50
Board of Directors’
Report and Financial
Statements 2021
51
Board of Directors’ Report
Optomed in brief
Optomed is a Finnish medical technology company and a leading manufacturer of
handheld fundus cameras and screening software. Optomed combines handheld
fundus cameras with software and articial intelligence with the aim to transform
the diagnostic process of various diseases, such as rapidly increasing diabetic
retinopathy. Optomed has oces in Finland, the US and China and the compa-
ny’s products are sold via various sales channels in over 60 countries globally.
Operating Environment
Optomed operates in the global ophthalmic devices market including the fun-
dus camera market, ophthalmic software market and the market for articial
intelligence in eye screening.
The global fundus camera market exceeded 473 million USD in 2020 and is
anticipated to grow at a CAGR of over 3.2 percent between 2021 and 20271.
The global market for nonmydriatic handheld fundus cameras was estimated at
122.5 million USD in the year 2020 and is projected to reach 192.6 million USD
by 2026, growing at a CAGR of 7.9 percent over the analysis period
2
.
The leading markets for handheld cameras are North America and Europe.
The US currently accounts for over 30 percent share in the global market was
estimated at 39 million USD in 2021. Europe is expected to reach approxima-
tely 24 million USD by 2026. The respective forecasted market size for China is
expected at 21,7 million USD
2
.
The fundus camera and eye screening market are driven by steady pace of
technological advancements, growing awareness about eye care, increasing
geriatric population and favorable government initiatives
2
.
The adaptation of articial intelligence took a major leap forward in 2021 as the
new reimbursement code for diabetic retinopathy screening with AI was opened
in 2021 in the USA. This new CPT-code 92229 “retinal imaging with automated
point-of-care”, will accelerate the use of AI within the US market, as payment
for the service is more straightforward with the new coding. The US national
average physician fee for CPT 92229 is approximately 45.69 USD. The physician
payment amounts varies across the country depends on the applicable Geo-
graphic Practice Cost Indices (GPCI) for a specic locality, and in the locality with
the highest cost index the physician fee for CPT code 92229 is estimated to be
62.93 USD. The Outpatient Prospective Payment System (OPPS) payment rate
for 92229 is 57.12 USD.
“According to the American Association of Ophthalmology, it is estimated that 61
million adults in the United States are at high risk for vision loss although only
half have visited an eye doctor sometime in the last 12 months. New technology,
such as articial intelligence, may be an important step to make initial screenin-
gs more convenient and accessible, reaching people who may have otherwise
gone without. While it is not expected that articial intelligence would replace
physicians, it will increase eciency. As articial intelligence may be able to as-
sist in the detection of diabetic retinopathy and macular degeneration, it may
help to catch those patients that are currently being missed for this extremely
important examination.”
3
The FDA has now cleared two AI companies’ diabetic retinopathy algorithm
to be sold with dedicated desktop cameras in the US market. Optomed has
completed a prospective clinical study with a selected AI partner, AEYE Health
with the following results: sensitivity 91.9 percent, specicity 93.6 percent and
imageability > 99 percent. The goal of the clinical study is to be able to submit an
application to the FDA to gain clearance for Optomed’s and AEYE’s joint product,
a handheld fundus camera combined with AI.
1 https://www.gminsights.com/industry-analysis/fundus-cameras-market
2 https://www.prnewswire.com/news-releases/global-nonmydriatic-handheld-fundus-came-
ras-markets-2021-2026---focus-on-teleophthalmology-presents-opportunities-301438049.html
3 AAO, Articial Intelligence Trends in Eye Care, Aug 22, 2018
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Group summary - Key gures and APM’s
Revenue, Profitability and Result
EUR, thousand 2021 2020 Change, % 2019
Revenue 14,850 13,011 14.1% 14,977
Gross prot * 10,558 8,955 17.9% 9,944
Gross margin % * 71.1% 68.8% 66.4%
EBITDA -2,002 -733 -173.2% -335
EBITDA margin *, % -13.5% -5.6% -2.2%
Adjusted EBITDA * -2,002 -733 -173.2% -196
Adjusted EBITDA margin *, % -13.5% -5.6% -1.3%
Operating result (EBIT) -4,780 -2,906 -64.5% -2,596
Operating margin (EBIT) *, % -32.2% -22.3% -17.3%
Adjusted operating result (EBIT) * -4,780 -2,906 -64.5% -2,457
Adjusted operating margin (EBIT margin) *, % -32.2% -22.3% -16.4%
Net prot/ loss -4,249 -3,177 -33.8% -2,875
Earnings per share -0.32 -0.24 -32.0% -0.32
Cash ow from operating activities -2,940 -2,801 -5.0% 161
Net Debt 213 -4,090 -105.2% -8,940
Net debt/ Adjusted EBITDA (LTM) -0.1 5.6 45.7
Equity ratio * 58.8% 64.6%
57.2%
R&D expenses personnel 1,773 1,406 26.1% 1,540
R&D expenses other costs 511 253 101.8% 234
Total R&D expenses 2,284 1,659 37.6% 1,774
Optomed uses certain alternative performance measures (APMs) with the purpose to provide a better understanding of how the business
develops. These APMs, as dened, cannot be fully compared with other companies’ APMs.
*) Alternative performance measures, see section Alternative Performance Measures for denitions and calculations.
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53
In January-December 2021, Group revenue increased by 14.1 percent to EUR
14,850 (13,011) thousand. The Devices segment revenue increased by 14.5 per-
cent, despite negative business impact from China in the second half. The strong
growth was mainly driven by increased demand in North America and Europe
as well as from the OEM channel. The Software segment revenue increased by
13.9 percent and was mainly driven by screening and workow software deli-
veries to new customers as well as increase in recurring revenue from existing
customers due to a rise in patient volumes.
The gross margin increased to 71.2 percent from 68.8 percent last year. The
company’s other operating income includes governmental grants of EUR 810 (157)
thousand including a waived loan from Business Finland of EUR 538 thousand
related to a terminated product development project. The gross margin for
the twelve-month period of 2021 adjusted for the total amount of the grants
and other operating income would have been 65.6 percent compared to 67.6
percent in 2020.
In January-December 2021 EBITDA amounted to EUR -2,002 (-733) thousand and
adjusted EBITDA totaled EUR -2,002 (-733) thousand. EBITDA for 2021 includes
a change in the credit loss of EUR 709 thousand, as an impairment loss was
recognized for overdue trade receivables from a Chinese customer.
Net nancial items amounted to EUR 453 (-341) thousand in January-December
2021 and consisted mainly of interest payments to nancial institutions and the
translation eect of Chinese RMB and USD to EUR.
Financial summary per segment
Devices segment
Optomed has two synergistic business segments: Devices and Soft-ware. The
Devices segment develops, commercializes and manu-factures easy-to-use
and aordable handheld fundus cameras, that are suitable for any clinic for
screening of various eye diseases, such as diabetic retinopathy, glaucoma and
AMD (Age Related Macular De-generation).
EUR, thousand 2021 2020 Change, %
Revenues Gross 5,839 5,097 14.5 %
prot * Gross 4,139 2,862 44.6 %
margin % * 70.9 % 56.1 %
EBITDA -1,014 -251 -304.5 %
EBITDA margin *, % -17.4 % -4.9 %
Operating result (EBIT) -3,182 -1,820 -74.8 %
Operating margin (EBIT) *, % -54.5 % -35.7 %
*) Alternative performance measures, see section Alternative Performance Measures for denitions
and calculations
In January-December 2021, the Devices segment revenue increased by 14.5
percent and was EUR 5,839 (5,097). The main drivers for the increase were high
demand in North America and Europe as well as from OEM customers, despite
negative business impact from China in the second half.
In January-December 2021, the gross margin increased to 70.9 percent from 56.1
percent in the previous year. The company received other operating income of
EUR 811 (101) thousand in 2021, including a waived loan from Business Finland
of EUR 538 thousand related to a terminated product development project. The
gross margin excluding other operating income was 57.0 percent in 2021 and
54.1 percent in 2020.
In January-December 2021, EBITDA was EUR -1,014 (-251) thousand or -17.4
(-4.9) percent of revenue. EBITDA for 2021 includes a change in the credit loss
of EUR 709 thousand, as an impairment loss was recognized for overdue trade
receivables from a Chinese customer.
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54
*) Alternative performance measures, see section Alternative Performance Measures for denitions
and calculations
Software segment
Optomed has two synergistic business segments: Devices and Software. The
Software segment develops and commercializes screening software for diabetic
retinopathy and cancer screening for healthcare organizations. The segment
also distributes o-the-shelf products from selected partners to supplement
its own solutions and expertise and provides software consultation to support
the Devices segment screening solution projects.
Group-wide expenses
Group-wide expenses consist of functions supporting the entire group such as
treasury, group accounting, marketing, legal, HR and IT as well as public listing
expenses.
In January-December 2021, group-wide operating expenses amounted to EUR
2,843 (2,408). The increase is mainly related to strengthened of Group Marketing
function in 2021.
Balance sheet, financial position and
investments
In January-December 2021, the cash ow from operating activities amounted
to EUR –2,940 (-2,801) thousand. Net cash in investing activities was EUR -2,574
(-1,820) thousand and relates mainly to capitalized development expenses. Net
cash from nancing activities amounted to EUR 1,637 in 2021 and include a new
loan of EUR 1,0 million in the third quarter of 2021. Net cash from nancing acti-
vities in 2020 amounted to EUR -3,698 thousand and include a loan repayment
of EUR 3,2 million in the rst quarter of 2020.
Consolidated cash and cash equivalents at the end of the period amounted to
EUR 6,804 (10,608) thousand. Interest-bearing net debt totaled EUR 213 (-4,090)
thousand at the end of the period.
Net working capital was EUR 4,315 (3,440) thousand at the end of the period.
The net working capital include trade receivables of EUR 3,7 (2,6) million which is
the main reason for the increase compared to last year. One Chinese customer
represent approximately 50% of the total group trade receivables out of which
approximately EUR 2,0 million is overdue, which after management’s assessment
have resulted in a credit risk accrual of EUR 715 thousand which represent ap-
proximately 30% of the total outstanding trade receivable.
EUR, thousand 2021 2020 Change, %
Revenues 9,011 7,913 13.9 %
Gross prot * 6,420 6,093 5.4 %
Gross margin % * 71.2 % 77.0 %
EBITDA 1,855 1,927 -3.7 %
EBITDA margin *, % 20.6 % 24.4 %
Operating result (EBIT) 1,247 1,324 -5.7 %
Operating margin (EBIT) *, % 13.8 % 16.7 %
In January-December 2021, the Software segment revenue increased by 13.9
percent and was EUR 9,011 (7,913) thousand. The gross prot included other
operating income of EUR 56 thousand in 2020. The gross margin excluding other
operating income was 71.2 percent in 2021 and 76.3 percent in 2020. EBITDA
was EUR 1,855 (1,926) thousand or 20.6 (24.3) percent of revenue.
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55
Research and development
Optomed is a research and development driven healthcare technology compa-
ny, employing 60 full-time equivalent (“FTE”) employees within its research and
development function, divided between the Devices and Software segments. The
strong focus on research and development has been the core of the operations
since the foundation of the company in 2004 and has resulted in a strong inter-
national patent portfolio comprising 59 international patents and 18 pending
patents. Additionally, Optomed has nine registered as well as 68 registered and
8 pending trademarks.
Optomed’s management believes that the strong patent portfolio and continuous
development of new camera and software solutions are the most important
competitive advantages of the company. Optomed’s proprietary and patented
technology have resulted in Optomed being able to develop and construct hand-
held fundus cameras that are able to provide high- quality fundus images. The
quality of the images is higher or on the same level as most traditional desktop
fundus cameras.
The research and development expenditure totaled EUR 4,369 thousand, rep-
resenting 29.4 percent of revenue in 2021, compared to EUR 3,108 thousand or
23.9 percent of revenue in 2020. The research and development expenditure
increased 40,6 percent compared to 2020.
Non-financial information
Environment, Social and Governance (ESG) related matters are an integral part
of Optomed’s operations. The company is still rather small which enables the
management to take ESG matters into consideration eciently.
Optomed has identied manufacturing as one of its key ESG elements and the
key ESG related risks are within the scope of manufacturing. Therefore, the
ESG matters are taken into account when making resolutions with regards to
manufacturing. Currently, Optomed’s devices are manufactured by an ESM
partner that is a NYSE listed entity with its own strict sustainability requirements
and reporting. This gives Optomed visibility and assurance that ESG matters are
taken into account with regards to its device manufacturing.
Optomed has implemented a governance structure required for the Nasdaq
Helsinki main list and implemented signicant amount of policies, including the
code of conduct and whistleblowing that all employees are expected to follow.
The code of conduct also highlights Anti-Bribery and Corruption (ABC) matters
as they have been assessed to be extremely important due to the global nature
of Optomed’s operations. The governance function has been strengthened
signicantly and new expertise has been brought to the board and audit com-
mittee. The governance structure is described in detail in Optomed’s Corporate
Governance Statement.
Health technology is a regulated sector which also contributes to the company’s
ESG approach. Optomed complies with RoHS, REACH, conict mineral regulations
and all applicable privacy, consumer protection and product safety regulations.
Optomed’s compliance with respect to various medical devices related regula-
tions is also audited by third parties regularly.
EUR, thousand 2021 2020
R&D expenditure 4,369 3,108
As percentage of revenue 29.4% 23.9%
5
56
Personnel, management and legal
structure
Personnel
On 31 December 2021, Optomed had a total of 118 employees, of which a
signicant number worked in expert roles. The employee contracts are mostly
permanent contracts.
Graphical distribution of employees 2021 2020
Finland 103 96
China 9 12
United States 6 1
Total 118 109
Management
The Group CEO is responsible for the management of the company’s ope-
rations and governance in accordance with the instructions of the Board of
Directors. The CFO is responsible for the company’s nance function, which
Number of employees 2021 2020
Average number of employees 115 105
Number of employees at the end
of the period
118 109
includes accounting and reporting, business controlling, treasury, tax, , inves-
tor relations and internal controls. The Vice President, Devices is responsible
for the company’s Devices segment, which also includes a sales team, and the
Vice President also acts as the Operating Director of Optomed China. The Vice
President, Software is responsible for the company’s Software segment, in ad-
dition the Vice President acts as the Managing Director of Optomed Software
Oy and is responsible for the group’s IT function. The Vice President, Marketing
is responsible for brand and marketing strategy for new and existing product,
product management and training, as well as management of marketing cam-
paigns and events. The Chief Legal Ocer’s responsibilities include legal mat-
ters, M&A, compliance, corporate governance, corporate responsibility, risk
management, quality and regulatory. The Chief Legal Ocer also acts as the
secretary to the Board of Directors of the company.
6
57
Seppo Kopsala
Chief Executive Ocer
Lars Lindqvist
Chief Financial Ocer
Laura Piila
VP, Devices
Markku Myllylä
VP, Software
Sakari Knuutti
Chief Legal Ocer
Niina Huikuri
VP, Marketing
Design
Value Chain
Management
R&D
Sales
Optomed China
Finance and
Accounting
Business Control
and Admin
Marketing
Sales
R&D
Group ICT
functions
Professional services,
non-health care
Healthcare
solutions delivery
Optomed USA
Quality and
Regulation
HR
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58
Subsidiaries of the company
Consolidated
shareholding and
voting right, %
Country of
incorporation
Optomed Software Oy 100.0% Finland
O p t o m e d H o n g K o n g L t d 100.0% Hong Kong
O p t o m e d C h i n a L i m i t e d C o . , L t d 100.0% China
Shanghai Optomed Medical
Technology Co., Ltd
100.0% China
O p t o m e d U S A I n c . 100.0% United States
Legal structure
Optomed group consists of the parent company Optomed Plc and ve subsi-
diaries in Finland, China, the USA and Hong Kong. In addition, Optomed Plc has
a branch in Sweden, Optomed Sweden Filial. The parent company of the group,
Optomed Plc, is responsible for, among other things, the management of the
group as well as nance and accounting functions, human resources, legal af-
fairs and corporate communication. The parent company is responsible for the
Devices segment operations, while the Software segment operations are car-
ried out through Optomed Software Oy. In addition to Finland, Optomed ope-
rates in China and the USA through its subsidiaries. The main responsibilities of
the foreign subsidiaries are local sales and distribution channel management,
product registration as well as the launching of new products, brand building,
marketing, after-sales services, and repair services.
The following table presents the subsidiaries of the company along with respe-
ctive ownership shares on 31 December 2021
The USA subsidiary Optomed USA Inc. was established in early 2020. The China
subsidiary Shanghai Optomed Medical Consulting Ltd was closed in early 2020.
Shares and shareholders
The company has one share series with all shares having the same rights. At the
end of the review period Optomed Plc’s share capital consisted of 14,003,144
shares and the company held 421,517 shares in the treasury which corresponds
to approximately 3.01 percent of the total amount of the shares and votes. Op-
tomed’s market capitalization was EUR 137.2 million at the of the review period.
Optomed’s shareholder structure was as follows at the year-end:
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59
Sector Number of shareholders % of shareholders Number of shares % of shares
Private companies 253 3.42 1,018,760 7.28
Financial and insurance institutions 18 0.24 3,040,492 21.71
Public sector organizations 3 0.04 728,353 5.20
Households 7,093 95.77 2,760,827 19.72
Non-prot instit serving households 11 0.15 50,995 0.36
Foreigners 19 0.26 13,800 0.10
Total 7,397 99.88 7,613,227 54.37
Nominee registered 9 0.12 6,389,917 45.63
Total shares 14,003,144 100
Number of shares Shareholders % Shares %
1 - 100 3,219 43.46 158,061 1.13
101 – 1,000 3,719 50.22 1,305,082 9.32
1,001 – 10,000 427 5.77 1,083,688 7.74
10,001 – 100,000 27 0.36 754,771 5.39
100,001 – 1,000,000 13 0.18 4,841,079 34.57
> 1,000,000 1 0.01 5,860,463 41.85
Total 7,406 100 14,003,144 100.00
Nominee registered 9 0.12 6,389,917 45.63
Number of shares issued 14,003,144 100
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60
Shareholder Shares % of shares
1
* Skandinaviska Enskilda Banken Ab (publ)
Helsinki Branch
5 860 463 41,85
2 Aktia Capital Mutual Fund 635 521 4,54
3 Suomen Teollisuussijoitus Oy 601 080 4,29
4 OP-Finland Micro Cap 475 000 3,39
5 * Citibank Europe Plc 463 518 3,31
6 OP-Finland Small Cap 437 524 3,12
7 Optomed Oyj 421 517 3,01
8 Mandatum Life Insurance Company Ltd. 410 922 2,93
9 Nordea Nordic Small Cap Fund 367 526 2,62
10 Kaleva Mutual Insurance Company 322 044 2,3
10 largest shareholders total 9 995 115 71,38
on which nominee registered 6 323 981 45,16
Others 4 008 029 28,62
Total 14 003 144 100
*Nominee register
At the end of the review period, Optomed’s Chairman and Members of the
Board of Directors controlled 15,574 shares, representing approximately 0.11
percent of the total number of all shares and 0.11 percent of all shares exclu-
ding shares in treasury. The CEO and management team owned 187,080 sha-
res and 488,000 options. Additional information with regards to the sharehol-
ding of the board and the management is available at the company’s corporate
governance statement.
Flagging notifications
Under the provisions of the Finnish Securities Markets Act, shareholders of
listed companies have an obligation to notify both the Finnish Financial Su-
pervision Authority and the listed company of changes in their holdings when
crossing predened thresholds. In 2021, Optomed received the following ma-
jor shareholder notications:
On 17 February 2021, the total holdings of treasury shares held by Optomed
Plc decreased to 4.61 per cent of all the registered shares.
On 8 April 2021, the total holdings in Optomed shares and votes held by
OP-Rahastoyhtiö Oy increased to 5.46 per cent of all of the registered shares
in Optomed.
On 28 April 2021, the total holdings in Optomed shares and votes held by BI
Asset Management Fondsmægler-selskab A/S increased to 5.69 per cent of all
of the registered shares in Optomed. On 25 May 2021, the total holdings in
Optomed shares and votes held by Robert Bosch Venture Capital GmbH dec-
reased to below 5.00 per cent of all of the registered shares in Optomed.
Additionally, the total holdings of treasury shares held by Optomed Plc decrea-
sed to 4.61 per cent of all of the registered shares in Optomed on 17 February
2021.The company is not aware of the existence of any Shareholders’ agree-
ments and it is not controlled by anyone. Additional information with respect
to the shares, shareholding and trading can be found on the company’s websi-
te www.optomed.com.
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61
Optomed’s shares were listed on Nasdaq Helsinki stock exchange on 5.12.2019
Group Share Indicators 2021 2020 2019
Earnings per share -0.32 -0.24 -0.32
Equity per share 1.34 1.51 1.72
Dividend per share - - -
Dividend % of earnings - - -
eective dividend yield % - - -
P/E ratio -31.00 -31.05 -19.70
Share price performance, share issue adjusted *
Lowest share price 7.25 2.92 4.53
Highest share price 18.90 7.57 7.52
Average share price 10.62 5.33 6.13
Closing share price 9.80 7.22 6.34
Market value of shares at end of period 137,231 101,103 88,780
Weighted average adjusted number of shares during the nancial period 13,390,702 13,262,766 8,935,654
Weighted average adjusted number of shares in the end of nancial year 13,441,437 13,262,766 13,262,766
Authorizations
The Annual General Meeting 2021 approved the authorization for the Board of
Directors to accept as pledge and repurchase of Optomed’s own shares. Altoget-
her no more than 1,400,314 shares may be repurchased or accepted as pledge.
The authorization will be valid until the earlier of the end of the next Annual Ge-
neral Meeting or 18 months from the resolution of the Annual General Meeting.
The Annual General Meeting 2021 authorized the Board of Directors to decide on
the issuance of shares as well as the issuance of options and other special rights
entitling to shares referred to in chapter 10 section 1 of the Finnish Companies
Act. The number of shares to be issued based on this authorization may not
exceed 1,400,314. The Board of Directors is authorized to resolve on all terms
and conditions of the issuance of shares and special rights entitling to shares,
including the right to derogate from the pre-emptive right of the shareholders.
The authorization will be valid until the earlier of the end of the next Annual Ge-
neral Meeting or 18 months from the resolution of the Annual General Meeting.
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62
Calculation of share indicators
Option programs
Optomed has established several option programs as incentive programs co-
vering employees, managing directors and consultants of the group.
Optomed’s amended option programs are described below.
Each option entitles its owner to subscribe for one (1) new, or if the company’s
Board of Directors so decides, existing A share in the company or if the company
would only have one class of shares, as is the case following the Listing, such
shares. The share subscription prices, and the exercise periods are set out in
the terms and conditions of the options.
The dividend right of the new shares and other shareholder rights will commence
after the shares upon exercise of the relevant option are recorded into the Trade
Earnings per share Net result / Number of outstanding shares
Equity per share Shareholders’ equity / adjusted number of shares at the end of the nancial period - own shares
Dividend per share Total dividend / adjusted number of shares at the end of the nancial period - own shares
Dividend, % of earnings Dividends per share / earnings per share × 100
Eective dividend yield, % Dividend per share x 100 / adjusted share price at the end of the nancial period
P/E ratio Earnings per share / market value per share
Register, or if existing shares of the company are being issued, upon comple-
tion of the transfer of the share provided that the transfer has been fully paid.
The options are forfeited and automatically transferred to the company without
consideration if the employment or service relationship to the group is termi-
nated, for any reason whatsoever, or if the consulting agreement regarding
the option holder’s work performed for the group is terminated for any reason
whatsoever, unless the Board of Directors decides to deviate from the main rule.
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63
Program Subscription price (EUR) Exercise Period Outstanding options at the end of 2021
2015 3.5 1 July 2020 – 1 July 2024 125,000
2017 3.5 1 July 2020 – 1 July 2024 139,300
2017B 3.5 1 July 2020 – 1 July 2022 34,800
2018C 3.5 (50%) 1 July 2020 – 31 December 2024 187,800
(50%) 1 July 2021 – 31 December 2024
2019A 3.5 1 July 2021 – 31 December 2024 66,000
2019B 3.5 (40%) 1 July 2020 – 31 December 2024 100,000
(20%) 1 September 2020 – 31 December 2024
(40%) 1 September 2021 – 31 December 2024
2019C 3.5 (50%) 1 July 2020 – 31 December 2024 20,000
(50%) 1 September 2020 – 31 December 2024
2019D 5 1 January 2023 – 31 December 2023 72,000
2020A 3.5 1 January 2023 – 31 December 2023 110,000
Total 854,900
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64
Decisions of the annual general meeting
The Annual General Meeting held on 28 April 2021 adopted the nancial state-
ments for the nancial period ended on 31 December 2020 and the remune-
ration report for governing bodies and discharged the members of the Board
of Directors and the CEO from liability for the nancial period ended on 31
December 2020.
The Annual General Meeting resolved in accordance with the proposal of the
Board of Directors that no dividend will be paid for the year 2020.
The number of members of the Board of Directors was conrmed as ve:
• Seppo Mäkinen, Petri Salonen, Reijo Tauriainen and Anna Tenstam were
re-elected as members of the Board
• Xisi Guo was elected as a new member of the Board.
The Annual General Meeting conrmed the annual Board remuneration as follows:
• Chairman of the Board EUR 36,000
• members of the Board EUR 18,000.
In addition, a meeting fee in the amount of EUR 500 is paid to the Chairman
of the Audit Committee for each Audit Committee meeting. 40 percent of the
Board remuneration is paid in Optomed shares and 60 percent in cash. The
remuneration will be paid once a year in August, after Optomed’s H1 report
has been announced.
The Annual General Meeting decided to elect KPMG Oy Ab, a rm of authorized
public accountants, as the Company’s auditor. KPMG Oy Ab has informed the
Company that Authorized Public Accountant Tapio Raappana will continue as
the auditor with principal responsibility. Auditor’s remuneration will be paid in
accordance with an invoice approved by the Company.
The General Meeting approved the authorization for the Board of Directors to
repurchase Optomed’s own shares and to accept them as pledge. Altogether
no more than 1,400,314 shares may be repurchased or accepted as pledge. The
authorization will be valid until the earlier of the end of the next Annual Gene-
ral Meeting or 18 months from the resolution of the Annual General Meeting.
The General Meeting authorized the Board of Directors to decide on the issuance
of shares as well as the issuance of option rights and other special rights en-
titling to shares referred to in Chapter 10, Section 1 of the Finnish Companies
Act. The number of shares to be issued based on this authorization may not
exceed 1,400,314. The Board of Directors is authorized to resolve on all terms
and conditions of the issuance of shares and special rights entitling to shares,
including the right to derogate from the pre-emptive right of the shareholders.
The authorization will be valid until the earlier of the end of the next Annual Ge-
neral Meeting or 18 months from the resolution of the Annual General Meeting.
At its meeting held after the Annual General Meeting, the Board of Directors
elected from among its members Petri Salonen as its Chairman. The committee
members were elected as follows:
Audit Committee:
• Reijo Tauriainen (Chairman)
• Seppo Mäkinen
• Anna Tenstam
Remuneration Committee:
• Seppo Mäkinen (Chairman)
• Reijo Tauriainen
• Anna Tenstam
Risks and uncertainties
COVID-19 coronavirus
The COVID-19 outbreak has turned into a pandemic the length and prolonged
eect of which are uncertain.
The company’s software segment has been proven to be largely unaected due
to recurring nature of the business and long-term customer agreements, howe-
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ver, the Devices segment sales have been negatively aected by the pandemic.
The medical sector as a whole is still concentrated on addressing the pandemic
and other supplier meetings and purchases are still postponed in certain key
markets. This has an eect on the company’s ability to sell its devices and new
software solutions and aects the Company’s ability to increase its customer
base especially because face-to-face meetings are market standard for fundus
camera sales. Optomed recognizes the risk of a prolonged pandemic which may
cause additional restrictions and other negative eects globally. The company
has taken precautions to protect its currently strong cash position
High quality products
The quality and safety of the Company’s products are extremely important for
competitiveness.
The Company may be adversely aected if it fails to continuously develop and
update its fundus cameras and software solutions or to identify or integrate
new products and product platforms into its oering. The Company’s or its
partners products may also be subject to clinical trials, the results of which are
critical for the products’ regulatory approvals and market acceptance.
Strategy and M&A
The company may be unsuccessful in fullling its strategy or the strategy itself
may be unsuccessful.
The successful implementation of the company’s strategy depends upon several
factors, some of which are completely or partially outside the company’s control.
The company has an appropriate risk management function in the context of
the size of the company’s operations, however, it may not be able to identify or
monitor all relevant risks and determine ecient risk management procedures
and responsible persons that may again aect the strategy. The company is also
dependent on its ability to develop and manage varying routes-to-market for its
products, the eciency of its sales channels and its customer and distributor
relationships. Further, the company has an opportunistic view on M&A which
by nature include inherent risks. Fail ure of strategy may force the company to
record write-downs on its goodwill
Market and competition
The company operates in a market that is highly competitive.
Optomed operates in the fundus camera market that is developing fast and
the competition is sometimes erce. The market acceptance of the company’s
products and solutions is important for its future growth. Optomed recognizes a
possibility of new market changing products entering the market. Further, in certain
key geographies Optomed’s client base is limited and, therefore, a loss of a key
customer in a key market may adversely aect the Company’s revenue streams.
External economic and political risks and natural disasters
Optomed operates globally and is thus exposed to various external risks.
The Company is exposed to natural disasters taking place in countries where
it operates and general and country specic economic political and regulatory
risks, which could entail volatile sales in key markets. In the PRC, “Made in China
2025” national strategic plan may have an eect on medical device manufactu-
rers’ sales to the public sector.
Supply chain
Optomed’s business is dependent on the eectiveness of purchasing materials,
manufacturing and timely distribution.
The Company is dependent on contract manufacturers for functioning, ecient
and eective production and product assembly. Further, the Company is depen-
dent on suppliers which may aect the Company’s ability to supply its customers
in a timely manner. Global component sourcing issues make it harder to obtain
the key components for the Company’s medical devices.
Systems and information
Optomed’s operations are increasingly dependent on IT systems.
Disruption of the company’s IT systems could inhibit the business operations in
a number of ways, including disruption to nancial reporting, sales, production
and cash ows.
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Litigation
Optomed operates globally and pursues double digit annual organic growth in
medium term.
Optomed may not always be able to reach the best contractual terms with sta-
keholders. The company may be negatively aected by legal or administrative
proceedings directed at the company or third parties due to back-to-back liabi-
lity, or other disputes and claims including product liability, especially in terms
of medical devices, and intellectual property rights related items.
Trade secrets and patents
The technological capabilities are a competitive advantage that the company
must be able to protect.
The company may not be able to protect its trade secrets and know-how which
could lead to losing the competitive advantage the company has. At the same
time, the company may be forced to take actions against parties that violate
Optomed’s IPRs.
Talent & organisation
A skilled workforce and agile organisation are essential for the continued success
of the business.
The company may be adversely aected if it would lose its key personnel or fails
to attract the right talent.
Finance
The company needs external nancing to operate and is not currently protable.
The Company is dependant on external nancing and the Company may have
diculties accessing additional nancing on competitive terms or at all which
may again contribute the Company’s liquidity risks. The Company is also subject
to credit and counterparty risks through its trade receivables. The Company’s
receivables in China have increased and Optomed has a large credit risk concent-
ration related to a major Chinese customer whose payments are late. The pay-
ments from the customer continue but materially slower than originally agreed.
Forex
Optomed operates globally and is thus exposed to currency exchange risks.
The company is exposed to foreign exchange rate risks arising from uctua-
tions in currency exchange rates, especially with regards to USD, EUR and RMB.
Currency rates, along with demand cycles, can result in signicant swings in
the prices of the raw materials needed to produce the Company’s goods, sales
prices and OPEX.
Legal and regulatory
Compliance with laws and regulations is an essential part of Optomed’s business
operations.
Optomed and its’ suppliers and distributors operate globally and are subject to
various national and regional regulations in the areas of medical devices, pro-
duct safety, product claims, data protection, intellectual property rights, health
and safety, competition, employment, taxes and anti-money laundering and
anti-bribery & corruption (AML & ABC). Furthermore, many of the company’s
devices are subject to various medical related assessment (including clinical
trials), clearance and approval processes that are required to introduce the
Company’s products on the markets.
Failure to comply with the regulations might lead to loss of sales permits in
dierent markets, product recalls, reputational issues, civil and criminal actions
leading to various direct and indirect damages to Optomed and its employees
that are not completely covered by Optomed’s insurance coverage. Especially,
failures with respect to compliance with certain medical devices related regula-
tions and processes may hinder the company’s devices market access.
DISPUTES
The company is not currently involved in any disputes or trials that would have
a signicant impact on the group’s nancial position.
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Major events after the review period
On 25 January 2022, Optomed announced the proposal of the Nomination Board
to the next Annual General Meeting.
The Nomination Board proposed that Simon Guo, Seppo Mäkinen, Petri Salonen,
Reijo Tauriainen and Anna Tenstam are re-elected as Board members.
On 7 February 2022, Optomed announced the results from the prospective,
multi-center clinical trial intended to assess its handheld fundus camera Aurora
together with AEYE Health’s AI for autonomous detection of more than mild
diabetic retinopathy (mtmDR). Among patients positive for mtmDR, the combined
product, Aurora AEYE detected 91,9 percent (sensitivity), while patients without
the eye disease were correctly identied 93,6 percent of the time (specicity).
The observed imageability was over 99 percent.
The board’s proposal for the
distribution of profit
The parent company’s non-restricted equity on 31 December 2021, was EUR
17,844,289.15 and the net loss for the nancial year was EUR 2,208,466.18. The
Board of Directors proposes to the Annual General Meeting that no dividend
will be paid and the non-restricted equity on the outstanding 14,003,144 shares
shall be retained and carried forward.
Outlook 2022
Optomed expects its full year 2022 revenue to grow compared to 2021.
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Consolidated income statement
In thousand of euro Note Jan 1 - Dec 31, 2021 Jan 1 - Dec 31, 2020
Revenue 2, 3 14,850 13,011
Other operating income 4 810 157
Materials and services 5 -5,102 -4,213
Employee benet expenses 6 -8,702 -7,319
Depreciation, amortisation and impaiment losses 8 -2,778 -2,173
Other operating expenses 7 -3,858 -2,369
Operating result -4,780 -2,906
Finance income 8 715 452
Finance expenses 8 -263 -794
Net nance expenses 453 -341
Loss before income taxes -4,327 -3,247
Income tax expense 10 78 70
Loss for the nancial year -4,249 -3,177
Loss for the nancial year attributable to
Owners of the parent company -4,249 -3,177
Loss per share attributable to owners of the parent company
Basic loss per share (euro) 11 -0.32 -0.24
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Consolidated comprehensive income statement
In thousand of euro Jan 1 - Dec 31, 2021 Jan 1 - Dec 31, 2020
Loss for the nancial year -4,249 -3,177
Other comprehensive income
Items that may be subsequently reclassied to prot or loss
Foreign currency translation dierence
-253 77
Other comprehensive income for the nancial year, net of tax -253 77
Total comprehensive income for the nancial year -4,502 -3,100
Total comprehensive loss attributable to
Owners of the parent company
-4,502 -3,100
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Consolidated balance sheet
In thousand of euro Note Jan 1 - Dec 31, 2021 Jan 1 - Dec 31, 2020
ASSETS
Non-current assets
Goodwill 4,256 4,256
Development costs 6,338 5,667
Customer relationships 1,386 1,608
Technology 636 738
Other intangible assets 358 485
Total intangible assets 12 12,975 12,753
Tangible assets 13 433 359
Right-of-use assets 14 1,205 1,165
Deferred tax assets 10 13 11
Total non-current assets 14,626 14,289
Current assets
Inventories 15 2,936 2,539
Trade receivables 16.21 3,658 2,639
Other receivables 17 973 998
Cash and cash equivalents 16 6,804 10,608
Total current assets 14,371 16,784
Total assets 28,998 31,073
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In thousand of euro Note Jan 1 - Dec 31, 2021 Jan 1 - Dec 31, 2020
LIABILITIES
Non-current liabilities
Borrowings from nancial institutions 19.21 3,813 3,520
Government loans 19.21 1,940 2,670
Lease liabilities 14.19 818 782
Deferred tax liabilities 10 463 540
Total non-current liabilities 7,034 7,512
Current liabilities
Borrowings from nancial institutions 19.21 1,071 0
Government loans 19.21 193 328
Lease liabilities 14.19 396 425
Trade payables 19 944 595
Other payables 20 2,308 2,141
Total current liabilities 4,912 3,489
Total liabilities 11,946 11,001
Total equity and liabilities 28,998 31,073
In thousand of euro Note Jan 1 - Dec 31, 2021 Jan 1 - Dec 31, 2020
EQUITY
Share capital
Share premium
Reserve for invested non-restricted equity
Translation dierences
-88 166
Retained earnings
-17,721 -14,970
Prot (loss) for the nancial year
-4,249 -3,177
Total equity
18 17,052 20,073
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Consolidated cash ow statement
In thousand of euro Note Jan 1 - Dec 31, 2021 Jan 1 - Dec 31, 2020
Cash ows from operating activities
Loss for the nancial year -4,249 -3,177
Adjustments:
Depreciation, amortisation and impairment losses 7 2,689 2,173
Finance income and nance expenses 9 -472 343
Other adjustments 992 284
Cash ows before change in net working capital -1,041 -377
Change in net working capital:
Change in trade and other receivables (increase (-) / decrease (+)) -1,409 496
Change in inventories (increase (-) / decrease (+)) -340 -83
Change in trade and other payables (increase (+) / decrease (-)) -22 -2,402
Cash ows before nance items -2,811 -2,367
Interest paid -66 -75
Other nance expenses paid -64 -725
Interest received 1 366
Net cash from operating activities (A) -2,940 -2,801
Cash ows from investing activities
Capitalization of development expenses 12 -2,112 -1,553
Acquisition of tangible assets 13 -462 -268
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Net cash from (used in) operating, investing and
nancing activities (A+B+C)
-3,876 -8,319
Net increase (decrease) in cash and cash equivalents -3,876 -8,319
Cash and cash equivalents at January 1 10,608 18,866
Eect of movements in exchange rate on cash held 73 61
Cash and cash equivalents at December 31 16 6,804 10,608
Net cash used in investing activities (B) -2,574 -1,820
Cash ows from nancing activities
Proceeds from share subscriptions 18 1,012 92
Proceeds from loans and borrowings 19 1,366 -167
Repayment of loans and borrowings 19 -327 -3,233
Repayment of lease liabilities 14.19 -414 -390
Net cash from nancing activities (C) 1,637 -3,698
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Consolidated statement of changes in equity
Equity attributable to owners of the parent company
In thousand of euro Note
Share
Capital
Share
Premium
Reserve for
invested
non-restricted
Translation
dierences
Retained
earnings
Total
Balance at January 1, 2021 80 504 37,470 166 -18,147 20,073
Comprehensive income
Loss for the nancial year -4,249 -4,249
– translation dierences -253 -253
Total comprehensive income for
the nancial year
- - - -253 -4,249 -4,502
Transactions with owners of the
company
Share options 6 - - 1,055 - 340 1,395
Total transactions
with owners of the company
- - 1,055 - 340 1,395
Other adjustments
Balance at December 31, 2021 18 80 504 38,526 -88 -21,970 17,052
Other adjustments line is about group elimination booking correction that is related to previous years
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In thousand of euro Note
Share
Capital
Share
Premium
Reserve for
invested
non-restricted
Translation
dierences
Retained
earnings
Total
Balance at January 1, 2020 80 504 37,341 89 -15,376 22,637
Comprehensive income
Loss for the nancial year - - - - -3,177 -3,177
– translation dierences - - - 77 77
Total comprehensive income for
the nancial year
- - - 77 -3,177 -3,100
Transactions with owners of the
company
Share issue 18 - - - - - -
Share options 6 - - 129 - 406 535
Total transactions
with owners of the company
- 0 129 - 406 535
Balance at December 31, 2020 18 80 504 37,470 166 -18,147 20,073
Equity attributable to owners of the parent company
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Notes to the consolidated
financial statements
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1. Corporate information and basis
of accounting
1.1 Corporate information
Optomed is a Finnish medical technology group (hereafter ‘Optomed’ or ‘Group’)
that specialises in hand-held fundus cameras and solutions for screening of
The Group’s parent company, Optomed Plc. (hereafter the ‘Company’) is a
Finnish public limited liability company established under the laws of Finland ,
and its business ID is 1936446-1. It is domiciled in Oulu , Finland and the Com-
pany’s registered address is Yrttipellontie 1, 90230 Oulu, Finland .
The Board of Directors of Optomed Plc approved these consolidated nancial
statements for issue. According to the Finnish Limited Liability Companies’ Act,
the shareholders have the right to approve or reject the nancial statements
in the Annual General Meeting held after the publication of the nancial state-
ments. Furthermore, the Annual General Meeting can decide on modications
to be made to the nancial statements.
1.2 Basis of accounting
Optomed’s consolidated nancial statements are prepared in accordance with
International Financial Reporting Standards (IFRS) as adopted by the European
Union and in force as at December 31, 2021. In the EU IFRS are standards and
their interpretations adopted in accordance with the procedure laid down in
regulation (EC) No 1606/2002 of the European Parliament and of the Council.
Optomed has consistently applied these policies to all the years presented
(2020-2021), unless otherwise stated.
General policies applied that relate to the consolidated nancial statements as
a whole are described in this section 1.2. Accounting policies that are specic to
a component of the nancial statements, together with descriptions of manage
-
ment judgements, related estimates and assumptions, have been incorporated
into the relevant note.
The consolidated nancial statements are prepared on a historical cost basis,
except for the following that are measured at fair value (refer to 1.2.3 Measu-
rement of fair values below):
— share-based payments
The nancial year of Optomed is the calendar year. The gures in the nancial
statements are mainly presented in thousands of euro. All gures presented have
been rounded, and consequently the sum of individual gures may deviate from
the presented aggregate gure. Key gures are computed using exact gures.
1.2.1 Consolidation
The consolidated nancial statements incorporate the nancial statements of
the parent company Optomed Plc. and of all those subsidiaries over which the
parent company has control at the end of the reporting period. Optomed cont-
rols an entity when Optomed is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to aect those returns
through its power to direct the activities of the entity. Acquired subsidiaries are
consolidated from the date on which control is transferred to Optomed until
control ceases. Refer to Note 23. Related party transactions for disclosures on
the Group structure.
Intra-group transactions, receivables, liabilities and unrealized margins, as well
as distribution of prots within the Group, are eliminated in preparing the con-
solidated nancial statements. Optomed had no non-controlling interests (NCI)
during the nancial years in the report
Acquired or established subsidiaries are accounted for by using the acquisition
method.
1.2.2 Foreign currency transactions and balances
Items included in the nancial statements of each subsidiary are measured
using the currency of the primary economic environment in which the company
operates (‘the functional currency’). The consolidated nancial statements are
presented in Euro, which is the functional and presentation currency of the
parent company.
For those subsidiaries with non-Euro functional and presentation currency, the
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income and expenses for the income statement and comprehensive income sta-
tement, and the items for cash ow statement, are translated into Euro using the
average exchange rates of the reporting period. The assets and liabilities for the
balance sheet are translated using the exchange rates prevailing at the reporting
date. The translation dierences arising from the use of dierent exchange rates
explained above are recognized in consolidated other comprehensive income.
Any goodwill arising on the acquisition of foreign operations and any fair value
adjustments to the carrying amounts of assets and liabilities arising on the
acquisition of those foreign operations are treated as assets and liabilities of
those foreign operations. They are translated into Euro using the exchange rates
prevailing at the reporting date. When a foreign operation is sold, or is otherwise
partially or completely disposed of, the translation dierences accumulated in
equity are reclassied in prot or loss as part of the gain or loss on the transaction.
1.2.3 Measurement of fair values
Fair value is the price that would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market participants at the measure-
ment date. A number of the Group’s accounting policies and disclosures require
the measurement of fair values, for both nancial and non-nancial assets and
liabilities. When measuring the fair value of an asset or a liability, the Group
uses observable market data as far as possible. Fair values are categorised into
dierent levels in a fair value hierachy based on the inputs used in the valuation
techniques as follows:
— Level 1: quoted prices (unadjusted) in active markets for identical assets or
liabilities.
— Level 2: inputs other than quoted prices included in Level 1 that are observable
for the asset or liability; either directly
(i.e. as prices) or indirectly (i.e. derived from prices).
— Level 3: inputs for the asset or liability that are not based on observable
market data (unobservable inputs).
Specic valuation techniques used in fair value measurement include:
— Share-based payments – Black-Scholes option pricing model (Note 6.4 Sha-
re-based payment plans )
1.2.4 Operating result
Optomed has determined operating result to be a relevant subtotal in unders-
tanding the Group’s nancial performance. However, IFRS does not dene the
concept of operating result. The Group has dened it as follows: operating
result is the net amount attained when revenues are added by other operating
income, less:
— purchase expenses, adjusted with change in inventories
— employee benet expenses
— depreciation, amortisation and any impairment losses, and
— other operating expenses.
All other items are presented below operating result in the income statement.
1.2.5 Non-current assets held for sale
Non-current assets (or disposal groups) are classied as held for sale, if their
carrying amounts are to be recovered principally through a sale transaction
rather than through continuing use. From the date of classication, these assets
(or disposal groups) are measured at the lower of their carrying amounts and
fair value less the costs to sell, and the recognition of depreciation or amorti-
sation is discontinued.
1.2.6 Critical management judgments and related
estimates and assumptions
The preparation of nancial statements under IFRS requires management to
make judgments, estimates and assumptions that aect the reported amounts
of assets and liabilities, and disclosure of contingent assets and liabilities at the
end of the reporting period as well as the reported amounts of income and
expenses during the reporting period. These estimates and assumptions are
based on historical experience and other justied assumptions, such as future
expectations, that Optomed management believes are reasonable under the
circumstances at the end of the reporting period and the time when they were
made.
Although these estimates are based on management’s best knowledge of current
events and actions, actual results may ultimately dier from those estimates.
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The estimates and underlying assumptions are reviewed on an on-going basis
and when preparing nancial statements. Changes in accounting estimates may
be necessary if there are changes in the circumstances on which the estimate
was based, or as a result of new information or more experience. Such changes
are recognized in the period in which the estimate or the assumption is revised.
Use of judgment and estimates
Judgements that management has made in the process of applying accounting
policies and that have the most signicant eect on the amounts recognised in
the nancial statements, relate to the following areas:
— capitalisation of development costs: determination of development expen-
diture eligible for capitalisation (Note 12. Intangible assets )
— leases: determination of lease term (Note 14. Leases )
Assumptions and estimation uncertainties that have a signicant risk of resulting
in a material adjustment to the carrying amounts of assets and liabilities within
the next nancial year are the following:
— Determining trade receivables credit risk (Note 21. Financial risk management)
— goodwill impairment testing (Note 12. Intangible assets )
— capitalisation of development expenditures
(Note 12. Intangible assets )
— Development expenditures impairment testing
(Note 12. Intangible assets)
1.2.7 Adoption of IFRS agenda decision
IFRS nalized in April 2021 its agenda decision Conguration or Customisation
Costs in a Cloud Computing Arrangement (IAS 38 Intangible Assets). In this
agenda decision IFRS IC considered, whether, applying IAS 38, the customer
recognises an intangible asset in relation to conguration or customisation of
the application software, and if an intangible asset is not recognized, how the
customer accounts for the conguration or customisation costs. IFRIC agenda
decisions have no eective date, so they are expected to be applied as soon
as possible. As the Group has cloud computing arrangements in place, it has
analysed, that this agenda decision has an impact to the accounting policies
applied to implementation costs in cloud computing arrangements.
1.2.8 Adoption of new and amended standards in future
nancial years
Eective for nancial years beginning on or after January 1, 2023:
Amendments to References to Conceptual Framework in IFRS Standards: The
revised Framework codies IASB’s thinking adopted in recent standards. The
Conceptual Framework primarily serves as a tool for the IASB to develop stan-
dards and to assist the IFRS Interpretations Committee in interpreting them. It
does not override the requirements of individual IFRSs.
Other amendments and interpretations are not expected to have an impact on
the consolidated nancial statements when adopted.
2. Segment reporting
2.1 Accounting policy
An operating segment is a component of the Group that engages in business
activities from which it may earn revenues and incur expenses and for which
discrete nancial information is available. Optomed has two reportable segments,
Devices and Software.
Software segment oers products for optimal management of various screening
operations as well as IT solutions and services for storing, viewing and working
with medical images. Also professional IT consulting services for government
institutions are included in this segment. Currently it comprises own screening
solution products for diabetic retinopathy and breast, cervical and bowl cancer
screening management as well as Sectra software solutions and articial intel-
ligence algorithms.
The Devices segment develops, manufactures and sells Optomed fundus cameras
for use by ophthalmologists, pediatricians, endocrinologists, neurologists and
primary care professionals. Currently Devices segment comprises all Optomed
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branded camera products, such as Optomed Smartscope Pro, Optomed Aurora
and Optomed Polaris cameras. Products for OEM customers, Pictor Plus and
Pictor Prestige (Volk), Visuscout 100 (Zeiss), Fundus Module 300 (The Haag-Streit)
and Signal (Topcon) are included in the Devices segment
In Optomed Group the CEO has been identied as being the chief operating
decision maker responsible for assessing performance of the segments and
making resource allocating decisions. The segment disclosures presented are
based on the internal management reporting. Optomed has not aggregated
operating segments into reportable segments.
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2021
2.2 Reportable segments
In thousand of euro Devices Software Group Admin Group, Total
External revenue 5,839 9,011 0 14,850
Net operating expenses -1,700 -2,592 0 -4,292
Margin 4,139 6,420 0 10,558
Depreciation and amortisation -2,168 -608 -2 -2,778
Other expenses -5,153 -4,565 -2,843 -12,561
Operating result -3,182 1,247 -2,844 -4,780
Finance items 0 0 453 453
Loss before tax expense -3,182 1,247 -2,392 -4,327
Segment assets 11,974 7,568 241 19,784
Capital expenditure 2,176 197 36 2,409
Segment liabilities 613 400 113 1,126
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2020
In thousand of euro Devices Software Group Admin Group, Total
External revenue 5,097 7,913 0 13,011
Net operating expenses -2,235 -1,820 0 -4,055
Margin 2,862 6,093 0 8,955
Depreciation and amortisation -1,569 -603 0 -2,173
Other expenses -3,112 -4,167 -2,408 -9,688
Operating result -1,820 1,323 -2,408 -2,906
0 0 -341 -341
Loss before tax expense -1,820 1,323 -2,749 -3,247
Segment assets 10,205 7,836 221 18,263
Capital expenditure 1,510 291 21 1,822
Segment liabilities 452 232 89 774
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Devices segment sells medical imaging tools and solutions to distributors. The
agreements with distributors are frame agreements. An enforceable contract
is created based on each purchase order combined with the frame agreement.
Typical sales agreements for the Software segment include maintenance ser-
vice agreements, resource hiring agreements, service portal agreements and
software package agreements.
For medical imaging tools and solutions each product in a purchase order forms
a separate performance obligation as:
— the distributor can benet from the good on its own, and
— the promise to transfer the good to the customer is separately identiable
from other promises in the contract.
Extended warranty may be sold separately, it is also a separate performance
obligation.
For Software segment:
— A maintenance contract has one performance obligation containing overall
service for the period agreed upon.
— A resource hiring contract is based on hourly fee. Each hour of consulting
service is a separate performance
obligation.
— A service portal agreement includes following separate performance obliga-
tions: implementation, additions for
new service providers, recongurations and continuous service provided.
— A software package agreement includes following separate performance
obligations: licences, implementation and
continuous maintenance service.
Transaction prices in the contracts are mostly xed. Some contracts may, however,
include a minimum amount for transactions in a certain period, for example. The
variable fee is constrained to the amount for which it is highly probable that a
signicant reversal will not occur subsequently. The terms of payment applied
vary to some extent geographically and in dierent business areas, but the term
of payment provided is nonetheless always clearly less than a year. Consequently,
contracts do not include a signicant nancing component.
2.3 Geographic information
In presenting the geographic information, segment assets were based on
the geographic location of the assets. Segment assets are measured in the
same way as in the IFRS nancial statements.
Disaggreration of consolidated revenue by geographical market is disclosed in
Note 3.2 Disaggregation of revenue.
2.4 Major customers
The Group’s revenues from two major customers in the nancial years 2021-2020
were approximately as follows: from one customer EUR 2,4 million (2021), and
EUR 2.1 million (2020), and from another customer EUR 1,4 million (2021) and
EUR 1,4 million (2020).
3. Revenue
3.1 Accounting policy
Optomed recognises revenue to depict the transfer of promised goods or services
to customers in an amount that reects the consideration to which Optomed
expects to be entitled in exchange for those goods or services.
In thousands of euro 2021 2020
Finland 14,337 14,011
China 276 267
Total 14,613 14,278
Non-current assets
1
1 Group's non-current assets exclude nancial instruments and deferred tax assets. Optomed has no
dened benet pension plans and thus no related assets.
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In thousands of euro 2021 2020
Finland 8,939 60 % 7,777 60 %
China 2,165 15 % 2,443 19 %
Other 3,746 25 % 2,791 21 %
Total 14,850 100 % 13,011 100 %
Optomed allocates the transaction price for medical imaging tools and solutions
to performance obligations based their stand-alone selling prices using price
lists. For service portal and software package contracts the transaction price is
allocated based on costs incurred plus margin.
For Devices segment the revenues from sales of medical imaging tools and
solutions are recognised when the performance obligation is satised by tran-
sferring a promised good to the distributor, i.e. at a point in time. The control is
transferred when Optomed has present right to payment, signicant risks and
rewards of ownership have transferred to the distributor as well as the legal
title and physical possession of the products.
In respect of Software segment:
— Service revenues are recognised over time as the customer simultaneously
receives and consumes the benets
provided by Optomed’s performance.
— Revenues from implementation projects are recognised at a point in time
when the customer gets control and is able to
start using the end product.
— Licence revenues are recognised at the point in time when the customer gets
control. This is based on the nature of
licences, being to provide a right to use intellectual property of the Software
segment as that intellectual property
3.2 Disaggregation of revenue
In the following tables, consolidated revenue is disaggregated by geographical
market1 and timing of revenue recognition.
Trade receivables and related credit losses are described in Notes 16. Financial assets and 21.5 Liquity risk.
2021 2020
Products and services
transferred at a point
in time
11,267 76 % 9,934 76 %
Services transferred
over time
3,583 24 % 3,077 24 %
Total 14,850 100 % 13,011 100 %
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4. Other operating income
4.1 Accounting policy
Other operating income comprises income from activities outside the ordinary
business of Optomed. Examples include government grants, rental income and
gains from disposals of tangible and intangible assets.
The Group recognises a government grant only when:
— there is reasonable assurance that Optomed will comply with the conditions
attached to the grant, and
— the grant will be received.
Income-related grants are recognised in prot or loss over the periods necessary
to match them with the related costs that they are intended to compensate. They
are presented under the line item Other operating income. Asset-related grants,
such as government grants received for development purposes, are deducted
in arriving at the carrying amount of the assets. The grant is recognised over
the life of the asset as a reduced depreciation expense.
4.2 Assumptions and estimation uncertainties
During the nancial years 2021-2020 Optomed has received government grants
from various organisations, such as Business Finland (previously Tekes). The
most signicant grants for the years 2021, 2020 Optomed received from Busi-
ness Finland. 2021 operating income include Business Finland waived loan of
538 thousand EUR.
5.Materials and services
5.1 Breakdown of materials and services expense
The increased costs in 2021 are due to increased revenue and higher compo-
nent prices.
In thousands of euro 2021 2020
Other operating income 810 157
Total 810 157
In thousands of euro 2021 2020
Purchase expenses -5,153 -2,964
Change in inventories (increase (+),
decrease (-))
403 -967
External services
-352 -282
-5,102 -4,213
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6. Employee benefits
6.1 Accounting policy
Employee benets include the following:
a) short-term employee benets b) post-employment benets
c) other long-term employee benets (no such benets were provided during
the nancial years 2020-2021)
d) termination benets, i.e. benets provided in exchange for the termination
of an employment
(no such benets were provided during the nancial years 2020-2021)
e) share-based payments (refer to Note 6.4 Share-based payment plans below).
a) Wages, salaries, fringe benets, annual leave and bonuses are included in
short-term employee benets. They are recognised in the period in which the
work is performed.
b) Post-employment benets are payable to employees after the completion of
employment. In Optomed, these benets are related to pensions. Pension cove-
rage of the Group is arranged through external pension insurance companies.
Pension plans are classied as either dened contribution or dened benet
plans. Optomed only has dened contribution plans. A dened contribution
plan is a pension plan under which Optomed pays xed contributions into a
separate entity. Optomed has no legal or constructive obligations to pay further
contributions if the fund does not hold sucient assets to pay all employees
the related benets. All other plans are classied as dened benet plans. The
contributions for dened contribution plans are recognized as employee be-
net expense in those periods to which they relate. Prepaid contributions are
recognized as an asset to the extent that a cash refund or a reduction in the
future payments is available.
c) Other long-term employee benets are all employee benets other than short-
term employee benets, post-employment benets and termination benets.
Examples include long-term paid absences such as sabbatical leave.
d) Termination benets are not based on work performance but on the termina-
tion of employment. These benets consist of severance payments. Termination
benets result either from the Group’s decision to terminate the employment or
the employee’s decision to accept the benets oered by Optomed in exchange
for the termination of employment. Such benets are recognised at the earlier
of: when Optomed can no longer withdraw the oer of the benets, and when
the Group recognises costs for a restructuring that involves the payment of
termination benets.
e) The Group has ve share-based incentive plans for the Group key personnel,
which are share option plans. The purpose of the plans is to encourage the emp-
loyees to work on a long-term basis in order to increase shareholder value, and
to commit the key employees to the company. The payments for the incentives
are made with equity instruments.
Share-based compensation is measured at the grant date and expensed using
the straight-line method in the income statement over the vesting period. The
expense determined at grant date is based on Optomed’s estimate of the num-
ber of share options to which it is assumed that rights will vest by the end of
the vesting period. The fair value is determined using the Black-Scholes pricing
model. The Group updates its estimate of the nal number of the share options
that will vest at each reporting date. Changes in this estimate are recognised
in the income statement. The options will be returned to Optomed in case the
employee leaves the Group before the subscription period has commenced.
There are no other vesting conditions.
When the option rights are exercised, the proceeds received are recognised in
accordance with the terms of the plan under Reserve for invested non-restricted
equity, net of any transaction costs.
36
87
6.2 Expenses recognised in prot or loss
2017: 139,300 Outstanding options on December 31.2021. Subcription price
EUR 3.50 per share. Subscription period July 1, 2020–July 1, 2024. Each option
right entitles its holder to subscribe for one new share. Up to 139,300 shares
can be subscribed for based on the option rights, corresponding to 1.0% of the
company’s share capital and votes.
2017B: 34,800 Outstanding options on December 31.2021. Subcription price
EUR 3.50 per share. Subscription period July 1, 2020–July 1, 2022. Each option
right entitles its holder to subscribe for one new share. Up to 34,800 shares
can be subscribed for based on the option rights, corresponding to 0.3% of the
company’s share capital and votes.
2018C:
187,800 Outstanding options on December 31.2021. Subcription price
EUR 3.50 per share. Subscription period (50%) July 1, 2020–December 31, 2024
and (50%) 1 July 2021–31 December 2024. Each option right entitles its holder to
subscribe for one new share. Up to 187,800 shares can be subscribed for based on
the option rights, corresponding to 1.4% of the company’s share capital and votes.
2019A: 66,000 Outstanding options on December 31.2021. Subcription price
EUR 3.50 per share. Subscription period July 1, 2021–December 31, 2024. Each
option right entitles its holder to subscribe for one new share. Up to 66,000
shares can be subscribed for based on the option rights, corresponding to 0.5%
of the company’s share capital and votes.
2019B: 100,000 Outstanding options on December 31.2021. Subcription price
EUR 3.50 per share. Subscription period (40%) July 1, 2020–December 31, 2024,
(20%) September 1, 2020–December 31.2024 and (40%) September 1, 2021–De-
cember 31, 2024 . Each option right entitles its holder to subscribe for one new
share. Up to 100,000 shares can be subscribed for based on the option rights,
corresponding to 0.7% of the company’s share capital and votes.
2019C: 20,000 Outstanding options on December 31.2021. Subcription price
EUR 3.50 per share. Subscription period (50%) July 1, 2020–December 1, 2024
and (50%) 1 September 2020–31 December 2024. Each option right entitles its
holder to subscribe for one new share. Up to 20,000 shares can be subscribed
for based on the option rights, corresponding to 0.1% of the company’s share
capital and votes.
6.3 Number of personnel
6.4 Share-based payment plans
Option programs in eect during the nancial year
2015: 125,000 Outstanding options on December 31.2021. Subcription price
EUR 3.50 per share. Subscription period July 1, 2020–July 1, 2024. Each option
right entitles its holder to subscribe for one new share. Up to 125,000 shares
can be subscribed for based on the option rights, corresponding to 0.9% of the
company’s share capital and votes.
In thousands of euro 2021 2020
Wages and salaries -7,053 -5,827
Contributions to dened contribution
post-employment plans
-1,047 -842
Other social security expenses -262 -245
Share-based payment plans -340 -406
Total -8,702 -7,319
2021 2020
Average number of employees for
the nancial year
115 105
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Key terms and measurement of option plans
Plan 2015 2017 2017B 2018C 2019A
Maximum number of options 250,000 210,000 58,000 266,000 84,000
Number of options issued 250,000 210,000 58,000 266,000 84,000
Issued 2015-2018 2017 2017 2018 2019
Vesting period 2015 - 2020 2017 - 2020 2017 - 2020 2018 - 2021 2019 - 2021
Vesting condition Employment Employment Employment Employment Employment
Option subscription price 3.50 3.50 3.50 3.50 3.50
Fair value at grant date 2.25 2.17 2.09 2.09 2.09
Total fair value (1,000 EUR) 562 455 121 556 175
Plan 2019B 2019C 2019D 2020A
Maximum number of options 100,000 20,000 72,000 150,000
Number of options issued 100,000 20,000 72,000 98,000
Issued 2019 2019 2019 2020
Vesting period 2019 - 2020 2019 - 2020 2019 - 2023 2020 - 2023
Vesting condition Employment Employment Employment Employment
Option subscription price 3.50 3.50 5.00 3.50
Fair value at grant date 2,02-2,09 2.02 1.69 2.97
Total fair value (1,000 EUR) 205 40 122 446
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89
The grant-date fair value of Optomed’s all option programs is determined using
the Black Scholes option pricing model that takes into account the following
key inputs:
— expected fair value of the underlying share EUR 5.0 - 6.5
— expected volatility 30 - 60 %
— the term of the option 1.3 - 3.7 years
In thousands of euro 2021 2020
Equity-settled share-based payments -340 -406
Changes in outstanding share options
Weighted average option subscription price during the 2021 was 3.50€ for
exercised options. Optomed average share price during the 2021 was 10.62€.
In case the share options issued are fully exercised, the number of outstanding
A shares will increase by 6.3 %. The subscription prices will be recorded in the
Reserve for invested non-restricted equity.
Expenses from share-based payment plans
Total expenses arising from share-based payment plans recognised as part of
employee benets were as follows:
7. Other operating expenses
7.1 Accounting policy
Optomed’s other operating expenses include:
— expenses other than the cost of goods sold, such as travel, marketing, IT and
oce expenses.
— losses on the disposal of tangible and intangible assets.
7.2 Breakdown of other operating expenses
Other operating expenses also comprise changes in expected credit losses and
realised credit losses. More info about credit loss acrual in 21.4. Credit risk and
counterparty risk
Pieces 2021 2020
Outstanding at January 1 1,167,000 1,140,000
Granted during the year 14,000 98,000
Forfeited during the year -17,000
Exercised during the year -309,100 -71,000
Expired during the year - -
Outstanding at December 31 854,900 1,167,000
Exercisable at December 31 672,900 740,000
In thousands of euro 2021 2020
Travel expenses -201 -222
Marketing expenses -674 -422
IT expenses -423 -353
Oce expenses -196 -168
Other administrative expenses -866 -714
Research and development expenses -412 -276
Credit loss accrual -710 80
Other xed expenses -377 -292
Total -3,858 -2,367
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7.3 Auditor’s fees
8. Depreciation, amortisation and
impaiment losses
8.1 Accounting policy
Depreciation and amortisation is the systematic allocation of the depreciable
amount of a tangible / an intangible asset over its useful life. Optomed generally
applies the straight-line method. An impairment loss is the amount by which the
carrying amount of an asset exceeds its recoverable amount. Refer to Notes 12.
Intangible assets and 13. Tangible assets.
8.2 Depreciation, amortisation and impaiment losses
by asset category
8.3 Impairment losses
The Group recognised impairment losses on intangible assets during nancial
year 2021 of 571 thousand euros and 160 in 2020. 2021 Impairment loss is
due to terminated product development programThere were no recognised
impairment losses on tangible assets during years 2020,20121
9. Finance income and expenses
The accounting policies for nancial assets and nancial liabilities are presented
in Note 16. Financial assets and 19. Financial liabilities.
Recognised through prot or loss
9.1 Finance income
In thousands of euro 2021 2020
Audit fees -120 -77
Tax advisory services 0 -23
Other services -19 -29
Total -139 -129
In thousands of euro 2021 2020
Intangible assets
Development costs -1,434 -1,014
Customer relationships -222 -222
Technology -102 -102
Other intangible assets -221 -129
Total -1,979 -1,467
In thousands of euro 2021 2020
Foreign exchange gains 562 364
Interest income 17 8
Other nance income 137 81
Total 715 452
In thousands of euro 2021 2020
Tangible assets
Machinery and equipment -390 -313
Total -390 -313
Total depreciation and
amortisation / owned assets
-1,779 -1,779
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91
9.2 Finance expenses
9.3 Borrowing costs - government loans
Optomed has capitalised under Development costs those borrowing costs in-
curred from the government loans (Business Finland) granted for development
activities, refer also to Note 19. Financial liabilities. The capitalisation rate used
to determine the amount of borrowing costs to be capitalised was 1 % for the
years 2021-2020, being the interest rate applicable to those loans during the
said annual periods.The capitalised costs amounted to EUR 20 thousand (2021)
and EUR 14 thousand (2020), which were recorded as a deduction to interest
expenses. Interest expenses in 2021, were aected by the Business Finland
waived loan of 538 thousand EUR.
10. Income taxes
10.1 Accounting policy
The income tax expense for the period consists of:
— current tax, and
— change in deferred tax assets and deferred tax liabilities.
Income tax is recognized in the income statement, except that the income tax
eects of items recognized in other comprehensive income or directly in equity
are similarly recognized in other comprehensive income or equity.
The current income tax charge is calculated on the basis of the taxable income
determined in accordance with the tax rates and laws enacted (or substantive-
ly enacted) in the countries where Optomed operates and generates taxable
income. Income taxes are adjusted with any taxes relating to previous nancial
years. Other taxes not based on income are included within other operating
expenses. Current taxes are calculated using the tax rates (and tax laws) that
have been enacted or substantively enacted by the end of the reporting period.
Taxable prot diers from the prot reported in the consolidated income sta-
tement, since:
— some income or expense items are taxable or deductible in other years, and/or
— certain income items are not taxable or certain expense items are non-deduc-
tible for taxation purposes.
Generally deferred tax is provided using the liability method on:
— temporary dierences arising between the tax bases of assets and liabilities
and their carrying amounts
in the nancial statements, and
— unused tax losses or unused tax credits.
Deferred tax assets are recognised for deductible temporary dierences only to
the extent that it is probable that future taxable prots will be available, against
which Optomed can utilise deductible temporary dierences. The amount and
the probability of the utilisation of deferred tax assets are reviewed at the end of
each reporting period. A valuation allowance is recognized against the deferred tax
asset, if the utilisation of the related tax benet is no more considered probable.
Deferred tax liabilities are usually recognized in full. However, deferred tax
liability is not accounted for, if it arises from:
— the initial recognition of goodwill, or
— the initial recognition of an asset or a liability in a transaction which is not a
business combination, and
at the time of the transaction, aects neither accounting prot nor taxable
prot (tax loss).
A deferred tax liability is recognised for investments in subsidiaries, except
In thousands of euro 2021 2020
Foreign exchange losses -97 -466
Interest expenses -101 -171
Other nance expenses -64 -157
Total -263 -794
Net nance expenses 453 -341
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92
to the extent that Optomed is able to control the timing of the reversal of the
temporary dierence and it is probable that the temporary dierence will not
reverse in the foreseeable future.
Deferred tax assets and deferred tax liabilities are determined using tax rates (and
laws) that are expected to apply when the related deferred tax asset is realized
or the deferred tax liability is settled. The applied tax rate is the rate enacted
or substantively enacted by the balance sheet date in the respective countries.
10.2 Current tax
In thousands of euro 2021 2020
Current tax for the reporting year 0 0
Current tax adjustments for prior years 0 -9
Change in deferred taxes 78 80
78 70
2021 2020
Prot before income tax -4,327 -3,247
Tax using the Finnish corporate tax rate
(20 %)
865 649
Eect of tax rate in foreign
jurisdictions
-2 12
Unrecognised deferred tax assets on
taxable losses
-309 -261
Non-deductible expenses -9 7
Share option expense -68 -107
Depreciation and amortisation not
deducted for tax purposes
-366 -249
Consolidation-related adjustments -32 20
Taxes in the income statement 78 70
10.3 Reconciliation between income tax expense
in prot or loss and tax expense calculated using
the Finnish corporate tax rate
10.4 Income taxes recognised in other
comprehensive income
During the years 2020-2021 the Group did not recognise any income taxes in
other comprehensive inco
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93
10.5 Movements in deferred tax asset and deferred tax liability balances
In thousands of euro
At Jan 1,
2021
Business
combinations
Recognised
through
prot or loss
Recognised
in equity
Exchange
dierences and
other changes
At Dec 31,
2021
Deferred tax assets
Right-of-use assets 11 - 3 - - 14
Total 11 3 - - 14
Deferred tax liabilities
PPA Intangible assets -469 - 65 - - -404
Development costs -70 - 12 - - -59
Total -540 - 76 - - -463
Total deferred tax assets and deferred tax liabilities -529 - 79 - - -450
In thousands of euro
At Jan 1,
2020
Business
combinations
Recognised
through
prot or loss
Recognised
in equity
Exchange
dierences and
other changes
At Dec 31,
2020
Deferred tax assets
Right-of-use assets 8 - 3 - - 11
Total 8 3 - - 11
Deferred tax liabilities
PPA Intangible assets -534 - 65 - - -469
Development costs -82 - 12 - - -70
Total -616 - 76 - - -540
Total deferred tax assets and deferred tax liabilities -608 - 76 - - -529
2021
2020
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In thousands of euro Dec 31, 2021 Dec 31, 2020
T a x l o s s e s a p p r o v e d b y t a x a u t h o r i t i e s 7,723 10,409
Depreciation and amortisation not
deducted for ta x p urposes
6,532 4,702
10.6 Group’s tax losses and depreciation and
amortisation not deducted for tax purposes
These tax losses relate to Optomed Plc and its Chinese subsidiaries. The Group
has not recognised any deferred tax asset on these losses as at the time of
preparation of these nancial statements it is unlikely that these entities will
generate taxable income against which the losses could be utilised before their
expiration dates. The losses will expire in the years 2022-2030.
The depreciation and amortisation not deducted for tax purposes relate to
Optomed Plc.
11. Loss per share
11.1 Accounting policy
Basic and diluted earnings (loss) per share
Basic earnings (loss) per share is calculated by dividing:
— the prot (loss) attributable to owners of the parent company
— by the weighted average number of ordinary shares outstanding during the
nancial year.
In calculating the diluted earnings (loss) per share, the dilutive eect of all dilutive
potential ordinary shares is taken into account in the weighted average number
of outstanding shares. The Group’s dilutive potential ordinary shares comprise
the share-based incentive plans payable in shares.
11.2 Loss per share
Diluted loss per share is not presented, as the results for the nancial years
2020and 2021 were negative and thus the dilutive instruments would have an
undilutive eect on loss per share.
2021 2020
Loss attributable to owners of the
parent company (in thousands of euro)
-4,249 -3,177
Weighted average number of
shares outstanding during the
nancial year (pcs)
13,441,437 13,262,766
Basic loss per share (EUR/share) -0.32 -0.24
44
95
to use or sell the intangible asset
— Optomed is able to measure reliably the expenditure attributable to the in-
tangible asset during its development. Capitalised development costs comprise
all directly attributable costs (mainly labour) necessary to prepare the asset to
be capable of operating in the manner intended. Optomed has also:
— capitalised borrowing costs arisen from government loans granted for de-
velopment purposes, and
— deducted an applicable amount of major government grants received for
development activities from
the carrying amount.
Development expenditure that was initially expensed is not capitalised at a later
date. The estimated useful life for development costs is 10 years.
Research is original and planned investigation Optomed undertakes with the
prospect of gaining new scientic or technical knowledge and understanding.
Such costs are expensed as incurred.
c) Customer relationships and technology: these assets were measured at fair
value at the acquisition date using the multi-period excess earnings method
and the relief-from-royalty method. Their estimated remaining useful lives are
10 years.
d) Other intangible assets: An intangible asset is recognised only if it is probable
that the expected future economic benets that are attributable to the asset will
ow to Optomed, and the cost of the asset can be measured reliably. All other
expenditure is expensed as incurred. Group’s other intangible assets mainly
comprise patents and trademark rights, which are amortised on a straight-line
basis over their estimated useful lives (10 years).
Optomed reviews the amortisation periods and the amortisation methods
applied at least at each nancial year-end. If the expected useful life of the
asset is dierent from previous estimates, the amortisation period shall be
changed accordingly. The changes of useful lives can be due to e.g. technical
development, changes in demand or competition, for example.
The Group assesses, at each reporting date, whether there is an indication that
an intangible asset other than goodwill may be impaired. If any indication exists,
12. Intangible assets
13.1 Accounting policy
The Group’s intangible assets comprise the following: a) goodwill, b) develop-
ment costs, c) customer relatioships and technology (identied in the Commit
acquisition) and d) other intangible assets.
a) Goodwill: The excess of the
— consideration transferred
— amount of any non-controlling interest in the acquired entity, measured at
fair value, and
— acquisition-date fair value of any previous equity interest in the acquired entity,
over the fair value of the net identiable assets acquired is recorded as goodwill.
Goodwill reects e.g. expected future synergies resulting from acquisitions.
Goodwill is not subject to amortisation but is tested annually for impairment,
or more frequently if there is any indication that it might be impaired, refer
to Note 12.3 below. Goodwill is carried at historical cost less accumulated
impairment losses.
b) Development costs: Development is the application of research ndings or
other knowledge to a plan or design for the production of new or substantially
improved materials, devices, products, processes, systems or services before
the start of commercial production or use. Optomed capitalises such costs
when all the following criteria are met:
— Optomed can demonstrate the technical feasibility of completing the intan-
gible asset so that it will be
available for use or sale.
— Optomed intends to complete the intangible asset and use or sell it.
— Optomed is able to use or sell the intangible asset.
— Optomed is able to demonstrate how the intangible asset will generate
probable future economic benets.
— The Group has adequate technical, nancial and other resources available
to complete the development and
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96
Optomed estimates the asset’s recoverable amount. An impairment loss is re-
cognised in the income statement when the carrying amount of an asset exceeds
its recoverable amount.
12.2 Assumptions and estimation uncertainties –
development costs
Optomed capitalises development expenditure as an intangible asset where the
related criteria are met (refer to 12.1 Accounting policy above). This requires
management to make judgement on when all of the criteria for capitalisation
are met and when to cease capitalisation and start amortising the asset. The
point at which development costs meet the criteria for capitalisation is depen-
dent on Optomed management’s judgement of, for example, the point at which
technical feasibility is demonstrable.
In impairment testing the recoverable amount of development costs are de-
termined based on value-in-use calculations. The calculations use cash ow
projections approved by management covering a four-year period. Cash ows
beyond the four-year period are extrapolated using the estimated steady gro-
wth rate of 1.8 %. The cash ow projections exclude expansion investments.
The discount rate is dened as WACC (weighted average cost of capital), which
reects the total cost of equity and debt while considering the asset-specic
risks. The pre-tax discount rate was 13.6% (13.6%) and the post-tax discount
rate 11.2% (11.2%)
The sensivity analysis is prepared in respect of the discount rate and the termi-
nal growth rate applied beyond the four-year projection period. The changes
in these key assumptions - holding other assumptions constant - would result
in the recoverable amount of the tested assets to equal their carrying amount
as at December 31, 2021
— The pre-tax discount rate should increase by 28.1 percentage point.
— The terminal growth rate for break even cannot be measured.
Based on the impairment test carried out as at December 31, 2021 the deve-
lopment costs were not impaired..
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97
12.3 Reconciliation of carrying amounts
At December 31, 2021
In thousands of euro Goodwill
Develop-
ment costs
Customer
relationships
Technology
Other
intangible
assets
Total
Cost
Balance at January 1 4,256 9,709 2,222 1,023 945 18,156
Additions - 2,105 - - 6 2,111
Balance at December 31 4,256 11,815 2,222 1,023 951 20,267
Accumulated amortisation and impairment losses
Balance at January 1 - -4,043 -614 -286 -461 -5,403
Amortisation - -952 -222 -102 -43 -1,408
Impairment losses - -482 - - -89 -571
Balance at December 31 - -5,477 -836 -387 -593 -7,292
Carrying amount at Jan 1 4,256 5,667 1,608 738 485 12,753
Carrying amount at Dec 31 4,256 6,338 1,386 636 358 12,975
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At December 31, 2020
The research and development costs expensed amounted to EUR 2,284 thousand (2021) and EUR 1,659 thousand (2020), mainly comprising personnel expenses
In thousands of euro Goodwill
Develop-
ment costs
Customer
relationships
Technology
Other
intangible
assets
Total
Cost
Balance at January 1 4,256 8,246 2,222 1,023 859 16,606
Business combinations - - - - - -
Additions - 1,463 - - 86 1,549
Balance at December 31 4,256 9,709 2,222 1,023 945 18,156
Accumulated amortisation and impairment losses
Balance at January 1 - -3,029 -392 -184 -340 -3,945
Amortisation - -854 -222 -102 -121 -1,298
Impairment losses - -160 - - - -160
Balance at December 31 - -4,043 -614 -286 -461 -5,403
Carrying amount at Jan 1 4,256 5,218 1,829 840 519 12,662
Carrying amount at Dec 31 4,256 5,667 1,608 738 485 12,753
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12.4 Impairment testing of goodwill
12.4.1 Accounting policy
For the purposes of impairment testing goodwill is allocated to the cash-gene-
rating units (CGUs) or the groups of CGUs that are expected to benet from
the business combination in which the goodwill arose. A cash-generating unit
is the smallest identiable group of assets in Optomed that generates inows
that are largely independent from the cash inows from other assets or groups
of assets. A cash-generating unit is impaired when its carrying amount exceeds
its recoverable amount. The recoverabe amount is:
— the higher of the asset’s or CGU’s fair value less costs of disposal, and
— its value in use.
Optomed determines recoverable amounts based on value-in-use calculations
prepared using discounted future net cash ows.
12.4.2 Assumptions and estimation uncertainties
At each balance sheet date Optomed management assesses if there is any indi-
cation of impairment of goodwill (or other intangible, tangible asset or right-of-
use asset). Review is based on indicators that measure economic performance,
such as Group’s management reporting as well as economic environment and
market follow-up.
Such indications may include, among others:
— unexpected changes in signicant factors underlying impairment tests (re-
venues, protability levels and changes in
prevailing interest rates), and
— changes in market conditions.
The recoverable amount determined in the testing process is based on assump-
tions and estimates made by management on future sales, production costs,
sales growth rate and discount rate, among others.
Optomed has allocated the goodwill arisen from the Commit acquisition to the
Software operating segment. This segment establishes a single cash-generating
unit. The carrying amount of the assets amounted to EUR 7,754 thousand as at
December 31, 2021, including the goodwill of EUR 4,256 thousand.
In impairment testing the recoverable amount of the Software segment is
determined based on value-in-use calculations. The calculations use cash ow
projections approved by management covering a ve-year period. Cash ows
beyond the ve-year period are extrapolated using the estimated steady gro-
wth rate of 1.8 %. The cash ow projections exclude expansion investments.
The discount rate is dened as WACC (weighted average cost of capital), which
reects the total cost of equity and debt while considering the asset-specic
risks. The pre-tax discount rate was 13.6% (13.6%) and the post-tax discount
rate 11.2% (11.2%.)
The sensivity analysis is prepared in respect of the discount rate and the termi-
nal growth rate applied beyond the ve- year projection period. The changes
in these key assumptions - holding other assumptions constant - would result
in the recoverable amount of the tested assets to equal their carrying amount
as at December 31, 2021:
— The pre-tax discount rate should increase by 15.5 percentage point.
— The terminal growth rate should decrease by 161.8 percentage point.
Based on the impairment test carried out as at December 31, 2021 the goodwill
was not impaired.
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13. Tangible assets
13.1 Accounting policy
Tangible assets acquired by Optomed held for use are stated in the balance
sheet at their cost. The cost comprises directly attributable incremental costs
incurred in their acquisition and installation. Subsequently tangible assets
are carried at cost, less any accumulated depreciation and any accumulated
impairment losses. Ordinary repairs and maintenance costs are expensed
during the reporting period in which they are incurred. Government grants are
accounted for by reducing the carrying amount of the asset. The grant is then
recognised in prot or loss over the useful life of the asset by way of a reduced
depreciation charge.
Depreciation is charged so as to write o the cost of assets using the straight-line
method, over their estimated useful lives, as follows:
— Production machinery and equipment: six years
— Other machinery and equipment: three years
— Oce furniture: three years
— Cars: three years
Expected useful lives and residual values are reviewed at least at each nancial
year-end and if they dier signicantly from previous estimates, the useful lives
are revised accordingly. Recognition of depreciation is discontinued when a tan-
gible asset is classied as held for sale. The Group assesses, at each reporting
date, whether there is an indication that a tangible asset may be impaired. If
any indication exists, Optomed estimates the asset’s recoverable amount. An
impairment loss is recognised when the carrying amount of an asset exceeds
its recoverable amount.
The gain or loss arising on the disposal or retirement of a tangible asset is
determined as the dierence between any net sale proceeds and the carrying
amount of the asset and is recognised in other operating income or other ope-
rating expenses.
13.2 Reconciliation of carrying amounts
Refer to Note 14. Leases for disclosures on Group’s tangible assets acquired
under lease agreements.
2021 2020
Cost
Balance at January 1 2,257 1,992
Additions 464 265
Balance at December 31 2,721 2,257
Accumulated depreciation and im-
pairment losses
Balance at January 1 -1,898 -1,585
Depreciation -390 -313
Balance at December 31 -2,288 -1,898
Carrying amount at January 1 359 406
Carrying amount at December 31 433 359
Machinery and equipment
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14. Leases
14.1 Accounting policy
The Group acts as a lessee leasing mainly business premises, IT equipment as
well as other machinery and equipment. As a general rule, Optomed recognises
a leased asset (right-of-use asset) and a lease liability for all leases, except for
short-term leases and leases of low-value items (the accounting treatment is
described below). The Group assesses whether a contract is or contains a lease
at inception of a contract. A contract is or contains a lease if the contract conveys
the right to control the use of an identied asset for a period in exchange for
consideration.
The Group recognises a right-of-use asset and a lease liability at the lease com-
mencement date. The right-of- use asset is initially measured at cost, which
comprises:
— the amount of the initial measurement of the lease liability
— any lease payments made at or before the commencement date, less any
lease incentives (e.g. lease-free months)
— any initial direct costs incurred by Optomed, and
— an estimate of restoration costs to be incurred by Optomed.
After the commencement date the right-of-use assets are measured at cost less
any accumulated depreciation and any accumulated impairment losses and
adjusted for certain remeasurements of the lease liability. The right-of-use asset
is depreciated using the straight-line method, from the commencement date
to the earlier of the end of the useful life of the right-of-use asset, or the end of
the lease term. The estimated useful life for the business premises applied by
Optomed is three years. The right-of-use asset is tested for impairment where
necessary and any impairment loss identied is recorded in prot or loss.
Initially the lease liability is measured at the present value of the lease payments
that are not paid at the commencement date. The discount rate used by the
Group is Optomed’s incremental borrowing rate. Lease payments included in
the measurement of the lease liability comprise:
— xed payments, including in substance xed payments
— variable lease payments that depend on an index or a rate, initially measured
using the index or rate as at
the commencement date of the contract
— amounts expected to be payable under a residual value guarantee, and
— the exercise price under a purchase option that the Group is reasonably
certain to exercise.
Subsequently the lease liability is measured at amortised cost using the ee-
ctive interest method. It is remeasured when there is a change in future lease
payments arising from change in an index or rate, if there is a change in the
Group’s estimate of the amount expected to be payable under a residual value
guarantee or if the Group changes its assessment of whether it will exercise a
purchase, extension or termination option. When a lease liability is remeasured
in this way, a corresponding adjustment is made to the carrying amount of the
right-of-use asset or is recorded in prot or loss if the carrying amount of the
right-of-use asset has been reduced to zero.
Optomed has elected not to recognise right-of-use assets and lease liability for:
— short-term leases (that have a lease term of 12 months or less)
— leases of low-value assets (each asset with a value of approximately EUR
5,000 or less when new).
Such assets include IT equipment as well as other machinery and equipment.
The Group recognises the lease payments associated with above-mentioned
leases as an expense on a straight-line basis over the lease term.
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14.2 Management judgements
Some business facility leases of the Group include termination options. Optomed
uses such terms in its contract management to maximise operational exibility
for its business. Termination options are considered on a case-by-case basis
following a regular management assessment. The factors considered include, for
example, contractual terms and conditions for optional periods compared with
market rates, the importance of the underlying asset to Optomed’s operations
as well as termination and replacement costs.
Optomed has re-negotiated its Oulu oce lease during the 2021
In thousands of euro 2021 2020
Additions to right-of-use assets 449 484
Depreciation charge for right-of-use assets -409 -394
Carrying amount at the end of
the nancial year
1,205 1,165
In thousands of euro 2021 2020
Current 396 425
Non-current 818 782
Total 1,214 1,207
14.4 Amounts presented in cash ow statement
14.5 Leased tangible assets
Leased tangible assets comprise business premises and are presented as a
separate line item Right-of-use assets in the consolidated balance sheet.
14.6 Lease liabilities
The weighted average Optomed’s incremental borrowing rate applied for
discounting purposes was 3.2 %.
The above liabilities are presented on the line item Lease liabilities (non-current /
current) in the consolidated balance sheet, based on their maturity. The maturity
analysis is disclosed in Note 21.5 Liquidity risk.
Total cash outow for leases -414 -390
14.3 Amounts recognised in income statement
In thousands of euro 2021 2020
Expense relating to leases of low-value
assets1 (that are not short-term leases)
-3 -6
Depreciation charge for right-of-use assets by
class of underlying asset (business premises)
(included in Depreciation, amortisation and
impairment losses in the income statement)
-409 -394
Interest expense on lease liabilities
(included in Finance expenses)
-35 -32
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15. Inventories
15.1 Accounting policy
Inventories are stated at the lower of cost and net realisable value. The cost
of ready purchased products consists of the purchase price, including direct
transportation, processing and other costs.
Cost is determined using the rst-in, rst-out (FIFO) method. Net realisable value
is the estimated selling price in the ordinary course of business, less the esti-
mated costs of completion and the estimated costs necessary to make the sale.
Optomed has not recognised any impairment losses on inventories in the -
nancial years 2020-2021.
16. Financial assets
16.1 Accounting policy
Optomed classies nancial assets as follows:
— nancial assets measured at fair value through prot or loss (FVTPL)
— nancial assets measured at amortised cost, and
— nancial assets measured at fair value through other comprehensive inco-
me (FVOCI).
Classication of nancial assets is made based on their purpose of use upon
initial recognition. Classication relies on the objectives of Optomed’s business
model and the contractual cash ows from nancial assets, or by applying
the fair value option upon initial recognition. Optomed recognises all its
nancial assets at amortised cost.
All purchases and sales of nancial assets are recognised at the trade date. For
nancial assets not carried at fair value through prot or loss, transaction costs
are included in the initial carrying amount. Financial assets are derecognised
when the Group loses the rights to receive the contractual cash ows on the
nancial asset or it has transferred substantially all the risks and rewards of
ownership outside the Group.
Financial assets measured at amortised cost
Optomed recognises all trade receivables that are non-derivative assets at
amortised cost. In the Group trade receivables are held within a business mo-
del whose objective is to collect the contractual cash ows, and those cash
ows that are solely payments of principal and interest. Trade receivables are
current assets that Optomed has the intention to hold for less than 12 months
from the end of reporting period. Assets classied in this category are measu-
red at amortised cost using the eective interest (EIR) method. The carrying
amounts of current trade receivables are expected to substantially equal their
fair values.
Optomed recognizes a loss allowance for expected credit losses on nancial as-
sets that are measured at amortised cost. The expected credit losses on trade
receivables are recorded based on Optomed’s historical knowledge on trade
receivables at default and payment delays due to nancial diculties. The loss
allowance is assessed both on an individual basis and collectively. The expect-
ed loss is measured as the dierence between the asset’s carrying amount and
the pre sent value of estimated future cash ows discounted at the nancial
asset’s eective interest rate. This adjustment is recognised in other operating
expenses and as a deduction to the carrying amount of the receivable.
In thousands of euro 2021 2020
Raw materials and consumables 2,936 2,539
Total 2,936 2,539
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17. Other receivables
All realised credit losses are recognised in prot or loss. A credit loss is reversed
in a subsequent period, if the reversal can be related objectively to an event
occurring after the impairment was recognised. Optomed did not recognise
credit losses during the nancial years 2019-2020.
Cash and cash equivalents
The Group’s cash and cash equivalents consist of cash on hand, demand depo-
sits and short-term, highly liquid investments. Items qualifying as cash equiva-
lent have a maturity of three months or less from the date of acquisition.
16.2 Carrying amounts - at amortised cost
Current nancial assets
In thousands of euro Note 2021 2020
Trade receivables
Recourse factoring 21 740 131
Other trade receivables 21 2,917 2,509
Total trade receivables 3,658 2,641
Cash and cash equivalents 6,804 10,608
Total 10,462 13,249
16.3 Cash and cash equivalents
The year 2021 include a specic credit risk accrual of EUR 715 thousand inclu-
ding overdue trade receivable from a Chinese customer. The Group had no
non-current nancial assets at the end of the nancial years 2020-2021.
In thousands of euro 2021 2020
Cash and bank accounts
6,804 10,608
Total 6,804 10,608
In thousands of euro 2021 2020
Prepayments and accrued income 807 762
Other 166 236
Total 973 998
18. Capital and reserves
18.1 Accounting policy
The Group classies the instruments it has issued either as equity instruments
or nancial liabilities based on their nature.
— An equity instrument is any contract that evidences a residual interest in the
assets of Optomed after deducting all of
its liabilities.
— A nancial liability is an instrument that obligates Optomed to de
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105
liver cash or another nancial asset, or the holder has a right to demand cash
or another nancial asset.
Optomed evaluates the terms of an issued compound instrument to determi-
ne whether it contains both a liability and an equity component. Such compo-
nents are classied separately as nancial liabilities, nancial assets or equity
instruments in accordance with the substance of the contractual arrangement.
18.2 Share capital and share series
18.2.1 Accounting policy
The share capital consists of the parent company’s ordinary shares classied
as equity. The subscription price of a share received by the company in conne-
ction with share issues is credited to the share capital, unless it is provided in
the share issue decision that a part of the subscription price is to be recorded
in the Reserve for invested non-restricted equity. Transaction costs directly att-
ributable to the issue of new shares are recorded in equity as a deduction, net
of tax, from the proceeds.
The share capital of Optomed Plc amounted to EUR 80 thousand at December
31, 2021 and 80 thousand at December 31.12.2020 . The share capital consists
of one share class.
The shares have no nominal value. All issued shares have been fully paid. Each
share carries one vote.
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18.2.2 Movements in share numbers and Group’s equity
The table below discloses changes in the number of shares and respective changes in Group’s equity (A and C share classes).
2021
A series Total
Share
capital
Reserve for invested
non- restricted equity
At January 1, 2021 14,003,144 14,003,144 80 37,341
Additions to Reserve for Invested non-equity
based on option subscription
1,055
At Dec 31, 2021 14,003,144 14,003,144 80 38,526
Pieces In thousands of euro
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2020
A series Total
Share
capital
Reserve for invested
non- restricted equity
At January 1, 2020 14,003,144 14,003,144 80 37,341
Additions to Reserve for Invested non-equity
based on option subscription
129
At Dec 31, 2020 14,003,144 14,003,144 80 37,341
Pieces In thousands of euro
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18.3 Treasury shares
18.3.1 Accounting policy
The consideration paid for treasury shares, including any directly attributable
transaction costs (net of taxes), is deducted from equity, until the shares are
cancelled or reissued. Where such shares are subsequently sold or reissued,
any consideration received, net of any directly attributable transaction costs
and net of taxes, is directly recognised in equity.
The total amount of treasury shares was 421 517 shares in the end of the -
nancial year.
18.4 Dividends
18.4.1 Accounting policy
Dividend distribution to the parent company’s shareholders is recognised as a
liability in the consolidated balance sheet in the period in which the dividends
are approved by the company’s Annual General Meeting.
Under the Finnish Limited Liability Companies Act the amount of capitalised
development costs (accounted for in accordance with the Finnish Accounting
Act) is deducted from unrestricted equity in calculating distributable funds.
18.5 Reserves
Reserve for invested non-restricted equity
The reserve for invested non-restricted equity comprises other equity investments
and that part of the share subscription price that has not specically been al-
located to share capital.
Share premium
The share premium accrued under the previous Finnish Limited Liability Com-
panies Act. Under the current Act the share premium is classied as restricted
equity and may no longer increase. The share premium may be reduced in
accordance with the rules applying to decreasing share capital and can be used
to increase the share capital as a reserve increase.
Translation dierences
The reserve includes translation dierences arisen from the IFRS post-transition
date (January 1, 2016) translation of the nancial statements of foreign opera-
tions into euro.
Retained earnings
Retained earnings are earnings accrued over the previous nancial years that
have not been transferred to equity reserves or issued as dividends to owners.
18.6 Capital management
Optomed’s objective in capital management is to maintain optimum capital
structure in order to secure normal operating conditions and to optimise cost
of capital to create value to shareholders. For capital management purposes,
Optomed manages equity as indicated in the consolidated balance sheet. The
equity is mainly inuenced through share issues and restructuring of loans and
borrowings. The Group is not subject to externally imposed capital require-
ments. Group management and the Board of Directors of the parent company
monitor Group’s capital structure and liquidity development. The objective of
this monitoring is to ensure Group’s liquidity and exibility of capital structure
in order to full the growth strategy.
Optomed monitors the development of capital structure based on equity ratio.
Equity ratio is also the nancial covenant of Optomed’s borrowing facilities (line
item Borrowings from nancial institutions). For covenant accounting purposes
equity ratio is calculated based on the related terms of the borrowings, refer to
19.4 Financial covenant for more details.
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19. Financial liabilities
19.1 Accounting policy
Optomed classies nancial liabilities as follows:
— nancial liabilities measured at amortised cost, and
— nancial liabilities measured at fair value through prot or loss (FVTPL).
Optomed did not use derivative instruments during the years 2019-2020, and
the Group had no other nancial liabilities at fair value through prot or loss at
the end of nancial years 2019-2020.
Financial liabilities at amortised cost
Financial liabilities are initially recognised at fair value. Transaction costs are
included in the original carrying amount. Subsequently these nancial liabilities
are measured at amortised cost using the eective interest rate (EIR) method. A
nancial liability is classied as current if Optomed does not have an unconditional
right to defer settlement of the liability for at least 12 months after the end of the
reporting period. In respect of loans and borrowings current nancial liabilities
comprise the portion falling due within less than 12 months and repayments in
accordance with the repayment plans.
Financial liabilities may be interest-bearing or non-interest-bearing. The Group’s
all nancial liabilities carry interest.
A nancial liability (or part of the liability) is not derecognised until the liability
has ceased to exist, that is, when the obligation identied in a contract has been
fullled, cancelled or is no longer eective.
Borrowing costs
Optomed capitalises borrowing costs that are directly attributable to creation
of a qualifying asset as an addition to the cost of that asset.
— Borrowing costs are interest and other costs that Optomed incurs in conne-
ction with the borrowing of funds.
— A qualifying asset is an asset that necessarily takes a substantial period of
time to get ready for its intended use.
Optomed considers capitalised development costs to be a qualifying asset.
Consequently, the Group recognises those borrowing costs incurred from the
government loans (from Business Finland), granted for development activities,
as an addition to the carrying amount of the development cost. The capitali-
sed borrowing costs are recorded as a deduction to interest expenses. Other
borrowing costs are expensed in the period in which Optomed incurs them.
Optomed ceases capitalising borrowing costs when the development project
is substantially complete.
For cash ow statement purposes Optomed classies cash ows related to
capitalised borrowing costs as operating activities.
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19.2 Financial liabilities measured at amortised cost
In thousands of euro 2021 2020
Non-current nancial liabilities
Borrowings from nancial institutions 3,813 3,520
Government loans 1,940 2,670
Lease liabilities 818 782
Total 6,571 6,972
Current nancial liabilities
Borrowings from nancial institutions 1,071 0
Government loans 193 328
Lease liabilities 396 425
Trade payables 944 595
Total 2,604 1,348
Total nancial liabilities 8,320 8,320
The company mortgages related to the borrowings from nancial institutions are
disclosed in Note 22. Contingent assets, contingent liabilities and commitments.
19.3 Changes in nancial liabilities
In the nancial year 2021 the Group adjusted the repayment schedule for
borrowings from nancial institutions and negotiated new loan from Nordea.
19.4 Financial covenant
Optomed’s borrowings from nancial institutions contain a nancial covenant
(equity ratio) and Optomed also has to meet certain key operative targets. The
related liabilities amounted to EUR 4,524 thousand (at December 31, 2021) and
EUR 3,524 thousand (at December 31, 2020). The borrowings will be repaid in
accordance with the repayment schedule.
Optomed has to comply with the nancial covenant terms specied in the
loan agreement terms at the nancial year-end. Equity ratio is calculated using
the agreed formula. The table below summarises the Group’s nancial cove-
nant term and compliance over the nancial years 2020-2021.For covenant
accounting purposes equity ratio is calculated Covenant accounting purposes
equity ratio is calculated, based on the related terms of the borrowings.
Nordea loan equity ratio calculation formula: Adjusted equity/Balance sheet
total+ Leasing liabilities
OP loan equity ratio calculation formula: Adjusted equity/Balance sheet total-
received advances
Optomed was in compliance with the covenant as at December 31, 20201and
as at December 31, 2020.
Covenant term Actual ratio Applicable level
Nordea loan
At December 31, 2021
Equity ratio 50 % 56.44 % Optomed Group
Cash amount 2 million 6,8 million Optomed Group
At december 31. 2022 and
thereafter
EBITDA 0 Optomed Group
OP loan
Equity ratio
At December 31, 2021 35 % 59.04 % Optomed Group
At December 31, 2020 25 % 69.03 % Optomed Group
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19.5 Government loans - borrowings costs
Optomed has capitalised borrowing costs incurred from the government loans
granted for development activities in the balance sheet under Development
costs. Details are disclosed in Note 9.3 Borrowing costs - government loans.
19.6 Fair values - nancial liabilities measured
at amortised cost
Optomed considers that the carrying amounts of the nancial liabilities measu-
red at amortised cost substantially equal to their fair values. This estimate
corresponds to the fair value hierachy Level 3, as the measurement of the said
liabilities is based on Optomed management view. The fair value hierarchy is
presented in Note 1.2.3 Fair value measurement.
20. Other payables
21. Financial risk management
21.1 Principles of nancial risk management
Optomed’s nancial risks consist of liquidity risk, interest rate risk, foreign exchan-
ge transaction risk, foreign The Group manages centrally loan negotiations for
the parent company and the subsidiaries, for example, and projects the nancing
requirements for the next 12 months on a rolling basis, in order to ensure long-
term liquidity. The Group also handles negotiations in respect of letters of
credit and recourse factoring on a centralised basis.
The objective is to ensure that the Group has liquidity for outgoing commitments
at all times and that the nancing portfolio is well diversied. The nancing port-
folio should also be exible in case of changes in Optomed’s business operations.
The Board of Directors of the parent company has the following responsibilities:
— reviewing and approving the Group’s risk management policy and the Group’s
strategy concerning external nancing and nancial
risk management on an annual basis
— evaluating and approving new nancial instruments and arrangements
— delegating the authority to undertake nancial risk management and nancing
activities to the CEO and CFO
— reviewing the Group’s risk exposures on a monthly basis, and
— reviewing any policy breaches.
Currently letters of credit, recourse factoring agreements as well as non-current
loans and borrowings from nancial institutions are the only approved nancial
instruments.
Subsidiaries should maximise their long-term performance by optimising their
working capital structure. Basic nancial management operations are delegated
to the subsidiaries, such as payment transactions and debt collection.
21.2 Foreign exchange transaction risk and foreign exchange translation risk
Due to its international operations, Optomed is exposed to transaction
risks arising from foreign currency positions and risks from investments
denominated in foreign currencies translated into the functional currency of
the parent company.
The Group’s foreign exchange translation risk is dened as the negative eect of
movements in exchange rates on the value of a foreign subsidiary’s assets when
those values are translated into the reporting currency of the parent company.
The Group has subsidiaries in China. So far, the translation dierence has
not been a signicant item, and thus the Group has not hedged this risk by
using currency derivative instruments.
In thousands of euro 2021 2020
Accrued expenses and prepaid income 1,580 1,494
Other 726 646
Total 2,306 2,141
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Optomed’s trade receivables and trade payables may be denominated in fo-
reign currencies and thus prone to foreign exchange transaction risk. Foreign
exchange transaction risk may also arise from tangible assets subject to price
changes due to volatility in exchange rates.
The Group has foreign currency positions denominated in Chinese Renminbi
(CNY) and US Dollar (USD). Transaction is managed by actively monitoring
currency positions, i.e. absolute amounts. Should the absolute amounts for
currency positions increase signicantly, Optomed may consider using currency
derivative instruments for hedging purposes, where necessary.
21.2.1 Currency risk exposure
In thousands of euro USD CNY
At December 31, 2021
Gross trade receivables 268 2,382
Trade payables 335 0
Total 603 2,382
At December 31, 2020
Gross trade receivables 15 1,352
Trade payables 163 0
Total 178 1,352
21.2.2 Sensitivity analysis on exchange rate movements
In thousands of euro strenghtening weakening
At December 31, 2021
Gross trade receivables
+/- 10 % change in USD 27 -27
+/- 10 % change in CNY 238 -238
Trade payables
+/- 10 % change in USD -34 33
+/- 10 % change in CNY 0 0
Total net eect 231 -231
In thousands of euro strenghtening weakening
At December 31, 2020
Gross trade receivables
+/- 10 % change in USD 2 -2
+/- 10 % change in CNY 135 -135
Trade payables
+/- 10 % change in USD -16 16
+/- 10 % change in CNY 0 0
Total net eect 121 -121
Income statement
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interest expenses, based on the loan terms. The eect of decrease in interest
expenses – either by 1 (one) or 3 (three) percentange points – is excluded from
the sensitivity analysis, as the reference rate cannot be negative.
21.3.1 Cash ow sensitity due to interest rates
21.2.3 Average rates and closing rates for nancial
years used in consolidated nancial statements
21.3 Interest rate risk
Optomed’s interest rate risk is primarily derived from outstanding oating-rate
borrowings from nancial institutions. Interest rate risk is not signicant. The
Group’s revenues and operational cash ows are to a large extent independent
of uctuations in interest rates.
Optomed’s loans and borrowings carry variable interest. The Group had inte-
rest-bearing nancial liabilities totaling EUR 7,017 thousand (at December 31,
2021) and EUR 6,518 thousand (at December 31, 2020). Those liabilities are
linked to Euribor rates (0 to 12 months). The weighted average interest rate was
1.0 % (2021) and 0.5 % (2020).
Optomed manages interest rate risk by projecting its outstanding net debt for
the next 12 months on a rolling basis. In addition, the Group uses likely interest
rate scenarios to identify the eect interest rate risk could have on Optomed’s
result and key gures. As the interest rate risk is not signicant for the Group,
Optomed has not used derivative instruments to hedge nancial liabilities against
changes in market interest rates.
The following interest rate sensitivity analysis presents how Optomed’s interest
expenses on borrowings from nancial institutions would increase following a
change of 1 percentage point (100 basis points) in reference interest rates. In
respect of the government loans a change of 3 percentage points was applied
since only a change of at least 3 percentage points would increase the Group’s
21.4. Credit risk and counterparty risk
Credit and counterparty risk arise from a counterparty not being able to full its
contractual requirements, and thus resulting in a loss to the creditor. Trade recei-
vables are the main driver of credit and counterparty credit risk. Counterparty risk
results from receivables from companies with which the Group provides credit.
Optomed considers it has heightened risk regarding Chinese customer’s trade
receivables. The credit risk concentration has been formed and is associated
with an increased credit loss risk due to overdue trade receivables .
Optomed manages counterparty credit risk by using credit limits approved by
the Board of Directors and only dealing with authorized counterparties when it
comes to nancing activities such as letters of credit.
Average rate Closing rate Average rate Closing rate
2021 2021 2020 2020
EUR/USD 0.85 0.88 0.86 0.81
EUR/CNY 0.13 0.14 0.13 0.12
In thousands of euro 100 bps increase 300 bps increase
At December 31, 2021
Borrowings from nancial institutions 43
Government loans 70
At December 31, 2020
Borrowings from nancial institutions 45
Government loans 99
Income Statement
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Optomed has policies in place to ensure that products are sold and services
provided only to those clients with appropriate credit history. Client credit data is
reviewed prior to the signing of the agreement. Receivable collection and follow-up
are performed actively and streamlined by the recourse factoring agreement with
a Finnish nancial institution. In the recourse factoring arrangement the nancial
institution manages collection activities and partly guarantees receivables but the
nal risk remains with Optomed. The arrangement reduces the Group’s credit
risk and improves liqiuidity. The Group also manages counterparty credit risk
with advance payments and letters of credit. The maximum exposure to credit
risk at the end of the nancial year is the carrying amount of nancial assets.
The following tables disclose credit exposure per geographical area, aging
analysis for trade receivables and related expected credit losses (ECL). The loss
allowance has been recorded in accordance with the tables presented below.
21.4.1 Credit exposure per geographical area
In thousands of euro 2021 2020
Gross trade receivables from companies
Finland 913 912
China 2,382 1,352
Other 349 377
Total 3,644 2,641
Carrying amount
21.4.2 Exposure to credit risk and loss allowance
In thousands of euro
Gross carrying
amount
Weighted av.
loss rate %
Loss
allowance
At December 31, 2021
Current (not past due) 1,143 0.5 % 6
Past due
1-30 days 67 1.5 % 1
31-60 days 10 4 % 0
61-90 days 2 9 % 0
More than 90
days past due
40 12 % 5
Specic loss allowance 2,382 30 % 715
Total 3,644 727
The year 2021 include a specic credit risk accrual of EUR 715 thousand
which consist of overdue trade receivable from a Chinese customer.
At December 31, 2020
Current (not past due) 2,290 0.5 % 11
Past due
1-30 days 181 1.5 % 3
31-60 days 48 4 % 2
61-90 days 3 9 % 0
More than 90
days past due
3 12 % 0
Total 2,525 17
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115
21.5 Liquidity risk
Liquidity risk is incurred from a potential mismatch between Optomed’s liquid
assets and nancing requirements. The company adheres to careful liquidity risk
management and aims to ensure sucient liquidity even in dicult circumstances.
The Group manages liquidity risk by ensuring that non-current liabilities have
dierent maturities and by limiting individual receivables. Optomed also aims
at ensuring liquidity through credit instruments. The liquidity of the company
is monitored and forecasted over a 12-month period and, if necessary, short-
term liquidity is monitored. Liquidity is followed up on a rolling basis and any
changes are addressed promptly.
The liquidity reserve comprises highly liquid assets that can be used without
delay to cover nancial obligations at all times. Optomed aims at ensuring that it
always has the amount of liquid funds available to fund operations. The liquidity
reserve includes the following components: cash and cash equivalents, liquid
investments and credit limits.
The table below analyses nancial liabilities based on their contractual maturities.
The amounts disclosed are undiscounted, comprising both interest payments
and repayments of capital.
21.4.3 Reconciliation of loss allowance
Changes in expected credit losses and realised credit losses are recognised
in the income statement under Other operating expenses.
21.4.4 Recourse factoring (insured receivables)
In the recourse factoring arrangement, Optomed transfers trade receivables
to be collected by a nancial institution and thereby receives credit insurance
covering a large part of the carrying amount of trade receivables. Owing to the
nature of the arrangement and the extent of the insurance, receivables do not
include signicant credit risk and consequently those trade receivables are
excluded from expected credit losses (ECL) accounting.
In thousands of euro 2021 2020
Balance at January 1 16 81
Amounts written o 0 -9
Net remeasurement of loss allowance 711 -56
Balance at December 31 727 16
In thousands of euro 2021 2020
Carrying amount at December 31
Trade receivables, recourse factoring 740 131
Total 740 131
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21.5.1 Contractual maturities of nancial liabilities
If the covenants are breached, the nancial institutions has the right to imme-
diately terminate the contracts or require repayment and/or alternatively the
right to increase the marginal for the borrowings and obligations by 2 percentage
points. The covenant agreement is in force as long as Optomed Plc has unpaid
debt, obligations or other commitments. For more details about covenant terms
refer to 19.4.Financial covenant
IIn 2021 Optomed changed repayment programs and the changes aect the
future payments. The loan periods were extended and repayment amounts
were modied to be better aligned with Optomed’s liquidity.
It is not possible to repay the borrowings at an earlier date than agreed in the
related terms. The lender has no right to demand for repayment, except in the
event of a breach of the covenant (refer to Note 19.4 Financial covenant ). The
borrowings can be renegotiated.
In thousands of euro Total 0-3 months 3-12 months 2-3 years 4-5 years Over 5 years
At December 31, 2021
Borrowings from nancial institutions 4,538 917 529 2,410 683 -
Government loans 2,132 32 161 666 623 651
Lease liabilities 1,214 108 325 781 - -
Trade payables 944 944 - - - -
Total 8,829 2,001 1,015 3,856 1,306 651
In thousands of euro Total 0-3 months 3-12 months 2-3 years 4-5 years Over 5 years
At December 31, 2020
Borrowings from nancial institutions 3,524 - - 1,762 1,762 -
Government loans 2,998 166 161 991 948 732
Lease liabilities 1,207 106 319 782 - -
Trade payables 595 595 - - - -
Total 8,324 868 479 3,535 2,710 732
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22.2 Collaterals
22. Contingent liabilities, contingent
assets and commitments
22.1 Accounting policy
A contingent liability arises when:
— there is a possible obligation that arises from past events and whose existence
will be conrmed by a future event
that is outside the control of Optomed
— there is a present obligation that arises from past events, but probably will
not require an outow of resources, or
— Optomed cannot make a suciently reliable estimate of the amount of a
present obligation.
Contingent liabilities are not recognised, but require disclosure unless the pos-
sibility of outow is remote.
A contingent asset arises when:
— the inow of economic benets to Optomed is probable, but not virtually
certain, and
— occurrence depends on an event outside the control of Optomed.
Contingent assets require disclosure only. If the realisation of income is virtually
certain, the income item is recognised.
In thousands of euro 2021 2020
Liabilities secured under company mortgages
given by Optomed
1
Borrowings from nancial institutions, current 705 328
Borrowings from nancial institutions, non-cur-
rent
5,952 6,194
Total 6,657 6,522
Collaterals given by collateral type
Borrowings from nancial institutions, company
mortgages given
8,700 8,700
Other collaterals given 800 800
Total 9,500 9,500
1 Nominal values of the borrowings, which dier from the amounts recognised in the consolidated
balance sheet, measured at amortised cost.
22.3 Guarantees
2021
Delivery guarantee, Fabrinet Pte Ltd. USD 800 thousand
2020
Delivery guarantee, Fabrinet Pte Ltd. USD 800 thousand
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22.4 Legal proceedings and disputes
Optomed was not involved in any legal proceedings nor had any disputes during
the nancial years 2020-2021.
22.5 Contingencies attaching to government grants
Non-compliance with the conditions attached to the EU Horizon 2020 funding
programme may result in, for example, the rejection of ineligible costs or reduc-
tion of the grant. .
23. Related party disclosures
23.1 Accounting policy
The parent company Optomed Plc’s related parties include the following:
— its subsidiaries
— key management personnel, comprising the members of the Board of Dire-
ctors, CEO and the Group Management
Team members
— entities, over which the above-mentioned persons have control, joint control
or signicant inuence
— close family members of the above-mentioned persons
The related party transactions disclosed consist of transactions carried out with
related parties that are not eliminated in the consolidated nancial statements.
23.2 Key management personnel compensation
The amounts disclosed in the tables below represent the expenses recognised
in those nancial years. Salary amounts include any fringe benets. The CEO and
the Group Management Team members are entitled to the statutory pension,
and the retirement age is determined by the Finnish statutory pension system.
In thousands of euro 2021 2020
CEO Seppo Kopsala
Salaries and other short-term employee benets -128 -144
Pension benets (dened contribution plans) -26 -28
Share-based payments 0 0
Total -154 -172
In thousands of euro 2021 2020
Group Management Team
Salaries and other short-term employee benets -649 -731
Pension benets (dened contribution plans) -142 -157
Share-based payments -194 -249
Total -984 -1,137
In thousands of euro 2021 2020
Key management personnel
Salaries and other short-term employee benets -777 -876
Pension benets (dened contribution plans) -168 -185
Share-based payments -194 -249
Total -1,139 -1,310
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119
23.3 Transactions with other related parties and
outstanding balances
Revenues and trade receivables relate to the major shareholders of Optomed
Plc considered to be related parties to the parent company.
Other expenses consist of expenses consulting fees paid to the Chairman of
the Board of Directors.
23.4 Group structure
At December 31, 2021 the Group comprised the following companies:
The Chinese subsidiary Optomed Medical Consulting (Shanghai) Co. Ltd was
closed in early 2020. Optomed Usa Inc was founded early 2020.
24. Events after the end of the
reporting period
On 25 January 2022, Optomed announced the proposal of the Nomination Bo-
ard to the next Annual General Meeting. The Nomination Board proposed that
Simon Guo, Seppo Mäkinen, Petri Salonen, Reijo Tauriainen and Anna Tenstam
are re-elected as Board members.
On 7 February 2022, Optomed announced the results from the prospective,
multi-center clinical trial intended to assess its handheld fundus camera Aurora
together with AEYE Health’s AI for autonomous detection of more than mild
diabetic retinopathy (mtmDR). Among patients positive for mtmDR, the combined
product, Aurora AEYE detected 91,9 percent (sensitivity), while patients without
the eye disease were correctly identied 93,6 percent of the time (specicity).
The observed imageability was over 99 percent.
Subsidiary Domicile
Ownership
interest, %
Optomed Software Oy Finland 100
Optomed Hong Kong Ltd. Hong Kong 100
Optomed China Ltd China 100
Shanghai Optomed Medical Technology Ltd China 100
Optomed USA Inc USA 100
In thousands of euro Revenues
Trade
receivables
Other
expenses
2021 1,704 2,382 -87
2020 2,685 1,389 -103
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120
Profit and loss account
1 Jan - 31 Dec 2021 1 Jan - 31 Dec 2020
NET TURNOVER 5,561,041.66 4,228,777.54
Other operating income 910,168.23 160,731.26
Materials and supplies
Raw materials and consumables
Purchases during the nancial year -2,827,812.64 -2,163,549.24
Change in stocks 5,991.43 -22,069.61
External services -17,000.00 -2,838,821.21 0.00 -2,185,618.85
Personnel expenses
Wages and salaries -2,824,235.13 -2,352,188.27
Social security expenses
Pension expenses -483,314.38 -392,853.96
Other social security expenses -82,825.58 -3,390,375.09 -103,472.20 -2,848,514.43
Depreciation, amortisation and impairment
Depreciation and amortisation according to plan -1,741,311.16 -1,741,311.16 -1,246,801.50 -1,246,801.50
Other operating expenses -2,212,452.82 -1,724,644.28
OPERATING PROFIT (LOSS) -3,711,750.39 -3,616,070.26
Financial income and expenses
From others 7,439.81
Interest expense and other nancial expenses 30,339.09
To group undertakings (–) -12,980.16
To others (–) -8,195.46 22,143.63 -220,621.64 -226,161.99
PROFIT (LOSS) BEFORE APPROPRIATIONS
AND TAXES
-3,689,606.76
-3,842,232.25
Appropriatons
Group contribution 1,481,140.58 1,481,140.58 1,699,561.34 1,699,561.34
PROFIT (LOSS) FOR THE FINANCIAL YEAR -2,208,466.18 -2,142,670.91
Parent Company’s Financial Statements
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121
31 Dec 2021 31 Dec 2020
Assets
NON-CURRENT ASSETS
Intangible assets
Development expenditure 5,824,053.57 5,378,568.98
Intangible rights 337,429.48 298,350.18
Other capitalised long-term expenditure 85,345.62 6,246,828.67 130,135.98 5,807,055.14
Tangible assets
Machinery and equipment 422,276.15 397,895.02
Other tangible assets 950 423,226.15 950.00 398,845.02
Investments
Holdings in group undertakings 9,266,906.46 9,266,906.46
Receivables from group undertakings 1,052,545.19 10,319,451.65 1,003,875.27 10,270,781.73
TOTAL NON-CURRENT ASSETS 16,989,506.47 16,476,681.89
CURRENT ASSETS
Stocks
Raw materials and consumables 1,246,088.59 1,186,165.07
Finished products / goods for resale 1,257,619.06 2,503,707.65 1,132,020.27 2,318,185.34
Long-term receivables
Amounts owed by group undertakings 441,462.13 441,462.13 81,492.95 81,492.95
Short-term receivables
Trade debtors 7,303,117.00 5,083,426.44
Amounts owed by group undertakings 38,794.47 730,117.05
Other receivables 95,473.16 201,783.07
Prepayments and accrued income 524,444.50 7,961,829.13 342,625.71 6,357,952.27
Cash at bank and in hand 5,363,730.98 7,985,918.68
TOTAL CURRENT ASSETS 16,270,729.89 16,743,549.24
Total assets 33,260,236.36 33,220,231.13
Balance sheet
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122
31 Dec 2021 31 Dec 2020
Capital, reserves and liabilities
CAPITAL AND RESERVES
Share capital 80,000.00 80,000.00
Share premium account 503,699.60 503,699.60
Reserve for invested free own capital 42,439,622.44 41,384,281.85
Retained earnings (Cumulative loss) -16,562,813.54 -14,420,142.63
Prot (loss) for the nancial year -2,208,466.18 -2,142,670.91
TOTAL CAPITAL AND RESERVES 24,252,042.32 25,405,167.91
LIABILITIES
Non-current
Loans from credit institutions 5,759,319.80 6,194,905.28
Amounts owed to group undertakings 490,000.00 6,249,319.80 0.00 6,194,905.28
Current
Loans from credit institutions 1,264,051.72 327,583.21
Advances received 57,497.67 39,386.50
Trade creditors 633,237.57 444,594.45
Amounts owed to group undertakings 299.44 0.00
Other liabilities 83,402.39 86,498.53
Accurals and deferred income 720,385.45 2,758,874.24 722,095.25 1,620,157.94
TOTAL LIABILITIES 9,008,194.04 7,815,063.22
Total capital, reserves and liablities 33,260,236.36 33,220,231.13
Balance sheet
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123
Cash flow stament - indirect
1 Jan 2021–31 Dec 2021 1 Jan 2020–31 Dec 2020
Cash ow from operating activities:
Prot(loss) (+/–) -2,208,466.18 -2,142,670.91
Adjustments to operating prot (+/–) for:
Depreciation according to plan 1,741,311.16 1,246,801.50
Unrealised foreign exchange gains and losses -136,514.38 49,178.43
Financial income and expenses 114,370.74 176,983.56
Other adjustments, share benet - members of the board 43,140.59 37,564.74
Cash ow before working capital changes -446,158.07 -632,142.68
Working capital changes:
Increase/decrease in trade an other short-term interest-free receivables -1,963,846.04 -67,932.97
Increase/decrease in stocks -185,522.31 -74,898.85
Increase/decrease in short-term interest-free liabilities -200,007.82 -2,556,530.08
Operating cash ow before nancing items and taxes -2,795,534.24 -3,331,504.58
Interest and other nancial expenses paid relating to operating activities (–) -144,023.85 -216,764.89
Interest received relating to operating activities 30,339.09 7,439.81
Cash ow from operating activities: -2,909,219.00 -3,540,829.66
Cash ow from investing activities:
Purchase of tangible and intangible items (–) -2,205,465.82 -1,536,727.35
Purchase of investments (–) 0.00 -184,043.43
Proceeds from repayment of loans -48,669.92 29,707.20
Cash ow from investing activities -2,254,135.74 -1,691,063.58
Cash ow from nancing activities
Proceeds from issuance of share capital 1,012,200.00 91,700.00
Proceeds from short-term borrowings 366,100.04 0.00
Repayment of short-term borrowings (–) 0.00 -1,529,857.24
Repayment of long-term borrowings (–) -327,133.00 -3,287,858.40
Cash ow from nancing activities 2,541,167.04 -4,726,015.64
Net increase (+)/ decrease (–) in cash and cash equivalents -2,622,187.70 -9,957,908.88
Cash and cash equivalents at beginning of period 7,985,918.68 17,943,827.56
Cash and cash equivalents at end of period 5,363,730.98 7,985,918.68
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Accounting policies
Optomed Oyj nancial statements have been prepared in accordance with the
Finnish Accounting Act (FAS)
Valuation principles and methods
Valuation principles and methods of non-current assets
Tangible and intangible assets are recognised in the balance sheet at cost less
depreciation according to plan. Cost includes variable expenditure relating to
the acquisition and production of the assets. Grants received are deducted from
the cost. Depreciation according to plan is calculated using the straight-line
method based on the useful life of the assets. Depreciation is started at the
month when the asset is taken into use.
The depreciation periods are as follows: Intangible assets 5-10 years
Machinery and equipment 3–6 years
The cost of tangible and intangible assets whose probable useful life is less than
3 years or whose value is low (less than 850.00 €) is recognised as an expense
as incurred expense.
Valuation of stocks
Stocks are recognised by using the FIFO method at cost, reacquisition cost, or
probable selling price, whichever lower. Cost includes, in addition to variable
costs, an appropriate portion of xed costs attributable to the purchase and
production or construction of the asset.
Recognition of development costs and long-term expenditure
Company has capitalized R&D costs relating to new product development accor-
ding to Finnish Accounting Act (KPL 5:8§). Capitalized costs include personnel
and other costs that directly relate to developing the product to its intended use.
Capitalized R&D costs are depreciated during their estimated useful life that is
10 year straight line depreciation.
Change in the presentation of the prot and loss account or
balance sheet
Increase or decrease in stocks is partly included in the purchases during nancial
year. This accounting princible has no material eect to the assessment of the
company’s performance and nancial position.
Preparation of the cash ow statement
The cash ow statement was drawn up in accordance with the Accounting
Board’s general guideline (30 Jan 2007). Cash ow from operating activities is
indicated on indirect method.
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125
Notes to the profit and loss account
1 Jan 2021–31 Dec 2021 1 Jan 2020–31 Dec 2020
Net turnover
Net turnover by geographical markets
Finland 23,487.00 16,000.00
EU 1,047,993.00 550,488.95
Outside the EU 4,489,561.66 3,662,288.59
5,561,041.66 4,228,777.54
Other operating income
Contributions received 806,875.70 100,000.00
Management fee from group companies 100,410.03 59,086.23
Other income 2,882.50 1,645.03
910,168.23 160,731.26
The company’s other operating income of EUR 807 thousand includes a waived loan from Busi-
ness Finland of EUR 538 thousand related to a terminated product development project.
Materials and services
Materials and supplies
Purchases during the nancial year -2,827,812.64 -2,163,549.24
Variation in stocks 5,991.43 -22,069.61
External services -17,000.00 0.00
-2,838,821.21 -2,185,618.85
Notes relating to personnel
Average number of personnel during the nancial year 54.54 53.08
54.54 53.08
Wages, salaries and pension expenses
Wages and salaries -2,824,235.13 -2,352,188.27
Pension expenses -483,314.38 -392,853.96
Other sta expenses -82,825.58 -103,472.20
-3,390,375.09 -2,848,514.43
Wages, salaries and other remuneration of directors and management
CEO and Board members compensation -264,315.00 -316,942.80
Depreciation, amortisation and impairment
Depreciation according to plan 1,741,311.16 1,246,801.50
1,741,311.16 1,246,801.50
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126
1 Jan 2021–31 Dec 2021 1 Jan 2020–31 Dec 2020
Other operating expenses
Administrative expenses -497,879.90 -366,962.37
Marketing expenses -95,276.01 -115,252.30
Travelling expenses -73,903.18 -82,386.98
Representation expenses -1,830.71 -1,380.93
Other operating expenses -1,543,563.02 -1,158,661.70
-2,212,452.82 -1,724,644.28
Auditor's fees
Audit of nancial statements -88,470.75 -55,961.00
Tax consulting 0.00 -21,500.00
Other fees -25,938.00 -90,735.00
-114,408.75 -168,196.00
Financial income and expenses
Other interest income
From others 30,339.09 7,439.81
Total interest income 30,339.09 7,439.81
Total nancial income 30,339.09 7,439.81
Interest and nancial expenses
Group undertakings -299.44 -12,980.16
Others -7,896.01 -220,621.66
Total interest and nancial expenses -8,195.45 -233,601.82
Other nancial expenses of nancial year 2019 include costs related
to listing total of 3 917 991,86 euros.
Total nancial expenses -8,195.45 -233,601.82
Total nancial income and expenses 22,143.64 -226,162.01
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127
Notes to assets
Amortisation period for capitalised development
expenditure
Development costs: Development is the application of research ndings or
other knowledge to a plan or design for the production of new or substantially
improved materials, devices, products, processes, systems or services before
the start of commercial production or use. Optomed capitalises such costs when
all the following criteria are met:
— Optomed can demonstrate the technical feasibility of completing the intan-
gible asset so that it
will be available for use or sale.
— Optomed intends to complete the intangible asset and use or sell it.
— Optomed is able to use or sell the intangible asset.
— Optomed is able to demonstrate how the intangible asset will generate pro-
bable future economic benets.
— The Group has adequate technical, nancial and other resources available to
complete the development and to use or sell the intangible asset
— Optomed is able to measure reliably the expenditure attributable to the
intangible asset during its development.
Capitalised development costs comprise all directly attributable costs (mainly
labour) necessary to prepare the asset to be capable of operating in the manner
intended. Optomed has also:
— capitalised borrowing costs arisen from government loans granted for de-
velopment purposes,
and
— deducted an applicable amount of major government grants received for
development
activities from the carrying amount.
Development expenditure that was initially expensed is not capitalised at a later
date. The estimated useful life for development costs is 10 years.
Amortisation period for capitalised intangible rights
and other long-term expenditure
An intangible asset is recognised only if it is probable that the expected future
economic benets that are attributable to the asset will ow to Optomed, and
the cost of the asset can be
measured reliably. All other expenditure is expensed as incurred. Depreciation
times and methods of other intangible assets are:
License fees and computer software 5 year straight-line
Patents 10 year straight-line
Trademarks
10 year straight-line
Stocks 31 Dec 2021 31 Dec 2020
Raw materials and consumables 1,246,088.59 1,186,165.07
Finished products /
goods for resale
1,257,619.06 1,132,020.27
2,503,707.65 2,318,185.34
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128
Development
expenditure
Intangible
rights
Other longterm
expenditure
Total
Acquisition cost at 1 Jan 2021 9,244,660.74 455,016.81 229,641.63 9,929,319.18
Additions 1,847,385.32 89,382.94 0.00 1,936,768.26
Disposals -481,779.01 0.00 0.00 -481,779.01
Acquisition cost at 31 Dec 2021 10,610,267.05 544,399.75 229,641.63 11,384,308.43
Accumulated amortisation and reduction in value at 1 Jan 2021 3,866,091.76 156,666.63 99,505.65 4,122,264.04
Amortisation for the nancial year 920,121.72 50,303.64 44,790.36 1,015,215.72
Accumulated amortisation and reduction in value at 31 Dec 2021 4,786,213.48 206,970.27 144,296.01 5,137,479.76
Book value at 31 Dec 2021 5,824,053.57 337,429.48 85,345.62 6,246,828.67
Book value at 31 Dec 2020 5,378,568.98 298,350.18 130,135.98 5,807,055.14
Tangible assets Machinery and equipment Total
Acquisition cost at 1 Jan 2021 1,354,905.57 1,354,905.57
Additions 268,697.56 268,697.56
Acquisition cost at 31 Dec 2021 1,623,603.13 1,623,603.13
Accumulated amortisation and reduction in value at 1 Jan 2021 957,010.56 957,010.56
Amortisation for the nancial year 244,316.43 244,316.43
Accumulated amortisation and reduction in value at 31 Dec 2021 1,201,326.99 1,201,326.99
Book value 31 Dec 2021 422,276.14 422,276.14
Book value 31 Dec 2020 397,895.01 397,895.01
Book value of machinery and equipment used for production at 31 Dec 2021 288,184.10
Book value of machinery and equipment used for production at 31 Dec 2020 315,271.71
Non-current assets
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Holdings in other undertakings
Investments Shares in group companies Receivables from group companies Total
Acquisition cost at 1 Jan 2021 9,266,906.46 1,085,368.22 10,352,274.68
Additions 0.00 -32,823.03 -32,823.03
Acquisition cost at 31 Dec 2021 9,266,906.46 1,052,545.19 10,319,451.65
Book value 31 Dec 2021 9,266,906.46 1,052,545.19 10,319,451.65
Book value 31 Dec 2020 9,266,906.46 1,085,368.22 10,352,274.68
Group undertakings Ownership %
Optomed Software Oy, Espoo 100
Optomed Hong Kong Limited, China 100
Optomed China Ltd, China 100
Shanghai Optomed Medical Technology Ltd 100
Optomed USA Inc 100
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130
Long-term receivables 31 Dec 2021 31 Dec 2020
From group undertakings
Loans receivable 1,052,206.30 681,212.49
Other receivables 441,801.02 404,155.73
Total 1,494,007.32 1,085,368.22
Total long-term receivables 1,494,007.32 1,085,368.22
Short-term receivables
From group undertakings
Trade debtors 5,314,920.08 4,681,323.60
Other receivables 38,794.47 811,610.00
Total 5,353,714.55 5,492,933.60
From others
Trade debtors 1,988,196.92 402,102.84
Other receivables 95,473.16 201,783.07
Prepayments and accrued income 524,444.50 342,625.71
Total 2,608,114.58 946,511.62
Total short-term receivables 7,961,829.13 6,439,445.22
Analysis of receivables
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131
Restricted equity 31 Dec 2021 31 Dec 2020
Subscribed capital at 1 January 80,000.00 80,000.00
Share issue 0.00 0.00
Subscribed capital at 31 December 80,000.00 80,000.00
Share premium account at 1 January 503,699.60 503,699.60
Reduction of share premium account 0.00 0.00
Share premium account at 31 December 503,699.60 503,699.60
Total restricted equity 583,699.60 583,699.60
Unrestricted equity
Reserve for invested unrestricted equity at 1 January 41,384,281.85 41,255,042.75
Share issue 1,055,340.59 129,239.10
Reserve for invested unrestricted equity at 31 December 42,439,622.44 41,384,281.85
Retained earnings from previous nancial years at 1 January -16,562,813.54 -14,420,142.63
Retained earnings from previous nancial years 31 December -16,562,813.54 -14,420,142.63
Prot for the nancial year -2,208,466.18 -2,142,670.91
Total unrestricted equity 23,668,342.72 24,821,468.31
Total capital and reserves 24,252,042.32 25,405,167.91
Capital and reserves
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132
31 Dec 2021 31 Dec 2020
Distributable equity
Calculation regarding distributable equity
Prot from previous nancial years -16,562,813.54 -14,420,142.63
Prot of the nancial year -2,208,466.18 -2,142,670.91
Reserve for invested unrestricted equity 42,439,622.44 41,384,281.85
Capitalised development expenditure -5,824,053.57 -5,378,568.98
17,844,289.15 19,442,899.33
Optomeds share treasury
Optomed has conveyed 2,461 treasury shares to the members of the Board of
Directors as a part of the Board members’ annual remuneration in accordance
with the decision of the Annual General Meeting 2021.
TIn addition total of 316,400 of shares have been subscribed for under the
Company’s stock option plans 2009A, 2015,2017 2017B and 2018C and
Optomed has used treasury shares for the share subscriptions.
The total amount of treasury shares was 421 517 shares in the end of the -
nancial year.
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Liabilities
Appropriations 31 Dec 2021 31 Dec 2020
Non-current liabilities
Loans from nancial institutions 5,759,319.80 6,194,905.28
Other non-current liabilities 490,000.00 0.00
6,249,319.80 6,194,905.28
Liabilities falling due later than in ve years
Loans from nancial institutions 651,168.00 527,882.00
651,168.00 527,882.00
Current liabilities
Amounts owed to group undertakings
Other liabilities 299.44 0.00
299.44 0.00
Amounts owed to others
Loans from nancial institutions 1,264,051.72 327,583.21
Advances received 57,497.67 39,386.50
Trade creditors 633,237.57 444,594.47
Other liabilities 83,402.39 86,498.53
Accruals and deferred income 720,385.45 722,095.25
2,758,874.24 1,620,157.96
Material items included in accruals and deferred income
Wages and salaries including social security costs 632,868.15 636,192.64
Interest 14,472.27 14,085.72
Other 73,045.03 71,816.89
720,385.45 722,095.25
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Related party transactions
The following material transctions were carried out with related parties during the nancial period:
The transactions between group companies are carried out with regular terms. Parent company has also received a group contribution of 1,481,140.58€.
Guarantees and contingent liabilities
Pension obligations
The company’s pension obligations are insured in external pension insurance companies. The pension obligations are fully covered.
31 Dec 2021 31 Dec 2020
Sale of goods, group companies 1,083,473.72 1,655,184.00
Other operating income, group companies 100,410.03 59,086.23
Purchases, group companies -521,747.43 -841,351.56
Interests of loans, group companies -29.44 -12,980.16
Total 662,106.88 859,938.51
Liabilities in balance sheet secured by enterprise mortgages 31 Dec 2021 31 Dec 2020
Loans from nancial institution 4,524,445.24 3,524,445.28
Enterprise mortgages 8,700,000.00 8,700,000.00
Enterprise mortgages, total 8,700,000.00 8,700,000.00
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Other o-balance-sheet financial
commitments
Company has o-balance sheet commitment to enterprice resource planning
system licence fees total of 93,963.91 euros.
Company has delivery guarantee to Fabrinet Pte Ltd, 800.000,00 USD
Other commitments 31 Dec 2021 31 Dec 2020
Rental commitments (Inc. VAT)
Payble during the following nancial year 210,890.52 105,999.60
Payable in later years 87,871.05 0.00
Total 298,761.57 105,999.60
Amounts payable based on lease contracts (Inc.VAT)
Payble during the following nancial year 935.99 935.95
935.99 935.95
Collateralised loans include covenants. The specic terms relate to the compa-
ny’s solvency and liquidity. Breaching the covenants may increase the cost of
nancing or result in termination of the loans. The management of the company
states that the covenants are met and they are being monitored.
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Signatures to the Financial Statements and Board of Director’s Report
Espoo, February 16, 2022
Petri Salonen
Chairman of the Board
Anna Tenstam
Board Member
Seppo Mäkinen
Board Member
Xisi Guo
Board Member
Reijo Tauriainen
Board Member
Seppo Kopsala
CEO
Tapio Raappana
Authorised Public Accountant, KHT
The Auditor’s Note
A report on the audit performed has been issued today. Oulu , February 17, 2022
KPMG Oy Ab
Auditor’s Report
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Auditor’s Report
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Auditor’s Report
To the Annual General Meeting of Optomed Oyj
Report on the Audit of the Financial Statements
Opinion
We have audited the nancial statements of Optomed Oyj (Finnish business
identity code 1936446-1) for the year ended 31 December 2021. The nancial
statements comprise the consolidated balance sheet, income statement, sta-
tement of comprehensive income, statement of changes in equity, statement
of cash ows and notes, including a summary of signicant accounting policies,
as well as the parent company’s balance sheet, income statement, statement
of cash ows and notes.
In our opinion
— the consolidated nancial statements give a true and fair view of the group’s
nancial position, nancial performance and cash ows in accordance with
International Financial Reporting Standards (IFRS) as adopted by the EU
— the nancial statements give a true and fair view of the parent company’s
nancial performance and nancial position in accordance with the laws and
regulations governing the preparation of nancial statements in Finland and
comply with statutory requirements.
Our opinion is consistent with the additional report submitted to the Audit
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 fullled 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 7.3 to the consolidated nancial statements.
We believe that the audit evidence we have obtained is sucient and appropriate
to provide a basis for our opinion.
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
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KPMG Oy Ab, a Finnish limited liability company and a member rm of the KPMG network of independent member rms aliated with KPMG
International Cooperative (”KPMG International”), a Swiss entity.
Materiality
The scope of our audit was inuenced 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 eect of identied misstatements on the nancial 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 expe-
cted to have inuence on the economic decisions of the users of the nancial
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 nancial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were
of most signicance in our audit of the nancial statements of the current pe-
riod. These matters were addressed in the context of our audit of the nancial
statements as a whole and in forming our opinion thereon, and we do not
provide a separate opinion on these matters. The signicant 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.
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The Key Audit Matter How the Matter was Addressed in the Audit
— The carrying amount of goodwill in the consolidated nancial statements
amounted to EUR 4,256 thousand as at December 31, 2021, accounting for
15 % of the total assets and 25 % of total balance of equity and reserves.
— Goodwill is tested for impairment by the management annually or more
frequently. Impairment is recorded in case the carrying amount exceeds the
asset’s recoverable amount.
— For purposes of impairment testing, the recoverable amount is determin-
ed by Optomed based on value in use. The projected cash ows underlying
the estimates made involve an element of management judgment regar-
ding protability of operations, long-term growth factors and interest rates
applicable to the discounting of cash ows.
— Resulting from management judgment underlying estimates and the sig-
nicance of the book value of goodwill, the valuation of goodwill is percei-
ved as a key audit matter.
Our audit measures included, among others:
— We have assessed the key assumptions made by the management such
as protability of operations, interest rates and long-term growth factors. In
the course of our audit of the estimates we have assessed the projections
prepared by management in comparison with realized cash ows and emp-
loyed professional judgment in the testing of key assumptions and their
eect on sensitivity analyses.
— We involved KPMG’s valuation specialists in the audit for assessment
of the appropriateness of the assumptions employed and the technical
integrity of the calculations. The procedures have included a comparison to
general market and industry-specic forecasts.
— In addition, we assessed the appropriate presentation of notes to the
accounts relating to goodwill and impairment testing in the consolidated
nancial statements.
Goodwill (Basis of Preparation for the consolidated nancial statements and Note 12.4 to the Financial Statements)
Optomed Oyj Auditor’s Report 17 February 2022
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Revenue recognition and trade receivables (Basis of Preparation for the consolidated financial statements and Notes
3, 16.2 and 21.4 to the Financial Statements)
— The net sales for the Group, total EUR 14,085 thousand, is comprised of sales of medical
screening devices and solutions to wholesale dealers and of sales of software services.
— Optomed recognises revenue to reect the transfer of negotiated goods or services to
customers in the amount of compensation Optomed expects to be entitled to in exchange
of the goods and services.
— The sales revenue from sales of screening devices and solutions are recognized when the
performance obligation is fullled by the delivery of good to wholesale dealer and control is
transferred to customer.
— For the sales of software services, revenue is recognized over a period of time; for licensing
agreements, at a point of time as control is transferred to customer; and for installation so-
lutions, at the point of time as control is transferred and the end product is at the customer’s
disposal.
— Optomed has a signicant amount of trade receivables, EUR 3,958 thousand, which consist
of resource factoring receivables and normal trade receivables with payment time of dierent
lengths. There is always a credit risk in trade receivables, which is increased by a signicant
amount of overdue trade receivables, as in Note 21.4 is described. The signicant expiry of
trade receivables is a reference of increased credit risk and loss allowance.
— Group recognises all trade receivables at amortised cost. The expected credit losses on
trade receivables are recorded based on Optomed’s historical knowledge on trade receivables
at default and payment delays due to nancial diculties. The loss allowance is assessed both
on an individual basis and collectively.
— Optomed has evaluated the expected credit loss related to overdue trade receivables and
recognized a loss allowance of EUR 715 thousand on an individual basis.
— Following the variety of types of sales proceeds collected by the Group and the signicant
amount of overdue trade receivables and related credit loss risk, revenue recognition and
trade receivables are perceived as a key audit matter.
Our audit measures included, among others:
— Our audit measures have included the assessment of internal control
environment monitoring sales processes and overdue trade receivables and
testing of eectiveness of key sales controls identied. Additionally, we have
performed substantive audit measures on net sales recorded.
— We have tested the recording of sales transactions as well as the function
of recording and invoicing of sales transactions and evaluated the correct-
ness of sales proceeds by testing the accrual of sales between periods.
— We have performed substantive audit procedures for trade receivables
in the consolidated nancial statements to evaluate the valuation of trade
receivables.
— We have evaluated the reasonability of estimates related to valuation of
trade receivables, especially regarding overdue trade receivables.
— In addition, we assessed the appropriate presentation of notes to the
accounts relating to sales revenue and trade receivables recognized in the
consolidated nancial statements.
Optomed Oyj Auditor’s Report 17 February 2022
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Capitalized development expense (Basis of Preparation for the consolidated financial statements and Note 12.2 to the
Financial Statements)
The development of screening devices is a key part of Optomed Group
operating model. It takes lot of development work before launching the
products. Optomed capitalizes such costs when all the nancial statement
regulation criteria are met and those will generate probable future econo-
mic benets. The carrying amount of capitalized development expense in
the consolidated nancial statements amounted to EUR 6,338 thousand as
at December 31, 2021
— Optomed capitalizes development expenditure as an intangible asset
where all the related criteria mentioned in basis of preparation are met.
— This requires management to make judgement on when all of the criteria
for capitalization are met and when to cease capitalization and start amorti-
sing the asset.
— The carrying amount of capitalized development expense is depreciated
as a straight-line depreciation over 10 years of economic life and conse-
quently the capitalized expense has a signicant impact on the company’s
level of operating prot.
— Following from the element of management judgment in the capita-
lized development expense and the related depreciations, the signicance
of book value of the asset and the eect on the result of operations, the
correctness of capitalized development expense is perceived as a key audit
matter.
Our audit measures included, among others:
— Our audit measures have included the assessment of internal control
environment monitoring capitalization of development expense processes.
We have assessed if the capitalized development expenses in the nancial
period have met all the criteria.
— We have assessed the appropriateness of the principles related to capita-
lization, valuation and the write-o period of those development expense.
— We have assessed the judgements and assumptions made by the mana-
gement decisions related to capitalization, cease capitalization and amorti-
sing the asset.
— We have tested the correctness of capitalized screening device develop-
ment expense by sample tests and analytical substantive audit measures.
— We have assessed the appropriateness of valuation of capitalized
development expense and the depreciation period by reviewing the prot
projections of most signicant projects and the technical integrity of the
calculations and employed professional judgment in the testing of key as-
sumptions and their eect on sensitivity analyses.
— We involved KPMG’s valuation specialists in the audit for assessment of
the appropriateness of the assumptions employed and the technical integri-
ty of the calculations.
— In addition, we assessed the appropriate presentation of notes to the
accounts relating to capitalized development expense.
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Responsibilities of the Board of Directors and the Ma-
naging Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the pre-
paration of consolidated nancial statements that give a true and fair view in
accordance with International Financial Reporting Standards (IFRS) as adopted by
the EU, and of nancial statements that give a true and fair view in accordance
with the laws and regulations governing the preparation of nancial statements
in Finland and comply with statutory requirements. The Board of Directors and
the Managing Director are also responsible for such internal control as they
determine is necessary to enable the preparation of nancial statements that
are free from material misstatement, whether due to fraud or error.
In preparing the nancial statements, the Board of Directors and the Managing
Director are responsible for assessing the parent company’s and the group’s
ability to continue as a going concern, disclosing, as applicable, matters relating
to going concern and using the going concern basis of accounting. The nancial
statements are prepared using the going concern basis of accounting unless
there is an intention to liquidate the parent company or the group or cease
operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial
Statements
Our objectives are to obtain reasonable assurance about whether the nancial
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. Rea-
sonable assurance is a high level of assurance but is not a guarantee that an
audit conducted in accordance with good auditing practice will always detect
a material misstatement when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in the aggregate, they could
reasonably be expected to inuence the economic decisions of users taken on
the basis of the nancial statements.
As part of an audit in accordance with good auditing practice, we exercise
professional judgment and maintain professional skepticism throughout the
audit. We also:
— Identify and assess the risks of material misstatement of the nancial sta-
tements, whether due to fraud or error, design and perform audit procedures
responsive to those risks, and obtain audit evidence that is sucient and ap-
propriate 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 eectiveness of the parent
company’s or the group’s internal control.
— Evaluate the appropriateness of accounting policies used and the reasonable-
ness of accounting estimates and related disclosures made by management.
Optomed Oyj Auditor’s Report 17 February 2022
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— Conclude on the appropriateness of the Board of Directors’ and the Managing
Director’s use of the going concern basis of accounting and based on the audit
evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast signicant 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 nancial 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 nancial state-
ments, including the disclosures, and whether the nancial statements represent
the underlying transactions and events so that the nancial statements give a
true and fair view.
— Obtain sucient appropriate audit evidence regarding the nancial informa-
tion of the entities or business activities within the group to express an opinion
on the consolidated nancial 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 signicant audit ndings,
including any signicant deciencies 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 com-
municate 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 de-
termine those matters that were of most signicance in the audit of the nancial
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 benets of such communication.
Other Reporting Requirements
Information on our audit engagement
We were rst appointed as auditors by the Annual General Meeting on 11 May
2016, and our appointment represents a total period of uninterrupted engage-
ment of 6 years. Optomed Oyj has become a Public Interest Entity 5 December
2019 and we have been auditors all that time.
Other Information
The Board of Directors and the Managing Director are responsible for the other
information. The other information comprises the report of the Board of Dire-
ctors and the information included in the Annual Report, but does not include
Optomed Oyj Auditor’s Report 17 February 2022
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145
the nancial statements and our auditor’s report thereon. We have obtained
the report of the Board of Directors prior to the date of this auditor’s report,
and the Annual Report is expected to be made available to us after that date.
Our opinion on the nancial statements does not cover the other information.
In connection with our audit of the nancial statements, our responsibility is to
read the other information identied above and, in doing so, consider whether
the other information is materially inconsistent with the nancial 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 con-
sistent with the information in the nancial 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.
Oulu 17 February 2022
KPMG OY AB
TAPIO RAAPPANA
Authorised Public Accountant, KHT
Optomed Oyj Auditor’s Report 17 February 2022
95
KPMG Oy Ab
Töölönlahdenkatu 3 A
PL 1037
00101 HELSINKI
Puhelin 020 760 3000
www.kpmg.fi
KPMG Oy Ab, a Finnish limited liability company and a member firm of the KPMG network of independent
member firms affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.
Y-tunnus 1805485-9
DomicileKotipaikka Helsinki
Independent Auditor’s Reasonable Assurance Report
on Optomed Oyj ESEF Financial Statements
To the Board of Directors of Optomed Oyj
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 Optomed Oyj digital files
[7437009IVYWGEE4S7B77-2021-12-31_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 Managing Director
The Board of Directors and Managing Director 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 Managing Director 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.
Optomed Oyj
Independent Auditor’s Reasonable Assurance Report on
ESEF Financial Statements
3 March, 2022
2
Opinion
In our opinion, the consolidated financial statements included in the ESEF financial statements of Optomed
Oyj identified as [7437009IVYWGEE4S7B77-2021-12-31_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 Optomed Oyj for the year ended 31
December, 2021 is set out in our Auditor’s Report dated 17 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 3 March, 2022
KPMG OY AB
TAPIO RAAPPANA
Authorised Public Accountant, KHT
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