2021
Board of Directors’
Report and Financial
Statements
ENENTO GROUP PLC
This publication includes the Board of Directors’ Report including
a report on non-financial information, the Financial Statements
including Notes to the Financial Statements, the Auditor’s Report
and the Corporate Governance Statement.
Contents
Board Of Directors’ Report 2021
BOARD OF DIRECTORS’ REPORT 2021 ………………………………………………………………………………………………… 4
Financial Statements
FINANCIAL STATEMENTS …………………………………………………………………………………………………………………………… 24
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME …………………………………………………… 24
CONSOLIDATED STATEMENT OF FINANCIAL POSITION ……………………………………………………………… 26
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY ……………………………………………………………… 27
CONSOLIDATED STATEMENT OF CASH FLOWS ……………………………………………………………………………… 29
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS ………………………………………………………… 30
1 General information ………………………………………………………………………………………………………………………… 30
2 Summary of significant accounting policies ………………………………………………………………………… 30
2.1 Basis of preparation ………………………………………………………………………………………………………………… 30
2.1.1 New standards and interpretations adopted in 2021 ……………………………………………31
2.1.2 New standards and interpretations not yet adopted …………………………………………31
2.2 Consolidation ………………………………………………………………………………………………………………………………31
2.3 Segment reporting …………………………………………………………………………………………………………………… 32
2.4 Goodwill and intangible assets ………………………………………………………………………………………… 32
2.5 Property, plant and equipment ………………………………………………………………………………………… 34
2.6 Financial assets ………………………………………………………………………………………………………………………… 34
2.7 Accounts receivable ………………………………………………………………………………………………………………… 35
2.8 Cash and cash equivalents ………………………………………………………………………………………………… 35
2.9 Financial liabilities …………………………………………………………………………………………………………………… 35
2.10 Accounts payable ………………………………………………………………………………………………………………… 36
2.11 Foreign currency translation and net investment hedge ……………………………………… 36
2.12 Interest income ………………………………………………………………………………………………………………………… 36
2.13 Share capital …………………………………………………………………………………………………………………………… 36
2.14 Current and deferred income tax …………………………………………………………………………………… 36
2.15 Employee benefits ………………………………………………………………………………………………………………… 37
2.16 Provisions …………………………………………………………………………………………………………………………………… 38
2.17 Share-based payments ……………………………………………………………………………………………………… 38
2.18 Revenue recognition ……………………………………………………………………………………………………………… 38
2.19 Lease agreements ………………………………………………………………………………………………………………… 42
2.20 Government grants ……………………………………………………………………………………………………………… 44
2.21 Operating profit (EBIT) …………………………………………………………………………………………………………… 44
3 Critical accounting estimates and judgements …………………………………………………………………… 44
3.1 Defining cash-generating units, allocating goodwill and assumptions
used in goodwill impairment testing ……………………………………………………………………………… 44
3.2 Business combinations ………………………………………………………………………………………………………… 44
3.3 Accounting for the shareholder agreement ……………………………………………………………… 45
3.4 Capitalised development expenses ……………………………………………………………………………… 45
3.5 Recoverability of deferred tax assets …………………………………………………………………………… 45
3.6 Defined benefit pension obligations …………………………………………………………………………… 45
4 Financial risk management …………………………………………………………………………………………………………… 46
4.1 Financial risk factors ………………………………………………………………………………………………………………… 46
4.1.1 Market risk ……………………………………………………………………………………………………………………………… 46
4.1.2 Credit risk ……………………………………………………………………………………………………………………………… 47
4.1.3 Liquidity risk ………………………………………………………………………………………………………………………… 49
4.2 Capital management …………………………………………………………………………………………………………… 49
5 Acquisitions …………………………………………………………………………………………………………………………………………… 50
6 Net sales ………………………………………………………………………………………………………………………………………………… 50
7 Other operating income ……………………………………………………………………………………………………………………51
8 Materials and services ………………………………………………………………………………………………………………………… 51
9 Personnel expenses ………………………………………………………………………………………………………………………………51
10 Other operating expenses …………………………………………………………………………………………………………… 52
11 Depreciation and amortisation …………………………………………………………………………………………………… 52
12 Finance income and expenses …………………………………………………………………………………………………… 52
13 Income tax expenses ……………………………………………………………………………………………………………………… 53
14 Earnings per share …………………………………………………………………………………………………………………………… 53
15 Intangible assets ……………………………………………………………………………………………………………………………… 54
16 Property, plant and equipment ………………………………………………………………………………………………… 56
17 Investments in associates ……………………………………………………………………………………………………………… 57
18 Financial instruments ……………………………………………………………………………………………………………………… 58
19 Accounts receivable and other receivables ………………………………………………………………………… 59
20 Assets and liabilities based on contracts with customers ……………………………………………… 59
21 Cash and cash equivalents ………………………………………………………………………………………………………… 60
22 Equity …………………………………………………………………………………………………………………………………………………… 60
23 Post-employment obligations ………………………………………………………………………………………………………61
24 Financial liabilities …………………………………………………………………………………………………………………………… 63
25 Deferred tax assets and liabilities …………………………………………………………………………………………… 63
2021 Enento Group FINANCIAL REVIEW 2
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FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
26 Other current liabilities …………………………………………………………………………………………………………………… 65
27 Contingent liabilities ……………………………………………………………………………………………………………………… 65
28 Related parties ………………………………………………………………………………………………………………………………… 66
29 Group companies …………………………………………………………………………………………………………………………… 69
30 Events after the reporting date ………………………………………………………………………………………………… 70
PARENT COMPANY INCOME STATEMENT (FAS) …………………………………………………………………………………… 71
PARENT COMPANY BALANCE SHEET (FAS) ………………………………………………………………………………………… 72
PARENT COMPANY STATEMENT OF CASH FLOWS (FAS) ……………………………………………………………… 74
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS …………………………………………………… 75
1 Accounting principles ………………………………………………………………………………………………………………………… 75
1.1 Valuation principles …………………………………………………………………………………………………………………… 75
1.2 Items denominated in foreign currencies ………………………………………………………………………… 75
1.3 Cash pooling arrangement …………………………………………………………………………………………………… 75
2 Net sales ………………………………………………………………………………………………………………………………………………… 75
3 Personnel expenses …………………………………………………………………………………………………………………………… 75
4 Other operating expenses …………………………………………………………………………………………………………… 76
5 Finance income and expenses …………………………………………………………………………………………………… 76
6 Appropriations …………………………………………………………………………………………………………………………………… 76
7 Income tax expenses ………………………………………………………………………………………………………………………… 77
8 Investments …………………………………………………………………………………………………………………………………………… 77
9 Long-term receivables …………………………………………………………………………………………………………………… 77
10 Short-term receivables ………………………………………………………………………………………………………………… 77
11 Equity ……………………………………………………………………………………………………………………………………………………… 78
12 Current liabilities ………………………………………………………………………………………………………………………………… 78
BOARD’S PROPOSAL FOR THE DISTRIBUTION OF FUNDS …………………………………………………………… 79
SIGNATURES TO THE FINANCIAL STATEMENTS ………………………………………………………………………………… 80
AUDITOR’S NOTE…………………………………………………………………………………………………………………………………………… 80
AUDITOR’S REPORT …………………………………………………………………………………………………………………………………………81
Governance
CORPORATE GOVERNANCE STATEMENT 2021 ………………………………………………………………………………… 86
BOARD OF DIRECTORS ……………………………………………………………………………………………………………………………… 97
EXECUTIVE MANAGEMENT TEAM …………………………………………………………………………………………………………… 99
Shares and Shareholders
SHARES AND SHAREHOLDERS…………………………………………………………………………………………………………………102
INFORMATION FOR SHAREHOLDERS ……………………………………………………………………………………………………105
ENENTO AS AN INVESTMENT ……………………………………………………………………………………………………………………106
2021 Enento Group FINANCIAL REVIEW 3
BOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Board Of Directors’ Report 2021
Business Overview
Enento Group Plc (“the Company”) is a Finnish public limited liability company and
the parent company to Enento Group (“Enento Group” or “the Group”). On the
financial statements date, the Group consisted of the parent company Enento
Group Plc, Suomen Asiakastieto Oy, Emaileri Oy, Proff AS, Proff ApS and UC AB and
its subsidiaries UC Affärsinformation AB and Proff AB.
During the fiscal year 1 January – 31 December 2021 Enento Group Plc invested
in associated company by acquiring 38,3 % shareholding in Goava Sales Intelli-
gence AB. At the same time, Enento Group Plc agreed to complete subsequent
preference share subscriptions provided that the company fulfills certain pre-
conditions laid out in the business plan, as well as acquired a purchase option to
acquire all outstanding shares in the company after a mutually agreed business
plan period ending in year 2024.
Enento Group is one of the leading Nordic providers of business and consumer
information services. The Group operates in the business and consumer informa-
tion services, collateral valuation, real estate information, sales and marketing
information as well as consumer credit information markets in Finland, Sweden,
Norway and Denmark. The Group’s products and services are primarily used for
risk management, finance and administration, decision-making, sales and mar-
keting, automation, compliance, real estate transactions and real estate financing
as well as personal financial management. The Group’s largest clients include
financial institutions and other financial service providers, expert service compa-
nies, insurance companies as well as wholesale and retail companies. The Group’s
customer base includes corporations as well as private individuals.
Enento Group has comprehensive databases consisting of information gath-
ered from the authorities and other public sources as well as privately acquired
information. The databases are the basis for the Group’s product and service
offering and the development of new products and services. The Group has a
strong track record of developing and launching new products and services.
Enento Group has an extensive product and service offering that is based on
the Group’s own databases, data links to public and private sources, data pro-
vided by the Group’s clients and other companies as well as data gathered from
the internet and other sources of unstructured data. The Group’s product and
service offering ranges from basic information concerning corporations and pri-
vate individuals to advanced risk management services, analyses as well as sales
and marketing services. The Group delivers its products and services to clients; for
example, by integrating its services into the client’s business processes, through
customer interfaces, online subscription services and open online services that
do not require separate subscription agreements. The Group also offers printed
products and credit rating certificates.
Enento Group’s organisation consists of two types of units: business areas and
functional units. The business areas are responsible for the Group’s service offering
and the functional units for the production, maintenance and active development
of the operations in their own focus area and business processes. The functional
units are Sales Units, Marketing and Communications, IT and Technology, Data
and Analytics, HR and Finance.
The Group’s business areas are:
Business Insight: Business Area consists of three business lines. Enterprise Solu-
tions is responsible for service offering and development for the strategic and
large customers in the key customer verticals, including banking and finance. The
Enterprise Solutions services are part of the previous Risk Decisions Business Area
and Customer Data Management’s Business-to-Business services. The Premium
Solutions business line provides business information services for the needs of
SMEs. Premium Solutions were previously part of the SME and Consumers Business
Area. Freemium Solutions develops freemium-model business information web-
sites in all Nordic markets. Freemium Solutions were previously part of the SME and
Consumers Business Area.
Consumer Insight: Business Area develops and provides leading consumer in-
formation and decisioning services in the Nordics. Consumer Insight serves both
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GOVERNANCE STATEMENT
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consumers and several industries, the largest ones including finance and bank-
ing as well as e-commerce, oil and energy sectors, among others. The products
and services are primarily used for risk management, finance, administration and
decision-making. Consumer services for businesses were previously part of the
Risk Decisions and Customer Data Management Business Areas. The services for
consumers were previously part of the SME and Consumers Business Area. These
services help consumers to understand and better manage their own finances,
protecting them also from identity theft and fraud.
Digital Processes: Services in this business area include, among others, real estate
and apartment information, information about buildings and their valuation as
well as solutions that help customers to automate their collateral management
processes and digitalise the administration of housing transactions. The services
of the business area are also used for compliance purposes; for instance, to iden-
tify companies’ beneficial owners and politically exposed persons.
Financial Results
Net Sales
Enento Group’s net sales in the financial year 2021 amounted to EUR 163,5 million
(EUR 151,3 million) and increased by 8,1 % compared with the previous year. Net
sales from new products and services were EUR 12,0 million (EUR 8,5 million),
which was 7,3 % (5,6 %) of the total net sales for the financial year. The net sales
growth during the period under review was mainly attributable to the recovery
of market demand in the Consumer Insight business area in both markets, the
continued strong growth of the Digital Processes business area – particularly
in Sweden – and the positive development of premium services for SMEs in the
Business Insight business area. The share of net sales represented by new ser-
vices saw strong development during the period under review, with new services
playing a significant role in driving growth during the period.
Financial Results
Enento Group’s operating profit (EBIT) for the financial year 2021 amounted
to EUR 35,2 million (EUR 27,8 million). Operating profit included items affecting
comparability of EUR 1,1 million (EUR 4,9 million), mainly arising from M&A and
integration related costs, received insurance compensation and adjustments
of redundancy costs. In addition, EUR 1,1 million one off cost relates to impact
of IFRS Interpretations Committee agenda decision. Operating profit includes
also amortisation from fair value adjustments related to acquisitions of EUR 12,6
million (EUR 12,3 million). Additional information on IFRS interpretation committee
agenda decision is available in note 2.1.1 New Standards and interpretations
adopted in fiscal year 2021.
The adjusted EBIT margin for the review period grew slightly year-on-year.
Profitability grew thanks to net sales growth with scalable business model espe-
cially in the second quarter, cost base prioritisations in abnormal macroeconom-
ic environment focusing on strategic focus areas activities and synergy savings.
However, the second half year cost development due to net sales growth com-
ing from services with high sales commission cost and cost investments in future
growth, especially in the Nordic Business Platform, affected the growth rate.
The Group’s depreciation and amortisation for the review period amounted to
EUR 22,7 million (EUR 21,3 million). Of the depreciation and amortisation, EUR 12,6
million (EUR 12,3 million) resulted from amortisation from fair value adjustments
related to the acquisitions. The Group’s depreciation of right-of-use assets (IFRS
16) during the review period amounted to EUR 2,4 million (EUR 2,3 million).
The Group’s share of associated company’s net income for the review period
was EUR -0,4 million including also amortisation from fair value adjustments (EUR 0).
Net financial expenses during the review period were EUR 2,2 million (EUR 2,7
million). Financial expenses related to lease liabilities (IFRS 16) were EUR 0,1 million
(0,2 million) in the review period, and recognised exchange rate gains amounted
to EUR 0,3 million (EUR -0,3 million).
The Group’s profit before income taxes for the review period was EUR 32,7 mil-
lion (EUR 25,1 million).
The tax amount booked as expense for the review period was EUR -6,8 million
(EUR -5,6 million).
The Group’s profit for the review period was EUR 25,9 million (EUR 19,4 million).
Cash Flow
Cash flow from operating activities amounted to EUR 43,9 million (EUR 40,9 mil-
lion). The effect of the change in the Group’s working capital on cash flow was
EUR -3,3 million (EUR 0,4 million). The impact of items affecting comparability on
2021 Enento Group FINANCIAL REVIEW 5
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FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
operating cash flow was EUR -0,3 million (EUR -4,4 million). Withholding taxes
related to the cash components of rewards paid under the long-term incentive
plan for the management had an impact on operating cash flow of EUR -1,0
million (EUR -0,5 million) during the review period.
The Group paid EUR 8,5 million (EUR 5,7 million) in taxes during the review period.
Cash flow from investing activities for the review period amounted to EUR -19,5
million (EUR -10,3 million). The cash flow from investing activities consisted of ac-
quisitions of property, plant and equipment and intangible assets as well as in-
vestment in associated company.
Cash flow from financing activities for the review period amounted to EUR -25,2
million (EUR -24,9 million). The cash flow from financing activities for the review pe-
riod consisted of an equity repayment and repayments of lease liabilities (IFRS 16).
Statement of financial position
At the end of the review period, the Group’s total assets were EUR 543,8 million
(EUR 552,5 million). Total equity amounted to EUR 316,4 million (EUR 315,1 million)
and total liabilities to EUR 227,4 million (EUR 237,5 million). The change in equity
mainly consists of the result for the review period and a translation difference
included in comprehensive income, largely attributable to the weakening of the
Swedish krona, decrease in benefit plan pension liabilities following the increase
of discount rate and the repayment of equity. Of the total liabilities, EUR 164,5
million (EUR 167,0 million) were long-term interest-bearing liabilities. Of the total
liabilities, EUR 22,7 million (EUR 23,2 million) were deferred tax liabilities, EUR 3,7
million (EUR 8,5 million) non-current pension liabilities, EUR 2,3 million (EUR 2,2
million) current interest-bearing lease liabilities and EUR 34,1 million (EUR 36,6
million) current non-interest-bearing liabilities. Goodwill amounted to EUR 354,6
million (EUR 358,2 million) at the end of the review period.
Enento Group’s cash and cash equivalents at the end of the financial year
2021 were EUR 25,3 million (EUR 26,2 million), and net debt was EUR 141,6 million
(EUR 143,0 million).
Capital expenditure
The majority of Enento Group’s capital expenditure is related to the develop-
ment of products and services, investments in Nordic service platform as well as
investments in IT infrastructure. Other capital expenditure mainly comprises pur-
chases of company cars and office equipment. The Group’s capital expenditure
in 2021 totalled EUR 15,7 million (EUR 12,0 million). Capital expenditure on intan-
gible assets in 2021 was EUR 14,1 million (EUR 11,1 million), and capital expenditure
on tangible assets was EUR 1,6 million (EUR 0,9 million).
Research and Development
The product development activities of Enento Group involve development of
the product and service offering. In 2021, the capitalised development and
software costs of the Group amounted to EUR 13,7 million (EUR 11,1 million). Cap-
italised development and software costs consist of costs related to the Group’s
product and service offering, investments in Nordic service platform as well as IT
infrastructure. The Group had no material research activities in 2021.
Personnel
At the end of the financial year, Enento Group had a total of 449 (425) em-
ployees, of whom 184 (173) were employed by the Group companies in Finland,
218 (205) by the Swedish subsidiary, 43 (45) by the Norwegian subsidiary and
4 (2) by the Danish subsidiary. Of the Group’s personnel, 0 (3) worked in man-
agement, 164 (170) in business areas, 129 (120) in Sales Units and Marketing and
Communications, 72 (94) in IT and Technology, 49 (-) in Data and Analytics and
36 (38) in Finance and HR. Data Management personnel in Data and Analytics
headcount has been reported under IT and Technology and Analytics personnel
in Data and Analytics under business areas for the prior year. The table below
presents Enento Group’s number of employees as well as wages and salaries for
2019–2021.
2021 Enento Group FINANCIAL REVIEW 6
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Key figures describing the Group’s personnel
Personnel
2021 2020 2019
Average number of personnel 432 418 427
Full time 416 405 416
Part time and temporary 16 13 11
Geographical distribution
Finland 178 169 163
Sweden 207 206 246
Norway 43 42 19
Denmark 4 2 1
Wages and salaries for the financial year (EUR million) 29,2 27, 4 28,5
The Group’s personnel expenses for the financial year 2021 amounted to EUR 39,7
million (EUR 36,8 million). This figure includes an accrued cost of EUR 0,4 million
(EUR 0,7 million) from the management’s long-term incentive plan. More informa-
tion on the management’s long-term incentive plan is provided in note 28 Related
parties in the notes to the consolidated financial statements.
Shares and shareholders
Enento Group Plc has one share class. Each share carries one vote at the Gen-
eral Meeting of Shareholders and each share confers equal right to dividends
and net assets of the Company. The shares have no nominal value. The shares
of the Company are entered in the book-entry securities system maintained by
Euroclear Finland Ltd.
A total of 27 795 new shares were subscribed for in Enento Group Plc’s share
issue directed to the company key personnel without payment. The shares were
registered in the Trade Register on 1 March 2021. After the registration, the com-
pany’s shares totalled 24 034 856. The new shares produce the right to dividends
and other distribution of assets as well as other shareholder rights as of the regis-
tration date 1 March 2021. Trading in the new shares commenced on 2 March 2021.
At the end of financial year, the Company’s share capital amounted to
EUR 80 thousand (EUR 80 thousand) and the total number of shares was
24 034 856 (24 007 061).
The Company did not hold any of its own shares at the end of the financial
year. The Annual General Meeting of Shareholders on 29 March 2021 authorised
the Board of Directors to decide on the repurchase of a maximum of 1 500 000
own shares of the Company. The authorisation replaced the corresponding au-
thorisation issued to the Board of Directors by the Annual General Meeting held
on 12 June 2020. The maximum amount corresponds to approximately 6,2% of the
Company’s shares and voting rights. The authorisation is effective for 18 months
from the date of the resolution. Further information on the authorisation is provid-
ed under “Authorisations of the Board of Directors”.
Share price and volume
During the financial year, a total of 3 080 974 (6 757 380) shares were traded, and
the total value of the exchanged shares was EUR 109,6 million (EUR 215,1 million).
The highest share price during the financial year was EUR 43,20 (EUR 40,30), the
lowest price was EUR 31,10 (EUR 24,20), the average price was EUR 35,57 (EUR 31,83)
and the closing price was EUR 33,00 (EUR 33,60). Market capitalisation measured
at the closing price of the financial year was EUR 793,2 million (EUR 806,6 million).
Shareholders
According to the book-entry securities system, the Company had 3 362 (3 070)
shareholders, including 9 (8) nominee-registered shareholders, on 31 December
2021. A list of the largest shareholders is available on the Company’s investor
pages at enento.com/investors.
2021 Enento Group FINANCIAL REVIEW 7
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FINANCIAL STATEMENTS
PARENT COMPANY
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CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Significant shareholders on 31 December 2021
Shareholder Number of shares % of shares
1 Skandinaviska Enskilda Banken AB (Publ) Helsinki Branch
1
12 137 001 50,50 %
2 Sampo Plc 2 920 000 12,15 %
3 Nordea Bank ABP 2 303 315 9,58 %
4 Fjarde AP-Fonden 678 956 2,82 %
5 Mutual Pension Insurance Company Ilmarinen 664 494 2,76 %
6 Mutual Pension Insurance Company Elo 449 455 1,87 %
7 Mutual Pension Insurance Company Kaleva 370 907 1,54 %
8 Mutual Pension Insurance Company Varma 345 000 1,44 %
9 Mutual Fund Danske Invest Finland Equity 302 080 1,26 %
10 SEB Finland Small Cap 265 000 1,10 %
11 Mutual Fund Nordea Nordic Small Cap 264 561 1,10 %
12 Citibank Europe Plc
1
255 712 1,06 %
13 Mutual Fund Evli Finnish Small Cap 239 712 1,00 %
14 Church Pension Fund 198 129 0,82 %
15 Föreningen Konstsamfundet r.f. 190 000 0,79 %
16 Danske Bank A/S Finnish branch
1
127 943 0,53 %
17 OP-Finland Mutual Fund 126 729 0,53 %
18 Clearstream Banking S.A.
1
108 405 0,45 %
19 Mutual Fund Säästöpankki Kotimaa 96 972 0,40 %
20 Fyrklöver Invest Oy AB 91 744 0,38 %
20 largest shareholders total 22 136 115 92,10 %
All shares 24 034 856 100,00 %
1
Nominee-registered.
2021 Enento Group FINANCIAL REVIEW 8
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Shareholder structure by sector, 31 December 2021
Sector
Number of shareholders % of shareholders Number of shares % of shares
Finance and insurance institutions 34 1,01 % 7 452 450 31,01 %
Foreign shareholders 14 0,42 % 13 342 569 55,51 %
General government 11 0,33 % 1 516 702 6,31 %
Households 2 883 85,75 % 953 007 3,97 %
Companies and housing companies 324 9,64 % 492 296 2,05 %
Non-profit organisations 96 2,86 % 277 832 1,16 %
Total 3 362 100 % 24 034 856 100 %
The information is based on the list of the Company’s shareholders maintained by Euroclear Finland Ltd. Each nominee-registered shareholder is registered as one sha-
reholder. It is possible to manage several shareholders’ portfolios through one nominee-registered shareholder.
Management’s share ownership on 31 December 2021
Board of Directors
Number of shares
Lapveteläinen Patrick, Chairman of the Board 10 000
Related party ownership 8 000
Carpén Petri 0
Related party ownership 0
Forsberg Erik 1 500
Related party ownership 0
Johansson Martin 3 000
Related party ownership 0
Kuusisto Tiina 0
Related party ownership 0
Parhiala Minna 0
Related party ownership 0
Total 22 500
2021 Enento Group FINANCIAL REVIEW 9
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Management
Number of shares
Stråhlman Elina, CEO 4 007
Related party ownership 0
Göransson Gabriella 1 326
Related party ownership 0
Hane Siri 3 606
Related party ownership 0
Julin Jari 4 620
Related party ownership 0
Karemo Mikko 12 347
Related party ownership 0
Preger Victoria 3 656
Related party ownership 0
Werner Karl-Johan 3 656
Related party ownership 0
Ylipekkala Heikki 4 307
Related party ownership 0
Öhlander Eleonor 3 656
Related party ownership 0
Total 41 181
Auditor
Number of shares
Grandell Martin, auditor in charge 0
Related party’s ownership 0
Total 0
2021 Enento Group FINANCIAL REVIEW 10
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Management
Board of Directors
The Company’s Board of Directors consists of a minimum of four and maximum
of eight members. The Annual General Meeting elects the Board members and
decides on their remuneration. The Board of Directors elects the Chairman of
the Board and also, if necessary, the Vice Chairman of the Board from among
its members. The term of office of the Board members ends at the conclusion of
the first Annual General Meeting following their election. There are no limitations
to the number of terms a person can be a Board member.
Enento Group Plc’s Annual General Meeting held on 29 March 2021 adopted
the financial statements and discharged the Board members and CEO from lia-
bility for the financial year ended 31 December 2020. The Annual General Meeting
resolved that the Chairperson of the Board of Directors be remunerated EUR 52
000 annually and that the members of the Board of Directors be remunerat-
ed EUR 36 750 annually. In addition, an attendance fee of EUR 500 is paid for
attending a Board meeting. For attending the Board Committee meetings, the
Chairpersons of the Committees will be remunerated EUR 500 per meeting and
the Committee members will be remunerated EUR 400 per meeting.
In accordance with the proposal of the Shareholders’ Nomination Board,
the Annual General Meeting of 29 March 2021 re-elected Petri Carpén, Patrick
Lapveteläinen, Martin Johansson, Tiina Kuusisto and Minna Parhiala as members
of the Board of Directors. Erik Forsberg was elected as a new member of the
Board of Directors. Following these elections, the Board of Directors consisted
of six members. In its organisational meeting held on 29 March 2021, the Board
of Directors elected Patrick Lapveteläinen as the Chairman of the Board. The
Board of Directors met 13 times in 2021. In addition, on three occasions, pursuant
to Chapter 6, Section 3 of the Companies Act, the Board of Directors made a
decision without holding a meeting.
Board Committees
The Board of Directors appoints two committees from among its members: i)
the Audit Committee and ii) the Nomination and Remuneration Committee. The
Board of Directors may also appoint other committees, if deemed appropriate.
The committees assist the Board of Directors by preparing and drawing up pro-
posals and recommendations for the Board of Director’s consideration. On 29
March 2021, the Board of Directors re-nominated Petri Carpén, Erik Forsberg and
Martin Johansson as members of the Audit Committee. Petri Carpén continued
as the Chairman of the Audit Committee.
The Nomination and Remuneration Committee consists of at least three mem-
bers. On 29 March 2021, the Board of Directors decided not to appoint the Nom-
ination and Remuneration Committee.
Authorisations of the Board of Directors
Share issue authorisation 29 March 2021
The Annual General Meeting of Shareholders held on 29 March 2021 authorised the
Company’s Board of Directors to decide on one or more share issues, including the
right to issue new shares or transfer shares held by the Company. The maximum
number of shares covered by the authorisation is 1 500 000. The Board of Directors
was also authorised to decide on a directed share issue. The authorisation can be
used for material arrangements from the Company’s point of view, such as financ
-
ing or implementing business arrangements or investments or for other purposes
determined by the Board of Directors, in which case there would be a significant
financial reason for issuing shares, potentially in the form of a directed share issue.
The company’s Board of Directors was authorised to decide on all other share
issue conditions, including payment term, specification grounds for subscription of
shares and subscription price or issue shares without payment or that subscription
price can be paid by cash, but also fully or partially by other assets.
The authorisation is effective for 18 months from the close of the Annual Gener-
al Meeting, until 29 September 2022. The authorisation replaced the correspond-
ing authorisation issued to the Board of Directors by the Annual General Meeting
held on 12 June 2020.
Enento Group Plc’s Board of Directors decided on 12 February 2021 on a di
-
rected share issue related to the reward payment from the performance period
2018–2020 of the Performance Share Plan 2018. In the share issue, approximately
27 795 new Enento Group Plc shares will be issued without consideration to the key
employees participating in the Performance Share Plan 2018 in accordance with
the terms and conditions of the plan. The decision on a directed issue of shares
was based on the authorisation given to the Board of Directors by the Annual
General Meeting on 12 June 2020.
2021 Enento Group FINANCIAL REVIEW 11
BOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Authorisation for repurchasing own shares 29 March 2021
The Annual General Meeting authorised the Board of Directors to decide on the
repurchase of maximum of 1 500 000 company’s own shares, in one or several
instalments. The shares will be repurchased with the Company’s unrestricted
shareholders’ equity, and the repurchases will reduce funds available for the
distribution of profits. The shares can be repurchased for example to develop
the company’s capital structure, carry out or finance potential corporate acqui-
sitions or other business arrangements, to be used as a part of the company’s
incentive programme or to be otherwise conveyed further, retained as treasury
shares, or cancelled.
In accordance with the resolution of the Board of Directors, shares may be re-
purchased also in a proportion other than that in which shares are owned by the
shareholders (directed acquisition) at the market price of the shares at market-
places on which the company shares are traded or a price otherwise established
on the market at the time of the repurchase. The Board of Directors decides how
shares are repurchased. Among other means, derivatives may be used in acquir-
ing the shares. According to the authorisation, the Board of Directors decides on
any other matters related to the repurchase of shares.
The authorisation is effective for 18 months from the close of the Annual Gener-
al Meeting, until 29 September 2022. The authorisation replaced the correspond-
ing share repurchase authorisation issued to the Board of Directors by the Annual
General Meeting held on 12 June 2020. The authorisation has not been used as
of 11 February 2022.
The Company publishes a separate Corporate Governance Statement.
CEO and Executive Team
Jukka Ruuska served as the Chief Executive Officer (CEO) of the Company until
31 October 2021. Enento Group CFO Elina Stråhlman served as interim CEO
between 1 November – 31 December 2021. At the end of the financial year 2021,
the members of the Executive Team were Elina Stråhlman (Interim CEO and Fi-
nance), Gabriella Göransson (Consumer Insight), Heikki Koivula (Business Insight
until 31 December 2021), Siri Hane (Business Insight starting 1 January 2022),
Heikki Ylipekkala (Digital Processes), Mikko Karemo (Sales Units), Victoria Preger
(Marketing and Communications), Jari Julin (interim CIO - IT and Technology),
Karl-Johan Werner (Data and Analytics) and Eleonor Öhlander (HR).
Jeanette Jäger will start as Enento Group Plc CEO on 1 January 2022. Siri Hane
will start as Director for Business Insight Business Area on 1 January 2022. Daniel
Ejderberg will start as CIO on 1 February 2022.
Auditor
Authorised Public Accountants PricewaterhouseCoopers Oy served as the Com-
pany’s auditor in 2021. The auditor in charge was Martin Grandell, Authorised
Public Accountant.
Loans, Liabilities and Commitments to Third Parties
Enento Group Plc has a loan agreement on a total of EUR 180 million of financ-
ing with Danske Bank A/S, OP Corporate Bank Plc and Nordea Bank Plc. The
agreement consists of a term loan of EUR 160 million and a revolving credit
facility of EUR 20 million. The Company took out the term loan partly in EUR and
partly in SEK in accordance with the terms of the loan agreement. At the end
of the financial year, the Company had used EUR 0 (EUR 0 million) of its credit
facility. The loans will mature in one instalment in October 2023.
Group has a multi-currency cash pool arrangement with Danske Bank A/S. An
overdraft of EUR 15,0 million is included in the cash pool arrangement. The over-
draft had not been utilised on 31 December 2021.
Enento Group’s cash and cash equivalents on 31 December 2021 amounted to
EUR 25,3 million (EUR 26,2 million).
Further information on loans, liabilities and commitments to related parties is
provided in note 24 Financial liabilities, note 27 Contingent liabilities and note 28
Related parties in the consolidated financial statements.
Group Structure and Organisation
At the end of the financial year, Enento Group consisted of Enento Group Plc,
its wholly-owned subsidiaries Suomen Asiakastieto Oy, Emaileri Oy, Proff AS and
Proff ApS as well as UC AB and its wholly-owned subsidiaries UC Affärsinforma-
tion AB and Proff AB.
Enento Group’s organisation consists of two types of units: business areas and
functional units. The business areas are responsible for the Group’s service offering
and the functional units for the production, maintenance and active development
of the operations in their own focus area and business processes. The functional
2021 Enento Group FINANCIAL REVIEW 12
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CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
units are Sales Units, Marketing and Communications, IT and Technology, Data
and Analytics, HR and Finance.
Legal proceedings
Enento Group was not party to any other material litigation or administrative
proceeding in 2021 that may have a material effect on its financial position or
profitability. The Company is not aware of any material such proceedings being
pending or threatened.
Events after the reporting date
There have been no significant events after the end of the fiscal year.
Report on non-financial information
Enento Group’s Board of Directors and management are responsible for the
management of corporate responsibility. Enento Group complies with laws
and regulations of its operating countries, the Articles of Association, rules
and guideline of Nasdaq Helsinki and Corporate Governance Code for list-
ed companies in its administration. In practical work, responsibility issues are
guided by the Group’s Code of Ethics. Furthermore, operations are governed
by policies and operating practices approved by the Board of Directors and
Executive Team. All the partners must also conform to the laws and agreements.
The Code of Ethics, along with key Group-level policies guidelines, is published
online on the Company’s investor pages.
Enento Group’s business model and governance
Enento Group’s mission is to maintain and create trust in the markets: in trading
and the concluding of agreements between companies as well as between
companies and private parties. Trust is created through the provision of services
that help companies verify the reliability of their contractual counterparties.
The foundation for these services consists of Enento Group’s Nordic databases
of up-to-date information on companies and consumers. The digital services
refined from this data improve the efficiency of customers’ operations, increase
responsibility and reduce the Group’s carbon footprint.
The Group’s operations are guided by
• The strategy approved by the Board of Directors
• The Group’s annual budget and action plan
• The Group’s management and governance model.
The quality management system of Suomen Asiakastieto Oy, a subsidiary of Enen-
to Group Plc, has been certified since 2015, and the certificate has been subse-
quently renewed in 2018 and January 2021. At the end of 2021, in connection with
the annual audit of the quality management system, the operations of Enento
Group’s subsidiary UC AB were audited and included in the ISO 9001:2015 certif-
icate. In the certification audit, the system was found to be compliant with the
9001:2015 standard. The certificate will be valid for a period of three years until 15
January 2024.
The key processes defined in the system are related to the customer-driven
development and management of products and services. The performance in-
dicators of the quality management system are the results of the audits, which
monitor, for example, development measures, best practices, quality deviations
and quality accidents. The number of development measures implemented in
2021 was 64 and the number of identified best practices 17. Internal audits found
3 quality deviations and 2 quality accidents. Corrective measures and their fol-
low-up measures have been prepared to remedy the above-mentioned defects.
Enento Group’s strategy 2020–2023 and sustainability
Enento Group aims for growth and increased profitability by strengthening
its current position and seizing new opportunities within credit information,
business information and the digitalisation of data-related processes. Focusing
on innovation, building a future-fit innovative organisation and developing a
Nordic service platform will enable Enento to achieve these goals.
Enento has three main objectives for the strategy period: to retain and
strengthen its leading position in credit information, to become a preferred alter-
native to knowledge-based business service processes and to become a leading
provider of business information.
Sustainability is at the core of Enento’s business. The Group contributes to sus-
tainability in society by, for example, preventing over-indebtedness and help-
ing customers make responsible and sustainable decisions. The aim is to create
a broad Nordic offering of sustainability services to support customers’ deci-
sion-making. The Group’s overall impact on society is very positive.
2021 Enento Group FINANCIAL REVIEW 13
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CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Environmental issues
The carbon footprint of Enento Group’s own operations is low. Prior to the
COVID-19 pandemic, the most significant environmental impacts arose from
business travel, the energy consumption of offices and hosting and data ser-
vices. The Group’s objective is to achieve carbon neutrality by 2023. In order to
achieve this goal, the sources and quantities of emissions have been deter-
mined, and a carbon footprint has been determined on the basis of these, as
well as the measures to be taken.
The Group’s largest offices are located in Helsinki (headquarters) and Stock-
holm. Both are in locations with good public transport connections. They are
modern activity-based offices in which fewer heated square metres per employee
are needed. The lessors of both of the premises monitor electricity consumption,
the use of warm and cold water, district heating, district cooling and waste man-
agement on a monthly basis.
Digital service production and data processing account for part of the Group’s
total emissions. The Group’s IT environments have mainly been virtualised and
procured as outsourced data centre services that operate energy-efficiently.
Suppliers of data centre services use renewable energy without carbon dioxide
(CO
2
) emissions. More detailed annual comparison figures will be published in a
separate sustainability report. There are no significant risks associated with the
Group’s environmental aspects.
Social and employee-related issues
In 2021, the number of people employed by Enento Group on average was 432,
of whom 178 worked in the Finnish companies, 207 in the Swedish companies, 43
in the Norwegian company and four in the Danish company.
Enento Group emphasises competence development, community spirit and
the development of high-quality management in its approach to social respon-
sibility. The Group’s goal is to be an attractive employer that offers interesting jobs
for people representing various competence backgrounds. Enento Group offers
opportunities for employees to develop their expertise or management skills and
seek new roles inside the Group within its Nordic offices. Recruitment is a separate
process supported by a separate recruitment system.
The Group ensures the fulfilment of its social responsibility through fair working
conditions, remuneration and practices that are based on, among other things,
the Group’s values and Code of Ethics, Recruitment Policy, Remuneration Policy,
Working Environment Policy, Remote Work Policy and Diversity and Equality Policy.
The quality of management, experience in the work community, clear work
objectives and competence are the key factors influencing the employees’ com-
mitment to work and well-being at work. During 2021, the Grow-talk model was
continued, which encourages and supports each employee to grow as a profes-
sional and to succeed together with colleagues. Grow Talk discussions start with
an annual personal target-setting discussion held in the first quarter of the year.
The target-setting discussion is followed by monthly follow-up discussions with the
supervisor and evaluation discussions held twice a year. The purpose of the discus-
sions is to create commitment and build an understanding of how each employee
contributes to the achievement of the shared goals. Another purpose of the discus-
sions is to ensure each employee’s well-being and ability to develop in their work.
The Group continued to develop its supervisors’ competence in the manage-
ment of hybrid work and organised competence development for all employees
in connection with hybrid work. In addition, measures were taken to support oc-
cupational well-being, such as Meeting Free Wednesdays and Auntie’s occupa-
tional well-being service. Also, personnel’s coping, motivation and experience in
management and hybrid work were surveyed quarterly using the Pulse survey.
The most recent Trust Index survey carried out in September 2021 showed that
being a friendly workplace is one of Enento Group’s biggest strengths. As many
as 91% of Enento’s employees participated in the Trust Index survey. If the Trust
Index score is 70% or higher, the organisation is awarded the international Great
Place to Work
®
certificate for good employee experience and corporate culture.
Suomen Asiakastieto Oy and UC AB are certified as Great Place To Work compa-
nies from year 2020, and Proff AS from 2021.
Ensuring information security and privacy protection
Respecting privacy and ensuring information security are at the very core of
Enento Group’s operations and services. The Group processes data with care
and in full compliance with the law, and privacy protection is ensured in the pro-
cessing of personal data. Information security, privacy and confidentiality are
addressed in the Group’s Code of Ethics, Information Security Policy and Safety
Policy. Furthermore, the confidentiality obligation is included in the employment
agreement.
2021 Enento Group FINANCIAL REVIEW 14
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CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Respect for human rights
Enento Group operates in the Nordic countries, where respect for human rights
and equal treatment of people are generally at a very high level. At Enento
Group, the requirement that human rights and equality must be respected
applies to personnel and partners alike. The Code of Ethics includes practices
and procedures for dealing with issues related to respect for human rights. There
were no suspected violations of human rights or violations related to discrimina-
tion or other unfair treatment of employees observed in 2021.
The Group has a whistleblowing channel to enable employees to report sus-
pected violations anonymously.
Anti-corruption and bribery
Enento Group’s internal guidelines prohibit corruption and bribery. The Group’s
practices and procedures reduce opportunities for taking action that would be
contrary to the rules. The Ethical principles include operational guidelines for
handling issues related to corruption and bribery. No corruption or bribery cases
or other violations related to unethical business practices were reported in 2021.
Risks and uncertainties
Enento Group is exposed to a number of risks and uncertainties that are re-
lated, for instance, to the market conditions and the Group’s industry, strategy,
business and financing. The realisation of such risks could have a considerable
adverse effect on Enento Group’s business, financial situation, performance and
future outlook.
Market and strategic risks
The demand for the Group’s products and services depends on the activity of
the business operations of its customers. Slow economic growth or a declining
economy may result in a weakening demand for the services of Enento Group.
In addition, regulatory changes that reduce the lending ability of the Group’s
customers may have a negative effect on the demand for the Group’s services
and products.
Due to the COVID-19 pandemic, restrictions have been placed at the state
level in the Nordic countries. These restrictions can have significant impacts on
economic activity. The Group has assessed the risks and uncertainties arising from
the restrictive measures. Due to the extraordinary situation, the Group’s ability to
predict the potential effects on the demand for its services has been somewhat
reduced. The potential business impacts of the pandemic-related risks that af-
fect demand factors are managed by proactive cost adaptation measures and
contingency plans.
Enento Group operates in a number of product and service markets in which
competition is continuously becoming tougher and customers’ needs keep
changing. Information services are available more easily than before. This is pri-
marily attributable to better availability of public information, increase of digi-
tal information and new service providers, who may increase competition in the
markets. Better availability of information may also provide the Group’s customers
with better opportunities for in-house development of services, such as analysis
services.
Tendering carried out by customers and general cost-awareness may put
some pressure for lower prices on the Group’s markets. In addition, price pressures
caused by Enento Group’s competitors may have a negative effect on the Group’s
margins and result and hamper its opportunities to acquire new customers on the
current terms and conditions.
No customer of the Group accounted for more than ten per cent of the Group’s
total invoicing in 2021. Even though the Group’s customer base is diverse, the loss
of one or more major customers or a significant decrease in sales to one or more
such customers for any reason could have a very harmful effect on the Group’s
business, financial position, business result and future outlook.
The gathering, storage and use of information is subject to strict regulations,
for example data privacy legislation. In Sweden, a licence is required for certain
operations of the Group, such as credit register-related operations. In addition,
according to UC’s shareholder agreement, UC’s minority shareholders may veto
certain decisions concerning UC’s credit register and the control of credit register
data. This may restrict Enento Group’s possibilities to materially change business
operations related thereto. The Group and its employees must also comply with
numerous other laws and regulations. Changes to the regulatory framework may
require Enento Group to adapt its service offering or strategy. These chang
-
es can include an introduction of governmental credit registers on which there
already are plans in the Nordic countries. Any actions in breach of regulations
concerning operations subject to a licence may lead to changing of Enento
2021 Enento Group FINANCIAL REVIEW 15
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FINANCIAL STATEMENTS
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FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Group’s operations, imposing additional conditions to the licence or cancella-
tion of the licence. The above may also lead to higher costs, force the Group to
stop providing some products or services, or prevent or delay development of its
operations, or the Group may end up in legal proceedings or become subject
to legal claims.
Enento Group has a lot of goodwill recognised on acquisitions. Impairment of
goodwill and other assets could have a material effect on the Group’s reported
result.
Operational risks
Safe and uninterrupted functioning of Enento Group’s IT network and sys-
tems, cyber security and mitigation of cyber risks are critical for the company’s
business. Unauthorised access to or disclosure of information as well as loss
or abuse of information may lead to a breach of data protection and other
applicable laws by Enento Group, harm to reputation, loss of income, claims or
measures taken by the authorities.
In its business, Enento Group relies on information from external sources, such
as government offices and other public sources, customers and other sources. If
one or more of them stopped providing information for any reason or considerably
increased the price of the information provided, this could have a harmful effect
on Enento Group’s ability to offer its products and services to its customers.
Enento Group believes that its continued success will be influenced by its ability
to meet customers’ needs through the development of products and services that
are easy to use and that seek to increase customers’ business process efficiency,
offer cost savings, and facilitate better business decisions. The Group’s financial
result may suffer if the development of new products or services or improvements
to existing products are delayed for reasons related to possible technical chal-
lenges, problems related to external IT development resources, information ac-
quisition or regulatory requirements.
Enento Group has invested and will continue to invest in its technical infra-
structure, including equipment and software. If Enento Group fails in its techno-
logical investments, its income may not develop as expected and its expenses
may increase. In addition, the Group may end up in an unfavourable competitive
position in the market if it cannot, for example, offer certain new products and
services or gather certain type of new information.
Despite testing and information quality control, products and services devel-
oped and supplied by Enento Group as well as the operating systems and soft-
ware it uses may contain errors or faults. Material defects or errors in the Group’s
information, products or services as well as delays in providing products and ser-
vices may harm its reputation or lead to loss of income, increased costs, regulato-
ry measures or legal claims. Enento Group’s IT network and infrastructure may be
exposed to damage and problems resulting from many reasons. Such damage or
problem may lead to a failure of Enento Group’s IT infrastructure, which in turn may
complicate the company’s work and lead, for instance, to breaches of contract.
The Group’s brands and reputation are important competitive advantages.
The company’s success is also based on its own technologies, processes, methods
and information. The company protects its intellectual rights with trademarks and
domain names, for instance, and by relying on business secrets and the develop-
ment of products and technology. Failure to protect intellectual rights, damage
to reputation or negative views of the company in the market may have a neg-
ative effect on the company.
Enento Group’s success also depends on its management and other profes-
sional personnel as well as its ability to recruit competent personnel and develop,
train and retain them. The Group’s inability to retain or recruit new employees may
have a material harmful effect on the Group.
Disproportionately high sickness absences and especially long sick leaves for
key personnel pose a risk to the development of the Group’s business. In infor-
mation work, the most significant health hazards consist of inadequate work er-
gonomics and stress caused by work pressure. A good working atmosphere and
high-quality management, as well as early intervention in problem areas, prevent
the need for sick leaves. The current pandemic has also shown that, in excep-
tional circumstances, the protection of workers’ health requires compliance with
government guidelines, active measures and special arrangements.
Enento Group has taken out insurances to cover various risks or loss events. The
Group’s insurance coverage may be insufficient or the Group may not be able to
maintain its current insurance coverage, in which case the company may suffer
losses not covered by its insurances.
Enento Group is exposed to various financing risks, including currency exposure,
interest rate risk and solvency risk. The Group’s financing risks and their manage-
ment are described in note 4 in Notes to the consolidated financial statements.
2021 Enento Group FINANCIAL REVIEW 16
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CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Financial targets, Dividends and Outlook
Financial targets
The Board of Directors of Enento Group has adopted long-term financial tar-
gets and dividend policy for the Group. The long-term financial targets are:
• Growth: 5 to 10 per cent annual average net sales growth
• Profitability: Adjusted EBITDA growth rate exceeding net sales growth rate
• Balance sheet structure: Net debt to Adjusted EBITDA below 3x while
maintaining an efficient capital structure.
Dividend Policy
The Company’s dividend policy is to distribute as dividends at least 70 per cent
of the Company’s net profit, whilst taking into consideration the business devel-
opment and investment needs of the Group. Any dividends to be paid in future
years, their amount and the time of payment will depend on Enento Group’s
future earnings, financial condition, cash flows, investment needs, solvency and
other factors.
Enento Group distributed funds to its shareholders totalling EUR 22 833 thou-
sand for the financial year 2020 and EUR 22 807 for the financial year 2019. The
dividend and capital repayment was EUR 0,95 per share for both the financial
year 2020 and the financial year 2019.
Pursuant to the Companies Act, the Annual General Meeting of Shareholders
resolves on the distribution dividend based on the Board of Directors’ proposal.
Dividends are typically distributed once per financial year, and dividends can only
be distributed once the Annual General Meeting of Shareholders has approved
the financial statements. If dividends are distributed, all shares confer equal rights
to dividends.
Proposal for the Distribution of Funds
At the end of the financial year 2021, the distributable funds of the Group’s
parent company amounted to EUR 397 067 678,77, of which the profit for the
financial year was EUR 29 306 163,84. The Board of Directors proposes to the An-
nual General Meeting convening on 28 March 2022 that funds amounting to EUR
1,00 per share, total EUR 24 034 856,00 based on the Company’s registered total
number of shares at the time of the proposal, be distributed for the financial
year that ended on 31 December 2021 as follows:
EUR/share EUR
From the invested unrestricted equity reserve as a
repayment of capital
1,00 24 034 856,00
To be retained in unrestricted equity 373 032 822,77
Total 397 067 678,77
The equity repayment from the reserve for invested unrestricted shareholders’
equity will be paid to a shareholder registered in the Company’s shareholders’
register held by Euroclear Finland Ltd on the payment record date of 30 March
2022. The Board of Directors proposes that the funds be paid on 11 April 2022.
Future outlook
The general macroeconomic environment and the pandemic are persisting un-
certainties. However, the increased market demand for Enento Group’s services
is expected to continue. This, combined with introduction of new services, is
expected to support growth in 2022. However, the recent weakening of Swedish
Krona cause uncertainty in relation to growth outlook and may impact the net
sales growth with reported exchange rates in 2022.
Enento Group expects that the platform transformation-related costs will con
-
tinue to impact the results in 2022.
Guidance
• Net Sales: Enento Group expects its net sales growth in 2022 at comparable
exchange rates to be toward the lower end of the long-term target range (5–10 %).
• EBITDA: Enento Group expects its adjusted EBITDA margin at comparable
exchange rates to improve somewhat in 2022 compared to previous year.
Comparable exchange rates mean that the effects of any changes in currencies
are eliminated by calculating the figures for the previous period using current
period’s exchange rates.
The future outlook is subject to risks related to, among other factors, the eco-
nomic development of Enento Group’s countries of operation and the devel-
opment of the Group’s business operations. The most significant risks related to
2021 Enento Group FINANCIAL REVIEW 17
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CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
business operations include, for example, risks related to the success of product
and service development activities, launches of new products and services and
risks related to competitive tenders and to losing significant customer accounts.
Key income statement and cash flow figures and ratios
EUR million (unless otherwise mentioned)
2021 2020 2019
Net sales 163,5 151,3 146,0
EBITDA 58,0 49, 1 48,3
EBITDA margin, % 35,5 32,5 33,1
Adjusted EBITDA 59, 1 54,0 51,5
Adjusted EBITDA margin, % 36,2 35,7 35,3
Operating profit (EBIT) 35,2 27, 8 2 7, 8
Operating profit (EBIT) margin, % 21,6 18,4 1 9, 0
Adjusted EBIT
1
49,0 45,0 42,6
Adjusted EBIT margin, %
1
30,0 29,7 29,2
Free cash flow
3
29,8 32,6 32,1
Cash conversion, % 51,5 66,3 66,4
Net sales from new products and services
2
12,0 8,5 5,9
New products and services of net sales, %
2
7, 3 5,6 4,0
Key balance sheet ratios
EUR million (unless otherwise mentioned)
2021 2020 2019
Balance sheet total 543,8 552,5 543,3
Net debt 141,6 143,0 148,1
Net debt to adjusted EBITDA, x 2,4 2,6 2,9
Return on equity, % 8,2 6,2 6,2
Return on capital employed, % 7, 3 5,8 5,8
Equity ratio, % 59, 4 58,3 58,3
Gearing, % 44,7 45,4 4 7, 7
Gross investments 15,7 12,0 12,4
Key financial information for the Group
1
The method used for calculating the adjusted operating profit (EBIT) is that also amortisation from fair value adjustments related to the acquisitions and external expenses arising from significant regulatory
changes are taken into account as items to be adjusted.
2
The method for calculating the share of new products and services include the total sales of products launched during the past 24 months are included in the shares. Previously, the share was calculated as the net
sales for products and services launched during the past 12 months added by the change in net sales for products and services launched during the preceding 12 months.
3
The method for calculating free cash flow has been changed from 1 January 2018 so that the impact of paid taxes is no longer added to the cash flow of business operations.
2021 Enento Group FINANCIAL REVIEW 18
BOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Share-related key figures
EUR (unless otherwise mentioned)
2021 2020 2019
Earnings per share, basic 1,08 0,81 0,82
Earnings per share, diluted 1,08 0,81 0,82
Earnings per share, comparable
4
1,49 1,21 1,20
Equity per share 13,16 13,12 12,95
Dividend per share 1,00 0,95 0,95
Dividend per earnings, % 92,6 117,3 115,9
Effective dividend yield, % 3,0 2,8 3,0
Price per earnings 30,6 41,5 38,4
Share price development
Average price 35,57 31,83 26,56
Highest price 43,20 40,30 34,70
Lowest price 31,10 24,20 22,00
Closing price 33,00 33,60 31,50
Market capitalisation, EUR million 793,2 806,6 755,8
Trading volume, pcs 3 080 974 6 757 380 2 509 597
Trading volume, % 12,82 28,15 10,5
Adjusted number of shares
Weighted average during financial year 24 030 363 24 004 917 23 986 073
At the end of the financial year 24 034 856 24 007 061 23 993 292
Number of shares adjusted for share issue, diluted
Weighted average during financial year 24 039 950 24 029 391 24 013 292
At the end of the financial year 24 044 443 24 031 536 24 020 511
4
The comparable earnings per share do not contain amortisation from fair value adjustments related to the acquisitions or their tax impact.
2021 Enento Group FINANCIAL REVIEW 19
BOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Alternative performance measures used in financial reporting
Enento Group Plc discloses a summary on the use of alternative performance
measures used by the Group, definitions of the performance measures used and
their matching with the IFRS financial statements figures in accordance with the
ESMA (European Securities and Markets Authority) Guidelines on Alternative Per-
formance Measures
1
.
Enento Group Plc presents alternative performance measures as additional
information for key performance measures in the consolidated statements of in-
come, financial position and cash flows prepared according to IFRS to reflect the
financial development of its business operations and to enhance comparability
from period to period. According to the management’s view, alternative perfor-
mance measures provide substantial supplemental information on the result of
the Group’s operations, financial position and cash flows to the management
and investors, securities analysts and other parties. Alternative performance mea-
sures are not, as such, included in the consolidated financial statements pre-
pared according to IFRS, but they are derived from the IFRS consolidated financial
statements by adjusting items in the consolidated statements of income, financial
position and cash flows and/or by proportioning them to each other. Alternative
performance measures should not be considered as a substitute for measures
in accordance with IFRS. Not all companies calculate alternative performance
measures in a uniform way, and thus the alternative performance measures of
the Company are not necessarily comparable with similarly named performance
measures of other companies.
Certain non-operational or non-cash valuation transactions with significant
income statement impact are adjusted as items affecting comparability, if they
arise from:
• M&A and integration-related expenses as one-off transactions
• negotiated redundancy payments omitted from the operative cost structure
• external expenses arising from significant regulatory changes as one-off
transactions
• compensation for damages as one-off transactions
• legal actions as one-off transactions.
1
Alternative Performance Measure refers to a financial measure other than financial measure defined or
specified in IFRS norms.
Alternative performance measures are defined as follows:
• EBITDA
EBITDA is the profit (loss) for the financial year before (i) income taxes, (ii) finan-
cial income and expenditure and (iii) depreciation and amortisation.
• Adjusted EBITDA
Adjusted EBITDA is defined as EBITDA excluding items affecting comparability.
• Adjusted EBIT
Adjusted EBIT is defined as EBIT excluding items affecting comparability and
amortisation from fair value adjustments related to acquisitions.
• Net sales from new products and services
Net sales of new products and services include the total sales of products
launched during the past 24 months. New products and services are a
significant driver of growth in the company and consumer data market. The
impact of new products and services is especially important in times of poor
economy, because they dilute the impact of the poor economic situation on
the demand for current products and services. New products and services
replace or update old products and services. They are often more advanced
than old products and services, or they respond to potential market demand.
In addition to customer needs, the development of new products and services
is also guided by opportunities recognised by service providers. According to
the Company’s view, company and consumer data markets in its countries of
operation are somewhat immature compared to many European countries,
and there is potential for new products and services in the market.
• Free cash flow
Free cash flow consists of the cash flow from operating activities before (i)
paid interests and other financing expenses, (ii) received interests and other
financing income deducted by (iii) acquisitions of tangible and intangible as-
sets. The method used for calculating the free cash flow was changed effec-
tive from 1 January 2018 so that the impact of paid taxes is no longer added
to the cash flow of business operations.
• Cash conversion
Cash conversion is calculated by dividing free cash flow by EBITDA.
• Net debt
Net debt is calculated as difference of interest-bearing liabilities and cash
and cash equivalents. Interest-bearing liabilities include loans from financial
2021 Enento Group FINANCIAL REVIEW 20
BOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
institutions (short- and long-term loans), and cash and cash equivalents include
short-term deposits, cash assets and bank accounts.
• Net debt to adjusted EBITDA
Net debt to adjusted EBITDA is calculated by dividing net debt by adjusted
EBITDA.
• Return on equity
Return on equity is calculated by dividing (i) profit (loss) for the financial year by
(ii) total equity (average for the financial year).
• Return on capital employed
Return on capital employed is calculated (i) by adding financial expenses to the
profit (loss) before taxes and (ii) by dividing the sum by the average of the differ-
ence of the balance sheet total and non-interest bearing debts of the opening
and closing balance sheet.
• Gearing
Gearing is calculated by dividing net debt by total equity.
• Equity ratio
Equity ratio is calculated by dividing (i) total equity by (ii) balance sheet total,
deducted by advances received.
• Gross investments
Gross investments are fixed asset acquisitions with long-term effect, from which no
sales of property or renunciation of business have been deducted. As a general
rule, fixed assets comprise property, plant and equipment and intangible assets.
• Earnings per Share, comparable
Profit for the period attributable to the owners of the parent company excluding
amortisation from fair value adjustments related to acquisitions and their tax
impact, divided by the weighted average number of shares in issue.
Purpose of use of alternative performance measures
EBITDA, adjusted EBITDA and adjusted EBIT are presented as alternative per-
formance measures, as they, according to the Company’s view, enhance the
understanding of the Group’s results of operations and are frequently used by
analysts, investors and other parties.
Net sales from new products and services is presented as alternative perfor-
mance measures, as it, according to the Company’s view, describes the develop-
ment and structure of the Company’s net sales.
Free cash flow, cash conversion and gross investments are presented as alter-
native performance measures, as they provide, according to the Company’s view,
a good insight into the needs relating to the Group’s business cash flow and are
frequently used by analysts, investors and other parties.
Net debt, net debt to adjusted EBITDA, return on equity and return on capital
employed are presented as alternative performance measures, as they are, ac-
cording to the Company’s view, useful measures of the Group’s ability to obtain
financing and pay its debts, and they are frequently used by analysts, investors
and other parties.
Gearing and equity ratio are presented as alternative performance measures,
as they, according to the Company’s view, reflect the level of risk related to fi-
nancing and help to monitor the level of capital employed in the Group’s business.
Comparable earnings per share is presented as an alternative performance
measure, as it, according to the Company’s view, helps to reflect the profit attrib-
utable to the owners.
2021 Enento Group FINANCIAL REVIEW 21
BOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Reconciliation of alternative performance measures to the closest IFRS performance measure
Adjusted EBIT
EUR thousand
2021 2020 2019
Operating profit 35 249 27 816 27 782
Amortisation from fair value adjustments related to acquisitions 12 647 12 252 11 572
Items affecting comparability
M&A and integration related expenses 207 1 984 1 961
Redundancy payments -98 161 1 202
Additional payment for acquisition, arbitration institute decision - 2 264 -
IFRIC agenda decision one off expense 1 135 - -
Received insurance compensation -100 - -
Legal actions - 481 99
Total items affecting comparability 1 144 4 890 3 263
Adjusted operating profit 49 040 44 958 42 616
EUR thousand
EUR thousand
2021 2020 2019
Operating profit 35 249 27 816 27 782
Depreciation and amortisation 22 749 21 311 20 503
EBITDA 57 997 49 127 48 284
Items affecting comparability
M&A and integration related expenses 207 1 984 1 961
Redundancy payments -98 161 1 202
Additional payment for acquisition, arbitration institute decision - 2 264 -
IFRIC agenda decision one off expense 1 135 - -
Received insurance compensation -100 - -
Legal actions - 481 99
Total items affecting comparability 1 144 4 890 3 263
Adjusted EBITDA 59 141 54 017 51 547
Free cash flow
EUR thousand
2021 2020 2019
Cash flow from operating activities 43 945 40 912 41 920
Paid interest and other financing expenses 2 193 2 593 2 755
Received interest and other financing income -60 -50 -201
Acquisition of tangible assets and intangible assets -16 236 -10 875 -12 417
Free cash flow 29 842 32 579 32 057
2021 Enento Group FINANCIAL REVIEW 22
BOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
Formulas for key figures
EBITDA Operating profit + depreciation and amortisation.
Items affecting comparability
Material items outside the ordinary course of business that concern i) M&A and integration-related expenses, ii) redundancy payments, iii) external expenses
arising from significant regulatory changes, iv) compensation paid for damages and (v) legal actions.
Adjusted EBITDA Operating margin + items affecting comparability.
Adjusted operating profit (EBIT) Operating profit excluding amortisation from fair value adjustments related to acquisitions + items affecting comparability.
Net sales from new products and services Net sales of new products and services is calculated as net sales of those products and services introduced within the past 24 months.
Free cash flow
Cash flow from operating activities added by paid interests and other financing expenses, deducted by received interests and other financing income and
deducted by acquisition of tangible and intangible assets.
Cash conversion, %
Free cash flow x 100
EBITDA
Net debt Interest-bearing liabilities – cash and cash equivalents.
Net debt to adjusted EBITDA, x
Net debt
Adjusted EBITDA
Return on equity, %
Profit (loss) for the financial year
x 100
Total equity (average for the financial year)
Return on capital employed, %
Profit (loss) before taxes + financial expenses
x 100
Total assets - non-interest-bearing liabilities (average for the financial year)
Gearing, %
Interest-bearing liabilities – cash and cash equivalents
x 100
Total equity
Equity ratio, %
Total equity
x 100
Total assets – advances received
Dividend/earnings, %
Dividend per share
x 100
Earnings per share
Effective dividend yield, %
Dividend per share
x 100
Market value per share on the last day of the financial year
Price/earnings
Market value per share on the last day of the financial year
Earnings per share
Earnings per share, basic Profit for the period attributable to the owners of the parent company divided by the weighted average number of shares in issue.
Earnings per share, diluted
Profit for the period attributable to the owners of the parent company divided by the weighted average number of shares in issue, taking into consideration the
possible impact of the Group’s management’s long-term incentive plan.
Earnings per share, comparable
Profit for the period attributable to the owners of the parent company excluding amortisation from fair value adjustments related to acquisitions and their tax
impact, divided by the weighted average number of shares in issue.
Gross investments
Gross investments are fixed asset acquisitions with long-term effect, from which no sales of property or disposal of business have been deducted. As a general
rule, fixed assets comprise property, plant and equipment and intangible assets.
2021 Enento Group FINANCIAL REVIEW 23
BOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
EUR thousand
Note 1.1.–31.12.2021 1.1.–31.12.2020
Net sales 6 163 515 151 317
Other operating income 7 690 649
Materials and services 8 -27 593 -25 442
Personnel expenses 9 -39 732 -36 815
Work performed by the entity and capitalised 3 934 2 732
Total personnel expenses -35 798 -34 083
Other operating expenses 10 -42 818 -43 314
Depreciation and amortisation 11 -22 749 -21 311
Operating profit 35 249 27 816
Share of results of associated companies and joint ventures 17 -381 -
Finance income 12 426 271
Finance expenses 12 -2 593 -2 998
Finance income and expenses -2 166 -2 728
Profit before income tax 32 701 25 088
Income tax expense 13 -6 830 -5 640
Profit for the financial year 25 871 19 448
Consolidated Statement Of Comprehensive Income
FINANCIAL STATEMENTS
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 24
Note 1.1.–31.12.2021 1.1.–31.12.2020
Items that may be reclassified to profit or loss:
Translation differences on foreign units -5 652 9 878
Hedging of net investments made in foreign units 1 389 -2 603
Income tax relating to these items -278 521
-4 540 7 795
Items that will not be reclassified to profit or loss:
Remeasurements of post-employment benefit obligations 23 4 325 -292
Income tax relating to these items -891 60
Other comprehensive income for the financial year, net of tax -1 106 7 564
Total comprehensive income for the financial year 24 764 27 012
Profit attributable to:
Owners of the parent company 25 871 19 448
Total comprehensive income attributable to:
Owners of the parent company 24 764 27 012
Earnings per share attributable to the owners of the parent during the financial year:
Basic, EUR 14 1,08 0,81
Diluted, EUR 14 1,08 0,81
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 25
Consolidated Statement of Financial Position
EUR thousand
Note 31.12.2021 31.12.2020
ASSETS
Non-current assets
Goodwill 15 354 621 358 233
Other intangible assets 15 124 592 132 972
Property, plant and equipment 16 2 508 2 084
Right-of-use assets 16 6 376 7 489
Deferred tax assets 25 - 486
Investments in associated companies and joint
ventures
17 3 370 -
Financial assets and other receivables 18 76 76
Total non-current assets 491 542 501 339
Current assets
Account and other receivables 19 26 896 25 030
Cash and cash equivalents 21 25 318 26 164
Total current assets 52 214 51 194
Total assets 543 757 552 533
EUR thousand
Note 31.12.2021 31.12.2020
EQUITY AND LIABILITIES
Equity attributable to owners of the parent
Share capital 22 80 80
Invested unrestricted equity reserve 22 294 533 317 367
Translation differences 3 662 8 202
Retained earnings 22 18 118 -10 575
Equity attributable to owners of the parent 316 394 315 073
Share of equity held by non-controlling interest 0 0
Total equity 316 394 315 073
Liabilities
Non-current liabilities
Financial liabilities 24 164 547 166 960
Pension liabilities 23 3 679 8 465
Deferred tax liabilities 25 22 712 23 213
Other non-current liabilities 37 -
Total non-current liabilities 190 975 198 638
Current liabilities
Financial liabilities 2 335 2 458
Advances received 26 10 738 12 075
Account and other payables 26 23 315 24 289
Total current liabilities 36 388 38 822
Total liabilities 227 363 237 459
Total equity and liabilities 543 757 552 533
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 26
Consolidated Statement of Changes in Equity
Attributable to owners of the parent
EUR thousand
Share
capital
Invested
unrestricted
equity reserve
Translation
differences
Retained
earnings Total
Share of equity held
by non-controlling
interests
Total
equity
Equity at 1.1.2021 80 317 367 8 202 -10 575 315 073 0 315 073
Profit for the period - - - 25 871 25 871 - 25 871
Other comprehensive income for the period
Translation differences - - -5 652 - -5 652 - -5 652
Hedging of net investments - - 1 389 - 1 389 - 1 389
Income tax relating to these items - - -278 - -278 - -278
Items that may be reclassified to profit or loss - - -4 540 - -4 540 - -4 540
Defined benefit plans - - - 4 325 4 325 - 4 325
Income tax relating to these items - - - -891 -891 - -891
Items that will not be reclassified to profit or loss - - - 3 434 3 434 - 3 434
Other comprehensive income for the period, net of tax - - -4 540 3 434 -1 106 - -1 106
Total comprehensive income for the period - - -4 540 29 304 24 764 - 24 764
Transactions with owners
Distribution of funds - -22 833 - - -22 833 - -22 833
Management’s incentive plan - - - -612 -612 - -612
Equity at 31.12.2021 80 294 533 3 662 18 119 316 394 0 316 394
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 27
Attributable to owners of the parent
EUR thousand
Share
capital
Invested
unrestricted
equity reserve
Translation
differences
Accumulated
losses Total
Share of equity held
by non-controlling
interests
Total
equity
Equity at 1.1.2020 80 340 173 407 -29 985 310 675 0 310 675
Profit for the period - - - 19 448 19 448 - 19 448
Other comprehensive income for the period
Translation differences - - 9 878 - 9 878 - 9 878
Hedging of net investments - - -2 603 - -2 603 - -2 603
Income tax relating to these items - - 521 - 521 - 521
Items that may be reclassified to profit or loss - - 7 795 - 7 795 - 7 795
Defined benefit plans - - - -292 -292 - -292
Income tax relating to these items - - - 60 60 - 60
Items that will not be reclassified to profit or loss - - - -232 -232 - -232
Other comprehensive income for the period, net of tax - - 7 795 -232 7 564 - 7 564
Total comprehensive income for the period - - 7 795 19 216 27 012 - 27 012
Transactions with owners
Distribution of funds - -22 807 - - -22 807 - -22 807
Management’s incentive plan - - - 193 193 - 193
Equity at 31.12.2020 80 317 367 8 202 -10 575 315 073 0 315 073
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 28
Consolidated Statement of Cash Flows
EUR thousand
Note 1.1.–31.12.2021 1.1.–31.12.2020
Cash flow from operating activities
Profit before income tax 32 701 25 088
Adjustments:
Depreciation and amortisation 11 22 749 21 311
Finance income and expenses 12 2 548 2 728
Profit (-) / loss (+) on disposal of property,
plant and equipment
-156 -149
Management’s incentive plan 28 -612 -29
Other adjustments 669 -206
Cash flows before change in working capital 57 899 48 743
Change in working capital:
Increase (-) / decrease (+) in account and
other receivables
-2 098 -1 108
Increase (+) / decrease (-) in account and
other payables
-1 225 1 544
Change in working capital -3 323 436
Interest expenses paid 12 -2 193 -2 593
Interest income received 12 60 50
Income taxes paid 13 -8 498 -5 725
Cash flow from operating activities 43 945 40 912
EUR thousand
Note 1.1.–31.12.2021 1.1.–31.12.2020
Cash flows from investing activities
Purchases of property, plant and equipment 16 -1 625 -948
Purchases of intangible assets 15 -14 611 -9 928
Purchases of subsidiaries, net of
cash acquired
Proceeds from sale of property, plant and
equipment
Investments in associated companies and
joint ventures
17 -3 802 -
Cash flows from investing activities -19 463 -10 254
Cash flows from financing activities
Proceeds from interest-bearing liabilities 24 - -
Repayments of interest-bearing liabilities 24 -2 379 -2 127
Dividends paid and other profit distribution 22 -22 833 -22 807
Cash flows from financing activities -25 212 -24 934
Net increase/decrease in cash and cash
equivalents
-730 5 724
Cash and cash equivalents at beginning of
the financial year
Net change in cash and cash equivalents -730 5 724
Translation differences of cash and cash
equivalents
-115 79
Cash and cash equivalents at end of the
financial year
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 29
Notes To The Consolidated Financial Statements
1 General information
and the parent company to Enento Group (“Enento Group” or “the Group”). The
registered address of Enent o Group Plc is Hermannin r antatie 6 , PO BO X 16,
-
marketing information as well as consumer credit information markets in Finland,
Sweden, Norway and Denmark. The Group’s products and services are primarily
used for risk management, finance and administration, decision-making, sales
and marketing, automation, compliance, real estate transactions and real estate
financing as well as personal financial management. The Group’s largest clients
include financial institutions and other financial service providers, expert service
companies, insurance companies as well as wholesale and retail companies.
The Group’s customer base includes corporations as well as private individuals.
Enento Group has a scalable business model that makes it possible to in
-
crease net sales at minor additional cost. A large proportion of the Group’s in-
come is based on automated processes and the automatic sharing of informa-
tion from the Group’s own databases. The Group can use and relay the same
data multiple times and include it in a number of services provided for different
customers. The Group also earns income from advertising, particularly in Sweden.
Enento Group has comprehensive databases consisting of information gath-
ered from the authorities and other public sources as well as privately acquired
information. The databases are the basis for the Group’s product and service
offering and the development of new products and services.
The consolidated financial statements are available on the Company’s web
-
site www.enento.com
The Board of Directors of Enento Group Plc has approved these consolidated
financial statements for publication on 11 February 2022. Under the Finnish Limited
Liability Companies Act, shareholders can approve or reject 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.
2 Summary of significant accounting policies
2.1 Basis of preparation
The consolidated financial statements of Enento Group have been prepared in
accordance with International Financial Reporting Standards (IFRS) as adopted
by the European Union, conforming with the IAS standards and IFRS standards
as well as SIC and IFRIC interpretations applicable as per 31 December 2021.
IFRS refer to the standards and interpretations applicable by corporations set
out by the Finnish accounting ordinance and other guidance set out on the
basis of this ordinance enforced for application in accordance with the proce
-
dure stipulated in the regulation (EC) No 1606/2002 of the European Parliament
and of the Council. The notes to the consolidated financial statements also
comply with the Finnish accounting and corporate legislation complementing
the IFRS standards.
The consolidated financial statements have been prepared primarily under
the historical cost convention unless otherwise indicated. The preparation of fi-
nancial statements in conformity with IFRS requires the use of certain critical ac-
counting estimates. It also requires management to exercise its judgement in the
process of applying the Group’s accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and estimates
are significant to the consolidated financial statements are disclosed in note 3.
Items included in the financial statements of each of the Group’s entities are
measured using the currency of the primary economic environment in which the
entity operates. The consolidated financial statements are presented in euros,
which is Enento Group’s functional and presentation currency.
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 30
The amounts are presented in thousands of euros unless otherwise stated.
Amounts presented in the consolidated financial statements are rounded, so the
sum of individual figures may differ from the sum reported.
2.1.1 New standards and interpretations adopted in 2021
Enento Group did not adopt any new standards during the financial year 1
January – 31 December 2021.
In April 2021, IFRS Interpretations Committee finalised its agenda decision on
Configuration and Customisation costs in Could Computing Arrangements re-
lating to IAS 38 Intangible Assets standard. In the agenda decision, committee
considered when an intangible asset can be recognised relating to IT appli
-
cation software Configuration and Customisation and when these costs are to
be expensed. As Enento Group has cloud computing applications in use, the
Group has analysed implementation projects costs relating to configuration and
customisation for historical fiscal years and current fiscal year. According to the
analysis, majority of the costs are relating to fiscal years 2018 and 2019 and costs
to be expensed in fiscal years 2020 and 2021 are immaterial. Enento Group has
assessed the change in accounting policy to be immaterial and has recognised
the adjustment relating to configuration and customisation costs as reduction
of Intangible Assets in 2021 Income Statement as other operating expense and
according to Enento Group alternative performance measure definitions report
the adjustment as Items Affecting Comparability. The reconciliation of Alternative
Performance Measures is presented on page 22 of the Financial Statements. The
adjustment does not have cash flow impact. Enento Group expects the change
in accounting policy not to have material impact on future periods.
Summary of IFRIC agenda paper impact on selected Balance sheet and In
-
come Statement items (EUR thousands):
EUR thousand
Balance
before ad-
justment
IFRIC agenda de-
cision adjustment
Balance
31.12.2021
Balance Sheet item
Other Intangible Assets 125 729 -1 137 124 592
Total Assets 544 894 -1 137 543 757
Translation differences 3 664 -2 3 662
Retained Earnings 19 021 -903 18 118
Deferred tax liabilities 22 994 -232 22 712
Total Equity and Liabilities 544 894 -1 137 543 757
Income Statement item
Other operating expenses -41 683 -1 135 -42 818
Operating Profit (EBIT) 36 384 -1 135 35 249
Income taxes -7 063 232 -6 830
Profit for the period 26 773 -903 25 871
Other amended standards and interpretations did not have a material impact
on the financial statements.
2.1.2 New standards and interpretations not yet adopted
The IFRS 17 Insurance Contracts will be applied in financial years starting on or
after 1 January 2023. The application of the standard will not have an impact on
the Group’s future financial statements.
Enento Group estimates that the IFRIC interpretations that have already been
published but are not yet in effect will not have a material impact on the Group.
2.2 Consolidation
Subsidiaries
Subsidiaries are all such entities over which Enento Group has control. Enento
Group controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 31
Enento Group’s share of the associates’ and joint ventures’ profit for the finan-
cial period is presented as a separate item below the operating profit in the con-
solidated statement of income. The carrying amount of the investment is adjust-
ed accordingly in the consolidates statement of financial position. If the Group’s
share of the losses of an associate or joint venture exceeds the carrying amount
of the investment, the associate or the shares of the joint venture are recorded in
the balance sheet at zero value, unless the Group has other obligations related
to these companies.
Any unrealised profit resulting from transactions between the Group and its
associates and joint ventures are eliminated to the extent of the Group’s owner-
ship interest.
When necessary, the financial information about associates and joint ventures
has been changed to comply with the accounting poliicies applied by Enento
Group. Equity method investments are regularly tested for impairment. Enento
Group assesses whether there is objective evidence that the investment in the
associate is impaired.
2.3 Segment reporting
The Group constitutes a single operating segment, which is consistent with the
way internal reporting is provided to the chief operating decision-maker and the
way chief operating decision-maker determines allocation of resources and as-
sessment of performance.
The CEO has been determined as the chief operating decision-maker. The
CEO is responsible for resource allocation, evaluating the Group’s result as well as
strategic and operational decision-making.
2.4 Goodwill and intangible assets
Intangible assets comprise goodwill and other intangible assets. Other intangible
assets consist primarily of capitalised development costs related to new products
and services as well as IT systems, off the shelf software and intangible assets rec-
ognised separately from goodwill in connection with the company acquisitions.
Goodwill
Goodwill recorded at the consolidated financial statements of the Group arose
from the acquisition of Asiakastieto Group business by the Group in 2008, pur-
through its power over the entity. Subsidiaries are fully consolidated from the date
on which the control is transferred to Enento Group. They are deconsolidated from
the date that the control ceases.
Inter-company transactions, receivables and liabilities as well as unrealised
gains and losses on transactions between group companies are eliminated. When
needed, the financial statements by subsidiaries have been adjusted to conform
to the Group’s accounting policies.
Acquired businesses
Acquired subsidiaries have been consolidated into the Group’s accounts from the
date which the Group has acquired the control and correspondingly the divest-
ed functions are included until the termination of control. The mutual owning of
shares of the Group companies is eliminated by acquisition method. The surren-
dered consideration, including the conditional acquisition price and the identifi-
able assets and liabilities, is valued to the fair value at the moment of acquisition.
Purchase related expenses are recognised as an expense.
Further information for business combinations of Enento Group is disclosed un-
der 2.4 Goodwill and intangible assets and 5 Acquired businesses.
Associates and joint ventures
Associates are companies where Enento Group has significant influence but does
not have control. Significant influence may be obtained when the Group has 20%
or more of the voting rights in the investee and/or has obtained membership on
the Board of Directors and/or otherwise participates substantially in financial or
operating policy-making process of investee. A joint venture is a joint arrange-
ment whereby the parties that have joint control of the arrangement have rights
to the net assets of the arrangement. Enento Group has one associated company.
Enento Group currently has no joint ventures.
Associates and joint ventures are accounted for using the equity method. Under
the equity method of accounting, investments in associates and joint ventures are
initially recorded in the consolidated statement of financial position at cost, which
includes goodwill and intangible assets identified in the acquisition. In subsequent
periods, the value of investment is adjusted in accordance with changes in the
net assets of the investee in proportion to Enento Group’s ownership and in accor-
dance with the amortisations of the intangible assets identified in the acquisition.
CONSOLIDATED
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BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 32
chase of share capital of Intellia Oy in 2016, the purchase of share capital of
Emaileri Oy in 2017, the purchase of share capital of UC AB in 2018 and the pur-
chase of share capital of the Proff companies and the Solidinfo.SE business in 2019.
For internal monitoring and impairment testing purposes, goodwill is monitored
at the Group’s cash-generating unit level. The Group has three cash-generating
units: Finland, Sweden, and Norway and Denmark. This also reflects the way the
acquirer expected to realise the benefits of the acquisition.
Goodwill impairment review is undertaken annually or more frequently if events
or changes in circumstances indicate a potential impairment. The carrying value
of the cash generating unit is compared to the recoverable amount, which is the
higher of the value in use and the fair value less costs of disposal of the related
cash generating unit.
Other intangible assets
Other intangible assets are initially recognised on the balance sheet at historical
cost if the cost can be measured reliably and it is probable that future economic
benefits associated with the asset will flow to Enento Group.
Other intangible assets acquired in connection with company acquisitions
are recognised separate from goodwill if they meet a definition of intangible
asset and are separable or are based on agreements or legal rights. Intangi-
ble assets recognised in connection with acquisitions consist of, among other
things, the value of customer agreements and related customer relations, the
value of acquired IT systems, databases and technology as well as the value
of trademarks. The value of customer agreements and customer relations is
defined by the assumed length of customer relationship and on the basis of
cash flows assessed.
Amortisations are calculated along straight-line method over their useful eco-
nomic lives. The applied useful economic lives are:
Capitalised development costs ...............................................................................5–10 years
Off the shelf software ...................................................................................................... 3–5 years
Customer and contract database .......................................................................3–20 years
IT systems, databases and technology ...............................................................3–12 years
Trademarks ......................................................................................................................... 5–15 years
The assets’ residual values and useful lives and amortisation method are reviewed
at minimum at the end of each reporting period and adjusted, if appropriate, to
reflect changes in the expected economic benefits. The amortisation of intangible
assets is commenced when the asset is ready for its intended use.
Assets that are subject to amortisation are reviewed for impairment whenever
events or changes in circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised for the amount by which the
asset’s carrying amount exceeds its recoverable amount. The recoverable amount
is the higher of an asset’s fair value less costs of disposal and value in use. For the
purpose of impairment testing, assets are allocated to the Group’s cash-generat-
ing units. Prior impairments of tangible and intangible assets (other than goodwill)
are reviewed for possible reversal at each reporting date.
Capitalised development and software costs
Costs associated with maintaining current products and services are recognised
as an expense as incurred. Development costs of new products and services
that are directly attributable to building and testing of new products and ser-
vices controlled by Enento Group are recognised as intangible assets when the
following criteria are met:
• it is technically feasible to complete the new product and service so that it will
be available for use
• the management intends to complete the new product and service and use
or sell it
• there is an ability to use or sell the new product and service
• it can be demonstrated how the new product and service will generate
probable future economic benefits
• adequate technical, financial and other resources to complete the
development and to use or sell the new product and service are available,
and
• the expenditure attributable to the new product and service during its
development can be reliably measured.
Directly attributable costs that are capitalised as part of the product include the
software development employee costs and an appropriate portion of relevant
overheads. The capitalised costs are presented in the consolidated income state-
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2021 Enento Group FINANCIAL REVIEW 33
ment under “Work performed by the entity and capitalised”. Other development
expenditures that do not meet these criteria are recognised as an expense as
incurred. Development costs previously recognised as an expense are not rec-
ognised as an asset in a subsequent period. New service development costs rec-
ognised as assets are amortised over their estimated useful lives, which does not
exceed 10 years.
2.5 Property, plant and equipment
Property, plant and equipment comprise machinery and equipment, other tangi-
ble assets and advances paid.
Machinery and equipment comprise mainly IT, office machines and equipment
as well as company cars. Machinery and equipment is stated at historical cost
less accumulated depreciation. Historical cost includes expenditure that is direct-
ly attributable to the acquisition of the items.
Other tangible assets comprise mainly capitalised modernisation and reno-
vation expenses of office premises. Other tangible assets are stated at historical
cost less depreciation. Historical cost includes expenditure that is directly attrib-
utable to the acquisition of the items.
Depreciation on tangible assets is calculated using the straight-line method
to allocate their cost amounts to their residual values over their estimated useful
lives, as follows:
Machinery and equipment .........................................................................................3–10 years
Capitalised modernisation and renovation expenses of office premises 10 years
The assets’ residual values and useful lives are reviewed, and adjusted if appro-
priate, at the end of each reporting period. An asset’s carrying amount is written
down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount. Gains and losses on disposals
are determined by comparing the proceeds with the carrying amount and are
recognised within “Other operating income” or ”Other operating expenses” in the
income statement.
2.6 Financial assets
According to IFRS 9 standard financial assets have been classified either to fi-
nancial assets measured at amortised cost or financial assets measured at fair
value through profit or loss. The classification of financial assets is driven by the
contractual cash flow characteristics and by the entity’s business model used for
managing the financial assets.
Financial assets at amortised cost
The Group classifies its financial assets as measured at amortised cost only if both
of the following criteria are met:
• the asset is held within a business model the objective of which is to collect
the contractual cash flows, and
• the contractual terms give rise to cash flows that are solely payments of
principal and interest.
This group includes Enento Group’s accounts receivable, other financial assets
and cash and cash equivalents. These financial assets are included in current
assets, expect for maturities greater than 12 months after the end of the reporting
period, in which case they are classified as non-current assets.
Expected credit losses related to financial assets measured at amortised cost
are calculated on the basis of the expected credit loss model pursuant to IFRS
9. The Group’s credit losses may originate mainly from accounts receivable and
contract assets. Accounting policies concerning these impairments is described
in section 2.7 Accounts receivable.
Financial assets measured at fair value through profit or loss
In this category, the Group recognises derivatives not designated for hedge ac-
counting and investments in unlisted securities.
Changes in the fair value of derivatives are recognised in other operating in-
come, other operating expenses, financial income or financial expenses depend-
ing on the purpose of the derivatives. Enento Group has no outstanding foreign
currency forward contracts on 31 December 2021. On 31 December 2020, Enento
Group had one outstanding foreign currency forward contract. The change in fair
value of the related derivative was recognised in financial income or expenses.
Derivatives measured at fair value through profit or loss are presented as cur-
rent assets if they mature within 12 months from the end of the reporting period.
Derivatives with a maturity exceeding 12 months are included in non-current assets.
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2021 Enento Group FINANCIAL REVIEW 34
Investments in unlisted securities are included in non-current assets unless they
mature, or the management intends to dispose of them, within 12 months from the
end of the reporting period, in which case they are classified as current assets.
2.7 Accounts receivable
Accounts receivable are amounts due from customers for goods sold or services
performed in the ordinary course of business. These receivables are usually
due within 14 to 30 days. If collection is expected in one year or less, they are
classified as current assets. If not, they are presented as non-current assets.
Accounts receivable are recognised initially at the amount of consideration that
is unconditional unless they contain significant financing components, in which
case they are recognised at fair value.
The Group applies the simplified impairment model for accounts receivable
and contract assets, according to which the Group recognises expected credit
losses since the initial recognition of the receivable for the whole amount of ex-
pected credit losses during the receivables’ lifetime. To measure the expected
credit losses, account receivables and contract assets have been grouped on
the basis of shared credit risk characteristics and the days past due. The contract
assets relate to unbilled work in progress and have substantially the same risk
characteristics as the accounts receivable for the same types of contracts. The
Group has therefore concluded that the expected loss rates for trade receivables
are a reasonable approximation of the loss rates for the contract assets.
The expected loss rates are based on the payment profiles of sales over a
period of 24 months before 31 December 2020 and 1 January 2020 and the corre-
sponding historical credit losses experienced within this period. The historical loss
rates are adjusted to reflect current and forward-looking information on macro-
economic factors affecting the ability of the customers to settle the receivables.
The amount of the loss-related deductible is presented in note 4 Credit risk man-
agement.
Account receivables and contract assets are derecognised when there is no
reasonable expectation of recovery. Indicators that there is no reasonable expec-
tation of recovery include, amongst others, potential bankruptcy of the debtor or
inability to prepare a payment plan with the Group and delay of the contractual
payments for more than a year.
2.8 Cash and cash equivalents
In the consolidated statement of cash flows and the consolidated statement
of financial position, cash and cash equivalents include cash in hand and bank
accounts with banks.
2.9 Financial liabilities
Financial liabilities at amortised cost
Financial liabilities at amortised cost are recognised initially at fair value, net of
transaction costs incurred. The liabilities are subsequently carried at amortised
cost. Any difference between the proceeds (net of transaction costs) and the
redemption value is recognised in the income statement over the loan period
using the effective interest rate method. The Group also has unused credit facil-
ities and recognises the related fees in the income statement on a straight-line
basis.
The Group has both non-current and current financial liabilities. Financial lia-
bilities can be interest-bearing or non-interest-bearing. Current financial liabilities
include liabilities falling due within 12 months or less.
A financial liability is derecognised when the Group either discharges the li-
ability (or part of it) by paying the creditor or is legally released from primary re-
sponsibility for the liability (or part of it) either by process of law or by the creditor,
in which case the difference between the financial liability’s balance sheet value
and payment is recognised in the income statement.
Financial liabilities at fair value through profit or loss
In this category, the Group recognises derivatives not designated for hedge ac-
counting.
Changes in the fair value of derivatives are recognised in other operating in-
come, other operating expenses, financial income or financial expenses depend-
ing on the purpose of the derivatives. Enento Group has no outstanding foreign
currency forward contracts on 31 December 2021. On 31 December 2020, Enento
Group had one outstanding foreign currency forward contract. The change in fair
value of the related derivative was recognised in financial income or expenses.
Derivatives measured at fair value through profit or loss are presented as current
liabilities if they mature within 12 months from the end of the reporting period. De-
rivatives with a maturity exceeding 12 months are included in non-current liabilities.
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FINANCIAL STATEMENTS
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2021 Enento Group FINANCIAL REVIEW 35
2.10 Accounts payable
Accounts payable are obligations to pay for goods or services that have been
acquired in the ordinary course of business from suppliers. Accounts payable are
classified as current liabilities if payment is due within one year or less. If not, they
are presented as non-current liabilities. Account payables are recognised initially
at fair value and subsequently measured at amortised cost.
2.11 Foreign currency translation and net investment hedge
The consolidated financial statements are presented in euros, which is the func-
tional currency of the parent company. The foreign subsidiaries’ income state-
ments and cash flows have been converted into euro on a monthly basis using
the monthly average exchange rate issued by the European Central Bank, and
the balance sheet has been converted using the exchange rate issued by the
European Central Bank on the end date of the financial year. Conversion of the
profit for the financial year using different exchange rates for the income state-
ment and balance sheet causes a translation difference in the balance sheet
recognised in equity.
Foreign currency transactions are translated into the functional currency using
the exchange rates at the dates of the transactions. Foreign exchange gains and
losses resulting from the settlement of such transactions and from the translation
of monetary assets and liabilities denominated in foreign currencies at year-end
exchange rates are generally recognised in profit or loss unless they are not al-
located as net investment hedge. In such a case, the exchange rate differences
are recognised in other comprehensive income and accumulated into translation
differences in equity.
Foreign exchange gains and losses related to cash and cash equivalents, bor-
rowings and interests related to borrowings are presented under finance income
and finance cost in the statement of profit or loss. All other foreign exchange gains
and losses are presented in the statement of profit or loss on a net basis within
other operating income or operating expenses.
The results and financial position of foreign operations that have a functional
currency different from the presentation currency are translated into the presen-
tation currency as follows:
• assets and liabilities for each balance sheet presented are translated at the
closing rate at the date of that balance sheet;
• income and expenses for each statement of profit or loss and statement of
comprehensive income are translated at average exchange rates (unless
this is not a reasonable approximation of the cumulative effect of the rates
prevailing on the transaction dates, in which case income and expenses are
translated at the dates of the transactions); and
• all resulting exchange differences are recognised in other comprehensive income.
On consolidation, exchange differences arising from the translation of any net
investment in foreign entities, and of borrowings designated as hedges of such
investments, are recognised in other comprehensive income. When a foreign op-
eration is disposed of, the associated exchange differences, including the effec-
tive portion of the hedge, are reclassified to profit or loss as part of the gain or
loss on sale. Goodwill and fair value adjustments arising from the acquisition of a
foreign operation are treated as assets and liabilities of the foreign operation and
translated at the closing rate.
At the inception of a hedge relationship, the Group documents the economic
relationship between hedging instruments and hedged items including whether
changes in the cash flows of the hedging instruments are expected to offset
changes in the cash flows of the hedged items. The Group documents its risk
management objective and strategy for undertaking its hedge transactions. For
more information related to the hedging of the net investment, see note 4 Cur-
rency risk management.
2.12 Interest income
The Group earns interest mainly from overdue interest from account receivables.
Interest income is recognised when they occur.
2.13 Share capital
Ordinary shares are classified as equity.
2.14 Current and deferred income tax
The tax expense for the period comprises current and deferred tax. Tax is rec-
ognised in the income statement.
The current income tax charge is calculated on the basis of the tax laws of the
Group’s operating countries that have been enacted or substantively enacted at
CONSOLIDATED
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2021 Enento Group FINANCIAL REVIEW 36
the balance sheet date. The management periodically evaluates positions taken
in tax returns with respect to situations in which applicable tax regulation is sub-
ject to interpretation. It establishes provisions where appropriate on the basis of
amounts expected to be paid to the tax authorities and assets when expected
to receive tax returns.
Deferred income tax is recognised on temporary differences arising between
the tax bases of assets and liabilities and their carrying amounts in the consol-
idated financial statements. Deferred income tax is determined using tax rates
(and laws) that have been enacted or substantively enacted by the balance
sheet date and are expected to apply when the related deferred income tax
asset is realised or the deferred income tax liability is settled.
Deferred income tax liabilities are recognised in full for all taxable temporary
differences, except for deferred income tax liability, where the timing of the rever-
sal of the temporary difference is controlled by Enento Group and it is probable
that the temporary difference will not reverse in the foreseeable future. Deferred
income tax assets are recognised only to the extent that it is probable that future
taxable profit will be available against which the temporary differences can be
utilised and up to the amount of the deferred tax liabilities.
Deferred tax assets arising from past losses above the amount of deferred tax
liabilities are recognised if convincing evidence exists that the Group will be able
utilise the tax losses carried forward.
Deferred income tax assets and liabilities are offset when there is a legally en-
forceable right to offset current tax assets against current tax liabilities and when
the deferred income tax 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.
2.15 Employee benefits
Short-term employee benefit obligations
Short-term employee benefits consist of salaries including fringe benefits and
vacation pay payable within 12 months. Short-term employee benefits are
recognised as other liabilities in respect of employee service up to the reporting
date and measured at the amounts expected to be paid when the liabilities are
settled. A liability is recognised for the amount expected to be paid under the
short-term bonus plan if the criteria for paying such bonuses are met.
Post-employment obligations
The Group operates both defined benefit and defined contribution pension plans.
For defined contribution plans, the Group pays contributions to publicly or
privately administered pension insurance plans on a mandatory, contractual or
voluntary basis. Enento Group has no further payment obligations once the con-
tributions have been paid. The contributions are recognised as employee benefit
expense when they are due. Prepaid contributions are recognised as an asset to
the extent that a cash refund or a reduction in the future payments is available.
The Group has a partially funded defined benefit plan in Sweden (BTP 2) that
is administered by SPP Konsult AB. The liability or asset recognised on the bal-
ance sheet in respect of defined benefit pension plans is the present value of the
defined benefit obligation at the end of the reporting period less the fair value of
plan assets. The defined benefit obligation is calculated annually by independent
actuaries using the projected unit credit method.
The present value of the defined benefit obligation is determined by discount-
ing the estimated future cash outflows using interest rates of high-quality corpo-
rate bonds that are denominated in the currency in which the benefits will be paid
and that have terms approximating the terms of the related obligation. The Group
has derived its interest rate from the Swedish market of covered mortgage bonds,
with an extrapolated duration corresponding to the Group’s post-employment
obligations. The fair value of any plan assets is remeasured on the reporting date.
Service cost is recognised as part of personnel expenses and net interest ex-
penses are presented as part of finance costs. The net interest cost is calculated
by applying the discount rate to the net balance of the defined benefit obligation
and the fair value of plan assets.
Remeasurement gains and losses arising from experience-based adjustments
and changes in actuarial assumptions are recognised in the period in which they
occur, directly in other comprehensive income. They are included in retained earn-
ings in the statement of changes in equity and on the balance sheet.
Changes in the present value of the defined benefit obligation resulting from
plan amendments, curtailments and the fulfilment of obligations are recognised
immediately in profit or loss as past service costs.
The Swedish special salary taxes on pension costs (SLP) constitute part of the
actuarial assumptions and are therefore recognised as part of the net pension
defined benefit liability.
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2021 Enento Group FINANCIAL REVIEW 37
and the risks specific to the liability. The increase in provisions due to the passage
of time is recognised as an interest expense.
2.17 Share-based payments
The Group has share-based incentive plans which include incentives paid as
shares as well as cash components related to the withholding tax obligations
associated with the share incentives. The benefits granted in accordance with the
incentive plan are measured at fair value on the grant date and expensed on a
straight-line basis over the vesting period.
The fair value of the equity-settled incentives is the market value on the grant
date. The share-based payments settled with equity instruments are not remea-
sured subsequently, and cost from these arrangements is recognised as an in-
crease in equity. Compensation costs are recognised for such payments based
on the entire scheme being an equity-settled payment. Compensation costs are
recognised on the basis of the number of gross shares awarded, in spite of the
employee ultimately only receiving the net shares and the Group paying the por-
tion required to meet the withholding obligations to the tax authority in cash. The
withholding tax paid by the Group to the tax authority is recognised directly from
equity. The cash-settled share-based incentives are measured at fair value at the
end of each financial reporting period until the settlement date and recognised
as a liability. The expensed amount of the benefits is based on the Group’s es-
timate of the amount of benefits to be paid at the end of the vesting period.
Market conditions and non-vesting conditions are considered in determining the
fair value of the benefit. Instead, the non-market criteria, such as profitability or
increase in sales, are not considered in measuring the fair value of the benefit but
taken into account when estimating the final amount of benefits. The Group up-
dates the estimate of the final amount of the benefits at every financial reporting
date and recognises changes in estimates through the statement of profit or loss.
2.18 Revenue recognition
Enento Group provides information services. The majority of revenue is transac-
tion-based, generated from the delivery of individual pieces or bundles of credit,
business and market information. The information is collected by the Group from
several data sources, e.g. its customers, trade registers, population registers and
real estate registers, processed or refined by the Group and made available to
Swedish tax on returns from pension funds is recognised on an ongoing basis in
profit or loss for the period to which the tax relates and is therefore not included in
the calculation of post-employment obligations. The tax relates to a hypothetical
return on plan assets determined for tax purposes only and is recognised in other
comprehensive income. In the case of unfunded or partially unfunded plans, the
tax is included in the profit or loss for the year.
Termination benefits
Termination benefits are payable when employment is terminated by the Group
before the normal retirement date or when an employee accepts voluntary re-
dundancy in exchange for these benefits. The Group recognises termination
benefits at the earlier of the following dates: (a) when the Group can no longer
withdraw the offer of those benefits; and (b) when the Group recognises costs for
restructuring that is within the scope of IAS 37 and involves the payment of termi-
nation benefits. In the case of an offer made to encourage voluntary redundancy,
the termination benefits are measured on the basis of the number of employees
expected to accept the offer. Benefits falling due more than 12 months after the
end of the reporting period are discounted to present value.
2.16 Provisions
Provisions for restructuring expenses and legal claims are recognised when the
Group has a present legal or constructive obligation as a result of past events, it
is probable that an outflow of resources will be required to settle the obligation
and the amount has been reliably estimated. Restructuring provisions include
termination benefits related to personnel. Provisions are not recognised for future
operating losses.
Where there are a number of similar obligations, the likelihood that an outflow
will be required in settlement is determined by considering the class of obliga-
tions as a whole. A provision is recognised even if the likelihood of an outflow
with respect to any one item included in the same class of obligations may be
small.
Provisions are measured at the present value of the management’s best es-
timate of the expenditure required to settle the present obligation at the end of
the reporting period. The discount rate used to determine the present value is a
pre-tax rate that reflects current market assessments of the time value of money
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2021 Enento Group FINANCIAL REVIEW 38
the customers mainly through integrations and online services.
The major sales transactions are derived from the following business areas and
performance obligations:
Business Insight:
Companies engaging in corporate business use decision services and solutions
for general risk management, credit risk management, financial management,
customer acquisition, decision-making, fraud and credit loss prevention as well
as for gaining knowledge of and identifying their customers.
Business Insight Enterprise business line is responsible for service offering and
service development for the strategic and large customers in the key customer
verticals. The revenue stream includes four main types of performance obliga-
tions: reporting services (transactions), customised service packages for online
services and customer projects and customer management services.
Reporting services (transactions) are information services typically delivered as
reports, bundles of information or individual pieces of information when, and if, the
customer places an order. Order and delivery are usually performed simultane-
ously. Regardless of the physical form of a report that Enento Group delivers to a
customer, Enento Group considers that the nature of its performance is a service
as a report consists of information that is valid only at the time it is extracted/is-
sued. Revenue is recognised at the point in time when the performance obligation
is satisfied by the delivery of information.
Customised service packages include, in practice, an unlimited number of
transactions of predetermined information services for the contract period deliv
-
ered to the customer whenever needed. The services in the customised packag-
es are substantially the same and have the same pattern of transfer to the cus-
tomer. The agreements include fixed charges, i.e. minimum charges irrespective
of the customer’s actual use of the enquiry-based services. Enento Group has
concluded that it provides a series of distinct services (i.e. stand ready to deliver).
Therefore, a customised service package contract includes one performance
obligation that is recognised as revenue over time on a straight-line basis. Or-
ders outside the service package, if any, are separate performance obligations.
If a customer orders additional reports or information, the promises in additional
orders are distinct performance obligations with stand-alone selling prices and
are recognised as revenue as separate contracts.
Enento Group also provides customer-specific projects. The scope of work is
defined on a contract-by-contract basis. These contracts may include several
deliverables such as different types of formulas to calculate the credit rating of
private customers for consumer credit or mortgage loans. Each of the deliver-
ables is a distinct performance obligation. Contracts for customer projects are
analysed separately to conclude whether revenue is recognised over time or at a
point in time due to customised contract terms. Projects may include subsequent
services linked to the formula, such as input data for the formulas or support
services. Revenue from services provided after the customer project – i.e. support
and maintenance services for the formulas created in the customer project – is
recognised over time.
The Group’s management has exercised judgement with regard to online ser-
vices contracts that include a fixed access fee that do not transfer a promised
good or service to the customer. These fixed access fees are advance payments
for online services (transactions) and should be recognised on the basis of the
satisfaction of the underlying performance obligation, i.e. allocated to each piece
of delivered information. Instead, these fixed fees have been recognised as reve-
nue in a linear fashion over the term of the contract for the sake of clarity. As the
volume of delivered online services (transactions) under these contracts does not
vary significantly during the year, the recognition of revenue over time has been
judged to be reasonable by the management.
Customer management services help sales and marketing professionals im-
prove the efficiency of their work and boost customer management by providing
target group tools, services for surveying potential customers, register updates
and maintenance, as well as various target group extractions. Performance obli-
gations related to Customer management services are each of the services pro-
vided, e.g. a service for receiving alerts about changed information concerning
selected entities or a service that enables the customer to perform searches of
entities based on selected criteria, such as location or line of business. Revenue
from these services is recognised over time on a straight-line basis. If a customer
orders additional reports or information, the commitments associated with the
additional orders are distinct performance obligations with stand-alone selling
prices and are recognised as revenue as separate contracts.
The Business Insight Premium Solutions business line provides business informa-
tion services for the needs of SMEs. This area consists of digital services for small
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and micro companies with easy-to-use applications and user interfaces for the
evaluation of risks and sales potential, acquisition of other relevant information on
customers and business partners and proof of own creditworthiness.
The performance obligation is the deliverable provided, e.g. analysis of an en-
tity’s credit rating or a certificate of an entity’s payment behaviour, each of which
is a distinct performance obligation. Revenue is recognised when control transfers
to the customer at the point in time when the ordered certificate or analysis is
delivered to the customer.
Standardised service packages for online services include an unlimited num-
ber of predetermined information services provided whenever needed during
the contract period. The services in the standardised packages are substantially
the same and have the same pattern of transfer to the customer. Enento Group
has determined that it provides a series of distinct services (i.e. stand ready to
deliver) which are accounted for as one performance obligation. Revenue from
standardised service packages is recognised over time on a straight-line-basis.
Orders outside the service package, if any, are separate performance obligations
and recognised as revenue at the point in time when the service is performed and
delivered to the customer.
Enento Group sells corporate and governmental reports with market industry
information and regional reports published for periods of three or four months.
The revenue is invoiced and recognised at the point in time of publication and
delivery of each report.
Business Insight Freemium Solutions business line develops freemium-model
business information websites in all Nordic markets. Enento Group provides adver-
tising services by providing advertisement space on its websites. The performance
obligation is to publish the advertisement on the Group’s webpages during the
contract period, and the revenue is recognised over time on a straight-line basis
during the advertisement period.
Enento Group recognises as revenue the transaction price to which Enento
Group expects to be entitled in exchange for transferring goods and services to
the customer. Amounts collected on behalf of third parties, e.g. value added tax-
es, are excluded. Some of the Group’s contracts include service level agreements
(SLA) that include penalties to be paid if the provided services are not in accor-
dance with the agreed service level. As penalties have not been realised in the
past, the management has concluded that even though the contracts include
a variable consideration, it is highly unlikely that a significant reversal of revenue
will occur in the future. Therefore, penalties have not been deducted from the
transaction price. Telephone sales to small and micro companies have resulted
in reversals of revenue in the past. The time between the issue of invoice and the
issue of credit note is on average two months. Based on historical data, and in
the absence of indicators that future reversal rate should change, the Group has
adjusted transaction prices for the last two months’ telephone sales. The accrued
effect on revenue in the financial statements for the year 2021 is EUR -30 thou-
sand (EUR -46 thousand).
Consumer Insight:
Companies engaging in consumer business use decision services and solutions for
general risk management, credit risk management, financial management, cus-
tomer acquisition, decision-making, fraud and credit loss prevention. Services for
consumers help consumers to understand and better manage their own finances,
protecting them also from identity theft and fraud.
Consumer Insight Credit Information business line provide decision services and
solutions for general risk management, credit risk management, decision-making,
fraud and credit loss prevention. The revenue stream includes three main types of
performance obligations.
Reporting services (transactions) are information services typically delivered as
reports, bundles of information or individual pieces of information when, and if, the
customer places an order. Order and delivery are usually performed simultane-
ously. Regardless of the physical form of a report that Enento Group delivers to a
customer, Enento Group considers that the nature of its performance is a service
as a report consists of information that is valid only at the time it is extracted/is-
sued. Revenue is recognised at the point in time when the performance obligation
is satisfied by the delivery of information.
Customised service packages include, in practice, an unlimited number of
transactions of predetermined information services for the contract period deliv-
ered to the customer whenever needed. The services in the customised packages
are substantially the same and have the same pattern of transfer to the customer.
The agreements include fixed charges, i.e. minimum charges irrespective of the
customer’s actual use of the enquiry-based services. Enento Group has conclud-
ed that it provides a series of distinct services (i.e. stand ready to deliver). There-
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fore, a customised service package contract includes one performance obligation
that is recognised as revenue over time on a straight-line basis. Orders outside
the service package, if any, are separate performance obligations. If a customer
orders additional reports or information, the promises in additional orders are dis-
tinct performance obligations with stand-alone selling prices and are recognised
as revenue as separate contracts.
Enento Group also provides customer-specific projects. The scope of work is
defined on a contract-by-contract basis. These contracts may include several
deliverables such as different types of formulas to calculate the credit rating of
private customers for consumer credit or mortgage loans. Each of the deliver-
ables is a distinct performance obligation. Contracts for customer projects are
analysed separately to conclude whether revenue is recognised over time or at a
point in time due to customised contract terms. Projects may include subsequent
services linked to the formula, such as input data for the formulas or support
services. Revenue from services provided after the customer project – i.e. support
and maintenance services for the formulas created in the customer project – is
recognised over time.
The Group’s management has exercised judgement with regard to online ser-
vices contracts that include a fixed access fee that do not transfer a promised
good or service to the customer. These fixed access fees are advance payments
for reporting services (transactions) and should be recognised on the basis of
the satisfaction of the underlying performance obligation, i.e. allocated to each
piece of delivered information. Instead, these fixed fees have been recognised as
revenue in a linear fashion over the term of the contract for the sake of clarity. As
the volume of delivered online services (transactions) under these contracts does
not vary significantly during the year, the recognition of revenue over time has
been judged to be reasonable by the management.
Consumer Insight Consumer Marketing Information business line provide ser-
vices to help sales and marketing professionals improve the efficiency of their work
and boost customer management by providing target group tools, services for
surveying potential customers, register updates and maintenance, as well as var-
ious target group extractions. Performance obligations related to Customer man-
agement services are each of the services provided, e.g. a service for receiving
alerts about changed information concerning selected entities or a service that
enables the customer to perform searches of entities based on selected criteria,
such as location or line of business. Revenue from these services is recognised
over time on a straight-line basis. If a customer orders additional reports or in-
formation, the commitments associated with the additional orders are distinct
performance obligations with stand-alone selling prices and are recognised as
revenue as separate contracts.
Consumer Insight Direct-to-Consumer business line services are mainly ID se-
curity and blocking services that notify customers immediately if their credit infor-
mation is queried or changed. These services are delivered continuously over time
and recognised as revenue over time on a straight-line basis.
Digital Processes:
Services in this business area include, among others, real estate and apartment
information, information about buildings and their valuation as well as solutions
that help customers automate their collateral management processes and dig-
italise the administration of housing purchases. The services of the business area
are also used for compliance purposes, such as to identify companies’ beneficial
owners and politically exposed persons. The Digital Processes revenue stream
includes two main types of performance obligations, which are online services
(transactions) and service packages.
Online services (transactions) are information services typically delivered as
reports, bundles of information or individual pieces of information when, and if, the
customer places an order. Order and delivery are usually performed simultane-
ously. Regardless of the physical form of the report that Enento Group delivers to a
customer, Enento Group considers that the nature of its performance is a service,
as a report consists of information that is valid only at the time it is extracted/is-
sued. Revenue is recognised at the point in time when the performance obligation
is satisfied by the delivery of information.
For service packages, each of the services provided is a performance obliga-
tion, e.g. a drafting service, property valuation service or digitalised residential sale
process, which are available to customers on a when-and-if-needed basis. The
drafting service provides tools for effectively using the public authorities’ e-services,
such as contract templates. The digitalised residential sale process enables banks
and realtors to communicate through a portal and collect all the information that
is exchanged between banks and realtors throughout the purchase and sale pro
-
cess. Revenue from these services is recognised over time on a straight-line basis.
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Invoicing, payment terms, contract assets and liabilities
Private customers and entities ordering one-off analyses and certificates
through the Group’s online services are typically charged directly through the
customers’ credit cards on the website when the order is placed. The corre-
sponding service is provided immediately or within days of the payment. The
majority of corporate customers are invoiced as services have been transferred
to the customer or on a monthly basis. Typical payment terms are 14–30 days.
The Group also provides some continuous services with a fee invoiced yearly,
twice a year, quarterly or monthly, which indicate that the transaction price
includes financing component. As the Group applies the practical expedient
for significant financing components, the Group does not adjust transaction
prices for the effects of the time value of money when it expects that the period
between transferring the promised good or service to a customer and the cus-
tomer paying for that good or service will be one year or less. Customer-specific
projects have milestone payments but the timing differences between pay-
ments and revenue recognition do not typically exceed one year. Due to annual
fees and milestone payments related to projects, the recognition of contract
assets or liabilities depends on the timing of invoicing. The annual fees and
milestone payments are invoiced either in advance, during the contract period
or after providing the service. A contract asset is recognised if a fee is not in-
voiced as the services are provided. Contract assets are transferred to accounts
receivable when the underlying services have been invoiced. Contract liabilities,
i.e. advances received, are recognised if payment is received prior to providing
the underlying services. Contract liabilities are recognised as revenue when the
underlying services have been provided.
Principal or agent
Enento Group’s revenue is generated from the sale of credit, business and
market information that is collected by the Group from several data sources,
e.g. its customers, the trade register, the population register and the real estate
register. Most of the information is processed or refined by the Group and stored
in the Group’s databases. The management has analysed whether Enento
Group acts as a principal or as an agent related to the information sold. For the
majority of the information sold to customers, the Group takes control over the
information collected, has discretion in establishing selling prices and has the
primary responsibility for the information provided. Therefore, the management
has concluded that the Group acts as a principal in most of its information
services. However, within online services in the Digital Processes business, the
Group also provides its customers with official reports derived from registers
maintained by the authorities at the customer’s request. The official reports are
forwarded as is to customers as PDF files with no data input or modification by
Enento Group, and pricing is set by the authority in question. Enento Group has
concluded that it does not have control over the official reports and acts as an
agent in the arrangement and recognises revenue from the official reports as
net amounts.
Contract costs
Enento Group pays sales commissions to external and internal sales persons
when obtaining a contract. Sales commissions are activated as assets and am-
ortised on a straight line basis that is consistent with the pattern of the transfer
of the services to the client.
2.19 Lease agreements
The Group recognises an asset (a right-of-use asset for the object of the lease)
and a financial liability relating to payment of lease rents on the balance sheet
for all lease agreements in the Group unless the lease agreement duration is 12
months or less or the leased item is of low value. Starting from 1 January 2019,
right-of-use asset depreciation and interest expense relating to lease liabilities
are recognised in the income statement instead of lease expenses. Lease ex-
penses are divided into interest expense and repayment of the lease liability.
Enento Group leases office premises, IT equipment and cars. Lease agree-
ments are usually made for fixed time period ranging from one year to nine years.
Some lease agreements include options to extend the lease agreement. These
options are described further below. The lease term is the time period during
which the agreement is non-cancellable, also considering any extension and
termination options if it is reasonably certain that such options will be exercised.
Lease agreements can include both lease components and non-lease com-
ponents. The Group allocates the consideration in the contract to the lease and
non-lease components based on their relevant stand-alone prices. Lease terms
are negotiated on an individual basis and contain normal and usual terms and
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conditions. The lease agreements do not impose any covenants other than the
security interests in the leased assets that are held by the lessor.
Assets and liabilities arising from a lease are initially measured on a present
value basis. Right-of-use assets are measured at acquisition cost, which includes:
• the initial lease liability
• lease payments before the beginning of the agreement less any lease
incentives received
• any initial direct cost, and
• restoration costs.
The net book values of right-of-use assets at the end of the reporting period
divided into asset classes are presented in the table below:
Right-of-use assets
EUR thousand
31.12.2021 1.1.2021
Premises 6 007 7 254
Machinery and equipment 369 234
Total 6 376 7 489
Right-of-use assets recognised on lease agreements are subject to impairment
testing. The assets’ residual values and useful lives are reviewed, and adjusted if
appropriate, at the end of each reporting period. An asset’s carrying amount is
written down immediately to its recoverable amount if the asset’s carrying amount
is greater than its estimated recoverable amount.
Lease liabilities include the net present value of the following lease payments:
• fixed payments (including in-substance fixed payments) less any lease
incentives received
• variable lease components that are based on an index or a rate, initially
measured using the index or rate on the commencement date
• amounts expected to be payable by the Group under residual value guarantees
• the exercise price of a purchase option if the Group is reasonably certain to
exercise that option, and
• penalty payments for terminating the lease, if the lease term reflects the
Group exercising that option.
Lease payments to be made under reasonably certain extension options are in-
cluded in the measurement of the liability. Value added tax is not included in the
lease liability.
Lease payments are discounted using the lessee’s incremental borrowing rate,
being the rate that the lessee would have to pay to borrow the funds necessary
to obtain an asset of similar value to the right-of-use asset in a similar economic
environment with similar time period, terms, security and conditions.
To determine the incremental borrowing rate, the Group:
• where possible, uses recent third-party financing received by the lessee as a
starting point, adjusted to reflect changes in financing conditions since third-
party financing was received
• uses a build-up approach that starts with a risk-free rate adjusted for credit
risk for leases held by the Group, and
• makes adjustments specific to the lease, e.g. term, country, currency and
security.
Lease payments are allocated between principal and finance cost. Finance cost
is charged to profit or loss over the lease period so as to produce a constant
periodic rate of interest on the remaining balance of the liability for each period.
Right-of-use assets are generally depreciated over the shorter of the asset’s
useful life and the lease term on a straight-line basis. If the Group is reasonably
certain to exercise a purchase option, the right-of-use asset is depreciated over
the underlying asset’s useful life. While the Group revalues its buildings that are
presented within fixed assets, it has chosen not to do so for the right-of-use
buildings held by the Group.
The difference between the acquisition cost and carrying amount of right-of-
use assets is recognised on a straight-line basis over the lease term as depreci-
ation as follows:
Premises ..................................................................................................................................1–9 years
Machinery and equipment ......................................................................................... 1–5 years
Payments associated with short-term leases and all leases of low-value assets,
less incentives received from lessor, are recognised as expenses on a straight-
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line basis over the lease term in profit or loss. Short-term leases are leases with
a lease term of 12 months or less. Low-value assets comprise IT equipment and
office furniture. Expenses recognised in profit or loss relating to short-term leases
were EUR 80 thousand (EUR 73 thousand) and expenses recognised in profit or
loss relating to low-value assets were EUR 378 thousand (EUR 447 thousand) in
the financial year 2021.
Extension and termination options are included in a number of lease agree-
ments for right-of-use assets. These are used to maximise operational flexibility
in terms of managing the assets used in the Group’s operations. The majority of
the extension and termination options held are exercisable only by the Group and
not by the respective lessor.
In determining the lease term, management considers all facts and circum-
stances that create an economic incentive to exercise an extension option or not
exercise the termination option. Extension options (or periods after termination
options) are only included in the lease term if the lease is reasonably certain to
be extended (or not terminated). Most extension options in offices and machinery
and equipment leases have not been included in the lease liability because the
Group could replace the assets without significant cost or business disruption.
2.20 Government grants
Grants from the government are recognised at their fair value where there is a
reasonable assurance that the grant will be received and the Group will comply
with all attached conditions.
Government grants relating to costs are deferred and recognised in the in-
come statement over the period necessary to match them with the costs that
they are intended to compensate.
The Group has not received public subsidies in fiscal year 2021 (EUR 80 thou-
sand).
2.21 Operating profit (EBIT)
IAS Standard 1 Presentation of Financial Statements does not define operating
profit. The Group has defined the concept as follows: operating profit is the net
total which is formed when other operating income is added to net sales and
the following items are detracted: the cost of materials and services, personnel
expenses, other operating expenses, the cost adjustment of work performed by
the entity and capitalised, depreciation, amortisation and potential impairment
loss. All other items of the income statement are presented below the operating
profit line.
3 Critical accounting estimates and judgements
The management of Enento Group makes estimates and assumptions concerning
the future as well as exercises judgement in applying the accounting principles
when preparing financial statements. Estimates and judgements are continually
evaluated, and they are based on historical experience and other factors, includ-
ing expectations of future events that are believed to be reasonable under the
circumstances. The resulting accounting estimates will, by definition, seldom equal
the related actual results. The estimates and assumptions that have a significant
risk of causing a material adjustment to the carrying amounts of assets and lia-
bilities within the next financial year are addressed below.
3.1 Defining cash-generating units, allocating goodwill and assumptions used in
goodwill impairment testing
The management of Enento Group has exercised judgement in defining the
cash-generating units and the allocation of goodwill to those units. Based on
the judgement, the Group’s management has determined that goodwill is allo-
cated for goodwill impairment testing purposes to the following cash-generating
units: Finland, Sweden, and Norway and Denmark. The recoverable amounts of
the Group’s cash-generating units have been determined on the basis of value-
in-use calculations which require the use of estimates including projected future
cash flows, estimates of discount rate and the economic development of the
Group’s operating countries. On 31 December 2021, the Group’s goodwill amount-
ed to EUR 354,6 million (EUR 358,2 million). Enento Group tests the carrying value
of goodwill annually or more frequently if events or changes in circumstances
indicate that such carrying value may not be recoverable. Also see note 15 In
-
tangible assets.
3.2 Business combinations
Net assets acquired in business combinations are measured at fair value. The
measurement of the fair value of the acquired net assets is based on market
values of similar assets or estimates of expected cash flows (e.g. intangible as-
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sets such as customer relationships, technology, marketing and trademarks). The
management of Enento Group has exercised judgement and made assumptions
in determining the fair values of the acquired intangible assets that are based
on assumptions and estimates on expected long-term development of net sales
and profitability, useful lives of the assets and discount rates. The management
believes that the estimates and assumptions used are sufficiently reliable for de-
termining fair values.
3.3 Accounting for the shareholder agreement
Enento Group Plc is party to a shareholder agreement concerning the control of
UC’s credit register and credit register information, as the company owned jointly
by the sellers of UC shares received, as part of the transaction, a small number
of UC’s B shares, granting their holders certain administrative rights. The B shares
do not entitle their holders to dividends or UC’s result or balance sheet. Further-
more, according to UC’s Articles of Association, among others, certain resolutions
concerning the credit register and credit register information require a unanimous
decision of the Board of Directors and the requirement for the making of such a
decision at UC’s General Meeting is that the minority shareholders vote in favour
of the decision. These requirements are applied to changes containing a risk that
UC is, from time to time, not able to fulfil its legal obligations and/or contractual
obligations concerning, among others, the use, availability or processing of the
credit register or credit register information, secured distribution of credit register
information and the interface used for the delivery of credit information. Enento
Group Plc has further undertaken not to transfer UC’s shares to any other party,
unless such a party is in possession of sufficient capacities and unless the party
does not commit to the same restrictions as Enento Group in relation to the credit
register and credit register information. The purpose of these arrangements has
been to ensure the maintenance of the credit register and the control of credit
register information provided by the sellers. The management of Enento Group
has exercised judgement in reporting the B shares with a value of SEK 1 000 as a
non-controlling interest in equity.
3.4 Capitalised development expenses
Costs incurred in the development phase of an internal project are capitalised
as intangible assets if a number of criteria are met. The management has made
judgements and assumptions when assessing whether a project meets these cri-
teria, and on measuring the costs and the economic life as well as the future cash
inflows generated by the development projects. Expected returns from capitalised
development projects involve estimates and judgement from the management
about the future net sales and related costs. These estimates involve risks and un-
certainties, and it is possible that, following changes in circumstances, expected
returns from capitalised development projects change.
Enento Group assesses indications of impairment for capitalised development
projects. The value for capitalised development projects may decrease, if the
expected returns from new services change. Also see note 15 Intangible assets.
3.5 Recoverability of deferred tax assets
Judgement is required in assessing whether deferred tax assets and certain de-
ferred tax liabilities are recognised on the balance sheet. Deferred tax assets
are recognised 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
the management’s estimates of future cash flows. Estimates of these future cash
flows are dependent on the management’s estimates 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 beyond the Group’s control.
These estimates and assumptions are subject to risk and uncertainty, hence it is
possible that changes in circumstances will alter expectations. This may impact
the amount of deferred tax assets and deferred tax liabilities recognised on the
balance sheet and the amount of temporary differences. Deferred tax receivables
amounted to EUR 0 (EUR 486 thousand) and deferred tax liabilities amounted to
EUR 22 711 thousand (EUR 23 213 thousand) after netting the deferred taxes on
31 December 2021. Deferred tax liabilities relate to intangible assets recognised
in connection with business combinations. See also note 25 Deferred tax assets
and liabilities.
3.6 Defined benefit pension obligations
The recognition of defined benefit pension obligations and plan assets are based
on actuarial calculations. The actuarial calculations require assumptions regard-
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ing the discount rate used, future inflation rate, mortality and salary increases.
The actual outcome may deviate from the assumptions used, which may result in
changes in the carrying values of defined benefit pension items. See also note 23
Post-employment obligations.
4 Financial risk management
4.1 Financial risk factors
Enento Group’s activities expose it to a variety of financial risks: market risk (in-
cluding cash flow interest rate risk and currency rate risk), credit risk and liquidity
risk. The Group’s overall risk management programme focuses on the unpredict-
ability of financial markets and seeks to minimise potential adverse effects on the
Group’s financial position and performance.
Risk management is carried out by the Group’s finance function under policies
approved by the Board of Directors. The Board provides principles for overall risk
management, as well as policies covering specific areas, such as, interest rate risk,
use of derivative financial instruments, and investment of excess liquidity.
.
4.1.1 Market risk
Cash flow and fair value interest rate risk
Enento Group’s interest rate risk arises from non-current financial liabilities
amounting to EUR 164,5 million (EUR 167,0 million) on 31 December 2021 and all of
which were issued with variable rates. Financial liabilities issued at variable interest
rates expose the Group’s cash flow to interest rate risk. The rise in interest rates
may affect the cost of available financing and the Group’s current financing costs.
Loans are denominated in EUR and SEK. The Group does not currently hedge
against cash flow interest rate risk. See also note 24 Financial liabilities.
On 31 December 2021, if interest rates on interest-bearing liabilities had been
50 basis points higher with all other variables held constant, profit for the year
would have been EUR 659 thousand (EUR 765 thousand) lower as a result of high-
er interest expense on variable interest rate interest-bearing liabilities. Interest
rate sensitivity has been calculated by increasing the interest curve by 50 basis
points (due to low market interest environment the lower scenario has not been
presented). The interest position includes all external variable interest rate inter-
est-bearing liabilities.
Currency risk
The Group operates in Finland, Sweden, Norway and Denmark. A significant pro-
portion of the Group’s sales and expenses are incurred in currencies other than
the euro. The objective of currency risk management is to reduce the uncertainty
arising from the potential impact of fluctuating exchange rates on the value of the
future cash flows, receivables, liabilities and other balance sheet items. The Group
is exposed to currency fluctuations, especially in relation to the Swedish krona.
Transaction risk arises from the foreign currency cash flows related to business
operations and financing when transactions are carried out in a currency other
than the functional currency of each Group company. Sales and purchases are
mainly generated in the operating currency of each Group company. As a result,
the Group is not exposed to significant transaction risk. The Group protects itself
from transaction risks mainly by operational means. Currency derivatives (forward
contracts) may be used if necessary to reduce or eliminate uncertainty arising
from fluctuations in exchange rates.
For derivatives not designated for hedge accounting, changes in the fair val-
ues are recognised in other operating income, other operating expenses, financial
income or financial expenses depending on the purpose of the derivatives.
The fair values of currency forward contracts are measured on the financial
statements date using generally applied measurement methods. The counter
-
party bank also sends the Group a valuation report.
On the reporting date, 31 December 2021, the Group does not have open cur-
rency derivatives.
The Group’s operating result is particularly exposed to a translation risk related
to foreign exchange rates arising from the translation of the income statements
and balance sheets of foreign subsidiaries into the presentation currency of the
Group’s financial statements, which is the euro. The euro is also the functional cur-
rency of Enento Group Plc. The Group mainly uses operational means to minimise
the negative impacts of exchange rate fluctuations. The Group aims to finance its
Swedish operations in Swedish krona in order to cover the changes in operating
profit due to exchange rate fluctuations partly in changes in finance costs.
Under normal circumstances, the Group does not use foreign currency deriva-
tive instruments to hedge against translation risks, but the Group applies hedge
accounting of net investment in a foreign operation for a loan. In October 2018,
Enento Group Plc took out a bank loan of EUR 63,6 million, which is denominated
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 46
in Swedish kronas (SEK) and has a maturity date of 18 October 2023. The loan
was drawn to finance an equity investment to be made in the Swedish subsid-
iary and its spot rate has been designated as a hedge of the net investment in
this subsidiary. No ineffectiveness was recognised from net investments in foreign
entity hedges.
The impacts of the foreign currency denominated loan designated as a net
investment hedge to the Group’s financial position and profit for the period were
as follows:
EUR thousand (unless otherwise stated)
31.12.2021 31.12.2020
Net investment in foreign operation
Carrying amount (bank loan) 64 534 65 923
SEK carrying amount (thousand) 661 491 661 491
Hedge ratio 1:1 1:1
Change in carrying amount of bank loan
as a result of foreign currency movements
(recognised in OCI)
1 389 -2 603
Change in value of hedged item used to
determine hedge effectiveness
-1 389 2 603
Weighted average hedged rate for the
year (EUR/SEK)
10,1459 10,4848
4.1.2 Credit risk
The Group is exposed to credit and counterparty risks through outstanding re-
ceivables from customers and cash balances. Credit and counterparty risks occur
when counterparties are unable or unwilling to fulfil their obligations.
Credit risk is managed in the Group’s finance function, which is responsible for
preparing the credit policy complied with in Enento Group. The Group assesses
the creditworthiness of a new customer, taking into account mainly its financial
position and past experience with the customer. When the credit risk is assessed
to be high, a guarantee payment is requested. The amount of guarantee pay-
ments received was immaterial for the periods presented. The Group’s client base
is widespread hence there are no large concentrations of credit risk. Majority of
the clients are companies, and the amount of consumers is in minority.
The Group holds excess cash (bank accounts and short-term deposits) with
financial institutions whose credit rating is minimum ‘A’. The Group’s outstanding
receivables are not exposed to significant credit risk, and its credit losses have
been minor. See also note 2.7 Accounts receivable and note 18 Account and other
receivables.
Accounts receivable and contract assets are derecognised when there is no
reasonable expectation of recovery. Indicators that there is no reasonable expec-
tation of recovery include, amongst others, potential bankruptcy of the debtor or
inability to prepare a payment plan with the Group and delay of the contractual
payments for more than a year.
In accordance with the accounting policies, the Group applies a simplified ap-
proach to the recognition of expected credit losses, according to which expected
credit losses on any trade receivables and contract assets are recognised for the
entire validity period according to the delay of payment and different types of
trade receivables. The loss-related deductible item on 31 December 2021 and 31
December 2020 was specified as follows for accounts receivable and contract
assets:
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 47
31.12.2021
EUR thousand
Not due
Due
1–30
days
Due
31–60
days
Due
61–90
days
Due
91–180
days
Due
181–360
days
Due
over 360
days
Total
Expected loss rate 0,03 % 0,1 % 5,7 % 11,3 % 18,7 % 50,0 % 100,0 %
Gross carrying amount – accounts receivable 16 335 1 819 270 111 212 273 547 19 567
Loss allowance 5 2 15 13 40 136 547 759
31.12.2020
EUR thousand
Not due
Due
1–30
days
Due
31–60
days
Due
61–90
days
Due
91–180
days
Due
181–360
days
Due
over 360
days
Total
Expected loss rate 0,03 % 0,1 % 3,6 % 8,8 % 17,6 % 50,0 % 100,0 %
Gross carrying amount – accounts receivable 15 217 1 895 458 150 335 445 472 18 972
Loss allowance 5 2 17 13 59 222 481 800
Reconciliation of the closing loss allowances for accounts receivable on 31 December 2021 with the opening loss allowances:
EUR thousand
31.12.2021 31.12.2020
1 January 800 355
Increase in accounts receivable loss allowance recognised in connection with business combinations - -
Increase in accounts receivable loss allowance recognised in profit or loss during the year 283 566
Receivables written off during the year as uncollectible -280 -160
Reversal of unused allowance -46 41
Translation differences 1 -1
At 31 December 759 800
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 48
4.1.3 Liquidity risk
The Group’s ability to finance its operations depends mainly on the amount of
cash flows from operations and the sources of financing available.
Cash flow forecasting is performed on a Group level, taking the Group’s net
debt position into account. The Group finance function monitors Enento Group’s
liquidity requirements to ensure it has sufficient cash to meet operational needs
while maintaining sufficient headroom on its undrawn committed loan facilities at
all times so that the Group does not breach loan limits or covenants. On 31 De-
cember 2021, the Group had undrawn interest-bearing credit facilities amounting
to EUR 20 million (EUR 20 million).
Enento Group has a term loan and revolving credit facility agreement with
Danske Bank A/S, OP Corporate Bank Plc and Nordea Bank Plc for a total value
of EUR 180,0 million, consisting of a term loan of EUR 160,0 million and a revolving
credit facility of EUR 20,0 million. In accordance with the terms of the loan agree-
ment, the Company took out the term loan partly in EUR and partly in SEK. The
loans mature in October 2023. More information is provided in note 24 Financial
liabilities.
The loan from a financial institution includes a financial covenant that is net
debt to EBITDA, calculated as defined under the terms of the financing agreement.
The covenants are monitored on a quarterly basis. The covenants are monitored on
a quarterly basis. The ratio of the Group’s net debt to EBITDA adjusted according to
the terms of the financing agreement was 2,4 (2,6) on 31 December 2021. The cove-
nant limit in accordance with the financing agreement was 3,5 (3,5) on 31 December
2021. The Group met all of the covenants in the months under review.
To facilitate efficient cash management in the Group, a multi-currency cash
pool arrangement has been implemented with Danske Bank A/S. An overdraft of
EUR 15,0 million is included in the cash pool arrangement. The overdraft had not
been utilised on 31 December 2021.
Surplus cash is invested in bank accounts or short term deposits with appropri-
ate maturities providing sufficient liquidity. The Group has not made investments
in short-term deposits in 2021 or 2020.
The table below shows future repayments, interest expenses and capitalised
interest expenses of the Group’s financial liabilities divided into maturity group-
ings based on the remaining contractual maturity at the balance sheet date.
The amounts disclosed in the table are the contractual undiscounted cash flows.
31.12.2021
EUR thousand
Under 1 year 1–2 years 2–5 years
Over 5 years
Total
Loans from financial
institutions
2 031 162 565 - - 164 596
Lease liabilities 2 438 1 148 2 014 1 221 6 822
Accounts payable 8 040 - - - 8 040
Total 12 509 163 713 2 014 1 221 179 458
31.12.2020
EUR thousand
Under 1 year 1–2 years 2–5 years
Over 5 years
Total
Loans from financial
institutions
2 048 2 048 163 971 168 067
Lease liabilities 2 284 2 037 2 062 1 837 8 219
Accounts payable 7 906 - - 7 906
Total 12 238 4 085 166 033 1 837 184 192
4.2 Capital management
The Group’s objectives when managing capital are to safeguard the Group’s abil-
ity to continue as a going concern in order to provide returns and increase in
value of invested capital for shareholders.
The Group defines capital as including equity and loans from financial insti-
tutions. The capital ratios monitored by the Group are the equity ratio and net
debt, with the latter being the most important ratio monitored by the Group. Net
debt is calculated as loans from financial institutions (included in ‘current and
non-current interest-bearing liabilities’) less short-term deposits and cash in hand
and at banks. The management does not have a target level for net debt but
follows it regularly.
The table below shows the net debt position at reporting date.
EUR thousand
31.12.2021 31.12.2020
Loans from financial institutions 160 283 161 535
Lease liabilities 6 599 7 666
Cash in hand and banks 25 318 26 164
Net debt 141 564 143 037
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 49
5 Acquisitions
Enento Group made an investment into an associated company by acquiring 38,3
% share of Goava Sales Intellicence AB during the financial year 1 January – 31
December 2021. Please see note 17 Shares in Associated companies.
6 Net sales
Net sales by market area
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Finland 61 574 60 239
Sweden 84 660 77 461
Norway 13 389 10 612
Denmark 712 536
Other EU countries 2 358 1 483
Other countries 822 986
Total 163 515 151 317
The reconciliation of net debt, showing changes in cash flows and other changes, is presented below:
EUR thousand
Cash
Finance leases
under 1 year
Finance leases
over 1 year
Loans
over 1 year
Total
Net debt 1.1.2020 20 361 -2 276 -7 428 -158 797 -148 140
Cash flow 5 724 -2 127 - - 3 597
Exchange rate adjustments 79 - - -2 603 -2 524
Other changes - 2 162 2 003 -135 4 030
Net debt 31.12.2020 26 164 -2 241 -5 425 -161 535 -143 037
Cash flow -730 -2 379 - - -3 110
Exchange rate adjustments -115 - - 1 389 1 274
Other changes - 2 285 1 161 -137 3 309
Net debt 31.12.2021 25 318 -2 335 -4 264 -160 283 -141 564
Net sales by products and services
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Business Insight 78 481 74 243
Consumer Insight 71 890 66 164
Digital Processes 13 143 10 910
Total 163 515 151 317
Enento Group’s organisation consists of two types of units: business areas and
functional units.
On 14 January 2021, Enento Group Plc announced its plan of changing the
business area structure and creating a new Data and Analytics unit.
Starting 1 April 2021 Enento Group has three business areas: Business Insight,
Consumer Insight and Digital Processes.
The new Consumer Insight business area focuses on customer-driven con-
sumer information services, while the Business Insight business area focuses on
business information services. For more information on business areas, see Board
of Directors’ Report, Business Overview.
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 50
Enento Group’s comparable net sales information by business area for 2020
and Q1 2021 was published on 19 May 2021.
The Group’s net sales increased by 8,1% compared to 2020. The key factors
in revenue growth were the increased market demand in the Consumer Insight
business area in Finland and Sweden, the continued strong growth in the Digital
Processes business area, especially in Sweden, and the good development of
premium services for SMEs in the Business Insight business area.
Net sales for the financial year 2021 included EUR 524 thousand (EUR 162 thou-
sand) in revenue from long-term customer projects which is recognised under the
percentage-of-completion method.
Assets and liabilities based on contracts with customers are presented in note
20.
7 Other operating income
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Capital gains from the sale of property, plant and
equipment
156 149
Rental income 424 421
Insurance compensation 100 -
Other items 11 80
Total 690 649
8 Materials and services
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Purchases during the financial year -24 150 -23 231
External services -3 443 -2 211
Total -27 593 -25 442
9 Personnel expenses
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Salaries and benefits
1
-29 231 -27 422
Pension costs - defined contribution plans -4 968 -4 279
Pension costs - defined benefit plans
2
-292 -447
Social security costs -5 240 -4 667
Total -39 731 -36 815
1
For the financial year 2021, the personnel expenses include an accrued cost of EUR 408 thousand from
the management’s long-term incentive plan and, for the financial year 2020, EUR 660 thousand.
2
More information on pension costs is presented in note 23 Pension obligations.
Salaries and benefits of the management
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Salaries and benefits -3 256 -2 523
Pension costs – defined contribution plans -9 -9
Total -3 265 -2 532
The management’s salaries and benefits are itemised in more detail in note 28
Related parties.
Number of personnel on average
Employees
1.1.–31.12.2021 1.1.–31.12.2020
Full time 416 405
Part time and temporary 16 13
Total 432 418
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 51
10 Other operating expenses
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Other employment expenses -1 162 -929
Expenses related to premises -652 -698
Marketing expenses -3 839 -3 597
Paid commissions on sales -11 852 -9 624
Office expenses -1 466 -2 017
IT expenses -16 886 -16 117
Purchased services -3 908 -5 583
Additional payment for acquisition, arbitration institute
decision
- -2 264
IFRIC agenda decision one-off expense -1 135 -
Other expenses -1 919 -2 484
Total -42 818 -43 314
Auditor’s fees
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
PricewaterhouseCoopers
Statutory fees -249 -243
Tax advisory -7 -3
Other services -30 -26
Total -286 -272
11 Depreciation and amortisation
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Amortisation on intangible assets -19 311 -17 940
Depreciation of property, plant and equipment -3 437 -3 372
Total -22 749 -21 311
12 Finance income and expenses
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Finance income
Interest income from loan and other receivables 22 24
Exchange rate gains 404 247
Total finance income 426 271
Finance expenses
Impairment of financial liabilities at fair value through
profit or loss
- -
Interest expenses from financial liabilities at amortised
cost
-2 122 -2 118
Net interest expenses relating to defined benefit pension
plans
-100 -117
Interest expenses for lease liabilities -132 -153
Other interest expenses -46 -8
Exchange rate losses -99 -488
Other finance expenses -95 -114
Total finance expenses -2 593 -2 998
Total -2 166 -2 728
Exchange rate gains and losses in profit or loss
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Exchange rate gains and losses in net sales 0 10
Exchange rate gains and losses in purchases -10 16
Exchange rate gains in financial income 404 247
Exchange rate losses in financial expenses -99 -488
Total 296 -215
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 52
13 Income tax expenses
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Current tax on profits for the financial year -7 568 -6 564
Change in deferred taxes 738 923
Total -6 830 -5 640
Income taxes recognised in consolidated income statement differ from the inco-
me taxes calculated using the Finnish tax rate as follows:
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Result before income tax 32 701 25 088
Tax calculated at Finnish tax rate -6 540 -5 018
Different tax rates of foreign subsidiaries -95 -128
Other:
Income not subject to tax 24 19
Non-deductible expenses -155 -515
Tax losses for which deferred income tax asset
was not recognised
- -
Other items -64 1
Total -6 830 -5 640
Finland introduced interest deduction limitation rules starting from 1 January 2014,
limiting the deductibility of intra-group net interests. Interests from the Parent
Company’s loans were subject to these interest deductibility limitation rules. EUR
22 268 thousand of the Parent Company’s net interest expenses for the financial
year 2014 was non-deductible for tax purposes. As a result, the Parent Company
generated taxable income against which previously unrecognised tax losses were
utilised. This non-deductible net interest from the financial year 2014 is carried
forward and can be deducted from the following years’ taxable income. Net in-
terest expense carryforwards do not expire.
14 Earnings per share
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 in
issue during the year. Diluted earnings per share reflect the possible impact of the
Group’s management’s long-term incentive plan.
1.1.–31.12.2021 1.1.–31.12.2020
Profit attributable to the owners of the Parent Company
(EUR)
25 870 556 19 447 836
Weighted average number of shares (number of shares) 24 030 363 24 004 917
Basic earnings per share 1,08 0,81
Management’s incentive plan (pcs) 9 587 24 475
Number of shares, weighted average, diluted 24 039 950 24 029 391
Diluted earnings per share 1,08 0,81
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 53
15 Intangible assets
EUR thousand
Goodwill Trademarks Customers Technology
Product development
and software costs
Work in progress and
advances paid Total
Cost at 1.1.2021 358 233 32 922 26 509 71 321 34 231 13 133 536 350
Reduction relating to IFRIC - - - - -841 -296 -1 137
Additions - - - - 363 14 048 14 411
Disposals - - - - - - -
Reclassifications - - - - 9 830 -9 830 -
Translation differences -3 612 -663 -385 -1 352 -1 008 -546 -7 565
Cost at 31.12.2021 354 621 32 259 26 124 69 969 42 576 16 510 542 059
Accumulated amortisation
at 1.1.2021
- -5 712 -6 405 -19 417 -13 610 - -45 144
Disposals - - - - - - -
Amortisation for the financial year - -2 251 -2 627 -7 769 -6 664 - -19 311
Translation differences - 160 109 272 1 068 - 1 609
Accumulated amortisation
at 31.12.2021
- -7 803 -8 924 -26 913 -19 207 - -62 846
Net book value at 1.1.2021 358 233 27 210 20 104 51 904 20 621 13 133 491 205
Net book value at 31.12.2021 354 621 24 456 17 201 43 056 23 369 16 510 479 213
EUR thousand
Goodwill Trademarks Customers Technology
Product development
and software costs
Work in progress and
advances paid Total
Cost at 1.1.2020 351 368 31 666 25 737 68 738 24 134 13 032 514 675
Additions - 1 - - 331 11 383 11 715
Disposals - - - - -1 933 0 -1 933
Reclassifications - - - - 11 383 -11 383 -
Translation differences 6 864 1 254 773 2 583 316 102 11 893
Cost at 31.12.2020 358 233 32 922 26 509 71 321 34 231 13 133 536 350
Accumulated amortisation at 1.1.2020 - -3 195 -3 601 -11 268 -9 782 - -27 846
Disposals - - - - 1 933 - 1 933
Amortisation for the financial year - -2 180 -2 557 -7 515 -5 688 - -17 940
Translation differences - -337 -248 -633 -73 - -1 291
Accumulated amortisation at
31.12.2020
- -5 712 -6 405 -19 417 -13 610 - -45 144
Net book value at 1.1.2020 351 368 28 471 22 136 57 470 14 352 13 032 486 828
Net book value at 31.12.2020 358 233 27 210 20 104 51 904 20 621 13 133 491 205
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 54
Impairment test for goodwill
The management monitors business performance at Group level. The Group has
three cash-generating units – Finland, Sweden, and Norway and Denmark. The
Group monitors goodwill at these levels. Goodwill has been recognised in the
Group’s cash-generating units as follows: Finland EUR 175,8 million, Sweden EUR
175,1 million, Norway and Denmark EUR 3,5 million. The recoverable amounts of the
company’s cash generating units are based on value in use calculations. These
calculations use cash flow forecasts for five years, based on forecasts approved
by the management and determined before tax.
Key parameters affecting the forecasts are the development of net sales and
the most important expense items. The forecasts take into account the Group’s
market position in its market areas, the general economic environment and the
realised development of the Group’s cash generating units in the most important
parameters affecting the forecasts. The average annual growths included in the
forecasts do not exceed the Group’s long-term goals in the forecast period. Cash
flows beyond the five-year period are extrapolated using the estimated long-
term growth rates presented below.
The key assumptions used for value-in-use calculations are as follows:
31.12.2021 31.12.2020
Finland
Long-term growth rate 0,5 % 1,5 %
Discount rate 6,9 % 6,2 %
Sweden
Long-term growth rate 0,5 % 1,5 %
Discount rate 7,1 % 5,6 %
Norway and Denmark
Long-term growth rate 0,5 % 1,5 %
Discount rate 12,1 % 12,7 %
The discount rates used are pre-tax and reflect specific risks relating to the CGU.
As part of the performance review the management has performed a sensitivity
analysis around the key parameters. The results suggest that a situation in which
the carrying value of goodwill and other assets under impairment testing would
exceed the recoverable value is unlikely.
Changed parameters used in the sensitivity analysis were:
Finland:
• 7.5 %-point (10 %-point) decrease in annual net sales growth rate
• 5.0 %-point (7.5 %-point) decrease in annual EBITDA margin
• Pre-tax discount rate of 10.2 % (10,1 %)
Sweden:
• 5 %-point (7.5 %-point) decrease in annual net sales growth rate
• 2.5 %-point (5 %-point) decrease in annual EBITDA margin
• Pre-tax discount rate of 8.3 % (7.7 %)
Norway and Denmark
• 20 %-point (10 %-point) decrease in annual net sales growth rate
• 20 %-point (8.5 %-point) decrease in annual EBITDA margin
• Pre-tax discount rate of 17.4 % (16.7 %)
The sensitivity analysis did not indicate impairment, when the parameters above
were changed one at a time, while others remained constant. If all the parameters
above would be changed at the same time, the recoverable amount would equal
the carrying value for the tested assets.
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 55
16 Property, plant and equipment
EUR thousand
Machinery and
equipment
Right-of-use,
machinery and
equipment
Right-of-use,
premises
Leased
machinery and
equipment
Other tangible
assets
Total
Cost at 1.1.2021 9 676 399 11 770 - 269 22 114
Additions 1 634 350 1 011 - - 2 996
Disposals -423 -138 -21 - - -582
Translation differences -11 -7 -86 - -3 -106
Cost at 31.12.2021 10 877 604 12 675 - 266 24 421
Accumulated amortisation at 1.1.2021 -7 778 -165 -4 516 - -84 -12 542
Disposals 295 70 16 - 0 381
Amortisation for the financial year -1 021 -143 -2 220 - -53 -3 437
Translation differences 5 2 52 - 1 60
Accumulated amortisation at 31.12.2021 -8 499 -236 -6 668 - -135 -15 538
Net book value at 1.1.2021 1 899 234 7 254 - 185 9 572
Net book value at 31.12.2021 2 377 369 6 007 - 130 8 883
EUR thousand
Machinery and
equipment
Right-of-use,
machinery and
equipment
Right-of-use,
premises
Leased
machinery and
equipment
Other tangible
assets
Total
Cost at 1.1.2020 9 337 361 11 498 - 157 21 353
Additions 815 129 126 - 104 1 175
Disposals -516 -102 -54 - - -672
Translation differences 41 11 200 - 8 259
Cost at 31.12.2020 9 676 399 11 770 - 269 22 114
Accumulated amortisation at 1.1.2020 -7 099 -88 -2 180 - -38 -9 406
Disposals 368 24 11 - - 403
Amortisation for the financial year -1 000 -96 -2 233 - -42 -3 371
Translation differences -46 -5 -114 - -3 -168
Accumulated amortisation at 31.12.2020 -7 778 -165 -4 516 - -84 -12 542
Net book value at 1.1.2020 2 238 273 9 318 - 118 11 947
Net book value at 31.12.2020 1 899 234 7 254 - 185 9 572
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 56
17 Investments in associates
Enento Group Plc acquired 38,3 % shareholding of Goava Sales Intelligence AB on
24.6.2021 by subscribing to new preference shares in the company. At the same
time Enento agreed to complete subsequent preference share subscriptions pro-
vided that the company fulfills certain preconditions laid out in the business plan,
as well as acquired a purchase option to acquire all outstanding shares in the
company after a mutually agreed business plan period ending in year 2024. The
subscription price of the preference shares is approximately SEK 38,4 million and
was paid in cash.
Equity method accounted investments as of 31.12.2021
Shareholding %
Name of entity
Country Classification 2021 2020
Goava Sales Intelligence AB Sweden Associate 38,3 -
EUR thousand
2021 2020
Cost at 1.1. - -
Additions 3 801 -
Share of net income -381 -
Translation differences -50 -
Net book value 31.12. 3 370 -
Summarised financial information for Goava Sales Intelligence AB
EUR thousand
2021 2020
Non-current assets 933 -
Current assets 2 993 -
Total assets 3 927 -
Non-current liabilities 257 -
Current liabilities 509 -
Total liabilities 766 -
Net assets 3 160 -
Net sales 815 -
Profit for the financial year -1 063 -
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 57
Financial instruments by category
31.12.2021
EUR thousand
Financial assets
at amortised cost
Financial assets at
fair value through
profit or loss Total
Assets as per balance sheet
Financial assets and other receivables 76 0 76
Account and other receivables 18 808 - 18 808
Cash and cash equivalents 25 318 - 25 318
Total 44 203 0 44 203
31.12.2021
EUR thousand
Financial liabilities
at amortised cost
Financial liabilities
at fair value through
profit or loss
Total
Liabilities as per balance sheet
Financial liabilities 166 882 - 166 882
Accounts payable and other payables 8 403 - 8 403
Derivatives – non-hedge accounting - - -
Total 175 285 - 175 285
31.12.2020
EUR thousand
Financial assets
at amortised cost
Financial assets at
fair value through
profit or loss
Total
Assets as per balance sheet
Financial assets and other receivables 76 0 76
Account and other receivables 18 172 - 18 172
Cash and cash equivalents 26 164 - 26 164
Total 44 412 0 44 412
31.12.2020
EUR thousand
Financial liabilities
at amortised cost
Financial liabilities
at fair value through
profit or loss
Total
Liabilities as per balance sheet
Financial liabilities 169 201 - 169 201
Accounts payable and other payables 8 162 - 8 162
Derivatives – non-hedge accounting - 217 217
Total 177 363 217 177 581
18 Financial instruments
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 58
19 Accounts receivable and other receivables
EUR thousand
31.12.2021 31.12.2020
Accounts receivable 19 567 18 972
Credit loss allowance -759 -800
Net carrying value 18 808 18 172
Prepaid expenses and accrued income 7 844 6 638
Accrued income from long-term customer projects - 114
Other receivables 244 105
Total 26 896 25 030
The fair values of account and other receivables equal their carrying amount. The
maximum exposure to credit risk is the carrying value of each receivable.
On 31 December 2021, the Group had due accounts receivable amounting to
EUR 3 232 thousand (EUR 3 755 thousand). These relate to a number of individual
customers.
The aging analysis of account receivables is as follows:
EUR thousand
31.12.2021 31.12.2020
Not due 16 335 15 217
Overdue by
Less than 1 month 1 819 1 895
1–3 months 381 608
3 months or more 1 033 1 252
Total 19 567 18 972
Credit loss allowance -759 -800
Total 18 808 18 172
Amount recognised as actual credit loss 280 160
During the financial year, accounts receivable of EUR 280 thousand (EUR 160
thousand) were recognised as actual credit losses due to non-collection of the
accounts receivable in question. The individually impaired receivables relate to
sales receivables of a number of independent customers.
On 31 December 2021, the carrying amounts of the Group’s account and other
receivables were denominated in EUR, SEK, NOK and DKK.
20 Assets and liabilities based on contracts with customers
EUR thousand
31.12.2021 31.12.2020
Assets based on contracts 783 831
Assets recognised on expenses based on contracts - 114
Total 783 946
Advances received from contracts with customers -10 738 -12 075
Total -10 738 -12 075
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 59
Changes in contract assets and liabilities
EUR thousand
Assets
2021
Liabilities
2021
Assets
2020
Liabilities
2020
Opening balance 1 January 946 -12 075 953 -10 247
Acquired through business
combinations
- - - -
Reclassifications from contract
assets to trade receivables
-5 973 - -5 849 -
Reclassifications from assets
based on settlements to expenses
- - - -
Advances for expenses recognised
for the financial year relating to
performance obligations
-114 - -6 -
Recognised sales proceeds from
contract liabilities during the
financial year
- 28 795 - 26 448
Sales proceeds not yet invoiced
recognised for the period
5 940 - 5 817 -
Advances received during the
period relating to unfulfilled per-
formance obligations
- -27 488 - -28 139
Translation differences -15 29 30 -136
Total net changes -162 1 336 -7 -1 828
Closing balance 31 December 783 -10 738 946 -12 075
Of the opening balance for contract liabilities, EUR 12 075 thousand (EUR 10 247
thousand) has been recognised as revenue during the financial year 2021.
Transaction price allocated to remaining performance obligations
EUR thousand
31.12.2021 31.12.2020
Transaction price allocated to remaining performance
obligations
11 262 17 152
The Group has applied the practical expedient allowed by IFRS 15 and presented
the transaction price allocated to remaining performance obligations, which is
based on fixed monthly charges, only for customer contracts continuing for more
than 12 months. Of the transaction price allocated to remaining performance
obligations, EUR 6 423 thousand will be recognised as revenue in 2022 and EUR 4
839 thousand in 2023.
21 Cash and cash equivalents
EUR thousand
31.12.2021 31.12.2020
Cash at bank and in hand 25 318 26 164
Cash and cash equivalents 25 318 26 164
22 Equity
The total shareholders’ equity consists of the share capital, the invested un-
restricted equity reserve, translation differences and accumulated losses.
Shares and share capital
The parent company has one share class, and each share has equal right to di-
vidend. 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 total number of shares was 24 034 856 on 31 December 2021 and 24 007
061 on 31 December 2020. In the financial year 2021 and 2020, the share capital
of the Company amounted to EUR 80 000.
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 60
Invested unrestricted equity reserve
EUR thousand
1.1.2020 340 173
Return of capital -22 807
31.12.2020 317 367
Return of capital -22 833
31.12.2021 294 533
On 12 April 2021, the Company paid EUR 22 833 thousand from the invested un-
restricted equity reserve as a capital return based on the resolution of the Annual
General Meeting held on 29 March 2021.
Retained earnings
EUR thousand
1.1.2020 -29 985
Management’s incentive plan 193
Profit for the financial year 19 448
Other comprehensive income for the period -232
31.12.2020 -10 575
Management’s incentive plan -612
Profit for the financial year 25 871
Other comprehensive income for the period 3 434
31.12.2021 18 118
Long-term incentive plans for the management are described in note 28 Related
parties. An accrued expense of EUR 408 thousand (EUR 660 thousand) for the fi
-
nancial year 2020 has been recognised as an increase in equity. In addition, equity
has been adjusted with the amount of awards paid, EUR 1 019 thousand (EUR 466
thousand), previously recognised as expense.
23 Post-employment obligations
As a result of defined benefit pension plans, the Group is exposed to plan asset
volatility risk, life expectancy risk and inflation risk materialising in the rate of salary
increases. Post-employment obligations are described in the accounting policies
of the consolidated financial statements under item 2.15 Employee benefits.
Liabilities related to defined benefit obligations
EUR thousand
31.12.2021 31.12.2020
Current value of defined benefit obligations 25 341 30 250
Fair value of plan assets -21 661 -21 785
Net amount of current value of obligations and fair value of
assets
3 679 8 465
Effect of minimum funding requirement / asset item - -
Recognised net obligation 3 679 8 465
Change in current value of defined benefit
obligations
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Current value of defined benefit obligations on 1 January 30 250 28 073
Acquired through business combinations - -
Benefits paid -676 -691
Current service cost 290 294
Interest expenses recognised in profit or loss 357 416
Actuarial gains (-) and losses (+):
Changes in financial assumptions -4 082 1 565
Experience adjustments -205 -605
Translation differences -593 1 198
Current value of defined benefit obligations on 31 December 25 341 30 250
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 61
Change in fair value of plan assets
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Fair value of plan assets on 1 January 21 785 20 158
Acquired through business combinations - -
Employer contributions 665 479
Interest income recognised in profit or loss 257 299
Income on plan assets excluding items included in interest
income
92 677
Benefits paid -676 -691
Translation differences -463 863
Fair value of plan assets on 31 December 21 661 21 785
Plan assets consist of the following items:
1.1.–31.12.2021 1.1.–31.12.2020
Shares 15,0 % 13,0 %
Debt investments
Government bonds 17,0 % 22,0 %
Mortgage loans 6,0 % 9,0 %
Corporate bonds 28,0 % 2 7,0 %
Real estate 12,0 % 17,0 %
Other investments 22,0 % 12,0 %
Total 100,0 % 100,0 %
Items recognised in profit or loss
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Current service cost -290 -294
Interest expenses/income -100 -117
Net expense recognised in profit or loss -389 -411
Items recognised in other comprehensive income
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Remeasurements
Actuarial gains (-) and losses (+) -4 287 960
Income on plan assets excluding items included in interest
income
-92 -677
Net amount recognised in other comprehensive income -4 379 283
Actuarial assumptions and sensitivity analysis
2021 2020
Discount rate 1,8 % 1,2 %
Salary increase rate 2,0 % 2,0 %
Inflation 2,0 % 2,0 %
Lifetime DUS 21 DUS 14
Sensitivity analysis of the effect of changes
EUR thousand
2021 2020
Discount rate, +1,0 % -4 641 -6 153
Discount rate, -1,0 % 6 384 8 195
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 62
24 Financial liabilities
EUR thousand
31.12.2021 31.12.2020
Non-current
Loans from financial institutions 160 283 161 535
Lease liabilities 4 264 5 425
Total non-current financial liabilities 164 547 166 960
Current
Lease liabilities 2 335 2 241
Total current financial liabilities 2 335 2 241
Total financial liabilities 166 882 169 201
Of the loans from financial institutions, EUR 95,7 million (EUR 95,6 million) were
EUR-denominated and EUR 64,5 million (EUR 65,9 million) were SEK-denominated
on 31 December 2021.
Loans from financial institutions
Enento Group has a loan agreement on a total of EUR 180 million of financing with
Danske Bank A/S, OP Corporate Bank Plc and Nordea Bank Plc.
The unsecured financing agreement consists of a term loan of EUR 160 million
and a revolving credit facility of EUR 20 million. The company drew down the term
loan on 25 October 2018, partially in euro and partially in Swedish krona in accor-
dance with the terms of the loan agreement. The loans mature in October 2023.
The Group’s revolving credit facility was unused on 31 December 2021 (EUR 0).
To facilitate efficient cash management in the Group, a multi-currency cash
pool arrangement has been implemented with Danske Bank A/S. An overdraft of
EUR 15,0 million is included in the cash pool arrangement. The overdraft had not
been utilised on 31 December 2021.
The Group’s management has determined that there is no essential difference
between carrying value and fair value because 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.
Derivatives – non-hedge accounting
Enento Group has no outstanding foreign currency forward contacts on 31 De-
cember 2021. On 31 December 2020, Enento Group had one outstanding forward
exchange contract with a nominal value of EUR 11,7 million and the change in its
fair value was EUR -217 thousand.
25 Deferred tax assets and liabilities
The net changes in deferred income taxes were as follows:
EUR thousand
2021 2020
1.1. -22 727 -23 397
Charged to balance sheet - -
Charged to income statement 463 1 463
Recognised in comprehensive income -902 58
Translation differences 455 -852
31.12. -22 712 -22 727
The Group’s deferred tax receivables amounted to EUR 0 (EUR 486 thousand) and
deferred tax liabilities amounted to EUR 22 712 thousand (EUR 23 213 thousand) at
the end of the financial year. The movement in deferred income tax assets and
liabilities during the year, without taking into consideration the offsetting of tax
balances, is as follows:
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 63
The Group has recognised deferred tax assets amounting to EUR 0 thousand (EUR
650 thousand) from non-deductible net interest expenses, which amounted to
EUR 0 thousand (EUR 3 251 thousand) on 31 December 2021.
Deferred tax assets
EUR thousand
Financial
instruments
Defined benefit
pension plans
Revenue
recognition
Non-deductible
net interest
expense
Management’s
incentive
plan Other Total
1.1.2020 124 1 631 192 1 109 198 23 3 276
Charged to balance sheet - - - - - - -
Charged to income statement 56 -14 52 -458 39 12 -313
Recognised in comprehensive income - 58 - - - - 58
Translation differences - 69 -8 - - -2 59
31.12.2020 180 1 744 236 650 237 33 3 080
Charged to balance sheet - - - - - - -
Charged to income statement -76 -57 -87 -650 -115 64 -920
Recognised in comprehensive income - -902 - - - - -902
Translation differences - -27 -4 - - -1 -32
31.12.2021 104 758 145 - 122 96 1 225
Deferred tax liabilities
EUR thousand
Financial
instruments
Allocation of
acquisitions
Capitalised
development
costs
Depreciation
difference Other Total
1.1.2020 105 22 337 4 016 194 21 26 673
Charged to balance sheet - 0 - - 0 0
Charged to income statement -27 -2 610 810 21 30 -1 776
Translation differences 0 711 202 0 -3 910
31.12.2020 78 20 439 5 027 215 49 25 807
Charged to balance sheet - 0 - - 0 0
Charged to income statement -27 -2 606 1 255 20 -25 -1 383
Translation differences 0 -366 -119 - -1 -487
31.12.2021 50 17 467 6 162 235 22 23 937
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 64
26 Other current liabilities
EUR thousand
31.12.2021 31.12.2020
Advances received from unrecognised net sales 10 707 11 611
Advances received from long-term customer projects 31 463
Total 10 738 12 075
EUR thousand
31.12.2021 31.12.2020
Accounts payable 8 040 7 906
Other liabilities 3 371 3 334
Accrued expenses 11 904 13 048
Total 23 315 24 288
Accrued liabilities consist mainly of accruals of personnel expenses.
27 Contingent liabilities
Own guarantees
EUR thousand
31.12.2021 31.12.2020
Pledges 337 116
Minimum rent commitments for short-term lease agreements
EUR thousand
31.12.2021 31.12.2020
No later than 1 year 13 14
Total 13 14
The minimum rent commitments for short-term lease agreements are presented
for leases with a term of 12 months or less.
Low value lease agreement commitments
EUR thousand
31.12.2021 31.12.2020
Due within the next financial year 332 211
Due later 379 126
Total 711 338
The minimum lease payments for the Group’s office equipment lease agreements
are presented for the financial year 2021 as low value lease commitments.
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 65
1.1.–31.12.2020
EUR thousand
Sales of goods
and services
Purchases of
goods and
services
Finance
income and
expenses
Shareholders having a signifi-
cant influence over the Group
11 753 -356 -681
Associated company - - -
Total 11 753 -356 -681
31.12.2020
EUR thousand
Receivables Liabilities
Shareholders having a signifi-
cant influence over the Group
1 301 54 065
Associated company - -
Total 1 301 54 065
Liabilities to related parties include a loan on market terms and conditions and
loan-related accrued interest with Nordea Bank Oyj. The loan is on market terms
and is described in more detail in note 24 Loans from financial institutions.
Transactions with related parties have been carried out on an arm’s length
basis. During the financial year, the Group’s related party transactions with key
persons in management and members of the Board of Directors consisted of
normal salaries and fees.
Long-term incentive plans for the management
Long-term incentive plan for the management 2018–2020
The target group of the share-based long-term incentive plan decided on by
the Board of Directors in August 2018 included 23 key persons of Enento Group,
including the members of the Executive Team. In order to participate in the plan
and receive an award, the participant must have purchased Enento Group Plc’s
shares or allocated previously held Enento shares to the programme in the num-
ber determined by the Board of Directors.
The award for the commitment period depended on the continuation of
employment or service at the time of payment of the award and meeting of the
shareholding requirement. Furthermore, the award for the performance period
was based on total shareholder return (TSR) on Enento Group Plc share and the
Group’s adjusted EBITDA in 2020.
In the directed share issue, 27 795 new Enento Group Plc shares were issued wi-
thout consideration to the key employees participating in the Performance Period
2018-2020. The resolution on the directed share issue was based on the authori-
sation granted to the Board of Directors by the Annual General Meeting of Sha-
reholders held on 12 June 2020. The new shares have been entered into the Trade
Register on 1 March 2021 and trading of new shares alongside the existing shares
commenced on 2 March 2021. For the review period, an accrued expense of EUR
269 thousand (EUR 401 thousand) has been recognised in personnel expenses.
28 Related parties
The related parties of the Group consist of group entities, associated company
as mentioned in note 29 and shareholders exercising significant influence over the
Company. The shareholders who have had the right to nominate a representative
in the Company’s Board of Directors are considered having significant influence
in the Company. In addition, the key management persons, including the Board
of Directors, CEO and Executive Team, are related parties of the Group, as well as
their close family members and companies, where the above mentioned persons
exercise controlling power.
The following transactions were carried out with related parties:
1.1.–31.12.2021
EUR thousand
Sales of goods
and services
Purchases of
goods and
services
Finance
income and
expenses
Shareholders having a signifi-
cant influence over the Group
12 254 -437 -681
Associated company 24 -3 -
Total 12 278 -441 -681
31.12.2021
EUR thousand
Receivables Liabilities
Shareholders having a signifi-
cant influence over the Group
1 215 53 652
Associated company 24 4
Total 1 239 53 656
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 66
Matching share plan 2018-2020
Original allocation date 21 September 2018
Performance period begins 1 September 2018
Performance period ends 31 December 2020
Vesting conditions
Shareholding,
employment
until payment
Vesting date 31 May 2021
Maximum duration, years 2,7
Time to maturity, years 0,0
Persons at the end of the financial year 0
Implementation method Shares
Changes in the plan during the period
Number
Performance Based Share Plan
2018—2020
1.1.2021
Outstanding at beginning of period 228 600
Changes during period
Granted -
Forfeited 169 119
Shares awarded 59 481
31.12.2021
Outstanding at end of period -
Long-term incentive plan for the management 2020–2022
In December 2019, the Board of Directors decided on a new share-based long-
term incentive plan for key persons of Enento Group. The target group of the plan
includes 24 key persons, including the members of the Executive Team.
The incentive plan consists of one performance period covering the calen-
dar years 2020–2022. The potential rewards from the plan will be paid partly in
Enento Group Plc shares and partly in cash after the end of the performance
period. The potential rewards are based on the achievement of targets set for
the total shareholder return (TSR) of the Enento Group Plc share and the Group’s
cumulative adjusted EBITDA in 2020–2022. The rewards are also dependent on
the continuation of the participants’ employment or service contracts at the time
of payment.
Rewards payable under the plan will not total more than the value of appro-
ximately 60 500 Enento Group Plc shares, including the amount paid in cash. The
maximum reward is defined as the gross amount of shares before the deduction of
the applicable taxes. The accrued expense adjustment of EUR -74 thousand (EUR
258 thousand) for the financial year has been recognised in personnel expenses.
Performance Based Share Plan
2020—2022
Original allocation date 25.2.2020
Performance period begins 1.1.2020
Performance period ends 31.12.2022
Vesting conditions
Shareholding,
employment
until payment
Vesting date 31.5.2023
Maximum duration, years 3,4
Time to maturity, years 1,4
Persons at the end of the financial year 24
Implementation method Shares
Changes in the plan during the period
Number
Performance Based Share Plan
2020—2022
1.1.2021
Outstanding at beginning of period 85 500
Changes during period
Granted -
Forfeited 25 000
31.12.2021
Outstanding at end of period 60 500
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 67
Long-term incentive plan for the management 2021–2023
In December 2020, the Board of Directors decided on a new share-based incen-
tive plan for key persons. The target group of the plan includes 29 key persons,
including the members of the Executive Team. This performance-based share in-
centive plan is based on the corresponding plan launched the previous year. The
Group intends to launch a new long-term incentive plan annually, but the start of
each individual plan is subject to a separate decision by the Board of Directors.
The incentive plan consists of one performance period covering the calendar years
2021–2023. The potential rewards from the plan will be paid partly in Enento Group
shares and partly in cash after the end of the performance period. The purpose of
the cash payment is to cover taxes and tax-like charges incurred by the participant
for the reward. As a rule, no reward will be paid if the employment or service contract
terminates before the payment of the reward.
The plan offers the participants the opportunity to earn rewards if the performan
-
ce targets set by the Board of Directors are achieved. The performance targets are
based on Enento Group’s Total Shareholder Return (TSR) for 2021–2023 and Enento
Group’s cumulative adjusted EBITDA for 2021–2023. If the performance targets are
met, the rewards will be payable in the first half of 2024.
Rewards payable under the plan will not total more than the value of approxima
-
tely 68 000 Enento Group Plc shares, including also the amount paid in cash. For the
review period, an accrued expense of EUR 213 thousand (EUR 0) has been recognised
in personnel expenses.
Performance Based Share Plan
2021—2023
Original allocation date 4.5.2021
Performance period begins 1.1.2021
Performance period ends 31.12.2023
Vesting conditions
Shareholding,
employment
until payment
Vesting date 31.5.2024
Maximum duration, years 3,4
Time to maturity, years 2,4
Persons at the end of the financial year 29
Implementation method Shares
Changes in the plan during the period
Number
Performance Based Share Plan
2021—2023
1.1.2021
Outstanding at beginning of period -
Changes during period
Granted 93 000
Forfeited 25 000
31.12.2021
Outstanding at end of period 68 000
Long-term incentive plan for key personnel 2022–2024
The Board of Directors of Enento Group Plc has resolved to establish a long-term
incentive plan, the Performance Share Plan 2022–2024, for the key employees of
Enento Group Plc and its subsidiaries. The plan is directed to approximately 40
key employees, including the members of the Executive Team. The plan is based
on the similar plan launched last year.
The plan consists of one performance period covering the calendar years 2022–
2024. The potential rewards from the plan will be paid partly in Enento Group Plc
shares and partly in cash after the end of the performance period. The cash propor-
tion is intended to cover taxes and tax-related costs arising from the rewards to the
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 68
participants. As a rule, no reward will be paid if a participant’s employment or service
ends before the reward payment.
The plan offers the participants a possibility to earn reward based on achieving
the required performance levels established for the Enento Group Plc share´s total
shareholder return (TSR) in 2022–2024 and the Group’s cumulative Adjusted EBITDA
in 2022–2024.
A member of the Executive Team must hold all net shares received on the basis of
the plan, until the member’s shareholding in the company in total corresponds to the
value of his or her annual gross salary and until his or her employment or service at
Enento Group continues.
The rewards to be paid from the plan correspond to an approximate maximum
total of 110,000 Enento Group Plc shares, including also the proportion to be paid in
cash.
The remuneration of Board of Directors
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Patrick Lapveteläinen 55 56
Petri Carpén 43 43
Erik Forsberg (starting 29.3.2021) - -
Martin Johansson 42 -
Tiina Kuusisto 40 41
Carl-Magnus Månsson (until 29.3.2021) 42 43
Petri Nikkilä (until 12.6.2020) - 40
Minna Parhiala (starting 12.6.2020) 40 -
Total 262 222
Remuneration of the Executive Team members
(excluding the CEO)
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Salaries and benefits 1 403 1 348
Long-term incentive bonus 1 069 412
Performance-based incentives paid in cash
1
118 201
Termination benefits - -
Stay-on bonus - -
Total 2 590 1 960
Remuneration of the CEO
EUR thousand
1.1.–31.12.2021 1.1.–31.12.2020
Salaries and benefits 267 264
Long-term incentive bonus 331 134
Performance-based incentives paid in cash
1
68 165
Pension costs – defined contribution plans 9 9
Total 675 572
1
The incentives have been reported on a payment basis and paid on the basis of the result for the
previous financial year.
The Group had a supplementary voluntary pension plan for the CEO that was
classified as defined contribution plan and had a cost of EUR 8 500 per year.
The termination period for the CEO’s employment contract has been 6 mon-
ths. In addition, in case of termination of the employment contract, the CEO was
entitled to one-time payment under certain conditions that corresponds to six
months’ salary.
29 Group companies
The following table presents the Group’s subsidiaries and associated companies
as at 31 December 2021. The Group had no joint arrangements as at 31 December
2021. All group companies are related parties of the Group.
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 69
Parent company
Nature of activities Country of incorporation
Enento Group Plc Headquarter activities Finland
Subsidiaries
Group
ownership
(%)
Voting
rights
(%)
Suomen Asiakastieto Oy Operative company Finland 100,0 100,0
Emaileri Oy Operative company Finland 100,0 100,0
UC AB Operative company Sweden 99,9
2
100,0
UC Affärsinformation AB Operative company Sweden 100,0 100,0
Proff AB Operative company Sweden 100,0 100,0
Proff AS Operative company Norway 100,0 100,0
Proff ApS Operative company Denmark 100,0 100,0
Associated companies
Group
ownership
(%)
Voting
rights
(%)
Goava Sales Intelligence AB Sweden 38,3 38,3
1
The incentives have been reported on a payment basis and paid on the basis of the result for the previous
financial year.
2
Enento Group Plc and the sellers of UC shares signed a shareholder agreement concerning the control of
UC’s credit register and credit register information. The company owned jointly by the sellers received, as
part of the transaction, a small number of UC’s B shares, granting their holders certain administrative rights.
The B shares do not entitle to dividends and UC’s result or balance sheet.
30 Events after the reporting date
There are no significant events to be reported after the end of the fiscal year.
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERS
BOARD OF DIRECTOR’S REPORT
2021 Enento Group FINANCIAL REVIEW 70
Parent Company Income Statement (FAS)
EUR
Note 1.1.–31.12.2021 1.1.–31.12.2020
Net sales 2 1 051 389,45 862 305,31
Other operating income 100 000,00 -
Personnel expenses 3 -2 009 545,11 -1 798 733,28
Other operating expenses 4 -1 016 795,24 -3 121 327,62
Operating loss -1 874 950,90 -4 057 755,59
Finance income and expenses
Income from Group undertakings 5 11 839 573,20 11 035 497,60
Other interest and finance income 5 1 638 007,95 62 173,36
Interest expenses and other finance expenses 5 -2 235 004,17 -5 217 488,70
Total finance income and expenses 11 242 576,98 5 880 182,26
Profit (loss) before appropriations and taxes 9 367 626,08 1 822 426,67
Appropriations
Group contributions 6 24 305 384,56 24 662 075,97
Income tax expense 7 -4 366 846,81 -3 151 799,81
Profit for the financial year 29 306 163,84 23 332 702,86
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 71
Parent Company Balance Sheet (FAS)
EUR
Note 31.12.2021 31.12.2020
ASSETS
Non-current assets
Investments 8 548 698 297,87 544 896 936,41
Total non-current assets 548 698 297,87 544 896 936,41
Current assets
Long-term receivables 9 108 595,86 895 542,92
Short-term receivables 10 24 520 805,67 24 866 226,10
Cash in hand and at banks 20 702 554,97 22 076 474,63
Total current assets 45 331 956,50 47 838 243,65
Total assets 594 030 254,37 592 735 180,06
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 72
EUR
Note 31.12.2021 31.12.2020
EQUITY AND LIABILITIES
Shareholders’ equity
Share capital 11 80 000,00 80 000,00
Invested unrestricted equity reserve 11 312 230 106,22 335 063 219,42
Retained profit 11 55 531 408,71 32 198 705,85
Profit for the financial year 29 306 163,84 23 332 702,86
Total equity 397 147 678,77 390 674 628,13
Liabilities
Non-current liabilities
Loans from financial institutions 160 533 837,87 161 923 002,46
Total non-current liabilities 160 533 837,87 161 923 002,46
Current liabilities
Accounts payable 12 77 228,54 69 748,46
Payables to Group companies 12 34 700 550,96 38 585 416,80
Other liabilities 12 43 265,12 250 773,62
Accrued expenses 12 1 527 693,11 1 231 610,59
Total current liabilities 36 348 737,73 40 137 549,47
Total liabilities 196 882 575,60 202 060 551,93
Total equity and liabilities 594 030 254,37 592 735 180,06
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 73
Parent Company Statement Of Cash Flows (FAS)
EUR
Note 1.1.–31.12.2021 1.1.–31.12.2020
Cash flow from operating activities
Loss before appropriations and taxes 9 367 626,08 1 822 426,67
Adjustments:
Finance income and expenses 5 -11 242 576,98 -5 880 182,26
Cash flows before change in working capital -1 874 950,90 -4 057 755,59
Change in working capital:
Increase (-) / decrease (+) in account and other receivables 2 591,21 226 534,68
Increase (+) / decrease (-) in account and other payables -179 313,12 -180 810,43
Change in working capital -176 721,91 45 724,24
Paid interest and other financing expenses 5 -1 777 200,68 -2 300 889,17
Dividends received 5 11 839 573,20 11 035 497,60
Interest and other finance income received 5 20 788,79 26 202,00
Income taxes paid 7 -3 464 289,09 -2 644 908,85
Cash flow from operating activities 4 567 199,41 2 103 870,23
Cash flows from investing activities
Acquisition of subsidiary 8 - -1 597 738,89
Investments in associated companies 8 -3 801 361,46
Cash flows from investing activities -3 801 361,46 -1 597 738,89
Cash flows from financing activities
Proceeds from short-term borrowings -3 968 720,39 8 415 883,77
Group contributions received 6 24 662 075,97 24 566 647,00
Dividends paid and other profit distribution 11 -22 833 113,20 -22 806 707,95
Cash flows from financing activities -2 139 757,62 10 175 822,82
Net increase (+) / decrease (-) in cash and cash equivalents -1 373 919,66 10 681 954,19
Cash and cash equivalents at beginning of the financial year 22 076 474,63 11 394 520,44
Cash and cash equivalents at end of the financial year 20 702 554,97 22 076 474,63
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 74
Notes to the parent company financial statements
1 Accounting principles
Enento Group Plc is a Finnish limited liability company and the parent company of
Enento Group. The Company listed its shares on the main list of Nasdaq Helsinki
Ltd on 31 March 2015.
Enento Group Plc’s financial statements have been prepared in accordance
with the accounting principles based on the Finnish accounting legislation (FAS).
1.1 Valuation principles
Financial instruments
The fees paid on draw-down loans and financial instruments hedging the loans
have been entered in accrued income. These will be discharged as financial ex-
penses on the basis of time in equal proportions. At the time of loan amortisation,
the respective share of the remaining fees in the balance sheet will be entered
as expenses.
Deferred tax assets
Deferred tax assets are calculated on the temporary differences between tax-
ation and the financial statement using the tax rates effective for future years
confirmed on the balance sheet date. The balance sheet includes the deferred
tax assets at their estimate realisable amount.
1.2 Items denominated in foreign currencies
Transactions in foreign currencies are entered at the exchange rates prevailing
at the transaction dates. The unsettled balances on foreign currency receivables
and liabilities are converted into euros at the rates of exchange prevailing at the
end of the financial year.
2 Net sales
Net sales by market area
EUR
1.1.–31.12.2021 1.1.–31.12.2020
Finland 464 696,89 392 243,79
Sweden 530 838,95 432 626,05
Other countries 55 853,61 37 435,47
Total 1 051 389,45 862 305,31
Net sales consist of management fees from Group companies.
3 Personnel expenses
EUR
1.1.–31.12.2021 1.1.–31.12.2020
Salaries and benefits -1 767 528,94 -1 553 136,53
Pension expenses -217 439,79 -215 008,05
Other social security expenses -24 576,38 -30 588,70
Total -2 009 545,11 -1 798 733,28
The pension provision for the personnel is arranged at Elo Mutual Pension Insur-
ance Company.
1.3 Cash pooling arrangement
To facilitate efficient cash management in the Group, Enento Group Plc has imple-
mented a multi-currency cash pool arrangement with Danske Bank A/S. The sub-
sidiaries’ bank accounts in Danske Bank have been included as member accounts
in the arrangement. The positive balances of the subsidiaries’ member accounts
are shown in the balance sheet item “Payables to Group companies” and negative
balances in the balance sheet item “Receivables from Group companies”.
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 75
4 Other operating expenses
5 Finance income and expenses
EUR
1.1.–31.12.2021 1.1.–31.12.2020
Other employment expenses -110 792,27 -41 710,71
Expenses related to premises -49 209,07 -56 377,29
Marketing expenses -118 449,72 -205 519,41
Office expenses -215 721,52 -682 796,95
IT expenses -120 125,49 -138 344,54
Purchased services -311 074,93 -1 900 959,47
Other expenses -91 422,24 -95 619,25
Total -1 016 795,24 -3 121 327,62
EUR
1.1.–31.12.2021 1.1.–31.12.2020
Income from Group undertakings
Dividends 11 839 573,20 11 035 497,60
Other interest and finance income
Interest income
From Group companies 19 708,97 26 122,16
From parties outside the Group 1 079,82 79,84
Other finance income
From parties outside the Group 1 617 219,16 35 971,36
Total finance income 13 477 581,15 11 097 670,96
Interest expenses and other finance expenses
Interest expenses
to Group companies -1 551,26 -
to parties outside the Group -2 002 200,94 -2 232 133,96
Other finance expenses
to parties outside the Group -231 251,97 -2 985 354,74
Total finance expenses -2 235 004,17 -5 217 488,70
Total 11 242 576,98 5 880 182,26
6 Appropriations
EUR
1.1.–31.12.2021 1.1.–31.12.2020
Group contributions received 24 305 384,56 24 662 075,97
Total 24 305 384,56 24 662 075,97
Auditor’s fees
EUR
1.1.–31.12.2021 1.1.–31.12.2020
PricewaterhouseCoopers Oy
Statutory fees -68 000,00 -75 000,00
Tax advisory - -
Other services - -
Total -68 000,00 -75 000,00
Salaries and benefits of the management
EUR
1.1.–31.12.2021 1.1.–31.12.2020
Board members and CEO -927 942,32 -784 836,00
Total -927 942,32 -784 836,00
The salaries and benefits paid to the management are itemised in more detail
in the notes to the consolidated financial statements, in note 28 Related parties.
Number of personnel on average
Employees
1.1.–31.12.2021 1.1.–31.12.2020
Full time 10 11
Part time and temporary 1 1
Total 11 12
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 76
9 Long-term receivables
EUR
31.12.2021 31.12.2020
Deferred tax assets
From non-deductible net interest expenses - 650 266,06
Total deferred tax assets - 650 266,06
Prepaid expenses and accrued income
Financial expenses periodised 108 595,86 245 276,86
Total prepaid expenses and accrued income 108 595,86 245 276,86
Total 108 595,86 895 542,92
8 Investments
EUR
31.12.2021 31.12.2020
Shares in Group companies
Cost at 1.1. 544 896 936,41 543 299 197,52
Additions - 1 597 738,89
Cost at 31.12. 544 896 936,41 544 896 936,41
Shares in associated companies
Cost at 1.1. - -
Disposals 3 801 361,46 -
Cost at 31.12. 3 801 361,46 -
Net book value at 1.1. 544 896 936,41 543 299 197,52
Net book value at 31.12. 548 698 297,87 544 896 936,41
31.12.2021 Ownership
(%)
31.12.2020 Owner-
ship (%)
Group companies
Suomen Asiakastieto Oy, Helsinki 100,00 100,00
Emaileri Oy, Turku 100,00 100,00
UC AB, Stockholm 99,99 99,99
UC Affärsinformation AB, Stockholm 100,00 100,00
Proff AB, Stockholm 100,00 100,00
Proff AS, Oslo 100,00 100,00
Proff ApS, Frederiksberg 100,00 100,00
Associated companies
Goava Sales Intelligence Ab, Stockholm 38,3 -
10 Short-term receivables
EUR
31.12.2021 31.12.2020
Receivables from Group companies
Accounts receivable - 5 820,84
Prepaid expenses and accrued income
Group contribution 24 305 384,56 24 662 075,97
Total receivables from Group companies 24 305 384,56 24 667 896,81
Other receivables 39 656,98 20 756,49
Prepaid expenses and accrued income
Financial expenses periodised 143 256,35 143 146,76
Other periodised expenses 32 507,78 34 426,04
Total prepaid expenses and accrued income 175 764,13 177 572,80
Total 24 520 805,67 24 866 226,10
7 Income tax expenses
EUR
1.1.–31.12.2021 1.1.–31.12.2020
On business operations -3 716 580,75 -2 693 429,55
Change in deferred tax asset -650 266,06 -458 370,26
Total -4 366 846,81 -3 151 799,81
All the group companies have been consolidated to the Parent Company’s con-
solidated financial statements. A specification of the Group companies is inclu-
ded in note 29 to the consolidated financial statements.
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 77
11 Equity
EUR
31.12.2021 31.12.2020
Share capital at 1.1. 80 000,00 80 000,00
Share capital at 31.12. 80 000,00 80 000,00
Total restricted shareholders’ equity 80 000,00 80 000,00
Invested unrestricted equity reserve at 1.1. 335 063 219,42 357 869 927,37
Capital repayment -22 833 113,20 -22 806 707,95
Total invested unrestricted equity reserve at 31.12. 312 230 106,22 335 063 219,42
Retained profit at 1.1. 55 531 408,71 32 198 705,85
Distribution of dividend - -
Total retained profit at 31.12. 55 531 408,71 32 198 705,85
Profit for the financial year 29 306 163,84 23 332 702,86
Total unrestricted shareholders’ equity 397 067 678,77 390 594 628,13
Total equity 397 147 678,77 390 674 628,13
Distributable funds
EUR
31.12.2021 31.12.2020
Invested unrestricted equity reserve 312 230 106,22 335 063 219,42
Retained profit 55 531 408,71 32 198 705,85
Profit for the financial year 29 306 163,84 23 332 702,86
Total 397 067 678,77 390 594 628,13
12 Current liabilities
Payables to Group companies
EUR
31.12.2021 31.12.2020
Accounts payable - 133 516,19
Other liabilities 34 700 550,96 38 451 900,61
Accrued expenses - -
Total 34 700 550,96 38 585 416,80
Other current liabilities
EUR
31.12.2021 31.12.2020
Accrued expenses
Holiday pay liabilities 169 417,93 162 802,86
Other accrued personnel expenses 391 861,48 336 435,37
Interest expenses 353 174,44 243 094,33
Taxes 592 869,69 340 578,03
Other 20 369,57 148 700,00
Total accrued expenses 1 527 693,11 1 231 610,59
Other liabilities
Derivatives payable - 217 370,74
Other 43 265,12 33 402,88
Total other liabilities 43 265,12 250 773,62
Accounts payable 77 228,54 69 748,46
Total other current liabilities 1 648 186,77 1 552 132,67
Total 36 348 737,73 40 137 549,47
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 78
Board’s proposal for the distribution of funds
At the end of the financial year 2021, the distributable funds of the Group’s parent
company amounted to EUR 397 067 678,77, of which the profit for the financial year
was EUR 29 306 163,84. The Board of Directors proposes to the Annual General
Meeting convening on 28 March 2022 that funds amounting to EUR 1,00 per sha-
re, total EUR 24 034 856,00, based on the Company’s registered total number of
shares at the time of the proposal, be distributed for the financial year that ended
on 31 December 2021 as follows:
The equity repayment from the reserve for invested unrestricted shareholders’
equity will be paid to a shareholder registered in the Company’s shareholders’
register held by Euroclear Finland Ltd on the payment record date of 30 March
2022. The Board of Directors proposes that the funds be paid on 11 April 2022.
After the financial year, there are no material changes in the Company’s fi-
nancial position. The Company’s liquidity is good and, based on the Board of
Directors’ view, the proposed distribution of profits does not compromise the
Company’s liquidity.
EUR/share EUR
From the invested unrestricted equity reserve as a
repayment of capital
1,00 24 034 856,00
To be retained in unrestricted equity 373 032 822,77
Total 397 067 678,77
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 79
Signatures to the financial statements
The report of the audit has been submitted today.
Helsinki, 11 February 2022
PricewaterhouseCoopers Oy
Authorised Public Accountants
Helsinki, 11 February 2022
Patrick Lapveteläinen
Chairman of the Board
Martin Johansson
Member of the Board
Tiina Kuusisto
Member of the Board
Erik Forsberg
Member of the Board
Minna Parhiala
Member of the Board
Auditor’s note
Petri Carpén
Member of the Board
Jeanette Jäger
CEO
Martin Grandell
Authorised Public Accountant
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 80
To the Annual General Meeting of Enento Group Oyj
Report on the Audit of the Financial Statements
Opinion
In our opinion
• the consolidated financial statements give a true and fair view of the group’s
financial position and financial performance and cash flows in accordance
with International Financial Reporting Standards (IFRS) as adopted by the EU
• the financial statements give a true and fair view of the parent company’s
financial performance and financial position in accordance with the laws and
regulations governing the preparation of the financial statements in Finland
and comply with statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited
We have audited the financial statements of Enento Group Oyj (business identity
code 2194007-7) for the year ended 31 December 2021. The financial statements
comprise:
• the consolidated statement of financial position, statement of comprehensive
income, statement of changes in equity, statement of cash flows and notes,
including a summary of significant accounting policies
• the parent company’s balance sheet, income statement, statement of cash
flows and notes.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland.
Our responsibilities under good auditing practice are further described in the
Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report.
Auditor’s Report
We believe that the audit evidence we have obtained is sufficient and ap-
propriate to provide a basis for our opinion.
Independence
We are independent of the parent company and of the group companies in ac-
cordance 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.
To the best of our knowledge and belief, the non-audit services that we have
provided to the parent company and to the group companies are in accordance
with the applicable law and regulations in Finland and we have not provided
non-audit services that are prohibited under Article 5(1) of Regulation (EU) No
537/2014. The non-audit services that we have provided are disclosed in note 10
to the Financial Statements.
Our Audit Approach
Overview
• Overall group materiality:
€ 1,6 million, which represents approximately 5% of profit before tax
• The group audit scope:
The group audit scope includes all significant legal entities in Finland and
Nordic countries, covering the vast majority of revenues, assets and liabilities
of the group.
• Goodwill:
Goodwill in Enento Group’s consolidated statement of financial position was
€ 354 621 thousand which is approximately 65% of the total assets of € 543
757 thousand. We have tested the impairment assessment and assessed
the appropriateness of the estimates used by Group’s management in their
impairment assessment.
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 81
• Net sales:
Enento Group’s net sales in the financial year 2021 amounted to € 163 515
thousand. There is a risk in revenue recognition that revenue accounted for
in the financial statements are not real or revenue has been recognised in
incorrect amount or in incorrect accounting period, whether caused by fraud
or error. We have tested revenue recognition principles as well as revenue
transactions in order to respond to risks in revenue recognition.
As part of designing our audit, we determined materiality and assessed the risks
of material misstatement in the financial statements. In particular, we considered
where management made subjective judgements; for example, in respect of sig-
nificant accounting estimates that involved making assumptions and considering
future events that are inherently uncertain.
Materiality
The scope of our audit was influenced by our application of materiality. An audit
is designed to obtain reasonable assurance whether the financial statements are
free from material misstatement. Misstatements may arise due to fraud or error.
They 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.
Based on our professional judgement, we determined certain quantitative
thresholds for materiality, including the overall group materiality for the conso-
lidated financial statements as set out in the table below. These, together with
qualitative considerations, helped us to determine the scope of our audit and the
nature, timing and extent of our audit procedures and to evaluate the effect of
misstatements on the financial statements as a whole.
Overall group materiality
€ 1,6 million (previous year € 1,5 million)
How we determined it
Approximately 5% of profit before taxes
Rationale for the materiality benchmark applied
We chose profit before tax as the benchmark because, in our view, it is the ben-
chmark against which the performance of the group is most commonly measured
by users, and is a generally accepted benchmark. We chose 5% which is within
the range of acceptable quantitative materiality thresholds in auditing standards.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of the group,
the accounting processes and controls, and the industry in which the group ope-
rates.
The group audit scope included the group parent company and all subsidia-
ries to the parent company.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of
most significance in our audit of the financial statements of the current period.
These matters were addressed in the context of our audit of the financial state-
ments as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
As in all of our audits, we also addressed the risk of management override of
internal controls, including among other matters consideration of whether there
was evidence of bias that represented a risk of material misstatement due to
fraud.
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 82
Key audit matter in the audit of the group How our audit addressed the key audit matter
Goodwill Refer to note 15 of the financial statements
The Group’s goodwill amounted to € 354 621 thousand as at 31 December 2021
which is approximately 65% of total assets € 543 757 thousand. Goodwill is material
to the consolidated financial statements. The Group’s management uses significant
judgement when assessing future estimated cash flows.
For the purpose of impairment testing, the recoverable amount of the Group’s
three cash-generating units have been determined based on value-in-use
calculations which require the use of estimates. These calculations use cash flow
projections based on financial estimates approved by the management covering
a five-year period. Cash flows beyond the five-year period are extrapolated using
the estimated growth rates.
Key parameters in the projections are the development of net sales and key cost
items as well as long-term growth rate and discount rate. Management has per-
formed a sensitivity analysis around the key parameters of the goodwill allocated
to each cash generating units in which the combined effect of changes in the
parameters is tested.
Enento Group provides information services. The majority of revenue is transaction
based generated from the delivery of individual pieces or bundles of credit, business
and market information. The information is processed or refined by the Group and
made available to the customers mainly through online facilities.
Revenue is recognised at the point in time when the performance obligation is sat-
isfied by the delivery of information or over time depending on performance obli-
gation to be satisfied. The Group recognises as revenue transaction price to which
Enento Group expects to be entitled in exchange for transferring goods and services
to customer.
There is a risk in revenue recognition that revenue accounted for in the financial
statements are not real or revenue has been recognised in incorrect amount or in
incorrect accounting period, whether caused by fraud or error. The Company aims to
ensure by its internal processes and controls that revenue recognition in the financial
statements is materially correct.
This matter is a significant risk of material misstatement referred to in Article 10(2c)
of Regulation (EU) No 537/2014.
We tested the cash flow estimates prepared by the Group’s management for years
2022-2025 as well as the determination of the discount rate used. We compared
the used cash flow estimates to financial budgets and projections prepared by
the management and approved by the board to verify that cash flow estimates
used in the assessment are not greater than the financial budget. We assessed the
reasonabless and consistency of estimated profitability levels to approved financial
budgets and cash flow estimates. We compared estimated growth rates used in
the cash flow estimates to the Group’s historic growth and tested mathematical ac-
curacy of these cash flow estimates. We assessed appropriateness of the discount
rate used in the calculations and tested the mathematical accuracy of the discount
rate calculations.
We tested the sensitivity analysis prepared by management in order to ascertain
the combined effect of changes in key parameters that would lead to impairment.
We tested the mathematical accuracy of the sensitivity analysis related to the
goodwill impairment assessment.
We assessed and tested the effectiveness of sales process key controls. We also
tested revenue transactions by using computer assisted audit techniques and by
substantive testing procedures in order to respond to risk of fraud in revenue rec-
ognition and to the risk that recognised revenue is not real or has been recognised
incorrectly. We also tested that revenue transactions have been accounted for in the
correct financial period.
We audited journal entries related to revenue. In addition, we have performed
analytical procedures to respond to risk of material misstatement in the financial
statements.
We have no key audit matters to report with respect to our audit of the parent company financial statements.
Net sales Refer to note 6 and to summary of significant accounting policies section 2.18 of the financial statements
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 83
Responsibilities of the Board of Directors and the Managing Director for the
Financial Statements
The Board of Directors and the Managing Director are responsible for the prepa-
ration of consolidated financial statements that give a true and fair view in ac-
cordance 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 Manag-
ing Director are responsible for assessing the parent company’s and the group’s
ability to continue as a going concern, disclosing, as applicable, matters relating
to going concern and using the going concern basis of accounting. The financial
statements are prepared using the going concern basis of accounting unless
there is an intention to liquidate the parent company or the group or to cease
operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial
statements as a whole are free from material misstatement, whether due to fraud
or error, and to issue an auditor’s report that includes our opinion. Reasonable
assurance is a high level of assurance, but is not a guarantee that an audit con-
ducted in accordance with good auditing practice will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be
expected to influence the economic decisions of users taken on the basis of these
financial statements.
As part of an audit in accordance with good auditing practice, we exercise
professional judgment and maintain professional skepticism throughout the audit.
We also:
• Identify and assess the risks of material misstatement of the financial
statements, whether due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain audit evidence that is
sufficient and appropriate to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control.
• Obtain an understanding of internal control relevant to the audit in order to
design audit procedures that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the effectiveness of the parent
company’s or the group’s internal control.
• Evaluate the appropriateness of accounting policies used and the
reasonableness of accounting estimates and related disclosures made by
management.
• Conclude on the appropriateness of the Board of Directors’ and the Managing
Director’s use of the going concern basis of accounting and based on the
audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the parent company’s
or the group’s ability to continue as a going concern. If we conclude that
a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are
based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause the parent company or the
group to cease to continue as a going concern.
• Evaluate the overall presentation, structure and content of the financial
statements, including the disclosures, and whether the financial statements
represent the underlying transactions and events so that the financial
statements give a true and fair view.
• Obtain sufficient appropriate audit evidence regarding the financial
information of the entities or business activities within the group to express an
opinion on the consolidated financial statements. We are responsible for the
direction, supervision and performance of the group audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other
matters, the planned scope and timing of the audit and significant audit findings,
including any significant deficiencies in internal control that we identify during our
audit.
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 84
We also provide those charged with governance with a statement that we
have complied with relevant ethical requirements regarding independence, and
to communicate with them all relationships and other matters that may reason-
ably be thought to bear on our independence, and where applicable, related
safeguards.
From the matters communicated with those charged with governance, we de-
termine those matters that were of most significance in the audit of the financial
statements of the current period and are therefore the key audit matters. We
describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
Other Reporting Requirements
Appointment
We have been acting as auditors appointed by the annual general meeting since
5.5.2008. Our appointment represents a total period of uninterrupted engage-
ment of 14 years. Authorised Public Accountant (KHT) Martin Grandell has acted as
the responsible auditor since 30.3.2017, which represents a total period of uninter-
rupted engagement of 5 years. Enento Group Oyj became a public interest entity
on 31.3.2015 as a result of the initial public offering.
Other Information
The Board of Directors and the Managing Director are responsible for the other
information. The other information comprises the report of the Board of Directors
and the information included in the Annual Report, but does not include the fi-
nancial 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 wheth-
er the other information is materially inconsistent with the financial statements
or our knowledge obtained in the audit, or otherwise appears to be materially
misstated. With respect to the report of the Board of Directors, our responsibility
also includes considering whether the report of the Board of Directors has been
prepared in accordance with the applicable laws and regulations.
In our opinion
• the information in the report of the Board of Directors is consistent with the
information in the financial statements
• 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 obtain-
ed 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 11 February 2022
PricewaterhouseCoopers Oy
Authorised Public Accountants
Martin Grandell
Authorised Public Accountant (KHT)
CORPORATE
GOVERNANCE STATEMENT
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
2021 Enento Group FINANCIAL REVIEW 85
Corporate Governance Statement 2021
Enento Group Plc (the “Company” or “Enento”) is a Finnish public limited liability
company. The parent company of the Group is Enento Group Plc, the domicile
is Helsinki, Finland. The shares of the Company are listed on Nasdaq Helsinki Ltd
starting from 31 March 2015.
The Company’s governance is subject to the Finnish Companies Act, the Finn-
ish Securities Markets Act, the Accounting Act, the rules of Nasdaq Helsinki Ltd as
well as the Company’s Articles of Association. In addition, Enento complies fully
with the Finnish Corporate Governance Code issued by the Securities Market As-
sociation in 2020 (the “CG Code”). The CG Code is available at www.cgfinland.fi.
This Company’s Corporate Governance Statement is published separately
from the Board of Directors’ report.
The Company’s governance is organised through the General Meeting, the
Board of Directors and the Chief Executive Officer. Further, the Company has an
Executive Team led by the Chief Executive Officer.
General Meeting
The General Meeting is Enento’s highest decision-making body, which normally
convenes once a year. Its tasks and procedures are defined in the Finnish Com-
panies’ Act and the Company’s Articles of Association. Certain important matters,
such as amending the Articles of Association, approval of the financial state-
ments, approval of the dividend, election of the members of the Board of Direc-
tors and the auditors fall within the sole jurisdiction of the General Meeting.
The General Meeting is convened by the Board of Directors. The Annual Gen-
eral Meeting shall be held within six (6) months of the end of the financial year.
An Extraordinary General Meeting shall be held whenever the Board of Directors
deems necessary, the auditor of the Company or shareholders with at least 10 %
of the shares so demand in writing in order to deal with a given matter, or if this is
otherwise required by law.
The General Meeting handles the matters presented on the agenda by the
Board of Directors. According to the Finnish Companies Act, a shareholder may
also request that his/her proposal be handled at the next General Meeting. Such
a request shall be made in writing to the Company’s Board of Directors at the
latest on the date specified by the Company on its website. This date shall be
published no later than by the end of the financial period preceding the general
meeting. The request is always deemed to be on time, if the Board of Directors
has been notified of the request no later than four (4) weeks before the delivery of
the notice of the General Meeting.
According to the Company’s Articles of Association, notices of the Gener-
al Meetings shall be published on the Company’s website no more than three
months before the record date pursuant to the Limited Liability Companies Act
(eight working days before the General Meeting) and at the latest three weeks
before the General Meeting, however, always at least nine days before the said
record date. In addition, the Board of Directors may decide to publish the notice
in full or in part in an alternative manner as it deems appropriate. The notice shall
contain information on the Member of the Board of Directors, their remuneration,
the matters to be handled at the General Meeting and other information required
under the Companies Act and the CG Code.
The notice of the General Meeting, documents to be submitted to the Gen-
eral Meeting (e.g. financial statements, report by the Board of Directors, auditor’s
report) and the resolution proposals to the General Meeting are made available
on the Company’s website at least three (3) weeks before the General Meeting.
The minutes of the General Meeting are published on the Company’s website
within two (2) weeks after the General Meeting. In addition, the decisions of the
General Meeting are also published by means of a stock exchange release imme-
diately after the General Meeting. The documents related to the General Meeting
are available on the Company’s website at least for a period of three (3) months
after the General Meeting.
Shareholders may attend a General Meeting either in person or by proxy. No-
tification regarding the attendance to a meeting must be made by the date
mentioned in the notice to the General Meeting.
2021 Enento Group FINANCIAL REVIEW 86
SHARES AND SHAREHOLDERSBOARD OF DIRECTOR’S REPORT
CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
Only shareholders, who are registered in Enento’s shareholders’ register main-
tained by Euroclear Finland Ltd on the record date (i.e. eight (8) working days be-
fore the General Meeting) are entitled to attend a General Meeting. Holders of
nominee registered shares may be registered temporarily in said shareholders’ reg-
ister and therefore, they are advised to request from their custodian banks nec-
essary instructions regarding such temporary registration and the issuing of proxy
documents. A proxy representative shall produce a dated proxy document or oth-
erwise in a reliable manner demonstrate his/her right to represent the shareholder.
The Board of Directors may decide that the shareholders may participate in
the General Meeting by post or telecommunications or by other technical means.
Enento has one series of shares. Each share has one vote in all matters dealt
with by a General Meeting. A shareholder shall have the right to vote at the Gen-
eral Meeting, if he/she has registered to participate in the meeting by the date
specified in the notice to the General Meeting, which date shall not be earlier
than ten (10) days before the meeting. A shareholder may at the General Meeting
vote with different shares in a different manner and a shareholder may also vote
with only part of his/her shares. The Articles of Association of Enento include no
redemption clauses or voting limitations.
Most resolutions by the General Meeting require a simple majority of the votes
cast at the meeting. In an election, the person receiving the highest number of
votes shall be deemed elected. The General Meeting may, however, prior to an
election, decide that to be elected, a person shall receive more than half of the
votes cast. However, there are several matters, which according to the Companies
Act require a two-third (2/3) majority of the votes cast and of the shares repre-
sented at the meeting.
All Members of the Board of Directors, the auditor and CEO shall attend the
General Meeting.
The Annual General Meeting was held on 29 March 2021. When arranging the
meeting, Enento followed temporary changes in Finnish Company Act made for
COVID-19 pandemic which allowed the meeting to be arranged without share-
holders’ presence.
Shareholders’ Nomination Board
Based on the proposal by the Board of Directors, the sole shareholder of the
Company resolved on 10 March 2015 to establish a Shareholders’ Nomination Bo
-
ard for an indefinite period to prepare proposals to the Annual General Meeting
for the election and remuneration of the members of the Board of Directors and
the remuneration of the Board Committees and the Nomination Board. According
to the Charter of the Shareholders’ Nomination Board, it shall comprise repre-
sentatives of the Company’s three largest shareholders who, on 30 September
preceding the next Annual General Meeting, hold the largest number of votes
calculated of all shares in the Company and, in addition, of the Chairperson of
the Board of Directors as expert member.
The right to nominate the shareholder representatives lies with those three
shareholders whose share of all the voting rights in the Company is on 30 Sep-
tember preceding the next Annual General Meeting the largest on the basis of
the shareholders’ register of the Company held by Euroclear Finland Ltd. However,
holdings by a shareholder who, under the Finnish Securities Market Act, has the
obligation to disclose its shareholdings (flagging obligation) that are divided into
several funds or registers, will be summed up when calculating the share of all the
voting rights, provided that such shareholder presents a written request to that
effect to the Chairperson of the Company’s Board of Directors no later than on
29 September preceding the next Annual General Meeting.
The aforementioned shareholders appoint, in accordance with the Charter
of the Nomination Board, from the request of the Chairperson of the Company’s
Board of Directors their representatives to the Nomination Board after 30 Sep-
tember.
Shareholders’ Nomination Board submits its proposal to the Board of Directors
of the Company at the latest on 31 January preceding the next Annual General
Meeting. Shareholders’ Nomination Board reviews its performance and proce-
dures once a year and gives out a report of its actions annually. The report is
published in the Corporate Governance Statement.
Principles concerning the diversity of the Board of Directors
The Company has defined the principles concerning the diversity of the Board of
Directors in the following way:
In Enento Group Plc, the proposal concerning the composition of the Board of
Directors is prepared and made to the Annual general Meeting by the Sharehold-
ers’ Nomination Board, which consists of the representatives of the Company’s
three largest shareholders and of the chairperson of the Board of Directors and
2021 Enento Group FINANCIAL REVIEW 87
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CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
a representative nominated by the Board of Directors amongst them as expert
members. When making their proposal for the composition of the Board of Direc-
tors, the Shareholders’ Nomination Board applies these diversity principles defined
by the Company or the assessment of diversity.
Diversity of the Board of Directors supports the development of the Company’s
business and the achievement of strategic objectives as well as the promoting of
customer insight. The complementing expertise of the members and experience in
the lines of business essential for the Company (financing, commerce, information
technology) are considered important. From the point of view of diversity, expe-
rience in international operational environment and international representation
are considered essential. The objective is that both genders be represented in the
Board of Directors. Long-term needs and adequate turnover shall be taken into
account when electing the members of the Board of Directors.
Realisation of diversity of the Board of Directors
At the moment (2021), the Company’s Board of Directors consists of six members,
two of whom are foreign nationals. The members are experienced in Board duties
in various types of companies. Of the members of the Board of Directors, one
have acted in the Board of Directors of the Company or its subsidiary already
before the Company’s listing in 2015; one person became members of the Bo
-
ard of Directors in connection with the listing or were nominated in the general
meeting in 2016; and one person became members of the Board of Directors in
connection with the completion of the acquisition of UC AB in 2018. One person
have been nominated by the general meeting in2019, one in 2020 and one in 2021.
Both genders are represented in the Company’s Board of Directors.
These principles and the realisation of diversity are presented as part of the
Company’s corporate governance.
Report of the actions of the Shareholders’ Nomination Board in 2021
General
The Company’s sole shareholder (before the Company’s listing on the stock
exchange) decided on 10 March 2015 to found the Shareholders’ Nomination Bo-
ard to prepare the proposals to the Annual General Meeting for the selection and
remuneration of Board members and the remuneration of the Board committees
and the Nomination Board. The term of the Nomination Board is until next Annual
General Meeting.
The three largest shareholders according to the share register as at 30 Sep-
tember 2020 were Sampo Plc, Skandinaviska Enskilda Banken Ab (publ.) and Nor-
dea Bank Abp.
The companies appointed Petri Niemisvirta (Sampo Plc), Hugo Preutz (Nordea
Bank AB (publ)) and Mats Torstendahl (Skandinaviska Enskilda Banken AB (publ))
as members of the Nomination Board. Patrick Lapveteläinen is a member of the
Nomination Board as the Chairman of the Board of Directors .
Personal details on the Shareholders Nomination Board members are set forth
in the table below:
Name Occupation
Niemisvirta Petri Mandatum Life Insurance, CEO
Preutz Hugo Nordea Bank AB (publ.), Head of Group Mergers & Acquisitions
Torstendahl Mats
Skandinaviska Enskilda Banken AB (publ), Head of Corporate & Private
Customers
The Board elected Petri Niemisvirta as Chairman. The Board assembled one time
in January 2022. All members of the Nomination Board participated to this mee-
ting.
Shareholders’ Nomination Board’s proposal to Annual General Meeting
2022
The Nomination Board proposes that the number of Board members be six (6).
The Board proposes that Petri Carpén, Patrick Lapveteläinen, Martin Johans-
son, Minna Parhiala and Tiina Kuusisto and Erik Forsberg be reelected as members
of the Board of Directors.
The Board proposes that the remuneration payable to the Board of Directors
Chairperson be EUR 53 000 per year and to other Board members EUR 37 500 per
year. An attendance fee of 500 euros shall be paid per Board of Directors meeting.
The chairpersons of Board of Directors committees shall be paid an atten-
dance fee of EUR 500 and the committee members shall be paid an attendance
fee of EUR 400 per committee meeting.
2021 Enento Group FINANCIAL REVIEW 88
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FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
The Board proposes that no remuneration will be paid to the Nomination
Board members.
The Board proposes that reasonable travelling expenses for the attendance
to the meetings shall be paid to members.
The Board proposes that the aforementioned proposed remuneration will be-
come effective immediately after the next Annual General Meeting of the Company.
Board of Directors
The Board’s role is to manage the Company’s business in the best possible way
and in their work protect the interests of the Company and its shareholders. In
accordance with the Articles of Association of Enento, the Board of Directors shall
consist of a minimum of four (4) and a maximum of eight (8) members elected by
the General Meeting. The members of the Board of Directors shall be appointed
for one year at a time. The Shareholders’ Nomination Board prepares a proposal
on the composition of the Board to the Annual General Meeting for its decision.
Enento’s Board members shall be professionally competent and as a group
have sufficient knowledge of and competence, inter alia, in the Company’s field
of business and markets. A new Member of the Board must have induction of the
activities. The majority of the directors shall be independent of the Company. In
addition, at least two of the directors, representing the aforementioned majority,
shall be independent of significant shareholders of the Company. Independency
from the Company is determined based on the fact whether a person has been
employed by any of the Enento Group companies within the last 5 years. Inde-
pendency from the major shareholders is determined for example based on the
fact whether a person has either directly or through controlling interest company
owned Enento’s shares during the last year or whether the or person has an em-
ployment relationship or service contract with significant shareholder.
The Board has general authority to decide on and act in any matters not re-
served by law or under the provisions of the Articles of Association to any other
governing body of the Company. The Board of Directors is responsible for the
management of the Company and its business operations. Additionally, the Board
is responsible for the appropriate arrangement of the bookkeeping and financial
administration.
The operating principles and main duties of the Board of Directors have been
defined in the Charter for the Board of Directors and include, among other things, to:
• establish business objectives and strategy,
• appoint, continuously evaluate and, if required, remove the CEO from office,
• ensure that there are effective systems in place for monitoring and controlling
the Group’s operations and financial position compared to its stated
objectives,
• ensure that there is satisfactory control of the Company’s compliance with
laws and other regulations applicable to the Company’s operations, and
• ensure that the Company’s external disclosure of information is marked by
openness and is correct, timely, relevant and reliable, by way of, among other
things, adopting a disclosure policy.
By the resolution of Annual General Meeting on 29 March 2021, Petri Carpén, Mar-
tin Johansson, Tiina Kuusisto, Patrick Lapveteläinen, Minna Parhiala and Erik Fors-
berg were appointed as members to the Board of Directors.
Independence of the Board of Directors
Under the Finnish Corporate Governance Code 2020, the majority of directors
shall be independent of the Company. In addition, at least two directors of this
majority shall be independent of the Company’s major shareholders. The Board
shall evaluate the independence of directors and report which directors it de-
termines to be independent of the Company and which directors it determines
to be independent of major shareholders.
Based on an evaluation by the Board of Directors pursuant to the Finnish Cor-
porate Governance Code, all members of the Company’s new Board of Directors
are considered to be independent of the Company. In addition, all members of
the Board, except for Patrick Lapveteläinen and Martin Johansson who have em-
ployment relationship with a major shareholder, are independent of the significant
shareholders. Patrick Lapveteläinen and Martin Johansson are not independent
of the company’s significant shareholders as they have employment relationships
with significant shareholders.
The Company is in compliance with recommendation 10 of the Corporate Gov-
ernance Code.
2021 Enento Group FINANCIAL REVIEW 89
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CONSOLIDATED
FINANCIAL STATEMENTS
PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
Name Year of birth Position Education Occupation Positions of trust
Carpén Petri 1958
Board member
(from 22 December 2014)
Master’s Degree in Law (LL.M.) Director of Nets Oy –
Johansson Martin 1962
Board member
(from 29 June 2018)
Master’s Degree in Science
(Econ.)
Senior Advisor, Skandina-
viska Enskilda Banken AB
(publ.)
Chairman of the Board of Directors: Repono Holding AB,
Försäkrings AB Suecia, Försäkringsaktiebolaget Skandinaviska
Enskilda Captive
Member of the Board of Directors of several other companies
belonging to the SEB Group
Kuusisto Tiina 1968
Board member
(from 28 March 2019)
Master’s Degree in Science
(Econ.)
Director (Chief Customer
Officer) of Kojamo Plc
–
Lapveteläinen Patrick 1966
Chairman
(from 1 April 2016)
Master’s Degree in Science
(Econ.)
Chief Investment Officer of
Sampo Group
Chairman of the Board of Directors: Mandatum Life Insurance
Company Limited, Mandatum Holding Oy, Mandatum Asset
Management Oy, Leviathan Oy
Member of the Board of Directors: If P&C Insurance Holding Ltd,
If P&C Insurance Ltd (publ.), Saxo Bank A/SLtd, Saxo Bank A/S
Månsson Carl-Magnus 1966
Board member
(from 1 April 2016 until 29
March 2021)
Master’s Degree in Science
(Eng.)
CEO of Iver Group
Chairman of the Board in several companies in Iver Group
Member of the Board: Kindred Group Plc
Deputy member of the Board: Jarlelyd Consulting AB
Parhiala Minna 1967
Board member
(from 12 June 2020)
Master of Laws
Head of Business Area, Nor-
dea Personal Banking
Member of the Board of Directors: Limelight Horses Oy
Forsberg Erik 1971
Board member
(from 29 March 2021)
M.Sc. Business and Admi-
nistration, Stockholm School of
Economics
-
Chairman of the Board: Collectia Group (Care DK Bidco Aps)
Member of the Board: Stillfront Group, Kindred Group and
Deltalite AB
Personal details of the Board members:
2/6 of the Members of the Board are women at the end of year 2021. The age
distribution is 49–64 years. Members present two nationalities, and they have
gained experience from various industries.
The performance of the Board is evaluated annually. In 2021, the Board eval-
uated the importance of the matters handled, time allocation in meetings, the
frequency and length of the meetings, practicalities of the meetings, the material
received by the Board and the material distribution, the culture of the Board,
and the role and actions of the Chairman. Most of the Board meetings were kept
virtually.
Meetings of the Board of Directors are convened by its Chairperson. The Board
of Directors constitutes a quorum when more than half of the members appointed
by the General Meeting are present at the meeting. When votes are cast, the ma-
jority opinion will be the Board’s decision and, in the case of a tie, the Chairperson
will have the casting vote.
The Board of Directors is always obliged to act in the Company’s interests and
in such a way that its acts or measures are not likely to produce unjustified benefit
to any shareholder or other third party at the cost of the Company or another
shareholder.
A Board member is disqualified from participating in the handling of a matter
pertaining to a contract or other transaction between the Board member and the
2021 Enento Group FINANCIAL REVIEW 90
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CORPORATE
GOVERNANCE STATEMENT
Company or of such matter where the member is to derive an essential benefit
and that benefit may be contrary to the interests of the Company. In principle,
a Board member may not participate in the handling of a matter if the Board
member is involved in the matter under assessment in another capacity.
The Board of Directors shall convene as frequently as necessary to discharge
its responsibilities. The Chief Executive Officer ensures that the Board is provided
with sufficient information to assess the operations and financial situation of the
group.
The secretary of the Board of Directors is Legal Councel Juuso Jokela.
Board meetings 2021
The Board of Directors convened altogether 13 times during year 2021. Except
for one meeting, all meetings were held virtually due to COVID-19 situation. Av-
erage attendance was 98 per cent. In addition, the Board made three separate
resolution in accordance with Chapter 6, Section 3 of the Finnish Companies Act
without convening a meeting.
Board Committees
The Board annually appoints an Audit Committee and may also appoint other
permanent Committees if considered necessary at its organisation meeting fol-
lowing the Annual General Meeting. The Board did not appoint Nomination and
Remuneration Committee in its organisational meeting 29 March 2021. The Board
has deemed, in particular taking into consideration the size and composition of
the Board, it more efficient to prepare and discuss matters pertaining to amongst
other things the development of remuneration schemes as well as remuneration
principles in its full composition. In addition, the Board has assessed that it ful-
fils the independence requirements set out for a Nomination and Remuneration
Committee. The composition, duties and working procedures of the Committees
shall be defined by the Board in the Charters confirmed for the Committees. The
Committees regularly report on their work to the Board.
Audit Committee
The Audit Committee consists of at least three (3) members, the majority of which
must be independent of the Company. The members shall have the qualifica-
tions necessary to perform the responsibilities of the Committee. At least one (1)
member shall be independent of the significant shareholders and at least one (1)
member shall have expertise specifically in accounting, bookkeeping or auditing.
All members of the Committee shall be versed in financial matters.
According to its Charter, the Audit Committee assists the Board in fulfilling its
supervisory responsibilities and also prepares certain accounting and auditing
matters to be handled by the Board. In addition, the Audit Committee makes
recommendations for the election and removal of the external auditors and for
their compensation and approves the external auditors’ audit plan based on
the auditors’ proposal. Among its other duties, the Audit Committee reviews and
monitors the financial reporting process, the efficiency of the system of internal
control and risk management, and the audit process.
Petri Carpén serves as the Chairperson of the Audit Committee and Carl-Mag-
nus Månsson (until 29 March 2021), Erik Forsberg (from 29 March 2021) and Martin
Johansson serve as members of the Audit Committee.
Audit Committee convened 6 times during 2021. Average attendance was 100
per cent.
In accordance with its financial calendar, the Audit Committee discussed mat-
ters relating to internal control and auditing and reviewed the audit plan and re-
marks from auditing during the financial year. The Audit Committee also reviewed
financial actual amounts and forecasts for the financial year, budget for the next
financial year and impairment testing.
Attendance to Board and Committee Meetings
Board meeting Audit committee
Carpén Petri 13/13 6/6
Johansson Martin 12/13 6/6
Kuusisto Tiina 12/13
Lapveteläinen Patrick 13/13
Månsson Carl-Magnus 1/1 1/1
Forsberg Erik 12/12 5/5
Parhiala Minna 13/13
2021 Enento Group FINANCIAL REVIEW 91
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PARENT COMPANY
FINANCIAL STATEMENTS
CORPORATE
GOVERNANCE STATEMENT
Chief Executive Officer
The Chief Executive Officer (“CEO”) of Enento is appointed by the Board. The
CEO is in charge of the day-to-day management of the Company. The duties
of the CEO are governed primarily by the Finnish Companies Act. The CEO leads
the operational activities and prepares information and decisions to support the
Board and presents his/her findings at Board meetings.
In accordance with the Finnish Companies Act, the CEO has a right to decide
himself/herself on certain urgent matters which otherwise would require a Board
decision. Jukka Ruuska was the CEO of the Company until 31 October 2021. The
Board of Directors nominated Jeannette Jäger as CEO from 1 January 2022. Elina
Stråhlman acted as interim CEO from 1 November until 31 December 2021.
Jukka Ruuska (born 1961) was an Executive Team member since 2011 and was
appointed as Enento Group Plc’s CEO as of 2012. He currently served as Chairman
of the Board of Suomen Asiakastieto Oy, Emaileri Oy, UC AB, UC Affärsinformation
AB, Proff AS, Proff AB, Proff Aps. He is Chairman of the Board Nordic Morning Oyj
and as a member of the Board Suomen Kansallisteatterin Osakeyhtiö. He has
served as a member of the Board of Enento Group Plc, Affecto Oyj, B10 Asset
Management Oy, AB Lindex and Destia Oy. His previous positions also include
President of Nordic Exchange Oyj, Deputy CEO of OMX Abp, Senior Partner at
CapMan and Head of Corporate Planning at Elisa Corporation. He holds a LL.M.
from University of Helsinki and MBA degrees from Helsinki University of Technology.
Elina Stråhlman (b. 1979) has served as the CFO and member of Executive Team
since 2019.
Executive Team
The Company had an Executive Team at the end of year 2021 consisting of Heikki
Koivula, Mikko Karemo, Heikki Ylipekkala, Siri Hane, Victoria Preger, Eleonor Öhlan-
der, Karl-Johan Werner, Jari Julin (as interim until new CIO starts) and Elina Strå-
hlman. The members of the Executive Team are appointed by the Board based
on a proposal by the CEO. The members of the Executive Team report to the CEO.
The Executive Team members handle the issues that concern managing of the
group in their respective areas and on the basis of the guidance provided by the
Board of Directors. The Executive Team meets one to two times per month, or as
required, and supports the CEO in, for example, the preparation and execution of
strategic matters, operating plans, matters of principle and any other significant
matters. The Executive Team also assists the CEO in ensuring the flow of information
and sound internal cooperation.
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CEO and Executive Team Number of shares
Stråhlman Elina 4 007
Related party’s ownership 0
Hane Siri 3 606
Related party’s ownership 0
Karemo Mikko 12 347
Related party’s ownership 0
Göransson Gabriella 1 326
Related party’s ownership 0
Julin Jari 4 620
Related party’s ownership 0
Preger Victoria 3 656
Related party’s ownership 0
Werner Karl-Johan 3- 656
Related party’s ownership 0
Ylipekkala Heikki 4 307
Related party’s ownership 0
Öhlander Eleonor 3 656
Related party’s ownership 0
Total 41 181
Management’s share ownership 31 December 2020
Name Birth year Position Appointed
Ruuska Jukka 1961 CEO (until 31 October 2021) 2011
Stråhlman Elina 1979
CFO (interim CEO from 31 October until 31
December 2021)
2019
Hane Siri 1984 Director, Consumer Insight 2018
Karemo Mikko 1971 Director, Sales Units 2012
Koivula Heikki 1974 Director, Business Insight 2010
Olofsson Jörgen (until
14 November 2021)
1965 CIO 2019
Preger Victoria 1976 Director, Marketing and Communications 2018
Werner Karl-Johan 1973 Director, Data and Analytics 2019
Ylipekkala Heikki 1967 Director, Digital Processes 2016
Öhlander Eleonor 1970 Director, HR 2018
Julin Jari 1968
Interim CIO (from 14 November until 31
December 2021)
2021
Board members Number of shares
Lapveteläinen Patrick 10 000
Chairman of the Board
Related party’s ownership 8 000
Carpén Petri 0
Related party’s ownership 0
Johansson Martin 3 000
Related party’s ownership 0
Kuusisto Tiina 0
Related party’s ownership 0
Forsberg Erik 1 500
Related party’s ownership 0
Parhiala Minna 0
Related party’s ownership 0
Total 22 500
Board of Directors’ share ownership 31 December 2021
The following table presents details of the management team members: :
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of the Company. Risk management is part of Enento’s strategic and operative
planning, daily decision-making process and internal control.
Main Principles for Organising Risk Management
The Company complies with a policy approved by the Company’s Board of Di-
rectors for the management of risks. Risk Management covers all activities that
are related to the objectives being achievable and consistent with the strategy,
to the identification, measuring, assessment, processing, reporting and control of
risks and to the reaction to risks.
Main Features of Risk Management Process
In conjunction with the strategy process and annual planning, the Company’s
CEO and members of the management group evaluate the business risks which
may prevent or endanger the achieving of the group’s strategic and result obje-
ctives. The units provide risk assessments of their own operations for the support
of the strategy process. The directors of the units have to provide assessments of
the risks of their own area of responsibility and present action plans for the ma-
nagement of risks. Changes taking place in the strategic and operative risks are
discussed in the management group.
Enento’s CEO reports the identified risks as well as planned and implemented
actions for the risk mitigation to the Audit Committee and the Board of Directors.
In accordance with the recommendation 26 of the Finnish Corporate Governan-
ce Code, the Company shall disclose the major risks and uncertainties that the
Board is aware of and the principles along which risk management is organised.
The Audit Committee shall assure that the Corporate Governance Statement
published by the Company shall contain an appropriate description of the main
features of the internal control and risk management systems in relation to the
financial reporting process.
The report by the Board of Directors contains an evaluation of the major risks and
uncertainties. In addition, the interim reports and financial statements releases shall
describe major short-term risks and uncertainties related to the business operations.
Internal control
The objective of the internal control in Enento Group is to ensure that business
operations are efficient and profitable, financial reporting is reliable, and that
Auditor
The main function of the statutory audit is to verify that the financial statements
provide true, accurate and sufficient information on the Enento Group’s perfor-
mance and financial position for the financial year. The Enento Group’s financial
year is the calendar year. The auditor’s responsibility is to audit the correctness of
the Group’s accounting in the respective financial year and to provide an auditor’s
report to the General Meeting. In addition, Finnish law requires that the auditor
also monitors the lawfulness of the Company’s administration. The auditor reports
to the Board of Directors at least once a year.
The Audit Committee prepares a proposal on the appointment of Enento’s
auditors, which is then presented to the AGM for its decision. The compensation
paid to the auditors is decided by the AGM and assessed annually by the Audit
Committee.
Pursuant to Article 8 of the Company’s Articles of Association, the Company
must have one auditor that is a company of public accountants approved by the
Central Chamber of Commerce of Finland. The term of the Auditor of the Compa-
ny shall end at the close of the Annual Meeting following the election.
The Annual General Meeting 29 March 2021 has appointed Pricewaterhou-
seCoopers Oy, Authorised Public Accountants as its auditor. Pricewaterhouse-
Coopers Oy has appointed Martin Grandell, Authorised Public Accountant, as the
principal responsible auditor.
In 2021 auditor Company was paid EUR 249 thousand for auditing and for other
services EUR 37 thousand.
Risk management and Internal control
Risk management
Enento is exposed to a number of risks and uncertainties related to, among other
factors, the market conditions, the Company’s industry, the Company’s strategy,
business operations of the Company and financial risks. The materialisation of
any such risks could have a material adverse effect on Enento’s business, financial
condition, results of operations and future prospects.
The objective of Risk Management is to secure profitable performance of the
Enento Group and to ensure the continuity of the business by executing risk ma-
nagement in a cost-effective and systematic manner in the different functions
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and related controls, by means of which the units can control and develop their
process risk management.
General Description of Internal Control and Operational Principles
Internal control is carried out by the Board of Directors, management and the
Company’s entire personnel so that it can reasonably be asserted that:
• the operations are functioning, efficient and in compliance with the strategy
• the financial reporting and information given to the management is reliable,
sufficient, and timely
• applicable laws and regulations as well as the Company’s internal instructions
and ethical values are complied with at Enento.
Enento’s internal control contain the following structural elements:
• instructions and principles set by the Board of Directors for internal control, risk
management and administration
• the implementation and application of instructions and principles under the
supervision of the management
• control of the efficiency and functionality of operations as well as the
reliability of the financial and management reporting by the financial
department
• the Company’s risk management process, the purpose of which is to identify,
assess and reduce risks threatening the achievement of objectives
• compliance processes, the purpose of which is to ensure that all applicable
laws, regulations, internal instructions and ethical values are complied with
common ethical values and strong internal control culture amongst all
employees.
Enento has no specific internal audit organisation. This has been taken into con-
sideration in the content and extent of the annual audit plan. The Audit Commit-
tee of the Board shall, according to its working order, evaluate on a yearly basis
whether such function should be established. The Audit Committee may use either
internal or external resources to carry out specific internal audit assignments. The
Group Finance of the Company monitors adherence of the approval limits as
defined in the Delegation of Authority guidelines.
applicable laws and regulations for the Company’s business, as well as Compa-
ny’s internal instructions are followed. The specific objective of the internal control
over financial reporting is to ensure that interim reports, financial statement re-
leases and other financial reporting made available to the public, and financial
statements and annual reports are reliable and are prepared in accordance with
the accounting and reporting principles adopted by the Company.
The Audit Committee of Enento is responsible for, according to its working or-
der, the monitoring of the financial statement preparation and financial reporting
processes, and it monitors the effectiveness of the Company’s internal control and
risk management processes.
CEO is operationally responsible for the organisation of the internal control. It
includes that the Company has designed and implemented adequate internal
control mechanisms as stipulated in the operating principles approved by the
Board. CEO, supported by the Management Team, is responsible to ensure that
the Company operates in accordance with the agreed and defined principles,
follows laws and regulations, and reacts towards identified exceptions and takes
adequate corrective actions.
The duty of the CFO is to make sure and control that the bookkeeping and
financial reporting practices of the group are in accordance with the law and that
the financial and management reporting is reliable.
An integral part of the internal control is the document indicating the Com-
pany’s delegation of authority, as defined by the Board (Delegation of Authority
Summary). The guideline defines authorisations of the Board, the CEO and other
management team members. The guideline deals with the situations where aut-
horisations may be required for annual financial accounts, budget, remuneration,
investments, acquisitions, financing and one-off transactions. Enento Code of
Ethics is applicable for all the group employees. It has been published in the
Company’s intranet and is also introduced to all new employees.
Enento’s minimum internal control requirements are aimed at preventing, dete-
cting and correcting material accounting and disclosure errors and irregularities
and are performed on all company levels. They include a range of activities such
as approvals, authorisations, verifications, reconciliations, reviews of operating
performance, the security of assets and the separation of duties as well as ge-
neral computer controls. In Finland and Sweden, Enento has also adopted the
ISO 9001-based quality system. This describes the Company’s principal processes
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According to Enento’s Insider Guidelines, persons discharging managerial res-
ponsibilities shall always obtain a prior approval for trading in the Company’s
securities from the Company’s Insider Officer. Persons discharging managerial
responsibilities may not in any event trade in the Company’s securities during the
period of 30 days before the publication of the (quarterly) interim report or annual
result (Closed Window). According to the Insider Guidelines approved by the Bo-
ard also the persons who participate in the financial reporting of the Company
are concerned by this prohibition to trade during the Closed window.
A project-specific insider register is also maintained when required by law or
regulations. Project specific insiders are prohibited from trading in the Company’s
securities until the termination of the project.
Shareholders’ Agreement and Articles of Association relating to the Credit Re-
gister and the Credit Register Information
The Company and UC AB’s former owners Skandinaviska Enskilda Banken AB
(publ), Nordea Bank AB (publ), Svenska Handelsbanken AB (publ), Swedbank AB
(publ), Danske Bank A/S Swedish branch and Länsförsäkringar Bank AB (publ)
(together, the “Sellers”) have entered into a shareholders agreement relating to
the governance of UC AB’s Credit Register and Credit Register Information, as a
company jointly owned by the Sellers received as part of the acquisition of UC
AB a small number of UC AB’s Class B shares that grant their holders certain go-
vernance related rights. The purpose of these arrangements has been to secure
the maintenance of the Credit Register and the management of Credit Register
Information provided by the Sellers.
Board of Directors’ report
Board of Directors published in 4.3.2022 its report for financial year 2021. Board
of Directors report is published at the same time with Corporate Governance
Statement.
Focus areas in 2021 for internal control development
Areas of focus for the internal control in 2021 were to continuously improve
processes and controls of Nordic projects and continuing to standardise proces-
ses and controls in entire Group.
Related party transactions
The Company has procedures in place to identify and define its related parties
and assesses and monitors related party transactions to ensure that all conflicts
of interest and the Company’s decision-making process are appropriately taken
into account. The Group’s financial management monitors and supervises relat-
ed party transactions as part of the Company’s normal reporting and monitoring
procedures and reports to the Board of Directors on regular basis.
The Board of Directors monitors related party transactions on a regular ba-
sis. All the material related party transactions that deviate from the compa-
ny’s normal business operations are to be approved by the Board of Directors.
Enento has not conducted related party transactions that are material from
the perspective of the company and where such transactions deviate from the
company’s normal business operations or are not made on market or market
equivalent terms.
Compliance with laws and regulation
It is the policy of Enento to comply throughout the organisation with all appli-
cable laws and regulations and to maintain an ethical workplace for its officers
and employees as well as an ethical relationship with its customers, suppliers
and other business partners.
In its insider administration, Enento follows the Guidelines for Insiders issued
by Nasdaq Helsinki Ltd complemented by the Company’s own Insider Guidelines
approved by the Board. The Company maintains the list of persons discharging
managerial responsibilities and persons closely associated to them in the SIRE
system of Euroclear Finland Ltd. In accordance with MAR regulation, persons
discharging managerial responsibilities include the members of the Board (and
their deputies, if any) and in addition, based on a decision made by Enento’s Bo-
ard of Directors, the CEO, the Deputy CEO and the CFO. Enento has no compa-
ny-specific permanent insider register. The Company maintains project specific
insider registers itself.
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Board of Directors 31.12.2021
Patrick Lapveteläinen b. 1966. Chairman of the Board of Directors from 1 April 2016.
Education: M.Sc. (Econ.)
Main duty: Chief Investment Officer of Sampo Group
Positions of trust: Chairman of the Board of Directors: Mandatum Life Insurance Company
Ltd, Mandatum Holding Oy, Mandatum Asset Management Oy and Leviathan Oy
Member of the Board of Directors: If P&C Insurance Ltd, If P&C Insurance Holding Ltd and
Saxo Bank A/S.
Independent of the company but non-independent of its significant shareholders.
Shareholding in Enento Group Plc on 31 December 2021: 10 000 shares, holdings of interest
parties 8 000 shares.
Petri Carpén b. 1958. Board member from 22 December 2014.
Education: Master of Laws (LL.M.)
Main duty: Director of Nets Oy
Positions of trust: –
Independent of the company and independent of its significant shareholders.
Shareholding in Enento Group Plc on 31 December 2021: 0 shares, no holdings of interest
parties.
Erik Forsberg b. 1971. Board member from 29 March 2021.
Education: M.Sc. (Econ.)
Main duty: –
Positions of trust: Chairman of the Board of Directors: Collectia Group (Care DK Bidco Aps)
Member of the Board of Directors: Stillfront Group, Kindred Group and Deltalite AB
Independent of the company and independent of its significant shareholders.
Shareholding in Enento Group Plc on 31 December 2021: 1 500 shares, no holdings of inter-
est parties.
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Martin Johansson b. 1962. Board member from 29 June 2018.
Education: M.Sc. (Econ.)
Main duty: Senior Advisor, Skandinaviska Enskilda Banken AB (publ.)
Positions of trust: Chairman of the Board of Directors: Repono Holding AB, Försäkrings AB
Suecia, Försäkringsaktiebolaget Skandinaviska Enskilda Captive
Independent of the company but non-independent of its significant shareholders.
Shareholding in Enento Group Plc on 31 December 2021: 3 000 shares, no holdings of inter-
est parties.
Tiina Kuusisto b. 1968. Board member from 27 March 2019.
Education: M.Sc. (Econ.)
Main duty: Director (Chief Customer Officer) of Kojamo Plc
Positions of trust: –
Independent of the company and independent of its significant shareholders.
Shareholding in Enento Group Plc on 31 December 2021: 0 shares, no holdings of interest
parties.
Minna Parhiala b. 1967. Board member from 12 June 2020.
Education: Master of Laws (LL.M.)
Main duty: Director of Nordea Bank (Head of Business Area, Nordea Personal Banking)
Positions of trust: Member of the Board of Directors: Limelight Horses Oy
Independent of the company and independent of its significant shareholders.
Shareholding in Enento Group Plc on 31 December 2021: 0 shares, no holdings of interest
parties.
Other changes in the Board of Directors during the financial year
Carl-Magnus Månsson Enento Group’s Board member until 29 March 2021.
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Executive Management Team
31.12.2021
Jeanette Jäger b. 1969, CEO
B.Sc. in Business Administration and Economics
Employed by Enento Group, CEO and Executive Management Team Member since 2022.
Since 2016, she has worked in the Swedish company Bankgirot, first as VP Digital Services
and from 2017 as CEO of Bankgirot. Previously she has acted in different management level
positions in Tieto and TDC Communication. Board member of the Telia Company AB.
Shareholding in Enento Group Plc on 31 December 2021: 0 shares, no holdings of interest
parties.
Elina Stråhlman b. 1979, CFO
M.Sc. (Econ.)
Employed by Enento Group and Executive Management Team Member since 2019. She
has acted since 2013 at Finnair in different management positions in finances, being
responsible for the group’s accounting, taxation, financial reporting and service centre.
Before Finnair, she worked, among others, at Fortum and Ernst & Young.
Shareholding in Enento Group Plc on 31 December 2021: 4 007 shares, no holdings of inter-
est parties.
Gabriella Göransson b. 1971, Director, Consumer Insight
Degrees in Business Economics and Business Law
Executive Management Team Member since 2021. She has previously acted in several
leading positions at UC AB, the latest years as Deputy Director for Credit Information
Services and Head of Risk Decisions Sweden. She has also acted as the Deputy CEO of
UC AB since 2021.
Shareholding in Enento Group Plc on 31 December 2021: 1 326 shares, no holdings of interest
parties.
Siri Hane b. 1984, Director, Business Insight
M.Sc. (Econ.)
Executive Management Team Member since 2018. She has previously acted as Business
Area Manager Consumer at UC AB, Head of Consumer at Collector Bank and CEO at
Lendo AS.
Shareholding in Enento Group Plc on 31 December 2021: 3 606 shares, no holdings of inter-
est parties.
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Daniel Ejderberg b. 1973, CIO
M.Sc. (Computer Science and Engineering)
Employed by Enento Group and Executive Management Team Member since 2022. Since
2011, he has served at the Swedish insurance company Folksam, first in different IT C-level
positions and from 2021 as Head of Business Area Private of Folksam Life.
Shareholding in Enento Group Plc on 31 December 2021: 0 shares, no holdings of interest
parties.
Mikko Karemo b. 1971, Director, Sales and Customers
Master of Laws (LL.M.)
Employed by Enento Group and Executive Management Team Member since 2012. He has
previously acted as Sales and Marketing Director at Asiakastieto Group, Regional Director
at If P&C Company and in expert and leading positions in finance and service sector in
Finland, Sweden and China.
Shareholding in Enento Group Plc on 31 December 2021: 12 347 shares, no holdings of inter-
est parties.
Victoria Preger b. 1976, Director, Marketing and Communications
B.Sc. in Economics and in Communications
Executive Management Team Member since 2018. She has previously acted as Chief Mar-
keting Officer at UC AB and as Head of Marketing and Communications at Swedish IT and
Telecom company Dialect.
Shareholding in Enento Group Plc on 31 December 2021: 3 656 shares, no holdings of inter-
est parties.
Karl-Johan Werner b. 1973, Chief Data & Analytics Officer
M.Sc. (Econ.)
Employed by Enento Group and Executive Management Team Member since 2019. He has
previously acted as Head of Customer Insight at Skandia. Alongside that position he has
had several other responsibilities, such as head of online financial advisory services, infor-
mation content owner of customer data and GDPR business representative.
Shareholding in Enento Group Plc on 31 December 2021: 3 656 shares, no holdings of inter-
est parties.
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Heikki Ylipekkala b. 1967, Director, Digital Processes
B.Pol.Sc., eMBA
Employed by Enento Group and Executive Management Team Member since 2016. He has
previously acted as Head of Real Estate and Collateral Information at Asiakastieto Group
and in the executive teams of the national central securities depositories of Finland and
Sweden (Euroclear Finland and Euroclear Sweden).
Shareholding in Enento Group Plc on 31 December 2021: 4 307 shares, no holdings of inter-
est parties.
Eleanor Öhlander b. 1970, Director, HR
B.Sc. in Business Administration and Economics
Executive Management Team Member since 2018. She has previously acted as Head of
HR at UC Group, Head of HR at Aon Sweden AB, Head of HR at Acta, HR Manager at Man-
power and Accountant at PwC and Ernst & Young.
Shareholding in Enento Group Plc on 31 December 2021: 3 656 shares, no holdings of inter-
est parties.
Other changes in the Executive Management Team during the
financial year
Jukka Ruuska, CEO, employed by Enento Group and Executive Management Team Mem-
ber until 31 October 2021. Elina Stråhlman, CFO, as an acting CEO from 1 November 2021 to
31 December 2021.
Heikki Koivula, Director of Business Insight Business Area, employed by Enento Group and
Executive Management Team Member until 15 January 2022.
Jörgen Olofsson, CIO, employed by Enento Group and Executive Management Team
Member until 25 November 2021. Head of IT Operations Jari Julin as an acting CIO and
Executive Management Team Member until 31 January 2022.
Siri Hane on parental leave between 18 December 2020 and 30 September 2021. Victoria
Preger replaced Siri Hane between 18 December 2020 and 31 March 2021, and Gabriella
Göransson between 1 April 2021 and 30 September 2021.
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Enento Group Plc has one share class. Each share carries one vote at the Ge-
neral Meeting of Shareholders and each share confers equal right to dividends
and net assets of the Company. The shares have no nominal value. The shares
of the Company are entered in the book-entry securities system maintained by
Euroclear Finland Ltd.
A total of 27 795 new shares were subscribed for in Enento Group Plc’s share
issue directed to the company key personnel without payment. The shares were
registered in the Trade Register on 1 March 2021. After the registration, the compa-
ny’s shares totalled 24 034 856. The new shares produce the right to dividends and
other distribution of assets as well as other shareholder rights as of the registration
date 1 March 2021. Trading in the new shares commenced on 2 March 2021.
The Company did not hold any of its own shares at the end of the financial
year. The Annual General Meeting of Shareholders on 29 March 2021 authorised
the Board of Directors to decide on the repurchase of a maximum of 1 500 000
own shares of the Company. The authorisation replaced the corresponding aut-
horisation issued to the Board of Directors by the Annual General Meeting held on
12 June 2020. The maximum amount corresponds to approximately 6,2 % of the
Company’s shares and voting rights. The authorisation is effective for 18 months
from the date of the resolution. Further information on the authorisation is provi-
ded under “Authorisations of the Board of Directors”.
At the end of financial year, the Company’s share capital amounted to EUR 80
thousand and the total number of shares was 24 034 856.
Share price and volume
During the financial year, a total of 3 080 974 shares were traded, and the total
value of the exchanged shares was EUR 109,6 million. The highest share price du-
ring the financial year was EUR 43,20, the lowest price was EUR 31,10, the average
price was EUR 35,57 and the closing price was EUR 33,00. Market capitalisation
measured at the closing price of the financial year was EUR 793,2 million.
Shares and shareholders
Shareholders
According to the book-entry securities system, the Company had 3 362 sharehol-
ders, including 9 nominee-registered shareholders, on 31 December 2021. A list of
the largest shareholders is available on the Company’s investor pages at enento.
com/investors. The company’s biggest shareholder is the Sampo Group (Sampo
Plc and Mandatum Life), their joint holding being 12,18 %.
The information is based on the list of the company’s shareholders maintained
by Euroclear Finland Ltd.
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BOARD OF DIRECTOR’S REPORT
Significant shareholders 31.12.2021
Shareholder Number of shares % of share capital Nominee registered
Skandinaviska Enskilda Banken AB (Publ.) Helsinki Branch 12 137 001 50,50 % x
Sampo Plc 2 920 000 12,15 %
Nordea Bank ABP 2 303 315 9,58 %
Fjarde AP-Fonden 678 956 2,82 %
Mutual Pension Insurance Company Ilmarinen 664 494 2,76 %
Mutual Pension Insurance Company Elo 449 455 1,87 %
Mutual Pension Insurance Company Kaleva 370 907 1,54 %
Mutual Pension Insurance Company Varma 345 000 1,44 %
Mutual FundDanske Invest Finland Equity 302 080 1,26 %
SEB Finland Small Cap 265 000 1,1 %
Mutual Fund Nordea Nordic Small Cap 264 561 1,10 %
Citibank Europe Plc 255 712 1,06 % x
Mutual Fund Evli Finnish Small Cap 255 712 1,00 %
Church Pension Fund 255 712 0,82 %
Föreningen Konstsamfundet r.f. 190 000 0,79 %
Danske Bank A/S Finnish branch 127 943 0,53 % x
OP-Life Insurance Oy 126 729 0,53 %
Clearstream Banking S.A. 108 405 0,45 % x
Mutual Fund Säästöpankki Kotimaa 96 972 0,40 %
Fyrklöver Invest Oy AB 91 744 0,38 %
20 largest shareholders total 22 136 115 92,10 %
All shares 24 034 856 100,00 %
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Shareholder structure by sector 31.12.2021
Sector Number of shareholders % of shareholders Number of shares % of share capital
Finance and insurance institutions 34 1,01% 7 452 450 31,01%
Foreign shareholders 14 0,42% 13 342 569 55,51%
General government 11 0,33% 1 516 702 6,31%
Households 2 883 85,75% 953 007 3,97%
Companies and housing companies 324 9, 6 4% 492 296 2,05%
Non-profit organisations 96 2,86% 277 832 1,16%
Total 3 362 100,00% 24 034 856 100,00%
Ownership distribution by number of shares 31.12.2021
Number of shares Number of shareholders % of shareholders Number of shares % of share capital
1 – 100 1 651 49,11 83 978 0,35
101 – 500 1 253 37,27 299 640 1,25
501 – 1 000 244 7, 2 6 188 006 0,78
1 001 – 5 000 152 4,52 326 626 1,36
5 001 – 10 000 18 0,54 144 029 0,60
10 001 – 50 000 17 0,51 368 735 1,53
50 001 – 100 000 9 0,27 676 443 2,81
100 001 – 500 000 13 0,39 3 243 633 13,50
500 001 – 999 999 999 999 5 0,15 18 703 766 77,82
Total 3 362 100,00 24 034 856 100,00
Nominee register 9 12 660 839 52,68
The information is based on the list of the company’s shareholders maintained by Euroclear Finland Ltd.
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Information for shareholders
Annual General Meeting
Enento Group Plc’s Annual General Meeting will be held on Monday, 28 March
2022, starting at 10:00 a.m. EEST at Rantatie Business Park, Tutka & Plotteri Mee-
ting Room (Hermannin rantatie 8, Main entrance: Verkkosaarenkatu 5, 00580
Helsinki, Finland). The notice to the Annual General Meeting is published on the
Company’s website (enento.com/investors) and as a stock exchange release. Due
to the COVID-19 pandemic, the participation and exercise of shareholder rights
in the Annual General Meeting will only be possible by voting in advance and by
submitting counterproposals and asking questions in advance in accordance
with the instructions to be given in the notice and otherwise by the Company. It
is not possible to attend the meeting in person.
Board of Directors’ proposal to the Annual General Meeting
The Board of Directors proposes to the Annual General Meeting convening on 28
March 2022 that from the financial year ended 31 December 2021, funds be distri-
buted amounting to EUR 1,00 per share. If the Annual General Meeting approves
the Board of Directors’ proposal on the distribution of funds, payment shall be
made to shareholders registered in the company’s shareholder register maintain
-
ed by Euroclear Finland Ltd on the payment record date of 30 March 2022. The
Board of Directors proposes that the funds be paid on 11 April 2022.
Changes of address
Shareholders are kindly requested to notify the account manager of the book-ent-
ry account of any changes of address.
Financial information in 2022
Each year, Enento Group Plc publishes a financial statement release, an annual
review, a financial review, a sustainability review, a half year financial report and
two interim reports. After they are published, the stock exchange releases can
be read on the Group’s investors pages. The annual report is published as a PDF
file only.
Annual Report for 2021 ........................................................................................... Week 10 / 2022
Interim Report 1 Jan – 31 Mar (Q1) ...................................................................... 28 April 2022
Half Year Financial Report 1 Jan – 30 Jun ....................................................... 21 July 2022
Interim Report 1 Jan – 30 Sep (Q3) .......................................................... 28 October 2022
Basic share information
Market ........................................................................................................................................... Nasdaq Helsinki
List
..................................................................................................................................................................... Mid Cap
Sector
.......................................................................................................................................................... Financials
Trading code
.............................................................................................................................................ENENTO
Votes/share
..........................................................................................................................................................1 pcs
Number of shares on 31 December 2021
........................................................................24 034 856
Share capital (EUR)
................................................................................................................................... 80 000
Analysts
Information about analysts following the company can be found on the Group’s
Investor pages. The list is not necessarily exhaustive, and Enento Group shall not
be held responsible for any estimates presented in analyses.
Investor Relations
The goal of the Group’s IR function is to produce accurate up-to-date informati-
on about the company’s business operations and financial development. Enento
Group publishes all investor information on its Investors site in Finnish and English.
Enento Group Plc observes a 30-day period of silence before the publishing of
financial reports. During this period, the company does not arrange or participate
in any one-on-one meetings with investors, analysts or the media.
IR contact information
Elina Stråhlman
CFO
Tel. +358 10 270 7578
E-mail
firstname.lastname
@asiakastieto.fi
Pia Katila
Investor Relations
Manager
Tel. +358 10 270 7506
E-mail
firstname.lastname
@asiakastieto.fi
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Enento Group as an Investment
Resilience in economic cycles
Enento Group’s services are needed in both
good times and bad.
Growth
New services and the digitalisation of the
processes create growth.
Dividend yield
Strong cash flow enables good dividend
yield.
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