XHEL:MEKKO ESEF Annual Report
Marimekko Oyj (XHEL:MEKKO)
ESEF Annual Report
2023-03-22
For: 2022-12-31
View Original
Added on
September 22, 2026
Financial Statements
and Report of the
Board of Directors 2022
2
Report of the Board of Directors 2022 3
Share and shareholders 7
Proposal for the distribution of profit 12
Key figures of the Group and formulas for the key figures 13
Consolidated financial statements, IFRS 16
Consolidated income statement 16
Consolidated balance sheet 17
Consolidated cash flow statement 18
Consolidated statement of changes in shareholders’ equity 19
Notes to the consolidated financial statements 20
Parent company financial statements, FAS 41
Parent company income statement 41
Parent company balance sheet 42
Parent company cash flow statement 43
Notes to the parent company financial statements 44
52
53
Signatures to the financial statements and the report of the Board of Directors
Auditor’s Report
Independent Auditor’s Reasonable Assurance Report on Marimekko Corporation’s ESEF Financial Statements
57
Financial Statements and Report of Board of Directors 2022
This is a voluntary published translation of the official ESEF financial statements.
Official Financial Statements are published in Finnish and can be found on the company’s website.
3
2022 IN BRIEF
• Net sales grew by 9 percent to EUR 166,515 thousand (152,227).
Net sales in Finland grew by 6 percent; international sales were up by
14 percent.
• Both a favorable trend in retail sales in Finland and growing international
sales boosted net sales. On the other hand, net sales were weakened
by a decrease in Finnish wholesale sales. The decrease was mainly due
to significantly lower non-recurring promotional deliveries than in the
comparable year.
• Brand sales¹ of Marimekko products amounted to EUR 382,253
thousand (375,646). 66 percent (66) of brand sales were
international sales.
• Operating profit was EUR 30,236 thousand (31,249). Operating profit
included EUR 146 thousand of items affecting comparability and
comparable operating profit totaled EUR 30,382 thousand (31,249),
and was 18.2 percent of net sales (20.5).
• Operating profit was mainly weakened by an increase in fixed costs but
also lower relative sales margin. On the other hand, operating profit
was particularly supported by increased net sales but also by lower
depreciation than in the comparable year.
• Result for the period was EUR 22,708 thousand (24,408) and earnings
per share² were EUR 0.56 (0.60).
• The Board of Directors proposes that a dividend of EUR 0.34 per share
will be paid for 2022.
¹ Brand sales are given as an alternative non-IFRS key figure,
representing the reach of the Marimekko brand through
different distribution channels. An unofficial estimate of sales
of Marimekko products at consumer prices, brand sales are
calculated by adding together the company’s own retail net
sales and the estimated retail value of Marimekko products
sold by other retailers. The estimated retail value is based
on the company’s realized wholesale sales and licensing
income. Brand sales do not include VAT, and the key figure is
not audited. At the beginning of 2021, the coefficients used
to calculate brand sales were adjusted, and the figures for
the comparison year have been restated accordingly. Some
licensees provide exact retail figures, in which case these
figures are used in reporting brand sales. For other licensing
agreements, Marimekko’s own retail coefficients for different
markets are used.
² The per-share key figures presented in the report of the
Board of Directors have been calculated and the figures for
the comparable year have been restated using the new total
number of shares following the issuance of shares without
payment (share split), in accordance with the decision made by
the AGM on 12 April 2022.
REVISED LONG-TERM FINANCIAL GOALS AND
STRATEGY PERIOD 2023–2027
Marimekko Board of Directors decided on 6
September 2022 on new long-term financial goals
for the company, raising the targets for net sales
development and comparable operating profit
margin. The new long-term financial goals are as
follows:
• annual growth in net sales 15% (earlier: over 10%)
• comparable operating profit margin 20%
(earlier: 15%)
• ratio of net debt to EBITDA at year end max. 2
(unchanged)
• the intention is to pay a yearly dividend; percentage
of earnings per share allocated to dividends at least
50% (unchanged)
The previous financial goals were set in November
2018, and the company exceeded them at the end of
2021. At the same time, the Board set the direction
and five strategic success factors for Marimekko’s
next strategy period of 2023–2027, during which
the company will focus on scaling its business and
growth especially in international markets. These five
strategic success factors are:
S: Determined sustainability efforts strongly
support Marimekko’s long-term success
C: Sharpened creative vision to speak to a wider
global audience
A: Accelerating growth in Asia
L: Love for Marimekko life
E: End-to-end digitality to boost omnichannel
growth and efficiency
Marimekko elaborated on the strategic direction
in the stock exchange releases published on 6
September 2022 and at the company’s Capital
Markets Day on 14 September 2022.
OPERATING ENVIRONMENT
The following outlook information is based on
materials published by the Confederation of Finnish
Industries EK and Statistics Finland.
The growth estimates for the world economy have
slightly improved but great uncertainties still remain,
and recession is very likely in significant part of the
world economy in 2023. The world economy in 2023
is estimated to grow at a rate of some 1.7 percent,
Report of the Board of Directors 2022
4
Net sales by market area
(EUR 1,000) 2022 2021 Change, %
Finland 98,237 92,299 6
Retail sales 64,559 53,547 21
Wholesale sales 33,491 38,547 -13
Licensing income 187 205 -9
Scandinavia 13,956 12,661 10
Retail sales 4,157 3,785 10
Wholesale sales 9,799 8,651 13
Licensing income - 225
EMEA 16,014 12,895 24
Retail sales 2,492 1,906 31
Wholesale sales 11,603 9,764 19
Licensing income 1,919 1,225 57
North America 7,999 8,397 -5
Retail sales 4,621 5,583 -17
Wholesale sales 2,761 2,444 13
Licensing income 617 371 66
Asia-Pacific 30,309 25,974 17
Retail sales 6,619 4,207 57
Wholesale sales 23,455 21,305 10
Licensing income 234 462 -49
International sales, total 68,278 59,927 14
Retail sales 17,890 15,481 16
Wholesale sales 47,618 42,164 13
Licensing income 2,770 2,283 21
Total 166,515 152,227 9
Retail sales 82,448 69,027 19
Wholesale sales 81,109 80,711 0
Licensing income 2,957 2,488 19
Wholesale net sales are
recognized according to the
geographical location of the
wholesale customer.
All figures in the table have
been individually rounded to
thousands of euros, so there
may be rounding differences
in the totals. The change
percentages have been
calculated on exact figures
before rounding.
Report of the Board of Directors 2022
while the growth for Euro area is expected to be zero.
New guidelines in China regarding the coronavirus
pandemic situation as well as lower energy prices
are expected to bring relief to the world economy
whereas general inflation, increasing interest rates
and Russia’s war against Ukraine have a weakening
impact on expectations.
The economic outlook for Finland has continued
to recede. While expectations for the future have
slightly improved, they continue to be weak. The
confidence indicator for the retail trade strengthened
in January 2023 but is still below the long-term
average. Sales were almost at the same level as last
fall, but sales expectations for the coming months are
pessimistic. Inventories decreased but continue to be
clearly above the usual level. Consumer confidence
increased slightly from the gloomy figures of the fall.
Estimates of the current state of personal finances as
well as expectations for the future of both personal
finances and for Finland’s economy continued to
be at a very low level and clearly weaker than the
year before. Estimates for inflation as well as the
expectations for its future development slightly
decreased from the all-time high at the end of fall.
(Confederation of Finnish Industries EK: Business
Tendency Survey, January 2023; Confidence
Indicators, January 2023. Statistics Finland:
Consumer Confidence, January 2023).
The working-day-adjusted turnover of Finnish
retail trade in December grew by 2.4 percent on the
previous year. The volume of sales was down by
6.1 percent. The cumulative working-day-adjusted
turnover of retail trade in the January-December
period rose by 3.7 percent but the volume of sales
decreased by 3.6 percent. (Statistics Finland:
Turnover of Trade, retail trade flash estimate,
December 2022).
NET SALES
In 2022, the Group’s net sales grew by 9 percent
to EUR 166,515 thousand (152,227). Net sales
were boosted by both a favorable trend in retail
sales in Finland and growing international sales.
On the other hand, net sales were weakened by
decreased wholesale sales in Finland due particularly
to significantly lower non-recurring promotional
deliveries than in the comparable year. Net sales in
Finland grew by 6 percent; international sales were up
by 14 percent.
Marimekko’s own stores were mainly open
normally in 2022 and the footfall in the stores
increased significantly from the comparable year.
Omnichannel retail sales in total grew by 19 percent
when both retail and online sales developed well.
Wholesale sales were on the previous year’s level and
licensing income grew by 19 percent.
Net sales in Finland were EUR 98,237 thousand
(92,299). Retail sales increased by 21 percent and
comparable retail sales grew by 17 percent. Wholesale
sales in Finland decreased by 13 percent mainly due
to significantly lower non-recurring promotional
deliveries than in the comparable year.
In the company’s second biggest market,
the Asia-Pacific region, net sales increased by 17
percent and were EUR 30,309 thousand (25,974).
5
Report of the Board of Directors 2022
Wholesale sales in the region grew by 10 percent and
in Japan, the most important country to Marimekko
in this region, by 5 percent. In 2021, some of the
wholesale deliveries in the fourth quarter were
transferred to the first quarter of 2022. Retail sales
in the Asia-Pacific Region increased by 57 percent as
own stores were not temporarily closed during the
year due to the pandemic situation like in the previous
year.
FINANCIAL RESULT
In 2022, the Group’s operating profit totaled
EUR 30,236 thousand (31,249). Operating profit
included EUR 146 thousand of items affecting the
comparability. Comparable operating profit was EUR
30,382 thousand (31,249). Operating profit was mainly
weakened by an increase in fixed costs but also lower
relative sales margin. On the other hand, especially
increased net sales but also lower depreciation than
in the comparable year supported operating profit.
Fixed costs in 2022 grew particularly due to
investments made to strengthen the building blocks
of Marimekko’s international growth, which increased
personnel, IT and marketing costs, among others.
The relative sales margin was weakened by higher
discounts than in the comparable year as well as
increased logistics costs resulting from the general
increase in transport costs. The discounts were
increased by successful season sales also at the end
of the year as well as clearance sales at three stores
following the expiration of leases. On the other hand,
the relative sales margin was supported by good
margins per product, increased licensing income, and
a larger share of retail sales of total net sales relative
to the previous year.
Marketing expenses for the year 2022 were EUR
9,245 thousand (7,521), or 6 percent of the Group’s
net sales (5).
The Group’s depreciation amounted to EUR 9,651
thousand (11,874), representing 6 percent of net
sales (8). The lower deprecation is related to leases
recognized as right-of-use assets under IFRS 16, for
which depreciation has decreased as some stores
have been closed in 2021 and 2022 and terms of
leases have been renegotiated.
In 2022, operating profit margin was 18.2 percent
(20.5) and comparable operating profit margin was
also 18.2 percent (20.5).
Net financial items in 2022 were EUR -1,097
thousand (-552), or 1 percent of net sales (0). Financial
items include exchange rate differences amounting to
EUR -75 thousand (270), of which EUR -73 thousand
(513) were unrealized. The impact of lease liabilities on
interest expenses was EUR -720 thousand (-694).
The Group’s result before taxes for 2022 was EUR
29,139 thousand (30,697). Net result for the period
was EUR 22,708 thousand (24,408) and earnings
per share were EUR 0.56 (0.60). The calculation of
per-share key figures takes into account the new total
number of Marimekko shares after the share issue
without payment in accordance with the decision
of the AGM on 12 April 2022. The figures for the
comparable year have been adjusted accordingly.
BALANCE SHEET
The consolidated balance sheet total as at 31
December 2022 was EUR 114,587 thousand (132,887).
Equity attributable to the equity holders of the parent
company was EUR 55,425 thousand (69,833), or EUR
1.37 per share (1.72).
Non-current assets at the end of the financial
year stood at EUR 36,108 thousand (35,149). Lease
liabilities amounted to EUR 31,824 thousand (30,480),
and financial liabilities were EUR 2,169 thousand
(1,798). In addition, the Group had unused committed
credit lines of EUR 14,591 thousand (14,982).
At the end of the year, net working capital was
EUR 20,557 thousand (7,235). Inventories were EUR
33,784 thousand (25,983). The inventories were
increased in part by the contingency planning for the
demand of the continuing collection in the event of
possible supply chain disruptions.
CASH FLOW AND FINANCING
In 2022, cash flow from operating activities was
EUR 20,141 thousand (35,902), or EUR 0.50 per
share (0.88). Cash flow from operating activities was
negatively affected by the higher inventories as well
as the different timing of deliveries of goods and
related accounts payable than in the comparable
year. In addition, the payment schedule of income
taxes differed from the comparable year and the
taxes were higher. Cash flow before cash flow
from financing activities was EUR 19,142 thousand
(34,992).
The Group’s cash and cash equivalents at the end
of year amounted to EUR 32,711 thousand (59,726). In
particular, the payment of an extraordinary dividend
in spring 2022 decreased the Group’s cash and cash
equivalents. In total, dividends paid in 2022 amounted
to EUR 37,372 thousand (7,299). Return on investment
was 31.5 percent (33.0). The amount of interest-
bearing credit facilities drawn down was EUR 2,127
thousand (1,798). In addition, the Group had unused
committed credit lines of EUR 14,591 thousand
(14,982).
As the general economic uncertainty continues,
Marimekko took after the end of the financial year in
January 2023 additional short-term revolving credit
facilities, which include covenants, totaling EUR
16,000 thousand.
The Group’s equity ratio at the end of the
period was 49.2 percent (53.3). Gearing was 2.2
percent (-39.3). The ratio of net debt to 12-month
rolling EBITDA was 0.03 (-0.64), i.e. well below the
company’s long-term goal, with the goal being a
maximum of 2.
INVESTMENTS
The Group’s gross investments in 2022 were
EUR 999 thousand (207), or 1 percent of net sales (0).
The investments were mainly devoted to revamping
the company headquarter building, production
equipment as well as building store premises. Gross
investments do not include new lease agreements
included in balance sheet (IFRS 16) in the review or
comparable year.
6
Report of the Board of Directors 2022
RESEARCH AND DEVELOPMENT
Marimekko’s product design and development
costs arise from the design of collections and
collaborations on new, more sustainable materials and
manufacturing methods. Design costs are recorded
in expenses.
STORE NETWORK
Omnichannel retail sales, operated by the company
itself or its partners, represents the core of
Marimekko’s distribution strategy. It is complemented
with select, and increasingly online, retailers to gain
scale and access to new customers. Even in the
digitalized business, physical stores play an important
role not only as a distribution channel but also as the
hearts of brand culture, supporting, in addition, sales
online and in other channels.
Good store locations that cater to its target
audience are essential for Marimekko. The
operations and efficiency of the store network are
continuously assessed and developed. In 2022,
nine new Marimekko stores were opened, of which
seven in Asia. In addition, a Marimekko online store
was launched in Hong Kong. In total eight stores or
shop-in-shops were closed. In different markets,
six pop-up stores and a Marimekko pop-up café in
Thailand were opened during the year. At the end
of December, there were a total of 153 Marimekko
stores and shop-in-shops worldwide, and at the
end of the year all Marimekko stores were open
with normal business hours. The stores’ net sales in
each market are primarily generated from sales to
local customers, although sales to tourists make up
a significant portion of the sales of certain central
stores especially during holiday seasons.
E-commerce plays an important role in
Marimekko’s omnichannel retail. Online sales
developed well during the year. The company’s own
and partner-operated Marimekko webstores reach
customers in as many as 35 countries. In addition,
Marimekko also has distribution through other online
channels.
Digital service solutions are constantly increasing
the integration of e-commerce and in-store
retailing. For this reason, Marimekko reports its own
e-commerce net sales as part of retail sales and sales
through other online channels as part of wholesale
sales.
In order to accelerate its long-term international
growth, Marimekko continues to invest in its digital
and omnichannel business. The importance of online
sales in the company’s business will grow even
more, and the shift to digital sales channels among
customers will influence Marimekko’s distribution
channel choices in the future.
SUSTAINABILITY
Marimekko’s operations and design philosophy
have always been based on a sustainable approach:
Marimekko wants to offer its customers timeless,
functional and durable products that bring them
long-lasting joy and that they will not want to throw
away. Determined sustainability efforts support the
company’s long-term success and sustainability has
been defined as one of the five strategic success
factors during the strategy period of 2023–2027.
The company’s sustainability strategy from 2021
to 2025 is built on three guiding principles as well
as related ambitious targets and a roadmap for the
entire value chain: timeless design brings joy for
generations to come, the products of tomorrow leave
no trace, and positive change through fairness and
equality. In 2022, the company’s activities included,
for example, work to promote innovations and
business models, which are in line with the principles
of the circular economy, as well as work to further
increase the share of more sustainable materials in
its products.
Statement of non-financial information
Marimekko issues a statement of non-financial
information for 2022 separately from the report of
the Board of Directors in week 12 at the latest. The
statement will be available at Marimekko’s website
and in the Marimekko’s year 2022 publication.
Marimekko reports in greater detail on its
sustainability work and on issues of the environment,
health and safety in a separate sustainability review
published annually. The review can be read on the
company’s website. The next review will be published
in the second quarter of 2023.
PERSONNEL
In 2022, the number of employees, expressed as
full-time equivalents, averaged 434 (401). At the end
of the year, the Group had 459 (409) employees, of
whom 76 (69) worked outside Finland. The number of
employees working outside Finland was broken down
as follows: Scandinavia 24 (21), EMEA 1 (1), North
America 16 (13) and the Asia-Pacific region 35 (34).
The personnel at company-owned stores, expressed
as full-time equivalents, totaled 218 (193) at the end
of the period. In the comparable year, there were still
temporary layoffs in the retail organization related to
the pandemic situation. Salaries, wages and bonuses
paid to personnel amounted to EUR 24,155 thousand
(21,273). In 2022, the turnover of employees leaving
was 11 percent (12).
More information on personnel and the
development of staff is available in the statement of
non-financial information.
MANAGEMENT
Board of Directors, management and auditors
Marimekko’s Annual General Meeting on 12 April 2022
appointed six members to the company’s Board of
Directors. Carol Chen, Mika Ihamuotila, Mikko-Heikki
Inkeroinen and Tomoki Takebayashi were re-elected.
Teemu Kangas-Kärki and Marianne Vikkula were
elected as new members of the Board of Directors.
From among its members, the Board of Directors
elected Mika Ihamuotila as Chair of the Board and
Teemu Kangas-Kärki as Vice Chair of the Board.
From among its members, the Board of Directors
elected Teemu Kangas-Kärki as Chair and Mikko-
Heikki Inkeroinen and Marianne Vikkula as members
of the Audit and Remuneration Committee.
7
Ownership by size of holding, 31 December 2022
Number of % of Number of shares % of holding
Number of shares shareholders shareholders and votes and votes
1–100 21,300 58.17 836,014 2.06
101–1 000 12,630 34.49 4,358,009 10.72
1 001–10 000 2,439 6.66 6,740,900 16.58
10 001–100 000 217 0.59 5,364,455 13.20
100 001–1 000 000 25 0.07 7,339,071 18.06
1 000 001– 5 0.01 16,010,721 39.39
Total 36,616 100.00 40,649,170 100.00
Ownership by sector, 31 December 2022
Number of shares
Owner and votes % of holding and votes
Nominee-registered and non-Finnish holders 6,158,317 15.15
Households 17,914,629 44.07
Financial and insurance corporations 4,568,417 11.24
Non-financial corporations and housing corporations 7,222,722 17.77
Non-profit institutions 296,425 0.73
General government 4,488,660 11.04
Total 40,649,170 100.00
Report of the Board of Directors 2022
All members of the committee are independent of the
company and its significant shareholders.
The AGM re-elected KPMG Oy Ab, Authorized
Public Accountants, as the company’s auditor, with
Heli Tuuri, Authorized Public Accountant, as the
auditor with principal responsibility. It was decided
that the auditor’s fee will be paid as per invoice
approved by the company.
The following changes in the company’s
management took place in 2022. On 2 May 2022,
Marimekko informed that the Chief Sales Officer and
member of the Marimekko Management Group Dan
Trapp will resign from his role due to personal reasons
on 2 August 2022. In June, Marimekko informed
about changing its sales leadership structure so that
going forward, the company’s sales leadership in the
Management Group is divided into two geographical
regions, Region West (Finland, Scandinavia, EMEA
and North America) and Region East (the Asia-Pacific
region). On 14 September 2022, Noora Laurila started
as Senior Vice President, Sales, Region West and a
member of the Management Group of Marimekko.
At the end of the year 2022, the company’s
Management Group comprised Tiina Alahuhta-Kasko
as Chair and Elina Anckar (Chief Financial Officer),
Rebekka Bay (Creative Director), Tina Broman (Chief
Supply Chain and Product Officer), Kari Härkönen
(Chief Digital Officer), Noora Laurila (Senior Vice
President, Sales, Region West), Sanna-Kaisa Niikko
(Chief Marketing Officer), Tanya Strohmayer (Chief
People Officer), and Riika Wikberg (Chief Business
Development Officer) as members.
Corporate governance statement
The corporate governance statement for 2022
is issued separately from the report of the Board
of Directors. The statement will be available at
Marimekko’s website and in the Marimekko’s year
2022 publication.
Remuneration of the Board and management
The remuneration of Marimekko’s Board of Directors
and President & CEO is presented in more detail in
the Remuneration Report for 2022. Remuneration
Report will be available at Marimekko’s website and in
the Marimekko’s year 2022 publication.
SHARES AND SHAREHOLDERS
Share capital and number of shares
Marimekko Corporation’s share is quoted in the
Consumer Discretionary sector of Nasdaq Helsinki
Ltd. Marimekko Corporation was listed on the I List of
the Helsinki Stock Exchange in March 1999 and on the
main list on 27 December 2002. Marimekko’s trading
code is MEKKO and its ISIN code is FI0009007660.
The company has one series of shares, each
conferring the same voting rights to their holders.
At the end of the financial year, the company’s fully
paid-up share capital, as recorded in the Trade
Register, amounted to EUR 8,040,000 and the
number of shares totaled 40,649,170. The numbers of
shares grew after the AGM on 12 April 2022 decided,
that in order to enhance the liquidity of the company’s
shares, new shares were issued to the shareholders
without payment in proportion to their holdings so
that four (4) new shares were issued for each share
(so called split). The new shares were registered in
the trade register on 14 April 2022 and trading with
the new shares began on 19 April 2022.
Shareholdings
According to the book-entry register, Marimekko had
36,616 shareholders (23,323) at the end of December
2022. Of the shares, 15.15 percent (17.41) were owned
by nominee-registered or non-Finnish holders.
8
Report of the Board of Directors 2022
Largest shareholders according to the book-entry register, 31 December 2022
Number of shares
Owner and votes % of holding and votes
1. PowerBank Ventures Ltd (Mika Ihamuotila) 5,088,500 12.52
2. Varma Mutual Pension Insurance Company 1,929,600 4.75
3. Ilmarinen Mutual Pension Insurance Company 1,926,940 4.74
4. Ehrnrooth Anna Sophia 1,651,885 4.06
5. Nordea Nordic Small Cap 999,425 2.46
6. Evli Finnish Small Cap Fund 869,121 2.14
7. Oy Talcom Ab 505,000 1.24
8. Oy Etra Invest Ab 500,000 1.23
9. Alahuhta Matti 423,650 1.04
10. Veritas Pension Insurance Company Ltd. 375,000 0.92
Total 14,269,121 35.10
Monthly updated information on the largest
shareholders can be found on the company’s website
at company.marimekko.com under Investors/Share
information/Shareholders.
At the end of the financial year, members of the
Board of Directors and the Management Group of the
company either directly or indirectly owned 5,356,106
Marimekko shares corresponding to 13.18 percent
of the number and voting rights of the company’s
shares. Updated information on the management
holdings can be found on the company’s website
at company.marimekko.com under Investors/
Share information/Shareholders/Management’s
shareholding.
Shareholder agreements
Marimekko has neither made nor is aware of any
shareholder agreements concerning the company’s
shares or other commitments agreeing on the
company’s ownership or the use of voting rights.
Own shares
At the beginning of the year, Marimekko held
13,360 own shares. On 15 February 2022, the Board
of Directors decided to transfer a total of 7,802
Marimekko shares held by the company as a part
of the latter instalment of the long-term incentive
system targeted at the Management Group. After
the transfer, Marimekko held 5,558 of its own
shares, corresponding to some 0.07 percent of the
total number of the company’s shares. Following
the issuance of shares without payment in April,
Marimekko correspondingly held 27,790 of its
own shares. On 14 November 2022, Marimekko
Corporation’s Board of Directors decided to start
acquiring the company’s own shares based on
the authorization granted by the Annual General
Meeting held on 12 April 2022. Marimekko acquired
50,000 own shares through the public trading on
Nasdaq Helsinki during the time period from 16
November 2022 to 22 November 2022. The average
price per share was approximately EUR 9.05 and
the total amount paid for the shares acquired was
EUR 452,721.80. At the end of the year, Marimekko
held 77,790 of its own shares, corresponding to
approximately 0.19 percent of the total number of
the company’s shares. Marimekko shares held by
the company carry no voting rights and no
entitlement to dividends.
Flagging announcements
There were no flagging announcements on
Marimekko shares in 2022.
Share trading and the company’s market
capitalization
In 2022, a total of 14,263,348 Marimekko shares
(11,145,915) were traded on Nasdaq Helsinki,
representing 35.09 percent (27.42) of the shares
outstanding. Share trading data takes into account
the new shares issued without payment following
the decision of the AGM on 12 April 2022. The total
value of the share turnover was EUR 171,076,384
(153,719,602). The lowest price of the share was EUR
8.14 (8.90), the highest was EUR 17.60 (18.84) and
the average price was EUR 12.04 (13.79). At the end
of December, the closing price of the share was EUR
8.76 (16.94).
The company’s market capitalization on 31
December 2022 was EUR 355,405,289, excluding
the Marimekko shares held by the company
(687,465,348).
Authorizations
The Annual General Meeting on 14 April 2021
authorized the Board of Directors to decide on the
payment of a maximum dividend of EUR 1.00 per
share in one or several instalments at a later stage.
On 15 February 2022, the Board made use of the
authorization and decided that a dividend of EUR 1.00
per share be paid for 2020 in one instalment. The
dividend record date was 17 February 2022, and the
dividend payout date was 24 February 2022.
The AGM on 14 April 2021 authorized the Board
to decide on the issuance of new shares and the
transfer of the company’s own shares in one or more
instalments. Based on the authorization, the Board
of Directors decided on 15 February 2022 to transfer
7,802 Marimekko shares held by the company as a
part of the latter instalment of the long-term incentive
system targeted at the Management Group. The
authorization ended on 12 April 2022.
The AGM on 12 April 2022 authorized the Board of
Directors to decide on the acquisition of a maximum
of 150,000 of the company’s own shares, in one
or more instalments. The number of shares takes
9
Report of the Board of Directors 2022
into account the effects of the share issue without
payment as decided by the AGM. The maximum
number of shares represents approximately 0.4
percent of the total number of the company’s
shares. The shares can be acquired with funds from
the company’s non-restricted equity, which means
that the acquisition will reduce funds available for
distribution. The shares can be acquired otherwise
than in proportion to the shareholdings of the
shareholders through public trading on Nasdaq
Helsinki Ltd at the market price prevailing at the time
of acquisition and in accordance with the rules and
regulations of Nasdaq Helsinki Ltd. The shares can
be acquired to be used as a part of the company’s
incentive compensation program, to be transferred
for other purposes or to be canceled. The Board of
Directors is authorized to decide on all of the other
terms and conditions of the acquisition of the shares.
On 14 November 2022, Marimekko Corporation’s
Board of Directors decided to acquire 50,000 of the
company’s own shares based on this authorization.
The acquisitions of Marimekko’s own shares were
completed on 22 November 2022. The authorization
is valid until 12 October 2023 and based on it,
additional 100,000 own shares can be acquired.
Furthermore, the AGM on 12 April 2022 authorized
the Board of Directors to decide on the issuance of
new shares and the transfer of the company’s own
shares in one or more instalments. The total number
of shares to be issued or transferred pursuant to
the authorization may not exceed 250,000 new
or treasury shares. The number of shares takes
into account the effects of the share issue without
payment as decided by the AGM. The number of
shares represents approximately 0.6 percent of the
total number of the company’s shares. Pursuant to
the authorization, the Board may decide on a directed
share issue in deviation from the shareholders’ pre-
emptive rights for a weighty financial reason, such
as the company’s incentive compensation plan,
personnel share issue, developing the company’s
capital structure, using the shares as consideration
in possible company acquisitions or carrying out
other business transactions. The share issue may be
subject to a charge or free. A directed share issue
can be free of charge only if there is a particularly
weighty financial reason for the company and taking
into account the interests of all of the company’s
shareholders. The subscription price of the new
shares and the amount paid for the company’s
own shares would be recorded in the company’s
reserve for invested non-restricted equity. The Board
of Directors is authorized to decide on all of the
other terms and conditions of the share issue. The
authorization was not used in 2022. The authorization
is valid until 12 October 2023.
At the end of the review period, the Board
of Directors had no valid authorizations to issue
convertible bonds or bonds with warrants.
EVENTS AFTER THE END OF THE FINANCIAL
YEAR
Changes in management
After the end of the financial year, the Board of
Directors of Marimekko appointed Natacha Defrance
Senior Vice President, Sales, Region East and a
member of the Management Group of Marimekko.
Previously she has worked in the position of
Head of Market Area, Greater China, South Korea
and South East Asia. At the same time, General
Counsel Essi Weseri was appointed member of the
Management Group of Marimekko. They will both
start in their new roles on 16 February 2023 and
report to President and CEO Tiina Alahuhta-Kasko.
After these appointments, the Management Group
comprises 11 members including the President and
CEO.
Long-term incentive system for the management
After the end of the financial year, the Board of
Directors decided on the targets and potential
rewards of the second earnings period of the
on-going long-term incentive system for the
management. At the same time, the Board also
decided to expand the incentive system targeted
to the Management Group so that the first earnings
period now also encompasses 11 people including
the President and CEO. The decisions have been
reported in more detail in the stock exchange
release on 16 February 2023.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
Marimekko’s business exposes the company
to various risks. The risks and uncertainties
presented below have the potential to substantially
weaken Marimekko’s business conditions, sales,
financial performance and position. Marimekko’s
risk management practices are described in the
Corporate Governance Statement.
The economic and political operating environment
The uncertainties related to the general development
of the global economy, such as the risk of an
economic recession, and geopolitical tensions
influence consumer confidence, purchasing power
and behavior in all of Marimekko’s market areas.
Declining consumer confidence and purchasing
power may have a significant unfavorable impact
on Marimekko’s sales and profitability. This risk is
emphasized in Finland and Japan, which are the
company’s biggest single countries for business.
Geopolitical tensions can also affect Marimekko’s
production and logistics chains and operating
possibilities in certain countries. Geopolitical tensions
may lead to military action, trade disputes, economic
sanctions as well as export and import restrictions
that can affect the reliability and efficiency of the
company’s value chain. Russia’s war against Ukraine
has not directly affected Marimekko’s business,
but the war continues to cause disruptions in global
supply chains and contributes to the development of
the global economy and the purchasing power and
behavior of consumers.
Sudden market movements, development of
inflation, changes in the price development of
production factors, in exchange rates (particularly the
US dollar) and in the company’s taxation, as well as
rising interest rates may affect Marimekko’s financial
position.
The coronavirus pandemic has been the worst
10
Report of the Board of Directors 2022
crisis experienced by the global fashion industry and
specialty retail sector in decades, and its economic
and societal consequences may continue to slow
the recovery of the global economy and affect
the demand for Marimekko’s products, employee
health as well as the reliability and efficiency of the
company’s value chain.
Marimekko is also exposed to labor market
disputes. Strikes and other labor market disturbances
may have a negative impact on the company’s
business.
Marimekko continuously monitors the
development of the economic and political operating
environment, takes various scenarios into account
in the management of the company’s business, and
adapts its operations as necessary.
The retail environment, customers and partners
The company’s growth in the longer term is based
primarily on omnichannel retail: on increasing
e-commerce, on partner-led retail in Asia, as well
as on enhancing the sales per square meter of
existing stores in the company’s main market areas.
In addition, the company expands its distribution
through physical and digital wholesale channels
appropriate for the Marimekko brand. The Asia-
Pacific region is Marimekko’s second-biggest market,
and especially Asia plays an important role in the
company’s international growth.
The importance of omnichannel business in the
retail trade has been emphasized over the past few
years. International e-commerce has increased the
options available to consumers and the significance
of big e-commerce operators. The pandemic has also
accelerated the digitization of retail and intensified
the financial difficulties of some traditional wholesale
customers in the fashion sector, such as department
stores and multi-brand retailers. Structural changes
in the retail environment may have an impact on
Marimekko’s distribution channel decisions, the
prioritization of different distribution channels, sales
and profitability. The structural changes can also
lead to the creation of new revenue models. Risks
related to the sales structure may have an impact
on the company’s financial position. Maintaining
competitiveness in a rapidly changing operating
environment being revolutionized by digitization
demands agility, efficiency, flexibility and constant
re-evaluation of operations from the company.
Major partnership choices, partnering contracts
and other collaboration agreements involve
considerable risks. Store lease agreements in Finland
and abroad also contain risks. With the company’s
internationalization and the growing interest in its
brand, risks related to gray exports may increase,
which may have an impact on the company’s sales
and profitability. In addition, risks related to changes
in the company’s cost structure as well as the liquidity
of customers and partners may have an impact on the
company’s financial position.
Other significant risks include risks related
to changes in the company’s design, product
assortment and product distribution and pricing.
Increased inflation creates pressure to raise prices
while the uncertainties in the global economy and the
operating environment negatively affect consumers’
purchasing power and behavior. The company’s
ability to design, develop and commercialize new
products that meet consumers’ expectations while
ensuring effective, quickly reacting and sustainable
production, sourcing and logistics has an impact on
the company’s sales and profitability.
Supply chain
The risks related to Marimekko’s supply chain are
associated especially with production, procurement
and logistics processes and their reliability, flexibility
and efficiency, price fluctuations of raw materials and
other production factors as well as the availability and
price of logistics. The pandemic situation, particularly
in China, where restrictions have only recently
been lifted, and Russia’s war against Ukraine may
cause even significant disruptions in production and
logistics chains, which may have a negative impact
on the company’s sales, profitability and cash flow. It
is of utmost importance to safeguard the operational
reliability of the company’s own printing factory in all
circumstances.
Higher costs of raw materials, energy and other
production factors may affect Marimekko’s sales
and profitability. Early commitment to product
orders from supplier partners, which is typical of
the industry, means that changes in costs affect the
company with a delay. These early commitments have
been further emphasized by the pandemic situation,
undermining the company’s ability to optimize
product orders and respond to rapid changes in
demand and consumer behavior, which also increases
risks related to inventory management.
In addition to supply chain disruptions and even
earlier commitment to product orders, risks related to
inventory and product flow management increase as
product distribution is expanded and operations are
diversified, which may have a weakening impact on
the company’s cash flow. Substantial non-recurring
wholesale promotions can increase risks related to
procurement, transport and inventory management,
especially in exceptional circumstances. Any delays
or disturbances in supply, or fluctuations in the quality
of products, may have a harmful impact on business
including also on substantial non-recurring wholesale
promotions. The risk of supply chain disruptions
is also increased by cyber threats, pandemic-
related shutdowns, geopolitical tensions and
other uncertainties related to the global economy.
Marimekko works actively to mitigate the negative
impacts of disruptions in production and logistics
chains and increased costs, and to enhance inventory
management.
Sustainability
Enhancing sustainability is increasingly important
for competitiveness in Marimekko’s industry, which
can have an impact on the company’s sales and
profitability, as versatile investments are required
for the enhancement. The most significant risks
and opportunities with regard to Marimekko’s
sustainability targets are related to changes in
consumer behavior as well as possible new legislation
that may affect the company’s products and value
chain. The company’s ability to anticipate changes,
react to them and develop more sustainable products
11
Report of the Board of Directors 2022
plays a key role in the company’s competitiveness.
Compliance with responsible business practices
and legislation is important in maintaining the trust
of customers and other stakeholders; any failures
or errors in this area will involve reputation, financial
liability and business risks. Marimekko primarily uses
supplier partners to manufacture its products. Of the
sustainability elements of manufacturing, especially
social aspects related to the supply chain (e.g. human
rights, working conditions and remuneration) and
environmental aspects (e.g. production methods
and raw materials and chemicals used) as well as
transparent communications on these issues in
compliance with continuously increasing legislation
is of growing significance to customers. These
sustainability topics apply to Marimekko’s sourcing
and own production as well as licensed products.
The environment and climate change
Climate change increases the likelihood of extreme
weather phenomena and natural disasters, such as
floods, forest and bush fires and storms. Extreme
weather phenomena and natural disasters pose a
risk to the operational reliability and efficiency of
Marimekko’s value chain. Climate change-related
heatwaves, drought, water shortages, soil depletion
and other changes may, in turn, affect the availability
and price of the raw materials used in Marimekko’s
products, such as cotton. Extreme weather
phenomena and natural disasters may also affect the
availability of products if they cause damage to the
company’s partner suppliers’ factories or hamper
the logistics chains. In addition, Marimekko has
stores and offices in areas where extreme weather
phenomena or natural disasters may occur, and if
they damage stores or offices or cause momentary
changes in consumer behavior, it may result in lost
sales as well as expenses.
Risks related to climate change are managed by,
for example, increasing the share of materials with
lower emission intensity and water consumption
in Marimekko’s collections, exploring new more
sustainable material and production method
innovations, as well as diversifying the company’s
operations in general.
Compliance
Compliance with applicable legislation, regulations
and responsible business practices, as well as product
safety and quality, are essential for Marimekko.
Potential allegations, failures or mistakes can lead
to, for example, reputation and business risks for
the company, fines, claims for damages, or criminal
charges. Internationalization increases the regulations
applicable to the company’s operations and elevates
the risk of potential allegations, failures and mistakes.
Risks are prevented by focusing on sustainability and
compliance work as well as by ensuring product
safety and continuous quality control.
Intellectual property rights
Intellectual property rights play a vital role in the
company’s success, and the company’s ability to
manage and protect these rights may have an impact
on the company’s business, value and reputation.
Agreements with freelance designers and fees
paid to designers based on these agreements
are also an essential part of the management of
intellectual property rights. As the company grows
and internationalizes, the risks related to intellectual
property rights, in particular to its most renowned
prints, may increase.
Information security risks
There are risks associated with information system
reliability, dependability and compatibility. With
digitization, internationalization and Russia’s war,
cybercrime and cyber-attacks as well as various
other risks related to cybersecurity and personal
data protection have also increased. DoS attacks,
malfunctions in data communications or for example,
in the company’s own online store, may disrupt
business or result in lost sales. Personal data
breaches can lead to claims for damages, fines and
reputation risks.
Personnel and competence
Potential new serious coronavirus infection waves
may increase risks related to taking care of the health
and safety of employees and securing sufficient
workforce in cases of sickness caused by the
pandemic. Possible pandemic-related restrictions
may impact Marimekko’s sales, profitability and cash
flow as well as the reliability and efficiency of the
company’s production and logistics chain.
As Marimekko is a small company, risks related
to securing the necessary talent for international
growth as well as risks related to key personnel
can be significant. Marimekko’s competence
development efforts include focusing on training
for the management and supervisors, succession
planning and performance management. These
measures support a performance-oriented, diverse
and inclusive culture.
MARKET OUTLOOK AND GROWTH TARGETS
FOR 2023
The uncertainties related to the general development
of the global economy, such as the risk of an
economic recession, general cost inflation, increasing
interest rates and energy crisis as well as geopolitical
tensions influence consumer confidence, purchasing
power and behavior and, as a result, can have an
impact on Marimekko’s business in 2023, especially
in the important domestic market Finland. The
pandemic situation, particularly in China, where
restrictions have only recently been lifted, and
Russia’s war against Ukraine may cause even
significant disruptions in production and logistics
chains, which may result in delivery delays and
increased costs and thus have a negative impact on
the company’s sales, profitability and cash flow.
Finland, Marimekko’s important domestic market,
traditionally represents about half of the company’s
net sales. Sales in Finland are expected to grow on
the previous year. The Finnish wholesale sales in
2023 will be positively affected by non-recurring
promotional deliveries, the total value of which is
estimated to be substantially higher than the year
before. A vast majority of the deliveries will take place
in the second half of the year.
12
Report of the Board of Directors 2022
The Asia-Pacific region is Marimekko’s second-
largest market and it plays a significant part in
the company’s international growth. Japan is
clearly the most important country in this region to
Marimekko and already has a very comprehensive
network of Marimekko stores. All brick-and-mortar
Marimekko stores and most online stores in Asia
are partner-owned. Net sales in the Asia-Pacific
region are expected to increase in 2023, as are total
international sales. The aim is to open approximately
5 to 10 new Marimekko stores and shop-in-shops in
2023, and most of the planned openings will be in
Asia.
Because of the seasonal nature of Marimekko’s
business, the major portion of the company’s euro-
denominated net sales and operating result are
traditionally generated during the second half of the
year. In 2023, Marimekko’s net sales are expected to
grow. However, net sales in the first quarter of the
year are estimated to be lower than in the comparison
period following the weaker outlook at the beginning
of the year for the wholesale sales in Finland, as well
as lower licensing income. Furthermore, net sales in
the first quarter of 2022 were boosted by some of
the wholesale deliveries in the Asia-Pacific region in
fourth quarter of 2021 being transferred to the first
quarter of 2022. For the full year 2023, licensing
income is forecasted to be below the record level of
2022.
The general cost inflation continues to also affect
Marimekko in 2023. Marimekko’s early commitment
to product orders from supplier partners, which
is typical of the industry, means that changes in
costs affect the company with a delay. These early
commitments have been further emphasized by the
pandemic situation, undermining the company’s
ability to optimize product orders and respond to
rapid changes in demand and consumer behavior,
which also increases risks related to inventory
management. The domestic non-recurring
promotional deliveries also raise inventory risks.
Marimekko works actively to mitigate the negative
impacts of disruptions in production and logistics
chains and increased costs, as well as to enhance
inventory management.
Marimekko develops its business with a long-
term view and aims to scale its growth especially
in international markets during the strategy period
of 2023–2027. In 2023, fixed costs are expected to
be up on the previous year. Marketing expenses are
expected to grow (2022: EUR 9.2 million).
Marimekko is closely monitoring the general
economic situation, the development of consumer
confidence and purchasing power, as well as the
impacts of Russia’s war against Ukraine and the
coronavirus pandemic and will adjust its operations
and plans according to the circumstances.
FINANCIAL GUIDANCE FOR 2023
The Marimekko Group’s net sales for 2023 are
expected to grow from the previous year (2022: EUR
166.5 million). Comparable operating profit margin is
estimated to be approximately some 16–19 percent
(2022: 18.2 percent). Development of consumer
confidence and purchasing power, global supply chain
disruptions and the general inflation development, in
particular, cause volatility to the outlook for 2023.
Uncertainties related to the development of net
sales and result are described in more detail in the
Major risks and factors of uncertainty section.
DIVIDEND POLICY
Marimekko aims to pay a regular dividend every year.
The dividends to be paid and their amount and the
payout date depend on the company’s financial result,
financial situation, equity ratio, need for working
capital and other factors. Marimekko intends to follow
a stable and active dividends policy that by and large
reflects the company’s earnings trend. Marimekko’s
goal is to distribute as dividends at least half of
earnings per share annually.
THE BOARD OF DIRECTORS’ PROPOSAL
FOR DIVIDENDS
On 31 December 2022, the parent company’s
distributable funds amounted to EUR 49,039,655.34;
profit for the financial year was EUR 22,850,050.77.
The Board of Directors will propose to the Annual
General Meeting that a dividend of EUR 0.34 per
share be paid for 2022.
The Board will propose 17 April 2023 as the
dividend payout record date and 24 April 2023 as the
dividend payout date. A regular dividend of EUR 0.32
per share and an extraordinary dividend of EUR 0.40
per share was paid for 2021.
ANNUAL GENERAL MEETING
The Annual General Meeting is scheduled to be held
on Thursday, 13 April 2023 at 2.00 p.m.
Helsinki, 15 February 2023
Marimekko Corporation
Board of Directors
13
Key figures of the Group and formulas for the key figures
Return on equity (ROE)
%
0
10
20
30
40
50
2020¹
29.2
40.0 36.3
2021 2022
Return on investment (ROI)
%
0
10
20
30
40
2020¹
21.8
33.0
31.5
2021 2022
¹ The figures for 2020 have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision.
Additional information is presented in the accounting principles of Financial Statements 2021, on p. 33–34.
Key financial figures
2022 2021 2020
Net sales, EUR 1,000 166,515 152,227 123,568
Change in net sales, % 9.4 23.2 -1.0
Operating profit, EUR 1,000¹ 30,236 31,249 18,772
% of net sales¹ 18.2 20.5 15.2
Comparable operating profit, EUR 1,000¹ 30,382 31,249 19,600
% of net sales¹ 18.2 20.5 15.9
Financial income, EUR 1,000 1,241 851 592
Financial expenses, EUR 1,000 -2,339 -1,403 -2,375
Result before taxes, EUR 1,000¹ 29,139 30,697 16,989
% of net sales¹ 17.5 20.2 13.7
Taxes, EUR 1,000¹ 6,430 6,289 3,683
Net result for the period, EUR 1,000¹ 22,708 24,408 13,306
Balance sheet total, EUR 1,000¹ 114,587 132,887 114,371
Net working capital, EUR 1,000 20,557 7,235 7,869
Interest-bearing liabilities, EUR 1,000 33,993 32,277 37,879
Shareholders’ equity, EUR 1,000¹ 55,425 69,833 52,323
Net debt / EBITDA 0.03 -0.64 -0.10
Return on equity (ROE), %¹ 36.3 40.0 29.2
Return on investment (ROI), %¹ 31.5 33.0 21.8
Equity ratio, %¹ 49.2 53.3 46.4
Gearing, %¹ 2.2 -39.3 -6.1
Gross investments, EUR 1,000¹ 999 207 1,533
% of net sales¹ 0.6 0.1 1.2
Employee salaries, wages and bonuses, EUR 1,000 24,155 21,273 19,429
Average personnel 434 401 434
Personnel at the end of the financial year 459 409 422
14
Key figures of the Group and formulas for the key figures
Per-share key figures
2022 2021 2020
Earnings per share (EPS), EUR¹ ² 0.56 0.60 0.33
Equity per share, EUR¹ ² 1.37 1.72 1.29
Dividend per share, EUR² 0.34³ 0.72 0.20
Dividend per profit, %¹ 60.7³ 119.6 61.0
Effective dividend yield, % 3.9³ 4.3 2.2
P/E ratio¹ 15.5 28.1 27.7
Average number of shares outstanding 40,623,999 40,554,370 40,549,170
Number of shares outstanding at the end of the period 40,571,380 40,582,370 40,549,170
Effective dividend yield
%
0
1
2
3
4
5
2020
2.2
4.3 3.9
2021 2022³
P/E ratio
EUR
0
5
10
15
20
25
30
35
2020¹
27.7 28.1
15.5
2021 2022
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
2020¹ ²
0.33
0.6 0.56
2021² 2022
Earnings per share
EUR
Dividend per share
EUR
0
0.2
0.4
0.6
0.8
2020²
0.20
0.72
0.34
2021² 2022³
¹ The figures for 2020 have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision.
Additional information is presented in the accounting principles of Financial Statements 2021, on p. 33–34.
² Per-share key figures have been calculated and the figures for the comparable year have been restated using the new total number of shares following the issuance
of shares without payment (share split), in accordance with the decision made by the AGM on 12 April 2022.
³ The Board of Directors of Marimekko proposed on 15 February 2023 to the AGM on 13 April 2023 that a dividend of EUR 0.34 per share is paid for 2022.
15
Comparable EBITDA, EUR
Operating result - depreciation - impairments - items affecting comparability
Comparable operating result, EUR
Operating result - items affecting comparability in operating result
Comparable operating result margin, %
(Operating result - items affecting comparability in operating result) x 100 / Net sales
Earnings per share (EPS), EUR
(Profit before taxes - income taxes) / Adjusted number of shares (average for the financial year)
Comparable earnings per share (EPS), EUR
(Comparable profit before taxes - income taxes on comparable profit) / Adjusted number of shares (average for the financial year)
Equity per share, EUR
Shareholders’ equity / Number of shares, 31 December
Return on equity (ROE), %
Rolling 12 months (Profit before taxes - income taxes) x 100 / Shareholders’ equity (average)
Return on investment (ROI), %
Rolling 12 months (Profit before taxes + interest and other financial expenses) x 100 /
Balance sheet total - non-interest-bearing liabilities (average)
Equity ratio, %
Shareholders’ equity x 100 / (Balance sheet total - advances received)
Gearing, %
Interest-bearing net debt x 100 / Shareholders’ equity
Net working capital, EUR
Inventories + trade and other receivables + current tax assets - tax liabilities - current provisions - trade and other payables
Net debt / EBITDA
Interest-bearing net debt / Comparable rolling 12-month EBITDA
Formulas for key figures
Key figures of the Group and formulas for the key figures
Reconciliation of alternative key figures to IFRS
(EUR million) 2022 2021 2020
Items affecting comparability
Employee benefit expenses -0.1 - -
Restructuring costs - - -0.8
Items affecting comparability in operating profit -0.1 - -0.8
EBITDA¹ 39.9 43.1 31.3
Employee benefit expenses 0.1 - -
Restructuring costs - - 0.8
Comparable EBITDA¹ 40.0 43.1 32.1
Operating profit¹ 30.2 31.2 18.8
Employee benefit expenses 0.1 - -
Restructuring costs - - 0.8
Comparable operating profit¹ 30.4 31.2 19.6
Net sales 166.5 152.2 123.6
Operating profit margin, %¹ 18.2 20.5 15.2
Comparable operating profit margin, %¹ 18.2 20.5 15.9
Items affecting comparability are exceptional transactions that are not related to the company’s regular
business operations, such as costs associated with employee benefits and restructuring costs. The Group’s
management exercises its discretion when making decisions regarding the classification of items affecting
comparability.
¹ The figures for 2020 have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision.
Additional information is presented in the accounting principles of Financial Statements 2021, on p. 33–34.
16
Consolidated financial statements, IFRS
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) Note 1 Jan.–31 Dec. 2022 1 Jan.–31 Dec. 2021
NET SALES 1. 166,515 152,227
Other operating income 2. 108 148
Change in inventories of finished goods
and work in progress 7,721 3 151
Raw materials and consumables 3. -72,115 -61,484
Employee benefit expenses 4. -30,846 -28,239
Depreciation and impairments 5. -9,651 -11,874
Other operating expenses 6. -31,497 -22,680
OPERATING PROFIT 30,236 31,249
Financial income 7. 1,241 851
Financial expenses 8. -2,339 -1,403
-1,097 -552
RESULT BEFORE TAXES 29,139 30,697
Income taxes 9. -6,430 -6,289
NET RESULT FOR THE PERIOD 22,708 24,408
Distribution of net result to equity holders
of the parent company 22,708 24,408
Basic and diluted earnings per share
calculated on the result attributable to equity
holders of the parent company, EUR¹ 10. 0.56 0.60
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 1 Jan.–31 Dec. 2022 1 Jan.–31 Dec. 2021
Net result for the period 22,708 24,408
Items that could be reclassified to profit or loss
at a future point in time
Change in translation difference -40 -108
COMPREHENSIVE RESULT FOR THE PERIOD 22,668 24,300
Distribution of net result to equity holders of the parent company 22,668 24,300
¹ Per-share key figures have been calculated and the figures for the comparable year have been
restated using the new total number of shares following the issuance of shares without payment
(share split), in accordance with the decision made by the AGM on 12 April 2022.
The notes are an integral part of the financial statements.
17
Consolidated financial statements, IFRS
CONSOLIDATED BALANCE SHEET
(EUR 1,000) Note 31 Dec. 2022 31 Dec. 2021
ASSETS
NON-CURRENT ASSETS
Intangible assets 11.1 288 487
Tangible assets 11.2 34,560 33,187
Other financial assets 11.3, 17. 512 533
Deferred tax assets 14. 748 942
CURRENT ASSETS
Inventories 12.1 33,784 25,983
Trade and other receivables 12.2 11,983 12,029
Cash and cash equivalents 17. 32,711 59,726
ASSETS, TOTAL 114,587 132,887
(EUR 1,000) Note 31 Dec. 2022 31 Dec. 2021
SHAREHOLDERS’ EQUITY AND LIABILITIES
EQUITY ATTRIBUTABLE TO EQUITY HOLDERS
OF THE PARENT COMPANY
Share capital 13. 8,040 8,040
Reserve for invested non-restricted equity 13. 1,228 1,228
Treasury shares 13. -541 -210
Translation differences -122 -81
Retained earnings 46,820 60,856
Shareholders’ equity, total 55,425 69,833
NON-CURRENT LIABILITIES
Lease liabilities 15.1, 20. 25,277 21,976
CURRENT LIABILITIES
Trade and other payables 16. 24,752 28,272
Current tax liabilities 416 2,505
Lease liabilities 15.2, 20. 6,547 8,503
Financial liabilities 17., 20. 2,169 1,798
Liabilities, total 59,162 63,055
SHAREHOLDERS’ EQUITY AND LIABILITIES, TOTAL 114,587 132,887
The notes are an integral part of the financial statements.
18
Consolidated financial statements, IFRS
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1 Jan.–31 Dec. 2022 1 Jan.–31 Dec. 2021
CASH FLOW FROM OPERATING ACTIVITIES
Net result for the period 22,708 24,408
Adjustments
Depreciation and impairments 9,651 11,874
Financial income and expenses 1,097 552
Taxes 6,430 6,289
Share-based payments 750 509
Cash flow before change in working capital 40,636 43,631
Change in working capital -11,212 -2,225
Increase (-) / decrease (+) in current non-interest-bearing
trade receivables 49 -4,152
Increase (-) / decrease (+) in inventories -7,809 -3,477
Increase (+) / decrease (-) in current non-interest-bearing liabilities -3,452 5,404
Cash flow from operating activities before financial items and taxes 29,424 41,407
Paid interest and payments on other financial expenses -1,130 -1,271
Interest received and payments on other financial income 166 31
Taxes paid -8,319 -4,265
CASH FLOW FROM OPERATING ACTIVITIES 20,141 35,902
(EUR 1,000) 1 Jan.–31 Dec. 2022 1 Jan.–31 Dec. 2021
CASH FLOW FROM INVESTING ACTIVITIES
Investments in tangible and intangible assets -999 -910
CASH FLOW FROM INVESTING ACTIVITIES -999 -910
CASH FLOW FROM FINANCING ACTIVITIES
Short-term loans drawn 1,049 932
Short-term loans repaid -665 -
Acquisition of treasury shares -454 -
Payments of lease liabilities -8,485 -10,247
Dividends paid -37,372 -7,299
CASH FLOW FROM FINANCING ACTIVITIES -45,927 -16,613
Change in cash and cash equivalents -26,784 18,378
Cash and cash equivalents at the beginning of the period 59,726 41,045
Effects of exchange rate fluctuations -230 303
Cash and cash equivalents at the end of the period 32,711 59,726
The notes are an integral part of the financial statements.
19
Consolidated financial statements, IFRS
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Equity attributable to equity holders of the parent company
Reserve for invested
Treasury Translation Retained Shareholders’
(EUR 1,000) Share capital non-restricted equity shares differences earnings equity total
Shareholders’ equity, 1 Jan. 2021 8,040 1,228 -315 26 43,343 52,323
Comprehensive result
Net result for the period 24,408 24,408
Translation differences -108 -108
Total comprehensive result for the period -108 24,408 24,300
Transactions with owners
Dividends paid -7,299 -7,299
Share-based payments 104 404 509
Shareholders’ equity, 31. Dec. 2021 8,040 1,228 -210 -81 60,856 69,833
Shareholders’ equity, 1 Jan. 2022 8,040 1,228 -210 -81 60,856 69,833
Comprehensive result
Net result for the period 22,708 22,708
Translation differences -40 -40
Total comprehensive result for the period -40 22,708 22,668
Transactions with owners
Dividends paid -37,372 -37,372
Share-based payments 123 627 750
Acquisition of own shares -454 -454
Shareholders’ equity, 31. Dec. 2022 8,040 1,228 -541 -122 46,820 55,425
The notes are an integral part of the financial statements.
20
Consolidated financial statements, IFRS
21
Consolidated financial statements, IFRS
22
Consolidated financial statements, IFRS
23
Consolidated financial statements, IFRS
24
Consolidated financial statements, IFRS
25
Consolidated financial statements, IFRS
26
Consolidated financial statements, IFRS
27
Consolidated financial statements, IFRS
28
Consolidated financial statements, IFRS
29
Consolidated financial statements, IFRS
¹ Per-share key figures have been calculated and the figures for the comparable year have been restated using the new total number of shares
following the issuance of shares without payment (share split), in accordance with the decision made by the AGM on 12 April 2022.
30
Consolidated financial statements, IFRS
31
Consolidated financial statements, IFRS
32
Consolidated financial statements, IFRS
33
11.2 Tangible assets
2021
Right-of-use Right-of-use assets, Advance payments
Buildings and Machinery and assets, buildings machinery and and acquisitions
(EUR 1,000) Land structures equipment and structures equipment in progress Total
Acquisition cost, 1 Jan. 2021 55 6,890 22,015 57,728 402 160 87,249
Translation differences 55 291 586 932
Increases 7 3,379 47 47 3,480
Transfers between categories 47 -207 -160
Acquisition cost, 31 Dec. 2021 55 6,945 22,360 61,693 448 91,501
Accumulated depreciation, 1 Jan. 2021 4,750 19,668 21,306 256 45,981
Translation differences 52 292 447 791
Depreciation during the financial year 311 577 10,567 88 11,542
Accumulated depreciation, 31 Dec. 2021 5,113 20,537 32,320 344 58,314
Book value, 31 Dec. 2021 55 1,832 1,823 29,373 105 33,187
Consolidated financial statements, IFRS
34
Consolidated financial statements, IFRS
35
Consolidated financial statements, IFRS
36
Consolidated financial statements, IFRS
37
Consolidated financial statements, IFRS
38
Consolidated financial statements, IFRS
39
Consolidated financial statements, IFRS
40
Consolidated financial statements, IFRS
41
Parent company financial statements, FAS
PARENT COMPANY INCOME STATEMENT
(EUR 1,000) Note 1 Jan.–31 Dec. 2022 1 Jan.–31 Dec. 2021
NET SALES 1. 160,601 145,942
Other operating income 2. 102 143
Change in inventories of finished goods and work in progress 7,100 3,744
Materials and services 3. -71,611 -60,904
Personnel expenses 4. -24,659 -22,093
Depreciation and impairments 5. -1,426 -1,289
Other operating expenses 6. -41,273 -34,890
OPERATING PROFIT 28,835 30,655
Financial income and expenses 7. 85 401
RESULT BEFORE APPROPRIATIONS AND TAXES 28,920 31,056
Appropriations 8. -213 -36
Income taxes 9. -5,857 -6,154
NET RESULT FOR THE PERIOD 22,850 24,866
42
Parent company financial statements, FAS
PARENT COMPANY BALANCE SHEET
(EUR 1,000) Note 31 Dec. 2022 31 Dec. 2021
ASSETS
FIXED ASSETS
Intangible assets 10.1 5,002 3,794
Tangible assets 10.2 1,956 1,836
Investments 10.3
Participations in Group companies 1,906 1,906
Other shares and participations 189 209
Other receivables 324 2,418 324 2,439
FIXED ASSETS, TOTAL 9,376 8,069
CURRENT ASSETS
Inventories 11. 31,018 23,820
Current receivables 12. 22,199 21,970
Cash on hand and at banks 26,616 54,677
CURRENT ASSETS, TOTAL 79,833 100,467
ASSETS, TOTAL 89,209 108,535
(EUR 1,000) Note 31 Dec. 2022 31 Dec. 2021
SHAREHOLDERS’ EQUITY AND LIABILITIES
SHAREHOLDERS’ EQUITY 13.
Share capital 8,040 8,040
Reserve for invested non-restricted equity 1,228 1,228
Treasury shares -541 -210
Retained earnings 25,503 38,132
Net result for the period 22,850 24,866
SHAREHOLDERS’ EQUITY, TOTAL 57,080 72,055
ACCUMULATED APPROPRIATIONS 14. 1,124 910
LIABILITIES 15.
Current liabilities 31,005 35,570
LIABILITIES, TOTAL 31,005 35,570
SHAREHOLDERS’ EQUITY AND LIABILITIES, TOTAL 89,209 108,535
43
Parent company financial statements, FAS
PARENT COMPANY CASH FLOW STATEMENT
(EUR 1,000) 1 Jan.–31 Dec. 2022 1 Jan.–31 Dec. 2021
CASH FLOW FROM OPERATIONS
Net result for the period 22,850 24,866
Adjustments
Depreciation and impairments 1,426 1,289
Change in depreciation difference 213 36
Financial income and expenses -85 -401
Taxes 5,857 6,154
Cash flow before change in working capital 30,261 31,943
Change in working capital
Increase (-) / decrease (+) in current non-interest-bearing trade receivables -57 -4,971
Increase (-) / decrease (+) in inventories -7,198 -4,054
Increase (+) / decrease (-) in current non-interest-bearing liabilities -2,613 7,134
Cash flow from operations before financial items and taxes 20,394 30,053
Paid interest and payments on other financial expenses -276 -437
Interest received and payments on other financial income 485 133
Taxes paid -7,878 -4,284
CASH FLOW FROM OPERATIONS 12,724 25,465
(EUR 1,000) 1 Jan.–31 Dec. 2022 1 Jan.–31 Dec. 2021
CASH FLOW FROM INVESTMENTS
Investments in tangible and intangible assets -2,753 -2,199
CASH FLOW FROM INVESTMENTS -2,753 -2,199
CASH FLOW FROM FINANCING
Acquisition of treasury shares -454 -
Dividends paid -37,372 -7,299
CASH FLOW FROM FINANCING -37,826 -7,299
Change in cash and cash equivalents -27,855 15,968
Cash and cash equivalents at the beginning of the financial year 54,677 38,513
Effects of exchange rate fluctuations -206 196
Cash and cash equivalents at the end of the financial year 26,616 54,677
44
Parent company financial statements, FAS
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
ACCOUNTING POLICY
Marimekko Corporation’s financial statements have
been prepared in accordance with the legislation and
regulations that are in force in Finland. The financial
year of the company is the calendar year.
Valuation of fixed assets
Fixed assets are recorded in the balance sheet at the
original acquisition cost less depreciation according
to plan. Depreciation according to plan has been
calculated using straight-line depreciation on the
estimated useful life of the fixed assets.
Periods of depreciation:
· intangible rights 5 years
· computer software 3–5 years
· other capitalized expenditure 3–15 years
· buildings 30 years
· machinery and equipment 5–15 years.
Shares has been valuated at fair value in
accordance with IFRS 9 standard.
More information on valuation can be found in the
notes to the consolidated financial statements.
Derivatives
The company has derivatives that are valued in fair
value through profit and loss in accordance with
IFRS, KILA’s (Finnish accounting board’s) statement
and Finnish Accounting law 5:2a. Hedge accounting
is not applied to derivatives. According to the fair
value hierarchy, currency derivatives are valued
according to level 2, where the fair values are based
on observable inputs on the balance sheet date,
which are other than quoted prices.
Inventories
Inventories are presented at the acquisition cost or
at the lower probable net realisation value. The value
of inventories does not include any share of fixed
purchasing and manufacturing costs.
Pension commitments
The pension security of the company’s personnel has
been arranged under the statutory employee pension
plan (TyEL) through a pension insurance company.
Items denominated in foreign currency
The foreign-currency-denominated receivables and
liabilities of the company have been converted to
euro amounts using the exchange rate quoted by the
European Central Bank on the closing date.
Revenue recognition
Revenue is recognized when the buyer obtains
control of the product – that is when the significant
risks and rewards of ownership have been
transferred to the buyer. In wholesale, this is mainly
the moment when the goods are handed over to the
customer as set forth in the agreed delivery clause.
In wholesale and export trade, the terms of delivery
determine the point of time when the customer
obtains control of the goods. In retail where cash or a
credit card is used as means of payment, the income
is recognized at the time of sale.
More information on revenue recognition can
be found in the notes to the consolidated financial
statements.
Leasing
Leasing payments are treated as rental expenditures.
Appropriations
Appropriations consist of depreciation differences
due to differences between accounting and tax
depreciation of tangible and intangible assets.
Taxes
Income taxes include income taxes calculated on
the result for the financial year and taxes paid or
refunded in previous financial years. Deferred taxes
are not recognized in the parent company’s income
statement and balance sheet.
Branches
Branches have been consolidated into Marimekko
Corporation’s accounts and intercompany items
have been eliminated. Marimekko Corporation has
branches in France and Belgium from which the
Belgian branch has been discontinued during 2022.
45
Parent company financial statements, FAS
NOTES TO THE INCOME STATEMENT
1. NET SALES BY MARKET AREA
(EUR 1,000) 2022 2021
Finland 105,589 92,299
Other countries 55,012 53,643
Total 160,601 145,942
2. OTHER OPERATING INCOME
(EUR 1,000) 2022 2021
Rental income 54 54
Other income 48 89
Total 102 143
3. MATERIALS AND SERVICES
(EUR 1,000) 2022 2021
Materials and supplies
Purchases during the financial year 47,301 40,368
Increase (-) / decrease (+) in inventories -88 -326
Total 47,213 40,043
External services 24,398 20,861
Total 71,611 60,904
4. PERSONNEL EXPENSES
(EUR 1,000) 2022 2021
Salaries, wages and bonuses 20,692 18,488
Pension and pension insurance payments 3,358 2,651
Other indirect social expenditure 609 954
Total 24,659 22,093
Salaries and bonuses for management
Members of the Board of Directors and the President and CEO 1,305 1,272
Itemized in the note 19 to the consolidated financial statements.
Average number of employees
2022 2021
Salaried employees 343 306
Production personnel 21 22
Total 364 328
5. DEPRECIATION AND IMPAIRMENTS
(EUR 1,000) 2022 2021
Intangible assets
Intangible rights 34 31
Computer software 811 557
Other capitalized expenditure 170 193
Total 1,015 781
Tangible assets
Buildings and structures 5 5
Machinery and equipment 405 502
Total 410 508
Total 1,426 1,289
46
Parent company financial statements, FAS
6. OTHER OPERATING EXPENSES
(EUR 1,000) 2022 2021
Leases 7,224 6,595
Marketing 12,658 12,526
Other expenses 21,391 15,768
Total 41,273 34,890
Auditor’s fee
(EUR 1,000) 2022 2021
KPMG
Audit 82 66
Other services 29 15
Total 111 81
7. FINANCIAL INCOME AND EXPENSES
(EUR 1,000) 2022 2021
Other interest and financial income
From Group companies 325 116
From others 1,236 372
Change in fair value of shares - 191
Total 1,561 679
Interest and other financial expenses
Change in fair value of shares 21 -
Change in fair value of derivatives 42 -
To other than Group companies 1,413 278
Total 1,476 278
Financial income and expenses, total 85 401
Financial income and expenses include exchange rate differences (net)
Realized 44 -154
Unrealized -75 521
Total -31 367
8. APPROPRIATIONS
(EUR 1,000) 2022 2021
Change in depreciation difference -213 -36
9. INCOME TAXES
(EUR 1,000) 2022 2021
Income taxes on operations 5,857 6,154
47
Parent company financial statements, FAS
NOTES TO THE BALANCE SHEET
10. FIXED ASSETS
10.1 Intangible assets
2022
Advance payments
Intangible Computer Other capitalized and acquisitions
(EUR 1,000) rights software expenditure in progress Total
Acquisition cost, 1 Jan. 2022 1,815 8,945 8,233 519 19,512
Increases 54 223 284 1,662 2,223
Transfers between categories 1,104 -1,104
Decreases -172 -1,054 -1,226
Re-classification -2 -2
Acquisition cost, 31 Dec. 2022 1,866 10,100 7,463 1,077 20,507
Accumulated depreciation, 1 Jan. 2022 1,711 7,480 6,527 15,717
Depreciation during the financial year 34 811 170 1,015
Accumalated depreciaton of decreases -172 -1,054 -1,226
Accumulated depreciation, 31 Dec. 2022 1,745 8,118 5,642 15,505
Book value, 31 Dec. 2022 122 1,983 1,821 1,077 5,002
2021
Advance payments
Intangible Computer Other capitalized and acquisitions
(EUR 1,000) rights software expenditure in progress Total
Acquisition cost, 1 Jan. 2021 1,781 7,927 8,520 160 18,389
Increases 65 386 991 1,442
Transfers between categories 632 -632
Decreases -32 -287 -319
Acquisition cost, 31 Dec. 2021 1,815 8,945 8,233 519 19,512
Accumulated depreciation, 1 Jan. 2021 1,712 6,922 6,620 15,255
Depreciation during the financial year 31 557 193 781
Accumulated depreciaton of decreases -32 -287 -319
Accumulated depreciation, 31 Dec. 2021 1,711 7,480 6,527 15,717
Book value, 31 Dec. 2021 103 1,466 1,707 519 3,794
48
Parent company financial statements, FAS
10.2 Tangible assets
2022
Advance payments
Land and Buildings and Machinery and Other tangible and acquisitions
(EUR 1,000) water areas structures equipment tangible assets in progress Total
Acquisition cost, 1 Jan. 2022 38 417 15,878 28 16,362
Increases 328 202 530
Transfers between categories 121 -121
Decreases -132 -2,862 -2,994
Acquisition cost, 31 Dec. 2022 38 286 13,465 28 81 13,898
Accumulated depreciation, 1 Jan. 2022 343 14,184 14,526
Depreciation during the financial year 5 405 410
Cumulative depreciation of decreases -132 -2,862 -2,994
Accumulated depreciation, 31 Dec. 2022 216 11,727 11,943
Book value, 31 Dec. 2022 38 70 1,738 28 81 1,956
2021
Advance payments
Land and Buildings and Machinery and Other tangible and acquisitions
(EUR 1,000) water areas structures equipment tangible assets in progress Total
Acquisition cost, 1 Jan. 2021 38 417 15,825 28 16,308
Increases 7 47 54
Transfers between categories 47 -47
Acquisition cost, 31 Dec. 2021 38 417 15,878 28 16,362
Accumulated depreciation, 1 Jan. 2021 338 13,681 14,019
Depreciation during the financial year 5 502 508
Accumulated depreciation, 31 Dec. 2021 343 14,184 14,526
Book value, 31 Dec. 2021 38 75 1,695 28 1,836
49
Parent company financial statements, FAS
10.3 Investments
2022
Shares in Group Other shares and Other
(EUR 1,000) companies participations receivables Total
Acquisition cost, 1 Jan. 2022 2,196 209 324 2,729
Changes in value -21 -21
Transfers between groups -290 -290
Acquisition cost, 31 Dec. 2022 1,906 189 324 2,418
Book value, 31 Dec. 2022 1,906 189 324 2,418
2021
Shares in Group Other shares and Other
(EUR 1,000) companies participations receivables Total
Acquisition cost, 1 Jan. 2021 2,196 16 2,212
Increases 81 324 405
Changes in value 112 112
Acquisition cost, 31 Dec. 2021 2,196 209 324 2,729
Impairments, 31 Dec. 2021 290 290
Book value, 31 Dec. 2021 1,906 209 324 2,439
11. INVENTORIES
(EUR 1,000) 2022 2021
Raw materials and consumables 4,994 4,906
Finished products/goods 26,014 18,914
Advance payments 10 -
Total 31,018 23,820
12. CURRENT RECEIVABLES
(EUR 1,000) 2022 2021
Trade receivables 9,946 10,293
Receivables from Group companies
Trade receivables 5,499 5,380
Loan receivables 5,517 5,386
Prepaid expenses and accrued income 228 -
Total 11,244 10,766
Other receivables 114 96
Prepaid expenses and accrued income 895 815
Total 22,199 21,970
Prepaid expenses and accrued income
Royalty receivables 224 302
Other prepaid expenses and accrued income 671 513
Total 895 815
50
Parent company financial statements, FAS
13. SHAREHOLDERS’ EQUITY
(EUR 1,000) 2022 2021
Share capital, 1 Jan. 8,040 8,040
Share capital, 31 Dec. 8,040 8,040
Reserve for invested non-restricted equity, 1 Jan. 1,228 1,228
Reserve for invested non-restricted equity, 31 Dec. 1,228 1,228
Treasury shares, 1 Jan. -210 -315
Shares transferred as part of rewards 123 104
Acquisition of own shares -454 -
Treasury shares, 31 Dec. -541 -210
Retained earnings, 1 Jan. 62,997 45,535
Dividends paid -37,372 -7,299
Shares transferred as part of rewards -123 -104
Retained earnings, 31 Dec. 25,503 38,132
Net result for the period 22,850 24,866
Shareholders’ equity, total 57,080 72,055
Calculation of distributable funds
(EUR 1,000) 2022 2021
Retained earnings 25,503 38,132
Net result for the period 22,850 24,866
Treasury shares -541 -210
Reserve for invested non-restricted equity 1,228 1,228
Dividends paid for previous year¹ - -8,124
Total 49,040 55,891
14. ACCUMULATED APPROPRIATIONS
(EUR 1,000) 2022 2021
Accumulated depreciation difference
Intangible rights 19 18
Other capitalized expenditure 616 429
Machinery and equipment 356 328
Buildings and structures 132 135
Total 1,124 910
15. LIABILITIES
Current liabilities
(EUR 1,000) 2022 2021
Advances received 1,850 1,895
Trade payables 9,293 11,790
Debts to Group companies
Trade payables 1,660 1,328
Accrued liabilities and deferred income 6,207 7,451
Other current liabilities 4,697 3,763
Accrued liabilities and deferred income 7,298 9,343
Total 31,005 35,570
Accrued liabilities and deferred income
Wages and salaries with social security contributions 4,409 4,613
Accrued income tax liabilities 407 2,429
Other accrued liabilities and deferred income 2,482 2,302
Total 7,298 9,343
¹ The AGM held on 14 April 2021 authorized the Board of Directors to decide on the payment of a maximum dividend of EUR 1.00
per share in one or several instalments at a later stage. After the end of the financial year, the Board made use of the authorization
and decided that a dividend of EUR 1.00 per share be paid for 2020 in one instalment. This is taken into account in the calculation
of distributable funds for 2021.
51
Parent company financial statements, FAS
16. GUARANTEES, CONTINGENT LIABILITIES AND OTHER COMMITMENTS
(EUR 1,000) 2022 2021
Leasing liabilities
Payments due in the following financial year 494 462
Payments due later 414 485
Total 907 947
Liabilities related to lease agreements
Payments due in the following financial year 4,919 5,985
Payments due later 24,488 22,831
Total 29,407 28,816
Guarantees on behalt of subsidiaries 2,403 2,316
Indirect liability for rent and other guarantees 4,089 4,068
17. DERIVATIVES
(EUR 1,000) 2022 2021
Nominal value
Currency derivatives 1,417 -
Fair value
Negative fair values -42 -
Total -42 -
Age distribution – Nominal value
Currency derivatives
Less than a year 1,417 -
Total 1,417 -
52
Signatures to the financial statements and
the report of the Board of Directors
Helsinki, 15 February 2023
Mika Ihamuotila Teemu Kangas-Kärki Carol Chen
Chair of the Board Vice Chair of the Board Member of the Board
Mikko-Heikki Inkeroinen Tomoki Takebayashi Marianne Vikkula
Member of the Board Member of the Board Member of the Board
Tiina Alahuhta-Kasko
President and CEO
THE AUDITOR’S NOTE
A report on the audit performed has been issued today.
Helsinki, 15 February 2023
KPMG Oy Ab
Heli Tuuri
Authorized Public Accountant, KHT
53
TO THE ANNUAL GENERAL MEETING OF MARIMEKKO CORPORATION
REPORT ON THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of Marimekko Corporation (business identity code 0111316-2) for the
year ended 31 December, 2022. The financial statements comprise the consolidated balance sheet, income
statement, statement of comprehensive income, statement of changes in equity, statement of cash flows and
notes, including a summary of significant accounting policies, as well as the parent company’s balance sheet,
income statement, statement of cash flows and notes.
In our opinion
• the consolidated financial statements give a true and fair view of the group’s financial position, 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 financial statements in
Finland and comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit and Remuneration Committee.
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.
We are independent of the parent company and of the group companies in accordance with the ethical
requirements that are applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical
responsibilities in accordance with these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent
company and group companies are in compliance with laws and regulations applicable in Finland regarding
these services, and we have not provided any prohibited non-audit services referred to in Article 5(1) of
regulation (EU) 537/2014. The non-audit services that we have provided have been disclosed in note 6 to the
consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based on
our professional judgement and is used to determine the nature, timing and extent of our audit procedures and to
evaluate the effect of identified misstatements on the financial statements as a whole. The level of materiality we set
is based on our assessment of the magnitude of misstatements that, individually or in aggregate, could reasonably be
expected to have influence on the economic decisions of the users of the financial statements. We have also taken
into account misstatements and/or possible misstatements that in our opinion are material for qualitative reasons for
the users of the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the
financial statements of the current period. These matters were addressed in the context of our audit of the financial
statements as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters. The significant risks of material misstatement referred to in the EU Regulation No 537/2014 point (c) of
Article 10(2) are included in the description of key audit matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of
whether there was evidence of management bias that represented a risk of material misstatement due to fraud.
Auditor’s Report
54
THE KEY AUDIT MATTER
Revenue recognition (”Revenue recognition and net sales” in the consolidated accounting principles and note 1)
Valuation and existence of inventory (“Inventories” in the consolidated accounting principles and note 12.1)
HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Marimekko Group’s revenue is generated from wholesale and retail sales of clothes, bags and accessories, and
interior decoration products as well as licensing income. Group’s net sales, EUR 166.5 million, is a significant
item in the financial statements consisting of a large number of transactions from different revenue streams as
well as diverse sales contracts and terms with customers.
Wholesale contracts include several different delivery terms and might contain right of return, which
determine when the ownership of the product is transferred to the customer. Retail sales mainly consists of
small transactions paid by cash or payment cards and the revenue is recognized when the product is sold to the
customer. Revenue from licensing is recognized in accordance with the terms of the contract.
Revenue recognition is a key audit matter due to a large number of transactions as well as for a risk that
revenue is recognized in an incorrect period.
Marimekko purchases, manufactures and sells consumer goods and is subject to changing consumer demands.
Inventory consists of fabrics and other raw materials as well as half-finished and finished goods including
clothes, bags, accessories and interior decoration products.
Inventories are valued at the lower of acquisition cost or probable net realizable value. Manufactured
inventories include a share of directly attributable general costs of production.
Inventory value EUR 33.8 million is a significant item in Marimekko’s balance sheet and inventories are in
several locations. Inventory accounting includes manual processes in valuation and compiling the inventory
balances and it increases, therefore the risk for human errors. In addition, inventory include management’s
judgement on probable net realizable value.
In our audit of valuation and existence of inventories we have tested the company’s key controls and performed
substantive audit procedures, among others with data-analytics methods.
• We have attended physical stock takings in selected inventory locations. We have analyzed company’s own
results of stocktaking differences and how they have been resolved.
• We have compared the value of selected inventory items to the latest purchase prices.
• We have tested slow-moving inventory items as well as exceptional values in inventory accounting with data
analytics methods.
• We have compared the unit prices of selected inventory items to their sales prices
In addition, we considered the appropriateness of the disclosure regarding inventory.
In our audit of different revenue streams, we have tested company’s key controls related to sales and
performed substantive audit procedures, among others with data-analytics methods.
• We have formed an understanding of accounting principles and practices in different revenue streams and
evaluated the appropriateness of the revenue recognition principles in relation to IFRS.
• We have tested revenue, discounts, campaign discounts and margins in both wholesale and retail sales with
data-analytics methods.
• For wholesale we have selected a sample of sales transactions comparing them to sales invoices, contracts,
delivery notes and payments received.
• For retail sales we have reviewed sales processes and reconciliation routines for cash and payment card
transactions in selected retail stores.
• We have tested that the revenue has been recognized in the right financial period by comparing sales
transactions, invoices and delivery terms to actual deliveries as well as by testing possible return provisions
and a sample of credit invoices made in 2023.
• We have also compared selected accounts receivables to the confirmations received from counterparties.
• We have reviewed the most significant licensing contracts and that the revenue has been recognized in
accordance with the contract terms.
In addition, we considered the appropriateness of the disclosure regarding net sales.
Auditor’s Report
55
Responsibilities of the Board of Directors and the President and CEO for the Financial Statements
The Board of Directors and the President and CEO are responsible for the preparation of consolidated financial
statements that give a true and fair view in accordance with International Financial Reporting Standards
(IFRS) as adopted by the EU, and of financial statements that give a true and fair view in accordance with the
laws and regulations governing the preparation of financial statements in Finland and comply with statutory
requirements. The Board of Directors and the President and CEO 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 President and CEO are responsible
for assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as
applicable, matters relating to going concern and using the going concern basis of accounting. The financial
statements are prepared using the going concern basis of accounting unless there is an intention to liquidate
the parent company or the group or cease operations, or there is no realistic alternative but to do so.
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 conducted
in accordance with good auditing practice will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they
could reasonably be expected to influence the economic decisions of users taken on the basis of the financial
statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and
maintain professional skepticism throughout the audit. We also:
• 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 President and CEO’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.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and communicate with them all relationships and other matters
that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the financial statements of the current period and are therefore the
key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
to outweigh the public interest benefits of such communication.
Auditor’s Report
56
OTHER REPORTING REQUIREMENTS
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on April 12, 2018, and our appointment
represents a total period of uninterrupted engagement of 5 years.
Other Information
The Board of Directors and the President and CEO are responsible for the other information. The other
information comprises the report of the Board of Directors and the information included in the Annual Report,
but does not include the financial statements and our auditor’s report thereon. We have obtained the report of
the Board of Directors prior to the date of this auditor’s report, and the Annual Report is expected to be made
available to us after that date. Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other information
identified above and, in doing so, consider whether the other information is materially inconsistent with the
financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
With respect to the report of the Board of Directors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Directors is consistent with the information in
the financial statements and the report of the Board of Directors has been prepared in accordance with the
applicable laws and regulations.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required to
report that fact. We have nothing to report in this regard.
Helsinki February 15, 2023
KPMG OY AB
Heli Tuuri
Authorized Public Accountant, KHT
Auditor’s Report
57
TO THE BOARD OF DIRECTORS OF MARIMEKKO CORPORATION
We have undertaken a reasonable assurance engagement in respect of whether the consolidated
financial statements for the year ended 31 December 2022 included in the digital financial statements
74370053IOY42B9YJ350-2022-12-31-en.zip of Marimekko Corporation (Business ID 0111316-2) have been
marked up with iXBRL markups in accordance with the requirements of Article 4 of EU Delegated
Regulation 2018/815 (ESEF RTS).
The Responsibility of the Board of Directors and the President and CEO
The Board of Directors and the President and CEO are responsible for preparing the report of the Board of
Directors and financial statements (ESEF financial statements) that comply with the requirements of ESEF RTS.
This responsibility includes:
• preparation of ESEF financial statements in XHTML format in accordance with Article 3 of the ESEF RTS
• marking up the primary statements and the notes to the consolidated financial statements, and the company
identification data included in the ESEF financial statements with iXBRL tags in accordance with Article 4 of
the ESEF RTS; and
• ensuring consistency between ESEF financial statements and audited financial statements.
The Board of Directors and the President and CEO are also responsible for such internal control as they deem
necessary to prepare the ESEF financial statements in accordance with the requirements of the ESEF RTS.
Auditor’s Independence and Quality Management
We are independent of the company in accordance with the ethical requirements applicable in Finland,
which apply to the engagement we have performed, and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
The auditor applies International Standard on Quality Management ISQM 1, which requires the firm to design,
implement and operate a system of quality management including policies or procedures regarding compliance
with ethical requirements, professional standards and applicable legal and regulations requirements.
Auditor’s Responsibility
In accordance with the Engagement Letter our responsibility is to express an opinion on whether the marking
up of the consolidated financial statements included in the ESEF financial statements comply in all material
respects with the Article 4 of the ESEF RTS. We conducted our reasonable assurance engagement in
accordance with International Standard on Assurance Engagements 3000.
The engagement involves procedures to obtain evidence whether;
• the primary statements of the consolidated financial statements included in the ESEF financial statements are,
in all material respects, marked up with iXBRL tags in accordance with Article 4 of the ESEF RTS, and;
• whether the notes to the consolidated financial statements and the company identification data included in the
ESEF financial statements data, have been marked up, in all material respects, with iXBRL tags in accordance
with Article 4 of the ESEF RTS; and
• whether the ESEF financial statements and the audited financial statements are consistent with each other.
The nature, timing and the extent of procedures selected depend on practitioner’s judgement. This includes
the assessment of the risks of material departures from the requirements set out in the ESEF RTS, whether due
to fraud or error.
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Opinion
In our opinion, the primary statements of the consolidated financial statements, the notes to the consolidated
financial statements and the company identification data included in the ESEF financial statements of Marimekko
Corporation identified as 74370053IOY42B9YJ350-2022-12-31-en.zip for the year ended 31 December 2022 are,
in all material respects, marked up in compliance with the ESEF Regulatory Technical Standard.
Our audit opinion on the audit of the consolidated financial statements of Marimekko Corporation for the
year ended 31 December 2022 is set out in our Auditor’s Report dated 15 February 2023. In this report, we do not
express any audit opinion or other assurance conclusion on the consolidated financial statements.
Helsinki 20 March 2023
KPMG OY AB
Heli Tuuri
Authorized Public Accountant, KHT
Independent Auditor’s Reasonable Assurance Report on
Marimekko Corporation’s ESEF Financial Statements
58
marimekko.com