 Gondreville FRANCE Tel. +33 3 83 65 12 00
4 Annan Business Park Annan Dumfriesshire, DG12 6TZ UNITED KINGDOM Tel. +44 1461 207 510
IRELAND LTD Cappakeel, Emo, Portlaoise, Co. Laois, R32 NN28 IRELAND +353 (0)57 863 3762
Majori u. 16/1. 8372 Cserszegtomaj HUNGARY Tel. +36 83 540 279 www.forestpower.hu
Nový Nemojov 122 54461 Nemojov CZECH REPUBLIC Tel. +420 499 429 677 www.krenekfs.cz
TOIMIL GARCÍA, S.L.
36512 Prado Lalin Pontevedra SPAIN Tel. +34 986 794 044 www.toimilgruas.com
GMBH & CO.KG Landwehrstr. 4 D-97215 Uffenheim GERMANY
Tel. +49 9848 97 9990 www.wahlers-forsttechnik.de
Rua do Brasil, no 27 Apartado 2094 2695-535 S. João da Talha PORTUGAL Tel. +351 21 9946500 www.ascendummaquinas.pt
Str. Axente Sever nr.6 545 300, Reghin ROMANIA Tel. +40 365 450 001
Lucatin 263 976 61 Lucatin SLOVAKIA Tel. +421 4 187 185 www.flexim.sk
INTEREXPORT D.O.O. Potok pri Komendi 121218 Komenda Slovenia Tel. +386 183 44 400
LTDA. Rua Joaquim Nabuco, 115 Vila Nancy, Mogi das Cruzes São Paulo CEP 08735 120 BRAZIL Tel. +55 11 4795 4600
INC. 4400 International Lane P.O. Box 578 Rhinelander Wisconsin 54501 USA Tel. +1 715 369 4833
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258 Drapeau St P.O. Box 2532 Balmoral, N.B. E8E 2W7 CANADA Tel. +1 506 826 2717 www.alpaequipment.com
2921, boul. Wallberg Dolbeau-Mistassini Quebec, G8L 1L6 CANADA Tel. +1 418 276 5831 www.hydromec.ca
SERVICE LTD. 3088 Riverside Drive P.O. Box 2140 Timmins, ON P4N 7X8 CANADA Tel. +1 705 268 7600 www.readyquip.com
LTDA LTC PC B' O'Higgins Ruta 5 Sur Km 410 Chillan Viejo CHILE www.fcventas.cl
Sarmiento 166 Eldorado – Misiones ARGENTINA Tel. +54 3751 41-1442
Av. Juscelino K. de Oliveira, 3545 Cidade Industrial, Curitiba, Paraná CEP 81270 200 BRAZIL Tel.+55 41 3317 1414 www.grupotimber.com.br
Av. Ápio Cardoso, 850 Cincão, Contagem, Minas Gerais CEP 32371 630 BRAZIL Tel. +55 31 3359 6000 www.sotreq.com.br
SELKIRK 217 South Albany Road, Selkirk, NY 12158 USA Tel. +(518) 618-3855 www.kleisequipment.com
3523 US-84 Whigham, GA 39897 USA Tel: +1 229 762 3500 www.knightforestry.net
13711 AL-191 Maplesville, AL 36750 USA Tel: +1 334 366 4661 www.equipmentlinc.com
SOUTH AFRICA
Ponsse street, 4, Ter. southern part of the industrial zone Gorelovo 188508 Lomonosov district RUSSIA Tel. +7 812 777 12 11 [email protected]
(Beihai Ponsse Trading Co. Ltd.) 1 Gangwan Road Hepu Industry Park 536100 Hepu, Beihai Guangxi CHINA Tel. +86 779 720 1872
Room 304, Building 4B, Chuangxin Road 23, Nanning, 530007 Guangxi, China Tel. +86 771 3238166
Voronezhskaja 129 680042 Khabarovsk RUSSIA Tel. +7 4212 35 81 44 www.dmi-dv.com
Industrialnaya 34B Kostroma, 156019 RUSSIA Tel. +7 930 091 29 07 www.ksponsse.ru
Pervomaiskaja 114 Republic of Komi 167000 Syktyvkar RUSSIA Tel. +7 8212 28 84 80 www.lps.komi.ru
Shosse Kosmonavtov 312 614065 Perm RUSSIA Tel. +7 (922) 314 00 01 www.gidroservis.pro
Suuoyarvskoye Shosse 55 Republic of Karelia 185013 Petrozavodsk RUSSIA Tel. +7 8142 72 26 05 www.nordwestkom.ru
Prospect Frunze 17-A 210010 Vitebsk REPUBLIC OF BELARUS Tel. +375 212 36 35 83 www.vitudarnik.by
Preobrazhenskogo, 55b 160026 Vologda RUSSIA tel. +7 800 511 15 15 www.voltrak.ru
628242 Russia Tyumen region, Khanty-Mansi Autonomous Okrug-Yugra, Sovetskii district, Sovetskii, Yuzhnaya Promyshlennaya Zona RUSSIA Tel. +7 922 211 07 07 www.ps-urfo.ru
Michurina 6 662549 Lesosibirsk RUSSIA Tel. +7 39145 4 16 51 www.rem-technika.ru
Sofijskaya St., 6 192236, Saint-Petersburg RUSSIA Tel. +7 812 335 11 10 www.zeppelin.ru
2–1–1 Inaho, Otaru Hokkaido 047–0032 JAPAN Tel. +81 0134 24 1315 www.shingu-shoko.co.jp
9 Suikeriet straat Nelspruit, 1200 SOUTH AFRICA Tel +27 13 753 3615
8 Wallace Avenue Point Cook VIC 3030 Victoria AUSTRALIA Tel. +61 03 9369 8988 www.randalls.com.au
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