1
Financial Statements 2021
2
© Marimekko Corpor ation
Puusepänkatu 4
00880 Helsinki
Finland
Tel. +358 9 758 71
marimekko.com
company.marimekko.com
Marimekko is a Finnish lifestyle design company whose original prints and colors
have brought joy to people’s everyday lives for 70 years already. Our product
portfolio includes high-quality clothing, bags and accessories as well as home
décor items ranging from textiles to tableware.
Since the very beginning, our operations and design philosophy have been
based on longevity: we want to offer our customers timeless, functional and
durable products that give them long-lasting joy.
When Marimekko was founded in 1951, its unparalleled printed fabrics gave it
a strong and unique identity. Today, our own printing factory in Helsinki produces
around a million meters of fabric a year. Serving also as a test laboratory for
our creative community, the modern factory enables us to participate in various
sustainability development projects and thus move the entire industry forward
towards a more sustainable future.
In 2021, brand sales of our products worldwide amounted to 376 million
euros and our net sales were 152 million euros. Globally, there are roughly 150
Marimekko stores, and online store serves customers in 35 countries. Our key
markets are Northern Europe, the Asia-Pacific region and North America.
Contents
Renowned for bold prints
This is voluntary published pdf report, so it does not fulfill the disclosure obligation pursuant to Section 7:5§ of the Securities Markets Act.
Marimekko’s official Financial Statements can be found on the company’s website.
Marimekko in 2021 3
From the President and CEO 4
2021 in a nutshell 6
Financial targets 7
Strategy 8
Sustainability 10
Report of the Board of Directors 2021 12
Share and shareholders 17
Proposal for the distribution of profit 21
Key figures of the Group and formulas for the key figures 22
Financial statements for the financial year 1 January to 31 December 2021 25
Consolidated financial statements, IFRS 26
Consolidated income statement 26
Consolidated balance sheet 27
Consolidated cash flow statement 28
Consolidated statement of changes in shareholders’ equity 29
Notes to the consolidated financial statements 30
Parent company financial statements, FAS 50
Parent company income statement 50
Parent company balance sheet 51
Parent company cash flow statement 52
Notes to the parent company financial statements 53
Signatures to the financial statements and the report of the Board of Directors 61
Auditor’s report 62
Assurance report on ESEF financial statements 66
Statement of non-financial information 2021 67
Corporate governance statement 2021 82
Remuneration report 2021 90
3
Marimekko
in 2021
4
From the President and CEO
The year 2021 was the best in our company’s history.
Our net sales grew by 23 percent to EUR 152.2 million.
The excellent sales performance and higher relative
sales margin significantly improved our operating
profit. Our comparable operating profit increased by
59 percent to EUR 31.2 million, or 20.5 percent of net
sales. I want to take this opportunity to express my
heartfelt gratitude to the entire Marimekko team for
their tremendous work: faced with difficult market
conditions, our personnel have with great passion
and perseverance solved challenges created by the
pandemic while at the same time continuing our efforts
to accelerate our long-term profitable growth.
The key reasons behind our strong performance
included our long-term efforts to modernize our brand
and lifestyle collections, strengthening our digital
business and the omnichannel customer experience as
well as increasing our international brand awareness
from one year to the next. The new operating practices
we have adopted during the pandemic and our agility to
react to the constantly changing operating environment
were also important factors.
The consistent development of our collections is
reflected in our results, and all of our product lines grew
during the year. Growth was strongest in home products
but, in the latter part of the year, the growth of fashion
category also picked up. During the year, we celebrated
our 70th anniversary by launching special collections
of fashion and home products, among other things.
The first collections created under the leadership of
Creative Director Rebekka Bay arrived in our stores at
the turn of the year 2022. We are continuing our efforts
to deepen our customer insight and further develop our
collections and customer experience based on that.
International growth requires not only a product
range that appeals to a global customer base but also
increasing brand awareness. Brand collaborations offer
us the opportunity to introduce a broad international
audience to Marimekko and thereby support our core
business. In 2021, we launched two limited-edition
collections with adidas, a global leader in the sporting
goods and apparel industry. The collections were
well received and provided Marimekko with valuable
visibility around the world. Our Spring/Summer
capsule collection with the Japanese global apparel
retailer Uniqlo, in turn, was one of Uniqlo’s spearhead
collaborations in 2021. In October, we launched our first
limited-edition collaboration products specifically for
the Chinese market together with the specialty coffee
chain Seesaw. In addition to global brand partnerships,
targeted local collaborations in our main markets
are an important way to introduce more and more
5
From the President and CEO
new audiences to Marimekko. Local collaborations
also enable us to increase the local relevance of the
Marimekko brand.
In 2021, our omnichannel retail network was
strengthened further in Asia by the opening of six
new brick-and-mortar stores and Marimekko online
stores in two countries. Online sales are an essential
part of Marimekko’s omnichannel retail strategy.
With this in mind, we redesigned our online store in
May. The digital customer experience was further
enriched during the fall. In addition, customers got to
experience our 70-year-old brand, special collections
and the Marimekko Kioski streetwear at 32 pop-up
stores around the world in 2021. Pop-up stores and
various creative retail concepts represent an important
element of our omnichannel customer experience,
in the development of which we have invested
consistently. We expect their significance to increase
further in the post-pandemic new normal.
We believe that determined efforts to improve
sustainability strongly support Marimekko’s long-term
success. In 2021, we began implementing our new
sustainability strategy, which reflects our increased
ambition and extends to 2025. Its three main principles
and the related targets and action plans cover our
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. Our sustainability-related actions in 2021
included, among others, increasing the share of more
sustainable materials in our products, reducing waste
and extending the life cycle of our products in various
ways. The Marimekko Pre-loved second hand pilot
in our online store, our collaboration with the auction
house Bukowski and our pop-up events offering vintage
products in New York and Copenhagen are examples
of actions that support our goal of Marimekko products
bringing joy to many different consumers – and even
generations – over their lifespan.
A growing proportion of our products are made
from materials that have a less adverse impact on the
environment. In 2021, our first garments, bags and
home products printed with a natural dye obtained from
the woad plant arrived in stores, and we continued our
collaboration projects aimed at the commercialization
of new, more sustainable materials. To reduce waste,
we launched a product range consisting of bags made
from leftover textiles, products printed using leftover
dyes and upcycled home products such as scented
candles. We also piloted the new Marimekko Upcycled
concept in the form of reworked Jokapoika shirts from
earlier collections.
We work to continuously increase our transparency
and we are dedicated to drive positive change through
supplier engagement and industry collaborations.
As part of our new material strategy, we have grown
the share of traceable materials, including organic
cotton and sustainably produced wool. We are
also continuously sharing more product-related
sustainability information to our customers. Marimekko
joined the UN Global Compact initiative in 2021. We are
committed to the 10 principles of the Global Compact
in our own operations and in our value chain. During
the year, we also piloted the extention of supply chain
audits to include the second tier as well. In accordance
with our values, we want to be at the forefront in
promoting sustainability and, through the power of
our example, move the entire industry towards a more
sustainable future.
The coronavirus pandemic continues to affect
business in 2022, but the pandemic became part of
daily life for companies in 2021. Our long-term work
to develop the Marimekko brand and our business as
a whole as well as our success during the pandemic
speak to the effectiveness of our international growth
strategy. The year 2022 is the final year of our current
strategy period. During the year, we will determine our
direction for the next strategy period and review our
long-term financial targets. We are planning to organize
the company’s first Capital Markets Day in the fall of
2022. Marimekko’s positive development over the past
few years, our brand that appeals to an increasingly
broad global audience and the megatrends that support
our growth story – such as the expedited digitization
and consumers’ changing values and growing interest
in sustainability – provide us with an excellent basis
for accelerating our long-term profitable international
growth in the years to come.
In 2022, we will continue our investments in
increasing Marimekko’s brand awareness and
developing digital and omnichannel business as
well as sustainability. In addition, we are continuing
recruitments supporting our growth story and
investments in IT systems. It is important for us to
constantly find new ways to bring joy to our customers’
lives and thereby ensure that our brand keeps
interesting and meaningful to both new audiences
as well as our existing loyal customers.
Tiina Alahuhta-Kasko
6
0
40
120
80
160
2019
151
154
152
2020 2021
0
40
80
120
160
200
In 2021, our net sales grew by 23 percent to EUR 152.2
million. The growth of net sales was driven particularly
by the strong development of wholesale and retail sales
in Finland. Wholesale sales in the Asia-Pacific region
and Scandinavia as well as retail sales in North America
also increased substantially. Net sales were weakened
especially by decreased wholesale sales in the EMEA
region and lower licensing income in the Asia-Pacific
region. Our comparable operating profit grew by 59
percent to EUR 31.2 million. Profit was improved
particularly by the growth of net sales but also by
the stronger relative sales margin.
The key factors behind Marimekko’s strong
performance in 2021 included the company’s long-term
efforts to modernize its brand and lifestyle collections,
strengthening the digital business and the omnichannel
customer experience as well as increasing international
brand awareness from one year to the next. The new
operating practices adopted during the pandemic and
the agility to react to the constantly changing operating
environment were also important factors.
Net sales
152.2
million euros (123.6)
Comparable
operating profit
31.2
million euros (19.6)
Comparable operating
profit margin
20.5
% (15.9)
Comparable
EBITDA
43.1
million euros (32.1)
Cash flow from
operating activities
35.9
million euros (27.5)
Our key markets
Northern Europe, the Asia-Pacific region
and North America
Around 150 Marimekko stores
Flagship stores in Helsinki, Stockholm,
Tokyo, Sydney and New York
Online store
reaches our customers in 35 countries
We employ
about 410 people
Our share is quoted on
Nasdaq Helsinki Ltd
Net sales by product line, 2021
(2020)
29% (32)
52% (46)
20% (22)
Fashion
Home
Bags & Accessories
Net sales by market area, 2021
(2020)
61% (58)
8% (8)
8% (11)
6% (5)
17% (18)
Finland
Scandinavia
EMEA
North America
Asia-Pacific
2021 in a nutshell
Net sales by channel,
e-commerce included
Wholesale sales
Retail sales
Number of stores and shop-in-shops
EUR million Number of
stores
7
Financial targets
Long-term financial goals
• Annual growth in net sales over 10%
• Operating profit margin 15%
• Ratio of net debt to EBITDA at year end max. 2
• The intention is to pay a yearly dividend; percentage of earnings
per share allocated to dividends at least 50%
%
Growth in net sales
-5
0
5
10
15
20
25
30
2019
12.1
-1.0
23.2
2020 2021
%
EUR million
Net sales
Net sales
International sales, % of net sales
0
40
80
120
160
200
0
20
40
60
80
100
2019
125.4
123.6
152 .2
43
42
39
2020 2021
%
Comparable operationg profit
Comparable operationg profit margin, %
EUR million
Comparable operating profit
0
5
10
15
20
25
30
35
0
5
10
15
20
25
30
35
2019
17.1
19.6
31.2
2020 2021
13.6
15.9
20.5
Net debt / EBITDA
Net debt / EBITDA
¹ Proposal of Marimekko’s Board of Directors 2022 to
the AGM on 12 April 2022. The proposal includes a regular
dividend of EUR 1.60 per share and an extraordinary
dividend of EUR 2.00 per share.
EUR
Dividend and earning per share
Dividend
Extraordinary dividend
EPS
0
1.0
2.0
3.0
4.0
2019
0.90
1.61
1.64
3.01
1.00
2.00
2020 2021¹
1.60
-1.0
-0.5
0.0
0.5
1.0
2019
0.35
-0 .10 - 0 .64
2020 2021
8
Strategy
D
i
v
e
r
s
i
t
y
,
e
q
u
i
t
y
&
i
n
c
l
u
s
i
o
n
S
u
s
t
a
i
n
a
b
i
l
i
t
y
a
n
d
c
h
a
n
g
e
s
i
n
c
o
n
s
u
m
e
r
v
a
l
u
e
s
G
l
o
b
a
l
i
z
a
t
i
o
n
D
i
g
i
t
a
l
i
z
a
t
i
o
n
Purpose:
Empower people
to be happy as they are
and bring joy to their everyday
lives through bold prints and colors
E
v
e
n
s
t
r
i
p
e
s
f
o
r
e
q
u
a
l
i
t
y
Build
sustainable lifestyle
offering with fashion
as spearhead
Maximize
sales by boosting
digital business and
building omnichannel
ecosystems
Appeal to
a broader global
target audience
Approach
key markets
through
key cities
Increase
awareness and
loyalty through
value-driven
storytelling
Key
strategic
success
factors:
Growth
+10%
p.a.
Our vision is to be the world’s most inspiring lifestyle design brand renowned
for bold prints.
Marimekko has a long-term international growth strategy and its key
markets are Northern Europe, the Asia-Pacific region and North America.
Our goal in the strategy period that began in 2018 and extends to 2022 is to
achieve markedly stronger profitable growth than before through speaking
to an increasingly broad customer base.
In 2021, Marimekko’s net sales increased by 23 percent and comparable
operating profit grew by 59 percent. Our long-term work to develop the
Marimekko brand and our business as a whole as well as our success during
the pandemic speak to the effectiveness of our international growth strategy.
In 2022, the final year of our current strategy period, we will continue
to accelerate our long-term international growth and focus on increasing
brand awareness, digital and omnichannel business and the development of
sustainability, as well as recruitment and information systems that support
growth. During the year, we will determine our direction for the next strategy
period and review our long-term financial targets.
9
Strategy
Our long-term efforts to develop the Marimekko
brand and our lifestyle collections continued to be
reflected in our success in 2021. To celebrate our 70th
anniversary, we also launched special fashion and home
product collections that attracted widespread interest.
In August 2021, we presented our first collection
created under the leadership of our Creative Director
Rebekka Bay. The collection hit stores at the turn of the
year. A growing proportion of our products are made
from materials that have a less adverse impact on the
environment.
We strengthened our omnichannel network during
the year. Six new brick-and-mortar Marimekko stores
were opened in Asia, along with Marimekko online
stores in two countries. Our own and partner-operated
Marimekko online stores now reach customers in 35
countries. We redesigned our online store in May and
further enriched the digital customer experience in the
fall. This included the launch of Maripedia, a constantly
growing digital library and AI-driven image search
that opens our extensive print archive to the general
public. We will continue to deepen our customer insight
and thereby also develop our omnichannel customer
experience and collections further.
In 2021, we launched three significant limited-edition
collaborative collections. Our two limited-edition
collections with adidas, a global leader in the sporting
goods and apparel industry, were well-received and
provided us with valuable global visibility. Our Spring/
Summer capsule collection with the Japanese global
apparel retailer Uniqlo, in turn, was one of Uniqlo’s
spearhead collaborations in 2021. Our customized
product range launched together with the specialty
coffee chain Seesaw was our first local collaboration
in the Chinese market and a good way to introduce
new audiences to Marimekko. Local collaborations
also enable us to increase the local relevance of the
Marimekko brand.
Our objective in our main markets is to create a
comprehensive network of Marimekko stores, the online
store and selected wholesale customers, an ecosystem
that reaches our consumers effectively. In reaching
consumers, an important role is also played by various
creative retail concepts, the significance of which
we expect to grow further in the post-pandemic new
normal. In 2021, our 32 pop-up stores around the world
introduced the Marimekko brand and our products to
existing and new customers.
Marimekko has a large and loyal community that
we actively engage in various contexts, including social
media. Marimekko’s mission of bringing joy to everyday
life has been more significant during the pandemic
than ever before. Inclusion and equality have always
been important values for us. They were reflected, for
example, in the world’s most inclusive fashion party
we organized to celebrate our birthday, where artists
from various corners of the world entertained an online
audience for 12 hours. We believe that new and brave
perspectives, concepts and touchpoints will keep
the Marimekko brand relevant and meaningful for our
customers also in the future.
10
Sustainability is part of Marimekko’s
DNA and sustainability considerations
are part of our daily work at Marimekko.
Our design philosophy and our operations
have always been based on a sustainable
approach: we want to provide our customers
with timeless, functional and durable
products that bring them long-lasting joy
and that they will not want to throw away
but pass on to the next generation.
Sustainability
At the forefront of
developing more sustainable
products and practices
• Greenhouse gas emissions of textile manufacturing
per kilogram of sourced textiles decreased by 6%
compared to 2019¹
• Greenhouse gas emissions of logistics per kilogram
of transported products decreased by 17% compared
to 2018¹
• Calculation of greenhouse gas emissions extended to
cover indirect emissions from value chain (Scope 3),
including textile manufacturing and logistics
• Solar panels installed on the rooftop of Marimekko
house in Helsinki, Finland, and Marimekko house
WWF Green Office certified
• Own operations, i.e., our printing factory, offices
and our own retail stores globally were carbon
neutral through continuous development and
carbon offsetting
• New material strategy rollout started to shift
towards significantly more sustainable materials
• New archetypes and block fits developed for
ready-to-wear collection to improve consistency
in fit and size
• A new, sustainable home concept using more
sustainable and leftover materials
• An in-house innovation team, Innovation Works,
established to accelerate development work with
new, circular material innovations and sustainable
business models
• Marimekko Pre-loved second-hand resale piloted in
Marimekko online store
• Share of product claims decreased to 0.3% (0.4%) of
products sold
• More sustainable choice product hangtag introduced
to provide sustainability information to customers
• 100% of purchases from outside the EU covered by
social audits
• Social audits extended from tier 1 to tier 2 suppliers
through a pilot
• DEI Foundational Principles, the company’s
framework for diversity, equity and inclusion matters,
launched and managers and all personnel trained on
DEI perspectives
• Official partnership with Helsinki Pride and
supporting LGBTIQ+ community by working with a
wide range of models, influencers and creatives to
foster diversity
HIGHLIGHTS OF OUR SUSTAINABILITY WORK IN 2021
¹ The comparison year for emission reduction targets set in the
sustainability strategy for 2021–2025 is 2019, excluding the target for
logistics, for which the comparison year is 2018.
11
Sustainability
We want to be at the forefront of developing more sustainable products and practices.
The year 2021 was the first year of our new, more ambitious sustainability strategy.
Our sustainability strategy for 2021–2025 is condensed into three main principles that
extend beyond our own operations to the entire value chain. These three main principles
guide us on our journey towards a more sustainable future.
Timeless design brings joy for generations to come
We aim to continue creating new classics – high-quality products that stand the test
of time. Our objective is that, during their lifetime, Marimekko items bring joy to many
different consumers, even generations, after which they are finally recycled into new
products.
Positive change through fairness and equality
We want to promote the implementation of fairness and equality in our value chain and
see to it that our entire value chain is built on these principles. We will continuously
provide more information about the origin of our products, ultimately aiming at full
transparency of our operations and supply chain, starting with raw materials. We will also
extend audits to second-tier suppliers in risk countries. By actively collaborating with
other players in the industry, we can promote sustainable practices and drive positive
change across the whole sector.
The products of tomorrow leave no trace
We have launched several projects to significantly reduce emissions in our entire value
chain – it is our intention to align our emissions-related targets with those of the Paris
Agreement. We are committed, for example, to reducing the greenhouse gases from the
textile materials that we purchase, from our own operations and logistics, as well as to
reducing the environmental footprint of textile materials, including water use. As a result
of continuous development work and emission offsetting, our own operations have been
carbon neutral since 2020.
Read more about our sustainability work and its progress on pages 67–81 and our
website. A comprehensive sustainability review will be published on our website in
summer 2022.
12
Report of
the Board of
Directors 2021
13
2021 IN BRIEF
• Net sales grew by 23 percent and totaled EUR 152,227 thousand (123,568). Net sales
in Finland were up by 30 percent; international sales increased by 14 percent.
• Net sales were boosted especially by a favorable trend in wholesale and retail sales
in Finland. In addition, wholesale sales in the Asia-Pacific region and Scandinavia
as well as retail sales in North America grew strongly. The good trend in wholesale
sales in Finland was supported by non-recurring promotional deliveries, the total
value of which was significantly higher than last year. On the other hand, net sales
were weakened by a decrease in wholesale sales in EMEA, as well as lower licensing
income in the Asia-Pacific region.
• Brand sales¹ of Marimekko products amounted to EUR 375,646 thousand (286,425).
66 percent of brand sales were international sales.
• Nearly all Marimekko stores were open in 2021 unlike the year before, when a large
number of Marimekko stores around the world were temporarily closed due to the
pandemic during the first or second quarter.
• Operating profit improved to EUR 31,249 thousand (18,772). Comparable operating
profit² grew by 59 percent to EUR 31,249 thousand (19,600). Earnings were boosted
especially by increased net sales but also improved relative sales margin. On the
other hand, an increase in fixed costs had a weakening impact on results.
• Result for the period was EUR 24,408 thousand (13,306) and earnings per share
were EUR 3.01 (1.64).
• The Board of Directors proposes that a regular dividend of EUR 1.60 and an
extraordinary dividend of EUR 2.00 per share will be paid for 2021.
OPERATING ENVIRONMENT
The following outlook information is based on materials
published by the Confederation of Finnish Industries EK
and Statistics Finland.
The growth rate of the world economy is expected
to slow down. In 2022, the world economy is estimated
to grow at a rate of approximately four percent, but
the spread of the omicron virus variant, coronavirus
restrictions, increased inflation, and bottlenecks
in production, among other things, are creating
uncertainties for the development of the economy.
The economic outlook for Finland continued to be
positive during the turn of the year, but expectations for
the future have weakened. In January, the confidence
indicator for the retail trade remained on the same level
as before. Sales have grown, but sales expectations
for the coming months are cautious. The January
figures for consumer confidence increased slightly
but were lower than the year before. Estimates of the
current state of personal finances and expectations
for personal economy were positive while expectations
for Finland’s economy were weak. (Confederation
of Finnish Industries EK: Business Tendency Survey,
January 2022; Confidence Indicators, January 2022.
Statistics Finland: Consumer Confidence 2022,
January).
The working-day-adjusted turnover of Finnish retail
trade in December grew by 1.0 percent on the previous
year. The volume of sales was down by 2.9 percent.
The cumulative working-day-adjusted turnover of retail
trade in 2021 rose by 4.9 percent and the volume of
sales increased by 3.2 percent. (Statistics Finland:
Turnover of Trade, retail trade flash estimate, January
2022).
CHANGES IN ACCOUNTING PRINCIPLES
IFRS Interpretations Committee published in April
2021 their final agenda decision on the accounting
of configuration and customization costs in a cloud
computing arrangement (IAS 38 Intangible Assets).
Based on the agenda decision, Marimekko has
changed its accounting principle related to costs
in cloud computing arrangements. This change in
accounting principle increased Marimekko’s fixed costs
and correspondingly lowered gross investments and
depreciation. Based on the agenda decision, Marimekko
has booked a total of EUR 1.6 million as costs. This
amount was earlier activated as costs in intangible
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 Reconciliation of alternative key figures to IFRS and
management’s discretion regarding items affecting comparability
are presented on p. 24.
Report of the Board of Directors 2021
14
assets. The amount booked for financial year 2021 was
EUR 1 million. For financial year 2020, a total of EUR
0.6 million was booked retroactively. The effects of the
change are presented in more detail on p. 34.
NET SALES
In 2021, the Group’s net sales grew by 23 percent
to EUR 152,227 thousand (123,568). Net sales were
boosted especially by a favorable trend in wholesale
and retail sales in Finland. In addition, wholesale sales
in the Asia-Pacific region and Scandinavia as well as
retail sales in North America grew strongly. On the
other hand, net sales were weakened by a decrease in
wholesale sales in EMEA, resulting from Marimekko’s
actions to control gray exports, as well as lower
licensing income in the Asia-Pacific region. Net sales
in Finland were up by 30 percent; international sales
increased by 14 percent.
Retail sales in total rose by 15 percent. Nearly all
Marimekko stores were open in 2021 unlike the year
before, when a large number of Marimekko stores
around the world were temporarily closed during the
first or second quarter. However, the customer numbers
in stores in the first quarter of 2021 were clearly lower
due to the pandemic than in the comparison period
where the coronavirus pandemic started to have an
effect only at the end of the first quarter. Wholesale
sales increased by 33 percent in 2021.
Net sales in Finland amounted to EUR 92,299
thousand (71,145). Retail sales rose by 17 percent, and
comparable retail sales grew by 16 percent. Wholesale
sales in Finland increased by 54 percent. The good
trend in wholesale sales was supported by non-
recurring promotional deliveries, the total value of which
was significantly higher than last year.
In the company’s second-biggest market, the Asia-
Pacific region, net sales grew by 17 percent to EUR
25,974 thousand (22,114), even though licensing income
was significantly lower than the year before. Wholesale
sales in the entire region increased by 29 percent and
in Japan by 21 percent. Both in the financial year and
comparable year, some of the wholesale deliveries for
the final quarter transferred to the first quarter of the
following year. Retail sales in the Asia-Pacific region
grew by 17 percent even though stores in Australia were
temporarily closed for several months during the year
due to the pandemic situation.
FINANCIAL RESULT
In 2021, the Group’s operating profit was EUR 31,249
thousand (18,772). The comparable operating profit
was also EUR 31,249 thousand (19,600). Earnings were
boosted especially by increased net sales but also by
improved relative sales margin. On the other hand,
an increase in fixed costs had a weakening impact on
results.
The relative sales margin was strengthened in
particular by improved margins per product but also
relatively lower logistics costs than in the comparable
year, when logistics costs in spring 2020 were
exceptionally high as a result of moving promotions
online when the company-owned stores were
temporarily closed due to the pandemic situation.
Net sales by market area
(EUR 1,000) 2021 2020 Change, %
Finland 92,299 71,145 30
Retail sales 53,547 45,928 17
Wholesale sales 38,547 25,058 54
Licensing income 205 158 30
Scandinavia 12,661 9,883 28
Retail sales 3,785 4,311 -12
Wholesale sales 8,651 5,572 55
Licensing income 225 -
EMEA 12,895 13,961 -8
Retail sales 1,906 2,160 -12
Wholesale sales 9,764 11,400 -14
Licensing income 1,225 401
North America 8,397 6,466 30
Retail sales 5,583 3,952 41
Wholesale sales 2,444 2,268 8
Licensing income 371 247 50
Asia-Pacific 25,974 22,114 17
Retail sales 4,207 3,609 17
Wholesale sales 21,305 16,495 29
Licensing income 462 2,010 -77
International sales, total 59,927 52,424 14
Retail sales 15,481 14,032 10
Wholesale sales 42,164 35,734 18
Licensing income 2,283 2,658 -14
Total 152,227 123,568 23
Retail sales 69,027 59,960 15
Wholesale sales 80,711 60,792 33
Licensing income 2,488 2,816 -12
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 2021
15
Increased fixed costs in 2021 were attributable,
in particular, to higher employee benefit expenses.
Employee benefit expenses grew as a result of new
recruitments to strengthen the building blocks of
Marimekko’s international growth, among other things.
In the comparable year, fixed costs, including employee
benefit expenses, decreased as a result of various
subsidies granted to Marimekko in several different
markets to mitigate the negative business impacts of
the coronavirus pandemic. In addition, a decrease of
temporary cost savings related to salaries and wages
as well as one-off bonuses paid to the personnel
increased employee benefit expenses in 2021. In 2020,
significant temporary cost savings were accrued, for
example, due to extensive temporary layoffs in the
retail organization due to the pandemic situation as well
as temporary rent reductions granted to the company.
Increased marketing and IT expenses, among other
things, also contributed to higher fixed costs in 2021.
Lower credit loss provisions, however, decreased fixed
costs.
The increase in IT expenses was mainly related to
a change in accounting principle of configuration and
customization costs in a cloud computing arrangement.
The changed accounting principle also affected
Marimekko’s depreciation and was retroactively
implemented to comparable year. In total, the net effect
of the change on the operating profit of 2021 amounted
to EUR 1 million. The net effect in operating profit in
financial year 2020 was EUR 0.6 million.
Marketing expenses for the year 2021 were EUR
7,521 thousand (5,274), or 5 percent of the Group’s net
sales (4).
The Group’s depreciation amounted to EUR 11,874
thousand (12,520), representing 8 percent of net sales
(10).
In 2021, operating profit margin was 20.5 percent
(15.2) and comparable operating profit margin was also
20.5 percent (15.9).
Net financial expenses in 2021 were EUR 552
thousand (1,783), or 0 percent of net sales (1). Financial
items include exchange rate differences amounting to
EUR 270 thousand (-720), of which EUR 513 thousand
(-385) were unrealized. The impact of IFRS 16 on
interest expenses was EUR -694 thousand (-773).
Result for 2021 before taxes was EUR 30,697
thousand (16,989). Net result for the period was EUR
24,408 thousand (13,306) and earnings per share were
EUR 3.01 (1.64).
BALANCE SHEET
The consolidated balance sheet total as at 31 December
2021 was EUR 132,887 thousand (114,371). Equity
attributable to the equity holders of the parent company
was EUR 69,833 thousand (52,323), or EUR 8.60 per
share (6.45).
Non-current assets at the end of December stood
at EUR 35,149 thousand (42,764). Lease liabilities
amounted to EUR 30,480 thousand (37,155), and
financial liabilities were EUR 1,798 thousand (725). In
addition, the Group had unused committed credit lines
of EUR 14,982 thousand (17,146).
At the end of the period, net working capital was
EUR 7,235 thousand (7,869). Inventories were EUR
25,983 thousand (22,436).
CASH FLOW AND FINANCING
In 2021, cash flow from operating activities was EUR
35,902 thousand (27,477), or EUR 4.42 per share (3.39).
Cash flow before cash flow from financing activities was
EUR 34,992 thousand (25,241). Dividends paid during
the financial year totaled EUR 7,299 thousand (0).
The Group’s cash and cash equivalents at the end
of the year amounted to EUR 59,726 thousand (41,045).
Improved results contributed to the increased cash and
cash equivalents during the year. In the comparison
year, refraining from paying dividends for 2019 during
2020 contributed to the increase in cash and cash
equivalents. The dividend for 2019 was paid in March
2021. On the other hand, the cash flow of 2021 was
impacted by the fact that no decision on the dividend
for 2020 was made during the financial year. The
amount of interest-bearing credit facilities drawn down
was EUR 1,798 thousand (725). In addition, the Group
had unused committed credit lines of EUR 14,982
thousand (17,146).
The Group’s equity ratio at the end of the period was
53.3 percent (46.4). Gearing was -39.3 percent (-6.1).
The ratio of net debt to 12-month rolling EBITDA was
-0.64 (-0.10), i.e. well below the maximum of 2 which is
the company’s long-term goal.
INVESTMENTS
The Group’s gross investments in 2021 were EUR
207 thousand (1,533), or 0 percent of net sales
(1). The investments were devoted to IT systems,
among others. As a result of the agenda decision
of the IFRS Interpretations Committee (IFRIC), the
accounting principle was changed and therefore the
accounting of configuration and customization costs
of cloud computing arrangements changed in 2021.
The change increased Marimekko’s IT expenses
and correspondingly lowered gross investments and
depreciation. Marimekko has retroactively also restated
the figures for 2020. Gross investments do not include
new lease agreements included in balance sheet (IFRS
16) in the financial or comparable year.
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
Good store locations that cater for its target audience
are essential for Marimekko. The operations and
efficiency of the store network are continuously
assessed and developed. In 2021, six new Marimekko
stores were opened, all in Asia. In addition, a formerly
partner-owned store in Finland was transferred to
Marimekko. In total, eight stores around the world were
closed. During the year, Marimekko also had 32 pop-up
stores globally. At the end of year, there were a total of
152 Marimekko stores and shop-in-shops worldwide.
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
Report of the Board of Directors 2021
16
certain central stores especially during holiday seasons.
E-commerce plays an important role in Marimekko’s
omnichannel retail. Online sales developed well in
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 continues to report its
own e-commerce net sales as part of retail sales
and sales through other online channels as part of
wholesale sales. Marimekko focuses efforts on creating
a seamless customer experience between different
channels and develops its IT systems to strengthen
its digital business. Accelerated by the pandemic, 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. Marimekko believes that determined efforts to
improve sustainability strongly support the company’s
long-term success, and therefore sustainability
management is part of everyday leadership and
operational development at Marimekko. 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 2021, the
company’s activities included, for example, work to
increase the proportion of more sustainable materials in
its products and to prolong product lifetime by various
means.
Statement of non-financial information
Marimekko issues a statement of non-financial
information for 2021 separately from the report of the
Board of Directors. The statement is available on p.
67–81.
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 at company.marimekko.com under
Sustainability. The next review will be published in
summer 2022.
PERSONNEL
In 2021, the number of employees, expressed as full-
time equivalents, averaged 401 (434). At the end
of the year, the Group had 409 (422) employees, of
whom 69 (84) worked outside Finland. The number of
employees working outside Finland was broken down
as follows: Scandinavia 21 (24), EMEA 1 (2), North
America 13 (32) and the Asia-Pacific region 34 (26).
The personnel at company-owned stores, expressed as
full-time equivalents, totaled 193 (210) at the end of the
period. Salaries, wages and bonuses paid to personnel
amounted to EUR 21,273 thousand (19,429). In 2021, the
turnover of employees leaving was 12 percent (11).
More information on personnel and the development
of staff is available in the statement of non-financial
information on p. 67–81.
MANAGEMENT
Board of Directors, management and auditors
Marimekko’s Annual General Meeting on 14 April 2021
appointed seven members to the company’s Board
of Directors. Elina Björklund, Mika Ihamuotila, Mikko-
Heikki Inkeroinen and Catharina Stackelberg-Hammarén
were re-elected. Carol Chen, Jussi Siitonen and Tomoki
Takebayashi 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 Elina Björklund as Vice Chair of the Board.
On 6 May 2021, Jussi Siitonen announced that he will
immediately resign from his position as a member of
the Board of Marimekko as he was appointed CFO of
Fiskars, starting on 3 November 2021 at the latest,
which created a conflict of interest with his duties as
a Board member at Marimekko. At the end of 2021,
Marimekko’s Board consisted of Elina Björklund,
Carol Chen, Mika Ihamuotila, Mikko-Heikki Inkeroinen,
Catharina Stackelberg-Hammarén and Tomoki
Takebayashi.
From among its members, the Board of Directors
elected Elina Björklund as Chair and Mikko-Heikki
Inkeroinen and Catharina Stackelberg-Hammarén as
members of the Audit and Remuneration Committee.
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 Virpi
Halonen, 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.
There were no changes in the company’s
management in 2021. At the end of the year, 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), Sanna-Kaisa Niikko
(Chief Marketing Officer), Tanya Strohmayer (Chief
People Officer), Dan Trapp (Chief Sales Officer) and
Riika Wikberg (Chief Business Development Officer) as
members.
Corporate governance statement
The corporate governance statement for 2021 is issued
separately from the report of the Board of Directors.
The statement is available on p. 82–89.
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 2021. Remuneration Report is
available on p. 90–95 of this publication.
Report of the Board of Directors 2021
17
Ownership by size of holding, 31 December 2021
Number of % of Number of shares % of holding
Number of shares shareholders shareholders and votes and votes
1–100 19,249 82.53 489,798 6.02
101–1 000 3,579 15.34 1,141,336 14.04
1 001–10 000 440 1.89 1,118,398 13.76
10 001–100 000 46 0.20 1,282,533 15.78
100 001–500 000 7 0.03 1,782,570 21.93
500 001– 2 0.01 2,315,199 28.48
Total 23,323 100.00 8,129,834 100.00
Ownership by sector, 31 December 2021
Number of shares
Owner and votes % of holding and votes
Nominee-registered and non-Finnish holders 1,415,436 17.41
Households 3,225,929 39.68
Financial and insurance corporations 1,001,995 12.32
Non-financial corporations and housing corporations 1,553,302 19.11
Non-profit institutions 57,440 0.71
General government 875,732 10.77
Total 8,129,834 100.00
Largest shareholders according to the book-entry register, 31 December 2021
Number of shares
Owner and votes % of holding and votes
1. PowerBank Ventures Ltd (Mika Ihamuotila) 1,017,700 12.52
2. Varma Mutual Pension Insurance Company 385,920 4.75
3. Ilmarinen Mutual Pension Insurance Company 385,388 4.74
4. Ehrnrooth Anna Sophia 340,377 4.19
5. Evli Finnish Small Cap Fund 267,000 3.28
6. Nordea Nordic Small Cap 199,885 2.46
7. Veritas Pension Insurance Company Ltd. 103,000 1.27
8. Oy Talcom Ab 101,000 1.24
9. Oy Etra Invest Ab 100,000 1.23
10. Sijoitusrahasto Taaleritehdas Mikro Markka 85,000 1.05
Total 2,985,270 36.72
Report of the Board of Directors 2021
SHARES AND SHAREHOLDERS
Share capital and number of shares
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 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 8,129,834.
Shareholdings
According to the book-entry register, Marimekko had
23,323 shareholders (18,411) at the end of December
2021. Of the shares, 17.41 percent (13.72) were owned by
nominee-registered or non-Finnish holders.
18
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 1,081,388
Marimekko shares corresponding to 13.30 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
On 3 November 2021, the Board of Directors decided to
transfer a total of 6,640 Marimekko shares held by the
company as a part of the first instalment of the long-
term incentive system targeted at the Management
Group. At the end of the year, Marimekko held 13,360
of its own shares, corresponding to some 0.16 percent
of the total number of the company’s shares. After the
end of financial year, 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 will hold 5,558 of
its own shares, corresponding to some 0.07 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 2021.
Share trading and the company’s market capitalization
In 2021, a total of 2,229,183 Marimekko shares
(3,344,494) were traded on Nasdaq Helsinki,
representing 27.42 percent (41.14) of the shares
outstanding. The total value of the share turnover was
EUR 153,719,602 (106,484,058). The lowest price of
the share was EUR 44.50 (21.30), the highest was EUR
94.20 (46.95) and the average price was EUR 68.96
(31.85). At the end of December, the closing price of the
share was EUR 84.70 (45.55).
The company’s market capitalization on 31
December 2021 was EUR 687,465,348, excluding the
Marimekko shares held by the company (369,402,939).
Authorizations
The Annual General Meeting held on 8 April 2020
authorized the Board of Directors to decide on the
payment of a maximum dividend of EUR 0.90 per share
in one or several instalments at a later stage. On 18
February 2021, the Board made use of the authorization
and decided that a dividend of EUR 0.90 per share be
paid for 2019 in one instalment. The dividend payout
record date was 22 February 2021, and the dividend
payout date was 1 March 2021.
The AGM 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. The authorization was
not used during the financial year. 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. The dividend payout
record date was 17 February 2022, and the dividend
payout date was 24 February 2022.
The AGM on 14 April 2021 also authorized the
Board to decide on the acquisition of a maximum of
100,000 of the company’s own shares, in one or more
instalments, to be used as a part of the company’s
incentive compensation program, to be transferred
for other purposes or to be cancelled. The quantity
represents approximately 1.2 percent of the total
number of the company’s shares at the time of the
proposal. The shares would be acquired with funds
from the company’s non-restricted equity, which
means that the acquisition would reduce funds
available for distribution. The shares would 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 authorization
was not used in 2021. The authorization is valid until 14
October 2022.
Furthermore, 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. The total number of shares to
be issued or transferred pursuant to the authorization
may not exceed 120,000 new or treasury shares,
which represents approximately 1.5 percent of the total
number of the company’s shares at the time of the
proposal. Pursuant to the authorization, the Board may
decide on a directed share issue in deviation from the
shareholders’ pre-emptive right for a weighty financial
reason. The share issue may be subject to a charge or
free. 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. Based on the authorization, the
Board decided on 3 November 2021 to transfer 6,640
Marimekko shares held by the company as a part of
the first instalment of the long-term incentive system
targeted at the Management Group. In addition, after
the end of the financial year, the Board decided, based
on the authorization, 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 is valid
until 14 October 2022 and a total of 105,558 new or
treasury shares can be issued or transferred pursuant
to the authorization at a later stage.
At the end of the financial year period, the Board
of Directors had no valid authorizations to issue
convertible bonds or bonds with warrants.
Report of the Board of Directors 2021
19
EVENTS AFTER THE END OF THE FINANCIAL YEAR
Dividend for 2020
After the end of the financial year, the Board of
Directors of Marimekko made use of the authorization
given by the AGM on 14 April 2021 and decided that
a dividend of EUR 1.00 per share be paid for 2020 in
one instalment. The dividend was paid to shareholders
who were registered on the dividend payout record
date of 17 February 2022 in the company’s Shareholder
Register held by Euroclear Finland Ltd on behalf of
the Board of Directors of Marimekko Corporation. The
dividend payout date was 24 February 2022.
Transfer of own shares
After the end of the financial year, the Board of
Directors of Marimekko decided on a directed share
issue without consideration in order to transfer a total
of 7,802 Marimekko shares held by the company as
the latter instalment of the long-term incentive system
targeted at the Management Group. The decision was
based on the authorization given by the AGM on 14
April 2021. The shares were transferred on 17 February
2022. Following the transfer, Marimekko will hold 5,558
of its own shares, corresponding to some 0.07 percent
of the total number of the company shares. Marimekko
shares held by the company carry no voting rights and
no entitlement to dividends.
A new long-term incentive system for the management
After the end of the financial year, the Board of
Directors of Marimekko decided to continue the
share-based long-term incentives for the company’s
management. The new incentive system for years
2022–2026 is a performance share plan targeted to the
Management Group of Marimekko and at the beginning,
it encompasses nine people including the President and
CEO. The objective of the new plan is to continue aligning
the interests of the management with the interests of
the shareholders and to encourage the management to
work on a long-term basis with the aim to increase the
shareholder value. The Performance share plan 2022–
2026 is composed of two earnings periods: 1 January
2022–30 June 2025 and 1 January 2023–30 June 2026.
The potential reward from each earnings period is based
on total shareholder return (TSR) i.e. the total yield on
Marimekko Corporation’s shares, including dividends,
at the end of the period. Details of the plan have been
reported in the stock exchange release of 15 February
2022.
MAJOR RISKS AND FACTORS OF UNCERTAINTY
Factors of uncertainty over the global economic trend
affect the retail trade and consumer confidence in all of
the company’s market areas. The coronavirus pandemic
has been the worst crisis experienced by the global
fashion industry and specialty retail sector in decades.
The development of the pandemic situation in different
markets, political tensions, and increased inflation
impact the global economic trend as well as consumers’
purchasing behavior. The coronavirus pandemic and
other factors creating particularly great uncertainties
for the world economy can have significant impacts
on Marimekko’s sales, profitability, cash flow and the
operational reliability of the company’s value chain.
Changes in consumer behavior and buying
power, especially in Finland and Japan, which are the
company’s biggest single countries for business, pose
considerable strategic risks to the company. Other
strategic risks include risks related to changes in the
company’s design, product assortment and product
distribution and pricing. Digitization in retail trade has
gathered pace in the past few years and will further
accelerate as a result of the coronavirus pandemic,
which can have an impact on the company’s distribution
channel solutions and choices, sales and profitability,
as well as create new revenue generation models. The
importance of omnichannel business in the retail trade
is emphasized. International e-commerce increases the
options available to consumers and the significance
of big e-commerce operators. The coronavirus
pandemic has also intensified the financial difficulties
of many traditional wholesale customers in the fashion
sector, such as department stores and multi-brand
retailers, which may have an impact on Marimekko’s
business and distribution channel choices. Maintaining
competitiveness in a rapidly changing operating
environment being revolutionized by digitization
demands agility, efficiency, flexibility and the constant
re-evaluation of operations. 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 also has an impact on the company’s sales
and profitability. In addition, various political tensions
can affect consumers’ purchasing behavior as well as
supply or logistics chains and consequently impact the
company’s sales and profitability.
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 it plays an important role in the company’s
growth and internationalization. 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
have increased, which may have an impact on the
company’s sales and profitability. Internationalization
also increases the applicable regulation for company’s
operations in different markets.
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 value and reputation of the company. 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 its intellectual property rights, in particular to its most
renowned prints, may increase.
Prominent among the company’s operational risks
are those related to internationalization, digitization,
sustainability as well as the supply and logistics chain.
Report of the Board of Directors 2021
20
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 also be
significant. The coronavirus pandemic increases
operational risks related especially to taking care of
the health and safety of customers and employees,
securing sufficient workforce in cases of sickness
caused by the pandemic, risks related to production,
supply and logistics chain reliability and efficiency,
inventory and product flow management as well as
cybersecurity and information system reliability as the
importance of e-commerce is further emphasized. The
pandemic situation causes supply chain disruptions,
which can result in delivery delays. Delays like these
can, through the availability of products, impact
net sales and profitability. Early commitment to
product orders from subcontractors, which is typical
of the industry and has been further accentuated
in the pandemic situation, weakens the company’s
possibilities to respond to rapid changes in demand
especially in exceptional situations.
In normal circumstances, too, there are risks
associated with information system reliability,
dependability and compatibility. With digitization and
internationalization, cybercrime and various 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. Data leakage can lead to claims for damages and
reputation risks.
Operational risks related to Marimekko’s supply
chain are associated especially with production,
procurement and logistics processes and their
flexibility and efficiency, price fluctuations for raw
materials and procurements as well as availability
and price of logistics. New coronavirus infection
waves and virus variants as well as the ways different
countries react to those may cause even significant
disruptions in supply and logistics chains. In addition,
it is of utmost importance to safeguard the operational
reliability of the company’s own printing factory in all
circumstances. The lately overall increased prices of
raw materials and other factors of production as well as
for logistics impact also Marimekko. Early commitment
to product orders from subcontractors, which is
typical of the industry, means that changes in material
costs affect the company with a delay. Marimekko is
actively working on mitigating the negative effects of
increased costs. As product distribution is expanded
and operations are diversified, risks associated
with inventory management also grow. Substantial
nonrecurring promotions can also 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, also
on substantial nonrecurring promotions.
Enhancing sustainability is increasingly important
for competitiveness in the industry, which can have
an impact on the company’s sales and profitability, as
versatile investments are required for the enhancement.
The company primarily uses subcontractors to
manufacture its products. Of the sustainability
elements of manufacturing, especially social aspects
related to the supply chain (including human rights,
working conditions and remuneration) and environmental
aspects (for example, production methods as well as
raw materials and chemicals used) as well as transparent
communications on these subjects are of growing
significance to customers. These sustainability elements
apply to Marimekko’s own production and sourcing as
well as licensed products. Compliance with sustainable
business methods is important in maintaining customers’
confidence; any failures or errors in this area will involve
reputation risks. Business and reputation risks and
potential claims for damages are prevented by taking
care of product safety as well as through continuous
quality control and sustainability work.
Climate change is expected to bring an increase in
various extreme phenomena such as floods, forest and
bush fires, typhoons and hurricanes. Marimekko has
stores in areas in which such extreme phenomena may
occur, and if they damage stores or cause momentary
changes in consumers’ purchasing behavior, it may result
in lost sales as well as expenses. Extreme phenomena
may also affect the availability of products if they cause
damage to the company’s suppliers’ factories or hamper
the logistics chain. Furthermore, climate change or
extreme weather may cause droughts, soil depletion or
other changes in growth conditions, which could impact
the availability and price of Marimekko’s most used raw
material, cotton.
Among the company’s financial risks, those related
to the structure of sales, price trends for factors of
production, changes in cost structure, changes in
exchange rates (particularly the US dollar), taxation,
and customers’ liquidity may have an impact on the
company’s financial status.
MARKET OUTLOOK AND GROWTH TARGETS
FOR 2022
The coronavirus pandemic has been the worst crisis
experienced by the global fashion industry and
specialty retail sector in decades, and it will impact
the sector in 2022 as well. The development of the
pandemic situation in different markets, political
tensions, and increased inflation impact the global
economic trend as well as consumers’ purchasing
behavior and, as a result, can have an impact on
Marimekko’s business. Furthermore, these factors may
affect the operational reliability and efficiency of the
company’s value chain.
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 total value of nonrecurring
promotional deliveries in 2022 is estimated to be
substantially lower than the year before.
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. The other Asian countries’ combined
share of the company’s net sales is still smaller than in
Japan, but operations in these countries are constantly
growing. 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
clearly in 2022. The aim is to open approximately 5 to 10
new Marimekko stores and shop-in-shops in 2022, and
Report of the Board of Directors 2021
21
most of the planned openings will be in Asia.
Marimekko estimates that both retail and wholesale
sales will increase in 2022. Licensing income is also
forecasted to be higher than in the previous year.
Marimekko will continue actions to control gray
exports, but these actions will have a significantly
lower weakening impact on the company’s sales and
earnings in 2022 than in the previous year. Because of
the seasonal nature of Marimekko’s business, the major
portion of the company’s euro-denominated net sales
and earnings are traditionally generated during the
second half of the year.
The coronavirus pandemic causes disruptions in
global supply chains. These disruptions can result in
delivery delays, and thus impact Marimekko’s net sales
and profitability. In addition, disruptions in supply chain
can increase logistics costs, which have also grown
overall worldwide. Furthermore, net sales and earnings
also essentially depend on maintaining the operational
reliability and efficiency of distribution centers and
logistics in the exceptional situation. Costs of raw
and other materials have increased globally. Early
commitment to product orders, which is typical of the
fashion and design industry, means that changes in raw
and other material prices affect the company with a
delay. Marimekko is actively working on mitigating the
negative effects of increased costs.
Marimekko continues to accelerate its long-term
international growth. In 2022, it will invest especially in
increasing brand awareness, in digital and omnichannel
business, in developing sustainability, in recruitments
supporting its growth as well as in IT systems. Fixed
costs are expected to be up on the previous year.
Report of the Board of Directors 2021
In 2021, fixed costs were still reduced by partly
temporary cost savings. Marketing expenses are
expected to grow (2021: EUR 7.5 million).
The instability caused by the coronavirus
pandemic in Marimekko’s markets continues.
Marimekko is closely monitoring the development of
the pandemic situation in each of its market areas and
will adjust its operations and plans according to the
situation.
FINANCIAL GUIDANCE FOR 2022
The Marimekko Group’s net sales for 2022 are
expected to grow from the previous year (2021: EUR
152.2 million). Comparable operating profit margin is
estimated to be approximately some 17–20 percent
(2021: 20.5 percent). Global supply chain disruptions
and generally increased material and logistics costs in
particular cause volatility to the outlook for 2022.
Uncertainties related to the development of net
sales and result are described in more detail in the
Major risks and factors of uncertainty section of this
report.
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 2021, the parent company’s
distributable funds amounted to EUR 55,890,746.68;
profit for the financial year was EUR 24,865,528.81.
The Board of Directors proposes to the Annual General
Meeting that a regular dividend of EUR 1.60 per share
and an extraordinary dividend of EUR 2.00 per share be
paid for 2021.
The Board will propose 14 April 2022 as the dividend
payout record date and 25 April 2022 as the dividend
payout date. A regular dividend of EUR 1.00 per share
was paid for 2020.
ANNUAL GENERAL MEETING
The Annual General Meeting is scheduled to be held on
Wednesday, 12 April 2022 at 2.00 p.m.
Helsinki, 15 February 2022
Marimekko Corpor a tion
Board of Directors
22
Key figures of the Group and formulas for the key figures
Return on equity (ROE)
%
0
10
20
30
40
50
2019
33.0
29.2
40.0
2020¹ 2021
Return on investment (ROI)
%
0
10
20
30
40
2019
17. 9
21.8
33.0
2020¹ 2021
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision.
Additional information is presented in the accounting principles, on p. 33–34.
Key financial figures
2021 2020 2019
Net sales, EUR 1,000 152,227 123,568 125,419
Change in net sales, % 23.2 -1.0 12.1
Operating profit, EUR 1,000¹ 31,249 18,772 17,117
% of net sales¹ 20.5 15.2 13.6
Comparable operating profit, EUR 1,000¹ 31,249 19,600 17,117
% of net sales¹ 20.5 15.9 13.6
Financial income, EUR 1,000 851 592 462
Financial expenses, EUR 1,000 -1,403 -2,375 -1,429
Result before taxes, EUR 1,000¹ 30,697 16,989 16,151
% of net sales¹ 20.2 13.7 12.9
Taxes, EUR 1,000¹ 6,289 3,683 3,133
Net result for the period, EUR 1,000¹ 24,408 13,306 13,018
Balance sheet total, EUR 1,000¹ 132,887 114,371 96,884
Net working capital, EUR 1,000 7,235 7,869 9,285
Interest-bearing liabilities, EUR 1,000 32,277 37,879 36,404
Shareholders’ equity, EUR 1,000¹ 69,833 52,323 38,925
Net debt / EBITDA -0.64 -0.10 0.35
Return on equity (ROE), %¹ 40.0 29.2 33.0
Return on investment (ROI), %¹ 33.0 21.8 17.9
Equity ratio, %¹ 53.3 46.4 40.2
Gearing, %¹ -39.3 -6.1 27.0
Gross investments, EUR 1,000¹ 207 1,533 2,594
% of net sales¹ 0.1 1.2 2.1
Employee salaries, wages and bonuses, EUR 1,000 21,273 19,429 21,186
Average personnel 401 434 442
Personnel at the end of the financial year 409 422 450
23
Key figures of the Group and formulas for the key figures
Per-share key figures
2021 2020 2019
Earnings per share (EPS), EUR¹ 3.01 1.64 1.61
Equity per share, EUR¹ 8.60 6.45 4.80
Dividend per share, EUR 3.60² 1.00³ 0.90
Dividend per profit, %¹ 119.6² 61.0³ 55.9
Effective dividend yield, % 4.3² 2.2³ 2.5
P/E ratio¹ 28.1 27.7 22.2
Share issue adjusted average number of shares 8,110,874 8,109 834 8,100,246
Share issue adjusted number of shares
at the end of the period 8,116,474 8,109 834 8,109 834
Effective dividend yield
%
0
1
2
3
4
5
2019
2.5
2.2
4.3
2020³ 2021²
P/E ratio
EUR
0
5
10
15
20
25
30
35
2019
22.2
27.7 28.1
2020¹ 2021
0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
2019
1.61 1.64
3.01
2020¹ 2021
Earnings per share
EUR
Dividend per share
EUR
0
1.0
2.0
3.0
4.0
2019
0.90
1.00
2.00
2020³ 2021²
1.60
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision.
Additional information is presented in the accounting principles, on p. 33–34.
² Proposal of Marimekko’s Board of Directors on 15 February 2022 to the AGM on 12 April 2022. The proposal includes a regular dividend of EUR 1.60 per share and an extraordinary dividend of EUR 2.00 per share.
³ Marimekko’s AGM on 14 April 2021 authorized the Board 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 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.
24
Reconciliation of alternative key figures to IFRS
(EUR million) 2021 2020 2019
Items affecting comparability
Restructuring costs - -0.8 -
Items affecting comparability in operating profit - -0.8 -
EBITDA¹ 43.1 31.3 29.7
Restructuring costs - 0.8 -
Comparable EBITDA¹ 43.1 32.1 29.7
Operating profit¹ 31.2 18.8 17.1
Restructuring costs - 0.8 -
Comparable operating profit¹ 31.2 19.6 17.1
Net sales 152.2 123.6 125.4
Operating profit margin, %¹ 20.5 15.2 13.6
Comparable operating profit margin, %¹ 20.5 15.9 13.6
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting
principles on p. 33–34.
Items affecting comparability are exceptional transactions that are not related to the company’s regular business operations. These include, among other things, costs associated with restructuring of operations.
The Group’s management exercises its discretion when making decisions regarding the classification of items affecting comparability.
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
25
Financial
statements for
the financial year
1 January to
31 December 2021
26
Consolidated financial statements, IFRS
Financial statements for the financial year 1 January to 31 December 2021
CONSOLIDATED INCOME STATEMENT
(EUR 1,000) Note 1 Jan.–31 Dec. 2021 1 Jan.–31 Dec. 2020
NET SALES 1. 152,227 123,568
Other operating income 2. 148 341
Change in inventories of finished goods and work in progress 3 151 -361
Raw materials and consumables 3. -61,484 -48,237
Employee benefit expenses 4. -28,239 -25,334
Depreciation and impairments¹ 5. -11,874 -12,520
Other operating expenses¹ 6. -22,680 -18,685
OPERATING PROFIT¹ 31,249 18,772
Financial income 7. 851 592
Financial expenses 8. -1,403 -2,375
-552 -1,783
RESULT BEFORE TAXES¹ 30,697 16,989
Income taxes¹ 9. -6,289 -3,683
NET RESULT FOR THE PERIOD¹ 24,408 13,306
Distribution of net result to equity holders
of the parent company¹ 24,408 13,306
Basic and diluted earnings per share calculated on the result
attributable to equity holders of the parent company, EUR¹ 10. 3.01 1.64
COMPREHENSIVE CONSOLIDATED INCOME STATEMENT
(EUR 1,000) 1 Jan.–31 Dec. 2021 1 Jan.–31 Dec. 2020
Net result for the period¹ 24,408 13,306
Items that could be reclassified to profit or loss
at a future point in time
Change in translation difference -108 92
COMPREHENSIVE RESULT FOR THE PERIOD¹ 24,300 13,398
Distribution of net result to equity holders of the parent company¹ 24,300 13,398
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
The notes are an integral part of the financial statements.
27
Consolidated financial statements, IFRS
CONSOLIDATED BALANCE SHEET
(EUR 1,000) Note 31 Dec. 2021 31 Dec. 2020
ASSETS
NON-CURRENT ASSETS
Intangible assets¹ 11.1 487 504
Tangible assets 11.2 33,187 41,269
Other financial assets 11.3, 17. 533 16
Deferred tax assets¹ 14. 942 974
CURRENT ASSETS
Inventories 12.1 25,983 22,436
Trade and other receivables 12.2 12,029 8,126
Cash and cash equivalents 12.2, 17. 59,726 41,045
ASSETS, TOTAL¹ 132,887 114,371
(EUR 1,000) Note 31 Dec. 2021 31 Dec. 2020
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. -210 -315
Translation differences -81 26
Retained earnings¹ 60,856 43,343
Shareholders’ equity, total¹ 69,833 52,323
NON-CURRENT LIABILITIES
Lease liabilities 15.1, 20. 21,976 26,996
Other non-current liabilities 4. - 1,476
CURRENT LIABILITIES 16.
Trade and other payables 28,272 22,160
Current tax liabilities 2,505 534
Lease liabilities 15.2, 20. 8,503 10,158
Financial liabilities 15.2, 20. 1,798 725
Liabilities, total 63,055 62,048
SHAREHOLDERS’ EQUITY AND LIABILITIES, TOTAL¹ 132,887 114,371
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
The notes are an integral part of the financial statements.
28
Consolidated financial statements, IFRS
CONSOLIDATED CASH FLOW STATEMENT
(EUR 1,000) 1 Jan.–31 Dec. 2021 1 Jan.–31 Dec. 2020
CASH FLOW FROM OPERATING ACTIVITIES
Net result for the period¹ 24,408 13,306
Adjustments
Depreciation and impairments¹ 11,874 12,520
Financial income and expenses 552 1,783
Taxes¹ 6,289 3,683
Share-based payments 509 -
Cash flow before change in working capital¹ 43,631 31,292
Change in working capital -2,225 3,310
Increase (-) / decrease (+) in current non-interest-bearing trade receivables -4,152 -1,591
Increase (-) / decrease (+) in inventories -3,477 65
Increase (+) / decrease (-) in current non-interest-bearing liabilities 5,404 4,836
Cash flow from operating activities before financial items and taxes¹ 41,407 34,602
Paid interest and payments on other financial expenses -1,271 -1,463
Interest received and payments on other financial income 31 78
Taxes paid -4,265 -5,740
CASH FLOW FROM OPERATING ACTIVITIES¹ 35,902 27,477
(EUR 1,000) 1 Jan.–31 Dec. 2021 1 Jan.–31 Dec. 2020
CASH FLOW FROM INVESTING ACTIVITIES
Investments in tangible and intangible assets¹ -910 -2,236
CASH FLOW FROM INVESTING ACTIVITIES¹ -910 -2,236
CASH FLOW FROM FINANCING ACTIVITIES
Short-term loans drawn 932 6,488
Short-term loans repaid - -6,000
Payments of lease liabilities -10,247 -10,729
Dividends paid -7,299 -
CASH FLOW FROM FINANCING ACTIVITIES -16,613 -10,241
Change in cash and cash equivalents 18,378 14,999
Cash and cash equivalents at the beginning of the period 41,045 26,133
Effects of exchange rate fluctuations 303 -87
Cash and cash equivalents at the end of the period 59,726 41,045
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
The notes are an integral part of the financial statements.
29
Consolidated financial statements, IFRS
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS’ EQUITY
Equity attributable to equity holders of the parent company
Reserve for invested
non-restricted Treasury Translation Retained Shareholders’
(EUR 1,000) Share capital equity shares differences earnings equity total
Shareholders’ equity, 1 Jan. 2020 8,040 1,228 -315 -66 30,037 38,925
Comprehensive result
Net result for the period¹ 13,306 13,306
Translation differences 92 92
Total comprehensive result for the period¹ 92 13,306 13,398
Shareholders’ equity, 31. Dec. 2020¹ 8,040 1,228 -315 26 43,343 52,323
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
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
The notes are an integral part of the financial statements.
30
COMPANY PROFILE
Marimekko Corporation is a Finnish clothing and
its subsidiaries form a Group that designs, sources,
sells and markets clothing, bags and accessories, and
interior decoration products. In addition, the company
produces printed fabrics in its own textile printing
factory.
Marimekko Corporation’s shares are quoted on
Nasdaq Helsinki Ltd. The company is domiciled in
Helsinki, and its registered address is Puusepänka tu 4,
companies is the calendar year.
Copies of the consolidated financial statements
are available at company.marimekko.com and the head
office of the Group’s parent company at Puusepänkatu
4, 00880 Helsinki, Finland.
Marimekko Corporation’s Board of Directors
approved these financial statements for publication
at its meeting on 15 February 2022. According to the
Finnish Companies Act, shareholders have the right to
accept or reject the financial statements at the AGM
held after the publication. The AGM may also amend the
financial statements.
ACCOUNTING POLICY APPLIED IN THE
CONSOLIDATED FINANCIAL STATEMENTS
Accounting policy
The financial statements have been prepared in
accordance with the International Financial Reporting
Standards (IFRS), complying with the IAS and IFRS
standards as well as the SIC and IFRIC interpretations
in force as at 31 December 2021. In the Finnish
Accounting Act and the provisions laid down pursuant
to the Act, International Financial Reporting Standards
refer to the standards approved for use in the EU
in accordance with the procedures laid down in
IAS Regulation (EC) 1606/2002 of the European
Parliament, and the interpretations of these standards.
The notes to the consolidated financial statements
also comply with Finnish accounting and company
legislation which complements IFRS regulations.
The financial statements have been prepared at
historical cost. Financial statement information is
presented in thousands of euros.
Accounting estimates and judgments
The preparation of financial statements in accordance
with IFRS calls for the management to use estimates
and assumptions with regard to the future. The
estimates and assumptions included in the financial
statements are based on the best knowledge of the
management as at the closing of the books. These
estimates and assumptions affect the value of
tangible and intangible assets in the balance sheet
and the income and expenses for the year in the
income statement. Discretion also has to be exercised
when the accounting conventions for the financial
statements are selected and applied, and estimates
have to be made, for example, of depreciation periods
for and any impairments of tangible and intangible
assets, exercising lease extension options or not
exercising lease termination options, valuation of
inventories, income taxes, deferred tax assets and
provisions. The actual figures may deviate from these
estimates.
Principles of consolidation
Marimekko’s consolidated financial statements include
the accounts of the parent company Marimekko
Corporation and its subsidiaries.
Subsidiaries are all entities over which the Group
has control. The Group controls an entity where it is
exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect
those returns through its power to direct the activities
of the entity.
The acquisition method of accounting is used to
eliminate inter-Group shareholding. Subsidiaries are
fully consolidated from the date on which control
is transferred to the Group, or from the date of
establishment. They are deconsolidated from the date
that control ceases. Intra-Group business transactions,
intra-Group profit margins related to inventories and
fixed assets, intra-Group receivables and liabilities and
intra-Group distribution of profit have been eliminated.
Translation of items denominated in foreign
currency
The results and financial position of Group units
are measured in the currency used in the primary
business environment of the unit in question (functional
currency). The consolidated financial statements are
presented in euros, the functional and presentation
currency of the parent company.
Transactions in foreign currencies are recognized
in the functional currency at the exchange rate on the
date of transaction. The foreign-currency-denominated
receivables and liabilities of the parent company
and its Finnish subsidiary have been converted to
euro amounts using the exchange rates quoted by
the European Central Bank on the closing date. The
foreign-currency-denominated receivables and
liabilities of foreign subsidiaries have been converted
at the exchange rate of the country in question on the
closing date. Foreign exchange differences in business
operations are booked in the corresponding income
statement accounts above operating profit and foreign
exchange differences on financial items in financial
income and expenses.
The foreign-currency-denominated income
statements of subsidiaries are converted to euro
amounts using the average exchange rate for the
financial year and the balance sheets at the exchange
rate on the closing date. Differences arising from
translation and translation differences in shareholders’
equity are recorded as a separate item in shareholders’
equity.
Revenue recognition and net sales
The Group sells products in Marimekko’s retail stores
and online store, and through wholesale channels in
Finland and abroad. Most of the Group’s income is
comprised of wholesale and retail sales of products plus
licensing income.
The goods are handed over to the customer one
item or several items at a time in the stores or by a
carrier. The customer can utilize each sold product
separately and the utilization of a single product is
not dependent on other products sold by Marimekko.
Consolidated financial statements, IFRS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
31
Consolidated financial statements, IFRS
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.
Sales revenues are recognized at the amount to
which Marimekko expects to be entitled in exchange
for transferring the promised goods to the customer,
except for amounts collected on behalf of third parties,
such as indirect taxes. Discounts granted are taken
into account when determining the revenue to be
recognized. The fulfillment of performance obligations
is verifiable from payment receipts or transportation
documents. In compliance with IFRS 15, customer
contributions are allocated to distinct goods and
recognized as revenue by the Group when the goods
are handed over to the customer in the store or when
a wholesale customer obtains control of the goods
according to the terms of delivery.
Licensing income is recognized in accordance with
the clauses of the agreement between Marimekko
and the licensee when the later of the following events
occurs:
(a) the subsequent sale or usage occurs, and
(b) the performance obligation to which some or all
of the sales-based or usage-based royalty has been
allocated has been fully or partially satisfied.
The clauses in the licensing agreements provide
for licensing income payable to Marimekko for sales
of products covered by the agreement as percentage-
based licensing income or lump sum payments based
on the fulfillment of performance-based obligations.
Some licensees paying percentage-based licensing
income are according to the agreement obligated to pay
at least an annual minimum licensing income.
Other operating income
Other operating income includes, for example, rental
income from lease agreements classified as other lease
agreements, insurance payouts and sales proceeds of
fixed assets.
Operating profit
IAS 1 Presentation of Financial Statements does not
contain a definition of operating profit. The Group
has defined this concept as follows: operating profit
is the net amount of net sales and other operating
income less purchase expenses adjusted with change
in inventories of finished goods and work in progress
and the expenses incurred due to production for own
use, less employee benefit expenses, depreciation,
possible impairment loss and other operating expenses.
Any income statement items other than the above
are presented below the operating profit. Foreign
exchange differences are included in the operating
profit, provided they are attributable to items related to
business operations. Otherwise they are recognized in
financial items.
Employee benefits
Pension commitments
The pension security of the personnel of the Group’s
Finnish companies has been arranged under the
Finnish statutory employee pension plan (TyEL)
through an external pension insurance company.
Foreign subsidiaries have arranged pensions for their
personnel in accordance with local legislation. The
Group’s pension cover is arranged wholly under defined
contribution schemes. Under a defined contribution
arrangement, the Group pays contributions to publicly
or privately managed pension insurances. These
contributions are either compulsory, based on an
agreement or voluntary. The Group does not have any
payment obligations other than these contributions.
The contributions are recognized as employee benefit
expenses at the time when they become due. Any
contributions paid in advance are included in the assets
on the balance sheet, insofar as they are recoverable as
future refunds or future reductions of contributions.
Share-based payments
Introduced in 2018, the long-term incentive system
granted to the Management Group by the Board of
Directors is valued at fair value at each closing date
and the change in fair value is recorded as an employee
benefit expense in the income statement to the extent
the share-based payments have been vested.
The incentive system is described in greater detail in
note 4 to the consolidated financial statements.
Government grants
Government grants are recognized when it is
reasonably certain that the conditions relating to them
will be met and the grants will be received. Investment
aid is recognized as a reduction to investments and the
aid recorded in the income statement is booked as a
reduction to costs.
The Group has recognized the public grants due to
the coronavirus pandemic to reduce fixed costs. The
grants are not subject to unmet conditions or other
uncertainties.
Interest income
Interest income is recognized on a time-proportion
basis using the effective interest method.
Dividend income
Dividend income is recognized as income when the
right to dividends is established.
Income taxes
Taxes on the Group companies’ financial results
for the period, taxes from previous periods and the
change in deferred taxes are recorded as the Group’s
taxes. Taxes on the taxable income for the period are
calculated on taxable income in accordance with the
tax rate in force in the country in question. Deferred
taxes are calculated on all temporary differences
between the book value and the taxable value.
However, a deferred tax liability is not accounted
for if it arises from the initial recognition of an asset
or liability in a transaction, other than a business
combination, that at the time of the transaction affects
neither accounting nor taxable income. Deferred tax
is not recognized for non-tax-deductible goodwill
and deferred tax is not recognized for distributable
earnings of subsidiaries where it is probable that the
difference will not reverse in the foreseeable future.
Deferred taxes are calculated using the tax rates set by
the closing date. Deferred tax assets are recognized to
the extent that it is probable that future taxable profit,
32
against which the temporary difference can be utilized,
will be available.
Earnings per share
The basic earnings per share are calculated by dividing
the result for the period attributable to equity holders of
the parent company by the weighted average of shares
outstanding. The weighted average number of shares
used to calculate the diluted earnings per share takes
into account the diluting effect of the conversion of
potential common shares into actual shares during the
period. There are no potential shares outstanding at the
moment.
Intangible assets
Intangible assets with finite useful lives are recognized
in the balance sheet at original cost less depreciation.
Depreciation of intangible assets is carried out on a
straight-line basis over their estimated useful life.
The estimated useful lives are as follows:
• intangible rights 5 years
• computer software 3–5 years.
The major intangible assets are computer software.
In addition, intangible rights include trademarks.
IFRS Interpretations Committee published in April
2021 their final agenda decision on the accounting
of configuration and customization costs in a cloud
computing arrangement (IAS 38 Intangible Assets).
In this agenda decision, the Committee considered
when an intangible asset can be recognized in relation
to configuration and customization of an application
software. Based on the agenda decision, Marimekko
has changed its accounting principle related to costs
in cloud computing arrangements. The accounting
for cloud computing arrangements now depends on
whether the cloud-based software classifies as a
software intangible asset or a service contract. Those
arrangements where the company does not have
control over the underlying software are accounted
for as service contracts providing the company with
the right to access the cloud provider’s application
software over the contract period. The ongoing fees
to obtain access to the application software, together
with related configuration or customization costs
incurred, are recognized as other operating expenses
when the services are received.
Tangible assets
Tangible assets consist of leased fixed assets and
owned fixed assets which mainly comprise buildings,
machinery and equipment. Tangible assets also
include expenditures on conversions and renovations
of leased premises comprising, for example,
completion work on business interiors in rented
premises. Tangible assets are recorded in the balance
sheet at original cost less depreciation. Depreciation
of tangible assets is carried out on a straight-line
basis over their estimated useful life.
The estimated useful lives are as follows:
• buildings and structures 3–30 years
• machinery and equipment 3–15 years.
The residual value and useful life of tangible
assets are reviewed at the end of each financial year
and if necessary, adjusted to reflect changes in the
expectation of economic benefit.
If a tangible asset consists of several parts
with different useful lives, each part is treated as a
separate asset. Significant cost of replacing a part
is capitalized when the company will derive economic
benefit from the asset. Other expenses such as regular
maintenance, repair and servicing costs are entered
as expenses in the income statement when they are
incurred.
Borrowing costs
Borrowing costs are recognized as expenses during the
financial year in which they were incurred. Borrowing
costs have not been recognized as part of the
acquisition cost of assets.
Provisions and contingent liabilities
A provision is recognized when the Group has a present
legal or constructive obligation as a result of a past
event, and it is probable that an outflow of resources
will be required to settle the obligation and a reliable
estimate of the amount of the obligation can be made.
A restructuring provision is recognized when the
Group has compiled a detailed restructuring plan,
launched its implementation or informed the parties
concerned.
A contingent liability is a potential liability based
on previous events. It depends on the realization of
an uncertain future event beyond the Group’s control.
Contingent liabilities also include obligations which
will most likely not lead to a payment or the amount
of which cannot be reliably determined. Contingent
liabilities are disclosed in the notes.
Impairment
On each closing date, asset items are assessed for
indications of impairment. If there are such indications,
the recoverable amount of said asset item is estimated.
The impairment recognized is the amount by which the
book value of the asset item exceeds its recoverable
amount, which is the higher of its net selling price or
value in use. Value in use is based on discounted future
net cash flows as a rule.
Lease agreements
In accordance with IFRS 16, the Group assesses at
the inception of a contract whether the contract is, or
contains, a lease. A contract is, or contains, a lease
if the contract conveys the right to control the use of
an identified asset for a period of time in exchange
for consideration. The Group has elected to separate
non-lease components from lease components at the
inception of a contract.
The Group recognizes a right-of-use asset and a
lease liability at the lease commencement date. The
right-of-use asset is initially measured at cost, which
comprises the initial amount of the lease liability
adjusted for any lease payments made before the
commencement date, incentives received, initial direct
costs incurred and an estimate of costs to restore the
underlying asset. The right-of-use asset is depreciated
over the lease term.
The lease liability is initially measured at the present
value of the lease payments that are not paid at the
commencement date, discounted using the interest
rate implicit in the lease or, if that rate cannot be readily
determined, the Group’s incremental borrowing rate.
The lease liability is measured at amortized cost using
the effective interest method. Lease payments included
in the measurement of the lease liability comprise the
following: fixed payments and variable lease payments
that depend on an index or a rate. An option to extend
Consolidated financial statements, IFRS
33
the lease term is included in the lease term if it is
reasonably certain that the option will be exercised.
The lease term for renewable leases is determined
based on non-cancelable lease term of the contract.
Further periods are included in the lease term to
the extent that the management considers that it is
reasonably certain that the option to terminate the
contract is not exercised.
The Group has elected not to recognize right-of-use
assets and lease liabilities for short-term leases (max.
12 months) and leases of low-value assets. The Group
recognizes the lease payments associated with these
leases as an expense on a straight-line basis over the
lease term.
Marimekko is a lessee. Lease contracts include
headquarter and printing facilities in Helsinki, retail
stores in Finland and other countries where Marimekko
operates as well as company housing and leasing cars.
In general, lease contracts vary from 1 year to 15 years.
In the financial years 2020 and 2021, Marimekko
has applied an amendment to IFRS 16, published by
the IASB in 2020, regarding the treatment of rent
concessions and the amendment to IFRS 16 published
in 2021, which extended the period of application
of the relief. The Group has applied the practical
expedient stipulated by the amendment to not treat rent
concessions granted due to the coronavirus pandemic
as changes in leases under IFRS 16. Leases that only
involved a rent exemption were treated as negative
variable rents in the income statement.
Inventories
Inventories are presented at the acquisition cost or at
the lower probable net realization value. The acquisition
cost of manufactured inventories includes not only
purchase expenditure on materials, direct labor and
other direct costs, but also a share of the fixed and
variable general costs of production. Net realizable
value is the estimated selling price in the ordinary
course of business, less the estimated costs for
completion and selling expenses.
Financial assets
Financial assets are classified based on the Group’s
financial asset management business model and their
contractual cash flow characteristics into the following
categories: measured at amortized cost and measured
at fair value through profit or loss.
Financial assets measured at amortized cost consist
of other financial assets, trade receivables, other
receivables, prepaid expenses and accrued income,
as well as cash and cash equivalents. They are initially
recognized at fair value and subsequently at amortized
cost using the effective interest method.
For the estimation of expected credit losses on
trade receivables, the so-called simplified approach
permitted by IFRS 9 is used, according to which credit
losses are recorded at an amount equal to lifetime
expected credit losses. Expected credit losses are
estimated based on historical credit losses, and
the model also takes into account the information
available on future financial conditions at the time of
review. Expected credit losses are recognized in other
operating expenses in the income statement.
A final impairment of trade receivables is recognized
when there is objective evidence that the Group will
not receive all of the benefits on the original terms.
Indications of the impairment of trade receivables
include significant financial difficulties of the debtor,
the likelihood of bankruptcy, failure to make payments,
or a delay of over 90 days in paying. Impairment loss
is recognized under other operating expenses in the
income statement.
Financial assets measured at fair value through
profit or loss comprise shares and they are included in
noncurrent assets, unless it is intended that they will
be held for less than 12 months from the closing date,
in which case they are included in current assets. The
other financial assets comprise listed shares.
Cash and cash equivalents
The Group’s cash and cash equivalents include cash on
hand and at banks. The Group does not have any other
items classified as cash and cash equivalents.
Dividends, shareholders’ equity and treasury
shares
The Board of Directors’ proposal for dividend
distribution has not been recognized in the financial
statements; dividends are only recognized on the basis
of the AGM’s approval.
Outstanding common shares are presented as share
capital. Costs related to the granting or acquisition of
the company’s own equity instruments are presented
as equity allowance. If the company purchases its own
shares, the price including direct costs is recognized as
decrease in equity.
Financial liabilities
Financial liabilities are initially recognized at fair value
including transaction costs and subsequently at
amortized cost using the effective interest method.
Financial liabilities are non-current, unless they are
repayable on demand or the Group intends to repay
them within the next 12 months.
New standards and interpretations and change in
accounting principles
These consolidated financial statements have been
prepared using the same accounting principles as
were applied in the 2020 financial statements except
for the change in accounting principles due to the
IFRS Interpretations Committee’s (IFRIC) agenda
decision on cloud computing arrangements, which is
presented later. Other new standards, interpretations
or amendments to existing standards have had no
significant impact on the consolidated financial
statements.
IFRIC published in April 2021 their final agenda
decision on the accounting of configuration and
customization costs in a cloud computing arrangement
(IAS 38 Intangible Assets). In this agenda decision,
the Committee considered when an intangible asset
can be recognized in relation to configuration and
customization of an application software. Based on
the agenda decision, Marimekko has changed its
accounting principle related to costs in cloud computing
arrangements. The accounting for cloud computing
arrangements now depends on whether the cloud-
based software classifies as a software intangible
asset or a service contract. Those arrangements
where the company does not have control over the
underlying software are accounted for as service
contracts providing the company with the right to
access the cloud provider’s application software over
the contract period. The ongoing fees to obtain access
Consolidated financial statements, IFRS
34
to the application software, together with related
configuration or customization costs incurred, are
recognized under other operating expenses when the
services are received.
This change in accounting principle increased
Marimekko’s fixed costs and correspondingly lowered
gross investments and depreciations. Based on the
agenda decision, Marimekko has booked a total of EUR
1.6 million as costs. This amount was earlier activated
as costs in intangible assets. The amount booked for
financial year 2021 is EUR 1 million. For financial year
Consolidated financial statements, IFRS
2020, a total of EUR 0.6 million has been retroactively
booked. The effects of the change are presented in
more detail below.
Adoption of new and amended standards in future
financial years
The new and amended standards to be applied in future
financial years do not, according to the company’s
estimate, have a significant impact on the company’s
consolidated financial statements.
CONSOLIDATED INCOME STATEMENT
1–12/2020 Change in 1–12/2020
(EUR 1,000) Reported earlier accounting principle Restated
Depreciation and impairments -12,556 37 -12,520
Other operating expenses -18,076 -610 -18,685
Operating profit 19,345 -573 18,772
Result before taxes 17,562 -573 16,989
Income taxes -3,798 115 -3,683
Net result for the period 13,765 -458 13,306
Comprehensive result for the period 13,857 -458 13,398
Basic and diluted earnings per share
calculated on the result attributable to
equity holders of the parent company, EUR 1.70 -0.06 1.64
CONSOLIDATED BALANCE SHEET
31 Dec. 2020 Change in 31 Dec. 2020
(EUR 1,000) Reported earlier accounting principle Restated
Intangible assets 1,077 -573 504
Deferred tax assets 860 115 974
Retained earnings 43,802 -458 43,343
CONSOLIDATED CASH FLOW STATEMENT
1–12/2020 Change in 1–12/2020
(EUR 1,000) Reported earlier accounting principle Restated
Net result for the period 13,765 -458 13,306
Depreciation and impairments 12,556 -37 12,520
Taxes 3,798 -115 3,683
Investments in tangible and intangible assets -2,846 610 -2,236
KEY FIGURES
31 Dec. 2020 Change in 31 Dec. 2020
Reported earlier accounting principle Restated
Equity per share, EUR 6.51 -0.06 6.45
Return on investment (ROI), % 22.5 -0.70 21.8
Return on equity (ROE), % 30.0 -0.80 29.2
Equity ratio, % 46.6 -0.20 46.4
Gearing, % -6.0 -0.10 -6.1
Gross investments, EUR 1,000 2,143 -610 1,533
35
Consolidated financial statements, IFRS
Net sales by market area
(EUR 1,000) 2021 2020
Finland
Retail sales 53,547 45,928
Wholesale sales 38,547 25,058
Licencing income 205 158
Total 92,299 71,145
Scandinavia
Retail sales 3,785 4,311
Wholesale sales 8,651 5,572
Licencing income 225 -
Total 12,661 9,883
EMEA
Retail sales 1,906 2,160
Wholesale sales 9,764 11,400
Licencing income 1,225 401
Total 12,895 13,961
(EUR 1,000) 2021 2020
North America
Retail sales 5,583 3,952
Wholesale sales 2,444 2,268
Licencing income 371 247
Total 8,397 6,466
Asia-Pacific
Retail sales 4,207 3,609
Wholesale sales 21,305 16,495
Licencing income 462 2 010
Total 25,974 22,114
International sales in total
Retail sales 15,481 14,032
Wholesale sales 42,164 35,734
Licencing income 2,283 2,658
Total 59,927 52,424
Retail sales 69,027 59,960
Wholesale sales 80,711 60,792
Licencing income 2,488 2,816
Total 152,227 123,568
Net sales by product line
(EUR 1,000) 2021 2020
Fashion 43,848 39,740
Home 78,677 56,262
Bags and accessories 29,702 27,566
Total 152,227 123,568
1. SEGMENT INFORMATION AND DISTRIBUTION OF SALES
The Group’s business segment is the Marimekko business. The segment information presented by the Group
is based on internal reporting to the chief operational decision-maker. The President and CEO of the company acts as
the chief operational decision-maker.
The total amount of assets in Finland was EUR 118,602 thousand (99,766¹), of which the amount of non-current assets
excluding financial instruments and deferred tax assets was EUR 30,569 thousand (35,706). The amount of assets in
other countries was EUR 14,285 thousand (14,605), of which non-current assets accounted for EUR 3,638 thousand
(6,656).
Marimekko has no individual customers representing 10 percent or more of the Group’s total income.
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
36
Consolidated financial statements, IFRS
Investments (excluding the impact of IFRS 16)
(EUR 1,000) 2021 2020
Finland¹ 207 1,533
Total¹ 207 1,533
2. OTHER OPERATING INCOME
(EUR 1,000) 2021 2020
Rental income 54 54
Other income 94 287
Total 148 341
3. RAW MATERIALS AND CONSUMABLES
(EUR 1,000) 2021 2020
Materials and supplies
Purchases during the financial year 40,808 29,279
Increase (-) / decrease (+) in inventories -326 -296
Total 40,482 28,983
External services 21,001 19,254
Total 61,484 48,237
Exchange rate differences included in raw materials and consumables
Exchange rate gains (-) / losses (+) on purchases 93 -42
4. EMPLOYEE BENEFIT EXPENSES
(EUR 1,000) 2021 2020
Salaries, wages and bonuses 21,273 19,429
Share-based payments 1,224 1,487
Pension expenses – defined contribution plans 2,912 2,445
Other indirect social expenditure 2,830 1,973
Total 28,239 25,334
In 2020, wages and salaries included EUR 1,023 thousand in public grants received due to the coronavirus pandemic.
Average number of employees
2021 2020
Salaried employees 379 412
Production personnel 22 22
Total 401 434
Share-based payments
During the financial year, the Marimekko Group had a long-term incentive system targeted at the Management Group.
On 14 February 2018, the Board of Directors of Marimekko Corporation agreed on establishing a long-term incentive
system. The system was composed of two earnings periods, which were 1 April 2018–30 September 2021 and
1 April 2018–31 January 2022. The possible reward for each earnings period is based on the total yield on Marimekko
Corporation’s shares, including dividends. The reward is planned to be paid half in company shares and half in cash.
The shares received as part of the reward are subject to a two-year transfer restriction. Earning the reward requires
that the person is still working for the company at the time of the payment. The annual maximum value of the reward
paid to a member of the Management Group under the incentive system equals the approximate value of annual gross
salary. The system encompasses nine Management Group members, including the President and CEO. The company
has the option of paying the reward entirely in cash by a decision of the Board of Directors.
The Board of Directors of Marimekko decided on the payment of the first part of the reward on 3 November 2021 and
in accordance with the terms of the system, a total of 6,640 Marimekko shared held by the company were transferred
to the members of the Management Group on 5 November 2021.
The fair value of granted share-based payments has been determined using the binary cash-or-nothing call option
valuation model. The significant measurement parameters in the model are an initial share value of EUR 14.21, i.e.
EUR 12.92, which is the weighted average share price between 1 and 31 March 2018, plus 10 percent, and a volatility
of 27 percent. The grant date of the share-based payments is the date of the Board resolution. The fair value of the
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
37
Consolidated financial statements, IFRS
payments at the end of the grant month was EUR 1.76/option, so the total fair value of the plan amounted to EUR 813
thousand. Granted share-based payments are subsequently valued at fair value at each closing date and the change
in fair value is recorded in the income statement to the extent the payments are vested. The reward payable for an
earnings period is an amount equivalent to 1.5 months’ gross salary for each one (1) euro, with which the closing share
price (inclusive of dividends) exceeds the initial share value of EUR 14.21. Gross salary is defined for the purposes
of the plan as the fixed monthly salary, inclusive of fringe benefits, paid at the beginning of the earnings period. At
the end of 2021, the fair value of the share-based payments vested and booked as current liabilities was EUR 2,253
thousand (1,656), i.e. the value of the second earning period of the long-term incentive system. Correspondingly, the
share booked as non-current liabilities was EUR 0 thousand (1,476).
The EUR 1,224 thousand (1,487) increase in fair value, calculated as described above, was booked in employee benefit
expenses in the 2021 consolidated income statement.
5. DEPRECIATION AND IMPAIRMENTS
(EUR 1,000) 2021 2020
Intangible assets
Intangible rights 31 44
Computer software¹ 300 330
Total¹ 331 374
Tangible assets
Buildings and structures 311 549
Machinery and equipment 577 659
Right-of-use assets, buildings and structures 10,567 10,804
Right-of-use assets, machinery and equipment 88 134
Total 11,542 12,146
Total¹ 11,874 12,520
6. OTHER OPERATING EXPENSES
(EUR 1,000) 2021 2020
Leases 118 -517
Marketing 7,521 5,274
Management and maintenance of business premises 1,376 1,391
Administration¹ 8,748 7,050
Other expenses 4,917 5,488
Total¹ 22,680 18,685
Exchange rate differences included in other operating expenses
Exchange rate gains (-) / losses (+) on sales -158 -221
Rents
(EUR 1,000) 2021 2020
Low-value rents 446 499
Variable rents² -328 -1,016
Total 118 -517
Government grants
The Group has recognized the public grants received due to the coronavirus pandemic to reduce fixed costs.
(EUR 1,000) 2021 2020
Salaries, wages and bonuses - 1,023
Rents - 261
Other operating expenses 40 108
Total 40 1,392
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
² The Group has applied the practical expedient stipulated by an amendment to IFRS 16 to not treat rent concessions granted due to the coronavirus pandemic as changes in leases under IFRS 16. Hence, variable rents include EUR 522
thousand (1,284) in rent relief recognized directly in the income statement in accordance with the amendment to IFRS 16. Variable rents also include EUR 0 thousand (261) in public grants received due to the coronavirus pandemic.
38
Consolidated financial statements, IFRS
Auditor’s fee
(EUR 1,000) 2021 2020
KPMG
Audit 111 97
Other services 47 29
Total 158 126
Others
Audit 6 5
Total 6 5
Remuneration to KPMG Oy Ab on other services to Marimekko Group companies: EUR 15 thousand (12).
7. FINANCIAL INCOME
(EUR 1,000) 2021 2020
Interest income on loans and other receivables 6 14
Exchange rate gains, realized 26 65
Exchange rate gains, unrealized 629 514
Change in fair value of shares 191 -
Total 851 592
8. FINANCIAL EXPENSES
(EUR 1,000) 2021 2020
Interest expenses on financial liabilities measured at amortized cost 262 230
Interest expenses on lease liabities 694 773
Exchange rate losses, realized 269 400
Exchange rate losses, unrealized 116 898
Other financial expenses 63 74
Total 1,403 2,375
9. INCOME TAXES
(EUR 1,000) 2021 2020
Taxes on taxable earnings for the financial year 6,238 4,043
Taxes from previous financial years 0 116
Deferred taxes¹ 51 -476
Total¹ 6,289 3,683
Reconciliation statement of taxes calculated on the basis of tax expenses in the income statement and the Group’s
Finnish tax rate (20 percent in both 2021 and 2020)
Result before taxes¹ 30,697 16,989
Taxes calculated at the Finnish tax rate¹ 6,139 3,398
Different tax rates of foreign subsidiaries -17 -19
Non-recognized deferred tax assets on taxable losses 68 232
Taxes from previous financial years 0 116
Acquisition cost of shares transferred 104 -
Non-deductible items -5 -43
Taxes in the income statement¹ 6,289 3,683
10. EARNINGS PER SHARE
2021 2020
Net result for the period, EUR 1,000¹ 24,408 13,306
Weighted average number of shares, 1,000 8,111 8,110
Basic and diluted earnings per share, EUR¹ 3.01 1.64
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
39
Consolidated financial statements, IFRS
11. NON-CURRENT ASSETS
11.1 Intangible assets
2021
Advance payments
Intangible Computer and acquisitions
(EUR 1,000) rights software in progress Total
Acquisition cost, 1 Jan. 2021 2,460 8,126 10,586
Translation differences 2 -37 -34
Increases 65 102 471 638
Decreases -32 -287 -319
Transfers between categories 147 -471 -325
Acquisition cost, 31 Dec. 2021 2,495 8,051 10,547
Accumulated depreciation, 1 Jan. 2021 2,390 7,692 10,082
Translation differences 2 -37 -34
Accumulated depreciation of decreases -32 -287 -319
Depreciation during the financial year 31 300 331
Accumulated depreciation, 31 Dec. 2021 2,391 7,669 10,060
Book value, 31 Dec. 2021 104 383 487
2020
Advance payments
Intangible Computer and acquisitions
(EUR 1,000) rights software in progress Total
Acquisition cost, 1 Jan. 2020 2,410 8,014 29 10,453
Change in accounting principle¹ -610 -610
Translation differences 2 -150 -148
Increases 48 330 378
Transfers between categories 541 -29 512
Acquisition cost, 31 Dec. 2020¹ 2,460 8,126 10,586
Accumulated depreciation, 1 Jan. 2020 2,350 7,510 9,860
Translation differences -4 -149 -153
Depreciation during the financial year¹ 44 330 374
Accumulated depreciation, 31 Dec. 2020¹ 2,390 7,692 10,082
Book value, 31 Dec. 2020¹ 70 434 504
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
40
Consolidated financial statements, IFRS
11.2 Tangible assets
2021
Right-of-use Right-of-use Advance
Machinery assets, assets, payments and
Buildings and and buildings and machinery and acquisitions
(EUR 1,000) Land structures equipment 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
41
Consolidated financial statements, IFRS
11.2 Tangible assets
2020
Right-of-use Right-of-use Advance
Machinery assets, assets, payments and
Buildings and and buildings and machinery and acquisitions
(EUR 1,000) Land structures equipment structures equipment in progress Total
Acquisition cost, 1 Jan. 2020 55 5,032 22,049 46,253 345 1,074 74,808
Translation differences -47 -296 -426 -769
Increases 629 79 11,901 56 1,057 13,722
Transfers between categories 1,276 183 -1,971 -512
Acquisition cost, 31 Dec. 2020 55 6,890 22,015 57,728 402 160 87,249
Accumulated depreciation, 1 Jan. 2020 4,265 19,279 10,710 122 34,376
Translation differences -64 -269 -208 -541
Depreciation during the financial year 549 658 10,804 134 12,145
Accumulated depreciation, 31 Dec. 2020 4,750 19,668 21,306 256 45,981
Book value, 31 Dec. 2020 55 2,140 2,347 36,422 145 160 41,269
11.3 Other financial assets
(EUR 1,000) 2021 2020
Other financial assets 533 16
Other financial assets comprise listed shares and bonds.
42
Consolidated financial statements, IFRS
12. CURRENT ASSETS
12.1 Inventories
(EUR 1,000) 2021 2020
Raw materials and consumables 5,043 4,741
Finished products/goods 20,940 17,696
Total 25,983 22 ,436
Impairment of inventories -1,062 -777
12.2 Trade and other receivables
(EUR 1,000) 2021 2020
Trade receivables 10,434 6,661
Prepayments for inventory purchases - 16
Other receivables 612 545
Prepaid expenses and accrued income 983 904
Total 12,029 8,126
Prepaid expenses and accrued income
Royalty receivables 302 237
Employee benefits 6 20
Other prepaid expenses and accrued income 675 646
Total 983 904
Analysis of trade receivables by age
(EUR 1,000) 2021 2020
Trade receivables not past due 9,165 4,932
Past due
less than 30 days 1,040 1,007
30–60 days 169 261
more than 60 days 60 461
Total 10,434 6,661
The amount of credit loss provisions recognized on trade receivables, EUR 30 thousand, reduces receivables in the
balance sheet. The expected credit loss risk is not material due to the Group’s effective credit management policy,
where the credit history of wholesale customers is monitored regularly and credit insurance, prepayments, guarantees
and letters of credit are used when needed.
43
Consolidated financial statements, IFRS
13. SHARES AND OTHER EQUITY
Reserve for invested
non-restricted Number of
Number of shares Share capital, EUR equity, EUR treasury shares Treasury shares, EUR
1 Jan. 2020 8,109,834 8,040,000 1,227,957 20,000 -314,720
31 Dec. 2020 8,109,834 8,040,000 1,227,957 20,000 -314,720
1 Jan. 2021 8,109,834 8,040,000 1,227,957 20,000 -314,720
Share-based payments 6,640 - - -6,640 104,487
31 Dec. 2021 8,116,474 8,040,000 1,227,957 13,360 -210,233
Marimekko Corporation’s Articles of Association do not specify maximum share capital. Marimekko Corporation
has one series of shares; the shares do not have a nominal value. All shares in issue have been paid in full. As at
31 December 2021, Marimekko Corporation held 13,360 treasury shares. The Group does not have any share option
schemes.
The Board of Directors proposed on 15 February 2022 to the AGM on 12 April 2022 that a regular dividend of EUR 1.60
per share and an extraordinary dividend of EUR 2.00 per share be paid for 2021.
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.
The reserve for invested non-restricted equity contains other equity-like investments and the share subscription price
to the extent that this is not entered in share capital under a specific decision.
44
Consolidated financial statements, IFRS
Changes in deferred taxes in 2020
Recognized in the
(EUR 1,000) 1 Jan. 2020 income statement 31 Dec. 2020
Deferred tax assets
Internal margin of inventories 433 -32 401
Employee benefits 328 297 626
Lease liabilities 82 63 145
Intangible assets¹ - 115 115
Other 9 -9 -
Total¹ 853 434 1,286
Deferred tax liabilities
Accumulated depreciation difference -204 29 -175
Fixed costs included in inventories -134 -3 -138
Total -338 26 -312
Deferred tax asset, net¹ 515 974
Deferred tax assets are recognized for tax losses carried forward to the extent that the realization of the related tax
benefit through future taxable profits is probable. Deferred tax assets amounting to EUR 46 thousand (176) have not
been recognized.
14. DEFERRED TAX ASSETS AND LIABILITIES
Deferred tax assets and liabilities are offset against each other where the Group has a legally enforceable right to offset
deferred tax assets and liabilities based on taxable earnings for the period against each other and where they relate to
income taxes levied by the same taxation authority on the same taxpayer or different taxpayers and the intention is to
settle on a net basis. The amounts offset against each other are as follows:
Changes in deferred taxes in 2021
Recognized in the
(EUR 1,000) 1 Jan. 2021 income statement 31 Dec. 2021
Deferred tax assets
Internal margin of inventories 401 -78 323
Employee benefits 626 -176 450
Lease liabilities 145 35 180
Intangible assets 115 206 321
Total 1,287 -12 1,275
Deferred tax liabilities
Accumulated depreciation difference -175 -7 -182
Fixed costs included in inventories -138 -14 -151
Total -312 -21 -333
Deferred tax asset, net 975 942
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
45
17. FINANCIAL ASSETS AND LIABILITIES
Financial assets measured at fair value through profit or loss
(EUR 1,000) 2021 2020
Other financial assets 209 16
Financial assets measured at fair value through profit or loss comprise listed shares. Their carrying amount equals
their fair value.
Financial assets measured at amortized cost
Other financial assets 324 -
Trade receivables 10,434 6,661
Other receivables, prepaid expenses and accrued income 1,595 1,465
Cash and cash equivalents 59,726 41,045
Financial liabilities measured at amortized cost
Trade payables 10,874 8,398
Credit facilities drawn down 1,798 725
Other liabilities 17,398 13,762
The fair value of financial assets and financial liabilities measured at amortized cost equals their book value.
18. GUARANTEES, CONTINGENT LIABILITIES AND OTHER COMMITMENTS
(EUR 1,000) 2021 2020
Other own liabilities and commitments
Lease liabilities for machinery and equipment 834 808
Lease liabilities relate to low-value and short-term leases not recorded in the balance sheet.
Consolidated financial statements, IFRS
15. INTEREST-BEARING LIABILITIES
15.1 Non-current liabilities
(EUR 1,000) 2021 2020
Lease liabilities 21,976 26,996
Total 21,976 26,996
15.2 Current liabilities
(EUR 1,000) 2021 2020
Lease liabilities 8,503 10,158
Financial liabilities 1,798 725
Total 10,301 10,883
The interest rate varied between 1.5 and 4.4 percent (1.5–4.5).
16. OTHER CURRENT LIABILITIES
(EUR 1,000) 2021 2020
Trade payables and other current liabilities
Trade payables 10,874 8,398
Other payables 5,507 3,560
Accrued liabilities and deferred income 9,937 8,563
Advances received 1,955 1,639
Total 28,272 22,160
Accrued liabilities and deferred income
Employee benefits 7,207 5,738
Other accrued liabilities and deferred income 2,730 2,825
Total 9,937 8,563
46
Consolidated financial statements, IFRS
19. RELATED PARTY TRANSACTIONS
The Group’s related parties include the members of the Board of Directors and the Management Group as well
as their controlled entities, the Group’s parent company and its subsidiaries.
The relationships of the Group’s parent company and subsidiaries are as follows:
Parent company
Subsidiaries
Company and domicile Group’s holding, % Share of voting rights, %
Marimekko Services Oy, Helsinki, Finland 100 100
Marimekko AB, Stockholm, Sweden² 100 100
Marimekko Australia PTY Ltd, Victoria, Australia 100 100
Marimekko GmbH, Frankfurt am Main, Germany 100 100
Marimekko North America LLC, Delaware, United States 100 100
Marimekko North America Retail LLC, Delaware, United States 100 100
Marimekko North America Holding Co, Delaware, United States 100 100
Marimekko Trading (Shanghai) Co., Ltd, Shanghai, China 100 100
Marimekko UK Ltd, London, United Kingdom 100 100
The following transactions were carried out with related parties:
Management’s employee benefits
Remuneration of the President and CEO and other members of the Management Group
(EUR 1,000) 2021 2020
Mika Ihamuotila, Chair of the Board 53 53
Tiina Alahuhta-Kasko, President and CEO 464 443
Other members of the Management Group 1,606 1,311
Total 2,123 1,807
Share-based incentive system
(EUR 1,000) 2021 2020
Tiina Alahuhta-Kasko, President and CEO 552 -
Other members of the Management Group 1,550 -
Total 2,102 -
Remuneration to the Board of Directors
(EUR 1,000) 2021 2020
Rebekka Bay³ - 10
Elina Björklund 43 47
Carol Chen 26 -
Arthur Engel - 26
Mika Ihamuotila 48 48
Mikko-Heikki Inkeroinen 30 32
Helle Priess - 26
Catharina Stackelberg-Hammarén 30 32
Tomoki Takebayashi 26 -
Total 203 221
Management’s employee benefits, total 4,428 2,028
Pension benefits include only statutory pension payments. The management does not have additional pension
benefits.
Related parties are among beneficiaries of a share-based incentive system. The management’s long-term incentive
system is presented in greater detail in note 4 to the financial statements.
¹ Marimekko Corporation has branches in France and Belgium.
² Marimekko AB has branches in Norway and Denmark.
³ Member of the Management Group starting 1 September 2020.
47
Consolidated financial statements, IFRS
20. FINANCIAL RISK MANAGEMENT
During the normal course of its business operations, the Marimekko Group is exposed to financial risks. The principal
financial risks are liquidity risk, credit risk, foreign currency risk and interest rate risk.
The company’s Board of Directors has confirmed the principles, responsibilities and organization of risk management
for the Group. The Board of Directors also monitors the success of risk management. According to its risk management
principles, Marimekko classifies its risks as strategic, operational, economic and accident risks. Economic risks include
financial risks. Responsibility for the implementation of risk management measures concerning financial risks lies
with the Group’s CFO. The main objective of financial risk management is to ensure reasonably-priced financing in all
circumstances, and thereby minimize the unfavorable effects, if any, on the Group’s financial performance. Marimekko
has not used derivative instruments when hedging against risks.
Liquidity risk
The Group continuously seeks to assess and monitor the amount of funding required for business operations to
ensure that sufficient liquid funds are available for daily business and repayment of maturing debts. The assessment
is based on monthly cash flow and liquidity forecasts. The Group aims to maintain a high liquidity level at all times in
order to eliminate liquidity risk. In order to minimize liquidity risk, the Group’s near-term and next few years’ financing
needs can be covered by liquid funds as well as committed long-term or short-term credit facilities or credit facilities
valid until further notice. At the end of the financial year, the Group had access to credit facilities totaling EUR 16,780
thousand (17,871). The amount of credit facilities drawn down at the end of the year was EUR 1,798 thousand (725).
The following tables present the maturity analysis for the Group’s financial liabilities; the figures are not discounted,
and they include both interest payments and capital repayments.
31 Dec. 2021
(EUR 1,000) Less than 1 year 1–2 years 3–5 years Over 5 years
Lease liabilities 8,566 5,500 7,387 9,028
Credit facilities drawn down 1,798 - - -
Trade and other payables 28,272 - - -
Total 38,636 5,500 7,387 9,028
31 Dec. 2020
(EUR 1,000) Less than 1 year 1–2 years 3–5 years Over 5 years
Lease liabilities 10,158 7,319 8,656 11,021
Credit facilities drawn down 725 - - -
Trade and other payables 22,160 - - -
Total 33,043 7,319 8,656 11,021
Credit risk
The trade receivables generated in the Group’s wholesale operations are associated with a credit risk, which is
reduced by the Group’s broad and geographically diverse clientele. Marimekko continuously monitors the credit limits,
credit history and financial situation of its customers. The Group has a centralized process in place for this purpose.
Responsibility for the credit monitoring process lies with the Group’s CFO. The credit risk related to the wholesale
business is also reduced by means of credit insurance, advance payments, bank guarantees and letters of credit.
Retail customers pay for their purchases using cash or the most common debit/credit cards.
Note 12.2 (Trade and other receivables) to the consolidated financial statements includes an analysis of trade
receivables by age.
48
Consolidated financial statements, IFRS
Foreign currency risk
The Group’s currency risk consists of sales and purchases made in foreign currency as well as balance sheet items
and foreign-currency-denominated net investments in units abroad.
Transaction risk
The Group’s transaction risk derives from currency flows connected with wholesale and retail sales as well as
purchases and operating expenses of the Group’s business units, and from loans and receivables denominated in
foreign currency. The Group’s principal sales currency is the euro. The other significant sales and invoicing currencies
are the US dollar, Swedish krona, Danish krone, Norwegian krone, Australian dollar and Canadian dollar. The
principal currencies used for purchases are the euro and, to a lesser extent, the US dollar. In 2021, foreign-currency-
denominated sales accounted for approximately 18 percent (17) of the Group’s total sales and foreign-currency-
denominated purchases made up about 15 percent (17) of the Group’s purchases.
Marimekko protects itself against the transaction risk of sales by taking account of the estimated exchange rate
changes at the time of sale when carrying out wholesale and retail pricing of products. Foreign subsidiaries are
financed primarily in local currency, so they do not incur significant transaction risk.
The Group’s transaction exposure
Foreign-currency-denominated assets and liabilities (cash and cash equivalents, trade receivables and trade payables)
converted to euro amounts using the exchange rates quoted on the closing date
(EUR 1,000) 2021 2020
USD SEK AUD USD SEK AUD
Current assets 2,066 4,142 4,190 1,323 2,180 905
Current liabilities -1,165 -490 -165 -535 -543 -552
Foreign currency exposure in the balance sheet 901 3,652 4,025 787 1,637 354
Sensitivity analysis, effect on net result for the period
The strengthening or weakening of the euro against the US dollar, the Swedish krona or the Australian dollar would,
given that all other factors remain unchanged, impact the Group’s net result for the period as follows. The impact
portrays the Group’s transaction risk.
2021 2020
USD SEK AUD USD SEK AUD
Strengthening of the euro by 10 percent
Effect on net result for the period, EUR 1,000 246 -659 -239 354 -380 -159
Translation risk
The Marimekko Group incurs translation risk when the financial statements of foreign subsidiaries are translated
into euro amounts in the consolidated financial statements. For foreign-currency-denominated net investments, the
effects of changes in foreign exchange rates appear as translation differences in the Group’s equity. Marimekko has
so far not hedged against translation risk for equity, as the subsidiary sales and net investments are small from the
Group’s perspective.
Interest rate risk
The Group’s interest rate risk primarily results from changes in interest rates on cash and cash equivalents and on
current and noncurrent interest-bearing liabilities due to changes in market rates. Changes in the interest rates of
these assets and liabilities have an impact on the Group’s profit.
(EUR 1,000) 2021 2020
Cash and cash equivalents 59,726 41,045
Lease liabilities 30,480 37,155
Credit facilities drawn down 1,798 725
49
Consolidated financial statements, IFRS
21. CAPITAL MANAGEMENT
The purpose of capital management is to maintain a capital structure that optimally supports the Group’s strategic
objectives. Efficient capital management measures ensure normal operating conditions for the business and increase
the shareholder value in the long term. The principal factors affecting the capital structure are profitability, dividend
distribution and investments. The capital managed equals the shareholders’ equity shown on the consolidated balance
sheet. No external capital requirements are applied to the Group.
The Group continuously monitors its capital structure. The Group’s strategic objective is to keep the ratio of net debt
to EBITDA at or below 2 (one of the company’s long-term financial goals). At the end of 2021, the ratio of net debt to
EBITDA was -0.64 (-0.10), i.e. well below the long-term goal level.
Net debt / EBITDA
(EUR 1,000) 2021 2020
Interest-bearing liabilities
Non-current lease liabilities 21,976 26,996
Current lease liabilities 8,503 10,158
Other current interest-bearing liabilities 1,798 725
Total 32,277 37,879
Cash and cash equivalents 59,726 41,045
Net debt -27,449 -3,166
EBITDA¹ 43,123 31,292
Net debt / EBITDA -0.64 -0.10
22. EVENTS AFTER THE CLOSING DATE
Dividend for 2020
After the end of the financial year, the Board of Directors of Marimekko made use of the authorization given by the
AGM on 14 April 2021 and decided that a dividend of EUR 1.00 per share be paid for 2020 in one instalment. The
dividend was paid to shareholders who were registered on the dividend payout record date of 17 February 2022 in
the company’s Shareholder Register held by Euroclear Finland Ltd on behalf of the Board of Directors of Marimekko
Corporation. The dividend payout date was 24 February 2022.
Transfer of own shares
After the end of the financial year, the Board of Directors of Marimekko decided on a directed share issue without
consideration in order to transfer a total of 7,802 Marimekko shares held by the company as the latter instalment of the
long-term incentive system targeted at the Management Group. The decision was based on the authorization given
by the AGM on 14 April 2021. The shares were transferred on 17 February 2022. Following the transfer, Marimekko
will hold 5,558 of its own shares, corresponding to some 0.07 percent of the total number of the company shares.
Marimekko shares held by the company carry no voting rights and no entitlement to dividends.
A new long-term incentive system for the management
After the end of the financial year, the Board of Directors of Marimekko decided to continue the share-based long-term
incentives for the company’s management. The new incentive system for years 2022–2026 is a performance share
plan targeted to the Management Group of Marimekko and at the beginning, it encompasses nine people including
the President and CEO. The objective of the new plan is to continue aligning the interests of the management with the
interests of the shareholders and to encourage the management to work on a long-term basis with the aim to increase
the shareholder value. The Performance share plan 2022–2026 is composed of two earnings periods: 1 January
2022–30 June 2025 and 1 January 2023–30 June 2026. The potential reward from each earnings period is based on
total shareholder return (TSR) i.e. the total yield on Marimekko Corporation’s shares, including dividends, at the end of
the period. Details of the plan have been reported in the stock exchange release of 15 February 2022.
¹ The figures for the comparable year have been restated as the accounting principle has changed following the IFRS Interpretations Committee agenda decision. Additional information is presented in the accounting principles, on p. 33–34.
50
Parent company financial statements, FAS
PARENT COMPANY INCOME STATEMENT
(EUR 1,000) Note 1 Jan.–31 Dec. 2021 1 Jan.–31 Dec. 2020
NET SALES 1. 145,942 119,017
Other operating income 2. 143 288
Change in inventories of finished goods and
work in progress 3,744 -140
Materials and services 3. -60,904 -47,587
Personnel expenses 4. -22,093 -18,589
Depreciation and impairments 5. -1,289 -1,416
Other operating expenses 6. -34,890 -30,926
OPERATING PROFIT 30,655 20,647
Financial income and expenses 7. 401 -731
RESULT BEFORE APPROPRIATIONS AND TAXES 31,056 19,916
Appropriations 8. -36 147
Income taxes 9. -6,154 -4,129
NET RESULT FOR THE PERIOD 24,866 15,935
51
Parent company financial statements, FAS
PARENT COMPANY BALANCE SHEET
(EUR 1,000) Note 31 Dec. 2021 31 Dec. 2020
ASSETS
FIXED ASSETS
Intangible assets 10.1 3,794 3,133
Tangible assets 10.2 1,836 2,290
Investments 10.3
Participations in Group companies 1,906 1,906
Other shares and participations 209 16
Other receivables 324 2,439 - 1,922
FIXED ASSETS, TOTAL 8,069 7,345
CURRENT ASSETS
Inventories 11. 23,820 19,750
Current receivables 12. 21,970 17,019
Cash on hand and at banks 54,677 38,513
CURRENT ASSETS, TOTAL 100,467 75,282
ASSETS, TOTAL 108,535 82,627
(EUR 1,000) Note 31 Dec. 2021 31 Dec. 2020
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 -210 -315
Retained earnings 38,132 29,600
Net result for the period 24,866 15,935
SHAREHOLDERS’ EQUITY, TOTAL 72,055 54,488
ACCUMULATED APPROPRIATIONS 14. 910 874
LIABILITIES 15.
Current liabilities 35,570 27,265
LIABILITIES, TOTAL 35,570 27,265
SHAREHOLDERS’ EQUITY AND LIABILITIES, TOTAL 108,535 82,627
52
Parent company financial statements, FAS
PARENT COMPANY CASH FLOW STATEMENT
(EUR 1,000) 1 Jan.–31 Dec. 2021 1 Jan.–31 Dec. 2020
CASH FLOW FROM OPERATIONS
Net result for the period 24,866 15,935
Adjustments
Depreciation and impairments 1,289 1,416
Change in depreciation difference 36 -147
Financial income and expenses -401 731
Taxes 6,154 4,129
Cash flow before change in working capital 31,943 22,064
Change in working capital
Increase (-) / decrease (+) in current non-interest-bearing trade receivables -4,971 -1,483
Increase (-) / decrease (+) in inventories -4,054 -133
Increase (+) / decrease (-) in current non-interest-bearing liabilities 7,134 3,438
Cash flow from operations before financial items and taxes 30,053 23,886
Paid interest and payments on other financial expenses -437 -530
Interest received and payments on other financial income 133 191
Taxes paid -4,284 -5,763
CASH FLOW FROM OPERATIONS 25,465 17,784
(EUR 1,000) 1 Jan.–31 Dec. 2021 1 Jan.–31 Dec. 2020
CASH FLOW FROM INVESTMENTS
Investments in tangible and intangible assets -2,199 -2,846
Change in loan receivables - 151
CASH FLOW FROM INVESTMENTS -2,199 -2,696
CASH FLOW FROM FINANCING
Short-term loans drawn - 6,000
Short-term loans repaid - -6,000
Dividends paid -7,299 -
CASH FLOW FROM FINANCING -7,299 0
Change in cash and cash equivalents 15,968 15,089
Cash and cash equivalents at the beginning of the financial year 38,513 23,505
Effects of exchange rate fluctuations 196 -80
Cash and cash equivalents at the end of the financial year 54,677 38,513
53
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.
Measurement 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 accounting principles of the
consolidated financial statements.
Inventories
Inventories are presented at the acquisition cost or
at the lower probable net realization 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 accounting principles of 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.
54
Parent company financial statements, FAS
NOTES TO THE INCOME STATEMENT
1. NET SALES BY MARKET AREA
(EUR 1,000) 2021 2020
Finland 92,299 71,120
Other countries 53,643 47,897
Total 145,942 119,017
2. OTHER OPERATING INCOME
(EUR 1,000) 2021 2020
Rental income 54 54
Other income 89 234
Total 143 288
3. MATERIALS AND SERVICES
(EUR 1,000) 2021 2020
Materials and supplies
Purchases during the financial year 40,368 29,247
Increase (-) / decrease (+) in inventories -326 -257
Total 40,043 28,990
External services 20,861 18,597
Total 60,904 47,587
4. PERSONNEL EXPENSES
(EUR 1,000) 2021 2020
Salaries, wages and bonuses 18,488 15,809
Pension and pension insurance payments 2,651 2,318
Other indirect social expenditure 954 462
Total 22,093 18,589
Salaries and bonuses for management
Members of the Board of Directors and the President and CEO 1,272 717
Itemized in the note 19 to the consolidated financial statements.
Average number of employees
2021 2020
Salaried employees 306 323
Production personnel 22 22
Total 328 345
5. DEPRECIATION AND IMPAIRMENTS
(EUR 1,000) 2021 2020
Intangible assets
Intangible rights 31 40
Computer software 557 363
Other capitalized expenditure 193 453
Total 781 856
Tangible assets
Buildings and structures 5 7
Machinery and equipment 502 554
Total 508 560
Total 1, 289 1,416
55
Parent company financial statements, FAS
6. OTHER OPERATING EXPENSES
(EUR 1,000) 2021 2020
Leases 6,595 6,298
Marketing 12,526 10,429
Other expenses 15,768 14,198
Total 34,890 30,926
Auditor’s fee
(EUR 1,000) 2021 2020
KPMG
Audit 66 60
Other services 15 12
Total 81 72
7. FINANCIAL INCOME AND EXPENSES
(EUR 1,000) 2021 2020
Other interest and financial income
From Group companies 116 113
From others 372 13
Change in fair value of shares 191 -
Total 679 126
Interest and other financial expenses
To other than Group companies 278 857
Total 278 857
Financial income and expenses, total 401 -731
Financial income and expenses include exchange rate differences (net)
Realized -154 -190
Unrealized 521 -387
Total 367 -577
8. APPROPRIATIONS
(EUR 1,000) 2021 2020
Change in depreciation difference -36 147
9. INCOME TAXES
(EUR 1,000) 2021 2020
Income taxes on operations 6,154 4,129
56
Parent company financial statements, FAS
NOTES TO THE BALANCE SHEET
10. FIXED ASSETS
10.1 Intangible assets
2021
Other Advance payments
Intangible Computer 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
2020
Other Advance payments
Intangible Computer capitalized and acquisitions
(EUR 1,000) rights software expenditure in progress Total
Acquisition cost, 1 Jan. 2020 1,733 7,055 6,656 1,094 16,539
Increases 48 330 629 896 1,903
Transfers between categories 541 1,236 -1,830 -53
Acquisition cost, 31 Dec. 2020 1,781 7,927 8,520 160 18,389
Accumulated depreciation, 1 Jan. 2020 1,672 6,560 6,167 14,399
Depreciation during the financial year 40 363 453 856
Accumulated depreciation, 31 Dec. 2020 1,712 6,922 6,620 15,255
Book value, 31 Dec. 2020 69 1,005 1,899 160 3,133
57
Parent company financial statements, FAS
10.2 Tangible assets
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
2020
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. 2020 38 417 15,522 28 9 16,015
Increases 79 161 240
Transfers between categories 223 -170 53
Acquisition cost, 31 Dec. 2020 38 417 15,825 28 16,308
Accumulated depreciation, 1 Jan. 2020 331 13,127 13,458
Depreciation during the financial year 7 554 560
Accumulated depreciation, 31 Dec. 2020 338 13,681 14,019
Book value, 31 Dec. 2020 38 80 2,143 28 2,290
58
Parent company financial statements, FAS
10.3 Investments
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
Accumulated depreciation, 31 Dec. 2021 290 290
Book value, 31 Dec. 2021 1,906 209 324 2,439
2020
Shares in Group Other shares and
(EUR 1,000) companies participations Total
Acquisition cost, 1 Jan. 2020 2,196 16 2,212
Acquisition cost, 31 Dec. 2020 2,196 16 2,212
Accumulated depreciation, 31 Dec. 2020 290 290
Book value, 31 Dec. 2020 1,906 16 1,922
11. INVENTORIES
(EUR 1,000) 2021 2020
Raw materials and consumables 4,906 4,581
Finished products/goods 18,914 15,170
Total 23,820 19,750
12. CURRENT RECEIVABLES
(EUR 1,000) 2021 2020
Trade receivables 10,293 6,463
Receivables from Group companies
Trade receivables 5,380 4,654
Loan receivables 5,386 5,061
Total 10,766 9,715
Other receivables 96 81
Prepaid expenses and accrued income 815 759
Total 21,970 17,019
Prepaid expenses and accrued income
Royalty receivables 302 237
Other prepaid expenses and accrued income 513 522
Total 815 759
59
Parent company financial statements, FAS
13. SHAREHOLDERS’ EQUITY
(EUR 1,000) 2021 2020
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. -315 -315
Shares transferred as part of rewards 104 -
Treasury shares, 31 Dec. -210 -315
Retained earnings, 1 Jan. 45,535 29,600
Dividends paid -7,299 -
Shares transferred as part of rewards -104 -
Retained earnings, 31 Dec. 38,132 29,600
Net result for the period 24,866 15,935
Shareholders’ equity, total 72,055 54,488
Calculation of distributable funds
(EUR 1,000) 2021 2020
Retained earnings 38,132 29,600
Net result for the period 24,866 15,935
Treasury shares -210 -315
Reserve for invested non-restricted equity 1,228 1,228
Dividends paid for previous year¹ -8,124 -7,299
Business cost support by the Finnish State Treasury - -500
Total 55,891 38,649
14. ACCUMULATED APPROPRIATIONS
(EUR 1,000) 2021 2020
Accumulated depreciation difference
Intangible rights 18 16
Other capitalized expenditure 429 318
Machinery and equipment 328 403
Buildings and structures 135 138
Total 910 874
15. LIABILITIES
Current liabilities
(EUR 1,000) 2021 2020
Advances received 1,895 1,587
Trade payables 11,790 7,535
Debts to Group companies
Trade payables 1,328 683
Accrued liabilities and deferred income 7,451 7,241
Other current liabilities 3,763 3,444
Accrued liabilities and deferred income 9,343 6,775
Total 35,570 27,265
Accrued liabilities and deferred income
Wages and salaries with social security contributions 4,613 3,781
Accrued income tax liabilities 2,429 559
Other accrued liabilities and deferred income 2,302 2,435
Total 9,343 6,775
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.
60
Parent company financial statements, FAS
16. GUARANTEES, CONTINGENT LIABILITIES AND OTHER COMMITMENTS
(EUR 1,000) 2021 2020
Leasing liabilities
Payments due in the following financial year 462 503
Payments due later 485 470
Total 947 973
Liabilities related to lease agreements
Payments due in the following financial year 5,985 6,260
Payments due later 22,831 27,042
Total 28,816 33,302
Guarantees on behalt of subsidiaries 2,316 3,059
Indirect liability for rent and other guarantees 4,068 3,048
61
Signatures to the financial statements and
the report of the Board of Directors
Helsinki, 15 February 2022
Mika Ihamuotila Elina Björklund Carol Chen
Chair of the Board Vice Chair of the Board Member of the Board
Mikko-Heikki Inkeroinen Catharina Stackelberg-Hammarén Tomoki Takebayashi
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 2022
KPMG Oy Ab
Virpi Halonen
Authorized Public Accountant, KHT
62
Auditor’s Report
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 2021. 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.
63
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 152.2 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 directly attributable fixed and variable overhead costs.
Inventory value EUR 26.0 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 may 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 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 2022.
• 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.
Auditor’s Report
64
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 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 Financial Statements
Our objectives are to obtain reasonable assurance on whether the financial statements as a whole are free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with good auditing practice will always detect a material misstatement when it exists. Misstatements can arise from
fraud or error and are considered material if, individually or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain
professional scepticism 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
65
OTHER REPORTING REQUIREMENTS
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on 12 April 2018.
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, 15 February 2022
KPMG Oy Ab
Virpi Halonen
Authorized Public Accountant, KHT
Auditor’s Report
66
Independent Auditor’s Reasonable Assurance Report on
Marimekko Corporation’s ESEF Financial Statements
We have undertaken a reasonable assurance engagement on the iXBRL marking up of the consolidated
financial statements for the year ended 31 December 2021 included in the Marimekko Corporation's digital files
74370053IOY42B9Y
J350-2021-12-31-en.zip prepared 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 consolidated financial statements 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 Control
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 obligations in accordance with these
requirements.
The auditor applies International Standard on Quality Control 1 and accordingly maintains a comprehensive
system of quality control including documented policies and procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory 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 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;
• 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 consolidated financial statements included in the ESEF financial statements of Marimekko
Corporation identified as 74370053IOY42B9YJ350-2021-12-31-en.zip for the year ended 31 December 2021 are
marked up, in all material respects, in compliance with the ESEF Regulatory Technical Standard.
Our audit opinion relating to the consolidated financial statements of Marimekko Corporation for the year ended
31 December 2021 is set out in our Auditor’s Report dated 15 February 2022. In this report, we do not express an audit
opinion, review conclusion or any other assurance conclusion on the consolidated financial statements.
Helsinki, 18 March 2022
KPMG Oy Ab
Virpi Halonen
Authorized Public Accountant, KHT
TO THE BOARD OF DIRECTORS OF MARIMEKKO CORPORATION
67
Statement of
non-financial
information
2021
68
MARIMEKKO’S BUSINESS MODEL AND
APPROACH TO SUSTAINABILITY
Marimekko is a Finnish lifestyle design company
renowned for its original prints and colors. The company
designs, produces, sources, markets and sells clothing,
bags and accessories, as well as home décor items
ranging from textiles to tableware. Marimekko’s
business model is based on a variety of distribution
channels including company-owned Marimekko stores,
outlet stores and e-commerce (retail), partner-owned
Marimekko stores, shop-in-shops and e-commerce,
wholesale customers such as department stores and
multi-brand stores as well as e-tailers (wholesale), and
licensing. The company’s key markets are Northern
Europe, the Asia-Pacific region and North America.
The design, product development, merchandising,
marketing, omnichannel sales, and supply chain related
activities are led globally from the headquarters in
Helsinki. A large part of Marimekko’s printed fabrics,
used across its product lines, is produced in Helsinki
in the company’s own textile printing factory, which
also acts as an innovation hub for Marimekko’s key
differentiator, its art of print making, and enables active
participation in research and development projects
focused on improving the sustainability of products and
operations. Furthermore, good and competent suppliers
play a major role in Marimekko’s competitiveness, and
the company strives to build long-term partnerships
with its suppliers.
Marimekko’s core values and Code of Conduct
guide the daily work. The requirements for suppliers are
included in the Marimekko Supplier Code of Conduct,
which is based on the International Labor Organization
(ILO) standards and the amfori BSCI Code of Conduct.
Marimekko’s sustainability work is guided by the
company’s sustainability strategy and related roadmap.
In addition, Marimekko has more specific policies
and instructions guiding its operations in the area of
environmental matters, social matters, human rights
as well as anti-corruption and anti-bribery. The most
important guidelines are described in the respective
section of this statement.
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.
Marimekko believes that determined efforts to improve
sustainability strongly support the company’s long-term
success. Sustainability is an increasingly important
consideration in the choices of consumers and an issue
in attracting and retaining talent as well as investors.
There are currently also several initiatives to increase
regulation regarding different sustainability aspects.
Possibilities to further improve the sustainability of
operations have been identified both in Marimekko’s
own operations (for example in design, through use of
renewable energy and through material, energy and
water efficiency in the in-house printing factory) and
in the company’s value chain (for example through
materials used and transportation mode choices and
route optimization). In addition, Marimekko engages
with various industry networks (Better Cotton Initiative,
amfori BSCI, Responsible Sourcing Network, local
industry associations, among others), as collaboration
between different actors is believed to be the most
effective way to promote sustainable practices in the
industry.
The focus areas for Marimekko’s sustainability
strategy and work have been determined based on the
Marimekko brand and the company’s vision and values
paired with analyses looking at megatrends affecting
the fashion and textile industry, consumer trends and
insight, studies on sustainability factors in the whole
value chain and benchmarking of industry practices,
stakeholder dialogue and input from employees. The
material sustainability aspects related to Marimekko’s
operations are included in the sustainability strategy’s
three principles and their goals. Marimekko’s
sustainability actions cover the entire product life cycle
from materials to end use.
Marimekko’s sustainability strategy for 2021–2025
is founded on three guiding principles with defined
goals and initiatives. The three principles deployed
throughout Marimekko’s value chain are:
• timeless design brings joy for generations to come
• the products of tomorrow leave no trace
• positive change through fairness and equality.
The new sustainability strategy is presented in
more detail on page 11 of the Financial Statements
2021 and on the company website at
company.marimekko.com/en/sustainability/.
Governance model and business principles
Marimekko has defined a governance model for
developing and managing non-financial matters:
• The Board of Directors approves the sustainability
strategy, including related key targets, and
monitors annual sustainability reporting. The Board
of Directors also sets the annual targets for the
President & CEO and members of the Management
Board. For all members of the top management, these
include also sustainability-related metrics. For more
on management remuneration, see p. 90–95 of the
Financial Statements 2021.
• The Management Group sets targets and follows the
progress on at least a bi-annual basis.
• Risks related to non-financial matters including
environmental, social, human rights and anti-bribery
and anti-corruption are addressed as part of the
consolidated risk management and presented as
part of the Report of the Board of Directors, on page
19–20 of the Financial Statements 2021.
• Each business unit and function is responsible for the
actions relating to their own areas in order to reach
the shared targets.
• The Business Development & Transformation team is
responsible for ensuring the execution of Marimekko’s
Sustainability Transformation Program both for
company’s own operations and its value chain.
• Marimekko Innovation Works – a cross-functional in-
house innovation team – is responsible for developing
and piloting more sustainable materials, dyes and
services, as well as new sustainability-related
business models.
Statement of non-financial information 2021
69
Marimekko is committed to work according to the
same principles around the world, complying with
local laws and regulations, the Marimekko values and
following responsible and ethical business practices.
The key principles for ethical business practices are
included in the Marimekko Code of Conduct and the
Supplier Code of Conduct. The Marimekko Code
of Conduct details e.g. company’s commitment to
sustainable development and responsibility in our
operations, including environmental and social aspects,
respect for human rights as well as our anti-corruption
and anti-bribery stance. The Marimekko Code of
Conduct was revised in spring 2021 to better reflect
changes in the operating environment, new regulations
and requirements of the UN Global Compact initiative,
which Marimekko joined in May 2021. More specific
instructions are given in e.g. HR guidelines and the
policies on fair competition, insiders and data privacy.
Anti-corruption and anti-bribery matters are also
addressed in contracts with partners such as suppliers
and distributors. Audits at partner suppliers also cover
ethical business practices, in accordance with the
amfori BSCI Code of Conduct. Marimekko has not
been involved in any legal cases or rulings related to
unethical business practices, corruption or bribery in
the reporting period.
Marimekko has pre-determined processes in place
to address violations of laws or the company’s Code
of Conduct. A whistleblowing channel for reporting
misconduct is maintained by an independent third-party
service provider. The channel was renewed at the end
of 2021 and is now available to all stakeholders of the
company.
To ensure that Marimekko employees are familiar
with and follow the Code of Conduct, employees are
required to complete an e-training. In addition, trainings
on competition law, insider rules and data privacy were
organized in 2021.
¹ In 2020 and 2021, the training was targeted at wholesale staff; not fully comparable with the 2019 figure.
Statement of non-financial information 2021
SHARE OF EMPLOYEES WHO HAVE PARTICIPATED IN TRAINING IN RESPONSIBLE AND
ETHICAL BUSINESS PRACTICES
0
20
40
60
80
100
2019 2020 2021
76
91
96
93¹
73
70
78
79
82
100 98
83¹
Employees who have participated in e-training in the Code of Conduct
Managers and employees having regular access to unpublished financial information who have
participated in training in insider matters
Employees working in wholesale and other selected groups who have participated in training in
competition law
EU-based employees and employees based outside of EU having access to EU personal data who
have participated in e-training in the GDPR
70
Marimekko’s design philosophy is based on timeless,
functional and durable products that give people long-
lasting joy. Marimekko wants to create timeless design
and future classics and, in the coming years, to offer
more comprehensive services to lengthen the product
lifetime as well as support our community to resell
and recycle used Marimekko products. A long-lasting
product is a key component in improving sustainability
in the fashion industry, as, for example, wearing items
twice as long can reduce the industry’s emissions by up
to 44 percent.²
In order to create products that last time,
sustainability considerations are part of the everyday
work of all Marimekko teams, beginning from the design
and product development, relating for example to the
material choices and designing for combinability within
and across seasons. In 2021, Marimekko developed
new archetypes and block fits for its ready-to-wear
collection to improve consistency in fit and size. These
improvements will help customers to find the right fit
and size, especially when buying online and season
after season. The new archetypes and blocks will be
introduced in the collections from 2022 onwards.
Timeless design
brings joy for
generations to come
² Ellen MacArthur Foundation, A new textiles economy:
Redesigning fashion’s future
(2017, http://www.ellenmacarthurfoundation.org/publications).
71
OUR GOALS FOR TIMELESS DESIGN BY THE END OF 2025
• We make designs that stand the test of time.
• We offer durable, high quality and functional products.
• We actively work to prolong product lifetime.
• We contribute to the circular economy through new processes and services.
Key actions in 2021
• New archetypes and block fits for ready-to-wear collection to
improve consistency in fit and size
• An in-house innovation team, Innovation Works, to accelerate
development work with new, circular material innovations and
sustainable business models
• Updated comprehensive care guide for Marimekko products as
part of the new eCom experience
• Marimekko Pre-loved second-hand resale pilot in Marimekko
online store
KEY FIGURES AND ACTIONS
Materials and fabric qualities that are easily
recyclable, such as mono-materials, will in the future
enable fully circular value chains. To accelerate
development work with new, circular material
innovations, Marimekko established a new in-house
innovation team, Innovation Works.
Rigorous quality management processes both
for own printing factory and partner suppliers ensure
the quality of materials used as well as durability and
high-quality of products. In 2021, Marimekko continued
to increase the share of more sustainable materials,
implementing the same high quality and durability
criteria used for conventional materials also to all new
material qualities.
The work that Marimekko does to extend the life
cycle of its products is multifold. In addition to timeless
aesthetics, Marimekko aims to prolong the product
Statement of non-financial information 2021
lifetime e.g., by designing for adjustability and by
further enhancing the careability and repairability of
its products. By providing a comprehensive care guide,
Marimekko encourages its customers to take properly
care of their products to increase their lifespan. In
the coming years, Marimekko also aims to expand its
offering in lifecycle services, including care and repair.
In 2021, Marimekko updated and extended its care
guide as part of the new eCom experience the company
rolled out. In order to support its customers in selling
their pre-loved Marimekko items and provide practical
solutions to extending the lifespan of Marimekko
products, the company piloted second-hand resale in
its online store. An array of vintage pieces was also sold
at Marimekko Kreative, the experiential pop-up space
launched in Copenhagen, as well as in Club Vintage in
New York.
Share of products subject to claims,
target not more than 0.5% of
products sold
%
0.0
0.2
0.4
0.6
0.8
1.0
2019
0.3
0.4
0.3
2020 2021
Target by the end of 2025
72
Marimekko’s ambition is to leave no burden for the
coming generations. The company believes that, in
the future, timeless and sustainable products will be
made in balance with the environment, in line with
the principles of the circular economy. Marimekko
is committed to continuously drive innovation in
technologies, materials and business models through
collaborations to push its industry forward and reach its
ambitious vision of leaving no trace. The work is guided
by Marimekko’s sustainability strategy and roadmap.
Marimekko has launched several initiatives to
significantly reduce emissions throughout its value
chain. Significant emissions occur both in the upstream
and downstream of Marimekko’s value chain, for
example during the production of materials, during
logistics as well as when the products are used. In order
to measure progress against its sustainability targets,
Marimekko extended its carbon footprint calculation to
indirect emissions from value chain (Scope 3), including
textile manufacturing and logistics.
As a result of continuous emission reduction work
and emission offsetting, Marimekko’s own operations,
including the printing factory, offices and our own retail
stores globally, have been carbon neutral since 2020.
In 2021, Marimekko continued its development work
with an aim of reducing greenhouse gas emissions
from own operations (Scope 1 and 2) by 40 percent
by the end of 2025. Among other things, solar panels
were installed on the rooftop of Marimekko house
in Helsinki and Marimekko obtained a WWF Green
Office certification in June 2021. The Green Office
program focuses especially on emissions reductions
and increasing employee awareness on environmental
matters. Moreover, Marimekko completed contract
negotiations to move to renewable district heating from
the beginning of 2022. In 2021, Scope 1 and 2 emissions
were reduced by 21 percent compared to 2019, the base
year of the sustainability targets.
Material choices play an important role in minimizing
a product’s environmental impact. As part of its
new sustainability strategy and in order to reduce
greenhouse gas (GHG) emissions of textile materials
used, Marimekko developed in 2020 a new material
strategy to shift its material portfolio towards more
sustainable alternatives, such as organic, recycled, and
bio-based materials as well as new material innovations,
by the end of 2025. The new material strategy rollout
started in the beginning of 2021 and will show in
collections from 2022 onwards. In 2021, majority of
the cotton sourced by Marimekko, 88 percent (82),
continued to be Better Cotton
3
. Marimekko increased
the share of recycled materials to 4 percent (3) and the
share of organic materials to 2 percent (0) of all sourced
textiles. Marimekko also continued its collaboration
The products of tomorrow
leave no trace
3
Marimekko is a member of the Better Cotton Initiative (BCI).
The goal of the BCI is to help cotton communities thrive while
protecting and restoring the environment.
73
4
Greenhouse gas emissions per kilogram of sourced textiles is calculated as the cradle-to-gate greenhouse gas emissions of purchased
textiles (based on Higg MSI 3.3 data at Higg.org and supplier specific data) divided by the total amount of purchased textiles.
5
Water scarcity score takes into account the blue water consumption in the cradle-to-gate production of textiles and the water scarcity
of the region where water is consumed and is based on Higg MSI 3.3 data at Higg.org.
6
Greenhouse gas emissions from logistics per kg of transported product is calculated as total well-to-wheel greenhouse gas emissions
of logistics divided by the total amount of purchased goods.
with the Finnish fiber technology company Spinnova, in
order to develop and commercialize more sustainable
materials. In 2021, the greenhouse gas emissions from
textile manufacturing per kilogram of sourced textiles
4
decreased by 6 percent compared to 2019, driven by
a reduction in the use of emission intensive materials
such as viscose, polyamide and polyester. Material
choices have a direct impact on the use of water as
well. Increasing the share of organic and recycled
cotton, and by shifting to linen, hemp and new material
technologies will help Marimekko to reduce the use
of water in the upstream of Marimekko’s value chain.
In 2021, the water scarcity score
5
of sourced textiles
increased by 8 percent compared to 2019 due to the
increased share of cotton in purchased textiles, while
the transition to less water intensive organic and
recycled cotton has only started.
For partner suppliers’ environmental practices, such
as management of emissions, effluents, and waste as
well as handling of chemicals, the requirements are
set in Marimekko’s Supplier Code of Conduct. The
company’s sourcing teams regularly gather and assess
information about environmental impacts in the supply
chain in order to plan future actions.
The main means to reduce emissions from logistics
are optimizing transportation routes and choosing
lower-emission modes of transport. In 2021, Marimekko
continued to increase direct deliveries from suppliers
to wholesale customers, especially in Asia, and
introduced a short-sea route from Portugal to Finland
partly replacing truck deliveries. In 2021, greenhouse
gas emissions of logistics per kg of transported
product
6
decreased by 17 percent compared to 2018,
which is the base year for the target. Marimekko offsets
CO
2
emissions from all outbound store and e-commerce
deliveries in Finland as well as from e-commerce
deliveries elsewhere in Europe. The emission offset
from these deliveries totaled 578 (461) tonnes in 2021.
Significant share of greenhouse gases emitted
during the lifetime of a long-lasting garment relate to
its care, including machine washing, drying and ironing.
Marimekko recommends greener care for its products
and provides several practical ways to lower emissions
from product care in its care guide.
74
Statement of non-financial information 2021
In addition to reducing GHG emissions and water
usage, Marimekko aims to continuously decrease its
chemical footprint, as it is estimated that a significant
share of global chemical output originates from the
textile industry. Marimekko’s printing factory has its own
environmental and chemicals management processes
in place. 73
7
percent (83) of the fabrics printed at the
factory are certified according to the STANDARD 100
by OEKO-TEX®. The certificate guarantees that the
materials contain no substances harmful to people or
the environment, as detailed in the standard criteria.
To further reduce the use of chemicals, Marimekko
has increased the share of unbleached materials used
in its printing factory to 22 percent (9). For its partner
suppliers, Marimekko has implemented chemical
management principles, detailed in contracts and the
company’s Restricted Substances List (RSL) that was
updated in 2021. Compliance to the RSL is monitored by
random testing that is based on risk assessment.
Marimekko’s own printing factory offers unique
possibilities for testing new, more sustainable dyestuffs
in the printing process. In 2021, Marimekko introduced
the first garments, bags and home items printed
with a blue dye obtained from the woad plant. The
collaboration to develop the industrial use of natural
dyes continued with new colors during the year.
Marimekko aims to continue reducing fabric, plastic
and other waste and move towards recycled and
reusable packaging. Cutting waste is reduced through
decisions made in the design phase, e.g. by considering
size and positioning of prints and designing products
of different sizes from the same fabric. To increase
the use of leftover fabrics dyes and other materials,
Marimekko launched in 2021 a series of bags made from
leftover fabrics, products printed with leftover dyes
and upcycled home products such as scented candles.
Also, Marimekko piloted a new concept – Marimekko
Upcycled - that reworked the legendary Jokapoika shirt
from earlier collections. Finally, Marimekko developed
a new, sustainable home concept that uses more
sustainable materials, including leftover fabrics and
products with slight quality defects. The first products
were launched in 2021 and the full concept will be in
stores in 2022.
All packaging materials are already recyclable,
and in 2021, 100 percent (100) of waste collected in
the printing factory and headquarters was recycled as
material or utilized in energy production. In the future,
the company intends, for example, to reduce the use
of plastic and increase the use of recycled materials in
packaging.
OUR GOALS FOR LEAVING NO TRACE BY THE END OF 2025
• We reduce our carbon footprint significantly throughout the value chain.
• We reduce the amount of chemicals used in our supply chain.
• We reduce the clean water consumption in our supply chain.
• We minimize the waste and maximize recycling and upcycling of materials in our operations.
7
The decrease in the share of certified materials is attributable to
the increased use of linen; linen fabrics are currently not included
in Marimekko’s OEKO-TEX® certification.
75
KEY FIGURES AND ACTIONS
Greenhouse gas emissions
(scope 1 and 2), target to reduce by 40%
from the 2019 baseline of 617 tCO
2
e
tCO
2
e
Target by the end of 2025
Greenhouse gas emissions per kg of
sourced textiles
9
Target to reduce by 20% from the
2019 baseline of 13.9 kgCO
2
e/kg
kgCO
2
e/kg
Target by the end of 2025
0
5
10
15
20
2019
13.9
13.3
13 .1
2020 2021
Textile material composition
shares
%
2019 2020 2021
0
20
40
60
80
100
Conventional
Includes convential cotton, linen, hemp,
viscose, cupro, acetate, modal, silk,
leather, wool, down, polyester, polyamid,
elastane and polyurethane
Conventional enhanced
Includes BCI cotton, EcoVero
TM
viscose,
lyocell and certified down
Organic
Recycled
Greenhouse gas emissions of logistics
per kg of transported product
Target to reduce by 50% from the 2018
baseline of 2.2 kgCO
2
e/kg
kgCO
2
e/kg
Target by the end of 2025
0
0.5
1.0
1.5
2.0
2.5
3.0
2019
2.7
2020 2021
1.8 1.8
Statement of non-financial information 2021
Environmental footprint of textile
materials
8
Target to reduce by 30% from the
2019 baseline of 99.2
Target by the end of 2025
0
20
40
60
80
100
120
2019
99.2
100.1 100.5
2020 2021
8
The value is based on Higg MSI 3.3 data at Higg.org. Index includes chemistry, depletion of fossil resources, the eutrophication, global warming & water scarcity.
The Higg MSI database will no longer publish such an aggregate indicator and Marimekko will develop its reporting accordingly. The value increased slightly
compared to 2019 as emission intensive materials were replaced with cotton, while the transition to less water intensive organic and recycled cotton has only started.
9
Based on Higg MSI 3.3 data at Higg.org
10
The reported Scope 1 and 2 emissions for 2019 and 2020 are higher than earlier reported as the Scope 1, 2 and 3 emissions are now for the first time calculated in
accordance with the Greenhouse Gas Protocol standards.
11
In 2021, the consumption of district heating increased as a result of cold winter weather.
0
200
400
600
800
2019
617
10
441
10
488
11
2020 2021
76
0
30
60
90
120
2019
99.1
82.3
78.7
2020 2021
Total amount of waste
Helsinki printing factory and
headquarters
t
0
5
10
15
20
25
30
35
2019
29.0 29.0
23.6
2020 2021
Water consumption per meter of
fabric printed
Helsinki printing factory and
headquarters
l/m
Share of renewable energy of the
energy produced and purchased
Helsinki printing factory and
headquarters
%
0
20
40
60
80
2019
45
57
51
2020 2021
Statement of non-financial information 2021
Water scarcity score
12
target to reduce by 50% from the
2019 baseline of 41.5.
0
10
20
30
40
50
2019
41.5
43.8
44.8
2020 2021
Target by the end of 2025
Key actions in 2021
• Marimekko extended its carbon footprint calculation to indirect emissions from value
chain (Scope 3), including textile manufacturing and logistics
• Solar panels at Marimekko house in Helsinki, preparations to move to renewable district
heating, Marimekko House WWF Green Office certified
• New material strategy rollout started to shift towards more sustainable materials
• Emissions from logistics reduced by increasing direct deliveries from suppliers to
customers and introducing a short-sea route from Portugal to Finland
12
Water scarcity score takes into account the
blue water consumption in the cradle-to-gate
production of textiles and the water scarcity of
the region where water is consumed. In 2021, the
score increased as emission intensive materials
were replaced by cotton while the transition to less
water intensive organic and recycled cotton has
only started. The score is based on Higg MSI 3.3
data at Higg.org.
• Updated Restricted Substances List (RSL), increasing the share of unbleached
materials in Marimekko’s printing factory, introducing the first products printed
with natural dyes
• Upcycled products and product series
• A new, sustainable home concept using more sustainable materials developed
77
Marimekko promotes equality and fairness in its
entire value chain and fosters diversity, equality and
inclusion both through internal and external initiatives.
Marimekko continuously improves its transparency and
is committed to drive positive change through supplier
engagement and industry collaborations. Marimekko’s
commitment to respecting human rights, freedom
of association and right to collective bargaining are
included in the company’s Code of Conduct, which
also includes Marimekko zero-tolerance for any
discrimination and other aspects of managing social
matters.
Marimekko’s wide range of products are
manufactured by a global network of around 160
partner suppliers. The company’s objective is to always
find the best manufacturing place for each product
category. Marimekko has strong values, of which one
– fairness to everyone and everything – crystalizes the
company’s sustainability thinking and extends to its
personnel, customers, and partners around the world.
Marimekko is committed to promoting human rights,
living wages, worker empowerment and safe working
conditions in the company’s supply chain in all its
operations. The company’s approach to human rights
is based on the United Nations Guiding Principles on
Business and Human Rights (UNGPs).
Marimekko’s sourcing is guided by principles of
responsible sourcing and its Supplier Code of Conduct.
The Supplier Code of Conduct is part of contracts
between Marimekko and its partner suppliers, and by
signing the document suppliers commit to endorsing
both the principles of the Code and the ILO standards.
The Supplier Code of Conduct details, among other
things, the respect for human rights, including strict
principles against child labor and forced labor, as well as
workers’ freedom of association, the right to collective
bargaining, and the right to equal treatment. The
suppliers also commit to complying with Marimekko’s
product policies related to responsible material
sourcing. Marimekko has excluded sourcing from
certain very high-risk countries, particularly Uzbekistan,
Turkmenistan and the Xinjiang Uyghur Autonomous
Region in China for cotton.
Marimekko’s due diligence approach for human
rights is based on careful supplier assessment and
selection as well as contractual obligations imposed
on partner suppliers. The company is a member of
the European amfori BSCI initiative, which provides
tools for monitoring and improving working conditions
in global supply chains. Monitoring of suppliers is
conducted through independent third-party audits
performed mainly in factories located outside Europe,
Positive change through
fairness and equality
78
in countries considered higher risk, factory visits by
Marimekko employees as well as questionnaires to
suppliers for example regarding the origin of materials
used. Corrective actions identified through monitoring
are followed-up regularly with suppliers. Marimekko’s
relevant employees receive training on responsible
sourcing practices and human rights topics. The
due diligence process is assessed and developed
continuously. In 2021, Marimekko joined the UN Global
Compact and committed to promoting its ten principles
in its own operations as well as in the value chain. The
company also extended its social audits from tier 1 to
tier 2 suppliers through a pilot in Turkey where a fabric
supplier was audited against the amfori BSCI Code of
Conduct.
During 2021, 10 (20) amfori BSCI audits were
conducted at Marimekko’s partner suppliers’ facilities.
None of the audits carried out during the year identified
any zero-tolerance findings, such as indications of
child labor or forced labor, or imminent and significant
risks to workers’ health. Most of the findings in the
audits concerned occupational health and safety
(2021: 38 percent; 2020: 35), management systems
(18 percent; 18), worker involvement and protection
(11 percent; 14) and protection of the environment
(11 percent; 11). Corrective action plans were put in place
where necessary. Despite the coronavirus pandemic,
third-party audits in the factories were mostly carried
out according to the normal schedule. However, due to
travel restrictions, Marimekko employees’ visits to the
factories were not possible. The corrective actions were
monitored in dialogue with the suppliers.
Supply chains in the textile industry are complex and
involve many players – thus, enhancing transparency
in the supply chain from raw materials to the stores
demands patient work. In 2021, 54 percent of
Marimekko’s products were made in EU countries
and the rest mostly in other European countries and
Asia. Marimekko publishes list of its partner suppliers
on the company website. The content of the list is
aligned with the requirements of The Apparel and
Footwear Supply Chain Transparency Pledge. As part
of its new material strategy, Marimekko has increased
sourcing of more traceable materials, including organic
cotton and responsibly sourced wool. Transparency is
enhanced also by providing customers continuously
with more sustainability information on products. In
2021, Marimekko continued its Q&A sessions on e.g.
sustainability in social media and introduced new
tools, such as sustainability hangtags for products that
contain more sustainable materials or dyes as well as
a more comprehensive sustainability section on the
revamped online store.
Marimekko’s success rests on strong staff
commitment and the ability to build on and develop
every employee’s skills and creativity. The company
believes in fairness, courage and cooperation, and
fosters an open, low-hierarchical corporate culture that
is based on creativity and entrepreneurship. Company
values, the Marimekko Spirit, and Code of Conduct
provide a framework for way-of-working at Marimekko.
In addition, Marimekko has specific guidelines and
processes in place for, e.g., occupational health &
safety, well-being at work, onboarding as well as
employee engagement, performance and development.
In 2021, Marimekko launched DEI Foundational
Principles – the company’s framework for diversity,
equity and inclusion (DEI) matters. They will also form
the structure for future DEI activities and related key
figures.
At Marimekko, personnel well-being is enhanced
by promoting employees’ health and working and
functional capacity, as well as by ensuring an
empowering working atmosphere. Marimekko uses
an early support model, aimed at improving coping at
work, working ability and workplace well-being. The
objective is to increase dialogue between the manager
and employees in particular in matters related to
the work and working ability, to improve the working
conditions, and prevent prolonged absenteeism and
disability retirements. As preemptive measures of
occupational safety, hazards and risks involved in the
work are recognized and evaluated. In Finland, the
company uses a joint notification system for reporting
safety observations. The reported safety observations
and occupational accidents are monitored regularly, and
corrective actions needed are taken based on them.
In 2021, Marimekko focused on providing guidance
in coronavirus related health & safety measures.
Proactivity and tools regarding employee well-being
were enhanced, and Marimekko provided its employees
with activities such as virtual yoga and mindfulness to
support better work-life balance.
Marimekko supports and promotes its employees’
personal and professional development. The Group-
wide Maripeople performance management model,
Statement of non-financial information 2021
including objectives related both to work tasks and
to ways of working, is the backbone of individual
performance management and evaluation at
Marimekko. Through the annual Maripeople process,
employees get to know what is expected of them as
well as to discuss their work, skills, development areas
and future career aspirations with their line manager,
and to give and receive feedback. A well-implemented
Maripeople process enhances employee well-being
as well as engagement by linking the contribution of
each Marimekko employee to the company’s strategy.
Employee and leadership surveys provide feedback and
development ideas.
Marimekko’s culture and working environment are
founded on equality, valuing diversity, and inclusion.
No discrimination is tolerated at Marimekko. The
company wants to provide a safe, caring, communal and
respectful working environment for all of its employees.
Any issues relating to potentially inappropriate behavior
are investigated according to set processes. The
company promotes equality based on an equality
plan, provides training for its managers, and measures
success with the results of employee engagement
surveys, among other things. In 2021, Marimekko
managers were trained on inclusive leadership as
well as on DEI perspectives in implementing people
processes. The whole personnel were offered trainings
on these themes, and they were also included in the
new employee engagement survey pilot.
Equality and authenticity have been important
values for Marimekko since its early days, and the
company wants to actively promote diversity, equity
79
OUR GOALS FOR FAIRNESS AND EQUALITY BY THE END OF 2025
• We promote human rights, living wages, worker empowerment and safe working conditions in our supply chain.
• We aim at full product transparency.
• We provide an inspiring, responsible and caring workplace.
• Our culture is founded on equality, diversity and inclusion and we promote and foster these in our entire value chain.
Statement of non-financial information 2021
and inclusions in its communities. Supporting inclusion
through its choices in imagery and representation is a
constant and consistent part of Marimekko’s marketing
activities. In 2021, the activities around DEI matters
included e.g. continuing the official partnership with
Helsinki Pride and supporting LGBTIQ+ community
through omnichannel content as well as working with a
wide range of models, influencers and creatives to make
sure that the company fosters diversity e.g. in age, size,
gender and ethnic background.
KEY FIGURES AND ACTIONS
Origin of products, share of sales
13
%
EU countries
non-EU countries
0
20
40
60
80
100
2019 2020 2021
63
37
58
42
54
46
Share of purchases from audited
suppliers in non-EU countries
%
0
20
40
60
80
100
2019 2020 2021
98
100 100
13
More detailed information about the countries of origin is presented on company’s website.
14
The number of audits varies year by year, based on the frequency of audits (the audit cycle is 1 or 2 years depending on the result) and changes in the supplier base (for example, a new factory may have
another audit than amfori BSCI).
Number of audits and
audit results
14
Outstanding (A)
Good (B)
Acceptable (C)
Insufficient (D)
0
5
10
15
20
25
2019 2020 2021
13
20
10
80
Women
Men
Diversity at Marimekko
All employees Management Group Board of Directors
15
%
0
20
40
60
80
100
2019 2020 2021
92
8
92
8
91
9
2019 2020 2021
71
29
78
22
78
22
2019 2020 2021
57
43
50
50
50
50
Employee age distribution
<20 years: 1%
20–29 years: 26%
30–39 years: 28%
40–49 years: 24%
50–59 years: 15%
>
60 years: 6%
Diversity
The average of Marimeter Pulse
employee survey statement: “We
at Marimekko value diversity
(e.g. in skills, experiences and
backgrounds).”
7.6
scale of 0–10 (Strongly
disagree; Strongly agree)
16
Well-being Index
The average of these two
Marimeter Pulse employee
statements: “I feel I’m in control
of my own work.”; “I have a good
work-life balance.”
7.6
scale of 0–10 (Strongly
disagree; Strongly agree)
16
Statement of non-financial information 2021
15
More on Board composition and diversity, please see Corporate Governance Statement on p. 82–89.
16
The results of earlier longer surveys and these pulse surveys are not comparable.
81
Number of accidents
18
0
5
10
15
20
2019
11
7
8
2020 2021
Sick leave absences
18
%
0
1
2
3
4
5
2019
2.7
2.3
3.1
2020 2021
Number of safety observations
17
0
200
400
600
800
2019
228
622
344
2020 2021
Key actions in 2021
• Marimekko joined the UN Global Compact Initiative
• Social audits extended from tier 1 to tier 2 suppliers through a pilot
• Sourcing of more traceable materials increased, and new tools to provide sustainability
information to customers introduced
• Providing guidance in coronavirus related health & safety measures, enhancing tools and
proactivity regarding employee well-being
• DEI Foundational Principles launched, managers as well as all personnel trained on several
occasion on DEI perspectives
• Continuing official partnership with Helsinki Pride, supporting LGBTIQ+ community
through omnichannel content, working with a wide range of models, influencers and
creatives
About the statement
This statement has been prepared in accordance with the Finnish
Accounting Act, Chapter 3 a, and the EU Directive 2014/95/EU. The
statement covers the financial year from 1 January to 31 December
2021 and the whole Marimekko Group, except where otherwise
mentioned. In addition, Marimekko annually prepares a more detailed
Sustainability Review, published on the company website during the
second quarter of the year.
Marimekko follows up closely the development of the EU
Taxonomy. The economic activities currently covered by the Taxonomy
are not applicable to Marimekko’s operations. Therefore, the share
of taxonomy-eligible economic activities of Marimekko’s net sales,
operating expenditure and capital expenditure for 2021 is 0 percent
and the share of non-eligible economic activities 100 percent.
Marimekko continues to monitor the development of the Delegated
Acts for the environmental objectives of the Taxonomy.
Marimekko supports the ten principles of the United Nations
Global Compact. The company respects and promotes these
principles throughout its operations and reports on the progress in
this statement. Marimekko uploads this statement to the UN Global
Compact website as a public record of its commitment.
Helsinki, 15 February 2022
Marimekko Corporation
Board of Directors President and CEO
17
Covers Finland.
18
Covers employees in Finland.
Statement of non-financial information 2021
82
Corporate
governance
statement 2021
83
INTRODUCTION
Marimekko Corporation applies the Finnish Companies
Act, other regulations concerning public listed
companies, Marimekko Corporation’s Articles of
Association as well as the rules and regulations of
Nasdaq Helsinki Ltd. Marimekko Corporation also
complies with the recommendations of the Finnish
Corporate Governance Code, effective as of 1 January
2020, according to the comply-or-explain principle
without deviating from individual recommendations.
The corporate governance statement has been
drawn up in accordance with the Corporate Governance
Code effective as of 1 January 2020. The statement
has been issued as a separate report and the Audit and
Remuneration Committee of Marimekko Corporation has
reviewed it. The statement has been published on the
company’s website at company.marimekko.com. The
Finnish Corporate Governance Code is publicly available
on the website of the Securities Market Association at
www.cgfinland.fi/en/.
KPMG Oy Ab, Authorized Public Accountants, as
the company’s auditor has checked that the statement
has been issued and that the description of the main
features of the internal control and risk management
systems related to the financial reporting process is
consistent with the financial statements.
DESCRIPTIONS CONCERNING CORPORATE
GOVERNANCE
Marimekko Corporation’s administrative bodies and
officers with the greatest decision-making power are
the General Meeting of Shareholders, the Board of
Directors and the President and CEO. Marimekko
Corporation does not have a Supervisory Board. At
the Annual General Meeting, the shareholders approve
the financial statements, decide on the distribution of
profits, elect the members of the Board of Directors and
the auditor and determine their remuneration, as well as
decide on amendments to the Articles of Association if
necessary.
Marimekko Corporation’s General Meeting is
convened by the Board of Directors. According to the
Articles of Association, the Annual General Meeting
shall be held within six months of the close of the
financial year on a date decided by the Board of
Directors.
Due to the coronavirus pandemic, the AGM held
on 14 April 2021 was organized with exceptional
arrangements in place for safety reasons.
Marimekko shares are quoted on Nasdaq
Helsinki Ltd.
Composition and shareholding of the Board of
Directors
The members of the Board of Directors are elected
at the AGM. The proposal for the composition of the
Board is prepared by the major shareholders of the
company. The AGM has not established a shareholders’
nomination board.
When preparing the proposal for the composition
of the Board of Directors, the major shareholders take
account of the company’s business requirements and
development as well as the strategy of the company.
The main objective is to ensure that the composition of
the Board supports the company’s business operations,
strategy and customer-orientated approach in an
optimal manner. Diversity in the Board of Directors
helps to ensure that this objective is achieved. The
diversity of the Board is reviewed from different
perspectives. The most important factors for the
company are the directors’ mutually complementary
know-how, education and experience in different
fields and different geographic areas significant
for the company business as well as their personal
attributes. The diversity of the Board is promoted
in particular by the gender and age diversity of the
directors. Marimekko aims to have both genders equally
represented in the Board, and to have directors with
experience from different geographical areas. Diversity
in the Board is considered central to the customer-
and consumer-orientated approach of the company.
The progress in achieving the objectives is reviewed
regularly. A director elected to the Board shall have the
required competence for the position, and a sufficient
amount of time for attending to the duties of the
position. Also taken into account in the composition of
the Board are the long-term objectives of the company
as well as succession planning. There is no particular
order governing the appointment of Board members.
The AGM on 14 April 2021 elected the following
members to Marimekko Corporation’s Board of
Directors:
Mika Ihamuotila,
Chair of the Board
• Born 1964
• Ph.D. (Econ.)
• Principal occupation: Chair of the Board of Marimekko
Corporation, 2016– (full-time Chair of the Board and
CEO of Marimekko Corporation, 2015–2016)
• Ownership of shares and share-based rights in the
company at the end of the financial year 2021: 0.
Shares and share-based rights in the company owned
by a corporation over which the director exercises
control, PowerBank Ventures Ltd, at the end of the
financial year 2021: 1,017,700 shares. Shares or share-
based rights in Group companies at the end of the
financial year 2021: 0.
Elina Björklund,
Vice Chair of the Board
• Born 1970
• M.Sc. (Econ.), IDBM Pro
• Principal occupation: CEO of Reima Ltd, 2012–
• Ownership of shares and share-based rights in
the company at the end of the financial year 2021:
12,581 shares. Shares and share-based rights in the
company owned by a corporation over which the
director exercises control, and ownership of shares
and share-based rights in Group companies at the
end of the financial year 2021: 0.
Corporate governance statement 2021
84
Carol Chen
• Born 1967
• Master’s degree in Marketing
• Co-CEO of Semir, 2019–
• Ownership of shares and share-based rights in
the company at the end of the financial year 2021:
148 shares. Shares and share-based rights in the
company owned by a corporation over which the
director exercises control, and ownership of shares
and share-based rights in Group companies at the
end of the financial year 2021: 0.
Mikko-Heikki Inkeroinen
• Born 1987
• M.Soc.Sc.
• Principal occupation: Chief Digital Officer of Kamux
Corporation, 2018–
• Ownership of shares and share-based rights in
the company at the end of the financial year 2021:
4,938 shares. Shares and share-based rights in the
company owned by a corporation over which the
director exercises control, and ownership of shares
and share-based rights in Group companies at the
end of the financial year 2021: 0.
Jussi Siitonen, resigned on 6 May 2021
• Born 1969
• M.Sc. (Econ.)
• Principal occupation: CFO of Amer Sports, 2011–2021;
CFO and deputy to CEO, Fiskars Corporation, 2021
• Ownership of shares and share-based rights in the
company on 6 May 2021: 500 shares. Shares and
share-based rights in the company owned by a
corporation over which the director exercises control,
and ownership of shares and share-based rights in
Group companies on 6 May 2021: 0.
Catharina Stackelberg-Hammarén
• Born 1970
• M.Sc. (Econ.)
• Principal occupation: founder and Executive Chair of
the Board of Marketing Clinic, 2019–
• Ownership of shares and share-based rights in
the company at the end of the financial year 2021:
5,205 shares. Shares and share-based rights in the
company owned by a corporation over which the
director exercises control, and ownership of shares
and share-based rights in Group companies at the
end of the financial year 2021: 0.
Tomoki Takebayashi
• Born 1976
• MBA
• Principal occupation: CEO and Representative
Director of Christian Dior Japan, 2021–
• Ownership of shares and share-based rights in
the company at the end of the financial year 2021:
148 shares. Shares and share-based rights in the
company owned by a corporation over which the
director exercises control, and ownership of shares
and share-based rights in Group companies at the
end of the financial year 2021: 0.
The Board evaluates the independence of its
members annually in accordance with the Finnish
Corporate Governance Code recommendations.
Among the members of Marimekko’s Board of
Directors, Elina Björklund, Carol Chen, Mikko-Heikki
Inkeroinen, Catharina Stackelberg-Hammarén and
Tomoki Takebayashi are independent of the Company
and its significant shareholders. Mika Ihamuotila is
not independent of the company nor its significant
shareholders due to his indirect shareholding through
PowerBank Ventures Ltd, equaling 12.5 percent of the
shares and votes in the company.
Mika Ihamuotila has acted as half-time Chair of
Marimekko Corporation’s Board of Directors since 17
April 2019 pursuant to a separate service agreement
governing his half-time chairship (from 11 April 2016
to 16 April 2019, he acted as full-time Chair of the
Board). The Audit and Remuneration Committee of
the company handles and prepares matters related to
the service agreement’s terms and Mika Ihamuotila’s
remuneration. These roles as well as his previous
position as the President and CEO of the company have
been taken into account in the evaluation of Ihamuotila’s
independence.
Description of the operations of the Board of Directors
The Finnish Companies Act sets the ground for the
duties of the Board of Directors. According to the Act,
the Board is responsible for the proper organization
of the company’s administration and operations. The
President and CEO is responsible for the day-to-day
management and development of the company in
accordance with the instructions and orders of the
Board of Directors.
The principal duties of Marimekko Corporation’s
Board of Directors are defined in the written rules
of procedure confirmed by the Board. The rules of
procedure are reviewed and confirmed annually at the
Board’s constitutive meeting, held following the AGM.
The Board reviews all matters that are significant to
or have long-term effects on Marimekko’s business
operations.
According to the rules of procedure, the Board
addresses matters such as the following
• specifying and confirming strategic objectives and
guidelines for the Group and the various business
areas
• reviewing and confirming operating plans and
budgets for the Group and the various business areas
• reviewing and approving interim reports, half-
year financial reports, the consolidated financial
statements and the report of the Board of Directors
• expanding and downsizing business operations
• considering mergers, acquisitions and demergers and
restructuring arrangements
• deciding on investments and the acquisition and sale
of assets that are either strategically or financially
significant
• deciding on financial policy and contingent liabilities
related to financing arrangements
• approving the Group’s reporting, risk management
and internal control procedures, and audit and control
systems
• approving the audit plan
• monitoring and assessing how related party
transactions are part of the company’s ordinary
course of business and according to market terms
• appointing the company’s President and CEO and the
members of the Management Group and deciding on
their remuneration
• providing instructions to the President and CEO
• specifying and confirming sustainability principles for
the Group and monitoring sustainability reporting.
Corporate governance statement 2021
85
In 2021, the Board focused, among other things, on
the following subjects
• development of Marimekko’s strategy as well as
confirming strategic objectives for the various
business areas
• strategic development of the international expansion
of the store network and e-commerce
• development of Marimekko’s sustainability strategy
• strategic development of the product portfolio as well
as measures to increase productivity in the medium
term
• reviewing the design and brand strategy
• reviewing and confirming operating plans and
budgets
• assessing the impacts of the coronavirus pandemic
on the company’s operations in the short term and on
the strategy in the long term
• strengthening market position in Asia, especially in
China.
In 2021, the Board of Directors held six meetings.
The Board members’ attendance rate at meetings
was 97.7 percent. The Board evaluated its operations
and working methods in 2021 through internal
self-evaluation.
The company has ensured that all directors have
received sufficient information on the company’s
business operations, operating environment and
financial position and that any new directors have been
properly introduced to the operations of the company.
Board committees
The Board of Directors elected by the AGM on 14 April
2021 appointed an Audit and Remuneration Committee
THE BOARD OF DIRECTORS ON 31 DECEMBER 2021
Independent of the company and
Position Board member since its significant shareholders Attendance
Mika Ihamuotila Chair since 2015 2008 No 6/6
Elina Björklund Vice Chair since 2015 2011 Yes 6/6
Carol Chen Member 2021 Yes 5/6
Mikko-Heikki Inkeroinen Member 2015 Yes 6/6
Catharina Stackelberg-Hammarén Member 2014 Yes 6/6
Tomoki Takebayashi Member 2021 Yes 5/6
AUDIT AND REMUNERATION COMMITTEE ON 31 DECEMBER 2021
Committee Independent of the company and
Role/ Committee membership member since its significant shareholders Attendance
Elina Björklund Chair since 2015 2015 Yes 5/5
Mikko-Heikki Inkeroinen Member 2017 Yes 5/5
Catharina Stackelberg-Hammarén Member 2015 Yes 5/5
from among its members. Elina Björklund was elected
as Chair and Mikko-Heikki Inkeroinen and Catharina
Stackelberg-Hammarén as members of the Audit and
Remuneration Committee. The Board of Directors or the
AGM has not established any other committees.
According to the rules of procedure confirmed by
the Board of Directors, the Audit and Remuneration
Committee handles and prepares matters related to the
terms and remuneration of the company’s executive
management as well as other tasks and supervision
typically assigned to audit and remuneration
committees. These include, for example, the following:
• monitoring the reporting process of financial
statements
• supervising the financial reporting process
• monitoring the efficiency of the company’s internal
control and internal audit, if applicable, and risk
management systems
• reviewing the description of the main features of the
internal control and risk management systems pertaining
to the financial reporting process, which is included in
the company’s corporate governance statement
• monitoring the statutory audit of the financial statements
and consolidated financial statements
• evaluating the independence of the statutory auditor or
audit firm and especially the additional services offered
to the company as well as preparing the proposal for
resolution on the election of the auditor
Corporate governance statement 2021
• monitoring and assessing how related party
transactions are part of the company’s ordinary
course of business and according to market terms
• reviewing, overseeing and verifying outcomes of
management compensation plans and programs.
The Chair of the Audit and Remuneration
Committee approves a budget for travel and
entertainment expenses of the Chair of the Board
and monitors the expenses.
In 2021, the Audit and Remuneration Committee
held five meetings. The Committee members’
attendance rate at meetings was 100 percent.
86
President and CEO
The Board of Directors elects the President and CEO
and decides on the terms of the President and CEO’s
employment. The terms are specified in a written
contract which is approved by the Board of Directors.
The President and CEO is responsible for the day-to-
day management and development of the company
in accordance with the instructions and orders of the
Board of Directors. The President and CEO is also
responsible for keeping the Board up to date with
regard to the development of the company’s business
operations and financial situation.
Tiina Alahuhta-Kasko, President since 9 April 2015,
President and CEO since 11 April 2016
• Born 1981
• M.Sc. (Econ.), CEMS MIM
• Ownership of shares and share-based rights in
the company at the end of the financial year 2021:
30,564 shares. Shares and share-based rights in
the company owned by a corporation over which the
director exercises control, and ownership of shares
and share-based rights in Group companies at the
end of the financial year 2021: 0.
The Board of Directors has not appointed a deputy
to the President and CEO.
Management Group
The company’s business operations have been divided
into different responsibility areas. The directors of
the different areas form the company’s Management
Group which is chaired by the President and CEO. The
Management Group has no authority based on law or the
Articles of Association. The Management Group reviews
business operational matters and procedures affecting
the entire Group. The Management Group also reviews
the operating plans of the different business areas and
the development of business operations.
Elina Anckar, Chief Financial Officer, from 11 December 2015
• Born 1968
• M.Sc. (Econ.)
• Ownership of shares and share-based rights in the
company at the end of the financial year 2021: 2,029
shares. Shares and share-based rights in the company
owned by a corporation over which the director
exercises control, and ownership of shares and share-
based rights in Group companies at the end of the
financial year 2021: 0.
Rebekka Bay, Chief Creative Officer, Creative Director,
from 1 September 2020
• Born 1969
• BA (Hons) in Fashion
• Ownership of shares and share-based rights in the
company at the end of the financial year 2021: 2,869
shares. Shares and share-based rights in the company
owned by a corporation over which the director
exercises control, and ownership of shares and share-
based rights in Group companies at the end of the
financial year 2021: 0.
Tina Broman, Chief Supply Chain and Product Officer,
from 2 October 2017
• Born 1969
• Degree in women’s tailoring and textile art
• Ownership of shares and share-based rights in the
company at the end of the financial year 2021: 1,180
shares. Shares and share-based rights in the company
owned by a corporation over which the director
exercises control, and ownership of shares and
share-based rights in Group companies at the end
of the financial year 2021: 0.
Kari Härkönen, Chief Digital Officer, from 14 December
2017
• Born 1981
• M.Sc., MBA
• Ownership of shares and share-based rights in the
company at the end of the financial year 2021: 1,189
shares. Shares and share-based rights in the company
owned by a corporation over which the director
exercises control, and ownership of shares and
share-based rights in Group companies at the end
of the financial year 2021: 0.
Sanna-Kaisa Niikko, Chief Marketing Officer, from
8 October 2020
• Born 1986
• BA (English)
• Ownership of shares and share-based rights in the
company at the end of the financial year 2021: 229 shares.
Shares and share-based rights in the company owned by
a corporation over which the director exercises control,
and ownership of shares and share-based rights in Group
companies at the end of the financial year 2021: 0.
Corporate governance statement 2021
Tanya Strohmayer, Chief People Officer, from
10 February 2017
• Born 1970
• BBA (Political Science, International Business)
• Ownership of shares and share-based rights in
the company at the end of the financial year 2021:
1,436 shares. Shares and share-based rights in the
company owned by a corporation over which the
director exercises control, and ownership of shares
and share-based rights in Group companies at the
end of the financial year 2021: 0.
Dan Trapp, Chief Sales Officer, from 2 November 2020
• Born 1975
• Ownership of shares and share-based rights in the
company at the end of the financial year 2021: 257.
Shares and share-based rights in the company owned
by a corporation over which the director exercises
control, and ownership of shares and share-based
rights in Group companies at the end of the financial
year 2021: 0.
Riika Wikberg, Chief Business Development Officer,
from 15 February 2018
• Born 1981
• M.Sc. (Econ.), CEMS MIM
• Ownership of shares and share-based rights in
the company at the end of the financial year 2021:
915 shares. Shares and share-based rights in the
company owned by a corporation over which the
director exercises control, and ownership of shares
and share-based rights in Group companies at the
end of the financial year 2021: 0.
87
INTERNAL CONTROL AND RISK MANAGEMENT
IN THE MARIMEKKO GROUP
Internal control
Marimekko applies internal control principles and an
operating plan to support the execution and monitoring
of internal control. In the Marimekko Group, internal
control is a process, for which the Board of Directors
and the President and CEO are responsible. The
objective of internal control is to provide reasonable
assurance that:
• operations are effective and aligned with strategy
• financial and operational reporting is reliable
• the Group is in compliance with applicable laws and
regulations
• the Code of Conduct and core values are established.
The Board of Directors focuses on increasing
shareholder value and, in accordance with good
corporate governance, ensures that principles of
internal control and risk management exist within the
company. The Audit and Remuneration Committee is
responsible for monitoring the efficiency of internal
control and risk management.
The system of internal control of Marimekko
Corporation is based on the Committee of Sponsoring
Organizations’ (COSO) framework, which consists
of five key components: control environment, risk
assessment, control activities, information and
communication, and monitoring. The components and
their relation to control over financial reporting are
presented in more detail later in this statement.
Risk Management
Marimekko’s risk management is guided by the risk
management policy approved by the Board of Directors,
which defines the company’s risk management
principles, objectives and responsibilities as well as the
organization and monitoring of the risk management
process.
Marimekko’s risk management aims to safeguard
the smooth continuity of business operations and
ensure stable profit development of the company.
Comprehensive risk management is an ongoing,
systematic process which involves identifying and
evaluating key risks associated with the company’s
operations and operating environment. The key risks
comprise risks which could prevent the company from
exploiting business opportunities or jeopardize or
prevent the achievement of the strategic objectives
of the Group or a Group company, or the continuity
of operations or would otherwise have significant
consequences for the company, its personnel or
stakeholders. Risk management is an integral element
of the company’s management and decision-making
process, covering all of the Group’s functions.
Risk reporting is an integral element of Marimekko’s
annual business planning and strategy process. Internal
risk reporting is part of regular, continuous business
reporting, short-term business planning and decision-
making process. The company reports its key risks and
risk management measures annually in the report of the
Board of Directors and quarterly in interim reports, and
in compliance with corporate governance principles,
laws and regulations. Individual reports may also be
published whenever necessary.
Roles and responsibilities
The Board of Directors is ultimately responsible for the
administration of the company and the appropriate
organization of its operations. The Board approves
the internal control, risk management and corporate
governance policies.
The Audit and Remuneration Committee is
responsible for the appropriate arrangement of the
control of the company accounts and finances and
monitors the efficiency of internal control and risk
management systems.
The President and CEO sets the basis for the
internal control environment by instructing the
management and monitoring the manner in which
they control business operations. The President and
CEO is responsible for the day-to-day management of
the company in accordance with the instructions and
orders given by the Board of Directors. The President
and CEO ensures that the accounts of the company
are in compliance with laws and regulations and that its
financial affairs are arranged in a reliable manner. The
President and CEO further ensures the execution of
appropriate risk management in the Group.
The duty of the Management Group members is
to define internal control instructions and operating
principles related to their area of responsibility and to
communicate them to the personnel.
The financial and business control functions support
the development of operational controls and monitor
the adequacy and efficiency of the controls. They
are also responsible for the accuracy, timeliness and
compliance with applicable laws and regulations of
external reporting.
Corporate governance statement 2021
Internal control and risk management related to the
financial reporting process
Internal control related to the financial reporting
process is part of Marimekko’s overall internal control
and risk management framework. The objective of
internal control and risk management related to the
financial reporting process is to ensure
• reliable financial reporting that supports internal
decision-making and serves the needs of the
shareholders
• compliance with laws and regulations, and the
company’s internal policies.
The consolidated financial statements of the Group
are prepared in accordance with the International
Financial Reporting Standards (IFRS). The notes to the
consolidated financial statements also comply with
the Finnish Accounting Act and Companies Act. Any
adjustments are made in accordance with the notes to
the financial statements.
The development of the company’s business and
achievement of financial goals are monitored through a
Group-wide financial reporting process. Sales reports
are prepared daily, weekly or monthly, as applicable.
Consolidated profit and loss and balance sheet reports
are prepared monthly. The President and CEO reports
monthly, quarterly and annual financial statements as
well as other items specified in the Board’s rules of
procedure to the Board of Directors.
The Group discloses information on its business
development and financial situation in quarterly interim
reports, the half-year financial report and the financial
statements bulletin.
88
Control environment
An internal control environment is the foundation of
Marimekko’s internal control. It influences the control
consciousness of the organization and forms the basis
for other internal control components.
The internal control environment encompasses the
ethical values, competence and development of the
company’s personnel, the management’s operating
style and way of assigning authority and responsibility,
as well as the guidelines and approval policy set by the
Board of Directors.
The internal control environment of Marimekko’s
financial reporting process encompasses the
instructions that the company has prepared in order
to harmonize processes and procedures. To ensure
consistency of accounting practices of subsidiaries,
a common chart of accounts is in use in the Group.
Moreover, Group-wide accounting principles are applied
in the financial statements, and the Board of Directors
approves the accounting principles to be applied.
Risk assessment
At Marimekko, risks are identified as part of the
annual business planning and strategy process. Risk
management actions, responsible persons and an
implementation schedule are determined for the
identified and monetized risks. Risk identification is
updated quarterly when preparing the interim reports.
Marimekko’s strategic and operational objectives
form the basis for risk identification. The aim is to
identify risks threatening the achievement of the
company’s objectives. Risk analyses and assessments
are conducted as self-assessments.
Control objectives and common control points have
been defined for the identified risks associated with
the Group’s financial reporting process. Examples of
control points are internal policies and authorization
practices, reconciliations, verifications and segregation
of duties.
Control activities
Control activities are the policies, systems and other
procedures that help Marimekko’s management to
ensure the effectiveness, efficiency and reliability of
the company’s operations. Controls also help to ensure
that the risks threatening the achievement of the
company’s objectives are managed appropriately.
The control points defined in the risk assessment
for the financial reporting process are in place at all
levels of the Group to ensure that applicable laws,
internal procedures and ethical values are adhered to.
Directors of the various functions are responsible for
following developments in legislation in their respective
areas and communicating changes to the organization.
The directors are also responsible for setting up
adequate compliance controls and organizing related
training in their functions. Moreover, process controls
have been defined for the most significant business
and reporting processes.
Marimekko’s consolidated financial statements
include the accounts of the parent company
Marimekko Corporation and its subsidiaries.
Marimekko Corporation’s subsidiaries report to the
parent company monthly and quarterly and during the
preparation of the consolidated financial statements.
The financial statements of the subsidiaries are
prepared in accordance with local accounting
standards; the subsidiaries do not apply IFRS in their
financial statements. The adjustments required under
IFRS are made at the Group level.
The company’s financial function is responsible for
preparing the monthly consolidated financial statements
based on the financial statements of the subsidiaries.
The Chief Financial Officer and the business control
function review the figures of the parent company
and the subsidiaries and analyze the reasons for any
deviations in order to assure the reliability of financial
reporting. In addition, the company’s financial function
consolidates and reviews the income statement and the
balance sheet monthly and also before submitting them
to the Board of Directors.
The Board of Directors approves the interim reports,
the half-year financial report, the financial statements
bulletin, and the financial statements.
Information and communication
The communication of controls and control procedures
is an essential part of internal control related to the
financial reporting process at Marimekko. The people
responsible for financial reporting in subsidiaries and the
parent company are involved in the assessment of risks
associated with financial reporting and the defining of
controls. The Group’s common control points have been
communicated to all involved in the reporting process.
The parent company’s financial function supports
the implementation of the controls in the subsidiaries
through regular guidance and monitoring.
The Group has instructions for financial reporting
and the instructions are updated regularly. Accounting
principles and reporting instructions are communicated
to all people involved.
Corporate governance statement 2021
Monitoring
Monitoring of controls is a way to assess the efficiency
and effectiveness of control activities on an ongoing
basis. Monitoring can be done continuously as part of
day-to-day work or as separate evaluations.
The Board’s Audit and Remuneration Committee
carries out its supervisory duties by monitoring the
reporting process of interim reports and financial
statements and by evaluating the adequacy
and appropriateness of internal control and risk
management related to the financial reporting process.
Managers are responsible for continuously monitoring
the internal control system for the financial reporting
process as part of operational monitoring. Monitoring
can also be conducted by the parent company’s
financial function. Ongoing monitoring includes regular
management activities and other tasks carried out by
the personnel while performing their duties.
The scope and frequency of separate evaluations
depend primarily on risk assessments and the
effectiveness of ongoing monitoring procedures.
The detected deficiencies in internal control of
financial reporting process are reported upwards;
the most serious deficiencies are reported to the top
management and the Board of Directors.
Other Group monitoring activities include
administrative and legal guidance, defining
responsibilities and authorities as well as monitoring
and analyzing the achievement of the organization’s
objectives. Moreover, the effectiveness of the risk
management system is controlled as part of Group
monitoring activities.
89
OTHER INFORMATION TO BE PROVIDED IN THE
CORPORATE GOVERNANCE STATEMENT
Internal audit
Considering the nature and extent of the company’s
business, Marimekko has not found it necessary to
establish a separate internal audit function. The Audit
and Remuneration Committee monitors and evaluates
the level of internal control and reports this to the Board
of Directors at least once a year. The Board confirms
the level of the company’s internal control. Where
necessary, the Board may purchase internal audit
services from an external service provider.
Related party transactions
The company adheres to the responsibilities set
out in the Finnish Companies Act and the Corporate
Governance Code when monitoring and evaluating
related party transactions. The rules of procedure for
the Board of Directors and the Audit and Remuneration
Committee of the company describe the duties
and responsibilities connected with related party
transactions. The Board of Directors evaluates and
monitors transactions concluded between the company
and its related parties and ensures that any conflicts
of interest are taken into account appropriately in the
decision-making of the company. The company keeps
a list of the related parties. Related party transactions
that are not concluded in the ordinary course of
business or on customary commercial terms are subject
to approval by the Board of Directors. The company’s
financial function monitors related party transactions
as part of the normal quarterly control and reporting
procedure and reports related party transactions to
the company’s Audit and Remuneration Committee.
Related party transactions are disclosed as required
annually in the notes to the company’s financial
statements. Material related party transactions
are disclosed in accordance with the Securities
Market Act.
Insider administration
Marimekko Corporation’s insider policy, based on
the Guidelines for Insiders of Nasdaq Helsinki Ltd
and the Market Abuse Regulation, describes the
main obligations of insiders in the company as well
as the trade reporting of managers and their closely
associated persons, and other related regulations and
guidance under the Market Abuse Regulation. The
Board of Directors confirms the insider policy.
The company draws up and maintains a list of
all persons who have access to inside information
and who work for the company under a contract of
employment, or otherwise perform tasks through
which they have access to inside information.
Marimekko has decided not to maintain a list of
permanent insiders. Consequently, all persons
having inside information are entered in a project-
specific insider list established and maintained for all
projects that involve inside information. The decision
to establish a project-specific insider list is taken
simultaneously with the decision to delay disclosure
of inside information. Project-specific insider lists are
not public. The company’s insider administration is
responsible for maintaining the insider lists. Persons
entered in a project-specific insider list of Marimekko
are not allowed to trade in the company’s financial
instruments during the term of the project.
Preparation of periodic disclosure (interim reports,
half-year financial report, financial statements bulletin)
or regular access to unpublished financial information
is not regarded as an insider project, nor does the
company resolve to delay disclosure of information in
relation thereto. However, due to the sensitive nature
of unpublished information on the company’s financial
results, the company maintains a list of persons who
have authorized access to unpublished financial
information and a closed period before the publishing
of annual and interim results. Trading in the company’s
financial instruments is always prohibited when a
person holds inside information.
The members of the Board of Directors and the
Management Group of Marimekko are required to notify
the company and the Finnish Financial Supervisory
Authority of every transaction conducted on their
own account relating to the financial instruments of
Marimekko. The company publishes the information it
has received in a stock exchange release promptly after
receipt of the notification. Each manager shall identify
the persons closely associated with them and notify the
company in writing of the names of such persons and
other required information. The respective obligations
also apply to persons closely associated with the
managers.
Marimekko applies a closed period of 30 days
before the publishing of annual and interim results.
During the closed period, the members of the Board
of Directors and Management Group are prohibited
from trading in Marimekko shares or other financial
instruments linked to the company. The closed period
also applies to persons participating in the preparation
of interim reports and financial statements and to
Corporate governance statement 2021
The members of the Board of Directors and Management Group
are presented in detail on the company’s website.
persons determined by the company to have, based
on their position or access rights, regular access to
unpublished financial information.
The General Counsel of the company is responsible
for insider administration. The company’s employees
may report actual or potential infringements of
the insider policy or financial market regulation in
accordance with the internal, anonymous procedure of
the company.
Auditing
KPMG Oy Ab, Authorized Public Accountants, has
acted as the company’s auditor, with Virpi Halonen,
Authorized Public Accountant, as the auditor with
principal responsibility, since 12 April 2018. In 2021, the
remuneration paid for audit services amounted to EUR
111 thousand. The remuneration paid to the auditor for
non-audit services in 2021 totaled EUR 47 thousand.
Helsinki, 15 February 2022
Marimekko Corporation
Board of Directors
90
Remuneration
report 2021
91
This remuneration report 2021 states how Marimekko
has implemented its remuneration policy in the financial
year 2021. The report includes information concerning
remuneration of the Board of Directors and the President
and CEO of Marimekko between 1 January 2021 and
31 December 2021. The remuneration report has been
prepared in accordance with the Finnish Corporate
Governance Code 2020 and other applicable laws and
regulations.
The remuneration report has been prepared for
review by the company’s Audit and Remuneration
Committee, and the Board has approved it for submission
to the General Meeting. The shareholders will make an
advisory decision on the approval of the remuneration
report at the 2022 Annual General Meeting.
INTRODUCTION
Overview of remuneration in the financial year 2021
Marimekko’s Remuneration Policy is the basis for the
remuneration of Marimekko’s Board of Directors’ and the
President and CEO. The Remuneration Policy is available
on the company’s website at company.marimekko.com
under Investors/Management/Corporate Governance/
Remuneration. The Remuneration Policy will be applied
until the 2024 AGM, unless the Board decides to bring
a revised policy for an advisory decision at an earlier
General Meeting.
In 2021, Marimekko’s net sales grew by 23 percent
and were EUR 152,227 thousand (123,568). Net sales
in Finland were up by 30 percent and international
sales increased by 14 percent. Net sales were boosted
especially by a favorable trend in wholesale and retail
sales in Finland. In addition, wholesale sales in the
Asia-Pacific region and Scandinavia as well as retail
sales in North America grew strongly. The good trend
in wholesale sales in Finland was supported by non-
recurring promotional deliveries, the total value of
which was significantly higher than last year. On the
other hand, net sales were weakened by a decrease
in wholesale sales in EMEA as well as lower licensing
income in the Asia-Pacific region. Nearly all Marimekko’s
own stores were open in 2021 unlike the year before,
when a large number of Marimekko stores around the
world were temporarily closed during the first or second
quarter due to the pandemic.
Marimekko’s operating profit increased to EUR
31,249 thousand (18,772). The comparable operating
profit grew by 59 percent and was EUR 31,249
thousand (19,600). Earnings were boosted especially
by increased net sales but also improved relative sales
margin. On the other hand, an increase in fixed costs
had a weakening impact on results.
The key factors behind the strong performance
included Marimekko’s long-term efforts to modernize its
brand and lifestyle collections, strengthening its digital
business and the omnichannel customer experience
as well as increasing the company’s international
brand awareness from one year to the next. The new
operating practices adopted during the pandemic and
Marimekko’s agility to react to the constantly changing
operating environment were also important factors.
In the financial year 2021, the company’s decision-
making regarding remuneration was compliant with the
processes defined in the remuneration policy. There
has been no deviation from the remuneration policy and
the Board has not identified a need to apply clawback
provisions to variable remuneration paid.
In accordance with the current remuneration policy,
the remuneration in 2021 has supported Marimekko’s
financial and strategy-based targets and goals as well
as the sustainability strategy and company values. The
remuneration has established a strong link between the
President and CEO and shareholder interests by tying
a significant portion of the President and CEO’s total
earning opportunity to performance-based incentives
derived from the company’s financial targets and
operational metrics. The President and CEO’s earning
opportunities are based to a considerable extent on
long-term incentive plans.
In 2021, Marimekko had short-term and long-term
incentive systems in place for the President and CEO.
Under the long-term incentive system, the earnings
periods 1 April 2018–30 September 2021 and 1 April
2018–31 January 2022 were in place during the financial
year 2021. For both periods, the reward is based on the
company’s total shareholder return including dividends.
The reward is paid half in company shares and half
in cash. In 2021, the President and CEO received the
reward from the first earnings period ending on 30
September 2021. The shares received as part of the
reward are subject to a two-year transfer restriction.
The purpose of the short-term bonus is to promote
the company’s strategy through the achievement
of annual targets. In 2021, the performance criteria
were based on the development of the company’s net
sales and operational result, supporting Marimekko’s
growth strategy. In addition, the President and CEO had
personal targets relating to the company’s strategic
Remuneration report 2021
92
Net sales
EUR million
0
50
100
150
200
2017 2018 2019 2020 2021
102.3
111.9
125.4
123.6
152.2
EUR million
Comparable operating profit
0
10
20
30
40
2017 2018 2019 2020 2021
8.6
12.2
17.1
19.6
31.2
EUR
Share price trend 2017–2021
0
20
40
60
80
100
2017 2018 2019 2020 2021
projects, which also included sustainability-related
metrics. The targets set by the Board for year 2021
were achieved at a rate of 100 percent.
The total remuneration paid to the President and
CEO in the financial year 2021 was EUR 1,015,879 (2020:
442,796).
Development of financial performance and
remuneration at Marimekko
Over the past five years, the company has, in
accordance with its strategy, developed its brand and
collections in order to appeal to a broader customer
base and continued its international growth strategy.
This has been approached through major cities with a
focus on Asian partner markets, digital business and
omnichannel operations. Commercial concepts and
marketing have been developed consistently, with
sustainability playing a more central role year by year.
The systematic implementation of the international
growth strategy is reflected in the trend in the
company’s financial performance.
The actual remuneration of the President and CEO,
including both the short-term bonuses and long-term
incentives, has developed in line with the financial
performance of the company, as evidenced by the
graphs below.
Remuneration report 2021
Remuneration of the President and CEO
(EUR 1,000) 2017 2018 2019 2020 2021
Fixed annual salary + fringe benefits 252 292 321 341 364
Short-term bonus 63 38 92 101 100
Long-term incentive - 73 - - 552
Total remuneration 316 403 413 443 1,016
Change from the previous year, %
Fixed annual salary + fringe benefits 9 16 10 6 6
Total remuneration 38 28 2 7 129
Fixed salary
Short-term bonus
Long-term incentive
Remuneration of the President and CEO by element
EUR 1,000
0
200
400
600
800
1 000
2017 2018 2019 2020 2021
93
Annual remuneration of Board members
2017 2018 2019 2020 2021
Remuneration of Chair¹, EUR 1,000 40 40 48 48 48
Change from the previous year, % 0 0 20 0 0
Remuneration of Vice Chair, EUR 1,000 30 30 35 35 35
Change from the previous year, % 0 0 17 0 0
Remuneration of other members, EUR 1,000 22 22 26 26 26
Change from the previous year, % 0 0 18 0 0
Average remuneration of employees
2017 2018 2019 2020 2021
Change in average annual remuneration
compared to the previous year, % 0.6 4.0 1.7 4.8 1.7
The change in an employee’s average remuneration is based on the average of the remuneration of employees
receiving monthly salaries and that of employees receiving hourly wages, taking account of the number of persons in
these employee categories.
Remuneration report 2021
REMUNERATION OF THE BOARD IN 2021
Marimekko’s AGM of 14 April 2021 decided on the
annual fees to be paid to the Board members as follows:
EUR 48,000 to the Chair, EUR 35,000 to the Vice Chair
and EUR 26,000 to the other members of the Board.
Approximately 40 percent of the annual remuneration
of the Board members is paid in Marimekko shares
acquired from the market and the rest in cash. The
remuneration is paid entirely in cash if a Board member
on the date of the AGM, 14 April 2021, held the shares of
company worth more than EUR 1,000,000.
The remuneration to the Board members in 2021
was paid according to the decision of the AGM and
totaled EUR 203,000.
According to the decision of the AGM, the shares
were acquired directly on behalf of the Board members
within two weeks following the release of the interim
report for the period 1 January to 31 March 2021, or,
if this was not possible due to insider rules, as soon
as possible thereafter. There are no specific rules or
limitations for owning shares received as Board fees.
In addition, the AGM decided that no additional
fee is paid to the Board members for participating in
Board meetings. The AGM decided on a separate fee
to be paid for committee work as follows: EUR 2,000
per meeting to Chair and EUR 1,000 per meeting to
members. No other financial benefits were paid for
Board membership.
In addition to the annual remuneration of the Chair
of the Board decided on by the AGM, a monthly fee of
EUR 4,400 has been paid to Mika Ihamuotila for half-
time duty pursuant to a separate service agreement. No
other fees besides the annual remuneration of the Chair
of the Board and the monthly fee paid under a separate
service agreement have been paid to Mika Ihamuotila.
The pension benefits are determined by the Employees’
Pensions Act. The company’s Audit and Remuneration
Committee considers and prepares matters related
to the terms and conditions of the separate service
agreement and to the remuneration.
¹ In addition to the annual remuneration, in 2017–2018, Mika Ihamuotila was paid a fee under a separate service agreement based on the
Chair’s full-time duty; since 2019, the duty has been on a half-time basis.
94
Fees paid to the Board Members in the financial year 2021
Number of shares
Annual received as part
remuneration, of annual Committee Other fees,
Board member Role/Committee membership EUR remuneration fees, EUR EUR Total, EUR
Elina Björklund Vice Chair of the Board
Chair of the Audit and
Remuneration Committee 35,000 199 8,000 - 43,000
Carol Chen 26,000 148 - - 26,000
Mika Ihamuotila Chair of the Board 48,000 - - 53,040¹ 101,040
Mikko-Heikki Inkeroinen Member of the Audit and
Remuneration Committee 26,000 148 4,000 - 30,000
Catharina Stackelberg-Hammarén Member of the Audit and
Remuneration Committee 26,000 148 4,000 - 30,000
Tomoki Takebayashi 26,000 148 - - 26,000
REMUNERATION OF THE PRESIDENT AND CEO
IN 2021
The fixed annual salary, including fringe benefits, of the
President and CEO Tiina Alahuhta-Kasko totaled EUR
363,637.69 in 2021.
In 2021, Marimekko had short-term bonus and long-
term incentive systems in place for the President and
CEO. The objective of the long-term incentive system
is to align the interests of the President and CEO and
the shareholders in the long term. The purpose of the
short-term bonus is to promote the company’s strategy
through the achievement of annual targets.
During the financial year 2021, the earnings periods
of 1 April 2018–30 September 2021 and 1 April 2018–31
January 2022 of the long-term incentive system were
in place. For both periods, the reward is based on the
company’s total shareholder return including dividends.
The reward is paid half in company shares and half in
cash. The shares received as part of the reward are
subject to a two-year transfer restriction. Receiving
the reward requires that the President and CEO’s
employment agreement is in force at the time of the
payment. The President and CEO’s maximum reward
for both earnings periods correspond approximately to
the value of her fixed gross annual salary. In 2021, the
reward from the first earnings period, which ended on
30 September 2021, was paid to the President and CEO.
The reward was paid in shares (1,734 shares) and cash
(EUR 419,086.13). Reward for the earning period 1 April
2018–31 January 2022 was paid in February 2022.
Remuneration report 2021
¹ Fee paid to Mika Ihamuotila for half-time duty pursuant to a separate service agreement.
95
Long-term incentive system in place in the financial year 2021
Criteria
Share price outcome (out Number of Share price
Board on decision Earnings of maximum shares received Payment in on payment
Earnings period decision date date, EUR criteria level) in payments cash, EUR Payment date date, EUR
1 Apr. 2018–30 Sept. 2021 14 Feb. 2018 10.10 Total shareholder 100% 1,734 419,086.13 5 Nov. 2021 76.65
return including
dividends
1 Apr. 2018–31 Jan. 2022 14 Feb. 2018 10.10 Total shareholder 100% 2,005 405,217.76 18 Feb. 2022 73.21
return including
dividends
Remuneration paid to the President and CEO in the financial year 2021
Fixed annual salary
+ fringe benefits Short-term Long-term Total
EUR bonus¹ incentive Other fees remuneration
363,637.69 100,241.00 552,000.00 - 1,015,878.69
The performance criteria for the short-term bonus in
2021 were based on the development of the company’s
net sales and operational result. In order to support
Marimekko’s profitable growth strategy, together these
two KPIs were 80 percent of the targets. In addition,
the President and CEO had personal criteria related to
strategic projects of the company, including also KPIs
related to the sustainability. The President and CEO’s
maximum bonus under the short-term bonus system
corresponds to her fixed gross salary for four months.
The targets set by the Board were achieved at a rate of
100 percent, and the President and CEO’s bonus earned
in the financial year 2021 amounted to EUR 115,000.
The bonus will be paid in spring 2022.
In 2021, 36 percent of the remuneration paid to the
President and CEO comprised of fixed components
(including fringe benefits) while 64 percent comprised
of variable components. The President and CEO’s
remuneration is covered by the Finnish statutory
pension scheme.
If the President and CEO resigns of her own accord,
the term of notice is six months. If the company
terminates the contract, the term of notice is six
months, but the President and CEO is entitled to a
severance payment corresponding to her fixed salary
of six months, in addition to her fixed salary during the
term of notice. The remuneration in case of termination
is tied to a fixed-term non-compete obligation.
Structure of the remuneration paid to the President
and CEO in 2021
36%
54%
10%
Fixed salary
Short-term bonus
Long-term incentive
Remuneration report 2021
¹ Earned based on performance in the financial year 2020, paid in 2021.
96
marimekko.com