Annual Report • Feb 22, 2023
Annual Report
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ANNUAL REPORT
| CONTENTS ………………………………………… 2 | |
|---|---|
| Robit in Brief……………………………………… 4 | |
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| Offices & Manufacturing Units …………………… 5 | |
| Important Events in 2022 ………………………… 6 | |
| Market Overview ………………………………… 8 | |
| CEO's Review ………………………………… |
10 |
| Product Offering ……………………………… | 14 | |
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| Strategy | ……………………………………… | 16 |
| Top Hammer Business ………………………… | 20 |
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| Down the Hole Business ……………………… | 22 |
| Your Partner for a More Sustainable Tomorrow | 28 |
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| Case: | |
| Sustainability Idea Competition Driving The Change | |
| – Robit Cardboard Box Optimization ………… |
31 |
| INVESTORS | |
| Board of Directors……………………………… | 32 |
| Management Team …………………………… | 34 |
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| Information for Shareholders ………………… |
35 |
| ………………38 The Report of the Board of Directors |
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| F I N A N C I A L S TAT E M E N TS | |
| Consolidated Financial Statements……………………52 | |
| Consolidated Statement of Comprehensive Income …54 | |
| Consolidated balance sheet…………………………56 | |
| Consolidated statement of changes in equity ………58 | |
| Consolidated statement of cash flows ………………60 | |
| 1. About the consolidated financial statements | 62 |
| 2. Robit's performance …………………………63 | |
| 3. Acquisitions and intangible assets ……………70 | |
| 4. Capital structure and financing ………………76 | |
| 5. Operating assets and liabilities ………………90 | |
| …………………………………97 6. Other notes |
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| Robit Plc Parent Company Statements …………… 106 | |
| ……………… 110 Notes to the Financial Statements |
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| Definitions of key Financial Figures ……………… 124 | |
ROBIT IN BRIEF COMPANY BUSINESS SUSTAINABILIT Y INVESTORS THE REPOR T OF THE BOARD OF DIREC TORS FINANCIAL STATEMENTS
"Robit invested in Top Hammer production capacity in Finland and South Korea. The expansion includes investments in machine tools and automatization. Matias Eskelinen, production worker (left) and Arto Halonen, CEO inspecting the consistant quality of new buttoning cell at Lempäälä unit."
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ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
Robit is a global expert focused on high-quality drilling consumables for mining and construction markets to help you drill further and faster. Robit strives to be world number one company in drilling consumables. Through our high and proven quality Top Hammer, Down the Hole and Geotechnical products, and our expert services, we deliver saving in drilling costs to our customers. Robit has its own sales and service points in seven countries and an active distributor network through which it sells to more than 100 countries. Robit's manufacturing units are located in Finland, South Korea, Australia and the UK. Robit's shares are listed on Nasdaq Helsinki Ltd.
The Top Hammer drilling method is primarily used in mining, earthworks, underground quarrying and the quarrying of rock material.
The Top Hammer business comprises rock drilling consumables as well as digital products and services related to the drill hole measurement during drilling activity.
Down the Hole drilling is used in earthworks, well drilling, i.e. the drilling of holes for water wells and geothermal energy wells, mining production drilling and piling.
The Down the Hole business comprises the Down the Hole consumables and services used in the segments listed above.
TOP HAMMER 66.8 MEUR
DOWN THE HOLE 45.1 MEUR
COUNTRIES
COUNTRIES COUNTRIES
ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
Robit took part in the 48th Annual Conference on Explosives & Blasting Technique in Las Vegas, USA. Nearly 1,600 blasters, manufacturers, government officials and industry leaders joined the world's largest conference on explosives engineering.
Robit launched the new superior casing systems series for energy and water well drilling – Robit® DTH Nova series with controlled flushing properties, optimized face design and robust structure.
Robit took part in the Maxpo 2022 exhibition. The fair is the leading construction business event in Finland. Maxpo attracted over 300 exhibitors and 10,000 visitors from the field.
Robit took part in the MineXchange 2022 SME Annual Conference & Expo – an event for the mining, metallurgy and exploration industry in Salt Lake City, USA.
Robit took part in the Expomina Peru 2022 in Lima, Peru. The fair is one of the most important mining exhibitions in Latin America.
Robit's consumables were introduced for Cimertex's customers at a seminar held in Portugal. The seminar attracted drilling professionals to Coimbra, Portugal. Robit presented its competitive range of consumables for rock and ground drilling applications.
Robit took part in the World Tunnel Congress 2022 in Copenhagen, Denmark. The Congress focused on underground solutions for a world undergoing change. Robit introduced its patented Robit® RoX Casing Systems series for forepoling and fiberglass casings for ultra-long facebolts as well as the new Robit® Top Hammer Rbit™ button bit series.
Robit launched the new Rbit™ Button Bit Series for drifting and tunneling. The company supplemented the RBit series with bits ranging from 32 mm (1¼") up to 57 mm (2¼"), which fulfilled the needs of smaller diameters.
Robit Finland Oy received a diploma "Our Best Suppliers 2021" from Agnico Eagle Finland. Robit was acknowledged for its customer-oriented work and safety matters.
"Together we delight customers" theme in South Korea. Once again, everyone from around the world made the event a great example of shared success.
exhibition in Munich, Germany, one of the most important construction fairs in the world.
Veljekset Toivanen Oy signed a long-term cooperation agreement to supply drilling consumables to the Sotkamo Silver mine in Kainuu, Finland. Veljekset Toivanen is the prime contractor at the Sotkamo Silver mine based on a three-year-agreement with two option years. Robit also supplies its consumables to Endomines' Pampalo open-pit gold mine in Ilomantsi, Finland for the opening of the mine.
Drilling consumables manufactured and supplied by Robit are used for the needs of the mining, quarrying and forepoling, underground construction and well drilling industries.
Market demand was at a good level in 2022, but the Russian war of aggression in Ukraine had an impact on Robit's business environment. Robit ran down the operations of its Russian company by the end of the year. The war also accelerated cost inflation, which was also reflected in Robit's cost development, and delayed the progress of some construction projects. In the earthworks segment, the uncertain operating environment increased the uncertainty of demand, especially in Europe. Demand and prospects in the mining segment and well drilling remained at a good level.
Robit's present market share, competitive products, extensive geographical coverage and the steady demand typical of consumables ensure good opportunities for Robit to grow by gaining market share from other operators in the industry. In addition, the company expects the overall market for drilling consumables to grow beyond economic cycles by approximately 3–5% per year.
Demand in the Americas clearly strengthened compared to the previous year. Sales in the region grew well in both North and South America. Growth was strong in both the Top Hammer and Down the Hole businesses.
Robit's strong growth in the Americas region was mainly driven by the realization of growth projects in the mining segment. Sales growth was more moderate in the construction segment. The market situation in the Americas region was good in 2022, and the company is well positioned to continue growing in the region.
The sales area is split into four main regions: the Nordics, Central Europe, Middle East, and Africa.
In the Nordics, the overall demand remained at a good level. The mining market grew, which increased Robit's Top Hammer business. In Central Europe, infrastructure construction remained at a good level.
In the Middle East, some significant infrastructure projects started, for example in Saudi Arabia supporting sales development. In Africa, mining demand continued at a strong level. As an example, Robit won a new chrome mine supply contract in South Africa. A number of product trials are under way in Africa showing good results and already providing a good opportunity for increased business, particularly in West Africa.
The war in Ukraine drastically changed the business environment in the East region. During 2022, the company delivered its pre-war export orders and ran down its operations in Russia by the end of 2022. Focus shifted to the other countries in the East region and results were seen in, for example, the Kazakhstan market. The focus in the East area is to grow the mining segment, which offers good market opportunities to compensate for the sales lost from the Russian market.
In Asia, Robit focuses on the construction industry, and more specifically on tunneling, as well as on mining. Most markets are Top Hammer-dominated. The company witnessed good growth in the region as infrastructure activity was at a good level.
Robit continued to supply a gold mine in Laos through its Vietnamese distributor for a second year, and significantly increased its market share in Vietnam.
Asia is also providing good growth opportunities for 2023.
Robit's business in the Australasia region is mainly related to the mining customer segment. The demand situation in the market was good, although a slight decrease was seen in exploratory drilling toward the end of the year.
In late 2022, Robit significantly strengthened its sales organization. Growth investments enabled the company to launch several customer tests in the second half of the year. Increasing market share in the Australian market is one of the company's key goals for 2023.
We set a target to be the world's leading supplier of drilling consumables."
Arto Halonen CEO
ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
ROBIT IN BRIEF COMPANY BUSINESS SUSTAINABILIT Y INVESTORS THE REPOR T OF THE BOARD OF DIREC TORS FINANCIAL STATEMENTS
Robit's growth and profitability continued to develop positively in 2022, and we reached records in both net sales and EBITDA. The most significant event in the operating environment were the wide-ranging impacts of the war of aggression initiated by Russia. As a result, we ran down the operations of Robit's Russian company during the year. The cost inflation accelerated by the war also had a significant impact on the business environment during the year. In spite of these challenges, we succeeded in our measures and continued the company's positive development in terms of both growth and profitability.
We set improving profitability, profitable growth and strengthening cash flow as our key targets for 2022. We succeeded in all three areas. The impact of the increase in the cost of raw materials caused by the war in Ukraine started to materialize during the year, but the impact was compensated for by the pricing measures taken. The effects of the competitive tendering of sea freight, the general decrease in sea freight rates and the logistics optimization measures carried out by the company were reflected in a reduction in freight costs. Procurement savings projects also progressed as planned.
We achieved growth in the most of the markets. Growth was strongest in the Americas region. Also Asia, EMEA and East region grew. During the year, growth continued strongly in the Top Hammer business unit, and we completed the 2021–2022 investment program to increase the Top Hammer capacity. In the Down the Hole business unit, we failed to meet our growth target. We restructured the business unit in the last quarter to accelerate its growth. The company's ability to deliver and capacity enable continued growth in both the Top Hammer and Down the Hole business units.
The net cash flow from operations was clearly strengthened during the year. The positive development of cash flow was supported by improved profitability and the management of working capital. In the last quarter of the year, we launched an extensive project to improve the management of working capital, which further strengthened the positive development.
Robit's responsibility work focuses on four key themes: responsible partnerships, reducing carbon dioxide emissions in the value chain, a happy and prosperous work community and efficiency throughout the product life cycle. Systematic work to achieve our targets progressed as planned. The satisfaction of our personnel strengthened and we succeeded in, among other things, reducing the CO2 emission intensity 26 percent compared to the previous year.
During the year, we launched new products on the market that enable efficiency throughout the product life cycle. We launched the Robit Rbit button bit series for drifting and tunnelling in the third quarter of the year. We launched the Robit Rbit button bit series for drifting and tunnelling in the third quarter of the year. With the Rbit series, we focus on helping our customers reduce the total cost of drilling with a higher penetration rate and lower cost per meter drilled.
At the end of the year, we sharpened our strategy and set a target to be the world's leading supplier of drilling consumables. The achievement of the target is steered by our long-term financial targets of 13% EBITDA and 15% annual growth, as well as our responsibility targets.
For 2023, we have raised four key development projects to implement the strategy: accelerating growth through the network of distributors, strengthening expertise in the drilling consumables business, strengthening Robit's position as the market leader in drill bit operations through research and product development projects, and improving availability and working capital management through the Fit for Service program.
ROBIT IN BRIEF COMPANY BUSINESS SUSTAINABILIT Y INVESTORS THE REPORT OF THE BOARD OF DIREC TORS FINANCIAL STATEMENTS
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ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
Global segment size estimate: 800–1,000 MEUR.
Mining industry development has been positive. Production volumes continue to increase and mines continue to make productivity improvements thus investing in modern technology and innovations.
Global segment size estimate: 600–800 MEUR.
In foundation works, the drill piling method is gaining market share globally. Infrastructure projects are becoming larger and players becoming bigger as global contractors are increasing their influence on the global market. More and more underground spaces are used for storage or transportation purposes increasing the need for drill and blast equipment.
Global segment size estimate: 200–300 MEUR.
Global environmental changes and technological advances drives promising growth. Focus increasingly shifting from traditional Nordic markets to warmer areas (geothermal cooling) and water wells.
• DTH-hammers, DTH bits and locked casing systems for tough ground conditions.
Global segment size estimate: 300–400 MEUR.
Further urbanization and infrastructure development especially in the emerging markets will continue to drive the need for new tunnels and underground construction.
• Full range of Top Hammer drill strings for face drilling and forepoling as well as for bolting and roof support.
The predictions and opinions concerning segment size and future growth shown above in this report are the views of Robit's management based on current assumptions. While these assumptions on future events are believed to be founded on thorough analysis and the best available information, they should be considered as uncertain forecasts that cannot be guaranteed to occur as predicted. In consequence, actual growth trajectories may vary considerably from what has been predicted due to unforeseen events in the economic, market related, competitive, legal and international trade environment.
ROBIT IN BRIEF COMPANY BUSINESS SUSTAINABILIT Y INVESTORS THE REPORT OF THE BOARD OF DIREC TORS FINANCIAL STATEMENTS
Robit reviewed its strategy and business concept in late 2022. The core fundaments of the strategy remain, but we are sharpening the focus on certain initiatives.
In short, Robit is an expert focused on high-quality drilling consumables for mining and construction markets globally. We strive to be a leading drilling consumables company. This means:
There are four key pillars to achieve our vision:
1. Accelerating growth through distributors. To accelerate growth and build sales coverage, we work with our distributor partners, which are key members of the Robit community. In four key markets, we sell direct to customers. Direct sales markets set the pace for profitable growth.
Our strategy builds on being your partner for a more sustainable tomorrow. The industries we work in are key enablers for achieving a greener tomorrow. Energy shifts need metals. Geothermal is a sustainable energy source. Many infrastructure investments go to transport or urban projects that lower environmental impact. Our key contributions are reducing CO2 emissions in our value chain, building sustainable partnerships, ensuring a healthy and happy workplace, and increasing efficiency throughout the product lifecycle.
UNDERGROUND & SURFACE MINING Lower mineral content; more drilling needed per mineral tonne
CONSTRUCTION Urbanization, underground construction & infrastructure investments grow
GEOTECHNICAL More overburden and supporting construction needed for infrastructure buildings
WELL DRILLING Geoenergy is increasing
In 2021 net sales: 100.8 M€ EBITDA 7.6 M€ / 7.5%
ab. 5% of the global drilling consumables market
2 000 M€ Global Drilling Consumables Market (excl. China & India)
No.1 drilling consumables company 10% of the global drilling consumables market
EXCELLENT PRICE-QUALITY-PERFORMANCE-RATIO WITH CONSISTENT QUALITY
MARKET'S BEST BUTTON BITS MARKET'S BEST SERVICE LEVEL
DRILLING CONSUMABLES ONLY Widest offering in Top Hammer & Down the Hole High focus on bits – best in the market
GLOBAL COVERAGE & AVAILABILITY Focus on serving distributor network (+100 pcs) Own sales teams in 4 mining countries
EFFICIENT MANUFACTURING IN OWN FACTORIES Price & cost-competitiveness secured by high volume, automation & robotization
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ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
Top Hammer (TH) products are mainly used in mining, quarrying, construction, and tunnelling. 2022 was a good year for Top Hammer, despite the unfortunate effects of the war in Ukraine. Growth in the Top Hammer business reached 18.7 percent compared to 2021.
During the year, Robit launched the revolutionary Rbit series for drifting and tunneling. The Rbit series has now been fully deployed in the Robit product range. This will keep the competitive advantage as Robit will be able to serve its customers even better, since they are always seeking improvements in drilling, faster drilling and a longer life cycle for the products. Customers are now able to benefit from the key advantages of the Rbit in every diameter.
Robit also successfully ramped up both factories with additional capacity to match Robit's expectations for growth. In 2023, Robit is seeking to increase its market share in its key markets. Robit finished the year with a good opportunity funnel and many ongoing customer tests.
Robit's range is now very competitive, since the needed options in bit designs keep winning new customers. Robit also launched an integrated, easy-to-read Top Hammer catalogue. The new catalogue is functional and highlights the moving bits, which makes it easy for customers to select the best option for their needs.
The mining segment continues to provide great growth opportunities for Robit's Top Hammer business. The renewed range of products and excellent delivery capability provide a good foundation to capture these opportunities.
During the year 2022, Robit launched the revolutionary Rbit series for drifting and tunneling."
Jorge Leal VP, Top Hammer
The Top Hammer business comprises rock drilling consumables and services as well as Casing Systems consumables for forepoling.
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ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
Robit's Down the Hole business (DTH) accounts for 40.3 percent of the company's net sales. The company's extensive product range covers all aspects of ground drilling. The Down the Hole business is divided into two areas: DTH products serving the production drilling of the mining and excavation segment as well as well drilling and Geotechnical products aimed at the earthworks segment.
Robit expanded its customer base in the mining and excavation segment, especially in South America and Africa. Several customer tests were also carried out in other market areas, providing a basis for future growth of the business.
Customer demand for well drilling was strong in 2022, and increased energy costs strengthened the demand for geothermal wells. Robit's sales grew well in this customer segment, especially in the Nordic countries.
The company's strategic goal has been to increase its market share in the well drilling segment where the demand is steady. Robit has succeeded in this goal. Over the past two years, drilling companies have invested heavily in new drilling equipment, which increases the demand for Robit's products. The most significant product launch of the year was the Nova ring bits, which were well received by drilling contractors.
Mining, excavation and well drilling segment comprises rock drilling Down the Hole consumables and casing systems for well drilling.
Robit expanded its customer base in the mining and excavation segment, especially in South America and Africa."
Perttu Aho VP, Down the Hole
Our strategic goal is to grow in this segment with the help of a new, more focused business model in our key markets in the Nordic countries and North America."
Ville Pohja VP, Geotechnical
The past year was characterised by significant changes in the operating environment, as uncertainty in construction increased with the outbreak of the war in Ukraine. We continued to receive significant project orders, but in the Nordic countries the market lagged behind the previous peak years in terms of total volumes. Our strategic goal is to grow in this segment with the help of a new, more focused business model in our key markets in the Nordic countries and North America.
In the mining and excavation segment, the company's focus will be on strengthening the distribution channel and the competitiveness of the product portfolio. The mining industry's demand is expected to remain good, and we will focus on increasing sales especially in this customer segment. High energy prices and national emission targets support the demand for geothermal drilling.
Demand in the Geotechnical segment is marked by the launch of infrastructure projects, as house construction has clearly slowed, especially in Europe.
At the end of 2022 Robit launched new brand colors for Casing Systems. Pilot bits will be painted white and ring and wing bits black.
ROBIT IN BRIEF COMPANY BUSINESS SUSTAINABILIT Y INVESTORS THE REPORT OF THE BOARD OF DIREC TORS FINANCIAL STATEMENTS
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ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
Sustainability has been recognized as a theme for which Robit wants to be known in the industry and to make progress. Robit´s sustainability work is driven by its sustainability vision defined in 2021. During 2022, Robit continued to actively communicate about sustainability in the organization and made progress in its chosen focus areas.
Robit is developing its sustainability and operational performance both upstream and downstream in its value chain through longterm partnerships. Robit works with partners who share similar principles and targets when it comes to the environment, social responsibility, and governance.
Improving customer operations and complying with the Code of Conduct are recognized as being especially important in the upstream processes of the Robit value chain. The commitment of Robit distributors to keeping these areas well managed plays a key role in making progress.
Robit suppliers have a significant role in the environmental effects caused by the operations of the company. A significant amount of energy is needed in raw material production and transportation.
Cooperation is carried out with suppliers to reduce the loss of materials in the production phases. Robit suppliers are asked to commit to the principles of Robit Sustainable Supply Chain Policy, and sustainability topics are included in the audits of suppliers and subcontractors.
| KPI | Target | Result 2022 | 2021 |
|---|---|---|---|
| Our target is to have a minimum of 90% of our supplier spend coming from suppliers who have committed to Robit's supply chain policy. |
90% | 92% | 79% |
| Our target is to have a minimum of 90% of our distributors committed to Robit's ESG principles, in terms of sales volume. |
90% | 82% | 38% |
Robit has identified CO2 reduction as a key focus area of sustainability. There are possibilities to reduce CO2 emissions by making changes in the company´s own operations. However, it is also recognized that there is potential for improvements by influencing indirect effects and external stakeholders.
CO2 emissions measured in the company's KPIs are emissions caused by Robit´s own operations. Robit's 2020 carbon footprint (Scope 1 and 2) calculated according to Greenhouse Gas Protocol (GHG protocol) Corporate Standard was 3,383 tons CO2e corresponding to 36.9 tons CO2e per million euros of net sales. To reduce emissions, the company has decided, for instance, to increase the share of green energy used in its factories.
The share of green energy has been increased at Robit's Australian factory and had a positive effect on the figures in 2022. As an action to reduce energy consumption, a change to LED lighting has been implemented at many Robit locations.
| KPI | Target | Result 2022 | 2021 |
|---|---|---|---|
| Robit is committed in reducing its scope 1 and 2 CO2 intensity by 50% by 2030 from the baseline year 2020. |
- 50% | - 26% | - 0.5% |
Robit strives to be a desired employer and to offer a happy and healthy workplace for its employees. "We respect everybody" is one of the three Robit values.
Robit conducts an annual survey of its personnel to measure their well-being. The survey of 2022 showed that people were happy that the company supports employee well-being. Another very positive thing was that people were confident that the results of the survey would be utilized in improving everyday operations. Aspects that were found to be in need of development in the previous survey have been improved. Co-operation between the teams and better access to information were improved. Room for improvement was found in the active communication of issues related to strategy and future plans.
Robit continually works to improve safety. There is a Robit HSE team in place, which coordinates safety activities within the Group. Lost Time Incident Frequency (LTIF) developed slightly negatively in the review period and further measures to improve safety were added. The importance of proactive measures to improve safety were highlighted in communication and a new easy-to-use tool was deployed for the purpose of reporting safety observations.
| KPI | Target | Result 2022 | 2021 |
|---|---|---|---|
| Our target is zero lost time incidents; the followed indicator is LTIF. |
0 | 6.4 | 2.1 |
| We continuously improve the engagement of our people; the monitored indicator is the PeoplePower® index. |
>70 | 70.1 | 68 |
Material efficiency in product design and production, and the pursuit of a long product lifecycle in customer operations are seen as important factors in Robit´s sustainability work.
Finding a product best suitable for the work and using it efficiently are having a significant effect on the length of the product lifecycle and the amount of energy used in drilling. Robit personnel and Robit distributors are constantly trained to guide customers towards success. The training consists of product characteristics and guiding the customers in how to use them efficiently. Training includes product characteristics and efficient ways to use them. Especially important for efficiency is the optimization of Robit's customer drilling operations. Energy consumption can be reduced, and drilling efficiency increased significantly by optimizing the ways to use our products. Decisions made in the product design phase play in an important role in relation to drilling efficiency.
| KPI | Target Result 2022 |
2021 | |
|---|---|---|---|
| Robit is committed to providing at least 1,000 hours per year of consultative sales training to its own sales and technical people and those of its distributors. |
1000 h | 714 h | 921 h |
| To improve material efficiency in internal operations, Robit has set a target of achieving a waste recovery ratio of over 90% at Robit factory locations. |
90% | 89.9% | 87% |
* Calculated based on supplier spend ** Calculated based on sales volume
In 2021, Robit arranged a sustainability idea competition for its personnel. One of the best ideas was Robit cardboard box optimization. Based on this idea, the button bit boxes were improved in 2022.
The change significantly reduces the space needed for the storage and transportation of the products. Cost savings were also achieved in box purchases.
Change in practice
Chairman of the Board since 2018, previously in the Robit Board in 1998–2018. Non-independent of the company and its major shareholders. Major shareholder in Five Alliance Oy, which holds 27.06 percent of the company's shares.
Share ownership: 31 December 2022 35 828 shares
ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
Shareholders' Nomination Committee, Audit Committee and Working Committee
Robit Plc, Chairman of the Board Key positions of trust:
Five Alliance Oy (Chair of the Board), Kangasalan Välkkyvä Vesijärvi ry (Member of the Board), Tampere University of Applied Sciences Foundation (Member of the Board)
Vice Chair of the Board, Member of the Board since 2020. Independent of the company and its major shareholders.
Share ownership: 31 December 2022 11 007 shares
Committees: Audit Committee and Personnel Committee
Main occupation: Professional board member
Componenta Corporation (Vice Chair of the Board), Tammer Brands Oy (Chair of the Board), Kojamo Plc (Member of the Board), Image Wear Oy (Member of the Board), HK Scan Corporation (Member of the Board), Merus Power Plc (Member of the Board), Kemppi Oy (Member of the Board)
Member of the Board since April 2020. Independent of the company and its major shareholders.
Share ownership: 31 December 2022 31 007 shares
Committees: Working Committee Main occupation:
Professional board member
Pohjola Rakennus Oy (Member of the Board)
Member of the Board since December 2018. Independent of the company and its major shareholders.
Share ownership: 31 December 2022 17 865 shares
Committees: Personnel committee Main occupation:
Vincit Plc, Chair of the Board as well as digital-age entrepreneur and investor
Cloudberry Capital Oy (Member of the Board), Tylko S.A. (Member of the Board), Koivukuitu Oy (Chair of the Board), Pasakuitu Oy (Member of the Board), SoilFood Oy (Member of the Board), OffiStore Oy (Chair of the Board), Vincit Solutions Oy (Chair of the Board), Vincit Plc (Chair of the Board), Amor & Labor Oy (Member of the Board), Happeo Ltd. (Chair of the Board), Integrata Oy (Member of the Board)
Member of the Board since March 2022. Independent of the company and its major shareholders.
Share ownership: 31 December 2022 9 781 shares
Committees: Audit Committee and Personnel Committee
Main occupation: Professional board member
Sotkamo Silver Plc (Chair of the Board), Turku One Hour Train Ltd (Vice Chair of the Board), Neova Group (Member of the Board)
Markku Teräsvasara, b. 1965, Civil Engineer
Member of the Board since March 2022. Independent of the company and its major shareholders.
Share ownership: 31 December 2022 4 781 shares
Committees: Working Committee Main occupation:
Metso Outotec Corporation, Deputy CEO and President of the Minerals business area
In addition, a personnel representative elected by the personnel attends the board meetings of Robit Plc. The personnel representative promotes communication and cooperation between the company's Board of Directors and personnel, and also contributes personnel perspective to board work. The personnel representative is not a member of the Board of Directors.
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ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
CEO Employed by the company since March 2020 Share ownership: 31 December 2022 24 493 shares
Robit Plc 2020–2022 (CFO), Metso Minerals Inc. 2018–2020 (Vice President, Crushers), Metso Inc. 2017 (Vice President, Strategy and Business Development), Metso Minerals Inc. 2015–2016 (Vice President, Global Sales & Marketing)
VP Down the Hole Employed by the company since February 2020 Share ownership: 31 December 2022 2 500 shares
Robit Oyj 2020–2022 (General Manager, Halco Business), Entrepreneur 2007–2019 (mechanical engineering industry and contracting business), Kospa Oy 2006–2008 (Managing Director)
VP Global Sales Employed by the company since December
2020 Share ownership: 31 December 2022 10 000 shares
HMD Mining 2018–2020 (Managing Partner), Atlas Copco Central Asia LLC 2014–2017 (Regional General Director), Atlas Copco Ghana Ltd. 2006–2014 (Managing Director)
VP Top Hammer
Employed by the company since July 2011 Share ownership: 31 December 2022 0 shares
Robit Plc 2021–2020 (Director, Global Sales, Finland), Robit Plc 2019–2018 (Head of Offering & Product Manager Top Hammer, Finland), Robit SAC, Peru 2018–2015 (General Manager & Sales Director)
Employed by the company since January 2020 Share ownership: 31 December 2022 10 550 shares
Nokian Tyres plc 2016–2020 (Group Financial Manager), Deloitte & Touche Oy 2012–2016 (Audit Associate)
VP Geotechnical Employed by the company since February 2015 Share ownership: 31 December 2022 5 000 shares
Robit Plc 2018–2020 (Director, Piling Business), Robit Plc 2017–2018 (Global Product Manager), Robit Plc 2015–2017 (Sales Manager)
Jaana Rinne, b. 1962, M.Sc. (Econ.) HR Director, Employed by the company since September 2017
Share ownership: 31 December 2022 14 500 shares
Pöyry Plc 2013–2016 (Vice President, Human Resources), Konecranes Plc 2007–2013 (Vice President, Human Resources), Konecranes 2004–2007 (HR Director, BA Service)
The Annual General Meeting of Robit Plc. will be held on Wednesday, 15 March, 2023 at 2 p.m. in Tampere Hall, Yliopistonkatu 55, 33100 Tampere, Finland. The reception of persons registered will commence at 1.30 p.m.
The Annual General Meeting may be attended by shareholders who on the record date of the AGM, March 3, 2023 are registered in the shareholder's register, held by Euroclear Finland. A shareholder whose shares are entered into their personal Finnish book entry account is registered in the company's register of shareholders.
A shareholder who wishes to attend the Annual General Meeting must register with the company by 10.00 a.m. on 6 March 2023.
You can register for the Annual General Meeting:
Registrations must be made before the end of the registration period.
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.02 per share be distributed for the 2022 financial period.
In 2023, Robit Plc will publish its financial statement release, halfyear financial report and financial reviews for three and nine months as follows:
| 20 February 2023 Financial statements release for the financial | |
|---|---|
| year that ended on 31 December 2022 | |
| 28 April 2023 | Financial review for January–March 2023 |
| 1 August 2023 | Half-year financial report for January–June 2023 |
| 23 October 2023 | Financial review for January–September 2023 |
The company publishes its financial reports and stock exchange releases in Finnish and English. The releases will be available on the company's website www.robitgroup.com after publication.
A press conference for analysts and the media will be held on the publication date of the financial statements and the half-year financial report at a date and time to be announced separately.
Robit observes a silent period of 30 days prior to the publication of the financial statements release and financial reviews. During this period, the company does not comment on the company's financial position or future prospects or meet representatives of the capital market or financial media.
In the event of change of address, Robit shareholders are asked to notify the bank at which they have their book entry account.
Violetta Silver, IR and Communications Manager Tel. +358 (0)3 3140 3400 E-mail: [email protected]
Visit address: Robit Plc Vikkiniityntie 9 33880 Lempäälä, Finland
37
| Key financials | Q4 2022 | Q4 2021 | Change% | 2022 | 2021 | Change% |
|---|---|---|---|---|---|---|
| Net sales, EUR 1,000 | 26,210 | 26,285 | -0.3 % | 111,962 | 100,755 | 11.1 % |
| EBITDA*, EUR 1,000 | 379 | 1,650 | -77.0 % | 8,851 | 7,595 | 16.5 % |
| EBITDA, % of net sales | 1.4 % | 6.3 % | 7.9 % | 7.5 % | ||
| EBITA, EUR 1,000 | -822 | 543 | -251.6 % | 3,959 | 2,940 | 34.7 % |
| EBITA, % of sales | -3.1 % | 2.1 % | 3.5 % | 2.9 % | ||
| EBIT, EUR 1,000 | -1,039 | 327 | -418.1 % | 3,071 | 2,080 | 47.6 % |
| EBIT, % of sales | -4.0 % | 1.2 % | 2.7 % | 2.1 % | ||
| Result for the period, EUR 1,000 | -2,166 | -152 | -1,326.0 % | 885 | 886 | -0.1 % |
| Result for the period, % of sales | -8.3 % | -0.6 % | 0.8 % | 0.9 % | ||
| Earnings per share (EPS) | -0,09 | 0.00 | -7,845.7 % | 0,04 | 0.04 | -2.9 % |
| Return on equity (ROE), %** | 1.6 % | 1.8 % | ||||
| Return on capital employed (ROCE), %** | 3.5 % | 2.5 % |
*No items affecting comparability Q1-Q4/2022 or Q1-Q4/2021.
The Board of Directors proposes to the Annual General Meeting that the parent company's profit for the financial year ended on 31 December 2022, EUR 1,478,741.96, be transferred to retained earnings. The Board of Directors proposes to the Annual General Meeting that the parent company's profit for the financial year ended on 31 December 2022, EUR 1,478,741.96, be transferred to retained earnings.
The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.02 per share be distributed for the 2022 financial period. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.02 per share be distributed for the 2022 financial period.
Robit expects the global mining industry demand to remain at the current level of the end of 2022, taking into account identified risk factors. The company has identified global factors such as the war in Ukraine, cost inflation and a potential global decline in economic trends. Robit expects the global mining industry demand to remain at the current level of the end of 2022, taking into account identified risk factors. The company has identified global factors such as the war in Ukraine, cost inflation and a potential global decline in economic trends.
Robit discerns construction industry demand to remain good in the company's key market area of North America but to decline in Europe. The demand is supported by the substantial construction industry funding that has already been decided. The general deterioration of the economic outlook and high-cost inflation may cause construction projects to be postponed. Robit discerns construction industry demand to remain good in the company's key market area of North America but to decline in Europe. The demand is supported by the substantial construction industry funding that has already been decided. The general deterioration of the economic outlook and high-cost inflation may
Robit estimates that net sales and comparable EBITDA profitability in euros in 2023 remains unchanged or increases slightly compared to 2022 assuming that there are no significant changes in the exchange rates from the level at the end of 2022.
In the last quarter of the year, net sales remained at the level of corresponding period. Without Russia, net sales increased by 3.4%. EBITDA for the quarter was 1.4% of net sales. Profitability was encumbered by the costs incurred from ramping down the Russian company, the currency exchange rates and the increased costs. Orders received totalled EUR 23.0 million and dropped by 23.4% from the strong reference period. Without Russia, the decline in orders was 14.6%. The low level of orders received in the last quarter will reflect in the development of net sales in early 2023.
Robit's growth and profitability continued to develop positively in 2022, and we reached records in both net sales and EBITDA. Net sales in 2022 grew by 11.1% to EUR 112.0 million. EBITDA improved to 7.9% of net sales. Orders received totalled EUR 105.2 million and dropped by 0.5% from the strong reference period. Without Russia, orders increased by 2.9%.
The most significant event in the operating environment was the war of aggression initiated by Russia and its wide-ranging impacts. As a result, we ran down the operations of Robit's Russian company during the year. The cost inflation accelerated by the war also had a significant impact on the business environment during the year. Despite these challenges, we succeeded in our measures and continued the company's positive development in terms of both growth and profitability.
We set improving profitability, profitable growth and strengthening cash flow as our key goals for 2022. We succeeded in all three areas. The impact of the increase in the cost of raw materials caused by the war in Ukraine started to materialise during the year, but the impact was compensated for by the pricing measures taken. The effects of the competitive tendering of sea freight, the general decrease in sea freight rates and the logistics optimisation measures carried out by the company were reflected in a reduction in freight costs. Procurement savings projects also progressed as planned.
We achieved growth in most markets. Growth was strongest in the Americas area. Growth also took place in the Asia, EMEA and East areas. During the year, growth continued strongly in the Top Hammer business unit, and we completed the 2021–2022 investment programme to increase the Top Hammer capacity. In the Down the Hole business unit, we failed to meet our growth target. We restructured the business unit in the last quarter to accelerate its growth. The company's ability to deliver and capacity enable continued growth in both the Top Hammer and Down the Hole business units.
The net cash flow from operations was clearly strengthened during the year and improved approximately EUR 10 million. The positive development of cash flow was supported by improved profitability and the management of working capital.
Robit's responsibility work focuses on four key themes: responsible partnerships, reducing carbon dioxide emissions in the value chain, a happy and prosperous work community and efficiency throughout the product life cycle. Systematic work to achieve our goals progressed as planned. The satisfaction of our personnel strengthened, and we succeeded in, among other things, reducing the CO2 emission intensity significantly.
During the year, we launched new products on the market that enable efficiency throughout the product life cycle. We launched the Robit Rbit button bit series for drifting and tunnelling in the third quarter of the year. With the Rbit series, we focus on helping our customers reduce the total cost of drilling with a higher penetration rate and lower cost per metre drilled.
At the end of the year, we sharpened our strategy and set a goal to be the world's leading supplier focused on drilling consumables. The achievement of the goal is steered by our long-term financial targets of 13% EBITDA and 15% annual growth, as well as our responsibility goals.
For 2023, we have raised four key development projects to implement the strategy: accelerating growth through the network of distributors, strengthening expertise in the drilling consumables business, strengthening Robit's position as the market leader in drill bit operations through research and product development projects, and improving availability and working capital management through the Fit for Service program.
Lost Time Incident Frequency (LTIF) developed negatively in the review period, and further measures to improve safety were added. Our factories are constantly working to increase safety awareness, and a new easy-to-use tool was introduced for the purpose of reporting safety observations. With regard to emission intensity, clear improvement has been achieved and, in terms of a responsible and sustainable delivery chain, we were able to reach our goals. improve safety were added. Our factories are constantly working to increase safety awareness, and a new easy-to-use tool was introduced for the purpose of reporting safety observations. With regard to emission intensity, clear improvement has been achieved and, in terms of a responsible and sustainable delivery chain, we were able to reach our goals. Lost Time Incident Frequency (LTIF) developed negatively in the review period, and further measures to improve safety were added. Our factories are constantly working to increase safety awareness, and a new easy-to-use tool was introduced for the purpose of reporting safety observations. With regard to emission intensity, clear improvement has been achieved and, in terms of a responsible and sustainable delivery chain, we were able to reach our goals. easy-to-use tool was introduced for the purpose of reporting safety observations. With regard to emission intensity, clear improvement has been achieved and, in terms of a responsible and sustainable delivery chain, we were able to reach our goals. Consultative
| Emission intensity Emission |
Waste | sales hours per Consultative year Consultative sales hours per |
LTIF | Sustainable suppliers Sustainable |
Sustainable distributors Sustainable |
|
|---|---|---|---|---|---|---|
| 12/2022 | Emission -26.0 % intensity |
90 % Waste |
sales hours per 714 h year |
6.4 LTIF |
Sustainable 92 % suppliers |
Sustainable 82 % distributors |
| 12/2021 12/2022 12/2022 |
intensity -0.5 % -26.0 % -26.0 % |
Waste 87 % 90 % 90 % |
year 921 h 714 h 714 h |
LTIF 2.1 6.4 6.4 |
suppliers 79 % 92 % 92 % |
distributors 38 % 82 % 82 % |
| Target 12/2021 12/2021 |
-50.0 % -0.5 % -0.5 % |
>90 % 87 % 87 % |
>1000 h 921 h 921 h |
0.0 2.1 2.1 |
>90 % 79 % 79 % |
>90 % 38 % 38 % |
| Target Target |
-50.0 % -50.0 % |
>90 % >90 % |
>1000 h >1000 h |
0.0 0.0 |
>90 % >90 % |
>90 % >90 % |
| NET SALES |
| Top Hammer | Q4 2022 | Q4 2021 | Change% | 66,834 | 56,287 | Change% |
|---|---|---|---|---|---|---|
| EUR thousand | 16,748 | 15,910 | 5.3 % | 2022 | 2021 | 18.7 % |
| EUR thousand | Q4 2022 | Q4 2021 | Change% | 2022 | 2021 | Change% |
| Down the Hole | 9,462 | 10,375 | -8.8 % | 45,128 | 44,468 | 1.5 % |
| Top Hammer | 16,748 | 15,910 | 5.3 % | 66,834 | 56,287 | 18.7 % |
| Top Hammer | 16,748 | 15,910 | 5.3 % | 66,834 | 56,287 | 18.7 % |
| Total | 26,210 | 26,285 | -0.3 % | 111,962 | 100,755 | 11.1 % |
| Down the Hole | 9,462 | 10,375 | -8.8 % | 45,128 | 44,468 | 1.5 % |
| Down the Hole | 9,462 | 10,375 | -8.8 % | 45,128 | 44,468 | 1.5 % |
| Total | 26,210 | 26,285 | -0.3 % | 111,962 | 100,755 | 11.1 % |
| Total | 26,210 | 26,285 | -0.3 % | 111,962 | 100,755 | 11.1 % |
The Group's net sales in the fourth quarter of the year totalled EUR 26.2 million (26.3). The decrease from the reference period was -0.3% (11.0%) – without Russia, the growth was 3.2%. In constant currencies, the change was -4.2% (9.0). The Top Hammer business continued to grow in the fourth quarter, with net sales growing by 5.3%. The Down the Hole business decreased by -8.8% in the fourth quarter. The Group's net sales in the fourth quarter of the year totalled EUR 26.2 million (26.3). The decrease from the reference period was -0.3% (11.0%) – without Russia, the growth was 3.2%. In constant currencies, the change was -4.2% (9.0). The Top Hammer business continued to grow in the fourth quarter, with net sales The Group's net sales in the fourth quarter of the year totalled EUR 26.2 million (26.3). The decrease from the reference period was -0.3% (11.0%) – without Russia, the growth was 3.2%. In constant currencies, the change was -4.2% (9.0). The Top Hammer business continued to grow in the fourth quarter, with net sales reference period was -0.3% (11.0%) – without Russia, the growth was 3.2%. In constant currencies, the change was -4.2% (9.0). The Top Hammer business continued to grow in the fourth quarter, with net sales growing by 5.3%. The Down the Hole business decreased by -8.8% in the fourth quarter.
The Group's net sales in January–December totalled EUR 112.0 million (100.8). There was an increase of 11.1% from the corresponding period (10.0). In constant currencies, the change was 6.2% (10.7). In January–December, Top Hammer net sales grew strongly by 18.7% to EUR 66.8 million (56.3). The growth in net sales has been particularly supported by the good delivery capacity of the Finnish and South Korean factories. The Down the Hole business net sales declined by 1.5 per cent in January–February to EUR 45.1 million (44.5). The strong growth in net sales early on dwindled towards the end of the year as sales in the East area dropped significantly with the halting of deliveries to Russia. The Group's net sales in January–December totalled EUR 112.0 million (100.8). There was an increase of 11.1% from the corresponding period (10.0). In constant currencies, the change was 6.2% (10.7). In January– December, Top Hammer net sales grew strongly by 18.7% to EUR 66.8 million (56.3). The growth in net sales has been particularly supported by the good delivery capacity of the Finnish and South Korean factories. The Down the Hole business net sales declined by 1.5 per cent in January–February to EUR 45.1 million (44.5). The strong growth in net sales early on dwindled towards the end of the year as sales in the East area dropped growing by 5.3%. The Down the Hole business decreased by -8.8% in the fourth quarter. The Group's net sales in January–December totalled EUR 112.0 million (100.8). There was an increase of 11.1% from the corresponding period (10.0). In constant currencies, the change was 6.2% (10.7). In January– December, Top Hammer net sales grew strongly by 18.7% to EUR 66.8 million (56.3). The growth in net sales has been particularly supported by the good delivery capacity of the Finnish and South Korean factories. The Down the Hole business net sales declined by 1.5 per cent in January–February to EUR 45.1 million (44.5). The Group's net sales in January–December totalled EUR 112.0 million (100.8). There was an increase of 11.1% from the corresponding period (10.0). In constant currencies, the change was 6.2% (10.7). In January– December, Top Hammer net sales grew strongly by 18.7% to EUR 66.8 million (56.3). The growth in net sales has been particularly supported by the good delivery capacity of the Finnish and South Korean factories. The Down the Hole business net sales declined by 1.5 per cent in January–February to EUR 45.1 million (44.5). The strong growth in net sales early on dwindled towards the end of the year as sales in the East area dropped significantly with the halting of deliveries to Russia.
| Net sales by market area EUR thousand |
Q4 2022 | Q4 2021 | Change% | 2022 | 2021 | Change% |
|---|---|---|---|---|---|---|
| EMEA | Q4 2022 | Q4 2021 | Change% | 48,651 | 45,298 | Change% |
| EUR thousand | 12,546 | 11,276 | 11.3 % | 2022 | 2021 | 7.4 % |
| EUR thousand | Q4 2022 | Q4 2021 | Change% | 2022 | 2021 | Change% |
| Americas | 6,156 | 5,738 | 7.3 % | 26,349 | 19,960 | 32.0 % |
| EMEA | 12,546 | 11,276 | 11.3 % | 48,651 | 45,298 | 7.4 % |
| EMEA | 12,546 | 11,276 | 11.3 % | 48,651 | 45,298 | 7.4 % |
| Asia | 2,767 | 3,128 | -11.5 | 11,686 | 10,771 | 8.5 |
| Americas | 6,156 | 5,738 | 7.3 % | 26,349 | 19,960 | 32.0 % |
| Americas | 6,156 | 5,738 | 7.3 % | 26,349 | 19,960 | 32.0 % |
| Australasia | 3,227 | 3,649 | -11.6 | 13,892 | 14,001 | -0.8 |
| Asia | 2,767 | 3,128 | -11.5 % | 11,686 | 10,771 | 8.5 % |
| Asia | 2,767 | 3,128 | -11.5 % | 11,686 | 10,771 | 8.5 % |
| East | 1,514 | 2,495 | -39.3 | 11,384 | 10,725 | 6.2 |
| Australasia | 3,227 | 3,649 | -11.6 % | 13,892 | 14,001 | -0.8 % |
| Australasia | 3,227 | 3,649 | -11.6 % | 13,892 | 14,001 | -0.8 % |
| Total | 26,210 | 26,285 | -0.3 % | 111,962 | 100,755 | 11.1 % |
| East | 1,514 | 2,495 | -39.3 % | 11,384 | 10,725 | 6.2 % |
| East | 1,514 | 2,495 | -39.3 % | 11,384 | 10,725 | 6.2 % |
Net sales' strong growth continued in the fourth quarter in the EMEA region, where net sales grew by 11.3%. Net sales increased in both South and North America. In the Asia, Australasia and East areas, net sales declined. Total 26,210 26,285 -0.3 % 111,962 100,755 11.1 %
Between January and December, the net sales' growth was especially driven by the Americas, Asia and EMEA regions. In the East area, net sales improved thanks to the strong order book, and deliveries to Russia ended before the last quarter. In the Australasia region, net sales remained at the previous year's level.
| EUR thousand | Q4 2022 | Q4 2021 | Change% | 2022 | 2021 | Change% |
|---|---|---|---|---|---|---|
| EBITDA, EUR 1,000 | 379 | 1,650 | -77.0 % | 8,851 | 7,595 | 16.5 % |
| EBITDA, % of net sales | 1.4 % | 6.3 % | 7.9 % | 7.5 % | ||
| EBIT, EUR 1,000 | -1,039 | 327 | -418.1 % | 3,071 | 2,080 | 47.6 % |
| EBIT, % of net sales | -4.0 % | 1.2 % | 2.7 % | 2.1 % | ||
| Result of the period, EUR 1,000 | -2,166 | -152 | -1,326.0 % | 885 | 886 | -0.1 % |
| Result of the period, % of sales | -8.3 % | -0.6 % | 0.8 % | 0.9 % |
The EBITDA for the fourth quarter was EUR 0.4 million (1.7). The EBITDA's share of net sales was 1.4% (6.3). The company's EBIT was EUR -1.0 million (0.3). EBIT was -4.0 % (1.2) of the review period net sales. The result was weakened by the ramping down the operations of Russian company and the operating costs caused by Group organisational changes. The EBITDA for the fourth quarter was EUR 0.4 million (1.7). The EBITDA's share of net sales was 1.4% (6.3). The company's EBIT was EUR -1.0 million (0.3). EBIT was -4.0 % (1.2) of the review period net sales. The result was weakened by the ramping down the operations of Russian company and the operating costs caused
In January–December, the EBITDA was EUR 8.9 million (7.6). EBITDA's share of net sales was 7.9% (7.5). The company's EBIT was EUR 3.1 million (2.1). EBIT was 2.7% (2.1) of net sales. by Group organisational changes. In January–December, the EBITDA was EUR 8.9 million (7.6). EBITDA's share of net sales was 7.9% (7.5).
Improved operating profit in the financial period was supported by increased net sales, measures taken in the pricing and management of pricing as well as the gradual realisation of savings in acquisitions. The global increase of raw material costs created cost-related pressure throughout the financial period. Towards the end of the financial period, the company made organisational changes, which caused higher-than-normal operating costs. Generally speaking, fixed costs were successfully kept in check. Profitability was also encumbered by the inventory clearance in Russia at significantly lower prices than normal. The company's EBIT was EUR 3.1 million (2.1). EBIT was 2.7% (2.1) of net sales. Improved operating profit in the financial period was supported by increased net sales, measures taken in the pricing and management of pricing as well as the gradual realisation of savings in acquisitions. The global increase of raw material costs created cost-related pressure throughout the financial period. Towards the end of the financial period, the company made organisational changes, which caused higher-than-normal operating
Financial income and expenses in the fourth quarter totalled EUR -0.5 million (-0.3), of which EUR -0.3 million (-0.4) was interest expenses and EUR -0.1 million (0.1) exchange rate changes. The result for the review period was EUR -2.2 million (0.2). the inventory clearance in Russia at significantly lower prices than normal.
In January–December, financial income and expenses totalled EUR -1.7 million (-1.3), of which EUR -1.3 million (-1.2) was interest expenses and EUR -0.2 million (0.1) exchange rate changes. The result for the financial period declined slightly to EUR 0.9 million (0.9). (-0.4) was interest expenses and EUR -0.1 million (0.1) exchange rate changes. The result for the review period was EUR -2.2 million (0.2).
| CASH FLOW AND INVESTMENTS EUR thousand |
Q4 2022 | Q4 2021 | 2022 | 2021 |
|---|---|---|---|---|
| Net cash flows from operating activities Consolidated cash flow statement |
||||
| Cash flows before changes in working capital | 1,109 | 1,707 | 10,014 | 7,826 |
| Cash flows from operating activities before financial items and taxes | 2,009 | -237 | 7,277 | -2,785 |
| EUR thousand | Q4 2022 | Q4 2021 | 2022 | 2021 |
| Net cash inflow (outflow) from operating activities Net cash flows from operating activities |
1,575 | -449 | 5,556 | -4,174 |
| Net cash inflow (outflow) from investing activities | -75 | -1,454 | -1,057 | -3,885 |
| Cash flows before changes in working capital | 1,109 | 1,707 | 10,014 | 7,826 |
| Net cash inflow (outflow) from financing activities | -611 | 2,391 | -6,421 | 3,091 |
| Cash flows from operating activities before financial items and taxes | 2,009 | -237 | 7,277 | -2,785 |
| Net increase (+)/decrease (-) in cash and cash equivalents | 888 | 487 | -1,921 | -4,968 |
| Net cash inflow (outflow) from operating activities | 1,575 | -449 | 5,556 | -4,174 |
| Cash and cash equivalents at the beginning of the financial year | 7,016 | 8,926 | 9,525 | 14,339 |
| Net cash inflow (outflow) from investing activities | -75 | -1,454 | -1,057 | -3,885 |
| Exchange gains/losses on cash and cash equivalents | -216 | 113 | 84 | 154 |
| Net cash inflow (outflow) from financing activities | -611 | 2,391 | -6,421 | 3,091 |
| Cash and cash equivalents at end of the year | 7,688 | 9,525 | 7,688 | 9,525 |
| Net increase (+)/decrease (-) in cash and cash equivalents | 888 | 487 | -1,921 | -4,968 |
The Group's cash flow before changes in working capital during the fourth quarter was EUR 1.1 million (1.7). Net cash flow for operating activities was EUR 1.6 million (-0.4). The changes in working capital had an impact of EUR 0.9 million (-1.9). The decrease in sales and other receivables had an impact on cash flow of EUR -0.5 million and on inventories of EUR 0.7 million. The decline in inventories primarily resulted from the shrinking inventories in the Top Hammer business. The increase in account payables and other payables had an impact of EUR 0.6 million on the cash flow from operating activities. The net cash flow from operations in the financial period was EUR 5.6 million (-4.2). The Group's cash flow before changes in working capital during the fourth quarter was EUR 1.1 million (1.7). Net cash flow for operating activities was EUR 1.6 million (-0.4). The changes in working capital had an impact of EUR 0.9 million (-1.9). The decrease in sales and other receivables had an impact on cash flow of EUR - 0.5 million and on inventories of EUR 0.7 million. The decline in inventories primarily resulted from the shrinking inventories in the Top Hammer business. The increase in account payables and other payables had an impact of EUR 0.6 million on the cash flow from operating activities. The net cash flow from operations in the financial
The net cash flow from investing activities in the fourth quarter was EUR -0.1 million (-1.5). Gross investments in production during the review period totalled EUR 0.2 million (1.5). The share of investments in net sales was 0.9% (6.0). The net cash flow for investment activities in the financial period was EUR -1.1 million (-3.9). period was EUR 5.6 million (-4.2). The net cash flow from investing activities in the fourth quarter was EUR -0.1 million (-1.5). Gross investments
Net cash inflow (outflow) from financing activities for Q4 was EUR -0.6 million (2.4). Net changes in loans totalled EUR -1.8 million (-0.4). The change in bank overdrafts was EUR 1.6 million (3.3). The repayment of lease liabilities reported in net cash flow from financing activities under IFRS 16 totalled EUR -0.4 million (-0.5). The net cash flow from financing activities in the financial period was EUR -6.4 million (3.1). 0.9% (6.0). The net cash flow for investment activities in the financial period was EUR -1.1 million (-3.9). Net cash inflow (outflow) from financing activities for Q4 was EUR -0.6 million (2.4). Net changes in loans totalled EUR -1.8 million (-0.4). The change in bank overdrafts was EUR 1.6 million (3.3). The repayment of lease liabilities reported in net cash flow from financing activities under IFRS 16 totalled EUR -0.4 million (-
Depreciation, amortisation and write-downs in the fourth quarter totalled EUR -1.4 million (-1.3). Of this, EUR -0.2 million related to amortisation of customer relationships and brand value from business acquisitions. Depreciation, amortisation and write-downs in the financial period totalled EUR -5.8 million (-5.5). 0.5). The net cash flow from financing activities in the financial period was EUR -6.4 million (3.1). Depreciation, amortisation and write-downs in the fourth quarter totalled EUR -1.4 million (-1.3). Of this, EUR -0.2 million related to amortisation of customer relationships and brand value from business acquisitions.
| 31.12.2022 | 31.12.2021 | |
|---|---|---|
| Cash and cash equivalents, EUR thousand | 7,688 | 9,525 |
| Interest-bearing liabilities, EUR thousand | 36,345 | 41,522 |
| of which short-term interest-bearing financial liabilities: | 8,922 | 10,500 |
| Net interest-bearing debt, EUR thousand | 28,657 | 31,996 |
| Undrawn credit facility, EUR thousand | 4,218 | 2,738 |
| Gearing, % | 56.4 % | 65.1 % |
| Equity ratio, % | 46.5 % | 42.2 % |
The Group had interest-bearing debt amounting to EUR 36.3 million (41.5), of which EUR 7.0 million (7.7) was interest-bearing debt under IFRS 16. The Group's liquid assets totalled EUR 7.7 million (9.5). Interest-bearing net liabilities were EUR 28.7 million (32.0), and interestbearing net bank debt without IFRS 16 debt impact was EUR 21.7 million (24.3). The Group had interest-bearing debt amounting to EUR 36.3 million (41.5), of which EUR 7.0 million (7.7) was interest-bearing debt under IFRS 16. The Group's liquid assets totalled EUR 7.7 million (9.5). Interest-bearing net liabilities were EUR 28.7 million (32.0), and interest-bearing net bank debt without IFRS 16 debt impact was EUR 21.7 million (24.3).
The Group's equity at the end of the review period was EUR 50.8 million (49.1). The Group's equity ratio was 46.5% (42.2) and its net gearing was 56.4% (65.1). The Group's equity at the end of the review period was EUR 50.8 million (49.1). The Group's equity ratio was 46.5% (42.2) and its net gearing was 56.4% (65.1). 6
The number of personnel decreased by 14 from the end of the comparison period, and at the end of the review period it was 259 (273). At the end of the review period, 70% of the company's personnel were located outside Finland. located outside Finland. The company's Management Team at the end of the review period was composed of Arto Halonen (CEO),
The company's Management Team at the end of the review period was composed of Arto Halonen (CEO), Jaana Rinne (HR Director), Ville Peltonen (CFO), George Apostolopoulos (VP Global Sales), Perttu Aho (VP Down the Hole), Jorge Leal (VP Top Hammer) and Ville Pohja (VP Geotechnical). Down the Hole), Jorge Leal (VP Top Hammer) and Ville Pohja (VP Geotechnical). FINANCIAL TARGETS
Robit's long-term target is to achieve organic net sales growth of 15% annually and comparable EBITDA profitability of 13%.
| Long-term target |
2020 | 2021 | 2022 | |
|---|---|---|---|---|
| Net sales growth, % | 15 % | 6.0 % | 10.0 % | 11.1 % |
| Adjusted EBITDA, % of net sales | 13 % | 5.6 % | 7.5 % | 7.9 % |
On 25 February 2020, Robit's Board of Directors decided on a new share-based incentive scheme for the Group's management and key personnel. The share scheme has three elements: own investment of the key personnel in Robit shares (base share plan), reward shares by the company (matching share plan) and performance-based additional share plan (performance matching plan). The share-based Share-based incentive scheme 2020–2023 On 25 February 2020, Robit's Board of Directors decided on a new share-based incentive scheme for the Group's management and key personnel. The share scheme has three elements: own investment of the key
incentive scheme covers 17 individuals. The company's matching shares, and performance matching shares will be paid in April 2023. After the payment, the shares will be subject to a transfer restriction for a period of one year. If all three main elements of the scheme are fulfilled in full as determined in the scheme and according to the target setting of the company's Board of Directors, the maximum amount of shares issued based on the scheme will be 441,760 shares, corresponding to 2.1% of the current total share capital.
On 15 June 2021, Robit Plc's Board of Directors decided on a performance-based share reward scheme for key personnel.
The share scheme includes earning periods of one and two years. The first earning period of the share scheme comprises the year 2021 and the second earning period comprises the years 2022–2023. The share scheme's potential reward for the one-year earning period 2021 is based on the company's predetermined EBITDA target in the financial statements for 2021. The remuneration that may be paid under the share scheme for the 2022–2023 two-year earning period is based on the company's predetermined average earnings per share in the financial statements for the years 2022 and 2023. The share scheme's possible reward for both earning periods will be paid in May 2024.
The share scheme covers 21 individuals. The total amount of share rewards payable on the basis of the earning periods 2021 and 2022– 2023 corresponds to a maximum of 155,000 Robit Plc shares, corresponding to 0.7% of the company's current share capital.
On 15 February 2022, Robit Plc's Board of Directors decided on a performance-based share reward scheme for key personnel. On 24 March 2022, Robit Plc's Board of Directors decided to increase the maximum size of the share reward scheme due to the change in CEO.
The share scheme includes earning periods of one and two years. The first earning period of the share scheme comprises the year 2022 and the second earning period comprises the years 2023–2024. The remuneration that may be paid under the share scheme for the 2021 one-year earning period is based on the company's predetermined net cash inflow target in the 2022 financial statements. The remuneration that may be paid under the share scheme for the 2023–2024 two-year earning period is based on the company's predetermined average earnings per share in the financial statements for the years 2023 and 2024. The remuneration that may be paid under the share scheme for both earning periods will be paid in May 2025.
The share scheme covers about 30 individuals. The total amount of share rewards payable on the basis of the earning periods 2022 and 2023–2024 corresponds to a maximum of 240,000 Robit Plc shares, which represents 1.1% of the company's current share capital.
Robit Plc's Annual General Meeting on 22 March 2022 adopted the financial statements presented for 1 January–31 December 2021 and resolved that no dividend would be paid based on the adopted balance sheet for the 2021 financial year.
The General Meeting resolved to discharge the members of the Board of Directors and the Managing Directors from liability for the financial year ending 31 December 2021. The General Meeting decided to approve the Remuneration Report for Governing Bodies. The decision was advisory.
The General Meeting resolved that the Board of Directors consists of six (6) members. Kim Gran, Mikko Kuitunen, Anne Leskelä and Harri Sjöholm were re-elected as members of the Board of Directors. Eeva-Liisa Virkkunen and Markku Teräsvasara were elected new members of the Board of Directors.
The annual remuneration for the Chairman of the Board of Directors is EUR 50,000, of which 40% is paid in shares and the remaining 60% is an advance tax withheld and paid to the Finnish Tax Administration by the company. There is also a meeting fee of EUR 500 per meeting. The fee is paid for meetings attended by the Chairman of the Board. Other costs, such as travel and lodging expenses, will also be compensated.
The annual remuneration for the Board members is EUR 30,000, of which 40% is paid in shares and the remaining 60% is an advance tax withheld and paid to the Finnish Tax Administration by the company. There is also a meeting fee of EUR 500 per meeting. The fee is paid for meetings attended by the member of the Board. Other costs, such as travel and lodging expenses, will also be compensated.
Members of the Working Committee, Personnel Committee and Audit Committee are paid a financial compensation of EUR 500 per meeting attended. Other costs, such as travel and lodging expenses, will also be compensated.
The annual remuneration of the Chairman of the Board and Board members for the entire term of office will be paid in December 2022. The part of the remuneration paid in shares may be paid by issuing new shares in the company or by acquiring shares by the authorisation given to the Board of Directors by the General Meeting. The receiver of the remuneration pays the transfer tax.
Ernst & Young Oy, an audit firm, was re-elected as the company's auditor for a term that will continue until the end of the next Annual General Meeting. Ernst & Young Oy has notified the company that Authorised Public Accountant Toni Halonen will serve as the company's principal responsible auditor.
The General Meeting resolved to pay the auditor's remuneration in accordance with an invoice approved by the company.
The General Meeting resolved to authorise the Board of Directors to resolve on the acquisition of a maximum of 2,117,990 shares of the company and/or accepting the same number of the company's shares as a pledge, in one or several tranches by using funds in the unrestricted shareholders' equity. The maximum total of shares that will be acquired and/or accepted as a pledge corresponds to 10% of all the shares in the company as of the date of the notice to the General Meeting. However, the company cannot, together with its subsidiary companies, own or accept as a pledge altogether more than 10% of its own shares at any point in time. The company's shares may be purchased under this authorisation solely by using unrestricted shareholders' equity.
The shares will be acquired other than in proportion to the share ownership of the shareholders via public trading arranged by Nasdaq Helsinki Ltd at the market price on the date on which the acquisition is made or at a price formed on the market. The authorisation is proposed to be used for the purposes of implementing the company's share-based incentive schemes or for other purposes as decided by the Board of Directors, for example.
It was resolved that the authorisation revokes the authorisation granted by the General Meeting on 25 March 2021 to decide on the acquisition of treasury shares.
The authorisation is valid until the closing of the next Annual General Meeting, but no longer than until 30 June 2023.
The Annual General Meeting resolved to authorise the Board of Directors to resolve on a share issue and on the issuance of special rights entitling to shares as referred to in Chapter 10, Section 1 of the Finnish Limited Liability Companies Act, in one or more tranches, either against or without consideration.
The number of shares to be issued, including shares to be issued on the basis of special rights, may not exceed 2,117,990, which amounts to 10% of all shares in the company as at the date of the notice to the Annual General Meeting. The Board of Directors may decide to either issue new shares or to transfer any treasury shares held by the company.
The authorisation entitles the Board of Directors to decide on all terms that apply to the share issue and to the issuance of special rights entitling to shares, including the right to derogate from the shareholders' pre-emptive right. The authorisation shall be used e.g. for the purposes of strengthening the company's balance sheet and improving its financial status, implementing the company's share-based incentive systems or for other purposes as decided by the Board of Directors.
The authorisation is valid until the closing of the next Annual General Meeting, but no longer than until 30 June 2023. The authorisation will revoke all the previously granted, unused authorisations to decide on a share issue and the issuance of options or other special rights entitling to shares.
Robit is a global growth company selling and manufacturing drilling consumables. The company provides products and services for the needs of the mining and surface mining, quarrying, underground construction and well drilling industries. This strongly internationalised company's offering is divided into three product and service areas: Top Hammer, Down the Hole and Geotechnical. Robit has its own sales and service points in seven countries as well as an active dealership network through which it sells to more than 100 countries. Robit's manufacturing units are located in Finland, South Korea, Australia and the UK. Robit is dedicated to act responsibly in its business. Daily work is directed by strategy, values and operating principles of the Group.
Robit follows international and local laws and statutes in force in its business. The company follows also international agreements and recommendations, such as the UN Sustainable Development Goals.
The Code of Conduct guides our responsibility. The induction of every new Robit employee includes the completion of the Code of Conduct eLearning programme. This is to ensure that everyone working in the company knows our Code of Conduct and is committed to it. The Code of Conduct provides guidelines on, among others, the following issues: compliance with laws, human and labour rights, equality, honesty and fair competition.
In 2021, Robit arranged a sustainability idea competition for its personnel. One of the best ideas was Robit cardboard box optimization. Based on this idea, the button bit boxes were improved in 2022.
The change significantly reduces the space needed for the storage and transportation of the products. Cost savings were also achieved in box purchases.
Robit is developing its sustainability and operational performance both upstream and downstream in its value chain through long-term partnerships. Robit works with partners who share similar principles and targets when it comes to the environment, social responsibility, and governance.
Cooperation is carried out with suppliers to reduce the loss of materials in the production phases. Robit suppliers are asked to commit to the principles of Robit Sustainable Supply Chain Policy, and sustainability topics are included in the audits of suppliers and subcontractors.
Robit has identified CO2 reduction as one key focus area of sustainability. There are possibilities to effect to CO2 emissions by making changes in company´s own operations. However, it is also recognized that there is potential for improvement by influencing indirect effects and external stakeholders.
As a first step Robit has built CO2 calculation tool to recognize Scope 1 and 2 CO2 emissions caused by Robit´s own operations. Robit's 2020 carbon footprint (Scope 1 and 2) calculated according to Greenhouse Gas Protocol (GHG protocol) Corporate Standard was 3 383-ton CO2e corresponding to 36.9-ton CO2e per million euro of net sales. To reduce emissions, company have decided to increase share of green energy used in the factories.
The share of green energy has been increased at Robit's Australian factory and had a positive effect on the figures in 2022. As an action to reduce energy consumption, a change to LED lighting has been implemented at many Robit locations.
Robit's 2022 Scope 1 and 2 emission intensity was 27.3 CO2e per million-euro net sales (2021: 36.7 CO2e per million-euro net sales), change from the comparative period was -0.5 percent.
Robit targets to be a desired employer and to offer a healthy workplace for its employees. In addition to complying with statutory requirements the company wants to support employee wellbeing and competence development. "We respect everybody" is one of the three Robit values that have been actively communicated to personnel.
Robit continually works to improve safety at the company. There is a Robit HSE Team in place, which coordinates safety activities within the Group. Robit continues to build diversity and inclusion as a natural part of Robit culture. Diversity is already today one of the strengths at Robit and there are tens of different nationalities working in the company. Several communication channels for the personnel have been taken into use, including etc. Feeling Pulse for weekly feedback, Yammer for informal discussions, Robit Talks where important topics, like values and company development areas are discussed, and Whistleblowing channel in accordance with the law.
Efficiency throughout the product lifecycle means:
Especially big leverage is in optimizing Robit's customers' drilling operations. By optimizing the drilling operation, it is possible to reduce energy consumption and increase rate of penetration and thus drilling efficiency. Robit has been training it´s sales and distributors so that they would have better capability to find best products for the end-users and thus support them to perform drilling in effective way.
Robit has defined measurable targets for each four key themes in order to follow the realization of the ESG roadmap. Robit launched the targets as a part of the ESG plan in September 2021. In 2022 Robit continued its active sustainability communication inside the organisation and reached positive development in the key target areas.
| KPI | Target | Result 2022 | 2021 |
|---|---|---|---|
| Our target is to have a minimum of 90% of our supplier spend coming from suppliers who have committed to Robit's supply chain policy. |
90% | 92% | 79% |
| Our target is to have a minimum of 90% of our distributors committed to Robit's ESG principles, in terms of sales volume. |
90% | 82% | 38% |
| Robit is committed in reducing its scope 1 and 2 CO2 intensity by 50% by 2030 from the baseline year 2020. |
- 50% | - 26% | - 0.5% |
| Our target is zero lost time incidents; the followed indicator is LTIF. |
0 | 6.4 | 2.1 |
| We continuously improve the engagement of our people; the monitored indicator is the PeoplePower® index. |
>70 | 70.1 | 69 |
| Robit is committed to providing at least 1,000 hours per year of consultative sales training to its own sales and technical people and those of its distributors. |
1000 h | 714 h | 921 h |
| To improve material efficiency in internal operations, Robit has set a target of achieving a waste recovery ratio of over 90% at Robit factory locations. |
90% | 89.9% | 87% |
On 31 December 2022, the company had 21,179,900 shares and 4,985 shareholders. The trading volume in January–December was 8,082,989 shares (5,866,628).
The company holds 52,308 treasury shares (0.2% of total shares). On 31 December 2022, the market value of the company's shares was EUR 55.7 million. The closing price of the share was EUR 2.63. The highest price in the review period was EUR 4.55 and the lowest price EUR 2.11. 12
| Shareholding of the board members and management 31 Dec 2022 | Shares | Share % |
|---|---|---|
| Shareholding of the board members | 5,841,836 | 27.58 % |
| Harri Sjöholm * | 5,767,395 | 27.23 % |
| Kim Gran | 31,007 | 0.15 % |
| Mikko Kuitunen | 17,865 | 0.08 % |
| Anne Leskelä | 11,007 | 0.05 % |
| Markku Teräsvasara | 4,781 | 0.02 % |
| Eeva-Liisa Virkkunen | 9,781 | 0.05 % |
| Group CEO | 24,493 | 0.12 % |
| Other management team members | 42,550 | 0.20 % |
| Total | 5,908,879 | 27.90 % |
*27,06 % owned by Harri Sjöholm through Five Alliance Ltd
| Shareholdings by owner class (shares) 31 Dec 2022 | Owners | Owners % | Votes | Shares | Share % |
|---|---|---|---|---|---|
| 1 - 100 | 1,483 | 29.75 | 67,599 | 67,599 | 0.32 |
| 101 - 500 | 1,627 | 32.64 | 466,869 | 466,869 | 2.20 |
| 501 - 1 000 | 699 | 14.02 | 582,244 | 582,244 | 2.75 |
| 1 001 - 5 000 | 919 | 18.44 | 2,119,896 | 2,119,896 | 10.01 |
| 5 001 - 10 000 | 129 | 2.59 | 973,947 | 973,947 | 4.60 |
| 10 001 - 50 000 | 100 | 2.01 | 2,189,580 | 2,189,580 | 10.34 |
| 50 001 - 100 000 | 13 | 0.26 | 966,479 | 966,479 | 4.56 |
| 1 00 001 - 500 000 | 8 | 0.16 | 1,409,660 | 1,409,660 | 6.66 |
| 500 001 - | 7 | 0.14 | 12,403,626 | 12,403,626 | 58.56 |
| Total | 4,985 | 100 | 21,179,900 | 21,179,900 | 100 |
| In administrative registration | 10 | 906,456 | 906,456 | 4.28 | |
| In waiting list | 0 | 0 | 0 | 0 | |
| Shared accounts | 0 | 0 | 0 | 0 | |
| On special purpose accounts total | 0 | 0 | 0 | 0 | |
| Shares total | 21,179,900 | 21,179,900 | 100 |
The geopolitical situation, which is growing tenser, poses a risk to the company's business. The war in Ukraine and the sanctions imposed on Russia affect the development of net sales and profitability especially in Russia, Belarus and Ukraine, which accounted for under 9% of the company's sales in the 2022 financial year. The crisis has caused and may still cause a significant increase in the prices of raw materials. In respect of Russia, Robit complies with all the imposed sanctions and continuously monitors the situation. The geopolitical situation, which is growing tenser, poses a risk to the company's business. The war in Ukraine and the sanctions imposed on Russia affect the development of net sales and profitability especially in Russia, Belarus and Ukraine, which accounted for under 9% of the company's sales in the 2022 financial year. The crisis has caused and may still cause a significant increase in the prices of raw materials.In respect of Russia,
Robit closely monitors the impact of COVID-19 on demand in the sector. In general, customer operations have returned to normal levels. The effects on Robit's operations are now limited and only affect individual countries or regions. Robit will continue actions to protect the health of its personnel and to ensure the continuity of the company's operations. At the time of reporting, all of the company's factories were operating at the planned capacity. No disruptions in the supply chain have been identified that cannot be managed, for example, with current inventory levels and supplier cooperation. Robit complies with all the imposed sanctions and continuously monitors the situation. Robit closely monitors the impact of COVID-19 on demand in the sector. In general, customer operations have returned to normal levels. The effects on Robit's operations are now limited and only affect individual countries or regions. Robit will continue actions to protect the health of its personnel and to ensure the continuity of the company's operations. At the time of reporting, all of the company's factories were operating at the planned Other uncertainty factors include exchange rate development, the functioning of information systems, integration of corporate acquisitions, risks related to the security of supply and logistics, and IPR risks. Fully transferring the increase in raw material costs to customer prices may pose a financial risk. Changes in export countries' tax and customs legislation may adversely impact the company's export trade or its profitability. Risks related to information security and cyber threats may also have a detrimental effect on Robit's business. Potential changes in the business environment may adversely impact the payment behaviour of the Group's customers and increase the risk of litigation, legal claims and disputes related to Robit's products and other operations.
The Group's subsidiary Robit Rocktools Ab was dissolved on 13 December 2022. The company hasn't conducted any business.
On 4 October 2022, the company announced that it had received a notification under Chapter 9, Section 5 of the Finnish Securities Markets Act from OP Fund Management Company Ltd on 3 October 2022. According to the information received, the total number of Robit shares owned by OP Fund Management Company Ltd decreased below five (5) per cent of the total shares of Robit Plc on 30 September 2022.
On 26 October 2022, the company published its interim financial reporting for 1 January–30 September 2022.
On 26 October 2022, the company published the company's schedule for financial information and the Annual General Meeting of 2023.
On 17 November 2022, the company announced that Perttu Aho (born 1968), B.B.A., had been appointed head of Robit Oyj's Down the Hole business unit (VP Down the Hole) and a member of the company's Management Team. At the same time, the company announced that the current VP of Down the Hole, Adam Baker, would be leaving his position as the head of the DTH business unit and member of the Management Team 31 December 2022.
On 17 November 2022, the company announced that Ville Peltonen, M.Sc. (Econ.), had been appointed Robit Plc's CFO and member of the Management Team as of 17 November 2022. Peltonen had been serving as the company's interim CFO as of 16 March 2022 after the previous CFO Arto Halonen moved to the position of the company's CEO.
On 12 December 2022, the Board of Directors of Robit Plc decided to transfer a total of 31,873 shares of the company as Board fees to the members of the Board of Directors on the basis of the Board's 2022 term of office. The transfer was based on the authorisation given by the Annual General Meeting on 22 March 2022. At the closing price of 09 December 2022, the total value of the shares to be transferred was EUR 80,000. It was decided to transfer to CEO Arto Halonen a total of 4,283 shares as part of the fixed annual salary. The transfer was based on the CEO agreement. At the closing price of 09 December 2022, the total value of the shares to be transferred was EUR 10,750. Therefore, the total number of shares to be transferred was 36,155 and their total value at the closing price of 09 December 2022 was EUR 90,750. The share rewards were paid with Robit Plc's treasury shares held by the company, so the total number of Robit Plc's shares did not change. Before the transfer, Robit Plc held 88,765 treasury shares, which was 0.4% of the company's entire shareholding, and 52,610 after the transfers, which was 0.2% of the company's total shares. The share rewards were paid by 14 December 2022.
On 11 January 2023, Robit Plc announced that its VP, Global Sales and Management Team member George Apostolopoulos would be leaving his duties for new challenges outside the company. Apostolopoulos will continue in his position until the summer of 2023. The process of recruiting Apostolopoulos' successor is under way. The sales of global sales areas has also been the responsibility of CEO Arto Halonen, and he will continue in his duties, bearing the responsibility of half of the sales.
On 18 January 2023, the company published the proposals of Robit Plc's Shareholders' Nomination Committee for the Annual General Meeting of 2023:
The Nomination Committee proposes that the Annual General Meeting elect six (6) members to the Board of Directors.
The Nomination Committee proposes to the Annual General Meeting that the following persons be re-elected as members of the Board of Directors for a term ending at the end of the next Annual General Meeting following the election: Mikko Kuitunen, Anne Leskelä, Harri Sjöholm, Markku Teräsvasara, Eeva-Liisa Virkkunen. Lasse Aho is proposed as a new member. Of the current Board members, Kim Gran has announced that he will no longer be available for election into the Board of Directors.
All candidates have given their consent to the selection and are independent of the company and its major shareholders, with the exception of Harri Sjöholm, who is dependent on the major shareholders. Harri Sjöholm is the majority shareholder in Five Alliance Oy, which holds 27.06% of the company's shares.
The Nomination Committee proposes to the Annual General Meeting that the annual remuneration for the Chairman of the Board is EUR 55,000, of which 40% is paid as shares and the remaining 60% is an advance tax withheld and paid to the Finnish Tax Administration by the company. The annual remuneration for the Board members is EUR 30,000, of which 40% is paid in shares and the remaining 60% is an advance tax withheld and paid to the Finnish Tax Administration by the company.
The Nomination Committee also proposes that the Board members and the Chairman be paid a meeting fee of EUR 500 per meeting attended for Board meetings and committee meetings. If the meeting is held remotely and lasts no more than 1 hour, EUR 250 will be paid as a one-time meeting compensation. Other costs, such as travel and lodging expenses, will also be compensated.
The annual remuneration of the Chairman of the Board and Board members for the entire term of office will be paid in December 2023. The part of the remuneration paid in shares may be paid by issuing new shares in the company or by acquiring shares by the authorisation given to the Board of Directors by the General Meeting. The receiver of the remuneration pays the transfer tax.
The Nomination Committee's proposals will be included in the notice of the general meeting.
Timo Sallinen (Senior Vice-President, Investments, Varma Mutual Pension Insurance Company) acted as the Chairman of the Shareholders' Nomination Committee that prepared the proposals for the Annual General Meeting of 2023, with Harri Sjöholm (Chairman of the Board of Five Alliance Oy), Jukka Vähäpesola (Head of Equities of Elo Mutual Pension Insurance Company) and Markus Lindqvist (Sustainability Director of Aktia Pankki Oyj) as the other members.
| 2022 | 2021 | 2020 | 2019 | 2018 | |
|---|---|---|---|---|---|
| Net sales, EUR 1 000 | 111,962 | 100,755 | 91,631 | 86,482 | 82,683 |
| Net sales growth, percent | 11.1 | 10.0 % | 6.0 % | 4.6 % | -6.3 % |
| EBITDA, EUR 1 000 | 8,851 | 7,595 | 5,116 | 1,605 | -4,782 |
| EBITDA, percent of sales | 7.9 % | 7.5 % | 5.6 % | 1.9 % | -5.8 % |
| Adjusted EBITDA | 8,851 | 7,595 | 5,116 | 2,707 | -3,529 |
| Adjusted EBITDA, percent of sales | 7.9 % | 7.5 % | 5.6 % | 3.1 % | -4.3 % |
| EBITA, EUR 1 000 | 3,959 | 2,940 | -48 | -4,927 | -9,658 |
| EBITA, percent of sales | 3.5 % | 2.9 % | -0.1 % | -5.7 % | -11.7 % |
| Adjusted EBITA | 3,959 | 2,940 | -48 | -3,720 | -8,405 |
| Adjusted EBITA, percent of sales | 3.5 % | 2.9 % | -0.1 % | -4.3 % | -10.2 % |
| EBIT, EUR 1 000 | 3,071 | 2,080 | -868 | -5,767 | -29,800 |
| EBIT, percent of sales | 2.7 % | 2.1 % | -0.9 % | -6.7 % | -36.0 % |
| Result of the period, EUR 1 000 | 885 | 886 | -2,894 | -7,265 | -31,384 |
| Result of the period, percent of sales | 0.8 % | 0.9 % | -3.2 % | -8.4 % | -38.0 % |
| Earnings per share (EPS), EUR | 0.04 | 0.04 | -0.14 | -0.35 | -1.49 |
| Return on equity (ROE), percent | 1.6 % | 1.8 % | -5.9 % | -13.4 % | -41.9 % |
| Return on capital employed (ROCE), percent | 3.5 % | 2.5 % | -2.6 % | -8.7 % | -27.5 % |
| Adjusted return on capital employed (ROCE), percent | 3.5 % | 2.5 % | -2.6 % | -7.4 % | -26.4 % |
| Net interest-bearing debt, EUR 1 000 | 28,657 | 31,996 | 21,228 | 22,967 | 15,810 |
| Equity ratio, percent | 46.6 % | 42.2 % | 45.6 % | 47.4 % | 49.3 % |
| Equity per share, EUR | 2.41 | 2.33 | 2.23 | 2.41 | 2.74 |
| Net gearing, percent | 56.4 % | 65.1 % | 45.2 % | 45.3 % | 27.4 % |
| Gross investments, EUR 1 000 | 1,326 | 4,293 | 1,281 | 1,375 | 4,630 |
| Gross investments, percent of sales | 1.2 % | 4.3 % | 1.4 % | 1.6 % | 5.6 % |
| Gross investments, excl. Acquisitions, EUR 1 000 | 1,326 | 4,293 | 1,281 | 1,375 | 4,630 |
| R&D costs, EUR 1 000 | 223 | 436 | 566 | 569 | 1 228 |
| R&D costs, percent of sales | 0.2 % | 0.4 % | 0.6 % | 0.7 % | 1.5 % |
| Average number of employees | 268 | 267 | 257 | 274 | 308 |
| Number of employees at the end of period | 259 | 273 | 261 | 252 | 286 |
| Dividend, EUR * | 0.02 | 0.0 | 0.0 | 0.0 | 0.0 |
| Dividend of the result, percent | 0.0 % | 0.0 % | 0.0 % | 0.0 % | 0.0 % |
| Effective dividend yield | 0.0 % | 0.0 % | 0.0 % | 0.0 % | 0.0 % |
| Price / earnings | 63 | 213 | -27 | -8 | -1 |
| Share price at the end of period | 2.63 | 4.03 | 3.65 | 2.90 | 1.64 |
| Lowest | 2.11 | 3.65 | 1.7 | 1.58 | 1.58 |
| Highest | 4.55 | 6.46 | 3.65 | 3.97 | 8.18 |
| Market capitalisation, EUR million | 55.7 | 85.4 | 76.9 | 61.1 | 34.6 |
Robit Corporate Governance Statement for 2022 is published as a separate statement on Robit's website: https://www.robitgroup.com/investor/corporate-governance/corporate-governance-statement/ Robit Corporate Governance Statement for 2022 is published as a separate statement on Robit's website: https://www.robitgroup.com/investor/corporate-governance/corporate-governance-statement/
Robit Remuneration Report 2022 is published as a separate statement on Robit's website: https://www.robitgroup.com/investor/corporate-governance/remuneration-statement/ Robit Remuneration Report 2022 is published as a separate statement on Robit's website: https://www.robitgroup.com/investor/corporate-governance/remuneration-statement/
Lempäälä, 20 February 2023
ROBIT PLC Board of Directors ROBIT PLC
IN BRIEF COMPANY BUSINESS SUSTAINABILIT Y INVESTORS REPORT OF THE BOARD FINANCIAL STATEMENTS
52
ROBIT FURTHER. FASTER. ANNUAL REPORT 2022
| Consolidated statement of comprehensive income | 54 | ||
|---|---|---|---|
| Consolidated balance sheet | 56 | ||
| Consolidated statement of changes in equity | 58 | ||
| Consolidated statement of cash flows | 60 | ||
| 1 | About the consolidated financial statements | 62 | |
| 1.1 | General information | 62 | |
| 1.2 | Basis of preparation | 62 | |
| 1.3 | Management judgement and sources of uncertainty | 62 | |
| 2 | Robit's performance | 63 | |
| 2.1 | Net sales and segment information | 63 | |
| 2.2 | Production's materials and services | 65 | |
| 2.3 | Employee benefits | 65 | |
| 2.4 | Other operating income and expenses | 68 | |
| 2.5 | Depreciation and amortization | 69 | |
| 3 | Acquisitions and intangible assets | 70 | |
| 3.1 | Acquisitions | 70 | |
| 3.2 | Goodwill & impairment testing | 71 | |
| 3.3 | Other intangible assets | 74 | |
| 4 | Capital structure and financing | 76 | |
| 4.1 | Share capital and reserves | 76 | |
| 4.2 | Earnings per share | 78 | |
| 4.3 | Borrowings | 78 | |
| 4.4 | Financial assets | 81 | |
| 4.5 | Finance income and costs | 84 | |
| 4.6 | Financial risk and capital management | 85 | |
| 4.7 | Commitments and contingent liabilities | 89 | |
| 5 | Operating assets and liabilities | 90 | |
| 5.1 | Property, plant and equipment | 90 | |
| 5.2 | Inventories | 93 | |
| 5.3 | Account and other receivables | 94 | |
| 5.4 | Account and other payables | 95 | |
| 5.5 | Provisions | 96 | |
| 5.6 | Advance payments received | 96 | |
| 6 | Other notes | 97 | |
| 6.1 | Subsidiaries and foreign currencies | 97 | |
| 6.2 | Taxes | 99 | |
| 6.3 | Related party transactions | 103 | |
| 6.4 | Subsequent events | 105 | |
| 6.5 | New and amended standards adopted by the group | 105 | |
| Robit Plc Parent Company accounts 1 Jan–31 Dec 2022 | 106 | ||
| Notes to the Financial Statements | 110 | ||
| Auditor's report | 119 | ||
| Definitions of key Financial Figures | 124 |
This Financial Statements and Board of Directors' review 2022 have not been prepared in accordance with ESEF (European Single Electronic Format) regulations. The Financial Statements and Board of Directors' review 2022 in accordance with ESEF regulations are available electronically as an xHTML document in which the primary statements in the Financial Statements are marked with XBRL tags. The ESEF requirement is based on the harmonization of transparency requirements for listed companies pursuant to the Transparency Directive (2004/109/EC) and its amending Directive (2013/50/EU), as well as the European Commission Delegation Regulation (2019/815/EU). In Finland, the directive has been implemented in the Securities Markets Act (AML 7:5§). The Financial Statements and Board of Directors' review 2022 in accordance with ESEF regulations are available at www.robitgroup.com.
| EUR thousand | Note | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|---|
| Net sales | 2.1 | 111 962 | 100 755 |
| Other operating income | 2.4 | 4 117 | 1 690 |
| Materials and services | 2.2 | -73 729 | -65 699 |
| Employee benefit expense | 2.3 | -17 075 | -16 280 |
| Depreciation, amortization and impairment | 2.5 | -5 779 | -5 514 |
| Other operating expenses | 2.4 | -16 425 | -12 871 |
| EBIT (Operating profit) | 3 071 | 2 080 | |
| Finance income and costs | |||
| Finance income | 4.5 | 2 277 | 924 |
| Finance cost | 4.5 | -4 010 | -2 253 |
| Finance income and costs net | -1 733 | -1 329 | |
| Profit before income tax | 1 338 | 1 204 | |
| Income taxes | |||
| Current taxes | -533 | -333 | |
| Change in deferred taxes | 80 | 468 | |
| Income taxes | 6.2 | -453 | 135 |
| Result for the period | 885 | 886 | |
| Attributable to: | |||
| Owners of the parent | 819 | 843 | |
| Non-controlling interest | 66 | 44 | |
| 885 | 886 | ||
| Other comprehensive income | |||
| Items that may be reclassified to profit or loss in subsequent periods: | |||
| Cash flow hedges | 4.4 | 633 | 45 |
| Translation differences | 4.1 | 41 | 1 003 |
| Other comprehensive income, net of tax | 674 | -1 088 | |
| Total comprehensive income | 1 560 | 1 934 |
| EUR thousand Total comprehensive income |
Note | 1 Jan - 31 Dec 2022 1 560 |
1 Jan - 31 Dec 2021 1 934 |
|---|---|---|---|
| Net sales Attributable to: |
2.1 | 111 962 | 100 755 |
| Other operating income Owners of the parent |
2.4 | 4 117 1 501 |
1 690 1 892 |
| Materials and services Non-controlling interest |
2.2 | -73 729 58 |
-65 699 42 |
| Employee benefit expense | 2.3 | -17 075 1 560 |
-16 280 1 934 |
| Depreciation, amortization and impairment | 2.5 | -5 779 | -5 514 |
| Other operating expenses Earnings per share attributable to the owners of the parent during |
2.4 | -16 425 | -12 871 |
| EBIT (Operating profit) the year: |
3 071 | 2 080 | |
| Basic and diluted earnings per share | 4.2 | 0,04 | 0,04 |
Finance income 4.5 2 277 924 The above consolidated statement of comprehensive income should be read in conjunction with the accompanying notes.
| EUR thousand | Note | 31-Dec-22 | 31-Dec-21 |
|---|---|---|---|
| ASSETS | |||
| Non-current assets | |||
| Goodwill | 3.1 | 5 203 | 5 487 |
| Other intangible assets | 3.2 | 1 498 | 2 695 |
| Property, plant and equipment | 5.1 | 24 929 | 27 396 |
| Loan receivables | 4.4 | 248 | 287 |
| Other receivables | 6 | 0 | |
| Derivatives | 4.4 | 848 | 56 |
| Deferred tax assets | 6.2 | 1 859 | 1 926 |
| Total non-current assets | 34 590 | 37 847 | |
| Current assets | |||
| Inventories | 5.2 | 44 311 | 43 538 |
| Account and other receivables | 4.4, 5.3 | 22 342 | 25 337 |
| Loan receivables | 4.4 | 80 | 100 |
| Income tax receivable | 6.2 | 108 | 57 |
| Cash and cash equivalents | 4.4 | 7 688 | 9 525 |
| Total current asset | 74 529 | 78 557 | |
| Total assets | 109 119 | 116 403 | |
| EUR thousand | 31-Dec-22 | 31-Dec-21 | |
| EQUITY AND LIABILITIES | |||
| Equity attributable to owners of the parent | |||
| Share capital | 4.1 | 705 | 705 |
| Share premium | 4.1 | 202 | 202 |
| Reserve for invested unrestricted equity | 4.1 | 82 570 | 82 570 |
| Cumulative translation difference | 4.1 | -1 747 | -1 793 |
| Fair value reserve | 4.1 | 678 | 45 |
| Retained earnings | 4.1 | -32 748 | -33 738 |
| Profit for the year | 4.1 | 819 | 843 |
| Equity attributable to parent company shareholders in total | 50 482 | 48 833 | |
| Non-controlling interest | 339 | 281 | |
| Total equity | 50 822 | 49 114 |
| EUR thousand | Note | 31-Dec-22 | 31-Dec-21 |
|---|---|---|---|
| ASSETS Liabilities |
|||
| Non-current assets Non-current liabilities |
|||
| Goodwill | 3.1 | 5 203 | 5 487 |
| Borrowings | 4.3 | 22 085 | 25 209 |
| Other intangible assets | 3.2 | 1 498 | 2 695 |
| Lease liabilities | 4.3 | 5 338 | 5 813 |
| Property, plant and equipment | 5.1 | 24 929 | 27 396 |
| Deferred tax liabilities | 6.2 | 690 | 694 |
| Loan receivables | 4.4 | 248 | 287 |
| Employee benefit obligations | 2.3 | 732 | 725 |
| Other receivables | 4.4 | 6 | 0 |
| Total non-current liabilities | 28 846 | 32 441 | |
| Derivatives | 848 | 56 | |
| Deferred tax assets Current liabilities |
6.2 | 1 859 | 1 926 |
| Total non-current assets | 4.3 | 34 590 | 37 847 |
| Borrowings | 7 278 | 8 619 | |
| Lease liabilities | 4.3 | 1 644 | 1 881 |
| Current assets Advances received |
5.5 | 145 | 771 |
| Inventories | 5.2 | 44 311 | 43 538 |
| Income tax liabilities | 6.2 | 321 | 259 |
| Account and other receivables | 4.4, 5.3 | 22 342 | 25 337 |
| Account payables and other liabilities | 5.4 | 19 916 | 23 278 |
| Loan receivables | 4.4 | 80 | 100 |
| Provisions | 5.5 | 147 | 40 |
| Income tax receivable Total current liabilities Cash and cash equivalents |
6.2 4.4 |
108 29 451 7 688 |
57 34 848 5 9 525 |
| Total current asset | 74 529 | 78 557 | |
| Total liabilities | 58 297 | 67 289 | |
| Total assets | 109 119 | 116 403 | |
| Total equity and liabilities | 109 119 | 116 403 |
EQUITY AND LIABILITIES Equity attributable to owners of the parent The above consolidated balance sheet should be read in conjunction with the accompanying notes.
| A= Share capital | |||||||||
|---|---|---|---|---|---|---|---|---|---|
| B = Share premium | |||||||||
| C = Reserve for invested unrestricted equity | |||||||||
| D = Cumulative translation difference | |||||||||
| E = Fair value reserve | |||||||||
| F = Retained earnings | |||||||||
| G = Equity attributable to parent company | |||||||||
| shareholders | |||||||||
| H = Non‐controlling interest | |||||||||
| I = Total equity | |||||||||
| EUR Thousand | A | B | C | D | E | F | G | H | I |
| Equity on 1 January 2021 | 705 | 202 | 82 570 | ‐2 798 | ‐33 960 | 49 989 | 46 989 | ||
| Profit for the period | 843 | 843 | 44 | 886 | |||||
| Other comprehensive income | |||||||||
| Cash flow hedges | 45 | 45 | 45 | ||||||
| Translation difference | 1 005 | 1 005 | ‐2 | 1 003 | |||||
| Total comprehensive changes | 0 | 0 | 1 005 | 45 | 843 | 1 892 | 42 | 1 934 | |
| Share based payments to employees | ‐142 | ‐142 | ‐142 | ||||||
| Use of treasury shares in the | 94 | 94 | 94 | ||||||
| remuneration of the Board of Directors | |||||||||
| Changes in non‐controlling interests | 0 | 240 | 240 | ||||||
| Total transactions with shareholders, | |||||||||
| recognised directly in equity | 0 | 0 | ‐48 | ‐48 | 240 | 191 | |||
| Equity on 31 December 2021 | 705 | 202 | 82 570 | ‐1 793 | 45 | ‐32 896 | 48 833 | 281 | 49 114 |
| EUR Thousand | A | B | C | D | E | F | G | H | I |
|---|---|---|---|---|---|---|---|---|---|
| Equity on 1 January 2022 | 705 | 202 | 82 570 | ‐1 793 | 45 | ‐32 896 | 48 833 | 281 | 49 114 |
| Profit for the period | 820 | 820 | 66 | 886 | |||||
| Other comprehensive income | |||||||||
| Cash flow hedges | 633 | 633 | 633 | ||||||
| Translation differences | 49 | 46 | ‐8 | 41 | |||||
| Total comprehensive changes | 46 | 633 | 820 | 1 502 | 58 | 1 559 | |||
| Share based payments to employees | 46 | 46 | 46 | ||||||
| Use of treasury shares in the remuneration of the Board of Directors |
80 | 80 | 80 | ||||||
| Dividend distribution | ‐30 | ‐30 | ‐30 | ||||||
| Total transactions with shareholders, recognised directly in equity |
97 | 97 | 0 | 97 | |||||
| Equity on 31 December 2022 | 705 | 202 | 82 570 | ‐1 744 | 678 | ‐31 928 | 50 483 | 339 | 50 822 |
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
| EUR thousand | Note | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|---|
| Cash flows from operating activities | |||
| Profit before income tax | 1 338 | 751 | |
| Adjustments | |||
| Depreciation, amortization and impairment charges | 2.5 | 5 779 | 5 514 |
| Finance income and finance costs | 4.5 | 1 733 | 1 329 |
| Share-based payments to employees | 2.3 | 115 | -178 |
| Loss (+) on sale of property, plant and equipment | 2.4 | -74 | -144 |
| Other non-cash transactions | 1 122 | 553 | |
| Cash flows before changes in working capital | 10 014 | 7 826 | |
| Change in working capital | |||
| Increase (-) in account and other receivables | 2 975 | -6 452 | |
| Increase (-) / decrease (+) in inventories | -606 | -8 187 | |
| Increase (+) in account and other payables | -5 107 | 4 032 | |
| Cash flows from operating activities before financial items and | 7 277 | -2 785 | |
| taxes | |||
| Interest and other finance expenses paid | -1 250 | -1 046 | |
| Interest and other finance income received | 20 | 22 | |
| Income taxes paid | -490 | -365 | |
| Net cash inflow (outflow) from operating activities | 5 556 | -4 174 |
| Net cash inflow (outflow) from operating activities EUR thousand |
Note | 5 556 1 Jan - 31 Dec 2022 |
-4 174 1 Jan - 31 Dec 2021 |
|---|---|---|---|
| Cash flows from operating activities investing activities |
|||
| Profit before income tax Purchases of property, plant and equipment |
5.1 | 1 338 -1 194 |
-4 169 751 |
| Adjustments Purchases of intangible assets |
3.3 | -131 | -124 |
| Depreciation, amortization and impairment charges Proceeds from the sale of property, plant and equipment |
2.5 | 5 779 150 |
5 514 279 |
| Finance income and finance costs Proceeds from loan receivables |
4.5 4.4 |
1 733 119 |
1 329 129 |
| Share-based payments to employees Net cash inflow (outflow) from investing activities |
2.3 | 115 -1 057 |
-178 -3 885 |
| Loss (+) on sale of property, plant and equipment | 2.4 | -74 | -144 |
| Other non-cash transactions Cash flows from financing activities |
1 122 | 553 | |
| Cash flows before changes in working capital Distribution of dividends* |
10 014 -30 |
7 826 -9 |
|
| Changes in loans | 4.3 | -3 187 | 5 385 |
| Change in working capital Change in bank overdrafts |
4.3 | -1 480 | -478 |
| Increase (-) in account and other receivables Payment of lease liabilities |
4.3 | 2 975 -1 723 |
-6 452 -1 807 |
| Increase (-) / decrease (+) in inventories Net cash inflow (outflow) from financing activities |
-606 -6 421 |
-8 187 3 091 |
|
| Increase (+) in account and other payables | -5 107 | 4 032 | |
| Cash flows from operating activities before financial items and Net increase (+) / decrease (-) in cash and cash equivalents |
7 277 -1 921 |
-2 785 -4 968 |
|
| taxes Cash and cash equivalents at the beginning of the financial year |
4.4 | 9 525 | 14 339 |
| Exchange gains/losses on cash and cash equivalents | 84 | 154 -1 046 |
|
| Interest and other finance expenses paid Cash and cash equivalents at end of the year Interest and other finance income received |
4.4 | -1 250 7 688 20 |
9 525 22 |
Income taxes paid -490 -365 * Dividend paid in accordance with the agreement to the foundation, which is the minority owner of Robit SA
Net cash inflow (outflow) from operating activities 5 556 -4 174 The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
These are the consolidated financial statements of Robit Plc (the "Company") and its subsidiaries (together referred as "Robit", or the "Group"). Robit is a Finnish Group that sells and services drilling consumables for global customers for applications in the tunnelling, geothermal heating and cooling, construction and mining industries. Robit has 7 offices and active sales networks in over 100 countries. Robit has production units in Finland, South Korea, Australia and UK.
Robit Corporation is a publicly listed company and its shares are listed on the NASDAQ OMX Helsinki Ltd main list with trading code ROBIT. Robit Plc, the parent company of Robit is a Finnish public limited liability company. The registered address of Robit Plc is Vikkiniityntie 9, FI-33880 Lempäälä, Finland. Copies of the consolidated financial statements are available at the head office at Robit Oyj and at Robit's home pages www.robitgroup.com.
The Board of Directors of Robit Plc has approved these consolidated financial statements for issue on February 20th, 2023. Under the Finnish Limited Liability Companies Act, shareholders can approve or disapprove the consolidated financial statements in the Annual General Meeting held after the release. The Annual General Meeting is also entitled to amend the consolidated financial statements.
The consolidated financial statements of Robit have been prepared in accordance with International Financial Reporting Standards (IFRS) as adopted by the European Union, conforming with the International Accounting Standards (IAS) and IFRS standards as well as SIC and IFRIC interpretations applicable as per 31 December 2022. The notes to the consolidated financial statements also comply with the Finnish accounting and corporate legislation complementing the IFRS standards.
The consolidated financial statements of Robit have been prepared on a historical cost basis, except for the derivative financial instruments, that are measured at fair value through profit or loss. Financial statements are presented in thousands of euros. The figures presented in the financial statements are rounded and therefore the sum of individual figures may differ from the presented sum figure. Items included in the financial statements of each of the Group's subsidiaries are measured using the currency of the primary economic environment in which the subsidiary operates ('the functional currency'). The Company's functional currency is euro, which is also the presentation currency of Robit's consolidated financial statements.
Parent company Robit Plc financial statements have been prepared according to Finnish Accounting Standards (FAS).
The preparation of financial statements requires the use of estimates and assumptions that may affect the recognized amounts of assets and liabilities at the date of the financial statements. In addition, the recognized amounts of net sales and expenses during the periods presented are affected. Actual results may differ from previously made estimates. The preparation of financial statements requires the use of estimates and assumptions that may affect the recognized amounts of assets and liabilities at the date of the financial statements. In addition, the recognized amounts of net sales and expenses during the periods presented are affected. Actual results may differ from previously made estimates.
The management's assumptions and estimates can be found in the following notes: The management's assumptions and estimates can be found in the following notes:
| Key judgements and estimates | Note |
|---|---|
| Goodwill impairment testing | 3.2. |
| Fair value of the acquired assets (customer relationships and brand) | 3.1. |
| Other intangible assets (capitalized development expenses) | 3.3. |
| Inventory valuation | 5.2. |
| Deferred tax assets and liabilities | 6.2. |
| Overdue receivables | 4.6. |
Robit has focused in its financial statements on the information, which it considers to be relevant to the stakeholders and other users of financial statements. The notes to the consolidated financial statements include six sections: About the consolidated financial statements, Robit's performance, Acquisitions and intangible assets, Capital structure and financing, Operating assets and liabilities and Other Notes. Each part includes related significant accounting principles. This presentation aims at providing the reader a clear understanding of the Group's financial position and performance as well as selected accounting policies.
Robit enters into contracts with customers to supply its products, such as drill bits and casing systems. In general, these products are standardised and require only limited specifications provided by customers. Robit is responsible for the purchase or production of the products and in some cases also for their delivery. The performance obligation ends when the goods have been delivered to the customer. If the performance obligation ends based on terms of delivery only when the customer has received the goods, sales revenue is recognised at the time of receipt. The time of recognition of sales is specified by terms and conditions in the sales contract, such as based on terms of delivery or the customer's acceptance procedure.
Longer-term supply contracts covering individual purchase orders are also entered into with customers, for example for the supply of consumables for mines or projects. The performance obligations associated with these longer-term contracts are recognised based on terms of delivery at the time of delivery and are not partially recognised, for example based on the degree of completion of the projects over time, because Robit's products are consumables in nature. Return or repayment obligations are generally not associated with supply contracts. Robit is responsible for ensuring that the products meet the customer's order in terms of technical specifications and also Robit's own quality standards at the time of delivery. If a technical or qualitative problem due to Robit is identified in a product, Robit is obliged to supply to customer with replacement products. These obligations are assessed for each contract in turn, and a separate warranty provision is recognised for them (presented in Note 5.5). Because the products are consumables in nature, no long-term warranty obligations that could be payable in future financial years are associated with the products. Some customer contracts may contain a variable discount component that allows the customer to receive a quantity discount if the quantities of the original delivery contract are exceeded. In these cases, the realisation of the quantity discount is estimated for each contract in turn and deducted for sales revenue based on the most probable value. The significance of such contracts for the recognition of Robit's sales revenue is currently very minor, however. For these reasons, no significant judgmental decisions are made in the recognition of sales revenue.
Terms of payment and payment periods vary from customer to customer. The applied terms of payment and length of payment period granted to the customer are influenced by, among other things, the geographical location of the customer and the production plant and their distance from each other. In addition, the customer's terms of payment are influenced by the customer-specific credit risk, which is assessed based on the customer's geographical location, the customer's financial situation and the customer's previous payment behaviour. Typically, credit terms of payment are used with customers in cases where the performance obligation ends before payment is received from the customer. Cash discounts are generally not used but, if they are used, the cash discounts given are deducted from net sales. With some customers, an advance payment principle is applied, and the advance payments received from customers are entered in the balance sheet (disclosed in Note 5.6). Significant credit components are generally not associated with sales transactions.
Robit enters into service agreements with customers that include services such as technical support or training in addition to supplying the products. These services bring added value for the client and they are not part of the integration of products that takes place at the customer. The agreements therefore typically include more performance obligations, service and products sold. Selling prices are allocated to different performance obligations relative to their separate selling prices. Possible discounts are allocated proportionately to all performance obligations. Product sales revenue is recorded at a specific time (see above), whereas sales revenue for services is recognised over time as the customer simultaneously receives and consumes the services provided by Robit. The degree of fulfilment of a performance obligation relative to sales is measured using the output-based method, whereby the degree of fulfilment is measured based on the service provided to date.
Net sales from external customers broken down by strategic business units is shown on the table below. Net sales from external customers broken down by strategic business units is shown on the table below. Net sales by product area
| EUR thousand | 1 Jan - 31 Dec 2021 | 1 Jan - 31 Dec 2020 |
|---|---|---|
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
| Top Hammer | 66 834 | 56 287 |
| Top Hammer | 56 287 | 46 348 |
| Down the Hole | 45 128 | 44 468 |
| Top Hammer | 66 834 | 56 287 |
| Down the Hole | 44 468 | 45 283 |
| Total | 111 962 | 100 755 |
| Down the Hole | 45 128 | 44 468 |
| Total | 100 755 | 91 631 |
| Total | 111 962 | 100 755 |
Net sales by market area Net sales by market area
Net sales from external customers broken down by location of the customers is shown on the table below. Net sales by market area Net sales from external customers broken down by location of the customers is shown on the table below.
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| EUR thousand | 1 Jan - 31 Dec 2021 | 1 Jan - 31 Dec 2020 |
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
| EMEA | 48 651 | 45 298 |
| EMEA | 45 298 | 40 028 |
| Americas | 26 349 | 19 960 |
| EMEA | 48 651 | 45 298 |
| Americas | 19 960 | 14 008 |
| Asia | 11 686 | 10 771 |
| Americas | 26 349 | 19 960 |
| Asia | 10 771 | 11 397 |
| Australasia | 13 892 | 14 001 |
| Asia | 11 686 | 10 771 |
| Australasia | 14 001 | 13 654 |
| East | 11 384 | 10 725 |
| Australasia | 13 892 | 14 001 |
| East | 10 725 | 12 544 |
| East | 11 384 | 10 725 |
| Total | 111 962 | 100 755 |
| Total | 100 755 | 91 631 |
None of the Robit's customer generated more than 10 per cent of the Group's revenue for the year ended 31 December 2022 or 2021. Total 111 962 100 755
Segment information The chief operating decision-maker has been identified as Robit's board of directors. The board of directors is responsible for strategy, appointing key management positions, significant development projects, business combinations, investments, organization structure and financing. The chief operating decision-maker has been identified as Robit's board of directors. The board of directors is responsible for strategy, appointing key management positions, significant development projects, business combinations, investments, organization structure and financing. A global skilled sales and distributor organizations recognizing customer needs and requirements in addition to high quality manufacturing based on local subcontractors and global sourcing function are cornerstones of Robit's operations. In accordance with its strategy, Robit is primarily a sales company on global markets. Segment information The chief operating decision-maker has been identified as Robit's board of directors. The board of directors is responsible for strategy, appointing key management positions, significant development projects, business combinations, investments, organization structure and financing. Segment information The chief operating decision-maker has been identified as Robit's board of directors. The board of directors is responsible for strategy, appointing key management positions, significant development projects, business combinations, investments, organization structure and financing.
Robit's sales organization is divided into geographical regions (EMEA, Americas, Asia, Australasia and East). Four manufacturing units located in Finland, South Korea, Australia and UK, are common resources for business operations. These manufacturing units serve the entire sales organization bus concentrating to manufacture certain type or certain size of products.
In order to manage the efficiency of the resources, the business is divided into two strategic business units (SBU): Top Hammer and Down the Hole. The SBU's are structured around the different drilling technologies but they have substantial synergies in sales, manufacturing and sourcing. Due to the Group's structure and nature of business, the business is presented as one segment, which includes group services and other items. The board of directors regularly reviews consolidated net sales and profitability of the group. In addition, the board of directors reviews net sales of the sales regions and the strategic business units.
Materials and services recognized as an expense during the year ended 31 December 2022 amounted to EUR 73 729 thousand (2020: EUR 65 699 thousand). Materials and services include purchases of raw materials such as steel, tungsten carbide, trading products and subcontracting services inventories and changes in inventories. Materials and services recognized as an expense during the year ended 31 December 2022 amounted to EUR 73 729 thousand (2020: EUR 65 699 thousand). Materials and services include purchases of raw materials such as steel, tungsten carbide, trading products and subcontracting services inventories and changes in inventories.
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Subcontracts | -725 | -948 |
| External services | -7 046 | -5 805 |
| Sales freights | -2 429 | -2 710 |
| Sales provisions and Royalties | -350 | -586 |
| Maintenance expenses | -814 | -647 |
| Cost of sales | -62 365 | -55 003 |
| Total | -73 729 | -65 699 |
Short-term employee benefits include wages and salaries, including non-monetary benefits and annual leave compensations expected to be settled within 12 months of the reporting date. Short-term benefits are recognized in other payables in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled. Short-term employee benefits include wages and salaries, including non-monetary benefits and annual leave compensations expected to be settled within 12 months of the reporting date. Short-term benefits are recognized in other payables in respect of employees' services up to the reporting date and are measured at the amounts expected to be paid when the liabilities are settled.
Robit's pension plans are defined contribution plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity with no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to the defined contribution plans are charged directly to the statement of comprehensive income in the year to which these contributions relate. Robit's pension plans are defined contribution plans. A defined contribution plan is a pension plan under which the Group pays fixed contributions into a separate entity with no legal or constructive obligations to pay further contributions if the fund does not hold sufficient assets to pay all employees the benefits relating to employee service in the current and prior periods. Contributions to the defined contribution plans are charged directly to the statement of comprehensive income in the year to which these contributions relate.
Other long-term employee benefits are long-service leave or sabbatical leave, jubilee or other long-service benefits and long-term disability benefits. Robit has other long-term employee benefits plans in Australia (long-service leave) and in Korea (severance payment). Robit key employees are obliged to take part into a long-term incentive plan based on initial investment to Robit shares. The expense is accrued to the period, on which the employee is able to utilize the benefit. Other long-term employee benefits are long-service leave or sabbatical leave, jubilee or other long-service benefits and long-term disability benefits. Robit has other long-term employee benefits plans in Australia (long-service leave) and in Korea (severance payment).
Termination benefits are payable when employment is ter¬minated by the Group before the normal retirement date, or whenever an employee accepts voluntary redundancy in exchange for these benefits. expense is accrued to the period, on which the employee is able to utilize the benefit. Termination benefits
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Wages and salaries | -13 975 | -13 507 |
| Pension costs - defined contribution plans | -1 381 | -1 264 |
| Social security expenses | -927 | -920 |
| Share-based payments | -167 | 47 |
| Other long-term benefits | -278 | -289 |
| Other employee benefit expenses | -397 | -347 |
| Total | -17 075 | -16 280 |
Robit's number of personnel decreased in 2022 by 14 persons compared to 2021, with the total number of personnel being 259 at the end of the period under review (2021: 273). Robit's average number of personnel was 268 persons during the financial period 2022 and 267 in 2021. Robit's number of personnel decreased in 2022 by 14 persons compared to 2021, with the total number of personnel being 259 at the end of the period under review (2021: 273). Robit's average number of personnel was 268 persons during the
Robit has both defined contribution plans and defined benefit plans. All pension plans are defined contribution plans. In Australia, the employees are entitled to be paid long-service leave after 10 years of service in the same business. This arrangement is defined as other long-term employee benefit and thus defined benefit plan. Expenses related to long-service leave amounted to EUR 75 thousand for the year ended 31 December 2022 (2021: EUR 46 thousand). The liability related to long-service fee amounted to EUR 270 thousand as of 31 December 2022 (2021: EUR 257 thousand). Robit has both defined contribution plans and defined benefit plans. All pension plans are defined contribution plans. In Australia, the employees are entitled to be paid long-service leave after 10 years of service in the same business. This arrangement is defined as other long-term employee benefit and thus defined benefit plan. Expenses related to long-service leave amounted to EUR 75 thousand for the year ended 31 December 2022 (2021: EUR 46 thousand). The liability related to long-service fee amounted to EUR 270 thousand as of 31 December 2022 (2021: EUR 257 thousand).
In Korea, Robit has severance payment plan, where employees earn the benefit based on their service and the whole benefit is paid to an employee when an employment ends. During the financial year 2021, this arrangement changed from a benefit-based arrangement to a contribution-based arrangement. Expenses related to severance payment plan amounted to EUR 191 thousand for the year ended 31 December 2022 (2021: EUR 265 thousand). The employee benefit obligation recognized for severance payment plan amounted to EUR 561 thousand as of 31 December 2022 (2021: EUR 467 thousand). In Korea, Robit has severance payment plan, where employees earn the benefit based on their service and the whole benefit is paid to an employee when an employment ends. During the financial year 2021, this arrangement changed from a benefitbased arrangement to a contribution-based arrangement. Expenses related to severance payment plan amounted to EUR 191 thousand for the year ended 31 December 2022 (2021: EUR 265 thousand). The employee benefit obligation recognized for severance payment plan amounted to EUR 561 thousand as of 31 December 2022 (2021: EUR 467 thousand).
On 25 February 2020, Robit's Board of Directors decided on a new share-based incentive scheme for the Group's management and key personnel, including own investment of the key personnel in Robit shares (base share plan), reward shares by the company (matching share plan) and performance-based additional share plan (performance matching plan). The share-based incentive scheme covers 14 individuals. The company's matching shares and performance matching shares will be paid in April 2023. If all three main elements of the scheme are fulfilled in total as determined in the plan and according to the target setting of the Board of Directors of the company, the maximum amount of shares issued based on the plan will be 401,760 shares, corresponding to 2.1% of the entire current shareholding. On 25 February 2020, Robit's Board of Directors decided on a new share-based incentive scheme for the Group's management and key personnel, including own investment of the key personnel in Robit shares (base share plan), reward shares by the company (matching share plan) and performance-based additional share plan (performance matching plan). The share-based incentive scheme covers 14 individuals. The company's matching shares and performance matching shares will be paid in April 2023. If all three main elements of the scheme are fulfilled in total as determined in the plan and according to the target setting of the Board of Directors of the company, the maximum amount of shares issued based on
On 15 June 2021, Robit Plc's Board of Directors decided on a performance-based share reward scheme for key personnel. The share scheme includes earning periods of one and two years. The first earning period of the share scheme comprises the year 2021 and the second earning period comprises the years 2022–2023. The share scheme's potential reward for the one-year earning period 2021 is based on the company's predetermined EBITDA target in the financial statements for 2021. The share scheme's possible reward for the two-year earning period 2022–2023 is based on the company's predetermined average earnings per share in the financial statements for the years 2022 and 2023. The share scheme's possible reward for both earning periods will be paid in May 2024. On 15 June 2021, Robit Plc's Board of Directors decided on a performance-based share reward scheme for key personnel. The share scheme includes earning periods of one and two years. The first earning period of the share scheme comprises the year 2021 and the second earning period comprises the years 2022–2023. The share scheme's potential reward for the one-year earning period 2021 is based on the company's predetermined EBITDA target in the financial statements for 2021. The share scheme's possible reward for the two-year earning period 2022–2023 is based on the company's predetermined average earnings per share in the financial statements for the years 2022 and 2023. The share scheme's possible reward for
The share scheme covers 16 individuals. The total amount of share rewards payable on the basis of the earning periods 2021 and 2022– 2023 corresponds to a maximum of 155,000 Robit Plc shares, corresponding to 0.7% of the company's current share capital. both earning periods will be paid in May 2024. The share scheme covers 16 individuals. The total amount of share rewards payable on the basis of the earning periods 2021
On 15 February 2022, Robit Plc's Board of Directors decided on a performance-based share reward scheme for key personnel. On 24 March 2022, Robit Plc's Board of Directors decided to raise the upper limit of the share reward scheme due to the CEO change. due to the CEO change.
The share scheme includes earning periods of one and two years. The first earning period of the share scheme comprises the year 2022 and the second earning period comprises the years 2023–2024. The share scheme's potential reward for the one-year earning period 2022 is based on the company's predetermined EBITDA target in the financial statements for 2022. The share scheme's possible reward for the two-year earning period 2023–2024 is based on the company's predetermined average earnings per share in the financial statements for the years 2023 and 2024. The share scheme's possible reward for both earning periods will be paid in May 2025. the year 2022 and the second earning period comprises the years 2023–2024. The share scheme's potential reward for the one-year earning period 2022 is based on the company's predetermined EBITDA target in the financial statements for 2022. The share scheme's possible reward for the two-year earning period 2023–2024 is based on the company's predetermined average earnings per share in the financial statements for the years 2023 and 2024. The share scheme's possible reward for both earning periods will be paid in May 2025.
The share scheme covers 25 individuals. The total amount of share rewards payable on the basis of the earning periods 2022 and 2023– 2024 corresponds to a maximum of 240,000 Robit Plc shares, corresponding to 1.1% of the company's current share capital. The share scheme covers 25 individuals. The total amount of share rewards payable on the basis of the earning periods 2022 and 2023–2024 corresponds to a maximum of 240,000 Robit Plc shares, corresponding to 1.1% of the company's current
| Instrument | LTI 2020-2023 | LTI 2021-2024 | LTI 2022-2025 | Total |
|---|---|---|---|---|
| Issuing date | 30 Jun 2020 | 24 Jun 2021 | 24 Jun 2021 | |
| Initial amount, pcs | 441 760 | 157 500 | 240 000 | 839 260 |
| Dividend adjustment | No | No | No | |
| Initial allocation date | 11 Jun 2020 | 15 Jun 2021 | 2 Mar 2022 | |
| Beginning of earning period | 1 Jan 2020 | 1 Jan 2021 | 1 Jan 2021 | |
| End of earning period | 31 Dec 2021 | 31 Dec 2023 | 31 Dec 2024 | |
| Vesting date | 30 Apr 2024 | 30 Apr 2024 | 31 May 2025 | |
| Vesting conditions | Net sales | EBITDA & EPS | EBITDA & EPS | |
| Maximum contractual life, years | 3.8 | 2.9 | 3.4 | |
| Remaining contractual life, years | 1.3 | 1.4 | 2.4 | |
| Number of persons at the end of year | 14 | 16 | 25 | |
| Payment method | Cash & Equity | Cash & Equity | Cash & Equity |
Government grants relating to costs are deferred and recognized in the profit or loss over the period necessary to match them with the costs that they are intended to compensate. Accounting policies
Payments made under operating leases (net of any incentives received from the lessor) are charged to the income state¬ment on a straight-line basis over the period of the lease. Robit as lessee
As of 1 January 2019, the Group has applied the IFRS 16 standard which replaces old IAS 17 Leases-standard. Robit adopted the IFRS 16 standard from 1 January 2019, using the modified retrospective approach whereby comparative financial information is not restated. on a straight-line basis over the period of the lease. Robit as a lessor
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Operational exchange rate income | 3 945 | 1 353 |
| Other operating income | 172 | 337 |
| Total | 4 117 | 1 690 |
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Administration costs | -6 885 | -6 439 |
| Lease payments | -17 | -14 |
| Premise expenses | -1 477 | -1 279 |
| Operational exchange rate expenses | -4 121 | -1 306 |
| Other operating expenses | -3 926 | -3 832 |
| Total | -16 425 | -12 871 |
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Statutory fees | -336 | -323 |
| Tax consultancy | -57 | -29 |
| Other services | -5 | -18 |
| Total | -397 | -369 |
Ernst & Young -company portion of statutory fees is 274 thousand euros for auditing. Ernst & Young -company portion of statutory fees is 274 thousand euros for auditing.
Property, plant and equipment and other intangible assets are recognized on the balance sheet at cost less accumulated depreciations, amortizations and impairment losses, if any. Depreciation and amortization is recognized on a straightline basis to write off the cost over the estimated economic useful life of assets. The assets' useful lives are reviewed, and adjusted when necessary, at each balance sheet date. Property, plant and equipment and other intangible assets are recognized on the balance sheet at cost less accumulated depreciations, amortizations and impairment losses, if any. Depreciation and amortization is recognized on a straight-line basis to write off the cost over the estimated economic useful life of assets. The assets' useful lives are reviewed, and
Depreciation and amortization periods are disclosed in notes 3.3 and 5.1.
| EUR thousand | 1 Jan - 31 Dec 2022 |
1 Jan - 31 Dec 2021 |
|---|---|---|
| Depreciation by class | ||
| Land and water | -53 | -51 |
| Buildings and constructions | -1 584 | -1 590 |
| Machinery and equipment | -2 524 | -2 236 |
| Other tangible assts | -316 | -301 |
| Total | -4 477 | -4 178 |
Right of use asset (IFRS 16) depreciation amounted to 1 839 thousand (2021: 1 662).
| EUR thousand | Jan - 31 Dec 2022 |
1 Jan - 31 Dec 2021 |
|---|---|---|
| Amortization by class | ||
| Customer relationships and brand | -888 | -859 |
| Intangible rights | -5 | -69 |
| Other intangible assets | -409 | -408 |
| Total | -1 302 | -1 336 |
Customer relationships and brand were recognized in connection of the acquisitions. Please refer to Note 3. Customer relationships and brand were recognized in connection of the acquisitions. Please refer to Note 3.
Robit applies the acquisition method to account for business acquisitions. Identifiable assets acquired and liabilities in business acquisitions are measured initially at their fair values at the acquisition date. The fair value of the consideration transferred comprises the initial cash paid to the sellers and an estimate of any future payments Robit may be liable to pay based on future performance of the business. This latter amount is classified as contingent consideration and can be either classified as equity or a financial liability. Where settlement of any part of cash consideration is deferred the amounts payable in the future are discounted to their present value. Goodwill is initially measured as the excess of the aggregate of the consideration transferred over the net identifiable assets acquired and liabilities assumed.
Net assets acquired through business combinations are measured at fair value. The measurement of fair value of the acquired net assets is based on market value of similar assets (property, plant and equipment), or an estimate of expected cash flows (intangible assets). The valuation, which is based on prevailing repurchase value, expected cash flows or estimated sales price, requires management judgement and assumptions. The management trusts that the applied estimates and assumptions are sufficiently reliable for determining fair values.
No acquisitions in 2022.
No acquisitions in 2021.
Goodwill arises on the acquisition of subsidiaries. Goodwill represents the excess of the cost of the acquisition over the Group's interest in the net fair value of the assets and liabilities of the acquiree. Goodwill is tested annually for impairment and carried at cost less accumulated impairment losses. The allocation is made to those cash generating units or groups of cash-generating units that are expected to benefit from the business combination in which the goodwill arose.
The Group uses value in use calculations when assessing the recoverable amount. In assessing the recoverable amount, estimated future net cash flows are discounted to their present value based on the weighted average pre-tax cost of capital. The weighted average cost of capital reflects the current market view of the time value of money and risks related to the units to be tested.
An impairment loss is charged to the statement of income when the carrying amount of CGU exceeds the recoverable amount. Impairment loss is first allocated to goodwill and then to other assets on a pro rata basis. Impairment losses recognized for goodwill in the statement of income are not reversed.
The management makes significant estimates and judgements in determining the level at which the goodwill is tested and whether there are any indications of impairment.
The goodwill in the Robit's balance sheet arose mainly in June and July 2016 when Robit acquired Robit Australia and Robit GB, but also acquisition in February 2017 of Halco. Robit has re-organized its Down the Hole business and substantial savings in production and supply chain are expected to be gained. Robit has two CGU's Top Hammer and Down the Hole).
Cash flow estimates are based on management's best estimates for future net sales, cost development, general market conditions and applicable tax rates. The estimate covers following three-year period. The cash flows beyond this period are based on the estimated growth rates stated below.
Management tests the effects of changes of significant estimates used in forecasts by sensitivity analyses in a way described below.
The table below presents the movements of goodwill: The table below presents the movements of goodwill:
| EUR thousand | 2022 | 2021 |
|---|---|---|
| Carrying value on 1 January | 5 487 | 5 134 |
| Exchange differences | -284 | 353 |
| Carrying value on 31 December | 5 203 | 5 487 |
The table summarizes the allocation of goodwill to business units: The table summarizes the allocation of goodwill to business units:
| Down the hole | 5 115 | 5 399 |
|---|---|---|
| EUR thousand | 2022 | 2021 |
| Top Hammer | 88 | 87 |
| Down the hole | 5 115 | 5 399 |
| Total | 5 203 | 5 487 |
| Top Hammer | 88 | 87 |
| Total | 5 203 | 5 487 |
The goodwill of Top Hammer cash-generating unit has been tested for impairment as of December 31, 2022. The values used for the goodwill testing and their impact are presented in the table below. The goodwill of Top Hammer cash-generating unit has been tested for impairment as of December 31, 2022. The values used for the goodwill testing and their impact are presented in the table below. used for the goodwill testing and their impact are presented in the table below.
Based on the assumptions below, the recoverable amount of the Top Hammer cash-generating unit is estimated to exceed the carrying amount of tested net assets by EUR 9 137 thousand, which represents 18 % of the carrying amount of the tested assets. Based on the assumptions below, the recoverable amount of the Top Hammer cash-generating unit is estimated to exceed the carrying amount of tested net assets by EUR 9 137 thousand, which represents 18 % of the carrying amount of the the carrying amount of tested net assets by EUR 9 137 thousand, which represents 18 % of the carrying amount of the tested assets.
Management has determined the values for key assumptions used in the impairment testing of the Top Hammer cash-generating unit as follows: tested assets. Management has determined the values for key assumptions used in the impairment testing of the Top Hammer cash-Management has determined the values for key assumptions used in the impairment testing of the Top Hammer cashgenerating unit as follows:
| generating unit as follows: Assumption |
Approach used to determine values |
|---|---|
| Assumption Net sales growth Net sales growth |
The cumulative annual growth rate for the revenue is expected to be 9.2 % (2021: 7.2%) during the Approach used to determine values three-year forecast period. Net sales are expected to increase since training and development of the The cumulative annual growth rate for the revenue is expected to be 9.2 % (2021: 7.2%) during the distribution network has been targeted better as well as the Korean facility's improved performance three-year forecast period. Net sales are expected to increase since training and development of the allows more active pricing and enables growth of market share. distribution network has been targeted better as well as the Korean facility's improved performance |
| EBITDA-margin EBITDA-margin |
Average EBITDA-margin is expected to be 11.9% (2021: 11.4 %) during the three-year forecasting allows more active pricing and enables growth of market share. period. The long-term EBITDA is expected to be 12.9% (2021: 14.0 %) of the net sales. This is based on Average EBITDA-margin is expected to be 11.9% (2021: 11.4 %) during the three-year forecasting implemented measures and management's expectations for future development. period. The long-term EBITDA is expected to be 12.9% (2021: 14.0 %) of the net sales. This is based on |
| Long-term growth rate Long-term |
The long-term growth rate beyond three year forecast period is expected to be 1.5% (2021: 1.5%) per implemented measures and management's expectations for future development. annum. This in line with the expected long-term inflation rate. The long-term growth rate beyond three year forecast period is expected to be 1.5% (2021: 1.5%) per |
| Pre-tax discount growth rate rate Pre-tax discount |
The pre-tax discount rate used in impairment testing is 14.8% (2021: 13.3 %). This reflects the specific annum. This in line with the expected long-term inflation rate. risks relating to Down the Hole business and the countries in which it operates. The pre-tax discount rate used in impairment testing is 14.8% (2021: 13.3 %). This reflects the specific |
The recoverable amount of Top Hammer cash-generating unit would equal its carrying amount if any of the key assumptions were to change as follows (keeping other assumptions constant): The recoverable amount of Top Hammer cash-generating unit would equal its carrying amount if any of the key assumptions were to change as follows (keeping other assumptions constant): The recoverable amount of Top Hammer cash-generating unit would equal its carrying amount if any of the key assumptions were to change as follows (keeping other assumptions constant):
| From | To |
|---|---|
| 11,9 % | To 6,8 % |
| 12,9 % | 6,8 % 11,4 % |
| 14,8 % | 11,4 % 17,3 % 17,3 % |
| From 11,9 % 12,9 % 14,8 % |
If the long-term growth rate of the Top Hammer cash-generating unit beyond the three-year forecast period was 0.5% instead of 1.5%, the recoverable cash flow would be 6.3% higher than the carrying amount: If the long-term growth rate of the Top Hammer cash-generating unit beyond the three-year forecast period was 0.5% instead of 1.5%, the recoverable cash flow would be 4.3% lower than the carrying amount: If the long-term growth rate of the Top Hammer cash-generating unit beyond the three-year forecast period was 0.5% instead of 1.5%, the recoverable cash flow would be 4.3% lower than the carrying amount:
| Long-term growth rate exceeding the three-year forecasting period | Growth 1.5% | Growth 0.5% |
|---|---|---|
| Long-term growth rate exceeding the three-year forecasting period | Growth 1.5% | Growth 0.5% |
| Recovarable amount of cashflow exceeding carrying amount | 18,1 % | 13,8 % |
| Recovarable amount of cashflow exceeding carrying amount | 18,1 % | 13,8 % |
The goodwill of Down the Hole cash-generating unit has been tested for impairment as of December 31, 2022. The company has reorganized its Down the Hole business unit and significant efficiency and cost benefits are expected in production and the supply chain. The company has two cash flow producing units (Top Hammer and Down the Hole). The goodwill of Down the Hole cash-generating unit has been tested for impairment as of December 31, 2022. The company has reorganized its Down the Hole business unit and significant efficiency and cost benefits are expected in production and the supply chain. The company has two cash flow producing units (Top Hammer and Down the Hole). The values used for the goodwill testing and their impact are presented in the table below. The goodwill of Down the Hole cash-generating unit has been tested for impairment as of December 31, 2022. The company has reorganized its Down the Hole business unit and significant efficiency and cost benefits are expected in production and the supply chain. The company has two cash flow producing units (Top Hammer and Down the Hole). Based on the assumptions below, the recoverable amount of the Down the Hole cash-generating unit is estimated to exceed
The values used for the goodwill testing and their impact are presented in the table below. Based on the assumptions below, the recoverable amount of the Down the Hole cash-generating unit is estimated to exceed Based on the assumptions below, the recoverable amount of the Down the Hole cash-generating unit is estimated to exceed the carrying amount of tested net assets by EUR 11 094 thousand, which represents 40 % of the carrying amount of the the carrying amount of tested net assets by EUR 11 094 thousand, which represents 40 % of the carrying amount of the
Based on the assumptions below, the recoverable amount of the Down the Hole cash-generating unit is estimated to exceed the carrying amount of tested net assets by EUR 11 094 thousand, which represents 40 % of the carrying amount of the tested assets. Management has determined the values for key assumptions used in the impairment testing of the Down the Hole cash-generating unit as follows: 20 tested assets. Management has determined the values for key assumptions used in the impairment testing of the Down the Hole cashgenerating unit as follows: tested assets. Management has determined the values for key assumptions used in the impairment testing of the Down the Hole cashgenerating unit as follows: Management has determined the values for key assumptions used in the impairment testing of the Down the Hole cashgenerating unit as follows: Assumption Approach used to determine values
| Assumption Assumption |
Approach used to determine values Approach used to determine values The cumulative annual growth rate for the revenue is expected to be 10.2% (2021: 12.2 %) during the |
|---|---|
| Net sales growth Net sales growth Net sales growth |
The cumulative annual growth rate for the revenue is expected to be 10.2% (2021: 12.2 %) during the three-year forecast period. Net sales are expected to increase due to the synergies related to business The cumulative annual growth rate for the revenue is expected to be 10.2% (2021: 12.2 %) during the three-year forecast period. Net sales are expected to increase due to the synergies related to business combinations after training of the distribution networks has been completed and the steady three-year forecast period. Net sales are expected to increase due to the synergies related to business combinations after training of the distribution networks has been completed and the steady development of the market. combinations after training of the distribution networks has been completed and the steady development of the market. development of the market. Average EBITDA-margin is expected to be 11.4% (2021: 9.9%) during the three-year forecasting period. |
| EBITDA-margin EBITDA-margin EBITDA-margin Long-term |
Average EBITDA-margin is expected to be 11.4% (2021: 9.9%) during the three-year forecasting period. The long-term EBITDA is expected to be 12.9% (2021: 12.6%) of the net sales. This is based on Average EBITDA-margin is expected to be 11.4% (2021: 9.9%) during the three-year forecasting period. The long-term EBITDA is expected to be 12.9% (2021: 12.6%) of the net sales. This is based on implemented measures and management's expectations for future development. The long-term EBITDA is expected to be 12.9% (2021: 12.6%) of the net sales. This is based on implemented measures and management's expectations for future development. implemented measures and management's expectations for future development. The long-term growth rate beyond three-year forecast period is expected to be 1.5% (2021: 1.5%) per |
| Long-term growth rate Long-term growth rate growth rate Pre-tax discount |
The long-term growth rate beyond three-year forecast period is expected to be 1.5% (2021: 1.5%) per annum. This in line with the expected long-term inflation rate. The long-term growth rate beyond three-year forecast period is expected to be 1.5% (2021: 1.5%) per annum. This in line with the expected long-term inflation rate. annum. This in line with the expected long-term inflation rate. The pre-tax discount rate used in impairment testing is 14.8% (2021: 13.3%). This reflects the specific |
| Pre-tax discount rate Pre-tax discount rate rate |
The pre-tax discount rate used in impairment testing is 14.8% (2021: 13.3%). This reflects the specific risks relating to Down the Hole business and the countries in which it operates. The pre-tax discount rate used in impairment testing is 14.8% (2021: 13.3%). This reflects the specific risks relating to Down the Hole business and the countries in which it operates. risks relating to Down the Hole business and the countries in which it operates. |
The recoverable amount of Down the Hole cash-generating unit would equal the carrying amount if any of the key assumptions were to change as follows (keeping other assumptions constant): The recoverable amount of Down the Hole cash-generating unit would equal the carrying amount if any of the key assumptions were to change as follows (keeping other assumptions constant): The recoverable amount of Down the Hole cash-generating unit would equal the carrying amount if any of the key assumptions were to change as follows (keeping other assumptions constant): The recoverable amount of Down the Hole cash-generating unit would equal the carrying amount if any of the key assumptions were to change as follows (keeping other assumptions constant):
| Assumed values in goodwill impairment calculations, Down the Hole 2022 Assumed values in goodwill impairment calculations, Down the Hole 2022 |
From | To |
|---|---|---|
| Assumed values in goodwill impairment calculations, Down the Hole 2022 | From | To |
| Average EBITDA-margin during the three-year forecast period | 11.4 % | 9.6 % |
| Average EBITDA-margin during the three-year forecast period Average EBITDA-margin (exceeding the three-year forecasting period |
From 11.4 % 12.9 % |
To 9.6 % 10.7 % |
| Average EBITDA-margin during the three-year forecast period | 11.4 % | 9.6 % |
| Average EBITDA-margin (exceeding the three-year forecasting period | 12.9 % | 10.7 % |
| Pre-tax discount rate | 14.6 % | 20.1 % |
| Average EBITDA-margin (exceeding the three-year forecasting period | 12.9 % | 10.7 % |
| Pre-tax discount rate | 14.6 % | 20.1 % |
| Pre-tax discount rate | 14.6 % | 20.1 % |
If the long-term growth rate of the Down the Hole cash-generating unit beyond the three-year forecast period was 0.5% instead of 1.5%, the recoverable cash flow would be 6.0% lower than the carrying amount: If the long-term growth rate of the Down the Hole cash-generating unit beyond the three-year forecast period was 0.5% If the long-term growth rate of the Down the Hole cash-generating unit beyond the three-year forecast period was 0.5% instead of 1.5%, the recoverable cash flow would be 6.0% lower than the carrying amount: If the long-term growth rate of the Down the Hole cash-generating unit beyond the three-year forecast period was 0.5% instead of 1.5%, the recoverable cash flow would be 6.0% lower than the carrying amount:
| Long-term growth rate exceeding the three-year forecasting period | Growth 1.5% | Growth 0.5% |
|---|---|---|
| Long-term growth rate exceeding the three-year forecasting period | Growth 1.5% | Growth 0.5% |
| Long-term growth rate exceeding the three-year forecasting period | Growth 1.5% | Growth 0.5% |
| Recovarable amount of cashflow exceeding carrying amount | 40.4 % | 34.4 % |
| Recovarable amount of cashflow exceeding carrying amount | 40.4 % | 34.4 % |
Intangible assets are recognized in the balance sheet when the asset can be controlled by Robit, the expected future benefits attributable to the asset will flow to Robit and the cost of the asset can be measured reliably. An intangible asset is initially recognized at cost, comprising of its purchase price and any directly attributable expenditures. Intangible assets are carried in the balance sheet at acquisition cost less any accumulated amortization and any accumulated impairment losses.
Intangible assets are amortized using the straight-line method depending on the useful life of the asset. The appropriateness of the amortization periods and method is assessed at each balance sheet date. The useful lives for Robit's intangible assets are as follows:
| Years | |
|---|---|
| Customer relationships | 7-10 |
| Brand | 15 |
| Intangible rights | 5 |
| Other intangible assets | 5 |
Development costs are capitalized when certain criteria related to economic and technical feasibility are met, and it is expected that the product will generate future economic benefits. Capitalized development costs include mainly materials, supplies and direct labour costs. Earlier expensed development costs are not capitalized later. Intangible assets under development are not amortized, but they are tested for impairment at least annually.
Costs incurred in the development phase of a development project are capitalized as intangible assets if a number of criteria are met. Management has made judgements and assumptions when assessing whether a project meets these criteria, and on measuring the costs and the economic life as well as the future cash inflows generated by the development projects. Expected returns from capitalized development projects involve estimates and judgement from the management about the future net sales and related costs. These estimates involve risks and uncertainties, and it is possible that, following changes in circumstances, expected returns from capitalized development projects change. Robit assesses indications of impairment for capitalized development projects. The value for capitalized development projects may decrease, if the expected returns from new services change.
Key judgements and estimates related to intangible assets acquired in connection with business combinations are discussed in section Acquisitions.
| EUR thousand | Customer relation ships |
Brand | Intangible rights |
Other intangible assets |
Total |
|---|---|---|---|---|---|
| 2022 | |||||
| Cost on 1 January | 5 935 | 881 | 754 | 5 861 | 13 432 |
| Additions | 0 | 0 | 43 | 89 | 131 |
| Disposals | 0 | 0 | 0 | 0 | 0 |
| Reclassifications | 0 | 0 | 0 | 0 | 0 |
| Exchange differences | -72 | -46 | 0 | -9 | -127 |
| Cost on 31 December | 5 863 | 834 | 797 | 5 941 | 13 436 |
| Accumulated amortization and impairment on 1 January | -4 454 | -323 | -720 | -5 239 | -10 737 |
| Amortization | -830 | -58 | -5 | -409 | -1 302 |
| Disposals And impairment | 0 | 0 | 0 | 0 | 0 |
| Exchange differences | 73 | 19 | 0 | 9 | 101 |
| Accumulated amortization and impairment on 31 December | -5 211 | -362 | -726 | -5 640 | -11 938 |
| Net book amount on 1 January Net book amount on 31 December |
1 481 653 |
558 473 |
34 72 |
622 301 |
2 695 1 498 |
| EUR thousand | Customer relationships |
Brand | Intangible rights |
Other intangible assets |
Total |
|---|---|---|---|---|---|
| 2021 | |||||
| Cost on 1 January | 5 788 | 823 | 669 | 5 810 | 13 091 |
| Additions | 0 | 0 | 86 | 38 | 124 |
| Disposals | 0 | 0 | 0 | 0 | 0 |
| Reclassifications | 0 | 0 | 0 | 0 | 0 |
| Exchange differences | 147 | 58 | -1 | 13 | 217 |
| Cost on 31 December | 5 935 | 881 | 754 | 5 861 | 13 432 |
| Accumulated amortization and impairment on 1 January | -3 561 | -247 | -652 | -4 268 | -9 282 |
| Amortization | -802 | -57 | -69 | -211 | -1 336 |
| Disposals And impairment | 0 | 0 | 0 | 0 | 0 |
| Exchange differences | -92 | -19 | 1 | 0 | -119 |
| Accumulated amortization and impairment on 31 December | -4 454 | -323 | -720 | -4 478 | -10 737 |
| Net book amount on 1 January | 2 227 | 576 | 17 | 1 543 | 3 809 |
| Net book amount on 31 December | 1 481 | 558 | 34 | 1 383 | 2 695 |
Intangible assets customer relationships and brand were recognized in connection with the acquisitions of Robit Australia and Robit GB in 2016. Intangible rights include mainly patents. Robit aims to continue to strengthen its existing patent and intellectual property portfolio by acquiring and licensing strategic patents, other intellectual property rights and technologies. Other intangible assets inclue capitalised development costs and IT software. and Robit GB in 2016. Intangible rights include mainly patents. Robit aims to continue to strengthen its existing patent and intellectual property portfolio by acquiring and licensing strategic patents, other intellectual property rights and technologies. Other intangible assets inclue capitalised development costs and IT software. Research and development
Robit continues to invest in its own product development projects and in collective product development projects in the industry in order to secure a competitive and innovative offering. Total costs relating to research and development recognized to the consolidated statement of comprehensive income were EUR 223 thousand in 2022 and EUR 436 thousand in 2021. Capitalized development expenses in the balance sheet amounted to EUR 436 thousand as of December 31st 2022 (2021: EUR 436 thousand). 23 Robit continues to invest in its own product development projects and in collective product development projects in the industry in order to secure a competitive and innovative offering. Total costs relating to research and development
Robit's equity consists of share capital, share premium, the reserve for invested unrestricted equity, translation differences, and retained earnings. Changes in treasury shares owned by Robit are recorded in the retained earnings. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds. Accounting policy Robit's equity consists of share capital, share premium, the reserve for invested unrestricted equity, translation differences, and retained earnings. Changes in treasury shares owned by Robit are recorded in the retained earnings. Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds.
Dividend distribution to the Company's shareholders is recognized as a liability in the Group's financial statements in the period in which the dividends are approved by the Company's shareholders. Dividend distribution to the Company's shareholders is recognized as a liability in the Group's financial statements in the period in which the dividends are approved by the Company's shareholders.
Ordinary shares are classified as equity. The parent company has one share class, and each share has equal right to dividend. Each share carries one vote at the general meeting. All shares issued by the parent company are fully paid. The shares have no nominal value. Each share carries one vote at the general meeting. All shares issued by the parent company are fully paid. The shares have no nominal value.
The table below presents the number of outstanding shares for the reported periods: The table below presents the number of outstanding shares for the reported periods:
| Shares | Number |
|---|---|
| At 1 Jan 2021 | 21 058 936 |
| Use of treasury shares to management compensation | 13 000 |
| Use of treasury shares to BoD compensation | 19 500 |
| At 31 Dec 2021 | 21 091 436 |
| Use of treasury shares to management compensation | 4 283 |
| Use of treasury shares to BoD compensation | 31 873 |
| At 31 Dec 2022 | 21 127 592 |
The amounts included in the share premium fund relate to share issues in accordance with the previous Finnish Limited Liability Companies Act, which was in force until 31 August 2006, whereby the share premium account was credited with the amounts in excess of the then current nominal value of the shares that were paid by shareholders in connection with share issues. The amounts included in the share premium fund relate to share issues in accordance with the previous Finnish Limited Liability Companies Act, which was in force until 31 August 2006, whereby the share premium account was credited with the amounts in excess of the then current nominal value of the shares that were paid by shareholders in connection with
The table below shows the changes in own shares during the reporting periods: The table below shows the changes in own shares during the reporting periods:
| Shares | Number |
|---|---|
| On 1 Jan 2021 | 120 964 |
| Use of treasury shares to management compensation | -13 000 |
| Use of treasury shares to BoD compensation | -19 500 |
| On 31 Dec 2021 | 88 464 |
| Use of treasury shares to management compensation | -4 283 |
| Use of treasury shares to BoD compensation | -31 873 |
| On 31 Dec 2022 Reserve for invested unrestricted equity |
52 308 |
Under the Finnish Companies Act, the subscription price of new shares is credited to the share capital, unless it is provided in the share issue resolution that it is to be credited in full or in part to the invested unrestricted equity reserve. Contributions to the reserve for invested unrestricted equity can also be made without share issues. in the share issue resolution that it is to be credited in full or in part to the invested unrestricted equity reserve. Contributions to the reserve for invested unrestricted equity can also be made without share issues.
Part of the Board of Directors yearly compensation was paid with Robit's treasury shares in 2022 and 2021.
The annual general meeting resolution March 22, 2022 was not pay dividend in 2021. The annual general meeting resolution March 25, 2021 was not pay dividend in 2020. The annual general meeting resolution March 22, 2022 was not pay dividend in 2021. The annual general meeting resolution March 25, 2021 was not pay dividend in 2020.
| EUR thousand | 2022 | 2021 |
|---|---|---|
| Fair value reserve on January 1st | 45 | 0 |
| Cash flow hedges | ||
| Change in fair value recognized in other comprehensive income | ||
| Interest rate swaps | 848 | 56 |
| Amount reclassified to profit or loss | ||
| Interest rate swaps | ||
| Tax effect | 170 | 11 |
| Fair value reserve on December 31st | 678 | 45 |
Basic earnings per share is calculated by dividing the profit attributable to owners of the parent company by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated on the same basis as Basic EPS except that it reflects the impact of any potential commitments the Group has to issue shares in the future. Basic earnings per share is calculated by dividing the profit attributable to owners of the parent company by the weighted average number of ordinary shares outstanding during the year. Diluted EPS is calculated on the same basis as Basic EPS except that it reflects the impact of any potential commitments the Group has to issue shares in the future.
The Group did not have any instruments that would have dilutive impact on the earnings per share as of 31 December 2021 or 2020. 2021 or 2020.
| 1 Jan – 31 Dec 2022 1 Jan – 31 Dec 2021 | ||
|---|---|---|
| Profit attributable to the owners of the parent company (euros) | 819 479 | 842 503 |
| Weighted average number of shares (number of shares) | 21 094 507 | 21 051 891 |
| Basic and diluted earnings per share | 0,04 | 0,04 |
Borrowings are recognized initially at fair value, net of transaction costs incurred, and are subsequently carried at amortised cost. Borrowings are recognized initially at fair value, net of transaction costs incurred, and are subsequently carried at amortised
Transaction costs are amortized over the term of the loan and recognized as finance cost as part of interest expense using effective interest rate method. Borrowings are derecognized when loan has been repaid or liability has been extinguished for example in connection with refinancing. Transaction costs are amortized over the term of the loan and recognized as finance cost as part of interest expense using effective interest rate method. Borrowings are derecognized when loan has been repaid or liability has been extinguished for example in connection with refinancing.
Borrowings are recognized as current liabilities unless the Group has an unconditional right to defer the settlement of the liability for at least 12 months after the end of reporting period. Borrowings are recognized as current liabilities unless the Group has an unconditional right to defer the settlement of the liability for at least 12 months after the end of reporting period.
The benefit of a government loan (Business Finland loan) at a below market rate of interest is treated as a government grant. The loan itself is accounted for as described above. However, those government loans that have been withdrawn before the date of transition to IFRS are recorded at their nominal value in accordance with the transitional provisions of IFRS 1. The benefit of a government loan (Business Finland loan) at a below market rate of interest is treated as a government grant. The loan itself is accounted for as described above. However, those government loans that have been withdrawn before the date of transition to IFRS are recorded at their nominal value in accordance with the transitional provisions of
Carrying amounts of the borrowings: Carrying amounts of the borrowings:
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| Non-current borrowings | ||
| Loans from credit institutions | 22 073 | 25 182 |
| Other loans | 11 | 27 |
| Lease contract liabilities | 5 338 | 5 813 |
| Total non-current borrowings | 27 423 | 31 022 |
| Total borrowings | 36 345 | 41 522 |
|---|---|---|
| Total current borrowings | 8 922 | 10 500 |
| Lease contract liabilities | 1 669 | 1 881 |
| Bank overdrafts | 1 782 | 3 262 |
| Other loans | 0 | 170 |
| Loans from credit institutions | 5 471 | 5 187 |
| Current borrowings |
The Group's management has determined that there is no material difference between the borrowings' carrying value and fair value because significant part of Robit's loans are with variables interest rate. There have not been significant changes in interest rates since the issue date of the loans and margins of loans are considered to reflect different conditions and the subordination of the loans with reasonable accuracy. The management has assessed that there have not been significant changes in credit risk since the loans were drawn-down. The Group's management has determined that there is no material difference between the borrowings' carrying value and fair value because significant part of Robit's loans are with variables interest rate. There have not been significant changes in interest rates since the issue date of the loans and margins of loans are considered to reflect different conditions and the subordination of the loans with reasonable accuracy. The management has assessed that there have not been significant changes in credit risk since the loans were drawn-down.
A credit facility, totalling EUR 27.5 million, of which EUR 22.0 million is secured by a negative pledge that imposes on Robit certain covenants and limitations regarding additional loans. The negative pledge states that (subject to certain exceptions) Robit will not provide any other security over its assets, and will ensure that the following financial performance measures (the original terms of the financing agreement) are met: A credit facility, totalling EUR 27.5 million, of which EUR 22.0 million is secured by a negative pledge that imposes on Robit certain covenants and limitations regarding additional loans. The negative pledge states that (subject to certain exceptions)
Robit Plc agreed in June 2021 on the restructuring of EUR 30.0 million in loans with its main financing bank and of that EUR 30.0 million EUR 26.5 million was drawn and converted old loans. The net debt/EBITDA ratio according to the financing agreement at the next covenant review date on 31 December 2022 must not exceed 3.5. Robit amortized its loans by EUR 1.5 million in the end of June 2022 and by EUR 1.5 million at the end of December 2022. The interest rate margin on the financing agreement is 2.15%. Robit has EUR 7.7 million in cash assets at its disposal on 31 December 2022 and according to management estimates, will be able to meet its loan amortization obligations and liquidity.
Other loans from financial institutions includes mainly variable rate bank loans. Information regarding guarantees for the loans can be found in note 4.7.
Other loans are Business Finland interest subsidized loans for Robit's research and development projects. The loans have an interest rate lower than the market rate.
The Group had EUR 1 782 thousand liability as of 31 December 2021 (2021: EUR 3 262 thousand) related to its credit facility agreement including a Finnish overdraft account. The limit of the bank overdraft on 31 December 2021 was EUR 6 000 thousand (2021: EUR 6 000 thousand).
Lease liabilities are secured as the rights to the leased asset revert to the lessor in the event of default:
Lease liabilities are reported as use of asset liabilities with bank financing.
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| Cash and cash equivalents | -7 688 | -9 525 |
| Current loans | 8 922 | 10 500 |
| Non-current loans | 27 423 | 31 022 |
| Net debt | 28 657 | 31 996 |
| Cash | -7 688 | -9 525 |
| Gross debt - fixed interest rate | 5 845 | 188 |
| Gross debt - variable interest rate | 30 500 | 41 522 |
| Net debt | 28 657 | 31 996 |
| 2022 | Current leases | Non current leases |
Current loans |
Non-current loans |
Total |
|---|---|---|---|---|---|
| Debt on January 1st | 1 881 | 5 813 | 8 619 | 25 209 | 41 522 |
| Cash flows | -1 723 | 0 | -3 455 | 0 | 28 -5 178 |
| Changes in lease agreements | 1 487 | -475 | 0 | 0 | 1 012 |
| Other | 0 | 0 | 3 758 | 2 214 | 5 972 |
| Total | 1 644 | 5 338 | 8 922 | 27 423 | 43 327 |
| 2021 | Current leases | Non current leases |
Current loans |
Non-current loans |
Total |
|---|---|---|---|---|---|
| Debt on January 1st | 1 479 | 5 312 | 9 589 | 19 101 | 35 481 |
| Cash flows | -1 838 | 0 | -3 455 | 0 | -5 293 |
| Changes in lease agreements | 2 240 | 501 | 0 | 0 | 2 741 |
| Other | 0 | 0 | 2 484 | 6 108 | 8 593 |
| Total | 1 881 | 5 813 | 8 619 | 25 209 | 41 522 |
The Group classifies all its financial assets in category "loans and receivables". The classification depends on the purpose for which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Accounting policies The Group classifies all its financial assets in category "loans and receivables". The classification depends on the purpose for
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are included in current assets, except for maturities greater than 12 months after the end of the reporting period. These are classified as non-current assets. The Group's loans and receivables are included in the consolidated balance sheet lines "Cash and cash equivalents", "Loan receivables", "Account and other receivables" and "Other receivables" (non-current). which the financial assets were acquired. Management determines the classification of its financial assets at initial recognition. Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. Loans and receivables are included in current assets, except for maturities greater than 12 months after the end of the reporting period. These are classified as non-current assets. The Group's loans and receivables are included in
Loans and receivables at amortised cost mainly consist of accounts receivable and cash and cash equivalents that are not quoted in an active market and that are not kept for trading purposes. Loans and receivables are measured initially at fair value plus transaction costs, if any, and subsequently, at amortised cost using the effective interest method. An impairment loss is recognized in the statement of comprehensive income if the carrying value of the loan receivable is higher than the estimated recoverable amount. "Other receivables" (non-current). Loans and receivables at amortised cost mainly consist of accounts receivable and cash and cash equivalents that are not quoted in an active market and that are not kept for trading purposes. Loans and receivables are measured initially at fair value plus transaction costs, if any, and subsequently, at amortised cost using the effective interest method. An
The Group uses derivative contracts to hedge interest rate risk. Derivative contracts are initially recognized at fair value and subsequently at fair value. Changes in the fair value of derivative contracts are recognized in financial items through profit or loss, unless they are designated as hedging instruments, in which case they are hedged in accordance with hedge accounting. Derivatives The Group uses derivative contracts to hedge interest rate risk. Derivative contracts are initially recognized at fair value and subsequently at fair value. Changes in the fair value of derivative contracts are recognized in financial items through
Hedge accounting can be used to reduce the volatility due to fair value measurement in the income statement. In this case, the asymmetry between the hedging instrument and the hedged item is eliminated when both affect the income statement simultaneously. When starting a hedging relationship subject to hedge accounting, the Group prepares a determination of the hedging relationship. the objective of risk management and the strategy for taking hedging. profit or loss, unless they are designated as hedging instruments, in which case they are hedged in accordance with hedge accounting. Hedge accounting can be used to reduce the volatility due to fair value measurement in the income statement. In this case, the asymmetry between the hedging instrument and the hedged item is eliminated when both affect the income statement simultaneously. When starting a hedging relationship subject to hedge accounting, the Group prepares a
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| Carrying amounts of loans and receivables | ||
| Loan receivables | 80 | 100 |
| Account and other receivables | 22 342 | 25 337 |
| Cash and cash equivalents | 7 688 | 9 525 |
| Total current | 30 110 | 34 962 |
| Loan receivables | 248 | 287 |
| Other receivables | 848 | 56 |
| Total non-current | 1 095 | 344 |
| Total | 31 205 | 35 305 |
Loan receivables previously reported as share loan receivables amounted to EUR 80 thousand as of 31 December 2022 (2021: EUR 182 thousand). In previous years Robit has issued shares to its key employees and has promissory notes to enable them to pay the share subscriptions. The interest rate used is the reference rate set by the Finnish Ministry of Finance every six months. Interest is paid two times a year. No margin has been added to the reference rate. The amount of interest subsidy is recognized as other operating expenses. In connection with the 2020 long term incentive plan and share issuance to key personnel, the company granted loans for the payment of share subscription. The payment period for these loans is 8 years and the interest rate is 12-month Euribor plus a margin of 0.99%. Loan receivables are measured at amortised cost because the criteria below are met: to key personnel, the company granted loans for the payment of share subscription. The payment period for these loans is 8 years and the interest rate is 12-month Euribor plus a margin of 0.99%. Loan receivables are measured at amortised cost because the criteria below are met:
Account and other receivables are described more detailed in note 5.3. Account and other receivables. Account and other receivables are described more detailed in note 5.3. Account and other receivables.
Cash and cash equivalents consist of cash at hand and deposits held at call with banks. Cash and cash equivalents consist of cash at hand and deposits held at call with banks.
| hedges | Notional amount | Fair value assets | Fair value liabilities |
|---|---|---|---|
| Interest rate swaps | |||
| Interest rate swap, EUR thousand | 10.000 | 848 | 0 |
| Derivatives designated as cash flow hedges |
Notional amount | Fair value assets | Fair value liabilities |
|---|---|---|---|
| Interest rate swaps | |||
| Interest rate swap, EUR thousand | 10.000 | 56 | 0 |
The fair values of interest rate swaps and interest rate derivatives are determined as the present value of the future cash flows based on market interest rates on the reporting date. The fair values of interest rate swaps and interest rate derivatives are determined as the present value of the future cash flows based on market interest rates on the reporting date.
| Maturity | ||||||
|---|---|---|---|---|---|---|
| Interest rate swaps | 2023 | 2024 | 2025 | 2026 | 2027- | Total |
| Hedged item: Floating rate EUR loan | ||||||
| Notional amount, EUR thousand | 10.000 | 10.000 | ||||
| Average fixed rate | 0.325 % | 0.325 % |
| Maturity | ||||||
|---|---|---|---|---|---|---|
| Interest rate swaps | 2022 | 2023 | 2024 | 2025 | 2026- | Total |
| Hedged item: Floating rate EUR loan | ||||||
| Notional amount, EUR thousand | 10.000 | 10.000 | ||||
| Average fixed rate | 0.325 % | 0.325 % |
| EUR thousand | 2022 | 2021 |
|---|---|---|
| Notional amount | 10 000 | 10 000 |
| Assets | ||
| Carrying amount | 848 | 56 |
| Line item in the statement of financial position | Trade and other receivables | Trade and other receivables |
| Liabilities | ||
| Carrying amount | 0 | 0 |
| Line item in the statement of financial position | Trade and other payables | Trade and other payables |
| Change in value for recognizing hedge ineffectiveness | ||
| Hedged item | -848 | -56 |
| Hedged instrument | 848 | 56 |
| Effective portion | ||
| Amount recognized in other comprehensive income | 633 | 45 |
| Amount reclassified from the fair value reserve to profit | ||
| or loss | 0 | 0 |
| Line item in the income statement | Financial items | Financial items |
Finance costs consist of interest expenses on bank loans, bank overdrafts and other loans, foreign exchange losses on financing activities. Finance costs consist of interest expenses on bank loans, bank overdrafts and other loans, foreign exchange losses on financing activities.
Transaction costs related to loans are expensed in profit or loss using effective interest rate method. The effective interest rate is the rate that discounts the estimated future payments through the expected life of a loan to the net carrying amount of the financial liability. The calculation includes all fees paid by the contracting parties and transaction costs. Transaction costs related to loans are expensed in profit or loss using effective interest rate method. The effective interest rate is the rate that discounts the estimated future payments through the expected life of a loan to the net carrying amount of the financial liability. The calculation includes all fees paid by the contracting parties and transaction costs.
Interest income is recognized using the effective interest rate, unless the receipt of interest is uncertain. In such cases the interest income is accounted for on a cash basis. Foreign exchange gains and losses on financing activities are recognized within finance income or costs. Interest income is recognized using the effective interest rate, unless the receipt of interest is uncertain. In such cases the interest income is accounted for on a cash basis. Foreign exchange gains and losses on financing activities are recognized within finance income or costs.
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Finance income | ||
| Foreign exchange gains on financing activities | 2 257 | 912 |
| Other finance income | 13 | 10 |
| Interest income on cash equivalents | 7 | 1 |
| Finance income total | 2 277 | 924 |
| Finance cost | ||
| Foreign exchange losses on financing activities | -2 410 | -844 |
| Interest expenses on borrowings | -1 256 | -1 150 |
| Interest expense on deferred consideration | -37 | -55 |
| Other finance costs | -307 | -204 |
| Finance cost total | -4 010 | -2 253 |
| Finance income and costs total | -1 733 | -1 329 |
The Group's activities expose it to a variety of financial risks: market risk (including foreign exchange risk and cash flow interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses to seek to identify and mitigate potential risks arising from financial markets, customer transactions and liquidity requirements.
Risks are identified, assessed and mitigated as a part of daily management routines. Majority of Group financing is done by Robit Plc, minor investments or working capital needs may be financed locally.
The Board of Directors provides principles for overall risk management, as well as policies covering specific areas, such as foreign exchange risk, interest rate risk, credit risk and use of derivative financial instruments. (a) Market risk
(a) Market risk (i) Foreign exchange risk
The following table demonstrates the sensitivity to a reasonably possible change in the functional currency against the quote currency, with all other variables held constant, of the Group's profit before tax and equity due to changes in the fair value of financial assets and liabilities. A reasonably possible change is assumed to be a 10% functional currency appreciation or depreciation against the quote currency. A change of a different magnitude can also be estimated fairly accurately because the sensitivity is nearly linear. The following table demonstrates the sensitivity to a reasonably possible change in the functional currency against the quote currency, with all other variables held constant, of the Group's profit before tax and equity due to changes in the fair value of financial assets and liabilities. A reasonably possible change is assumed to be a 10% functional currency appreciation or depreciation against the quote currency. A change of a different magnitude can also be estimated fairly accurately because the sensitivity is nearly linear. of financial assets and liabilities. A reasonably possible change is assumed to be a 10% functional currency appreciation or depreciation against the quote currency. A change of a different magnitude can also be estimated fairly accurately because the sensitivity is nearly linear.
| Functional currency 31 December 2022 |
Functional currency 31 December 2021 |
||||
|---|---|---|---|---|---|
| 10 % stronger | 10 % weaker Functional currency |
10 % stronger | 10 % weaker Functional currency |
||
| EUR thousand | Income statement 10 % stronger |
10 % weaker | Income statement Income statement Income statement 10 % stronger |
10 % weaker | |
| Functional currency/Quote currency EUR thousand |
Income statement | Income statement Income statement Income statement | |||
| EUR/USD Functional currency/Quote currency |
-1 580 | 1 580 | -814 | 814 | |
| EUR/AUD EUR/USD |
-4 -1 580 |
4 1 580 |
7 -814 |
-7 814 |
|
| EUR/GBP EUR/AUD |
-69 -4 |
69 4 |
188 7 |
-188 -7 |
|
| EUR/WON EUR/GBP |
669 -69 |
-669 69 |
643 188 |
-643 -188 |
|
| EUR/ZAR EUR/WON |
-376 669 |
376 -669 |
-264 643 |
264 -643 |
|
| EUR/RUB EUR/ZAR |
0 -376 |
0 376 |
-121 -264 |
121 264 |
|
| EUR/RUB | 0 | 0 | -121 | 121 |
The Group's interest rate risk arises from long-term borrowings. Majority of the Group's loans are with variables interest rate which expose the Group to cash flow interest rate risk. During the presented periods, the Group's borrowings at variable rate were denominated in euro and South Korean Won. (ii) Cash flow interest rate risk (ii) Cash flow interest rate risk The Group's interest rate risk arises from long-term borrowings. Majority of the Group's loans are with variables interest rate which expose the Group to cash flow interest rate risk. During the presented periods, the Group's borrowings at variable
On 31 December 2022, if interest rates had been 50 basis points higher with all other variables held constant, post-tax profit for the year would have been EUR 132 thousand lower as a result of higher interest expense on floating rate interest-bearing liabilities. Conversely, if interest rates had been 50 basis points lower with all other variables held constant, post-tax profit for the year would have been EUR 132 thousand higher as a result of lower interest expense on floating rate interest-bearing liabilities. Interest rate sensitivity has been calculated by shifting the interest curve by 50 basis points. The interest position includes all external variable rate interest-bearing liabilities. rate which expose the Group to cash flow interest rate risk. During the presented periods, the Group's borrowings at variable rate were denominated in euro and South Korean Won. On 31 December 2022, if interest rates had been 50 basis points higher with all other variables held constant, post-tax profit for the year would have been EUR 132 thousand lower as a result of higher interest expense on floating rate interest-bearing liabilities. Conversely, if interest rates had been 50 basis points lower with all other variables held constant, post-tax profit for the year would have been EUR 132 thousand higher as a result of lower interest expense on floating rate interest-bearing On 31 December 2022, if interest rates had been 50 basis points higher with all other variables held constant, post-tax profit for the year would have been EUR 132 thousand lower as a result of higher interest expense on floating rate interest-bearing liabilities. Conversely, if interest rates had been 50 basis points lower with all other variables held constant, post-tax profit for the year would have been EUR 132 thousand higher as a result of lower interest expense on floating rate interest-bearing liabilities. Interest rate sensitivity has been calculated by shifting the interest curve by 50 basis points. The interest position
| includes all external variable rate interest-bearing liabilities. | 31 December 2022 Interest rate |
31 December 2021 Interest rate |
|||
|---|---|---|---|---|---|
| EUR thousand Impact of interest change EUR thousand |
0,5 % higher Income statement 0,5 % higher -132 Income statement |
31 December 2022 0,5 % higher Interest rate Income statement 0,5 % higher 132 Income statement |
31 December 2021 0,5 % higher Interest rate Income statement 0,5 % higher -152 Income statement |
0,5 % matalampi Tuloslaskelma 0,5 % matalampi 152 Tuloslaskelma |
Credit risk arises mainly from cash and cash equivalents and credit exposures to customers from outstanding receivables. Credit risk on cash and cash equivalents is managed at group level. Cash and cash equivalents are held in reputable mainly Nordic banks. Each local entity is responsible for managing the credit risk for their account receivables balances. The local entities have the responsibility to analyse the credit standing of each of their new clients before standard payment and delivery terms and conditions are offered.
Before accepting a customer, the customer's ability to pay the purchase transactions is carefully estimated through analysing customer's financial statements and current market position. Credit risk countering payment methods such as letter of credit and advance payments are used in high-risk regions. The Group has been able to collect also significantly overdue receivables eventually. Before accepting a customer, the customer's ability to pay the purchase transactions is carefully estimated through analysing customer's financial statements and current market position. Credit risk countering payment methods such as letter of
The maximum exposure to the credit risk at the reporting dates are the carrying values of each class of financial assets mentioned above. receivables eventually.
The Group applies the simplified approach defined in IFRS 9 for the recognition of expected credit losses, according to which lifetime expected losses can be recognised for all trade receivables. Key judgements and estimates - Overdue receivables The Group applies the simplified approach defined in IFRS 9 for the recognition of expected credit losses, according to
For the purpose of determining expected credit losses, trade receivables are classified on the basis of shared credit risk characteristics and delayed payment. Expected loss rates are based on sales payment profiles over a 12-month period before 31 December 2021 and on actual credit losses incurred during that period. Actual loss rates are adjusted to reflect current and future-oriented information and macroeconomic factors that affect the ability of customers to make a payment of receivables. which lifetime expected losses can be recognised for all trade receivables. For the purpose of determining expected credit losses, trade receivables are classified on the basis of shared credit risk characteristics and delayed payment. Expected loss rates are based on sales payment profiles over a 12-month period before 31 December 2021 and on actual credit losses incurred during that period. Actual loss rates are adjusted to reflect current and future-oriented information and macroeconomic factors that affect the ability of
The aging of the account receivables including bad debt provision deducted is as follows: The aging of the account receivables including bad debt provision deducted is as follows:
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| Not due | 15 113 | 17 231 |
| Overdue by | ||
| Less than 30 days | 2 542 | 2 200 |
| 30-60 days | 960 | 597 |
| 61-90 days | 191 | 271 |
| More than 90 days | 451 | 924 |
| Total | 19 257 | 21 223 |
The Group only has one type of financial assets subject to the expected credit loss model: trade receivables from sales of product and maintenance services. Although cash and cash equivalents and liabilities recognised at amortised cost are also subject to impairment testing under IFRS 9, the impairment loss observed is not material. The Group only has one type of financial assets subject to the expected credit loss model: trade receivables from sales of product and maintenance services. Although cash and cash equivalents and liabilities recognised at amortised cost are also subject to impairment testing under IFRS 9, the impairment loss observed is not material.
On the basis of this, entries reducing the carrying amount of trade receivables were made, amounting to EUR 529 thousand in financial year 2022 and EUR 836 thousand in 2021. For the calculation of the impairment of trade receivables, see Note 5.3. On the basis of this, entries reducing the carrying amount of trade receivables were made, amounting to EUR 529 thousand in financial year 2022 and EUR 836 thousand in 2021. For the calculation of the impairment of trade receivables, see Note 5.3.
Cash flow forecasting is performed in the Group's finance function. Group finance function monitors the Group's liquidity requirements monthly to ensure it has sufficient cash to meet operational needs while maintaining sufficient headroom on its undrawn committed facilities at all times. Cash and cash equivalents amounted to EUR 7 688 thousand as of 31 December 2022 (2021: EUR 9 525 thousand). Operating cash flows and liquid funds are the main source of financing for the future payments together with possible new debt or equity financing.
Covenants on the Group's interest-bearing financial liability drawn-down in 2021 are monitored regularly. The financial covenants are the equity ratio and the net debt in relation to EBITDA. The minimum equity ratio is agreed to be 32,5%. Minimum net debt to EBITDA ratio was defined to be 3.5 on 31 December 2022 review date. The net interest-bearing debt/EBITDA ratio according to the financing agreement must not exceed 3.2. Robit Plc met the terms of the financing agreement on 31 December 2022. The Group's equity ratio 46.5 % as of 31 December 2022 (2021: 42.2%) is strong and the Group is able to draw external
The Group's equity ratio 46.5 % as of 31 December 2022 (2021: 42.2%) is strong and the Group is able to draw external financing in case that operational cash flows are not sufficient. The Group does not invest actively surplus cash held. The Group's target is to achieve both organic and structural growth and cash balances are directed to those purposes. Group's target is to achieve both organic and structural growth and cash balances are directed to those purposes. The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the
The table below analyses the Group's non-derivative financial liabilities into relevant maturity groupings based on the remaining period at the balance sheet date to the contractual maturity date. The amounts disclosed in the table are the contractual undiscounted cash flows. contractual undiscounted cash flows.
| EUR thousand | Less than 6 months |
6 – 12 months |
Between 1 and 2 years |
Between 2 and 5 years |
Over 5 years |
Total contractual cash flows |
Carrying amount (assets)/ liabilities |
|---|---|---|---|---|---|---|---|
| 31-Dec-22 | |||||||
| Financial liabilities | |||||||
| Account payables | 15 643 | 0 | 0 | 0 | 0 | 15 643 | 15 643 |
| Lease liabilities | 851 | 851 | 1 433 | 3 371 | 1 684 | 8 189 | 7 007 |
| Loans from credit institutions | 3 208 | 2 223 | 3 232 | 16 146 | 2 735 | 27 545 | 27 535 |
| Bank overdrafts | 1 782 | 0 | 0 | 0 | 0 | 0 | 1 782 |
| Other loans | 0 | 11 | 0 | 0 | 0 | 11 | 11 |
| Total financial liabilities | 21 484 | 3 086 | 4 665 | 19 517 | 4 419 | 51 389 | 51 978 |
| EUR thousand | Less than 6 months |
6 – 12 months |
Between 1 and 2 years |
Between 2 and 5 years |
Over 5 years |
Total contractual cash flows |
Carrying amount (assets)/ liabilities |
|---|---|---|---|---|---|---|---|
| 31-Dec-21 | |||||||
| Financial liabilities | |||||||
| Account payables | 17 458 | 0 | 0 | 0 | 0 | 17 458 | 17 458 |
| Lease liabilities | 974 | 974 | 1 434 | 3 457 | 2 363 | 9 203 | 7 879 |
| Loans from credit institutions | 3 288 | 1 898 | 3 387 | 19 117 | 2 678 | 30 369 | 30 369 |
| Bank overdrafts | 3 262 | 0 | 0 | 0 | 0 | 3 262 | 3 262 |
| Other loans | 85 | 85 | 17 | 0 | 0 | 197 | 197 |
| Total financial liabilities | 25 067 | 2 957 | 4 849 | 22 574 | 5 042 | 60 488 | 59 165 |
Robit defines capital as equity plus borrowings, as shown on the balance sheet per 31 December 2022, EUR 86 827 thousand (2021 EUR 82 942 thousand). Robit's capital management's target is to keep capital structure that supports the business by ensuring the operating conditions and to increase shareholder value by aiming at a competitive return on invested capital. The capital structure shall take into account both current and future business needs, as well as ensure competitive cost of financing. Robit board monitors equity ratio and net interest-bearing debt to EBITDA ratio. The equity ratio is calculated as shareholders' equity divided by total assets less advances received.
The capital structure can be affected, among other things, by the dividend distribution and share issues. If necessary, Robit has the opportunity to acquire own shares and to issue new shares in accordance with mandates by General Meeting. The Group's equity ratio was 46.5 (2020: 42.2) per cent and the ratio of net debt to adjusted EBITDA was 3.2 as of 31 December 2022.
Cooperation with banks is based on long-term banking relationships. In the long-term, goal is to service Robit's loan obligations by operating cash flow. During the phase of rapid growth, capital may be acquired both equity and debt financing terms.
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| Guarantees and mortgages given on own behalf: | ||
| Enterprise mortgages | 41 012 | 41 069 |
| Real estate mortgages | 7 414 | 7 136 |
| Total | 48 425 | 48 205 |
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
| Other guarantee liabilities | 49 | 80 |
| Total | 49 | 80 |
Robit leases factory buildings and land areas in Australia, UK and Korea under non-cancellable operating lease agreements. Robit leases also some office space under non-cancellable operating lease agreements. The lease terms vary from one year to twenty years. Robit leases factory buildings and land areas in Australia, UK and Korea under non-cancellable operating lease agreements. Robit leases also some office space under non-cancellable operating lease agreements. The lease terms vary from one
Robit also leases cars, office equipment and forklifts under non-cancellable operating lease agreements where the lease term varies from one year to five years. year to twenty years. Robit also leases cars, office equipment and forklifts under non-cancellable operating lease agreements where the lease
Obligations arising from these lease agreements are listed as liabilities in the balance sheet in accordance with IFRS 16, apart from liabilities arising from short-term and low-value contracts. term varies from one year to five years. Obligations arising from these lease agreements are listed as liabilities in the balance sheet in accordance with IFRS 16,
The Group is obligated to revise the deductions it has made for the real estate investment completed in 2017 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2026. The maximum amount of the liability amounts to EUR 90 thousand. Investments in real estate The Group is obligated to revise the deductions it has made for the real estate investment completed in 2017 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2026. The maximum amount
The Group is obligated to revise the deductions it has made for the real estate investment completed in 2018 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2027. The maximum amount of the liability amounts to EUR 20 thousand. of the liability amounts to EUR 90 thousand. The Group is obligated to revise the deductions it has made for the real estate investment completed in 2018 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2027. The maximum amount
The Group is obligated to revise the deductions it has made for the real estate investment completed in 2021 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2030. The maximum amount of the liability amounts to EUR 185 thousand. The Group is obligated to revise the deductions it has made for the real estate investment completed in 2021 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2030. The maximum amount
Property, plant and equipment is initially recognized at historical cost which comprises of the purchase price and other expenditures directly related to the acquisition that are necessary for bringing the asset to its operating condition and location. Items of property, plant and equipment are carried in the balance sheet at cost less any accumulated depreciation and any accumulated impairment losses. Items of property, plant and equipment leased under the lease terms are accounted for similarly to purchased property, plant and equipment. Repair and maintenance costs are recognized as expenses at the time they incur.
Depreciation on property, plant and equipment is calculated using the straight-line method over their estimated useful lives, as follows:
| Years | |
|---|---|
| Buildings and structures | 10-30 |
| Machinery and equipment | 5-15 |
| Other tangible assets | 5-10 |
The assets' useful lives are reviewed, and adjusted if appropriate, at the end of each reporting period.
Gains or losses on disposal of property, plant and equipment are included either within other operating income or other operating expenses in the statement of comprehensive income.
Property, plant and equipment is reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable. An impairment loss is recognized for the amount by which the asset's carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset's fair value less costs to sell and value in use.
| EUR Thousand | Land | Buildings and constructions |
Machiner y and equipme nt |
Other tangible assets |
Advances paid and constructi on in progress |
Total |
|---|---|---|---|---|---|---|
| 2022 | ||||||
| Cost on 1 January | 1 021 | 20 265 | 27 561 | 2 208 | 2 740 | 53 794 |
| Additions | 0 | 315 | 1 083 | 232 | 621 | 2 251 |
| Disposals | 0 | 0 | -5 | -190 | 0 | -195 |
| Reclassifications | 0 | -86 | 3 335 | 88 | -3 337 | 0 |
| Exchange differences | 5 | -169 | -222 | 122 | -24 | -288 |
| Cost on 31 December | 1 025 | 20 324 | 31 752 | 2 461 | 0 | 55 562 |
| Accumulated depreciation and impairment on 1 January |
-157 | -6 363 | -18 486 | -1 393 | 0 | -26 398 |
| Depreciation | -53 | -1 584 | -2 524 | -316 | 0 | -4 477 |
| Reclassifications | 0 | 0 | 0 | 0 | 0 | 0 |
| Disposals and impairment | 0 | 0 | 5 | 126 | 0 | 131 |
| Exchange differences | -4 | 121 | 220 | -226 | 0 | 110 |
| Accumulated depreciation and impairment on 31 December |
-213 | -7 826 | -20 785 | -1 809 | 0 | -30 634 |
| Net book amount on 1 January | 865 | 13 902 | 9 075 | 815 | 2 740 | 27 396 |
| Net book amount on 31 December | 812 | 12 498 | 10 966 | 652 | 0 | 24 929 |
| EUR thousand | Land | Buildings and constructions |
Machiner y and equipme nt |
Other tangible assets |
Advances paid and constructi on in progress |
Total |
|---|---|---|---|---|---|---|
| 2021 | ||||||
| Cost on 1 January | 1 028 | 18 613 | 25 106 | 2 094 | 482 | 47 323 |
| Additions | 0 | 1 643 | 2 278 | 473 | 2 249 | 6 644 |
| Disposals | 0 | 0 | -184 | -98 | 0 | -282 |
| Reclassifications | 0 | -219 | -6 | -308 | 0 | -533 |
| Exchange differences | -7 | 228 | 366 | 47 | 9 | 643 |
| Cost on 31 December | 1 021 | 20 265 | 27 561 | 2 208 | 2 740 | 53 794 |
| Accumulated depreciation and impairment on 1 January |
-105 | -5 036 | -16 130 | -1 411 | 0 | -22 682 |
| Depreciation | -52 | -1 590 | -2 236 | -302 | 0 | -4 180 |
| Reclassifications | 0 | 278 | 0 | 289 | 0 | 567 |
| Disposals and impairment | 0 | 0 | 158 | 69 | 0 | 227 |
| Exchange differences | 0 | -15 | -278 | -37 | 0 | -330 |
| Accumulated depreciation and impairment on 31 December |
-157 | -6 363 | -18 486 | -1 393 | 0 | -26 398 |
| Net book amount on 1 January | 922 | 13 577 | 8 976 | 683 | 482 | 24 641 |
| Net book amount on 31 December | 865 | 13 902 | 9 075 | 815 | 2 740 | 27 396 |
| Right-of-use assets | ||||||
|---|---|---|---|---|---|---|
| EUR thousand | Land | Buildings and constructions |
Machinery and equipment |
Other tangible assets |
Total | Lease liabilities |
| As of 1 January 2022 | 701 | 5 166 | 1 400 | 414 | 7 681 | 7 694 |
| Net changes | -1 | 113 | 767 | -10 | -665 | 711 |
| Depreciation | -53 | -1 215 | -359 | -194 | -1 822 | |
| Interest expense | -345 | |||||
| Payments | -1 215 | |||||
| As of 31 December 2022 | 649 | 3 837 | 1 808 | 229 | 6 524 | 6 983 |
| Right-of-use assets | |||||||
|---|---|---|---|---|---|---|---|
| EUR thousand | Land | Buildings and constructions |
Machinery and equipment |
Other tangible assets |
Total | Lease liabilities |
|
| As of 1 January 2021 | 759 | 5 131 | 1 046 | 262 | 7 198 | 6 791 | |
| Net changes | -6 | 474 | -489 | 319 | 299 | 2 593 | |
| Depreciation | -52 | -976 | -61 | -167 | -1 255 | ||
| Interest expense | -364 | ||||||
| Payments | -1 320 | ||||||
| As of 31 December 2021 | 701 | 5 166 | 1 400 | 414 | 7 681 | 7 694 |
Buildings comprise the factory building in Finland and some structures in Korea. Main part of machinery and equipment relates to production machinery. Other tangible assets include mainly Korean leasehold improvements. Buildings comprise the factory building in Finland and some structures in Korea. Main part of machinery and equipment
Robit leases some production machinery in UK under non-cancellable finance lease agreements. IFRS 16 standard has been applied to the use of right assets. Assets leased under leases Robit leases some production machinery in UK under non-cancellable finance lease agreements. IFRS 16 standard has
Refer to note 4.7. for disclosure of contractual obligations to purchase. been applied to the use of right assets.
Materials and supplies, work in progress and finished goods are stated at the lower of cost and net realizable value. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of purchase of inventories comprise the purchase price, import duties and other taxes, transport, handling and other costs directly attributable to the acquisition of finished goods, materials and services. Trade discounts, rebates and other similar items are deducted in determining the costs of purchase. The costs of conversion of inventories include direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure, the latter being allocated on the basis of normal operating capacity. Costs are determined using weighted average costs. 5.2 Inventories Accounting policy Materials and supplies, work in progress and finished goods are stated at the lower of cost and net realizable value. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of purchase of inventories comprise the purchase price, import duties 5.2 Inventories Accounting policy Materials and supplies, work in progress and finished goods are stated at the lower of cost and net realizable value. The cost of inventories comprises all costs of purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. The costs of purchase of inventories comprise the purchase price, import duties and other taxes, transport, handling and other costs directly attributable to the acquisition of finished goods, materials
Inventory valuation requires management estimates and judgements specially relating to obsolescence and recording inventory to net realizable value based on expected selling prices as well as the management's assessment of the general market development in the Robit's main markets. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to complete the sales. Key judgements and estimates - Inventory valuation Inventory valuation requires management estimates and judgements specially relating to obsolescence and recording inventory to net realizable value based on expected selling prices as well as the management's assessment of the general market development in the Robit's main markets. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to complete the sales. Inventory valuation requires management estimates and judgements specially relating to obsolescence and recording inventory to net realizable value based on expected selling prices as well as the management's assessment of the general market development in the Robit's main markets. Net realizable value is the estimated selling price in the ordinary course of business less the estimated costs of completion and the estimated costs necessary to complete the sales.
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| Materials and supplies | 9 108 | 6 733 |
| Materials and supplies | 9 108 | 6 733 |
| Work in progress | 2 092 | 2 350 |
| Work in progress | 2 092 | 2 350 |
| Finished goods | 33 111 | 34 455 |
| Finished goods | 33 111 | 34 455 |
| Total | 44 311 | 43 538 |
| Total | 44 311 | 43 538 |
The inventories include mainly raw materials used in the production and finished products, such as button bits, drilling rods, casing systems hammer components and assembled hammers. Inventory of finished goods include obsolescence provision of EUR 1 817 thousand. The increase of the provision was EUR 439 thousand and the release EUR 193 thousand due to the sale of slow-moving inventories and scrapping of unsalable inventories, in respect of which the risk of obsolescence has been reduced. The inventories include mainly raw materials used in the production and finished products, such as button bits, drilling rods, casing systems hammer components and assembled hammers. Inventory of finished goods include obsolescence provision of EUR 2 227 thousand. The increase of the provision was EUR 680 thousand and the release EUR 261 thousand due to the sale of slow-moving inventories and scrapping of unsalable inventories, in respect of which the risk of obsolescence has casing systems hammer components and assembled hammers. Inventory of finished goods include obsolescence provision of EUR 2 227 thousand. The increase of the provision was EUR 680 thousand and the release EUR 261 thousand due to the sale of slow-moving inventories and scrapping of unsalable inventories, in respect of which the risk of obsolescence has been reduced.
Movements in the provision for obsolescence of inventory that are assessed for impairment are as follows: Movements in the provision for obsolescence of inventory that are
| assessed for impairment are as follows: EUR thousand |
31-Dec-22 | 31-Dec-21 |
|---|---|---|
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
| On 1 January | 1 817 | 1 573 |
| On 1 January | 1 817 | 1 573 |
| Provision for impairment recognised during the year | 680 | 439 |
| Provision for impairment recognised during the year | 680 | 439 |
| Inventories written off during the year | -8 | -0 |
| Inventories written off during the year | -8 | -0 |
| Unused amounts reversed | -261 | -193 |
| Unused amounts reversed | -261 | -193 |
| On 31 Dec | 2 227 | 1 817 |
Account receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Account receivables are recognized initially at fair value and subsequently at amortized cost less impairment. The Group uses a simplified approach to estimating expected credit losses. To estimate credit losses, trade receivables are grouped on the basis of credit risk characteristics and past-due dates. Impairment is recognized in the statement of comprehensive income under other operating expenses. Accounting policies Account receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Account receivables are recognized initially at fair value and subsequently at amortized cost less impairment. The Group uses a simplified approach to estimating expected credit losses. To estimate credit losses, trade receivables are Accounting policies Account receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. Account receivables are recognized initially at fair value and subsequently at amortized cost less impairment.
Other receivables include mainly prepaid expenses and accrued income from the usual operating activities of the Group. grouped on the basis of credit risk characteristics and past-due dates. Impairment is recognized in the statement of comprehensive income under other operating expenses. grouped on the basis of credit risk characteristics and past-due dates. Impairment is recognized in the statement of comprehensive income under other operating expenses.
The current account and other receivables comprised of the following:
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
| Account receivables | 19 257 | 21 223 |
| Account receivables | 19 257 | 21 223 |
| Prepayments and accrued income | 1 044 | 586 |
| Prepayments and accrued income | 1 044 | 586 |
| Other receivables* | 2 041 | 3 527 |
| Other receivables* | 2 041 | 3 527 |
| Total | 22 342 | 25 337 |
| Total | 22 342 | 25 337 |
* Incl. mainly VAT receivables EUR 1 836 thousand. The carrying amounts of current trade receivables and other receivables are considered to be close to their fair values. * Incl. mainly VAT receivables EUR 1 836 thousand.
The carrying amounts of current trade receivables and other receivables are considered to be close to their fair values. This is due to their short-term nature. This is due to their short-term nature. Movements in the provision for impairment of trade receivables that are assessed for impairment are as follows: This is due to their short-term nature.
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
| On 1 January On 1 January Provision for impairment recognised during the year |
836 836 |
723 723 172 |
| Provision for impairment recognised during the year | 415 | 172 |
| Receivables written off during the year as uncollected | 415 | -40 |
| Receivables written off during the year as uncollected | -398 | -40 |
| Unused amounts reversed | -398 | -19 |
| Unused amounts reversed | -324 | -19 |
| On 31 Dec | -324 | 836 |
| On 31 Dec | 529 529 |
836 |
gain/(losses) were recognised in profit or loss in relation to impaired receivables. Change in provisions in the income statement: During the year, the following gain/(losses) were recognised in profit or loss in relation to impaired receivables.
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| EUR thousand Impairment losses |
31-Dec-22 | 31-Dec-21 |
| Impairment losses Individually impaired receivables |
-741 | -40 |
| Individually impaired receivables Movement in provision for impairment |
-741 402 |
-40 -103 |
| Movement in provision for impairment | 402 -339 |
-103 -143 |
| Classification of accounts receivables | -339 | -143 |
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course of business. They are generally due for settlement within 30-90 days and therefore are all classified as current. Trade receivables are recognised initially at the amount of consideration that is unconditional unless they contain significant financing components, when they are recognised at fair value. The group holds the trade receivables with the objective to collect the contractual cash flows and therefore measures them subsequently at amortised cost using the effective interest method. Details about the group's impairment policies and the calculation of the loss allowance are provided in note 4.6.
Account payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Account payables are recognized initially at fair value and subsequently measured at amortized cost using the effective interest rate method. Account payables are obligations to pay for goods or services that have been acquired in the ordinary course of business from suppliers. Account payables are recognized initially at fair value and subsequently measured at amortized cost using
The current account and other payables comprise of the following: The current account and other payables comprise of the following:
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| Account payables | 15 643 | 17 458 |
| Accrued expenses | 4 041 | 4 145 |
| Other* | 232 | 1 675 |
| Total | 19 916 | 23 278 |
*Mainly VAT liability
Material items included in accrued expenses:
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| Accrued salaries | 1 241 | 1 268 |
| Accrued social security costs | 216 | 312 |
| Accrued interests | 13 | 9 |
| Other * | 2 572 | 2 557 |
| Total | 4 041 | 4 145 |
* Mainly accrued outsourcing fees, accrued audit fees and accrued rental expenses. The carrying amounts of account payables and other payables are considered to be the same as their fair values, due to
The carrying amounts of account payables and other payables are considered to be the same as their fair values, due to their short-term nature. their short-term nature.
Return or repayment obligations are generally not associated with supply contracts. Robit is responsible for ensuring that the products meet the customer's order in terms of technical specifications and also Robit's own quality standards at the time of delivery. If a technical or qualitative problem due to Robit is identified in a product, Robit is obliged to supply to customer with replacement products. These obligations are assessed for each contract in turn, and a separate warranty provision is recognised for them. Because the products are, in nature, consumables, no long-term warranty obligations that could be payable in future financial years are associated with the products.
A provision has been made estimating warranty claims for the products sold in which a technical or qualitative problem has been identified. These claims are expected to be settled over the next year and are therefore reported as current provisions. The amount of the provision was EUR 3 thousand on 31 December 2022 (2021: EUR 0 thousand).
Movements in the provision for warranty provisions Movements in the provision for warranty provision
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| On 1 January | 0 | 89 |
| Provision for warranty costs recognised during the yea | 200 | 64 |
| Warranty costs during the year | -197 | -70 |
| Unused amounts reversed | 0 | -82 |
| On 31 Dec | 3 | 0 |
Advance payments received amounted to EUR 145 thousand as of 31 December 2021 (2021: EUR 771 thousand). Advance payments are usually required from clients that are not creditworthy. In normal course of business advance payments are not an usual way of doing business. Advance payments received amounted to EUR 145 thousand as of 31 December 2021 (2021: EUR 771 thousand). Advance payments are usually required from clients that are not creditworthy. In normal course of business advance payments are not an usual way of doing business.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the Group and are de-consolidated from the date that control ceases. All intercompany transactions, receivables, liabilities, unrealized profits and distribution of profits within Robit Group are eliminated in the consolidated financial statements. Accounting principles of subsidiaries have been changed where necessary to ensure consistency with the principles adopted by the Group.
Assets and liabilities in foreign subsidiaries are translated into euro at the rate prevailing on the balance sheet date. Income and expenses in foreign subsidiaries are translated into euro using an average rate. Translation differences that arise when translating the financial statements of subsidiaries are recognized in other comprehensive income and accumulated in translation differences reserve in equity.
Foreign currency denominated transactions are translated into the functional currency using the exchange rates prevailing at the dates of the transactions or if items have been revalued, using the measurement date exchange rates. Foreign exchange gains and losses arising in respect of business operations, such as sales and purchases, are recognized in relevant lines above operating profit. Foreign exchange differences arising from financing transactions are recognized in finance income and costs.
The exchange differences charged/credited to the statement of comprehensive income are as follows: The exchange differences charged/credited to the statement of comprehensive income are as follows:
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Included in EBIT /operating profit | -176 | 47 |
| In finance income and expenses | -154 | 57 |
| Total | -330 | 104 |
Group's subsidiaries as of 31 December 2022 and 2021 were as follows: Group's subsidiaries as of 31 December 2022 and 2021 were as follows:
| Parent % | Parent % | Group % | Group % | |
|---|---|---|---|---|
| 31 Dec 2022 | 31 Dec 2021 | 31 Dec 2022 | 31 Dec 2021 | |
| Halco Brighouse Ltd, UK, Parent Robit UK | 100 % | 100 % | ||
| Halco Drilling Ltd UK, Parent Robit UK* | 100 % | 100 % | ||
| Robit Rocktools Ab, Sweden**** | 100 % | 100 % | ||
| Robit Africa Holdings Ltd, South-Africa* | 100 % | 100 % | 100 % | 100 % |
| Robit Asia Ltd, Hong Kong | 100 % | 100 % | 100 % | 100 % |
| Robit Australia Pty Ltd, Australia** | 100 % | 100 % | 100 % | 100 % |
| Robit Finland Oy Ltd, Finland | 100 % | 100 % | 100 % | 100 % |
| Robit GB Ltd, UK | 100 % | 100 % | 100 % | 100 % |
| Robit Inc, USA | 100 % | 100 % | 100 % | 100 % |
| Robit Korea LTD, South-Korea | 100 % | 100 % | 100 % | 100 % |
| Robit OOO, Russia | 100 % | 100 % | 100 % | 100 % |
| Robit S.A.C, Peru, 1% owned by Robit Inc | 99 % | 99 % | 100 % | 100 % |
| Robit SA, South Africa*** | 74 % | 74 % | 100 % | 100 % |
| Robit UK Ltd, UK* | 100 % | 100 % | 100 % | 100 % |
| Robit USA LLC, USA, parent Robit INC. | 100 % | 100 % | ||
| TOO Robit, Kazakhstan | 100 % | 100 % | 100 % | 100 % |
* Companies were dormant or holding companies. * Companies were dormant or holding companies.
** Robit Australia Pty Ltd merged with Robit Australia Holdings Ltd in 2021, after which the company's name was changed to Robit Australia Pty Ltd. to Robit Australia Pty Ltd. *** During 2015 Robit SA established a Black Employees Empowerment Trust ('the Trust', "BEET") in South Africa. The
*** During 2015 Robit SA established a Black Employees Empowerment Trust ('the Trust', "BEET") in South Africa. The purpose of the Trust is to support the local black employees of Robit SA and generate better business opportunities for Robit when operating in South Africa. Robit SA directed a share issue to the Trust. As a result, the Trust owns 26% of the shares of Robit SA. However, Robit SA is considered to have control over the Trust. The purpose and nature of the arrangement is to remunerate certain employees of Robit SA. This arrangement is accounted as a remuneration. purpose of the Trust is to support the local black employees of Robit SA and generate better business opportunities for Robit when operating in South Africa. Robit SA directed a share issue to the Trust. As a result, the Trust owns 26% of the shares of Robit SA. However, Robit SA is considered to have control over the Trust. The purpose and nature of the arrangement is to remunerate certain employees of Robit SA. This arrangement is accounted as a remuneration. **** Robit Rocktools Ab has been liquidated in December 2022.
**** Robit Rocktools Ab has been liquidated in December 2022.
The income tax expense consists of current tax and changes in deferred tax. Tax is recognized in the consolidated profit or loss statement or if tax relates to items recognized in other comprehensive income or directly in equity, then the related tax is recognized in other comprehensive income or equity correspondingly. Accounting policy The income tax expense consists of current tax and changes in deferred tax. Tax is recognized in the consolidated profit
The current income tax charge is calculated on the basis of the local tax laws and tax rates enacted or substantively enacted at the end of the reporting period in relevant countries where the Group operates and generates taxable income. or loss statement or if tax relates to items recognized in other comprehensive income or directly in equity, then the related tax is recognized in other comprehensive income or equity correspondingly. The current income tax charge is calculated on the basis of the local tax laws and tax rates enacted or substantively enacted
Income taxes recognized in consolidated income statements differ from the income taxes calculated using the Finnish tax rate as follows: tax rate as follows:
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Current tax: | ||
| Current tax on profits for the year | -528 | -351 |
| Adjustments in respect of prior years | -5 | 18 |
| Total current tax expense | -533 | -333 |
| Deferred tax: | ||
| Decrease (-) / increase (+) in deferred tax assets | -171 | 281 |
| Decrease (+) / increase (-) in deferred tax liabilities | 250 | 187 |
| Total deferred tax expenses | -80 | 468 |
| Income tax expense | -453 | 135 |
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Profit before tax | 1 338 | 751 |
| Tax calculated at Finnish tax rate | -268 | -151 |
| Tax effect of: | ||
| Effect of other tax rates for foreign subsidiaries | 9 | 8 |
| Expenses not deductible for tax purposes | -505 | -439 |
| Income not subject to tax | 56 | -125 |
| Unrecognized deferred tax assets from tax losses | 112 | 46 |
| Utilization of previously unrecognized tax losses | 560 | 821 |
| Adjustment in respect of prior years | -418 | -25 |
| Taxes in income statement | -453 | 135 |
Deferred tax assets and liabilities are accounted for using the liability method for all temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the consolidated financial statements. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the balance sheet date and are expected to be applied when the related deferred tax asset is realized, or the deferred tax liability is settled.
Deferred tax liabilities are recognized for all taxable temporary differences except for deferred tax liability where the timing of the reversal of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the foreseeable future.
Deferred tax assets are recognized for all deductible temporary differences to the extent that it is probable that taxable profit will be available against which the deductible temporary difference can be utilised.
Realisable value of deferred tax assets is assessed at each balance sheet date and adjustments are made in case there is indication that utilisation of deferred tax assets would no longer be probable.
Deferred tax assets and liabilities are offset only when there is a legally enforceable right to offset current tax assets against current tax liabilities and when the deferred taxes assets and liabilities relate to income taxes levied by the same taxation authority on either the same taxable entity or different taxable entities where there is an intention to settle the balances on a net basis.
Judgement is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognized on the balance sheet. Deferred tax assets are recognized only where it is considered more likely than not that they will be recovered, which is dependent on the generation of sufficient future taxable profits. Assumptions about the generation of future taxable profits depend on management's estimates of future cash flows that relate among others to the amount of future net sales, operating costs and finance costs. The Group's ability to generate taxable income depends also on factors related to general economy, finance, competitiveness and regulations that the Group is unable to control. These estimates and assumptions are subject to risk and uncertainty, hence it is possible that changes in circumstances will alter expectations, which may impact the amount of deferred tax assets and deferred tax liabilities recognized on the balance sheet and the amount of other tax losses and temporary differences not yet recognized.
The Group's management periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation. It establishes provisions where appropriate on the basis of amounts expected to be paid to the tax authorities. The amount of current income tax liabilities for identified uncertain tax positions is recognized when it is probable that certain tax positions will be challenged and may not be fully sustained upon review by tax authorities.
The gross movement on the deferred tax account is as follows: The gross movement on the deferred tax account is as follows:
| EUR thousand | 31-Dec-22 | 31-Dec-21 |
|---|---|---|
| As of 1 of January | 1 234 | 732 |
| Recognized in profit or loss | 79 | 468 |
| Recognized in equity | -141 | -11 |
| Exchange rate differences | 0 | 46 |
| As of 31 of December | 1 172 | 1 234 |
The following table presents the movements in deferred income tax assets and liabilities during the year, without taking into consideration the offsetting of balances with the same tax jurisdiction:
| EUR thousand | At 1 Jan | Recognized in profit or loss |
Recignised directly to equity |
Acquisition of subsidiaries |
Exchange rate differences |
At 31 Dec |
|---|---|---|---|---|---|---|
| 2021 | ||||||
| Deferred tax assets | ||||||
| Inventories | 517 | -33 | 0 | 0 | 1 | 485 |
| Employee benefits | 285 | 36 | 0 | 0 | 0 | 323 |
| Property, plant and equipment | 228 | -57 | 0 | 0 | 2 | 169 |
| Tax losses | 528 | -109 | 0 | 0 | -1 | 419 |
| Other | 578 | -9 | 0 | 0 | 20 | 589 |
| Total | 2 137 | -171 | 0 | 0 | 21 | 1 986 |
| Set-off of deferred taxes | -211 | -127 | ||||
| Deferred tax assets, net | 1 926 | 1 859 |
| At 1 Jan | Recognized in profit or loss |
Recignised directly to equity |
Acquisition of subsidiaries |
Exchange rate differences |
At 31 Dec | |
|---|---|---|---|---|---|---|
| 2021 | ||||||
| Deferred tax liabilities | ||||||
| Property, plant and equipment | 414 | 2 | 141 | 0 | 9 | 566 |
| Intangible assets | 674 | -252 | 0 | 0 | 0 | 422 |
| Other items | -182 | -1 | 0 | 0 | 12 | -171 |
| Total | 905 | -250 | 141 | 0 | 21 | 818 |
| Set-off of deferred taxes | -211 | -127 | ||||
| Deferred tax liabilities, net | 694 | 691 |
| EUR thousand | At 1 Jan | Recognized in profit or loss |
Recignised directly to equity |
Acquisition of subsidiaries |
Exchange rate differences |
At 31 Dec |
|---|---|---|---|---|---|---|
| 2021 | ||||||
| Deferred tax assets | ||||||
| Inventories | 274 | 216 | 0 | 0 | 27 | 517 48 |
| Employee benefits | 320 | -38 | 0 | 0 | 2 | 285 |
| Property, plant and equipment | 201 | 10 | 0 | 0 | 17 | 228 |
| Tax losses | 514 | 0 | 0 | 0 | 14 | 528 |
| Other | 473 | 92 | 0 | 0 | 14 | 578 |
| Total | 1 782 | 281 | 0 | 0 | 75 | 2 137 |
| Set-off of deferred taxes | -254 | -211 | ||||
| Deferred tax assets, net | 1 528 | 1 926 |
| 2021 | At 1 Jan | Recognized in profit or loss |
Recignised directly to equity |
Acquisition of subsidiaries |
Exchange rate differences |
At 31 Dec |
|---|---|---|---|---|---|---|
| Deferred tax liabilities | ||||||
| Property, plant and equipment | 356 | 46 | 0 | 0 | 12 | 414 |
| Intangible assets | 909 | -254 | 0 | 0 | 19 | 674 |
| Other items | -213 | 22 | 11 | 0 | -2 | -182 |
| Total | 1 052 | -187 | 11 | 0 | 29 | 905 |
| Set-off of deferred taxes | -254 | -211 | ||||
| Deferred tax liabilities, net | 798 | 694 |
Related parties of the Group consist of the parent company and Group companies mentioned in note 6.1. Related parties are also key management personnel and their close family members as well as entities controlled by them. Key management personnel are the members of the Board of Directors, CEO and management team of Robit. Five Alliance Oy has significant influence in Robit Plc and its ownership as of 31 December 2019 was 27.06% (27.06 % as of 31 December 2021). The chairman of the board of directors Harri Sjöholm has control in Five Alliance Oy. Related parties of the Group consist of the parent company and Group companies mentioned in note 6.1. Related parties are also key management personnel and their close family members as well as entities controlled by them. Key management personnel are the members of the Board of Directors, CEO and management team of Robit. Five Alliance Oy has significant influence in Robit Plc and its ownership as of 31 December 2019 was 27.06% (27.06 % as of 31 December 2021). The chairman of the board of directors Harri Sjöholm has control in Five Alliance Oy.
Salaries, remuneration and other benefits paid in 2022 and 2021 to the Board of Directors were as follows: Salaries, remuneration and other benefits paid in 2022 and 2021 to the Board of Directors were as follows:
| EUR Thousand | 2022 | 2021 |
|---|---|---|
| Harri Sjöholm | 61.3 | 59.8 |
| Mammu Kaario | 5.5 | 41.8 |
| Markku Teräsvasara | 36.5 | - |
| Eeva-Liisa Virkkunen | 38.5 | - |
| Kalle Reponen | 5.5 | 42.7 |
| Mikko Kuitunen | 40.0 | 38.3 |
| Anne Leskelä | 44.0 | 41.6 |
| Kim Gran | 42.3 | 40.8 |
| Total | 273.6 | 264.9 |
Remuneration to the Chairman of the Board of Directors is EUR 50 thousand per year and to each member of the Board of Directors EUR 30 thousand per year. In addition, members of the board receive EUR 500 for each meeting they attend. Committee meeting fee is 500 for each attended meeting. Remuneration for the members of the Board of Directors will be paid so that 40% of the specified annual amount will be used to purchase Robit's shares or alternatively the shares may be conveyed by using the own shares held by the company, and the rest will be paid in cash. Meeting fees are paid in cash. Travel claims are paid according to company travel policy. Members of the board do not participate into share-based remuneration plans and they do not have any pension agreements with the company. There are no restrictions in the shareholdings granted as the annual board fee. 49
Total 31 873 shares were granted to the Board of Directors during year 2022. Board members are not in employment relationship nor in business relationship with the company.
As annual board fee 7 968 shares were granted to the chairman of the board Harri Sjöholm and 4 781 shares to Markku Teräsvasara, Kim Gran, Anne Leskelä, Eeva-Liisa Virkkunen and Mikko Kuitunen.
The Board of Directors decides on the salary, remuneration and other benefits received by the CEO. The salary, remuneration and other fringe benefits paid in 2022 to the CEO, Arto Halonen, amounted to EUR 171 thousand. During the financial year, 4 283 shares, which is worth of EUR 11 thousand, were granted to the CEO in respect of his CEO agreement. In addition, a pension scheme fee of 8 thousand was paid on behalf of CEO. Tommi Lehtonen was paid EUR 125 thousand of salary, remuneration and other fringe benefits. In addition, a pension scheme fee of 8 thousand was paid.
For more information on the share reward program, see section 2.3.
Decisions concerning incentive and remuneration system for management are made by the Board of Directors based on the proposal made by the CEO. The salary for all members of the management team consists of a fixed basic salary and a results-based bonus. The bonus is determined based on the company performance, the business area in question and other key operative objectives. Remuneration of the management team members in 2022 and 2021 were as follows: Decisions concerning incentive and remuneration system for management are made by the Board of Directors based on the proposal made by the CEO. The salary for all members of the management team consists of a fixed basic salary and a resultsbased bonus. The bonus is determined based on the company performance, the business area in question and other key operative objectives. Remuneration of the management team members in 2022 and 2021 were as follows:
| EUR thousand | 1 Jan - 31 Dec 2022 | 1 Jan - 31 Dec 2021 |
|---|---|---|
| Salaries and other short-term employee benefits | 646 | 298 |
| Share-based payments | - | 16 |
| Total | 646 | 314 |
The management team members did not have voluntary pension plans that would have been classified as defined contribution plan.
For more information on the share-based incentive program, see section 2.3. contribution plan.
There were no share-based payments to management during 2022 relating to share-based incentive programs. During 2021 management team received 3 000 shares as a part of a share-based incentive program. For more information on the share-based incentive program, see section 2.3. Share-based payments and shareholder loans There were no share-based payments to management during 2022 relating to share-based incentive programs. During 2021
The total number of shares was 21 179 900 as of 31 December 2022 (2021: 21 179 900). The shareholding of the management was as follows: Share holdings of the board of directors and the management management was as follows:
| Shareholding of management as of 31.12.2022 | Shares | Percentages of shares |
|---|---|---|
| 50 | ||
| Members of the Board of directors | 5 841 836 | 27.58 % |
| Harri Sjöholm * | 5 767 395 | 27.23 % |
| Kim Gran | 31 007 | 0.15 % |
| Mikko Kuitunen | 17 865 | 0.08 % |
| Anne Leskelä | 11 007 | 0.05 % |
| Eeva-Liisa Virkkunen | 9 781 | 0.05 % |
| Markku Teräsvasara | 4 781 | 0.02 % |
| CEO | 24 493 | 0.12 % |
| Other members of the management team | 42 550 | 0.20 % |
| Total | 5 908 879 | 27.90 % |
*27,06% owned by Harri Sjöholm through Five Alliance Oy
There were no material subsequent events.
During the period no new or amended standards were implemented that would have affected the Financial Statements.
Robit Plc Business ID: 0825627-0
| Robit Plc (parent company) | ||
|---|---|---|
| Income statement | 1.1.- 31.12.2022 | 1.1.- 31.12.2021 |
| € | € | |
| Net sales | 3 901 620,81 | 5 771 749,21 |
| Other operating income | 486 214,80 | 513 470,95 |
| Personnel expenses | ||
| Wages and salaries | -1 557 353,03 | -1 679 719,50 |
| Indirect personnel expenses | ||
| Pension expenses | -222 786,15 | -236 330,58 |
| Other indirect security expenses | -47 027,90 | -50 888,14 |
| Total personnel expenses | -1 827 167,08 | -1 966 938,22 |
| Depreciation and amortisation | ||
| Depreciation according to plan | -1 002 060,23 | -1 094 208,51 |
| Other operating expenses | -3 987 212,82 | -7 024 524,32 |
| OPERATING PROFIT (LOSS) | -2 428 604,52 | -3 800 450,89 |
| Financial income and expenses | ||
| Financial income and expenses | ||
| Other interest and financial income | ||
| From group companies | 1 057 936,76 | 1 401 102,84 |
| From others | 1 191 831,89 | 1 082 787,90 |
| Interest and other financial expenses | ||
| Impairment of investments | 0,00 | 0,00 |
| To group companies | -172 186,59 | -807 890,06 |
| To others | -971 585,92 | -772 931,34 |
| Total financial income and expenses | 1 105 996,14 | 903 069,34 |
| PROFIT (LOSS) BEFORE APPROPRIATIONS | -1 322 608,38 | -2 897 381,55 |
| AND TAXES | ||
| Appropriations | ||
| Change in depreciation difference, increase (-) or decrease (+) | -27 810,57 | -18 570,84 |
| Group contribution | 2 850 000,00 | 1 397 000,00 |
| Income taxes | -20 839,09 | 0,00 |
| PROFIT (LOSS) FOR THE FINANCIAL YEAR | 1 478 741,96 | -1 518 952,39 |
| Balance sheet | ||
|---|---|---|
| Assets | Dec 31, 2022 | Dec 31, 2021 |
| NON-CURRENT ASSETS | ||
| Intangible assets | ||
| Development costs | 230 701,47 | 435 744,84 |
| Intellectual property rights | 295 716,26 | 360 185,93 |
| Other non-current expenses | 1 306 090,69 | 1 661 404,37 |
| Total non-current assets | 1 832 508,42 | 2 457 335,14 |
| Tangible assets | ||
| Land and waters areas | 195 178,87 | 195 178,87 |
| Buildings and structures | 3 674 748,16 | 3 823 943,21 |
| Machinery and equipment | 35 353,76 | 59 728,10 |
| Other tangible assets | 1 590,79 | 18 405,01 |
| Total tangible assets | 3 906 871,58 | 4 097 255,19 |
| Investments | ||
| Shares in group companies | 52 159 088,57 | 52 164 794,18 |
| Total investments | 52 159 088,57 | 52 164 794,18 |
| Total non-current assets | 57 898 468,57 | 58 719 384,51 |
| Current assets | ||
| Receivables | ||
| Long-term | ||
| Receivables from group companies | 23 119 455,40 | 25 459 409,03 |
| Loan receivables | 153 749,30 | 178 620,16 |
| Long-term receivables total | 23 273 204,70 | 25 638 029,19 |
| Short-term | ||
| Receivables from group companies | 12 020 546,95 | 13 032 156,50 |
| Trade receivables | 0,00 | 0,00 |
| Loan receivables | 78 881,07 | 98 820,99 |
| Other receivables | 15 940,50 | 20 598,41 |
| Accrued income | 400 627,91 | 116 755,30 |
| Short-term receivables total | 12 515 996,43 | 13 268 331,20 |
| Securities | ||
| Other shares | 1 602 891,85 | 3 422 256,29 |
| Financial assets | ||
| Cash and equivalents | 261,08 | 734,47 |
| Total current assets | 37 392 354,06 | 42 329 351,15 |
| TOTAL ASSETS | 95 290 822,63 | 101 048 735,66 |
| Rob | ||
|---|---|---|
| Tase | 1.1.- 31.12.2022 | 1.1.- 31.12.2021 |
| VASTATTAVAA | € | € |
| Equity | ||
| Share capital | 705 025,14 | 705 025,14 |
| Share premium reserve | 201 825,51 | 201 825,51 |
| Invested unrestricted equity reserve | 85 202 252,88 | 85 202 252,88 |
| Retained earnings (loss) | -25 102 807,27 | -23 674 168,30 |
| Profit (loss) for the financial year | 1 478 741,96 | -1 518 952,39 |
| Total equity | 62 485 038,22 | 60 915 982,84 |
| Accrued appropriations | ||
| Depreciation difference | 434 093,83 | 406 283,26 |
| LIABILITIES | ||
| Long-term liabilities | ||
| Loans from financial institutions | 19 009 791,00 | 22 019 584,00 |
| Total long-term liabilities | 19 009 791,00 | 22 019 584,00 |
| Short-term liabilities | ||
| Loans from financial institutions | 4 791 690,54 | 6 271 694,53 |
| Accounts payable | 492 159,25 | 507 923,50 |
| Payables to group companies | 7 585 390,42 | 10 423 401,74 |
| Other liabilities | 244 658,29 | 207 723,33 |
| Accrued liabilities | 248 001,08 | 296 142,46 |
| Total short-term liabilities | 13 361 899,58 | 17 706 885,56 |
| Short-term liabilities total | 32 371 690,58 | 39 726 469,56 |
| TOTAL EQUITIES AND LIABLITIES | 95 290 822,63 | 101 048 735,66 |
| Robit Plc |
|---|
| Business ID: 0825627-0 |
| Cash flow statements (parent company) | 1.1.- 31.12.2022 | 1.1.- 31.12.2021 |
|---|---|---|
| Cash flow from operations: | ||
| PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAXES | -2 428 605 | -3 800 451 |
| Adjustments: | ||
| Depreciation according to plan | 1 002 060 | 1 112 779 |
| Financial income and expenses | ||
| Other adjustments | -93 152 | 823 171 |
| Cash flow before changes in working capital | -1 519 696 | -1 864 500 |
| Changes in working capital: | ||
| Increase (-) or decrease (+) in trade and other receivables | 2 055 185 | 361 291 |
| Increase (-) or decrease (+) in inventories | ||
| Increase (-) or decrease (+) in trade payables | -4 517 173 | -3 114 943 |
| Cash flow from operations before taxes | -3 981 684 | -4 618 152 |
| Interest paid and other finance costs from operations | -857 099 | -1 014 788 |
| Interests and other financial income from operations | 762 502 | 134 310 |
| Direct income taxes paid | -20 839 | 0 |
| Cash flow from operations (A) | -4 097 120 | -5 498 630 |
| Cash flows from investing activities: | ||
| Investments in tangible and intangible items | -186 850 | -1 011 593 |
| Investments in group companies | ||
| Granted subsidiary loans | ||
| Repayment of loan receivables | 2 594 989 | 1 379 838 |
| Changes in long-term receivables | 15 003 | 37 080 |
| Cash flow from investments (B) | 2 423 143 | 405 325 |
| Cash flows from investing activities | -1 673 978 | -5 093 305 |
| Cash flows from investing activities | ||
| Proceeds from financial instruments and deposits | 1 800 000 | 2 500 000 |
| Changes in short-term loans | -3 009 793 | -24 078 015 |
| Changes in long-term loans | 26 500 000 | |
| Changes of own shares | 90 313 | 129 333 |
| Received intra-group financial support / dividend | 2 792 984 | |
| Cash flow from financing (C) | 1 673 504 | 5 051 318 |
| Change in cash and cash equivalents (A+B+C) | -473 | -41 987 |
| Cash and cash equivalents at beginning of financial year | 734 | 42 722 |
| Cash and cash equivalents at the end of financial year | 261 | 734 |
| Cash and cash equivalents according to balance sheet | 473 | 41 987 |
Robit group is specializing to sell, design and manufacture drilling consumables.
Robit Plc is a company listed in Nasdaq OMX Helsinki Ltd main list Finland marketplace with trading code ROBIT.
Robit Plc has a registered address in Vikkiniityntie 9, FI-33880 Lempäälä, Finland.
Robit Plc is the parent company of Robit group. The consolidated financial statements are prepared in accordance with IFRS and the parent company's separate financial statements in accordance with Finnish GAAP. The Group's accounting principles are described in the Group's notes. Copy of the consolidated group accounts is available in the group headquarters at Vikkiniityntie 9, FI-33880, Lempäälä, Finland.
Harri Sjöholm, Kim Gran, Anne Leskelä, and Mikko Kuitunen were elected to the company's board as old members. Eeva-Liisa Virkkunen and Markku Teräsvasara were elected as new members of the board. Harri Sjöholm was elected chairman of the board.
Robit Plc did not have any material events after the financial period.
Variable costs resulting from acquisition and manufacture of assets have been included in the acquisition cost of the non-current assets. The non-current assets will be depreciated during their useful life according to plan. Buildings and movable assets are depreciated during their economic life.
| Depreciation periods | ||
|---|---|---|
| Development costs | 5 years | Straight-line depreciation |
| Other long-term expenses | 5-7 years | Straight-line depreciation |
| Capitalized listing expenses | 5-10 years | Straight-line depreciation |
| Buildings | 30 years | Straight-line depreciation |
| Machinery and equipment of buildings | 15 years | Straight-line depreciation |
| Structures | 10 years | Straight-line depreciation |
| Machinery and equipment | 5-10 years | Straight-line depreciation |
| Other tangible assets | 5-10 years | Straight-line depreciation |
The depreciation time of development expenses and other tangible assets vary between 5 to 7 years and they are in line with management's view of the economic lifetime.
Investments are valued by acquisition price.
Inventories are presented at variable acquisition cost or lower probable sale price. Variable direct costs have been included in the acquisition cost of inventories.
Receivables and payables in foreign currencies have been converted to Finnish currency by using the respective exchange rate at the closing date.
| 31.12.2022 | 31.12.2021 | ||
|---|---|---|---|
| Domestic | 1 119 323 | 1 053 619 | |
| European community | 393 569 | ||
| Other countries | 2 782 298 | 4 324 561 | |
| Total | 3 901 621 | 5 771 749 | |
| Personnel information | |||
| Average count of personnel | |||
| Office workers | 9 | 12 | |
| Salaries of Members of the Board of Directors and managing director | |||
| 31.12.2022 | 31.12.2021 | ||
| CEO Tommi Lehtonen (until 15.3.2022) | 200 045 | 217 234 | |
| CEO Arto Halonen (since 15.3.2022) | 192 299 | ||
| 2022 | 2021 | ||
| Members of the Board of Directors | |||
| Harri Sjöholm | 61 250 | 59 750 | |
| Kalle Reponen | 5 500 | 42 676 | |
| Mammu Kaario | 5 500 | 41 847 | |
| Mikko Kuitunen | 40 000 | 38 250 | |
| Anne Leskelä | 44 000 | 41 553 | |
| Kim Gran | 42 250 | 40 820 | |
| Markku Teräsvasara (since 22.3.2022) | 36 500 | ||
| Eeva-Liisa Virkkunen (since 22.3.2022) | 38 500 | ||
| 273 500 | 264 897 | ||
| Auditors' fees detail | |||
| 1 ) | Statutory audit | 94 567 | 100 971 |
| 2 ) | Assignments according to the Auditing act 1,1 § | ||
| 3 ) | Tax consulting | ||
| 4 ) | Other services | 3 470 | 3 000 |
| 98 037 | 103 971 | ||
| Depreciation according to plan by balance sheet items | |||
| Development costs | 205 043,37 | 210 796,46 | |
| Intellectual property rights | 153 861,17 | 198 032,54 | |
| Other non-current expenses | 397 313,68 | 433 044,36 | |
| Buildings | 204 653,45 | 181 916,66 | |
| Machinery and equipment | 24 374,34 | 52 468,77 | |
| Other tangible assets | 16 814,22 | 17 949,72 | |
| 1 002 060,23 | 1 094 208,51 |
| Tangible and intangible assets | Development costs | 31.12.2021 | 31.12.2021 |
|---|---|---|---|
| Acquisition cost 1.1. Development costs |
2 303 239,45 | 2 286 036,24 | |
| Additions Acquisition cost 1.1. Reclassification |
2 303 239,45 0,00 |
17 203,21 2 286 036,24 0,00 |
|
| Additions | 17 203,21 | ||
| Acquisition cost 31.12. Reclassification |
2 303 239,45 0,00 |
2 303 239,45 0,00 |
|
| Acquisition cost 31.12. Accumulated depreciation 1.1. |
2 303 239,45 -1 867 494,61 |
2 303 239,45 -1 656 698,15 |
|
| Depreciation for the financial period Accumulated depreciation 1.1. Book value 31.12. |
-205 043,37 -1 867 494,61 230 701,47 |
-210 796,46 -1 656 698,15 435 744,84 |
|
| Depreciation for the financial period | -205 043,37 | -210 796,46 | |
| Book value 31.12. Intangible assets |
230 701,47 | 435 744,84 | |
| Acquisition cost 1.1. Intangible assets Additions |
1 297 998,55 89 391,50 |
1 204 196,16 93 802,39 |
|
| Acquisition cost 1.1. Reclassification |
1 297 998,55 0,00 |
1 204 196,16 0,00 |
|
| Additions Acquisition cost 31.12. |
89 391,50 1 387 390,05 |
93 802,39 1 297 998,55 |
|
| Reclassification | 0,00 | 0,00 | |
| Acquisition cost 31.12. Accumulated depreciation 1.1. |
1 387 390,05 -937 812,62 |
1 297 998,55 -739 780,08 |
|
| Depreciation for the financial period Accumulated depreciation 1.1. |
-153 861,17 -937 812,62 |
-198 032,54 -739 780,08 |
|
| Book value 31.12. Depreciation for the financial period |
295 716,26 -153 861,17 |
360 185,54 -198 032,54 |
|
| Book value 31.12. Other non-current expenses |
295 716,26 | 360 185,54 | |
| Acquisition cost 1.1. Other non-current expenses |
7 086 453,80 | 7 073 453,80 | |
| Additions Acquisition cost 1.1. |
42 000,00 7 086 453,80 |
13 000,00 7 073 453,80 |
|
| Reclassification Additions |
0,00 42 000,00 |
0,00 13 000,00 |
|
| Acquisition cost 31.12. Reclassification |
7 128 453,80 0,00 |
7 086 453,80 0,00 |
|
| Acquisition cost 31.12. Accumulated depreciation 1.1. |
7 128 453,80 -5 425 049,43 |
7 086 453,80 -4 992 005,07 |
|
| Depreciation for the financial period | -397 313,68 | -433 044,36 | |
| Accumulated depreciation 1.1. Book value 31.12. |
-5 425 049,43 1 306 090,69 |
-4 992 005,07 1 661 404,37 |
|
| Depreciation for the financial period Book value 31.12. Land and water areas |
-397 313,68 1 306 090,69 |
-433 044,36 1 661 404,37 |
|
| Acquisition cost 1.1. | 195 178,87 | 163 040,87 | |
| Land and water areas Additions |
32 138,00 | ||
| Acquisition cost 1.1. Book value 31.12. |
195 178,87 195 178,87 |
163 040,87 195 178,87 |
|
| Additions | 32 138,00 | ||
| Book value 31.12. | 195 178,87 | 195 178,87 | |
| Buildings and structures | 31.12.2022 | 31.12.2021 | |
| Acquisition cost 1.1. Buildings and structures |
6 197 984,20 31.12.2022 |
5 342 534,67 31.12.2021 |
|
| Additions Acquisition cost 1.1. |
55 458,40 6 197 984,20 |
855 449,52 5 342 534,67 |
|
| Acquisition cost 31.12. Additions |
6 253 442,60 55 458,40 |
6 197 984,20 855 449,52 |
|
| Acquisition cost 31.12. Accumulated depreciation 1.1. |
6 253 442,60 -2 374 040,99 |
6 197 984,20 -2 192 124,33 |
|
| Depreciation for the financial period | -204 653,45 | -181 916,66 | |
| Accumulated depreciation 1.1. Book value 31.12. Depreciation for the financial period |
-2 374 040,99 3 674 748,16 -204 653,45 |
-2 192 124,33 3 823 943,21 -181 916,66 |
|
| Book value 31.12. Machinery and equipment |
3 674 748,16 | 3 823 943,21 | |
| Acquisition cost 1.1. | 2 308 377,55 | 2 308 377,55 | |
| Acquisition cost 31.12. | 2 308 377,55 | 2 308 377,55 | |
| Accumulated depreciation 1.1. | -2 248 649,45 | -2 196 180,68 | |
| Depreciation for the financial period | -24 374,34 | -52 468,77 | |
| Book value 31.12. | 35 353,76 | 59 728,10 |
| Other tangible assets | 31.12.2022 | 31.12.2021 |
|---|---|---|
| Acquisition cost 1.1. | 99 065,05 | 99 065,05 |
| Acquisition cost 31.12. | 99 065,05 | 99 065,05 |
| Accumulated depreciation 1.1. | -80 660,04 | -62 710,32 |
| Depreciation for the financial period | -16 814,22 | -17 949,72 |
| Book value 31.12. | 1 590,79 | 18 405,01 |
| Shares in subsidiaries | ||
| Opening balance 1.1. | 52 164 794,18 | 52 164 794,18 |
| Additions | 0,00 | 0,00 |
| Deductions x) | -5 705,61 | 0,00 |
| Nook value31.12. | 52 159 088,57 | 52 164 794,18 |
| 31.12.2022 | 31.12.2021 | |
|---|---|---|
| Share % | Share % | |
| Robit Ab, Sweden 3) | 100 % | |
| Robit Korea LTD, Korea | 100 % | 100 % |
| Robit OOO, Russia | 100 % | 100 % |
| Robit Inc. USA | 100 % | 100 % |
| Robit SA Ltd, South Africa 4) | 74 % | 74 % |
| Robit S.A.C, Peru 1) | 99 % | 99 % |
| Robit Africa Holdings Ltd, South Africa 2) | 100 % | 100 % |
| Robit Finland Oy Ltd, Suomi | 100 % | 100 % |
| Robit Australia Holdings Ltd, Australia | 100 % | 100 % |
| Robit GB Ltd, UK | 100 % | 100 % |
| TOO Robit, Kazakastan | 100 % | 100 % |
| Robit UK Ltd, UK | 100 % | 100 % |
| Robit Asia Ltd, Hong Kong | 100 % | 100 % |
Subsidiaries owned by the Group companies of which the ownership exceeds 20%
Robit Australia Pty Ltd, Australia 100%, parent company Robit Australia Holdings Pty Ltd Robit USA LLC 100%, parent company Robit INC. Halco Drilling Ltd UK 100%, parent company Robit UK Ltd Halco Brighouse Ltd, UK 100%, parent company Robit UK Ltd
1) 1% ownership of Robit INC, USA
2) Robit Africa Holdings Ltd and Robit Ab have been left unconsolidated of the rest of the group because they do not have material operations.
3) Robit Rocktools AB was liquidated in December 2022
4) In 2015, Robit SA established a trust in South Africa called the Black Employees Empowerment Trust ("Trust"). The purpose of the Trust is to support Robit SA's local colored workers and create better business opportunities for Robit in South Africa. Robit SA conducted a directed share emission for the trust. As a result, the foundation owns 26% of Robit SA's shares. However, Robit SA is deemed to have control over the trust. The purpose and nature of the arrangement is to reward certain employees of Robit SA. The arrangement is treated as remuneration.
| Trade receivables | 31.12.2022 5 869 693,23 |
31.12.2021 7 334 239,97 |
|---|---|---|
| Group loan receivables Receivables from group companies |
23 119 455,40 | 25 459 409,03 |
| Trade receivables Other group receivables |
5 869 693,23 6 150 853,72 |
7 334 239,97 5 697 916,53 |
| Group loan receivables | 23 119 455,40 35 140 002,35 |
25 459 409,03 38 491 565,53 |
| Other group receivables Loans from group companies |
6 150 853,72 | 5 697 916,53 |
| Account payables | 35 140 002,35 236 380,68 |
38 491 565,53 2 156 581,35 |
| Groups loans Loans from group companies |
4 424 371,59 | 6 584 693,28 |
| Account payables Other accruals |
236 380,68 2 924 638,15 |
2 156 581,35 1 682 127,11 |
| Groups loans | 4 424 371,59 7 585 390,42 |
6 584 693,28 10 423 401,74 |
| Other accruals Material items in receivables carried forward |
2 924 638,15 | 1 682 127,11 |
| 7 585 390,42 | 10 423 401,74 | |
| Personnel cost accruals Material items in receivables carried forward Other accruals |
219 580,99 28 420,09 |
290 690,94 5 451,52 |
| Personnel cost accruals | 219 580,99 248 001,08 |
290 690,94 296 142,46 |
| Other accruals | 28 420,09 | 5 451,52 |
| Changes of equity during the financial period | 248 001,08 | 296 142,46 |
| Changes of equity during the financial period | 31.12.2022 | 31.12.2021 |
| Share capital 1.1. | 31.12.2022 705 025,14 |
31.12.2021 705 025,14 |
| Changes | 0,00 | 0,00 |
| Share capital 1.1. Share capital 31.12. |
705 025,14 705 025,14 |
705 025,14 705 025,14 |
| Changes Share premium |
0,00 | 0,00 |
| Share capital 31.12. reserve |
705 025,14 201 825,51 |
705 025,14 201 825,51 |
| Share premium reserve Invested unrestricted equity fund 1.1 |
85 202 252,88 201 825,51 |
85 202 252,88 201 825,51 |
| Treasury shares x) | 0,00 | 0,00 |
| Invested unrestricted equity fund Invested unrestricted equity fund 1.1 |
85 202 252,88 | 85 202 252,88 |
| 31.12 Treasury shares x) |
85 202 252,88 0,00 |
85 202 252,88 0,00 |
| Invested unrestricted equity fund Retained earnings of previous 31.12 |
85 202 252,88 | 85 202 252,88 |
| periods 1.1. | -23 674 168,30 | -18 917 344,10 |
| Prior year loss Retained earnings of previous |
-1 518 952,39 | -4 886 157,58 |
| Acquisition/distribution of own periods 1.1. |
-23 674 168,30 | -18 917 344,10 |
| shares Prior year loss |
90 313,42 -1 518 952,39 |
129 333,38 -4 886 157,58 |
| Adjustment to previous period Acquisition/distribution of own |
0,00 | 0,00 |
| shares Retained earnings 31.12 |
90 313,42 -25 102 807,27 |
129 333,38 -23 674 168,30 |
| Adjustment to previous period Profit / loss for the period |
0,00 1 478 741,96 |
0,00 -1 518 952,39 |
| Retained earnings 31.12 | -25 102 807,27 -23 624 065,31 |
-23 674 168,30 -25 193 120,69 |
| Profit / loss for the period Restricted equity |
1 478 741,96 906 850,65 |
-1 518 952,39 906 850,65 |
| Distributable shareholders´ equity | -23 624 065,31 61 578 187,57 |
-25 193 120,69 60 009 132,19 |
| Shareholders' equity | 62 485 038,22 | 60 915 982,84 |
| Distributable equity | ||
| Invested unrestricted equity fund Retained earnings of previous |
85 202 252,88 | 85 202 252,88 |
| periods | -25 102 807,27 | -23 674 168,30 |
| Profit / loss for the period Capitalised R&D |
1 478 741,96 | -1 518 952,39 |
| expenses | -230 701,47 | -435 744,84 |
| 31.12.2022 | 31.12.2021 | |
|---|---|---|
| Receivables from group companies Accrued appropriations Trade receivables |
5 869 693,23 | 7 334 239,97 |
| Group loan receivables Depreciation difference, buildings Other group receivables Depreciation difference, machinery |
23 119 455,40 402 865,28 6 150 853,72 |
25 459 409,03 385 191,65 5 697 916,53 |
| and equipment | 35 140 002,35 31 228,55 |
38 491 565,53 21 091,61 |
| Loans from group companies | 434 093,83 | 406 283,26 |
| Account payables Groups loans Deferred tax assets and liabilities not presented in balance sheet Deferred tax asset from recognized Other accruals |
236 380,68 4 424 371,59 2 924 638,15 |
2 156 581,35 6 584 693,28 1 682 127,11 |
| losses Deferred tax liabilities from |
3 260 691,24 7 585 390,42 |
3 306 593,52 10 423 401,74 |
| Material items in receivables carried forward depreciation differences |
86 818,77 | 81 256,65 |
| Personnel cost accruals | 219 580,99 | 290 690,94 |
| Other accruals Amount of shares in the company by their class of share and main provisions concerning each class of |
28 420,09 248 001,08 |
5 451,52 296 142,46 |
| 31.12.2022 | 31.12.2021 | |
|---|---|---|
| All shares are of the same class | 31.12.2022 21 179 900 shares |
31.12.2021 21 179 900 shares |
| Share premium | 31.12.2022 | 31.12.2021 | |
|---|---|---|---|
| reserve Receivables (before classified as receivables from shareholders) Invested unrestricted equity fund 1.1 |
201 825,51 170 590,64 85 202 252,88 |
201 825,51 195 461,48 85 202 252,88 |
|
| Treasury shares x) Loans maturing in more than 5 years Invested unrestricted equity fund Loans from financing institutions 31.12 |
0,00 0,00 85 202 252,88 |
0,00 85 202 252,88 |
0,00 |
| 31.12.2021 |
|---|
| 41 068 787,90 |
| 2 856 000,00 |
| 42 924 787,90 |
| 25 029 377,00 |
The Company has financial institution loans of EUR 22,0 million related with following covenants:
The company pays interest margin of 2.15%. The company paid a total of 3.0 million euros in amortizations of its loans in June and December 2022.
| Lease liabilities | 31.12.2022 | 31.12.2021 |
|---|---|---|
| Items to be paid pursuant to the lease agreements | ||
| During the following financial period | 40 008,03 | 58 943,02 |
| In later periods | 127 918,36 | 218 573,17 |
| Total | 167 926,39 | 277 516,19 |
Lease liabilities related to company cars and computers.
These terms of contract are in line with general practices in this field.
| Other liabilities | 31.12.2022 | 31.12.2021 |
|---|---|---|
| Guarantee liabilities | 46 000,00 | 77 152,13 |
Parent company has granted a counter guarantee on behalf of its subsidiary.
The company is obligated to revise the deductions of value added tax it has made for the real estate investment completed in 2017 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2026. The maximum amount of the liability amounts to EUR 72.355,65.
The company is obligated to revise the deductions of value added tax it has made for the real estate investment completed in 2018 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2027. The maximum amount of the liability amounts to EUR 16.621,12.
The company is obligated to revise the deductions of value added tax it has made for the real estate investment completed in 2021 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2030. The maximum amount of the liability amounts to EUR 164.246,31.
The company is obligated to revise the deductions of value added tax it has made for the real estate investment completed in 2022 in case the taxable use of the real estate diminishes during the revision period. The last revision year will be 2031. The maximum amount of the liability amounts to EUR 11.979,01.
Company did not do any transactions that were out of normal business activities during 2022 with related parties. More details of related party transactions in the group report.
Robit Plc Business ID: 0825627‐0
Date and place
Helsinki, February 20th, 2023
Harri Sjöholm Mikko Kuitunen Chairman of the Board Board member
Anne Leskelä Kim Gran Board member Board member
Eeva‐Liisa Virkkunen Markku Teräsvasara Board member Board member
Arto Halonen CEO
Our auditor´s report has been issued today.
Helsinki February 20th, 2023
Ernst & Young Oy Authorized Public Accountants
Toni Halonen Authorized Public Accountant
Robit Plc Business ID: 0825627-0
| Accounting Books | Method of storage |
|---|---|
| Journal | Electronically (Netsuite) |
| General Ledger | Electronically (Netsuite) |
| VAT calculations | Electronically (Netsuite) |
| Accounts Receivable | Electronically (Netsuite) |
| Accounts Payable | Electronically (Netsuite) |
| Payroll accounting | Computerised partial bookkeeping, lists of transactions |
| wage slips and pay sheets on CD | |
| Balance sheet book | Separately bound |
| Itemisations of balance sheet | Separately bound |
| Projects 01 |
Paper documents |
|---|---|
| Sampo USD 09 |
Paper documents |
| Nordea 10 |
Paper documents, statements of account on CD |
| Cash vouchers 11 |
Paper documents, statements of account on CD |
| Nordea USD -193 12 |
Paper documents |
| Nordea -211 13 |
Paper documents, statements of account on CD |
| Nordea -823 14 |
Paper documents, statements of account on CD |
| Sampo 16 |
Paper documents, statements of account on CD |
| Sampo CAD 17 |
Paper documents |
| Handelsbanken 18 |
Paper documents |
| Osuuspankki 19 |
Paper documents, statements of account on CD |
| VAT vouchers 20 |
CD |
| Sales invoices 30 |
Paper documents |
| Account sales, non-ledger 32 |
Paper documents |
| Account sales, payments 35 |
Paper documents |
| Purchasing invoices, WF 53 |
CD |
| Salaries 60 |
Paper documents |
| Financial statement receipts 95 |
Paper documents |
| Note vouchers 0 |
Paper documents |
Ernst & Young Oy Alvar Aallon katu 5 C FI-00100 Helsinki FINLAND
Tel: +358 207 280 190 www.ey.com/fi Business ID: 2204039-6, domicile Helsinki
To the Annual General Meeting of Robit Plc
We have audited the financial statements of Robit Plc (business identity code 0825627-0) for the year ended 31 December 2022. The financial statements comprise the consolidated balance sheet, statement of comprehensive income, statement of changes in equity, statement of cash flows and notes, including summaries of significant accounting policies, as well as the parent company's balance sheet, income statement, statement of cash flows and notes.
In our opinion
Our opinion is consistent with the additional report submitted to the Audit Committee.
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent company and group companies are in compliance with laws and regulations applicable in Finland regarding these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 2.4 to the consolidated financial statements and in note Auditors' fees detail to the parent company financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.
We have fulfilled the responsibilities described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report, including in relation to these matters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address the matters below, provide the basis for our audit opinion on the accompanying financial statements.
We have also addressed the risk of management override of internal controls. This includes consideration of whether there was evidence of management bias that represented a risk of material misstatement due to fraud.
| Key Audit Matter | How our audit addressed the Key Audit Matter |
|---|---|
| Revenue recognition We refer to the Group's accounting principles and the note 2.1. Robit Group's revenues in 2022 amounted to 112 million euros consisting mainly of drilling machinery consumables such as drill bits and casing systems. Revenue from sale of goods is recognized at a point in time, when control of the goods is transferred to customer, typically at the time of delivery of the goods. The Group focuses on revenue as a key performance measure which could create the incentive for revenue to be recognized too early. Revenue recognition was a key audit matter and a significant risk of material misstatement referred to in EU Regulation No 537/2014, point (c) of Article 10(2) because of the risk of correct timing of revenue recognition (cut off). |
Our audit procedures to address the risk of material misstatement relating to revenue recognition included, among others: • we assessed the reasonableness of the Group's accounting policies over revenue recognition and compliance with applicable accounting standards. • we assessed the process and methods for revenue recognition. • we tested the recorded sales transactions during the year against underlying documents on a sample basis. • we tested the sales cut off on either side of the balance sheet date on a sample basis. • we obtained confirmations of receivable balances at year end from customers and analyzed credit invoices issued after the balance sheet date. • we performed analytical procedures on revenues. • we considered the appropriateness of the Group's disclosures in respect of revenues. |
| Goodwill valuation We refer to the Group's accounting principles and the note 3.2. At the financial statement date, the value of Robit Group's goodwill amounted to 5,2 million euros representing 5 % of total assets and 10 % of total equity. The Group management uses assumptions in respect of determining weighted average cost of capital and future market and economic conditions such as economic growth, revenue and margin developments. Goodwill valuation was a key audit matter and a significant risk of material misstatement referred to in EU Regulation No 537/2014, point (c) of Article 10(2) because the impairment testing involves estimates and significant judgment from management. |
Our audit procedures to address the risk of material misstatement relating to goodwill valuation included, among others: • we involved our valuation specialists to assist us in evaluating the assumptions and methodologies used by the Group in the testing, in particular those related to the determination of weighted average cost of capital. • we focused on the sensitivity in the available headroom by cash generating unit and whether any reasonably possible change in assumptions could cause the carrying amount to exceed its recoverable amount. We tested the allocation of the assets, liabilities, revenues and expenses to each of the cash generating units. • we assessed retrospectively the outcome of the management's historical estimates. • we considered the appropriateness of the Group's disclosures in respect of impairment testing. |
| Key Audit Matter | How our audit addressed the Key Audit Matter |
|---|---|
| Valuation of trade receivables We refer to the Group's accounting principles and the notes 4.4, 4.6 and 5.3. Valuation of trade receivables was a key audit matter because of the significance of overdue trade receivables to the financial statements as a whole. As of balance sheet date December 31, 2022, the carrying value of trade receivables amounted to 19,3 million euros. Carrying value of trade receivables is a result of gross receivables netted by a provision for credit losses. Valuation of trade receivables requires management to estimate the amount of expected credit losses for the accrued provision for credit losses. |
We performed, among others, the following audit procedures: • we evaluated the valuation methods applied on valuation of trade receivables as well as performed analyses of overdue and undue gross receivable balance development and corresponding movement in credit loss provision during the year. • we sent receivable balance confirmation requests to the Group's customers and compared trade receivable balances to subsequent cash receipts. • we analyzed management's estimates of expected credit losses of the most significant aged and overdue receivables considering historical payment patterns as well as recent communications with the counterparties and dunning procedures. • we considered the appropriateness of the Group's disclosures in respect of trade receivables. |
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give a true and fair view in accordance with International Financial Reporting Standards (IFRS) as adopted by the EU, and of financial statements that give a true and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent company's and the group's ability to continue as going concern, disclosing, as applicable, matters relating to going concern and using the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there is an intention to liquidate the parent company or the group or cease operations, or there is no realistic alternative but to do so.
Our objectives are to obtain reasonable assurance on whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism throughout the audit. We also:
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 26 March 2013, and our appointment represents a total period of uninterrupted engagement of ten years. Robit Plc has been a public interest entity since 17 May 2017.
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 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.
Helsinki, 20th February 2023
Ernst & Young Oy Authorized Public Accountant Firm
Toni Halonen Authorized Public Accountant
EBITDA* =Operating profit + depreciation and amortisation
EBITA =Operating profit + amortisation of goodwill
Net working capital = Inventory + Accounts receivables and other receivables – Accounts payables and other liabilities Earnings per share (EPS), euros = Profit (loss) for the financial year Amount of shares adjusted with the share issue (average during the financial year) Return on equity,% = Profit (loss) for the financial year x Equity (average during the financial year) 100 Return on capital employed (ROCE),% = Profit before appropriations and taxes + interest expenses and other financing expenses 100 Equity (average during the financial year) + interest-bearing financial liabilities (long-term and short-term loans from financial institutions, average during the financial period) Net interest-bearing debt = Long-term and short-term loans from financial institutions – cash and cash equivalents – shortterm financial securities Equity ratio,% = Equity x Balance sheet total – advances received 100 Gearing,% = Net interest-bearing financial liabilities x
Equity 100
x
ROBIT FURTHER. FASTER. VUOSIKERTOMUS 2022
Robit PLC • Vikkiniityntie 9, FI-33880 Lempäälä (Tampere), Finland Tel. +358 3 3140 3400 • [email protected] • Business ID: FI08256270 • robitgroup.com If You have any feedback or comments on Robit's annual report 2022, please contact via e-mail [email protected]
ROBIT LYHYESTI YHTIÖ LIIKETOIMINTA VASTUULLISUUS SIJOIT TAJILLE TILINPÄÄTÖS TUNNUSLUKUJEN LASKENTAKAAVAT
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