ANNUAL REPORT
EUROPRIS ASA 2022
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Content
About Europris ������������������������������������������������������������������� 4
Key gures ������������������������������������������������������������������������ 7
Letter from the CEO ���������������������������������������������������������� 8
Directors’ report ���������������������������������������������������������������10
The board ������������������������������������������������������������������������ 20
Corporate governance ���������������������������������������������������� 22
Sustainability report ��������������������������������������������������������� 31
The group management �������������������������������������������������� 81
Consolidated nancial statements ���������������������������������� 83
Parent company nancial statements ��������������������������� 121
Declaration to the annual report ������������������������������������135
Alternative performance measures denitions �������������136
Independent auditor’s report �����������������������������������������138
Shareholder information ������������������������������������������������ 143
Content
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Europris –
Norway´s #1 discount variety retailer
30 years of consecutive growth
1992
Founded by
Wiggo Erichsen
2004
Acquired by IK
Investment Partners
2015
Listing on Oslo
Stock Exchange
2006
Store #150
2017
Store #250
2012
2013
Acquired by Nordic
Capital
2021
2022
1 million customer
club members
Acquired 67%
of Strikkemekka
JV with Tokmanni
and opened Shanghai
sourcing ofce
Store #100
2000
2021
Acquired 67% of
Lekekassen and
Lunehjem
5
Number
of stores
276
6
new stores
relocated/
expanded
stores
10
modernised
stores
More than
1.2 miion
customer club
members
6
Busine
acumen
Proactive
Simple
Clear
Positive
aitude
Europris´values
7
(Amounts in NOK million)
FY 2022 FY 2021
GROUP KEY INCOME STATEMENT FIGURES
Sales directly operated stores 7,518 7,438
Sales from partly owned subsidiaries 745 423
Sales from wholesale to franchise stores 666 707
Franchise fees and other income 87 80
Total operating income
9,016 8,648
% growth in total operating income 4�3% 7�9%
Cost of goods sold 4,833 4,592
Gross prot
4,183 4,056
Gross margin
46�4% 46�9%
Opex
2,132 1,973
Opex-to-sales ratio
23�6% 22�8%
EBITDA
2,051 2,083
EBITDA margin
22�8% 24�1%
EBIT (Operating prot)
1,440 1,512
EBIT margin (Operating prot margin)
16�0% 17�5%
Net prot
1,042 1,104
Prot attributable to owners of the parent 1,020 1,082
Earnings per share (in NOK) 6.34 6.72
Dividend per share (in NOK) 3.75 4.00
GROUP KEY CASH FLOW AND BALANCE SHEET FIGURES
Net change in working capital (374) (139)
Capital expenditure 143 131
Financial debt
3,105 3,010
Cash
464 570
Net debt
2,641 2,440
- Lease liabilities
2,015 1,914
Net debt ex lease liabilities
626 526
Cash and liquidity reserves
1,896 1,981
EUROPRIS CHAIN KEY FIGURES
Total chain sales 8,586 8,569
% growth in total chain sales 0�2% 2�2%
% growth in like-for-like chain sales (1.1%) 1�5%
Total number of chain stores at end of period 276 270
- Directly operated stores 249 242
- Franchise stores 27 28
* For denitions and reconciliations of APMs, please see page 136
Key figures
8
Letter from the CEO
From good to great
We consolidated our position as the market leader
in the anniversary year of 2022. After 30 years of
continuous sales growth, the value of our brand is
greater than ever.
I would extend my heartiest thanks to all the
employees who have contributed to making 2022
another year of progress for us.
A strong market position has been built
by offering a campaign-driven
low-price concept with a broad
range of products which varies
seasonally. Our customers have
great condence in us and
expect attractive prices for
quality products suited to the
season.
MediaCom’s annual cust-
omer survey* conrmed our
position once again. We were
ranked highest for price position
(Which chains do you think have
generally low prices?), campaigns
(Where do you think you can get a
bargain?) and seasonally tailored product
offers (Which chains do you think have a
seasonal range?).
During recent years, we have experienced
increased customer recruitment. Many new shoppers
were attracted during the pandemic. At the same
time, we have steadily recruited more members to our
Mer customer club, which currently exceeds 1.2
million participants.
We have placed great emphasis throughout on
giving new and existing customers the best possible
shopping experience. Upgrading a number of
important categories has also lifted store standards
and the product range.
In parallel with this, our able personnel have
enhanced customer service. The visible result of that
work is again reected in the 2022 customer survey,
which shows new top scores for product range and
customer service. Satised customers return more
often, as reected in an increased shopping
frequency at our stores
We will maintain our efforts to
improve the customer experience
in order to ensure that they
continue to shop with us and
thereby “pay less – save more”
in a challenging time.
In December, we provided a
detailed update for important
players in the capital market.
The theme for this review was
“from good to great”. In a series
of presentations, we took our
audience on a voyage through the
developments which have made us
what we are today and, not least, a
possible journey to new heights.
How are we going to get even better? Looking
ahead, we’re going to do more of the things which
have made us good. In addition, we have accepted a
clear commitment to sustainability. The four compo-
nents in our new strategy are to:
• improve the customer experience
• drive customer growth
• strengthen price and cost position
• be a responsible societal player.
* MediaCom Brand Tracker 2022, across Europris, Clas Ohlson, Nille, Jysk, Biltema, Coop OBS, Normal, Rusta and Jula.
9
We have set ourselves the goal of achieving net zero
emissions by 2050 in line with the Paris agreement, and
our commitment to join the Science-Based Target initi-
ative has been approved already. In this way, we are
setting clear demands for ourselves to work even more
purposefully on sustainability in all parts of our company.
At the same time, we have made clear our
commitment to being a more active player in the many
local communities which host our 276 stores around
Norway. The demanding pandemic showed us precisely
how important these outlets were for many residents
and communities.
We want to contribute to active and ourishing local
communities by establishing closer collaboration with
residents, businesses and voluntary organisations.
During the rst post-pandemic year, customers and
industry faced new and difcult challenges. Record
ination – particularly high electricity prices and
increased interest rates – have put great pressure on
household nances. As a result, we’ve seen a marked
change in consumer behaviour. Customers have
become more price-conscious and there’s been a
substantial decline in investment purchases.
Everyone has to think along new lines to adapt to the
new pattern of demand. We believe that this
development will continue through 2023, and that all
retail companies will have to continue adjusting actively
to an increasingly price-conscious market.
All of us are experiencing the same storm, but we’re
not all in the same boat. In our view, the change in
customer behaviour ts well with our concept and very
strong price position. We ended 2022 with solid sales
growth, and are condent that our concept will continue
to take market share in the time to come.
We will work hard to ensure that people
pay less – save more.
Espen Eldal
CEO of Europris ASA
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Directors’ report
Highlights of 2022
The group set another record for sales in 2022,
thereby delivering 30 years of consecutive growth.
Europris has emerged stronger from the pandemic and
has maintained the higher level of sales established in
recent years. Total group sales exceeded NOK 9 billion
in 2022. Net prot declined from the record in 2021, but
remained strong with more than NOK 1 billion attribut-
able to the majority.
Household nances became tougher in 2022 as a
result of rising interest rates, higher costs for electricity,
fuel and food, and ination overall. Europris plays an
important role in these economic conditions through its
low-price concept combined with weekly strong
campaigns and broad product offering.
The Europris chain has proved relevant in a more
demanding retail market, where customers expect even
better value for money and where campaigns provide
an increased share of sales. Consumables drove sales
growth in 2022 and thereby accounted for a higher
share of total sales. The Europris concept is exible,
and the organisation has done a tremendous job in
tuning campaigns and product offerings in line with
market sentiment.
Customers were reluctant to make investment
purchases, but since products with a price point above
NOK 1,000 accounted for only three per cent of sales in
2022, this has been manageable. Such sales declined
by 21.5 per cent, while sales for products with a price
point below NOK 1,000 increased by 1.1 per cent. The
effect of lower sales for high-value items was most
noticeable during the summer season, when Europris
sells its largest share of such products.
Where Covid-19 is concerned, anti-infection measures
and restrictions were in place until mid-February 2022.
Unlike 2021, when nine per cent of the chain’s stores
were closed during the rst half of the year, all stores
were open throughout 2022. The pandemic had a
negative effect on sickness absence, which rose in
2022. This was another challenging year for all Europris
employees, who handled the difculties in an impressive
manner. It was comforting to see that employee
engagement scores remained at a high level in 2022.
After two summers with travel restrictions, Nor-
wegians again travelled abroad in 2022 – both for
holidays and for cross-border border shopping. While
the latter was not back to pre-pandemic levels, it did
increase. The four stores closest to the Swedish border
saw sales decline in 2022. Compared with 2019,
however, sales growth for these stores was similar to
that of the overall chain at around 30 per cent.
Given the signicant effects of Covid-19 on consumer
patterns in recent years, the group has found it useful to
view sales developments for the Europris chain and for
the market as a whole over the past three years. As
illustrated in the table below, Europris has outperformed
the market with a combined three-year growth of 30.2
per cent, compared with 19.7 per cent for variety retail
and 17.2 per cent for total retail.
* Virke retail index (using gures reported by Statistics Norway)
** Kvarud Analyse shopping centre index
Compliance with international sustainability standards
is of great importance to the group. It is satisfying to
have maintained a B score for its carbon disclosure
project (CDP) reporting in 2022. Europris aims to cut
CO
2
emissions in line with the Paris agreement, with the
ambition of reaching net zero by 2050 in accordance
with the Science-Based Targets initiative (SBTi). It is
therefore pleased that its comittment to science-based
targets has been ofcially approved, and the group is
currently in a mapping phase. The group set sustain-
ability targets in 2022 which will be followed up system-
atically on a regular basis. Europris has taken measures
to reduce its environmental footprint, and is proud to
have cut its GHG emissions in 2022 by 21 per cent.
More about these results can be found under ”Our
climate prole” on pages 49-57.
In addition to taking over one franchise store, Europris
completed one acquisition in 2022 by taking a 67 per
cent stake in the Strikkemekka group (consolidated with
effect from July 2022). Strikkemekka.no is the largest
revenue contributor in the Strikkemekka group, and the
acquisition has strengthened Europris’ online presence
in yarn.
Sales growth 2020 2021 2022
Three years
combined
Virke: total retail*
+10�0% +4�6% +2�6% +17�2%
Virke: groceries*
+15�9% -0�2% -3�0% +12�7%
Virke: variety retail*
+18�5% -0�6% +1�8% +19�7%
Kvarud shopping
centre index**
+4�0% +3�6% +4�4% +12�0%
Europris chain
+27.8% +2.2% +0.2% +30.2%
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The group has not been directly affected by the war in
Ukraine. It has had very limited sourcing from Russia
and Ukraine, and all sourcing from Russia was stopped.
Global disturbances in supply chains have not affected
the group. It has a long-term collaboration with a large
global shipping company securing capacity on ships
bringing goods from Asia.
Business operations and strategy
Europris is Norway’s largest discount variety retailer
by sales, and employs more than 3,000 people. The
group’s merchandise is sold through the Europris chain,
which consisted at 31 December 2022 of a network of
276 stores throughout Norway. Of these, 249 were
directly owned by the group and 27 operated as
franchise stores. In addition, Europris has a 67 per cent
stake in the e-commerce stores Lekekassen,
Lunehjem, Strikkemekka and Designhandel. The
group’s head ofce is located in Fredrikstad, Norway.
Europris has a exible business model which delivers
a unique value proposition for shoppers by offering a
broad range of quality private-label and branded
merchandise across 15 product categories. The stores
are designed to facilitate a consistent, easy and
efcient shopping experience with a dened layout,
making use of distinctive shop-in-shop concepts.
Europris is a campaign-driven low-price retailer. It
strives to ensure that advertised products are readily
available to customers across all its stores throughout
the weekly campaign period.
The group employs a low-cost operating model, with
attention concentrated on efciency across the entire
value chain from factory to customer. It aims to maintain
a low cost base through optimised and efcient
sourcing, logistics and distribution processes. Goods
are mainly sourced directly from suppliers in large
volumes. High-quality sourcing and development of
private label products are central to the group’s value
proposition, and it benets from its cooperation with
retailers Tokmanni in Finland and Sweden’s ÖoB.
Acquiring pure play online companies in 2021 and 2022
has also provided synergies for all the parties
concerned through joint sourcing of products and
services. In addition, the Lekekassen acquisition has
given Europris access to strong brands in the toy
category which are now included in the product offering
at the Europris stores�
The group contributes to local communities by
supporting such activities and organisations as sports
clubs, humanitarian and charitable organisations and
cultural festivals. Through its agreement with the City
Mission of the Church of Norway since 2016, the group
helps to improve conditions for people in difcult
circumstances. Its membership of the Norwegian
Retailers Environment Fund allows it to contribute to
local and global initiatives on reducing plastic waste.
The group’s key strategic initiatives were updated in
2022, adding a fourth element to be more explicit about
the social and environmental responsibility which the
group already takes:
1. strengthen the price and cost position
2. improve the customer experience
3. drive customer growth
4. act responsibly.
As part of acting responsibly the group updated its
sustainability strategy in 2022, focusing on the four
main areas: our climate prole, our products, our people
and our social responsibility.
Operational review
Concept and category development
Campaign-driven discount retail is a cornerstone of
Europris, and it is reassuring to see this engine con-
tinuing to drive trafc and sales even in a more
challenging retail environment. Its 30th anniversary in
2022 was celebrated with customers throughout the
year, involving several very attractive campaign weeks.
The pet food and accessories category has been a
strong performer over time, and was revitalised in 2022.
The shop-in-shop was renewed and rebuilt to improve
the customer experience and drive sales. New
sales-promoting elements were introduced to make the
category more attractive and enhance the overall
customer impression. The handyman and DIY category
and the toy category were also upgraded in 2022.
Where the toy category is concerned, the upgrade
included both a modernised lay-out and an updated
product range developed in cooperation with
part-owned subsidiary Lekekassen. The upgrades have
been well received by customers and subsequent
growth has been higher than the average performance
across categories.
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e-CRM
Europris had more than 1,250,000 members in its Mer
customer club at 31 December 2022, an increase of 22
per cent from 31 December 2021. Mer members are
overall more loyal to Europris, with a higher shopping
frequency and a larger average basket value than
non-members.
More than 750,000 people subscribe to the weekly
digital newsletter. Analysis of membership data from the
Mer customer club is used to improve personalised
digital marketing as part of a planned gradual transition
from printed leaets to digital messaging. Over time, the
aim is to increase the frequency of store visits through
better-targeted digital communication aimed both at
existing customers and at reaching new customers.
Greater engagement can be seen when communication
is personalised and perceived to be more relevant to the
recipient. Tests have also demonstrated that average
basket value is somewhat higher for those exposed to
personalised content. Furthermore, customer communi
-
cation has achieved a better response when perceived
to a greater extent to come from local stores rather than
centrally from the chain.
Europris is testing the use of articial intelligence in
digital advertising, with data from the Mer customer club
being used to boost trafc both to Europris.no and to the
physical stores. Segmented digital newsletters are
distributed together with social media (SoMe)
campaigns to drive trafc to the stores. Autosync linking
of segmented Mer customers directly to different SoMe
platforms is a cost-effective way to ensure more
relevant communication.
Europris launched an app for its Mer members in
2022, which had been downloaded by more than 50,000
members at 31 December 2022. Current functionality
includes an overview of campaigns, access to the digital
direct marketing leaet, visibility of xed Mer deals,
overview of any personal coupons, a store locator and
receipts from all previous shopping trips. Members
using the app have a higher shopping frequency than
those who have not downloaded the app.
Europris works continuously to improve the customer
interface on its website, and 2022 was no exception in
this respect. Improvements during the year made it
easier for customers to navigate across the different
categories. Ratings and reviews for selected products
were launched on the website. Customer information for
some of the higher-value items on Europris.no has been
improved by combining the use of text, video and
augmented reality (AR) technology. The AR functionality
allows customers to use their mobile phones to place
products where they wish to see them and to nd out if
they t. In addition, users can zoom in to see product
details close up. Customers using this technology have
a higher conversion rate than those who do not. Store
employees can also use it to give customers live
demonstrations of products not on display in the stores.
E-commerce
Europris believes online shopping to be more of a
“specialist’s game”. It has therefore adjusted its strategy
for online sales, scaling down products offered for sale
on Europris.no and turning its attention instead to
investing in pure play online companies. The online
product offering and delivery options at Europris.no
were adjusted in 2022. While this change was expected
to have a negative effect on online sales, it was also
expected to enhance the customer’s online shopping
experience and to improve the protability of online
sales.
Sales from Europris.no in 2022 amounted to NOK 103
million (NOK 147 million). A decline was expected, both
from the changes implemented and because click and
collect sales were boosted in 2021 by temporary store
closures imposed under Covid-19 restrictions. Reduced
demand for higher-value items also had a negative
impact on online sales in 2022.
The Lekekassen group had sales of NOK 622 million
for 2022, up by 5.3 per cent. Sales declined in Norway,
while both Sweden and Denmark (launched mid-
September 2021) delivered signicant rises in turnover.
EBITDA was NOK 99 million (NOK 110 million), reect-
ing the negative effect of lower gross margins.
The Strikkemekka group reported sales of NOK 193
million for the year. Higher sales compared with 2021
reected increases from Strikkemekka in Norway and
from the launch of Yarnmania in Sweden and Denmark,
while Designhandel saw sales decline.
Store estate
Europris opened six new stores in 2022, of which
three were in Greater Oslo. New stores in 2022 have
performed better than expected on the basis of
business cases. The network comprised 276 outlets at
31 December 2022, with a healthy pipeline of new
stores. The board has approved an additional nine
stores for 2023 and beyond, two of which are subject to
a planning permission process.
13
In addition to opening new stores, Europris relocated
six stores and completed 21 store modernisations/
expansions during 2022.
Central warehouse
Expansion of both low- and high-bay areas at the
central warehouse in Moss began in 2022 and is due to
be completed in 2023. Automation of the expanded
high-bay area is expected to be completed in the rst
half of 2024. The lease of the old central warehouse at
Øra in Fredrikstad will run to 30 June 2024, securing
capacity until the expansion in Moss has been nalised.
After vacating the Øra facility, Europris will operate from
a single central warehouse.
Total investment in automating the expanded high-bay
area is estimated at NOK 100 million. NOK 15 million of
this was paid in 2021 and NOK 10 million in 2022, while
payments are expected to be NOK 55-60 million in 2023
and NOK 15-20 million in 2024.
Automation of the shuttle system for picking goods in
the low-bay area was delayed owing to software issues
as well as to the need to change some hardware
components in order to improve the stability of the
solution. This stabilisation was achieved in the second
half of 2022, and the efciency gain has been in line
with the business case.
Financial review
Income statement
Total operating income for 2022 amounted to NOK
9,016 million (NOK 8,648 million), up by 4.3 per cent.
Sales rose by 0.7 per cent when excluding structural
growth from acquisitions*. The Europris chain experi-
enced a like-for-like sales decline of 1.1 per cent.
Gross prot for the group amounted to NOK 4,183
million (NOK 4,056 million). The gross margin was 46.4
per cent (46.9 per cent), a decrease of 0.5 percentage
points. The group recognised a net unrealised loss of
NOK 14 million (gain of NOK 49 million) on hedging
contracts and accounts payable. This had a negative
effect of 0.7 percentage points on the change in margin.
Opex came to NOK 2,132 million (NOK 1,973 million).
It was affected by structural growth, an increase in
directly operated stores from 242 to 249, and ination.
Operating expenses were 23.6 per cent (22.8 per cent)
of group revenue.
EBITDA was NOK 2,051 million (NOK 2,083 million),
down by NOK 32 million or 1.5 per cent. Excluding
structural growth from acquisitions, EBITDA declined by
three per cent from 2021. The EBITDA margin was 22.8
per cent (24.1 per cent), down by 1.3 percentage points.
Operating prot amounted to NOK 1,440 million (NOK
1,512 million), down by NOK 71 million or 4.7 per cent.
Net unrealised prot on interest swaps was NOK
39 million in 2022 (unrealised prot of NOK 26 million),
which thereby reduced total interest expenses charged.
Prot before tax was NOK 1,337 million (NOK 1,418
million).
Income tax expense was NOK 295 million
(NOK 314 million), giving an effective tax rate of
22.1 per cent (22.1 per cent).
Net prot for 2022 was NOK 1,042 million
(NOK 1,104 million), down by NOK 62 million. Net
prot attributable to owners of the parent company was
NOK 1,020 million (NOK 1,082 million).
Earnings per share in 2022 were NOK 6.34,
compared with NOK 6.72 in 2021.
Cash ow
Net cash ow generated from operating activities was
NOK 1,248 million (NOK 1,591 million). Net change in
working capital was negative at NOK 374 million
(negative at NOK 139 million). Working capital was
affected by a higher level of inventory, reecting
* Lunehjem consolidated from March 2021 (ie, January and February 2022 considered to be structural growth), Lekekassen consolidated from
August 2021 (ie, January to July 2022 considered to be structural growth) and the Strikkemekka group consolidated from July 2022
(ie, July to December considered to be structural growth)
Month Store County
March Frøya Trøndelag
May Lagunen Vestland
June Fjellhamar Viken
June Setermoen Troms
September Ensjø Oslo
November Nittedal Viken
New store openings in 2022
14
increased purchase prices and greater volumes of
seasonal summer items, as well as timing differences
for accounts payable and other accrued expenses.
Inventory amounted to NOK 2.4 billion at 31 December
2022, an increase of NOK 387 million (19.4 per cent).
This rise was wholly attributable to value growth, since
volumes were down slightly from 31 December 2021.
The inventory was healthy, with more than 90 per cent
less than a year old.
Net cash ow used in investing activities was negative
at NOK 209 million (negative at NOK 648 million). In
2022, the group acquired 67 per cent of the Strikke
-
mekka group for NOK 88.4 million. In 2021, it acquired
67 per cent of Lekekassen for NOK 501 million.
Capital expenditure amounted to NOK 143 million
(NOK 131 million). The increase from 2021 reected
more store projects.
Net cash from nancing activities was negative at
NOK 1,144 million (negative at NOK 877 million). A
dividend of NOK 644 million was paid in 2022, up from
NOK 434 million in 2021. In addition, a dividend of NOK
16.5 million (NOK 0) was paid to non-controlling
interests in subsidiaries and NOK 482 million (NOK 449
million) in principal was paid on lease liabilities.
The net change in cash for 2022 was an outow of
NOK 106 million (inow of NOK 30 million).
Financial position and liquidity
Financial debt at 31 December 2022 was NOK 3,105
million (NOK 3,010 million), falling to NOK 1,090 million
(NOK 1,096 million) when adjusted for lease liabilities.
Net debt at 31 December 2022 amounted to NOK
2,641 million (NOK 2,440 million), and fell to NOK 626
million (NOK 526 million) when adjusted for lease
liabilities.
Cash and liquidity reserves for the group at 31
December 2022 amounted to NOK 1,896 million (NOK
1,981 million).
Equity
Equity at 31 December 2022 was NOK 3,283 million
(NOK 2,889 million), representing an equity ratio for the
group of 35.6 per cent (33.4 per cent). The increase in
equity derived mainly from the net prot of NOK 1,042
less NOK 660 million in dividend paid.
Pursuant to section 3-3a of the Norwegian Accounting
Act, the board conrms that the nancial statements
have been prepared on the assumption that the group is
a going concern.
Allocation of prot
Europris ASA (the parent company) posted a prot of
NOK 616 million for 2022.
The board proposes the following allocation
(NOK million):
The Europris group achieved a prot of NOK 1,042
million in 2022. Prot attributable to the owners of the
parent company amounted to NOK 1,020 million.
An ordinary dividend for 2022 of NOK 2.75 per share
will be proposed by the board of Europris ASA to the
general meeting. This represents a 10 per cent increase
from the ordinary dividend of NOK 2.50 for 2021. To
reect the strong nancial performance and solid
nancial position after a period still positively affected by
Covid-19, the board also proposes to pay an additional
dividend of NOK 1.00 per share for 2022. The total
proposed dividend will thereby be NOK 3.75 per share,
amounting to NOK 604 million excluding treasury
shares. This proposal represents a pay-out ratio of 59.1
per cent of the majority’s share of the prot.
Organisation and corporate
social responsibility
Employees and organisation
The group has 3,444 employees, of whom 59 per cent
are women. Employee engagement surveys for 2022
yielded results on a par with the strong ndings from
earlier years. Employees are very satised with their
working day, have a high level of job satisfaction, and
feel well equipped to manage their work. It is also
reassuring that employees report that they are very
satised with their managers.
Europris pays great attention to developing its
employees. A combined strategy and leadership
Ordinary dividend 459
Additional dividend 167
Retained earnings ( 1 0 )
Total 616
15
programme for managers launched in 2021 continued
in 2022. Several physical gatherings were held during
the year, concentrating on innovation, change
management and how Europris can contribute to the
circular economy.
Europris celebrated its 30th anniversary with an
exciting and educational day, which ended with a grand
party attended by 1,600 of the employees.
Acknowledging strong performances and celebrating
winners play an important part in strengthening the
group’s corporate culture, and several awards were
handed out to proud employees.
Europris repeated its annual sustainability week for all
employees in October 2022. The goal is to increase
awareness of and knowledge about all environmental,
social and governance (ESG) issues throughout the
organisation. The updated strategy, with its four key
areas covering “our climate prole”, “our products”, “our
people” and “our social responsibilities”, was presented
to the whole workforce.
All Europris employees faced another demanding
year in 2022, and returning to normal after Covid-19
was accompanied by an increase in sickness absence.
The workforce has handled these conditions in an
impressive manner, making extra efforts to keep stores
open and the logistics centre going.
The group is committed to reducing sick leave, and
this is followed up closely on a monthly basis. During
2022, representatives from the HR department travelled
over the country holding several full-day face-to-face
sessions, in total covering all store managers and
management at the warehouse. Sickness absence
nevertheless increased by 0.3 percentage points in
2022 to 9.1 per cent and equals a total of 44,829
sickness days (42,220 in 2021). This rise reected more
short-term absences. Like the market in general,
Europris also experienced a rise in Covid-19 infections,
common colds, u, and stomach infections compared
with 2021.
No severe accidents or injuries which resulted in
serious personal injury or material losses were reported
in 2022. A total of 10 lost-time injuries were recorded to
31 December 2022, none of which resulted in long-term
absence. The group has a dedicated commitment to
occupational health, environment and safety. If an
accident or injury occurs, remedial action to prevent it
recurring is always assessed and implemented
whenever suitable measures can be adopted.
Equal opportunities and discrimination
Europris’ policy is to promote equal human rights and
opportunities, and to prevent discrimination on the
grounds of age, gender, religion, ethnicity, nationality,
disability, sexual orientation, sexual identity or stage of
life. The group is working actively to apply Norway’s
Equality and Anti-Discrimination Act to its business,
including in recruitment and promotion, training and
development, pay and working conditions, and protec-
tion against any type of harassment.
Europris is a workplace with equal opportunities in all
areas. Where gender equality in the parent company
Europris ASA is concerned, women accounted for 43
per cent of directors in 2022. Actual conditions in the
organisation related to gender equality, and the
measures taken to full the duty to act in accordance
with section 26 of the Equality and Anti-Discrimination
Act, are described in more detail in the section on
”Our people”, see pages 59-64.
Environment, business ethics and
corporate social responsibility
The group does not pollute the natural environment
beyond the level considered normal for its type of
business. It works actively to prevent adverse environ-
mental effects and ethics-related issues, human rights
violations and corruption. Europris works with suppliers
to ensure that products are produced in clean and safe
environments, that workers are treated with respect and
earn a reasonable wage, and that suppliers work within
relevant local laws and regulations.
The Transparency Act came into effect in Norway on
1 July 2022. Its purpose is to promote respect by
companies for basic human rights and decent working
conditions along supply chains. As a member of Ethical
Trade Norway, the group is committed to working
actively on due diligence for responsible business
conduct, in addition to adhering to international guide
-
lines and standards such as the OECD, the UN Guiding
Principles on Human Rights and the Paris agreement.
Europris has drawn up its own policy and guidelines for
ethical trade (code of conduct) and also aims to ensure
that suppliers are certied through Amfori BSCI where
Sickness absence
2022
2021
Group
9�1%
8�8%
16
relevant. The group’s due diligence assessments in
accordance with the Transparency Act are publicly
available at Europris ASA - about us - corporate gover-
nance - policies. More information in this area can be
found on pages 47-48.
Pursuant to section 3-3c of the Norwegian Accounting
Act, the board has drawn up guidelines for business
ethics and corporate social responsibility. The main
principles are covered in the company’s sustainability
policy, available on its website at https://investor.
europris.no. Europris’ activities in the area of corporate
social responsibility, including human rights, labour
rights, the working environment, equality, discrimination,
anti-corruption and the natural environment are
described in more detail under ”Our people”, see
pages 59-64.
Corporate governance
The board and executive management of Europris
ASA review the group’s corporate governance principles
annually. Reporting accords with section 3-3b of the
Norwegian Accounting Act and the Norwegian code of
practice for corporate governance as updated most
recently on 14 October 2021. See pages 22-29 for a
detailed statement on corporate governance at Europris.
Europris ASA has taken out a directors’ and ofcers’
liability insurance policy for the group and its subsidi-
aries. This covers legal costs and personal liability for
directors and ofcers arising out of possible claims
made against them while serving on a board of directors
and or as an ofcer.
Transactions with related parties
No signicant transactions were conducted with
related parties in 2022.
Risk and risk management
The board pays great attention to risk in the value
chain, risk management and internal control proce-
dures, and reviews the company’s risk register annually.
Risk classication is subject to periodic review by
management to identify any change in classication and
to follow up any actions agreed in order to mitigate risks.
For each key category, risks are identied and classied
in accordance with the likelihood of their occurrence
and the potential impact should they occur.
The risk register focuses on the following key risk
categories:
• nancial
• market
• operational
• strategic.
The key risks identied are presented in the tables
below.
Risk type Description of risk Internal control
Interest rate risk.
Interest-rate volatility
affecting the group’s
interest costs.
The nancial policy includes hedging of interest rates. Sixty per cent of the group’s long-
term loans is currently hedged: NOK 300 million maturing in 2027 and NOK 300 million
maturing in 2030.
Liquidity risk.
Increased indebtedness
affecting the group’s ability
to grow and posing a threat
of breaching nancial
covenants.
Projected cash ows are updated regularly, and the group has sufcient cash and credit faci-
lities available.
Credit risk.
Risk of customers
defaulting.
Europris has limited exposure to credit risk. The clear majority of revenue transactions
are settled by debit card or in cash. Trade receivables relate mainly to the group’s
franchisees, where losses on trade receivables have historically been limited.
Sales to B2B customers are still a relatively small part of total revenues and historically
involve limited losses.
Financial risk
17
Risk type Description of risk Internal control
Natural disaster,
conict,
pandemic, etc.
Natural disasters and
conicts may affect the
production and supply
of goods.
A pandemic, depending on
restrictions imposed and
customer behaviour, could
have either a positive or a
negative effect.
Europris has many suppliers, who are located in different geographic regions. The probability
that the entire value chain will be affected is therefore low. The group can adapt its range and
campaign offering on the basis of available goods. Online shopping and click and collect can
also be offered to customers as a substitute for shopping in physical stores.
Europris’ store network is spread over a large geographical area and consists mainly of
independent stores outside shopping centres, thereby limiting the risk that many of them will be
affected by the same restrictions/effects simultaneously. The product range consists mainly of
low-price products which all households need in their everyday lives.
Macroeconomic
environment.
Changes in the macro-
economic environment
which reduce consumer
spending.
The Europris concept is resilient in uncertain times, with a wide and accessible store network, a
broad product offering at low prices, and attractive campaigns. The wide range of products and
price points allows customers to trade up and down. The operating model is based on low costs
to keep sale prices as low as possible. Forecasting and planning models are detailed so that the
group can react fast if the economic outlook changes.
Competition.
Signicantly increased
competition in the market.
Management follows developments in the market closely through regular reporting of market
data as well as through its own competitor analyses. Price surveys are conducted systemati-
cally to monitor the group’s competitiveness on a continuous basis. Category development is
an important element, where Europris can, if desired, reduce its product offering in categories
facing strong competition while introducing new products in categories where competition is
less erce.
Digitalisation.
Change in shopping
patterns as a result
of digitalisation.
Europris has strengthened its online presence in some categories through the acquisition of
67 per cent stakes in Lekekassen, the Strikkemekka group and Lunehjem. Where sales of
products from Europris.no is concerned, parts of the product portfolio are available for click and
collect in the stores or for home delivery. Low-value products, less exposed to online shopping,
account for a large part of the range. This website’s main function is to provide customers with
good information and to use e-CRM to expand footfall to the physical stores.
The number of members in the Mer customer club has reached more than 1.2 million, and an
e-CRM system which permits personalised direct marketing is in place. Marketing is directed to
a greater extent at social and digital media.
Sustainability.
Change in shopping
patterns as a result
of sustainability.
Sustainability forms an integrated part of Europris’ strategy and is taken into account in
product development and strategic initiatives. In 2022 the group’s key strategic priority areas
were updated to highlight that sustainability is an integrated part of the group’s strategy.
Europris’ ambition is that, over time, all products sourced from the Shanghai ofce will come
from certied factories (BSCI). The group also conducts its own audits with its team at the
Shanghai ofce and has several employees at this ofce dedicated solely to sustainability and
supplier quality. A packaging expert, whose main job is to reduce packaging and contribute to
more efcient transport and thereby cut CO
2
emissions, is also in place at the Shanghai ofce.
Detailed programmes for reducing waste and energy consumption are in place for the stores,
the logistics centre and head ofce.
Purchasing
prices, including
currency, and
overall cost
development.
Increased purchasing
prices, including currency
rate volatility, and rises in
other costs�
Purchase prices and general cost developments will affect competitors in the same way,
and historically these types of cost increases have been absorbed by the market. To reduce
foreign currency risk, the group’s nancial policy (approved by the board annually) includes
a currency strategy. Purchase orders in USD and EUR are hedged for up to six months, which
allows sufcient time to adjust the retail price. Historically, this has proved to work well during
periods with large uctuations in the currency market.
Market risk
18
Risk type Description of risk Internal control
Central infra-
structure, property�
Loss of operating facilities
affecting operations or causing
serious injury to employees.
The group’s buildings are properly protected against re, and re drills are conducted
regularly. The group’s assets are covered by full-value insurance in addition to business
interruption policies.
IT infrastructure,
including cyber risk.
Damage to IT infrastructure. Europris has good routines for backup and data security. Extensive IT security
tests, both physical and digital, are carried out and deviations handled and
improved on an ongoing basis. Europris has agreements with third-party providers to
monitor logs continuously for rapid identication of any security breaches, and a cyber
incident agreement which ensures swift assistance should anything arise. Training of em
-
ployees is done on a continuous basis, to make them aware of risks and as a preventive
measure�
Product risk,
food risk, harm
to people, animals,
the environment
or property�
Risk if a product harms
people, animals or the
environment.
Europris uses reputable suppliers who are well-established and have good
expertise about their categories and product types. The majority of products
sourced from the Shanghai ofce are from certied factories (BSCI), in addition
to being audited by the team at the Shanghai ofce. The group performs quality tests
before approval and sale of products, in addition to random testing of food products.
Follow-up of suppliers with high-risk products has been intensied. Routines for product
withdrawals are established. Europris has insurance to cover product risk and any con
-
sequential damage.
Supply chain.
Disruption to the supply chain
leading to shortages of goods
in stores.
Europris has a xed agreement with a sound logistics company for inbound freight of
long-travelled goods. Two transport rms are used for outbound logistics and, if one fails,
volumes can be shifted to the other. Other transport methods can also be evaluated
should a need for this arise. Inventory levels in the stores are sufcient to manage for
some time without deliveries.
Regulation and
compliance.
Breach of regulatory or
legislative requirements
resulting in nancial penalties
and/or reputational damage.
The group has established policies and procedures with instructions in such areas as
ethical behaviour, diversity and equality, anti-corruption, anti-competitive behaviour, data
protection and GDPR, compliance and corporate governance. These are revised annual
-
ly by the board, and employee training is regularly conducted. Actions to ensure compli-
anse with the Transparency Act has been inplemented in 2022. The majority of products
sourced from the Shanghai ofce are from certied factories (BSCI), in addition to sup
-
plier audits conducted by the team at the Shanghai ofce and quality checks both at the
Shanghai ofce and the quality ofce in Norway. Europris conducts on-site inspections of
suppliers in addition to extensive product testing.
Reliance on key
management.
Loss of key personnel/
skills critical for business
operations.
Europris has a structured approach to succession planning and talent management. In
this work, all managers are evaluated and potential successors in both short and long
terms are identied. In addition, plans are implemented for retention, development and
training of key staff.
Operational risk
Risk type Description of risk Internal control
Concept and
category
development.
Lack of innovation entailing
lower margins and growth.
Europris has dedicated category teams which work systematically on concept and cate-
gory development. This is a strategic priority area for the group. The market and consum-
er trends are continuously monitored and the group can rapidly adapt to changes. Three
out of 15 categories were updated in 2022.
New store rollout.
Lack of protable new store
locations which affects the
group’s growth plans.
The property development team has a pipeline of potential locations and works contin-
uously to expand this list. The group maintains good relationships with landlords and is
working strategically with other retailers for co-location of stores. New store openings
must meet strict investment criteria and all are subject to board approval. Development
of new stores is monitored closely and shows that these have historically performed well.
Omnichannel and
e-commerce�
Incomplete development
of solutions and lack of
relevance for the customer.
In 2022, the group has updated its strategic plan for digitalisation, including omni-
channel and e-commerce. The group also made another acquisition of a pure online
player during 2022, in addition to two acquisitions in 2021, and strengthened its expertise
in this eld. The digital advisory board has been replaced by a new collaboration with the
partly owned subsidiaries.
Alliances and coop-
eration.
Improving sourcing prices
and co-developing PL range.
Europris has a collaboration with Tokmanni and ÖoB for sourcing and product develop
-
ment, in order to achieve better purchasing prices and to realise synergies. Europris and
Tokmanni also have a joint venture at the Shanghai ofce and opened a sourcing ofce
together in Vietnam in 2022. The group is also considering setting up and collaborating
with suppliers in eastern Europe. A collaboration with partly owned subsidiaries also aims
to realise synergies for both sides.
Strategic risk
19
Market developments and outlook
Household nances in Norway are more challenged,
with rising interest rates and higher prices for food,
energy and other necessities. Although private
consumption held up reasonably well during 2022, most
economists are cautious in their expectations for
consumer spending in the time to come.
Although Europris expects to have to ght hard for
its share of the wallet, these market conditions also
represent opportunities for companies able to stay
relevant to consumers and to offer good value for
money. The group is well positioned, with a well-
recognised low-price concept, strong campaigns, and
a broad and relevant product offering. Over time, it has
outperformed the retail market. The board is condent
that Europris will continue to play an increasingly
important role and to take market share.
The group’s long-term nancial and operational
ambitions remain unchanged:
• continue to deliver like-for-like growth above the
market over time
• target of opening an average of ve new stores net
per year, depending on the availability of locations
which meet strict requirements for return, and the
potential for relocations, expansions and moderni-
sations
• increase the EBITDA margin over time from
improved sourcing and a more cost-effective
value chain
• a dividend policy of paying out 50-60 per cent of net
prot while maintaining an efcient balance sheet.
The board emphasises that assessing the outlook
must take account of uncertainty.
Events after the reporting period
No material events have occurred since 31 December
2022�
Fredrikstad, 23 March 2023
THE BOARD OF DIRECTORS OF EUROPRIS ASA
Claus Juel-Jensen
Karl Svensson
Espen Eldal
CEO
Tom Vidar Rygh
Chair
Hege Bømark
Tone Fintland
Pål Wibe
Bente Sollid Storehaug
20
The board
Tom Vidar Rygh is an adviser to the Nordic Capital Funds. He holds a degree in
economics and business administration (siviløkonom) from the Norwegian School
of Economics (NHH). Rygh has held various leading executive positions in industrial
and financial companies, including executive vice president of Orkla ASA, CEO of SEB
Enskilda and partner in/CEO of NC Advisory AS – adviser to the Nordic Capital Funds. He has served as chair
and director of several companies in a number of sectors, including Telenor ASA, Oslo Børs, Carlsberg Brewer-
ies A/S, Storebrand ASA, Aktiv Kapital ASA, Eniro AB, Netcom ASA, Helly Hansen ASA, Dyno ASA, Industrikap-
ital Ltd, Actinor Shipping ASA, Borregaard Forests AS, Holberg Inc, Orkla Eiendom AS, Telia Overseas AB and
Baltic Beverage Holding AB. Rygh has also served as an adviser to a number of prominent investment groups,
such as TPG and the John Fredriksen group. He is regarded as independent of senior executives, material
business associates and the company’s major shareholders. Number of shares in Europris ASA: 620,227.
Hege Bømark is a director of AF-Gruppen ASA, OBOSbanken AS and the Institute
for Eating Disorders. She has also been a director of Oslo Areal ASA, Norgani Hotels
ASA, BWGHomes ASA, Norwegian Property ASA and Fornebu Utvikling ASA, all of
which are or have been listed companies. Prior to becoming a full-time professional
-
director, Bømark served as a project broker in AS Eiendomsutvikling and as a financial
analyst at Fearnley Finans AS and Orkla Finans AS. She holds a degree in economics and
business administration (siviløkonom) from the Norwegian School of Economics (NHH). Bømark is regarded as
independent of senior executives, material business associates and the company’s major shareholders.
Number of shares in Europris ASA: 8,129.
Tone Fintland has many years of experience as a senior executive in the pharmaceu
-
tical industry. She has functioned since 2016 as global procurement Director at TEVA
Pharmaceuticals, and has previously held similar positions in the Actavis Group and
Alpharma Inc. In addition, Fintland is a President of NIMA (the Norwegian Association
for Purchasing and Logistics) and NIMA Oslo Akershus Afliate. She holds a Bachelor
in Business Administration from the BI Norwegian Business School. Fintland is regarded as
independent of senior executives, material business associates and the company’s major shareholders.
Number of shares in Europris ASA: 21,000.
Tom Vidar Rygh
(chair)
Hege Bømark
Tone Fintland
21
Claus Juel-Jensen is a professional board member and has extensive boardroom
experience from different companies in food and non-food retail, food production and
wholesale in Germany, Denmark, Sweden and Norway. In his professional career, he
was the CEO of Netto Germany, a joint venture between Edeka Germany and Dansk
Supermarked Group, from 1995-2004 and after that CEO of Netto International (DK, DE, SE,
PL, UK) from 2005-2017.Juel-Jensen has extensive experience in the food-discount industry and the interna-
tionalisation of retail concepts. He holds a Master of Business Administration and an MSc from Copenhagen
Business School and the University of Cologne, and has the rank of captain in the Royal Danish Guard. Juel-
Jensen is regarded as independent of senior executives, material business associates and the company’s major
shareholders. Number of shares in Europris ASA: 17,304.
Karl Svensson
Claus Juel-Jensen
Pål Wibe
Bente Sollid Storehaug
Pål Wibe is an independent board professional, advisor and investor. He was the
Chief Executive Ofcer of XXL ASA from 2020 to 2022. Wibe has previously been the
CEO of Europris from 2014 to 2020. Prior to that appointment, he served as CEO of Nille
AS for almost seven years and CEO of Travel Retail Norway AS for two years. Before that,
he held various executive positions at ICA Ahold AB for six years and worked for ve years
in McKinsey & Co. Wibe holds a degree in economics and business administration (siviløkonom) from the
Norwegian School of Economics (NHH) and an MBA from the University of California at Berkeley. He is
regarded as independent of senior executives, material business associates and the company’s major
shareholders. Number of shares in Europris ASA: 408,572.
Bente Sollid Storehaug is CEO of Digital Hverdag and non-executive director of Polaris
Media, Hafslund, Nortel, Questback, Lumi Gruppen, Motor Gruppen and Eika Gruppen.
She is also chair of PlaceWiseGroup and Ocean Visioneering. Storehaug has been a
member of several policy advisory boards for government ministers in Norway.
She has also been appointed by the government to an expert committee on the future funding
of the Norwegian Broadcasting Corporation (NRK). Storehaug established her own internet consultancy in 1993,
which is listed today on Oslo Børs as Bouvet ASA. She is the youngest member of the Norwegian Association of
Editors. Storehaug is regarded as independent of senior executives, material business associates and the
company’s major shareholders. Number of shares in Europris ASA: 2,038.
Karl Svensson is a director of RuNor AS, the Svensson family’s special purpose vehicle
for its investment in Europris. He is partner of Zurich-based nancial advisory rm Lilja
Capital Advisory Partners. Svensson also has operational retail experience, having
previously worked for Runsvengruppen AB, the parent company of ÖoB. He graduated
from Uppsala University in 2003 with an MSc in business and economics. Svensson is
regarded as independent of senior executives, material business associates and the company’s major share-
holders, with the exception that Europris holds an option to acquire the remaining 80 per cent of the ÖoB shares.
Number of shares in Europris ASA: 281,891.
22
1. Implementation and reporting on
corporate governance
The board of Europris is conscious of its responsibility
for the development and implementation of internal
procedures and regulations to ensure that the group
complies with applicable principles for corporate
governance.
Europris is listed on Oslo Stock Exchange and
subject to reporting requirements for corporate gover
-
nance under the Norwegian Accounting Act as stock
exchange regulations. Europris complies with the
Norwegian Code of Practice for Corporate Governance
(the code), last revised on 14 October 2021, which is
available on the Norwegian Corporate Governance
Committee’s website at www.nues.no.
Application of the code is based on the “comply or
explain” principle and any deviation from the code is
explained under the relevant item. At 31 December
2022 Europris deviated from the recommendation in
one section of the code during 2022 pertaining to the
establishment of separate guidelines regulating
responses to takeover bids (section 14).
The principles and implementation of the code are
subject to annual reviews by the board and a statement
is included in the annual report in accordance with the
requirements of the continuing obligations for listed
companies from Oslo Stock Exchange as well as the
Norwegian code.
2. The business
Europris is Norway’s largest discount variety retailer
by sales. The group offers a broad range of quality own
brand and branded merchandise across a wide range of
product categories. The group’s merchandise is sold
through the Europris store chain, which consisted at 31
December 2022 of a network of 276 stores throughout
Norway. Of these, 249 are directly owned by the group
and 27 operate as franchise stores. In addition, Europris
has a 67 per cent stake in the Lekekassen, Lunehjem,
Strikkemekka and Designhandel e-commerce stores.
The group’s growth strategy remains unchanged, and
its expansion in discount variety retailing will continue
through both physical stores and the online channel.
The group’s head office and storage facilities are
located in Fredrikstad and Moss, Norway.
The company’s business purpose, as presented in
article 3 of the company’s articles of association, is as
follows: “The company’s business is commercial activity
in the European wholesale and retail market, or
business in relation to this, including issuing loans, and
collateral and issuing guarantees for group companies
and direct or indirect involvement in business with
similar or other company object, as well as other
business in relation to the above mentioned”.
The board has established clear objectives, strategies
and risk profiles for the group’s business activities, to
create value for its shareholders and to ensure that its
resources are utilised in an efficient, sustainable
manner to the benefit of all its stakeholders. Europris, as
a consumer group, actively seeks to reduce risk and the
potential for negative business effects by integrating
sustainability in its business strategy. This is an
approach which also creates opportunities for growth
and long-term value creation. Europris has developed
various policies providing business practice guidance,
including on sustainability, code of conduct, ethical
trade, anti-corruption, data protection, trade sanctions
and whistleblowing. These policies set the standards for
the behaviour which can be expected internally and
externally in order to build trust, loyalty and responsible
behaviour internally, and to prevent violations and
negative effects externally.
Europris’ sustainability policy and supplier code of
conduct are available from the group’s website at https://
investor.europris.no. The group’s objectives, strategies
and risk profile are described on pages 10-19 of the
Corporate governance
Europris ASA has made a strong commitment to ensuring trust in the group and to
enhancing shareholder value through effective decision-making and improved com-
munication between the management, the board of directors and the shareholders.
The group’s framework for corporate governance is intended to reduce business risk,
maximise value and utilise the group’s resources in an efficient, sustainable manner to
the benefit of shareholders, employees and society.
23
2022 annual report, while the group’s sustainability
efforts are described on pages 31-79.
Deviations from the code: None.
3. Equity and dividends
Capital structure
At 31 December 2022, the group’s equity totalled NOK
3,283 million, which corresponded to an equity ratio of
35.6 per cent. The board considers Europris’ capital
structure to be adequate in relation to the group’s
objectives, strategy and risk profile.
Dividend policy
Europris aims at a dividend pay-out ratio of 50-60 per
cent of the group’s net profit while maintaining an
efficient balance sheet. The group intends to provide
shareholders with a competitive return on invested
capital, taking into account its risk profile. It plans to pay
out surplus liquidity (funds not necessary for the group’s
day-to-day operations or to deliver on its strategy) in the
form of a dividend or by means of a capital reduction
through distribution to the shareholders. The group
considers whether the available liquidity should be used
for new investment or repayment of debt, instead of
being paid out as dividend. Subject to the approval of
the AGM, the aim is to pay dividend annually. Dividend
payments are subject to certain legal restrictions
pursuant to the Norwegian Public Limited Companies
Act and should also take account of the group’s capital
requirements and financial position as well as general
business conditions.
Based on the financial results for 2022 the board will
propose a dividend of NOK 2.75 per share. To reflect
the strong financial performance after a period still
positively affected by Covid-19, the board proposes to
pay an additional dividend of NOK 1.00 per share for
2022. In total, the proposed dividend is NOK 3.75 per
share. The proposed dividend represents 59.1 per cent
of the majority’s share of the profit. Europris’ leverage
policy is to run the business with moderate leverage and
to maintain an efficient balance sheet.
Board mandates
The annual general meeting on 21 April 2022 granted
two separate mandates to the Europris board. Both
mandates are valid until the next AGM in 2023, but in
any event no longer than to 30 June 2023. A separate
vote was held on each mandate. For supplementary
information, reference is made to the minutes of the
AGM in 2022.
• A mandate to increase the share capital of Europris
ASA by a maximum of NOK 16,696,888. The
mandate corresponds to ten per cent of the shares
and share capital of the company. It may be used
for necessary strengthening of the company’s equity
and the issue of new shares as consideration for the
acquisition of relevant businesses. As of 31
December 2022, the authorisation had not been
used�
• A mandate to repurchase Europris ASA’s own shares
up to a total nominal value of NOK 16,696,888.
The maximum amount that can be paid for each
share is NOK 100 and the minimum is NOK 10.
The mandate corresponds to ten per cent of the
shares and share capital. Shares acquired pursuant
to the mandate may be deleted in connection with a
later reduction of the registered share capital, used
as consideration shares with regard to the acqui-
sition of businesses or used in the company’s
incentive and investment schemes for employees,
executive management and the board of directors.
At 31 December 2022, the company owns
5,938,263 treasury shares�
Deviations from the code: None.
4. Equal treatment of shareholders
Europris has one class of shares and all shares have
equal rights. Each share has a nominal value of NOK
1.00 and carries one vote. Europris ASA owned
5,938,263 treasury shares at 31 December 2022�
The board has a mandate to increase the company’s
share capital which allows the board to waive the
pre-emptive right of existing shareholders. In the event
of such a capital increase, the reason for the transaction
and the waiver will be provided in a public announce-
ment. There were no such events in 2022.
Transactions involving treasury shares will be under
-
taken on the stock exchange or otherwise at the listed
price and reported immediately.
Deviations from the code: None.
24
5. Shares and negotiability
The Europris share is freely transferable on Oslo
Stock Exchange. No restrictions are set in the articles
of association on owning, trading or voting for shares.
Deviations from the code: None.
6. General meetings
The general meeting is the highest authority in
Europris ASA. It is open to all shareholders, and
Europris encourages shareholders to participate and
exercise their rights at the company’s general meetings.
In order to vote, the shareholder must be registered with
the Norwegian Central Securities Depository (VPS) at
the time of the general meeting.
Notification
The annual general meeting will be held each year
before 30 June. The next AGM is scheduled for 20 April
2023. Extraordinary general meetings may be called by
the board at any time. The auditor or shareholders
representing at least five per cent of the shares may call
in writing for an extraordinary general meeting to
discuss a specified matter�
Written notice of a general meeting, along with
supporting documents, is sent to all shareholders with a
known address at least 21 days prior to the date of the
meeting. Pursuant to article 7 of the articles of associ
-
ation, the notification and supporting documents need
not be sent to the shareholders if they are made
available to them on the group’s website at https://
investor.europris.no. Any shareholder may nevertheless
request that the documents be sent by mail by contact-
ing the investor relations department at Europris ASA or
by e-mail to ir@europris.no.
Registration and proxies
The registration deadline is normally five days before
the general meeting, pursuant to article 7 of the articles
of association, and all the necessary registration
information is provided in the notice.
Shareholders who are unable to attend may vote by
proxy. The notice of the meeting will contain more
detailed information about the procedure for appointing
a proxy, including an authorisation form which permits
separate votes for each item up for consideration at the
general meeting. In addition, a person will be appointed
who can act as proxy on behalf of shareholders.
The board may decide that shareholders can submit
their votes in writing, including the use of electronic
communication, during a period before the general
meeting.
Agenda and execution
The agenda for the general meeting is determined by
the board, and the main items which it must contain for
the AGM are specified in article 8 of the articles of
association. The agenda will include detailed infor-
mation on the resolutions to be considered and the
recommendations from the nomination committee.
The chair of the board, the chair of the nomination
committee, the CEO, the CFO and the group’s auditor
will attend general meetings under normal circum
-
stances unless they have valid grounds to be absent.
The meeting will normally be chaired by the chair of the
board. In the event of any disagreement over individual
agenda items where the chair of the board belongs to
one of the fractions, or for some other reason is not
deemed to be impartial, a different person will be
selected to chair the meeting in order to ensure
independence with respect to the matters concerned.
Deviations from the code: None.
7. Nomination committee
The company’s nomination committee is regulated by
article 6 of the articles of association. It will comprise
two to three members, and the majority will be
independent of the board and the group management.
The composition of the committee will ensure that the
interests of the shareholders are safeguarded.
Instructions for the nomination committee were
adopted at the general meeting on 13 May 2015. They
include the main principles for the nomination commit
-
tee’s work, making and supporting proposals and
general procedures. The instructions are subject to
annual reviews, and any proposed changes will be
submitted to the general meeting for approval.
The nomination committee makes recommendations
to the general meeting regarding the election of
shareholder-elected directors, remuneration of directors
including relevant subcommittees, the election of
25
members and the chair of the nomination committee
and remuneration of members of the nomination
committee. Each proposal is justified on an individual
basis and presented with the notice documents to the
AGM. Shareholders in Europris are encouraged to
nominate candidates for the board. More information
on this can be found on the group’s website at
https://investor.europris.no.
At 31 December 2022, the nomination committee
consisted of the following members:
• Mai-Lill Ibsen (chair)
• Inger Johanne Solhaug
• Alf Inge Gjerde.
The members are elected by the general meeting for
a term of two years, and none of the members are up
for election in 2023. All the members are considered
independent of the board and executive management.
Remuneration of the members of the nomination
committee is determined by the general meeting.
Deviations from the code: None.
8. Board of directors: composition
and independence
Article 5 of the articles of association provides that the
board will consist of a minimum of three and a maximum
of ten directors, as determined by the general meeting.
The board had seven members at 31 December 2022,
of whom three were women. All shareholder-elected
directors are regarded as independent of senior
executives and material business associates. Europris
holds an option to acquire the remaining 80 per cent of
the shares in ÖoB (Runsvengruppen), and one of the
directors are related to this company. The person in
question does not participate in related cases. None of
the executives are directors.
The directors are elected for a term of two years and
may be re-elected. The general meeting elects the chair
of the board�
According to the instructions for the nomination
committee, the board’s composition will be broadly
based to ensure that it has the necessary experience,
qualifications and capacity to safeguard the common
interests of the shareholders. Furthermore, the compo
-
sition of the board should allow it to function effectively
as a collegiate body and to act independently of special
interests. A detailed presentation of the expertise and
background of the directors is available on the group’s
website at https://investor.europris.no.
Europris ASA has no direct employees and therefore
no requirement to appoint employee representatives to
the board. Three employees are represented on the
board of the Europris AS subsidiary and as observers
on the board of Europris ASA.
Directors are encouraged to hold shares in Europris.
An overview of director shareholdings in the company
can be found in note 22 to the 2022 annual report and
on the company’s website at https://investor.europris.no.
Deviations from the code: None.
Name Postion Served since Up for election
Tom Vidar Rygh Chair 2012
1
2023
Bente Sollid Storehaug Director 2015
2023
Hege Bømark Director 2015
2023
Tone Fintland Director 2017
2023
Claus Juel-Jensen Director 2017
2023
Karl Svensson Director 2019
2023
Pål Wibe Director 2020
2024
1
Served since 2012 in Europris AS and in Europris ASA since 2015.
26
9. The work of the board of directors
Board’s responsibilities and tasks
The board determines the group’s overall objectives
and strategy, taking into account financial, social and
environmental considerations, in addition to appointing
the CEO and determining the terms and conditions of
his or her employment. Furthermore, the board is
responsible for supervising the general and day-to-day
management of the group’s business, ensuring proper
organisation, preparing plans and budgets for its
activities, ensuring that the group’s activities, accounts
and asset management are subject to adequate
controls, and undertaking investigations necessary to
the performance of its duties.
Instructions for the board of directors
The board has adopted instructions which describe its
responsibilities, duties and administrative procedures,
including handling of related party transactions. The
instructions also regulate the distribution of duties
between the chair and the CEO. The current instructions
were approved by the board in May 2015 and are
subject to annual reviews.
Instructions for the chief executive officer
(CEO)
The instructions for the CEO regulate the day-to-day
management of the group’s operations to ensure that
the group pursues and seeks to reach the strategic
targets set by the board. The CEO is also responsible
for keeping the group’s accounts in accordance with
prevailing Norwegian legislation and regulations, and for
managing the group’s assets in a responsible manner.
The CEO briefs the board about the group’s activities,
financial position and operating results at least once a
month. The current instructions for the CEO were
approved by the board in May 2015 and are subject
to annual reviews.
Conflicts of interests and disqualification
Directors and members of the executive management
must notify the board immediately if they have a direct
or indirect material interest in an agreement or trans-
action entered into by the group. The board’s conside-
ration of material matters in which the chair of the board
is, or has been, personally involved will be chaired by
some other director�
The group has no controlling shareholders and there
has been no conflict of interest identified related to
suppliers and other stakeholders in 2022.
Related party transactions
The group will immediately make public any material
transaction between the group and shareholders,
directors, leading employees or any of their close
relations, as well as with other companies in the group.
In the event of such transactions, the board will evaluate
whether it is necessary to seek a third-party valuation.
An independent valuation is required for material
transactions between companies in the same group
where there are minority shareholders. There were
no transactions with close associates in 2022.
Financial reporting
The board receives financial reports and comments
from the CEO at least once a month on the group’s
operations, economic position and financial status. The
board will also be kept continuously informed of any
material legal disputes, contract terminations, changes
in management and material conflicts related to clients,
suppliers and employees. The financial report forms the
basis for enabling the board to maintain an informed
view of the group’s results, capital adequacy and
financial position. Quarterly financial reports are
reviewed at board meetings, and these provide the
basis for external financial reporting.
The work of the board of directors
The board will meet at least five times a year. It held
nine meetings in 2022, where four meetings were held
virtually and five were physical meetings. The overall
attendance rate at board meetings was 94 per cent.
Audit committee
The group’s audit committee is governed by the
Norwegian Public Limited Liability Companies Act and
a separate instruction has been adopted by the board.
The members of the audit committee are appointed by
and among the directors.
The audit committee’s primary purpose is to act as a
preparatory and advisory body for the board on matters
concerning accounting, auditing and finance, including
monitoring of internal controls related to financial
reporting. The committee reports and makes
recommendations to the board, but the latter retains
27
responsibility for deciding on and implementing such
recommendations. The audit committee held five
meetings in 2022, with an overall attendance rate of 93
per cent. At 31 December 2022, the audit committee
consisted of three directors who all were regarded as
independent of the group:
• Hege Bømark (chair)
• Tom Vidar Rygh
• Claus Juel-Jensen.
Remuneration committee
The group’s remuneration committee is governed by a
separate instruction adopted by the board. The
members are appointed by and among the directors. Its
primary purpose is to assist the board in discharging its
duties related to determining the compensation of the
executive management. The committee reports and
makes recommendations to the board, but the latter
retains responsibility for implementing such recommen
-
dations. The remuneration committee held three
meetings in 2022, with an attendance rate of 100 per
cent. At 31 December 2022, the remuneration
committee consisted of three directors:
• Tom Vidar Rygh (chair)
• Bente Sollid Storehaug
• Tone Fintland.
Dedicated ESG responsibility
The board has chosen one of its members to hold a
dedicated responsibility for ESG issues.
Board’s evaluation of its own work
The board conducts an annual assessment of its own
work and expertise, which is presented to the
nomination committee. The assessment includes the
work of the board, the work of its committees and the
contribution made by the various directors. The board
sets individual and collective targets to measure
performance, in order to ensure that the evaluation is an
effective tool. An evaluation of this kind was last
conducted in December 2022.
Deviations from the code: None.
10. Risk management and
internal control
The board is responsible for ensuring that the group’s
risk management and internal control systems are
adequate in relation to the regulations governing the
business. The board reviews the group’s main areas of
risk and internal control systems annually, including the
group’s guidelines and practices on sustainability and
how consideration for its stakeholders is integrated into
the group’s value creation. The audit committee holds at
least one meeting a year with the auditor, who presents
the group’s internal control routines, including identified
weaknesses and areas subject to improvements, for
review by the committee.
The board works according to a plan which ensures
that all the various operational areas are subject to a
more in-depth review at least once a year. Management
follows a similar schedule in performing an evaluation of
the same topics ahead of the board’s review, in addition
to a periodic risk review.
Europris has established a treasury policy to define a
framework for managing financial exposure and group
treasury operations. The most recent update was
approved by the board in February 2023. The policy
takes account of the financial and commercial risks that
Europris is exposed to and details the allocation of
responsibility for financial risk management between the
board, the CEO, the CFO and within the Europris group.
The policy further specifies the risks that Europris is
exposed to, and how they should be managed,
reported, measured and controlled. The content of the
treasury policy is described in detail as working proce
-
dures in the Europris finance manual, where processes
and procedures are established in the form of instruct-
ions which serve as a reference for compliance with the
treasury policy. The policy is subject to annual reviews
by the board�
Europris prepares its consolidated financial state
-
ments in accordance with the International Financial
Reporting Standards (IFRS), which are intended to give
a true and fair view of the company’s and the group’s
assets, liabilities, financial position and results of
operations. The board receives reports at least once a
month on the group’s business and financial results,
providing a good overview of the group’s strategic and
operational performance as well as plans for the
forthcoming period. In addition, quarterly reports are
28
prepared in accordance with Oslo Stock Exchange
recommendations, which are reviewed by the audit
committee before the board meeting and subsequent
publication.
As a discount retailer, Europris is exposed to a range
of market, operational and strategic risks which may
adversely affect the group’s business. Further infor
-
mation regarding such risk factors and how these are
managed is disclosed in the directors’ report and the
notes to the annual accounts for 2022.
Europris furthermore monitors satisfaction by
employees and promotes the health and wellbeing of its
workforce. In addition, it devotes attention to the training
and education of employees across all aspects of its
business.
The group’s CFO is responsible for conducting
unbiased, complete audits of the group’s compliance
programme, including guidelines for anti-corruption, on
a regular basis in light of the group’s specific business
areas, geographical location and legal obligations.
Deviations from the code: None.
11. Remuneration of the board
of directors
The nomination committee is responsible for
proposing the remuneration of directors in order to
reflect the responsibilities, expertise and time spent as
well as the complexity of the business. Members of the
audit committee and remuneration committee are
entitled to additional remuneration, reflecting the extra
workload. The proposal is approved by the company’s
general meeting. Directors’ fees for 2022 were approved
by the AGM in 2022.
Directors’ fees at 31 December 2022 were not linked
to performance, and the company does not grant share
options to its directors. Additional information relating to
directors’ fees can be found in note 7 to the financial
statements included in the 2022 annual report.
Directors and/or companies with which they are
associated should not take on specific assignments for
the group in addition to their board appointment. If they
do, however, this must be disclosed to and approved by
the full board.
Deviations from the code: None.
12. Salary and other remuneration
for executive personnel
Europris has a policy of offering competitive remune-
ration for the executive management based on current
market standards as well as on group and individual
performance. The board has established guidelines for
determining pay and other remuneration for members of
the executive management.
Remuneration consists of a basic pay element
combined with a performance-based bonus scheme
(both short and long term) linked to the group’s financial
and operational performance. The maximum annual
pay-out from the bonus scheme is limited to 12 months
of gross base pay. The management group participates
in the group’s insurances, and may be entitled to certain
fringe benefits, such as free newspaper, car and phone.
The board has prepared a statement on the determi
-
nation of salaries and other benefits payable to senior
executives. The guidelines were presented to and
adopted by the 2021 AGM. Updated guidelines will be
presented for the AGM on 20 April 2023. Further details
relating to the pay and benefits payable to the CEO and
other senior executives can be found in note 7 to the
financial statements included in the 2022 annual report
and in a separate remuneration report that can be found
at the company’s website.
Deviations from the code: None.
13. Information and communications
Investor relations
Investor relation activities at Europris ASA aim to
ensure that the information provided to financial markets
gives market participants the best possible foundation
for a correct valuation of the group. Europris communi-
cates in an open, precise and transparent manner about
the group’s performance and market position in order to
give financial markets a correct picture of its financial
condition and other factors which may affect value
creation. Europris complies with the Oslo Stock
Exchange code of practice for IR, last updated in March
2021. The group has adopted an IR policy, which is
available in a condensed form on the website at https://
investor.europris.no.
All market participants will have access to the same
information published in English. All notices sent to the
29
stock exchange are made available on the group’s
website at https://investor.europris.no and at https://
newsweb.oslobors.no. The CEO, CFO and Head of IR
are responsible for communication with shareholders
and analysts in the period between general meetings.
Financial information
Interim reports are published on a quarterly basis, in
line with Oslo Stock Exchange recommendations. In
connection with the publication of its interim results,
Europris holds open investor presentations to provide
an overview of the group’s operational and financial
performance, market outlook and future prospects.
These presentations are also made available through
webcasts on the group’s website.
Deviations from the code: None.
14. Take-overs
No defensive mechanisms against takeover bids are
provided in Europris’ articles of association. Nor are
any other measures implemented specifically to hinder
the acquisition of shares.
Deviations from the code: The board has not
established written guidelines for how it should act in
the event of a takeover bid. Since such circumstances
are normally one-off by nature, drawing up general
guidelines is challenging.
Were a takeover bid to be made, the board would
consider the relevant recommendations in the code
and whether the specific circumstances permit
compliance with the recommendations in the code.
15� Auditor
The group’s auditor, BDO AS, is appointed by the
general meeting and is independent of Europris ASA.
The board has received a written confirmation from the
auditor that requirements for independence and
objectivity have been met.
The board requires the auditor annually to present to
the board and the audit committee a plan covering its
main auditing activities and a review of the group’s
internal control systems, including identified
weaknesses and proposals for improvement. In
addition, the board requires the auditor to attend the
board meeting dealing with the group’s annual
accounts in order to highlight any material changes to
accounting principles, comment on any material
estimates, and report on any topics where a significant
difference of opinion exists between auditor and
management.
At least once a year, the auditor and the board hold
a meeting without any representatives of the group’s
executive management being present. The auditor
normally attends all meetings in the audit committee.
The board has established guidelines for any work
performed by the auditor. All material services, audit-
related and otherwise, must be approved in advance by
the audit committee. The CFO is authorised to approve
such services on condition that (1) services approved
by the CFO are reported to the next meeting of the
audit committee, (2) such services must need to be
approved at short notice to protect the group’s
interests, (3) such services, following a case-specific
evaluation, do not affect the independence of the
auditor and (4) the service amount to a maximum of
NOK 250,000 and is of a “normal” nature.
The board will inform the AGM about the remune
-
ration payable to the auditor, broken down between
auditing and other services. The AGM approves the
auditor’s fees. For further information about remune-
ration of the auditor, see note 6 in the 2022 financial
statements.
During 2022, Europris has completed a tender
process for external audit services in accordance with
The Public Limited Liability Companies Act and the
Auditors Act. The audit committee and the board have
been actively involved in the process and will present
their proposal for a final decision at the AGM on 20
April 2023.
Deviations from the code: None.
30
Sustainability report 2022
Europris ASA
32
Highlights ���������������������������������������������������������������������������� 33
Sustainability in all we do ���������������������������������������������������� 34
A focus on the most material sustainability aspects ����������� 35
Governance ������������������������������������������������������������������������� 37
- Business ethics and anti-corruption ��������������������������������� 38
Reporting standards and achievements ���������������������������� 38
Adjustments from 2021 ������������������������������������������������������� 39
Our strategy in relation to the UN SDGs ����������������������������� 40
Our products ����������������������������������������������������������������������� 41
- Sustainable products and circular solutions �������������������� 42
- Safe and good-quality products ��������������������������������������� 45
- Human rights due diligence ��������������������������������������������� 47
Our climate prole ��������������������������������������������������������������� 49
- Climate-friendly operations and logistics ������������������������� 50
- Carbon accounting ����������������������������������������������������������� 51
- Climate resilience �������������������������������������������������������������� 56
Our people �������������������������������������������������������������������������� 59
- Equal opportunities and an inclusive work environment �� 60
- Health, safety and the environment (HSE) ���������������������� 63
Our social responsibility ������������������������������������������������������ 65
- Community engagement and local value creation ����������� 66
GRI input ����������������������������������������������������������������������������� 69
Independent auditor´s report ���������������������������������������������� 70
GRI index ���������������������������������������������������������������������������� 72
Content
33
Highlights 2022
– the year in brief
Revised strategy
and KPI indicators
up to 2030
➞
New UN goal:
SDG 10 reduced
inequalies
Number of people
in work training
➞
122
Commitment to
Science Based
Target Iniave
Internal engagement
and educaon:
- Leadership development
programme on sustain-
ability and circularity
completed by all
managers
- Sustainability week
for all employees
BSCI supplier
audits
92
%
Reduced energy
consumpon by
9
%
in stores
Maintained
CDP score
B
reducon in
carbon emissions
compared with 2021
21
%
34
Sustainability in all we do
The year 2022 marked a big step forward for
Europris in terms of setting clear and ambitious
targets in its sustainability strategy. Important
commitments made for climate work will help to set
the pace for the journey ahead.
The group is proud to be moving in the right
direction, but is also impatient to accelerate the
transition even more throughout its organisation.
Inflation and an increased cost of living create a
sense of urgency in pursuing the overall ambition: to
reduce the group’s impact on the environment and
give everyone the opportunity to make sustainable
choices through sustainable but affordable products.
However, sustainability is not just about reduced
emissions. Its people are what makes Europris great,
and being an attractive place to work is essential to it
as a group. Equally, it wants to make a positive
contribution to people and the environment in the
many local communities it is part of. To achieve that
ambition, sustainability is part of governance in
Europris and in all decision-making processes
throughout the organisation.
Europris’ ESG strategy is based on the UN sustain-
able development goals (SDGs) and the material
topics which identify its most significant impacts on
the economy, the environment and people. The
strategy encompasses four main priority areas aimed
at inspiring and activating positive change and at
leading the journey towards it: our products, our
climate profile, our people and our social respons-
ibility. The aim of this sustainability report is to provide
stakeholders with transparent information on the
group’s impacts, and it has been prepared in accor-
dance with the 2021 Global Reporting Initiative (GRI)
standards. The figures and KPI’s of this report
include Europris AS, Europris Butikkdrift AS and
Europris Holding AS, unless otherwise specified.
Numbers are based on status at 31 December 2022.
Environment (E)
Social (S)
Sustainability is an integrated part of the strategy and value chain, and shall naturally be a part of the governance
and all the decision-making processes throughout the company
Europris´ sustainability strategy
Our people
Being an attractive place
to work, where employees
thrive and experience
personal development
Our products
Give everyone the oppor-
tunity to make sustainable
choices, and be a pioneer
for affordable sustainable
products
Our social responsibility
Contribute positively to
people and the environ-
ments in the many local
communities we are
a part of
Our climate profile
Reduce emissions in line
with the Paris agreement
with ambitions of reaching
net zero by 2050
Governance (G)
35
A focus on the most material
sustainability aspects
The principles, requirements and guidelines of the
2021 GRI standards were followed in identifying
Europris’ key sustainability impacts in its value chain.
The GRI standards have been revised from the
previous GRI framework of 2016, and the group has
amended its materiality approach to align with the
adjustments specified in the revised standards.
Identifying Europris’ most significant impacts
started with mapping the activities, business rel-
ationships, stakeholders and sustainability context of
the entities it encompasses. Examining the value
chain and not just core activities is essential in
describing impacts at a local, regional and global
level in relation to the sectors which Europris
operates in. International guidelines and standards
Europris is expected to comply with, such as the
OECD, the UN guiding principles on human rights
and the Paris agreement, were also included in
developing and understanding the group’s sustain-
ability context.
A list of actual and potential impacts – both
negative and positive – was identified. This
assessment evaluated each identified impact across
several dimensions, such as irremediability, time
scale and whether it related to human rights. These
impacts were then scored in terms of severity, using
dimensions for scale, scope and likelihood. Scoring
for each impact was based on its severity and
likelihood in relation to the others. In addition, each
was categorised by its time frame – in other words,
whether it had an actual or potential scope. To
prioritise the most material impacts, a threshold was
set for inclusion in further materiality assessments.
Ultimately, impacts with similar characteristics were
grouped into material topics*.
The group considers that “satisfied customer” is no
longer tied to materiality and has therefore removed
it as a material topic. Furthermore, two new material
topics were identified and added to the list:
• climate resilience
• business ethics and anti-corruption.
Material topics prioritised on the
basis of the 2022 materiality analysis
• Human rights due diligence
• Safe and good-quality products
• Climate-friendly operations and logistics
• Climate resilience
• Sustainable products and circular solutions
• Equal opportunities and an inclusive
work environment
• Business ethics and anti-corruption
• Community engagement and local value
creation
• Health and safety in the workplace
* The materiality matrix presented in the 2021 annual report has been revised to a prioritised list in 2022, in order to align with the
requirements of the 2021 GRI standards.
36
Stakeholders Type of dialogue Frequency
Employees
Meetings
Newsletters for store managers
Workplace
Key stakeholders for prioritised sustainability areas
Sustainability week
Employee survey
Weekly/monthly
Quarterly
Ongoing
Annually
Annually
Annually
Customers
Brand tracker survey
Customer survey on sustainability
Newsletter to Mer members
Website and some social media
Customer leaet
Annually
Annually/project-based
Weekly
Weekly
Weekly
Banks One-to-one meetings Semi-annually
Analysts Meetings and calls Quarterly
Investors
Roadshows
Investor seminars
Meetings
Quarterly
Quarterly
On request
Other partners, such as
Green Dot, Amfori, Norwegian
Retailers’ Environment Fund and
Ethical Trade Norway
Meetings
Information meetings
Webinars, courses
Semi-annually
Semi-annually
Bimonthly/semi-annually as
required (regulatory updates)
Local community, such as
charities and local partnerships
Meetings Regularly
Suppliers
One-to-one meetings
Annual vendor summits
Code of conduct
At least twice a year,
normally more often
Annually
Annually, related to contracts
Europris is in continuous dialogue with key stake-
holders, both internal and external. This provides
valuable input and knowledge about how to adapt the
business even further in a sustainable direction to
ensure that its sustainability goals are met. Infor-
mation acquired from communication with stake-
holders is a crucial input in updating materiality
impacts. Key stakeholder groups, the type of dialogue
Europris has with them and the frequency of the
dialogue is presented below.
Interaction with key stakeholders
37
Stakeholders Type of dialogue Frequency
Employees
Meetings
Newsletters for store managers
Workplace
Key stakeholders for prioritised sustainability areas
Sustainability week
Employee survey
Weekly/monthly
Quarterly
Ongoing
Annually
Annually
Annually
Customers
Brand tracker survey
Customer survey on sustainability
Newsletter to Mer members
Website and some social media
Customer leaet
Annually
Annually/project-based
Weekly
Weekly
Weekly
Banks One-to-one meetings Semi-annually
Analysts Meetings and calls Quarterly
Investors
Roadshows
Investor seminars
Meetings
Quarterly
Quarterly
On request
Other partners, such as
Green Dot, Amfori, Norwegian
Retailers’ Environment Fund and
Ethical Trade Norway
Meetings
Information meetings
Webinars, courses
Semi-annually
Semi-annually
Bimonthly/semi-annually as
required (regulatory updates)
Local community, such as
charities and local partnerships
Meetings Regularly
Suppliers
One-to-one meetings
Annual vendor summits
Code of conduct
At least twice a year,
normally more often
Annually
Annually, related to contracts
Governance
Sustainability is an important component in
Europris’ overarching goals. The board recognises
its importance as an integrated part of the group’s
strategy and culture, and oversees all important
material impacts related to the economy, the
environment and people. Sustainability work and
reporting are governed by the board, and supervised
by the steering group and the sustainability
department. They are based on the group’s sustain-
ability strategy and the material topics presented in
the materiality assessment.
The CEO regulates day-to-day management of the
group’s operations to ensure that it pursues and
seeks to reach the strategic targets set by the board.
That includes the alignment and approval of the
annual report and material topics. The CEO briefs
the board at least once a month on the group’s
activities, operations, economic position, and
financial status. Climate related risks and opportu
-
nities are reported to the board annually. The vice
president for strategy and sustainability provides
a quarterly update to the board on sustainability-
related activities and KPI performance. This person
is responsible for making sustainability an integral
part of the strategy, and for monitoring all sustain-
ability targets and initiatives.
The sustainability manager reports to the vice
president for strategy and sustainability, and is
responsible for updating the sustainability strategy,
implementing plans, and assessing and incorpo
-
rating the sustainability strategy across the organi-
sation.
Several members of the board have experience of
ESG matters through their current jobs, through the
academic professional environment on sustainability
at the Norwegian Business School or through global
procurement, for example. One director also
obtained a certificate in sustainable business
strategy during 2022. The board has chosen one of
its members to hold dedicated responsibility for ESG
issues. This director meets the vice president for
strategy and sustainability and the sustainability
manager at least twice a year to discuss and work
with strategic ESG issues for Europris.
We have set ourselves the goal of
achieving net zero emissions by
2050 in line with the Paris
agreement, and our commitment to join the
Science-Based Target initiative has been
approved already. In this way, we are setting
clear demands for ourselves to work even
more purposefully on sustainability in all
parts of our company
Espen Eldal
CEO of Europris ASA
SUSTAINABILITY
DEPARTMENT
MANAGEMENT
TEAM
SUSTAINABILITY
STEERING
GROUP
BOARD
CEO
38
Business ethics and anti-corruption
Acknowledging the group’s impact on business
ethics and anti-corruption is essential for its future,
owing to its close links with both regulations and
reputation. Impacts related to business ethics refer
not only to implementing appropriate business
policies and practices on controversial subjects,
such as corruption, bribery and discrimination, but
also to the way Europris works with corporate gover-
nance and legal compliance. That makes business
ethics and anti-corruption a natural material topic for
the group.
A selection of impacts are presented in the table
below.
Europris recognises and addresses these impacts.
The board has established clear objectives, strategies
and risk profiles for the group’s business activities in
order to create value for its shareholders and to
ensure that its resources are utilised in an efficient
and sustainable manner to the benefit of all stake
-
holders. Various policies have been developed by the
group to establish business practices and provide
guidance in the following important sustainability
areas: supplier code of conduct, ethical trade, anti-
corruption, anti-competitive behaviour, data
protection, trade sanctions and whistleblowing.
These policies set standards for the behaviour
expected both internally and externally to build trust,
loyalty and responsible business behaviour, and to
prevent violations and negative impacts externally.
The policies are revised annually and approved by
the board. A project was initiated in 2022 with the aim
of revitalising policies across the organisation. The
group has mapped out which key roles need special
attention or training related to various policies, and
suitable measures to ensure that the policies are well
understood and embedded in the day-to-day
business. These could include onsite training or
e-learning. This work will continue into 2023.
A whistleblower system available to all stake
-
holders, both internal and external, is maintained by
the group via its website. This enables anonymous
reporting of such important matters as breaches of
the group’s ethical guidelines, including discrimi
-
nation, bullying and sexual harassment. Six cases
were reported in 2022, none of which involved
discrimination or corruption. All these incidents were
handled and resolved by the HR department. No
major cases arose in relation to the General Data
Protection Regulation (GDPR) in 2022. Two internal
cases were reported to the Norwegian Data Pro-
tection Authority and resolved within the organisation.
Where communication and advertising were
concerned, one complaint was raised and resolved
through direct dialogue with the customer.
Reporting standards and
achievements
Based on the recommendations of the Task Force
on Climate-Related Financial Disclosures (TCFD),
Europris has held workshops to identify, assess and
classify the climate-related risk it is exposed to. Since
2014, the group has also incorporated reporting of its
greenhouse gas (GHG) emissions in alignment with
the GHG Protocol in order to manage the climate
impact of both its own operations and its value chain.
The group is proud to be recognised for its climate-
related sustainability work, with a B score for the
fourth year in a row from the Carbon Disclosure
Project (CDP), a global non-profit environmental
organisation.
Material topic Overview of impact Actual / potential Negative / positive
Related to
human rights
Business ethics
and anti-corruption
Lack of training and compe-
tence can lead to corruption
Actual Negative No
Deviation from IT routines
which leads to leaks of sensitive
employee data
Potential Negative Yes
Advertising potentially leading
to discrimination or misleading
communication with customers
Potential Negative Yes
39
The Position Green Group, an independent
research and advisory firm, awarded Europris a B
score for its 2021 sustainability report following an
evaluation (ESG 100) of the 100 largest companies
on the Oslo Stock Exchange. The group is satisfied
with this recognition and devotes great attention to
increasing expertise on and knowledge about
sustainability throughout its organisation.
Adjustments from 2021
As mentioned above, the group has revised its
materiality approach and topics from previous
reporting periods. The attention paid to the organisa-
tion’s most significant impacts on the economy, the
environment and people – including human rights –
has been reassessed. As a result, the materiality
matrix presented in the 2021 annual report has
transformed to a prioritised list in 2022.
The group also reconsidered its overall ESG
strategy in 2022. In line with its values of “simple” and
“clear”, it has changed the designations of its four key
strategic areas to our products, our climate profile, our
people and our social responsibility. In addition, the
group has identified clear and measurable KPIs for
each of these areas in order to enable it to work in an
even more systematic and targeted way in each part
of the strategy and to improve monitoring of the
progress being made. As part of revising the strategy,
a more detailed specification on how this relates to
the UN SDGs has been developed. This is described
in the model below. SDG 10 (reduced inequalities)
has been included in the strategy.
The climate accounting has been revised for 2022
(ISAE 3410 Assurance engagement on greenhouse
gas statements with limited assurance) for scope 1
and 2 and for waste in scope 3.
2018 2019
2020
2021
2022
C B B B B
40
Our strategy in relation to the UN SDGs
UN SDGs SDG targets/main
priority areas
Commitments from the strategy for delivering
on the SDG target
Topics reared to Europris’
sustainability strategy
Europris seeks to give everyone the opportunity to
make sustainable choices, and to be a pioneer in
offering sustainable but affordable products (12.8)
Europris additionally works to reduce waste and
packaging with more circular solutions (12.5)
Our products
Europris will implement specic measures to reduce
energy consumption across the organisation, reduce
emissions associated with products and transport, and
contribute to increased utilisation of waste in order to
strengthen resilience to and capacity for dealing with
climate-related hazards (13.1)
Our climate prole
Europris works for equal opportunities and an
inclusive work environment, and is committed to
ensuring full participation in and equal opportunities,
regardless of gender, at all levels of decision-making
in the organisation (5.5)
Our people
Europris will ensure that products are sourced
responsibly, and promotes a safe work environment
for all workers throughout the supply chain (8.8)
Europris will contribute to full and productive
employment and decent work for all employees,
including young people and those with disabilities, as
well as equal pay for work of equal value (8.5)
Our people
Our social responsibility
Our products
Europris will be an inclusive, ethical and responsible
business which contributes to the local communities
it is part of (10.3)
Our social responsibility
Europris is committed to measuring and managing
risks and opportunities presented by climate change
in accordance with the CDP, a global environmental
disclosure system (17.14)
Europris encourages and promotes cooperation
through both business and civil society partnerships,
building on and sharing experience in order to promote
best practice (17.17)
Our climate prole
Our social responsibility
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
41
Europris recognises that its main impact on ESG issues relates to sourcing and producing
products. The Intergovernmental Panel on Climate Change (IPCC) concludes that the biggest
threats to nature and the climate today are the way humans are consuming resources. To reverse
the loss of nature and halt climate change, the world must reduce production and consumption
footprints by 50 per cent in 2030. This chapter explains how Europris works continuously to
increase its share of sustainable products and its approach to creating a more circular business.
It also describes how the group works with safe and good-quality products and how products are
sourced responsibly through due diligence work on human rights.
Ambition:
Give everyone the oppor-
tunity to make sustainable
choices, and be a pioneer for
affordable sustainable products.
Commitment:
Europris strives to provide
sustainably produced and
sourced products, presented in
a way which motivates customers
to make sustainable choices.
Material topics:
• Sustainable products and
circular solutions
• Safe and good-quality products
• Human rights due diligence.
Europris also works towards
the following targets:
• Annual reduction in the amount
of packaging for directly
sourced products
• All new directly sourced
products will have recycled
and/or recyclable packaging.
Our products
Share of chain sales for third-party certified products
Target: Annual increase in share of chain sales for third-party
certified products
9.1%
2020 2021 2022
7.3%
7.8%
Share of complaints
Target: Annual reduction in complaints related to three key product
groups in the chain (outdoor furniture, small domestic appliances
and seasonal lighting)
1.8%
2020 2021 2022
1.3%
1.6%
Share of purchase from BSCI-audited suppliers in risk areas
Target: All group products sourced from risk areas will come from
socially audited suppliers by 31 December 2030
92.4%
2021 2022
89.3%
Target: 100%
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
42
Europris seeks to reduce its negative footprint by
continuously improving its sourcing strategy in terms
of conducting responsible and ethical trade,
increasing the share of sales for third-party certied
products (Swan, FSC, EU Eco Label, etc), and a
product strategy concentrating on circular solutions.
The group’s main ambition is to give everyone the
opportunity to make a sustainable choice and to be a
pioneer with sustainable but affordable products. As
a major retailer in Norway, Europris has an inuence
on consumption patterns among its customers. It is
therefore already looking at opportunities to extend
product lifespans by offering spare parts for repairs
and by using a higher proportion of recycled material
in products and packaging.
Involving participants from purchasing, quality,
sustainability, marketing and packaging/design, a
corporate project has been established to improve
the share of sustainable products and to provide
clear and better information in order to educate
customers and to make sustainable choices easily
accessible to them. The disposables category has
been the rst in-depth priority area, with high-risk
materials and policies identied. Findings from this
project will be implemented in 2023.
A second corporate project is exploring further
circular business models to meet the retail future in
such areas as reuse, repair and rental. The group is
in the exploration phase, and this project will
continue in 2023.
Third-party certications
Europris has an ambition to achieve annual growth
in the share of sales from third-party certied
products, and is proud to say that the results have
been positive for the fourth year in a row. Twenty
such certications have been considered relevant to
the product range offered by the group with regards
to the environment and/or ethical trade, quality and
health. An updated list of these can be found at
Europris.no.
The group launched its own umbrella sustain-
ability symbol in April 2021, covering the 20 different
third-party certications. This is intended to help
customers nd sustainable products more easily.
The products concerned bear the symbol on store
shelves and in digital and print marketing.
Sustainable products and
circular solutions
Both manufacturing processes and raw materials
used at Europris may negatively affect forests, water
supplies, local ecosystems and the people involved
in its supply chain. The actual use and after-use of
products must also be accounted for. ”Sustainable
products and circular solutions” have naturally been
included as a material topic. An overview of some of
the actual and potential impacts is presented below.
Material topic Overview of impact Actual / potential Negative / positive
Related to
human rights
Sustainable products
and circular solutions
Failure to screen suppliers in
environmental audits, leading to
impacts on biodiversity and
emissions
Actual Negative No
Products with unnecessary
packaging, leading to increased
use of materials
Actual Negative No
Signing the guide against
greenwashing
Actual Positive No
43
44
Packaging
According to the EU Green Deal, packaging waste
in Europe reached a record high of 173 kilograms
per inhabitant in 2017. Europris is responsible for
large quantities of packaging in the Norwegian
market. As a member of Green Dot Norway, it meets
the national legal requirements for waste by paying
an environmental tax on all imported packaging. This
levy helps to nance the country’s waste collection
system.
Europris committed in 2020 to the Green Dot
plastic pledge, undertaking to contribute to a more
circular plastic economy. The plastic packaging of
the future will be smarter, more innovative and
sustainable. Goals are to increase the use of
recycled plastic, avoid unnecessary use of plastic,
and design for recycling.
Europris’ ambition is to move towards more
environment-friendly packaging made from
recyclable or recycled materials. It is also working
towards a general annual reduction in the amount of
packaging. Using recycling pictograms and
explanatory text will make it as easy as possible for
customers to recycle and limit the impact on the
environment.
Dened goals, such as lling rate, recyclable
materials and optimisation of materials, are applied
when designing new packaging. In addition, Europris
applies a packaging policy for suppliers in order to
deliver on its ambition.
Greenwashing poster signed
As a group selling substantial amounts of products
in many different categories, Europris also has a
responsibility to help shoppers nd sustainable
alternatives in its stores through clear information.
Greenwashing can be dened as misleading
marketing, where a product or a business is
presented as more environment-friendly than it
actually is. While refraining from misleading or false
information goes without saying, sustainability and
social responsibility are complicated areas where it
is difcult to navigate and easy to make mistakes.
The greenwashing poster is a guideline for
businesses which want to avoid such errors and
contribute positively to the green transition.
Signatory companies meet several times a year to
discuss and share measures in order to be proactive
and avoid greenwashing.
Vie Eco candles, third party certied by Swan.
45
Europris aims to strengthen its reputation as a
trustworthy and dependable retailer of discount
variety merchandise, while making quality an
important criterion for sustainability in specic
categories where the impact is highest.
The trend for customer complaints is moving
slightly in the wrong direction, and work in this eld
is therefore important for bringing down their
number. This minor increase related primarily to a
specic article with poor quality, which has subse-
quently been improved. It is important to note that
the group’s KPIs apply to three key product groups
– outdoor furniture, small domestic appliances and
seasonal lighting. These are big categories with a
high proportion of private labels, where the group is
able to affect quality. For the range as a whole, the
overall rate of complaints is stable. Europris has a
dedicated quality and safety department with
ofces in both Shanghai and Norway to ensure that
Safe and good-quality products
A key driver in developing longer-lasting
products, slowing consumption and reducing
emissions is improved product quality. As a
discount retailer, Europris acknowledges the
potential for negative associations related to price
and quality perceptions. The group is very aware of
the need to provide safe and good-quality products.
This thereby ranks as a material topic of great
importance. An overview of some of the actual and
potential impacts is presented below.
Material topic Overview of impact Actual / potential Negative / positive
Related to
human rights
Safe and good-quality
products
Product with short lifecycle,
leading to greater consumption
and climate impact
Actual Negative No
Lack of spare parts and inability
to repair, leading to increased
use of materials
Actual Negative No
Variable quality control, leading
to possible sales of potentially
harmful products
Potential Negative No
Quality department with a
level of expertise permitting
good control
Actual Positive No
Head of quality at the quality and safety department in Norway.
46
products are safe, have good quality, are correctly
labelled for content, and have been checked for safe
use and disposal.
All high-risk products are tested to ensure that they
comply with international and national legislation.
The group works diligently to keep hazardous
substances out of products and to continue meeting
high standards of quality, transparency and safety.
That is particularly important since merchandise is
sourced from a multitude of suppliers across the
globe, increasing the risk that certain products may
fail to meet national requirements. Products are
tested at the production site in accordance with
Norwegian product regulations. In addition, all
high-risk items, such as electrical products, toys,
chemicals, food items, food contact materials and
pet food, are subject to strict checks by the quality
assurance department before production can take
place. The group wants to ensure that all its products
are safe and of good quality, and has zero tolerance
for recalls and withdrawals.
The quality assurance department in Norway has
concentrated its attention on optimising routines and
testing in collaboration with the quality team in
Shanghai, which is the group´s joint Asian sourcing
ofce with Tokmanni. The latter unit ensures that
pre-shipment inspections are carried out for products
produced in Asia. Reports from these inspections
must be approved by the quality assurance
department at head ofce in Norway before the
shipment is released. That provides time for cor-
rections to be made before products leave the
production site and reduces the risk of faulty or
defective products being transported to Norway.
Increased attention has also been paid to improving
quality based on feedback about product defects
through follow-up at regular meetings with product
managers. No cases of non-compliance concerning
products or their incorrect labelling which resulted in
a ne or warning were identied in 2022.
Europris has implemented a new system to
improve tracking and reporting of customer
complaints and product defects. Greater data
accuracy will allow the group to work more efciently
on reducing defects and enhancing quality. This is
important for sustainability, and will improve quality
for customers. The group has intensied the
attention it devotes to suppliers of high-risk products
or product categories which exceed a claim rate of
three per cent over the year, with the aim of
improving the quality of unsatisfactory products.
2020 2021 2022
Product
Incidents of non-compliance with regulations resulting in a ne or penalty
Incidents of non-compliance with regulations resulting in a warning
Incidents of non-compliance with voluntary codes
0
2
5
0
2
6
0
0
11
Labelling
Incidents of non-compliance with regulations resulting in a ne or penalty
Incidents of non-compliance with regulations resulting in a warning
Incidents of non-compliance with voluntary codes
0
0
0
0
0
0
0
0
1
Total
Incidents of non-compliance with regulations resulting in a ne or penalty
Incidents of non-compliance with regulations resulting in a warning
Incidents of non-compliance with voluntary codes
0
2
5
0
2
6
0
0
12
47
In order to address social impacts which are
actually and potentially negative, Europris relies on
extensive screening through audits before entering
into a new business relationship. The group has a
supplier code of conduct based on UN and Inter-
national Labour Organisation (ILO) conventions.
Suppliers in the group´s identied risk areas are
pre-screened to map whether they meet minimum
criteria under the Europris code of conduct before it
will do business with them. All suppliers are
required to sign agreements and the Europris
supplier code of conduct. In addition to complying
with set standards for business ethics and anti-
corruption, suppliers are required by this code to
minimise adverse effects on human health, animals
and the environment throughout their value chains.
Norway’s new Transparency Act
The Transparency Act came into effect in Norway
on 1 July 2022. Its purpose is to promote respect
by companies for basic human rights and decent
working conditions along supply chains. A goal of
the Act is to ensure that the public has access to
information on these conditions and on how
businesses handle them. Together with other
measures, these legal requirements will contribute
to work by Europris to meet and comply with UN
SDG 8 on decent work and economic growth, as
well as SDG 12 on responsible consumption and
production. The core of the Act imposes a duty to
carry out due diligence assessments. These
require businesses to map possible and actual
negative impacts on basic human rights and decent
working conditions in supply chains, implement
improvement measures, follow these up and report
on them.
Due diligence assessments
- what does Europris do?
To clarify what is expected of suppliers, Europris
has drawn up its own policy and guidelines (code of
conduct) for ethical trade as explained above.
These can be found on the group’s website at
Europris ASA - about us - corporate governance
- policies
Europris is a member of Ethical Trade Norway
and Amfori BSCI. The rst of these is a
membership organisation for both private and
public enterprises, and serves as a guidance and
resource centre for ethical trade. The other is a
large and highly reputable international organi
-
sation which monitors that factories and companies
comply with a wide range of requirements related to
working conditions, pay discrimination, child labour,
freedom of association and collective bargaining,
forced or compulsory labour and rights of
indigenous peoples, corruption, environmental
considerations and so forth.
Human rights due diligence
Europris has a large number of suppliers and
sub-suppliers worldwide. Around 40 per cent of total
chain sales come from countries identied as high
risk in relation to human rights. A systematic
approach to promoting good working conditions in
the entire supply chain is therefore essential, and is
pursued in close cooperation with suppliers and
business partners.
As a natural consequence of business relation-
ships and potential negative impacts, due diligence
on human rights is an important material topic.
The table below addresses some of the actual and
potential negative and positive impacts related to
human rights.
Material topic Overview of impact Actual / potential Negative / positive
Related to
human rights
Human rights
due diligence
Variations in supplier screening
which might lead to a breach of
human rights
Potential Negative Yes
Risk materials, such as
minerals involving human-rights
challenges
Actual Negative Yes
High share of social audits Actual Positive Yes
48
Europris monitors its suppliers through supplier
evaluations and third-party audits, and follows these
up through its purchasing ofce in Shanghai.
Membership in Amfori BSCI ensures that the results
of monitoring activities and audits are shared
between members, maximising the effort-result ratio
to ensure increased control for buyers and suppliers.
The group’s target is that all purchases from risk
areas must come from suppliers and factories
audited for social and environmental aspects by the
end of 2030. In addition, all suppliers and factories
with BSCI assessment must have a score of C or
better on a scale from A-E. This work will follow up
any deviations continuously and improve them where
possible.
Suppliers/factories without BSCI membership must
complete a self-assessment to ensure they commit
to all parts of the Europris code of conduct in
addition to undergoing a third-party audit. The
group’s due diligence assessments are publicly
available at Europris ASA - about us - corporate
governance - policies
Europris also has its own corporate governance
manual, which contains guidelines for ethical trade,
anti-corruption, anti-competitive behaviour and
ethical behaviour by all group employees. These
guidelines are based on the UN and ILO conventions
and describe the main principles for the way Europris
should handle human and labour rights in day-to-day
operations. This manual is revised annually and
approved by the board.
Example from one of the factories in China.
49
Acknowledging its impact on the environment is essential for the future of the Europris
business. As the global climate challenge becomes ever more acute, the group must make
choices for a greener transition to more climate-friendly business activities and operations. This
chapter describes its work on climate-friendly operations and logistics and the transition being
made towards net zero through initiatives related to climate resilience.
Europris is proud to say that it committed in 2022 to the Science-Based Targets initiative (SBTi)
in line with the net zero goal of 2050. Work has started to identify the group’s emissions from
scope 3, and will continue in 2023. That will lead to the formulation of targets for meeting the
reductions needed to comply with its commitments.
Our climate profile
Ambition:
Reduce emissions in line with
the Paris agreement with
ambitions of reaching net zero
by 2050.
Commitment:
Enable climate resilience and
limit climate impacts through
climate-friendly operations and
logistics.
Material topics:
• Climate resilience
• Climate-friendly operations
and logistics.
Energy efficiency (kWh per sqm) - stores
Target: Increase energy efficiency in stores in 2030 by
20 per cent from 2022 level (from 100 kWh to 80 kWh)
Recycling rate
Target: Reach an overall recycling rate of 85 per cent by the end of
2025 (stores, warehouses and head office)
77.9%
2020 2021 2022
73.3%
75.2%
Target: 85%
101.7%
2020 2021 2022
114.0%
110.9%
Target:
80 kWh
per sqm
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
50
Climate-friendly operations
and logistics
Operating in a climate-friendly manner involves
taking responsibility for reporting on emissions,
waste management, energy consumption and
transport. It also means holding Europris account-
able and improving how to cut CO
2
emissions.
Impacts by the group on the climate relate to direct
and indirect emissions from its operations, transport
methods and use of resources. Climate-friendly
operations and logistics remained a material topic in
2022. Policy commitments for this are described in
the section on governance. A selection of impacts
are presented in the table below.
Europris recognises and addresses these impacts.
They are directly related to operations and logistics
and are often systemic rather than specic to one
site or operation in Europris. Business relationships
may have negative impacts along the value chain
even if the group does not contribute directly to
them.
To meet the objectives of its environmental
strategy, Europris measures and assesses its
emissions in accordance with the GHG Protocol
initiative. It has taken major steps in developing its
carbon accounting in order to prepare the
submission to the SBTi.
Material topic Overview of impact Actual / potential Negative / positive
Related to
human rights
Climate-friendly
operations and
logistics
Choice of transport methods
leading to high emissions
Actual Negative No
Electricity use and heating from
non-renewable sources in
stores and ofces
Actual Negative No
Eco-Lighthouse certication Actual Positive No
Total greenhouse gas emissions 2019-2022 (tCO
2
e)
2019 2020 2021 2022
10,410
10,913
9,876
7,799
■
Upstream transportation and distribution
■
Fuel-and-energy-related-activities
■ Waste
■ Business travel
■ Electricity location-based
■ Electricity renewable
■ District heating
■ Company cars
51
Carbon accounting
Note: Reporting of GHG emissions and energy consumption by Europris accords with a corporate accounting and
reporting standard. It takes account of the following GHGs, all converted to CO
2
equivalents (CO
2
e): CO
2
, CH
4
, N
2
O,
SF
6
, HFCs, PFCs and NF
3
. Statistics from the International Energy Agency (IEA Stat) provide electricity emission
factors. These are based on either local averages for heating/cooling or average IEA statistics. GHG emissions are
consolidated on the basis of where the group has operational control. Climate accounting has been revised (ISAE
3410 Assurance engagement on greenhouse gas statements with limited assurance) for scope 1, scope 2 and waste
in scope 3. Partly owned subsidiaries are only included in scope 1 and 2.
The group’s carbon inventory is divided into direct
and indirect emissions scopes in accordance with
the GHG Protocol. Scope 1 covers all direct
emission sources, including all use of fossil fuels for
stationary combustion or transport in owned, leased
or rented assets. For Europris, scope 1 emissions
are solely related to the use of leased cars by
employees in direct operations. Scope 2 includes
indirect emissions related to purchased energy,
electricity and heating/cooling. Where Europris is
concerned, this represents all energy consumed in
its stores, head ofce and warehouses. Scope 3
includes indirect emissions resulting from upstream
and downstream value-chain activities which the
group does not control. Europris currently measures
fuel- and energy-related activities, upstream
transport and distribution, waste and business travel
in this scope. Upstream transportation and distri-
bution include emissions from the warehouses to
the store facilities, and not overseas transportation
and distribution from the factories. The group is
working on incorporation of these emissions in
2023.
Europris is pleased to have reduced its total
location-based GHG emissions (scopes 1 and 2,
and selected scope 3 categories) by 21 per cent in
2022. This was achieved despite opening six
additional stores during the year. The decrease
primarily reects energy efciency measures, lower
energy consumption, increased recycling rates and
improvements in logistics.
Emissions from location-based electricity fell by
21.4 per cent from 2021 to 2022 305 tCO
2
e as a
result of targeted emission-reduction activities and
a cut in the emission factor for the Nordic electricity
grid. This factor equals an emission reduction of 216
tonnes of CO
2
e, while the group’s actual activities
account for 89 tCO
2
e. Goods transport, energy use
and waste were its main sources of carbon
GHG emission, tCO
2
e 2020 2021 2022
Change from
previous year
Scope 1
Transport total 163.3 152.1 132.1 (13.1%)
Scope 2
District heating 3.6 4.2 3.9 (7.1%)
Electricity renewable - - - -
Electricity location-based 2,038.3 1,425.7 1,121.1 (21.4%)
Electricity market-based 13,074.9 10,715.5 11,469.9 7.0%
Location-based energy emissions 2,041.9 1,429.9 1,125.0 (27.1%)
Market-based energy emissions 13,078.5 10,719.7 11,473.8 6.6%
Total energy consumption (MWh) 51,160.9 47,296.7 44,223.7 (6.9%)
Scope 3
Business travel 101.6 95.7 172.1 79.8%
Waste 889.8 1,106.6 948.0 (14.3%)
Fuel-and-energy-related activities 1,486.0 629.4 362.1 (42.5%)
Upstream transport and distribution 6,230.6 6,462.1 5,060.0 (21.7%)
Total location-based emissions 10,913.2 9,875.8 7,799.3 (21.0%)
Total market-based emissions 21,949.8 19,165.6 18,148.1 (5.3%)
52
emissions during this period, while business travel
(scope 3) and well-to-wheel emissions from transport
using group-owned vehicles (scopes 1 and 3)
accounted for only 4.4 per cent of total emissions.
Scope 1 - Own vehicles
In accordance with the vehicle policy at 30 June
2021, zero-emission vehicles are the only possible
choice. Exceptions can only be made for regional
managers located in areas where mileage/range is
insufcient for the travel distance to stores, and must
be approved by the relevant departmental head in
the management team. In 2022, 78 per cent of cars
leased were electric compared with 70 per cent the
year before. Scope 1 emissions were thereby
reduced by 13 per cent year-on-year.
Scope 2 - Energy
Europris is pleased to see results from the actions
it has taken to cut energy consumption. The group
has pursued traceable and targeted activities to
promote sustainable operations, technical solutions
and optimised energy use. Both the head ofce in
Fredrikstad and the logistics centre in Moss are
Eco-Lighthouse certied, with the logistics centre
also securing Breem certication in 2022. Further-
more, the head ofce incorporates such energy-
saving measures as good insulation, external sun
shading, LED lighting, motion detectors to control
lights, a ventilation system which switches off after
working hours, and solar panels.
The total energy consumed by the group
amounted to 44,223.7 MWh in 2022 (-6.9 per cent).
The group continues to utilise self-generated
electricity through solar panels at its head ofce.
These generated 47.7 MWh in 2022 (45.2 MWh in
2021) or 11.1 per cent of the electricity consumed at
head ofce. Europris is also exploring other options
for increasing self-generated electricity capacity in
its operations, such as installing of solar panels on
its central warehouse. Europris´ warehouses
achieved a 6.2 per cent cut in electricity consumption
and a 18.6 per cent reduction in energy used for
heating in 2022.
Combined with emission reductions in the Nordic
electricity grid, driven primarily by increased use of
renewable energy, these efforts contributed to a
signicant reduction in scope 2 emissions and
represented a total cut in emissions of 21.4 per cent
in 2022 when using the location-based accounting
method.
The year 2022 saw much attention devoted to
energy-saving measures in stores, with close
monitoring of energy use and with best practice
shared across stores and regions. The group cut
consumption by nine per cent to 101.7 kWh/m
2
compared with 110.9 kWh/m
2
in 2021. Specic
measures taken to reach these results included:
• better monitoring technology
• improved routines for energy use and follow-up
of saving measures in stores, with one-to-one
follow up for underperforming stores
• new heating and ventilation systems.
In line with the KPI of reducing energy
consumption by 20 per cent by 2030, the group will
maintain the great attention paid to managing correct
temperatures in stores by using energy monitoring
technology through Energima. In addition, work
continues to reach the target of using only LED light
ttings across all the stores.
Europris will continue its efforts to reduce
emissions from its operations. Initiatives to enable
customers to be more environment-friendly began in
2022 and will be continued in 2023 – by further
introducing environmental stations, for example,
where customers can return used batteries, small
electrical devices, and uorescent tubes.
PILOT PROJECT:
energy saving with doormats made from energy saving with doormats made from
recycled shing netsrecycled shing nets
Europris ran a trial in 2022 to develop a more
circular way of using doormats in its stores.
These are currently changed several times a
week, which involves frequent transport and
cleaning. Making the new mats from recycled
shing nets means they absorb water better,
allowing them to remain in place permanently
while store staff simply vacuum and shake off
the dirt. The trial proved successful, and the plan
is to implement this solution permanently in all
stores by the second quarter of 2023.
53
Scope 3 - Transport
Emissions from transporting sourced goods were
included in the climate report for the rst time in
2019, and showed that GHGs released from goods
transport exceeded Europris´ own direct output. The
group has recognised this impact and is working
with its suppliers to nd efcient low-emission
logistical solutions. Monitoring emissions from
transporting sourced goods provides a basis for
further dialogue with partners on nding more
sustainable approaches. Total emissions related to
lorry transport from warehouses to stores were
reduced by 21.7 per cent in 2022.
In 2022, the group expanded its eet of 25-metre
heavy goods vehicles (HGVs) from 10 to 16. That
increases the pallets carried on each vehicle and
thereby reduces the number of HGVs on the road.
This initiative contributed to a reduction of 350
tonnes of CO
2
e (tCO
2
e) in 2022 (7 per cent of these
emissions).
The group is on a continuous journey to convert
transport from fossil fuels to electricity, and strategic
cooperation is the key to achieving results. Dialogue
has been initiated with several companies which
share the same goals, including Asko, the Port of
Moss, Greencarrier, Noah AS and Enride AS.
PILOT PROJECT:
using second-hand batteries to store using second-hand batteries to store
energy (project period 2020-23)energy (project period 2020-23)
Through its partnership with Energima,
Europris has embarked on a pilot project for
storing electricity. This work is partly funded by
Enova SF, a company owned by the Ministry of
Climate and the Environment. The ambition is to
cut GHG emissions, develop energy and
climate technology, and strengthen energy
security.
The pilot aims to learn how to improve the life
cycle of both new and second-hand batteries,
while handling peak load management (peak
shifting) in a building’s power network. An instal
-
lation in the Europris store at Råde will primarily be
used for testing and optimising a cloud-based
energy management system (EMS). This controls
charging and discharging of the battery pack to
avoid peak tariffs or to buy energy when prices
are low over a 24-hour cycle. Using batteries
smoothens the load on the mains supply and
reduces losses in the electricity transmission
system. Local power capacity is effectively
increased without the need to upgrade the
building’s power intake.
The EMS was signicantly improved during
2022. It takes account of both far more volatile
spot prices and reducing power peaks. The
system is now autonomously controlled on the
basis of machine learning (ML).
Experience from the pilot so far, given Europris’
portfolio of buildings, shows that output reductions
of 25-35 per cent are achievable.
54
As an example of this type of strategic co-
operation, Europris has created a zero-emission
transport stage together with Asko across the Oslo
Fjord between Moss and Horten, placing 10-15
trailer-loads per week on autonomous electric
ferries from October 2022. Europris has also tested
the use of electric lorries for deliveries in Oslo and
eastern Norway. Even though these examples do
not account at present for large cuts in emissions,
they represent an important start to reducing the
group’s footprint from fossil-fuel logistics.
Another project involves electrifying transport
between Moss and Tromsø by using electric lorries
from Moss to Oslo, then train to Bodø and nally a
new shipping service to Tromsø. A pilot is also
being run by six Europris stores in northern Norway
for goods delivery by rail instead of road. These
initiatives started in 2022 and will continue in 2023
with a heavy emphasis on strategic cooperation in
order to reach the long-term target of zero-emission
transport. Europris continuously seeks to nd better
and more cost-efcient solutions for sustainable
transport.
Europris has created zero-emission
autonomous electric ferries together
with Asko across the Oslo Fjord
between Moss and Horten.
55
Scope 3 - Circular solutions
and waste reduction
A growing number of stores puts pressure on
Europris to decouple business growth and environ-
mental impact. That in turn underlines the import-
ance of waste management and circular solutions.
The group is committed to reducing waste in its
operations, and will continue to seek solutions for
marking such cuts and for helping its customers to
do the same.
Europris has a partnership with the waste
management company Ragn-Sells to increase its
efforts in this area. The group has negotiated a new
and better agreement which catalyses improved
recycling action, since it gets more back when
bringing volume in. This applies to all stores, the
logistics centre and head ofce.
The aim is to reach a total recycling rate for the
group of 85 per cent by the end of 2025. This rate
rose from 75 to 78 per cent in 2022, when total
waste-related emissions were reduced by 14.3 per
cent compared with 2021. That reects quality
improvements to waste data in terms of coverage,
increased granularity in waste fractions and waste
reduction initiatives.
Europris is pleased to see that overall enhance
-
ments are moving in the right direction, and under-
stands that reaching a total recycling rate of 85 per
cent requires great concentration on nding
solutions and further improvements. In 2023, the
group will review all waste equipment in stores and
replace containers with 1,000-litre fractions for
mixed waste. This should make better provision for
achieving targets. Great attention will also be
devoted to making improvements in areas where
results are currently weak. Together with
Ragn-Sells, Europris will continue to increase its
efforts to achieve further gains in this area.
Electric transportation from store to waste disposal.
56
Climate resilience
The Centre for Climate and Energy Solutions
denes climate resilience as “the ability to anticipate,
prepare for and respond to hazardous events, trends
or disturbances related to climate”. Addressing
impacts relating to climate resilience is essential to
the way Europris will be transitioning to a green
economy.
The scope of environmental impacts is con-
tinuously broadening, and companies are increas-
ingly expected to prepare for and mitigate them. By
working on climate resilience, Europris can mitigate
potentially negative impacts on the climate by imple
-
menting initiatives more suited for a low-carbon
economy. Internal policies and processes are needed
to tackle such potentially negative impacts as loss of
biodiversity, deforestation and emissions. Europris’
most signicant contribution to helping combat
climate change is to address these potential future
impacts right now. Its policy commitment to this
material topic can be found in the section on gover-
nance.
Climate resilience is a new material topic based on
the 2022 materiality assessment. A selection of
impacts are illustrated in the table below.
These impacts relate directly to the group’s opera
-
tions. They are often systemic and not specic to a
single site or operation in Europris. However, its
business relationships can cause negative impacts
along the value chain even if the group does not
contribute directly to them.
Measures were taken in 2022 to mitigate potential
future impacts. In its Capital Markets Update during
December, Europris announced its commitment to a
net zero pathway aligned with the SBTi require
-
ments. This involves signicant action points. During
2022, the group worked towards establishing a
complete carbon accounting, establishing and
identifying reporting routines for biodiversity and
identifying the nancial implications of Europris’ risks
and opportunities related to climate change.
Measures enable Europris both to mitigate the risk of
potential future impacts and to deliver on stakeholder
expectations – such as upcoming legislation and
voluntary reporting frameworks.
Material topic Overview of impact Actual / potential Negative / positive
Related to
human rights
Climate resilience Lack of internal processes and
policies related to climate-
related impacts and biodiversity
Actual Negative No
Lack of policies to counter
deforestation and biodiversity
loss may lead to selecting
suppliers with harmful
operations
Actual Negative No
Lack of internal resources to
meet new legal requirements
may lead to a risk of non-
compliance
Actual Negative No
57
Physical climate-related risks, such as the
increased frequency and severity of extreme
weather events, could have a negative effect on the
Europris value chain. Examples of this include
disruption in the transportation of goods, access to
raw materials and the urgency for Europris to adapt
to circular business models. Transitional and
liability risks are linked to changing customer
preferences. To mitigate the effect of the risks
identied, Europris carries out ongoing assess-
ments of its product portfolio and logistics opera-
tions. Regular dialogue is conducted with stake-
holders to ensure that their expectations are met.
The group may also identify several climate-
related opportunities, such as increasing market
share through the offer of more sustainable
products. Working to make the Europris value chain
more sustainable will reduce indirect emissions
from the production of products, for example, and
through low-emission transport solutions. Being a
responsible group which takes sustainability
seriously is also important for existing and future
employees. Work in these areas can enhance
employee satisfaction and thereby contribute to
employee retention and attract new talent to the
group, while also mitigating the risk of elevated
employee turnover. Europris will assess extending
its reporting on TCFD disclosures in 2023.
Figure: Europris’ most significant climate-related risks and opportunities identified in accordance with the Task Force
on Climate-related Financial Disclosures (TCFD)-framework.
Opportunity
Risk
management
and
sustainability
strategy
Climate risk
Physical
• Disruptions in the supply chain
• Reduced access to products and
raw materials
• Public regulations
Transition
• Changes in consumer preferences
• Stakeholder ESG demands
• Employee and talent engagement
Liability
• Reputational risk
New market for sustainability
• Increased share of third party
certified products
• Reduced emissions from production
• Increased low-emission transport
solutions
• Better operational control of the
supply chain
• Attract new talent and employees
58
59
Dedicated employees are Europris’ most important asset. Taking care of them means being
a responsible employer, keeping everyone safe and developing personnel to full their
potential. This chapter explains how Europris works continuously to be an attractive and
inclusive employer. It also describes recruitment and promotion processes, training and
development through the Europris Academy, pay policy, working conditions, and the material
topics equal opportunities and an inclusive work environment and health and safety in the
workplace.
Our people
Ambition:
Being an attractive place to
work, where employees thrive
and experience personal
development.
Commitment:
Be an ethical and responsible
company which develops and
cares for its employees.
Material topics:
• Equal opportunities and an
inclusive work environment
• Health and safety in the
workplace.
Additionally, Europris has
the following policies:
• Zero tolerance for discri-
mination at the workplace
• Zero injuries at the workplace.
Sickness absence
Attractive workplace
Gender balance in leading positions
Target: Annual decrease in sickness absence
Target: Be an attractive
workplace, with a score of
at least 6 on a scale of 1-7
Source:
employee survey 2022
Target: Ensure a balanced
split between men and
women in leading positions
Leading positions include
management and store
managers (305 employees)
■
Women ■ Men
50.5%49.5%
9,1%
2020 2021 2022
7,6%
8,8%
6.3
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
60
Equal opportunities and an
inclusive work environment
Europris believes in equal opportunities for all
people, which is why this is a material topic for the
group. In order to meet the ambition of being an
attractive employer and increasing the annual
attendance percentage, it is essential to create an
inclusive work environment where employees have
equal opportunities regardless of age, gender,
religion, ethnicity, nationality, disability, sexual
orientation, sexual identity or stage of life. Europris
supports the ability of its employees to combine work
and private-life. It aims to be a workplace where no
disability-based discrimination occurs. As far as
possible, individual customisation is used to adapt
the workplace and working tasks where required –
either temporarily or permanently – for existing
employees or to make provision for job applicants
with disabilities.
A range of impacts, both direct and indirect, have
been identied by Europris in this material topic.
Partnerships or other business relationships may
incorporate a range of negative impacts in the value
chain which the group may not be directly involved
in. However, Europris recognises these impacts and
addresses them by having a transparent and open
recruitment policy as well as a policy of zero discrimi
-
nation. A selection of impacts are presented in the
table below.
The group’s core values and business ethics are
communicated regularly and clearly so that
employees can use them as guidelines in their
working day. It has also launched a set of leadership
principles to guide managers on desired behaviour.
Work with these principles will be a key part of the
management training programme in 2023.
Policies and guidelines in Europris apply to all
employees, whether full-time, part-time, permanent
or temporary. A separate policy on diversity and
non-discrimination was approved by the board in
2022. This topic had previously been covered by the
ethics policy but was separated out to underline its
importance and to strengthen the way Europris will
work to prevent any harassment or discrimination
and to promote equality. The group has zero
tolerance for any form of harassment or bullying, and
encourages employees to report any unacceptable
behaviour. Should such behaviour be reported or
discovered, an investigation will be pursued with the
involvement of the HR department to ensure that
appropriate measures are taken.
The group’s whistleblower system, described in the
section on governance, is a tool for capturing any
non-compliance with the ban on discrimination or
harassment.
Europris invests in future employee generations by
collaborating with social welfare schemes, such as
those run by the Norwegian Labour and Welfare
Material topic Overview of impact Actual / potential Negative / positive
Related to
human rights
Equal opportunities
and an inclusive work
environment
Lack of HSE routines, which
leads to bullying or harassment
of employees, or discrimination
against them
Potential Negative Yes
A gender balance in leading
roles will enable Europris to
grow a diverse and inclusive
working environment
Potential Positive Yes
Europris complies with
Norway’s Equality and
Anti-Discrimination Act in order
to improve the position of
women and minorities
Actual Positive Yes
61
Administration (NAV), in order to meet the group’s
ambitions of including people who have dropped out
of working life. The group will continue to pursue
constant improvements in fostering an inclusive and
constructive workplace without discrimination or
inequality.
Recruitment and promotion
One of the group’s ambitions is that at least 50 per
cent of its store managers are internally recruited.
The proportion of such posts lled in this way during
2022 was 83 per cent, compared with 85 per cent
the year before. While the group gives emphasis to
internal candidates, however, every recruitment
process is advertised externally to ensure that all
aspects of diversity are maintained. The group ranks
candidates on the basis of their personal traits and
skills to reduce the risk of discrimination and uncons
-
cious prejudice during the recruitment process.
Whenever possible, the aspiration is to have at least
one candidate from each gender in the nal round of
the recruiting process. Employee turnover was 23.4
per cent, up from 19.8 per cent in 2021 (this includes
temporary workers). The main reason to the increase
was a deactivation in the system of employees that
had not worked for the company in 2022.
Training and development
Revitalised in 2020, the Europris Academy
provides relevant training for employees across the
organisation. The learning management system
(LMS) ensures that expertise development and
training are documented, followed up, systematised
and available at all times.
Store employees participate in training across a
diverse range of subjects during a year, provided
both virtually and physically depending on the topic
covered. The main courses given fall within the
following categories:
• product, concept and seasonal execution
• leadership and store management
• onboarding of new employees
• HSE
To ensure a good onboarding process for new
store managers, Europris has a total of 17 mentors
tasked with inspiring and supporting such personnel
available across the chain.
A digital pre-boarding programme was introduced
in 2022 with the goal of ensuring a smooth intro-
62
duction to Europris before an employee has their rst
working day. This covers the group’s history, values,
culture and sustainability.
To strengthen management and promote an
innovation mindset, all middle managers have been
enrolled in a combined strategy and leadership
programme. This was initiated in 2021 with attention
concentrated on changing market trends, and
continued in 2022 with the emphasis on how to lead
innovation and change in the strategic area of
sustainability. It will continue in 2023. Several
physical gatherings were held during 2022 where
participants worked in small groups on selected case
projects in innovation and the circular economy,
leading to a nal session where all the groups
presented their case results. Further work will be
done on relevant input from this exercise. In addition
to the physical meetings, participants had regular
exposure to relevant videos, podcasts, coaching and
group work. A total of 2,745 hours were devoted to
the programme in 2022.
Pay and work conditions
Overall, more women than men work in the
Europris stores and more men than women in its
warehouses, which is representative for this type
of industry. So is the high proportion of part-time
contracts. The group’s mapping of involuntary
part-time work in 2021 was addressed during 2022,
and such employment contracts were converted
where possible. A new routine will be implemented
in 2023 to ensure compliance with new legislation
on the issue.
The group’s gender pay gap shows that men are
paid on average 11.5 per cent more than women,
compared with 12 per cent in 2021. This reects a
larger number of males in more senior positions and
an age differential where men have greater seniority
on average. The group monitors that employees with
individual pay agreements receive equal pay for
equal work. Any deviations must be explained by
differences in education, training, competence, age
or other relevant criteria. Should any unwarranted
pay gap be discovered, it will be handled on a
case-by-case basis and efforts made to close any
unintentional differential. Action on the gender pay
gap is part of the annual pay adjustment process,
where any inequitable differences are addressed.
Diversity is taken into account in recruitment and
promotion processes. The majority of the group’s
employees are covered by collective pay agreements
which ensure equal pay for equal work.
Work was pursued by the group in 2022 to improve
and structure its data on diversity and equal oppor-
tunities in order to improve analysis and enable the
group to work more strategically on this issue. The
group will work in 2023 to automate and structure
these data into dashboards, which will make the
information more accessible to and more up-to-date
for managers.
The group works continuously on non-
discrimination and a safe and healthy work
environment. These efforts cover such areas as
recruitment, promotion, training and development,
pay and working conditions (including involuntary
part-time contracts), accommodation of special
needs, stages of life, bullying and sexual
harassment.
63
Health and safety in the workplace
Most of the group’s employees work in the stores
and warehouses. Ensuring that the stores are
welcoming and stocked with the merchandise
customers want requires physical work, and
personnel are therefore prone to occupational
injuries and illness. HSE measures are of central
importance to Europris in promoting a safe work
environment and preventing accidents, and are
therefore a material topic.
A range of impacts were identied by Europris
on this material topic. The group recognises these
impacts and addresses them through a dedicated
human resources (HR) department and two design-
ated HSE managers, who work continuously on
following up any issues and on ensuring learning
and improvement. The group’s work on HSE is
rooted in the Norwegian Working Environment Act,
and the framework provided by the Norwegian
Labour Inspection Authority is used as the basis
for evaluating risks and creating action plans.
A selection of impacts are presented in the table
below.
Work environment
The annual employee engagement survey and
various physical meetings throughout the year are
important channels for employee feedback.
Europris also has a work environment committee
(AMU), which holds four meetings a year.
Comprising representatives from head ofce,
stores and warehouses, it plays an important role in
the way the group works on:
i) investigating the risk of discrimination,
inequality or HSE issues
ii) analysing causes of the identied risks
iii) suggesting and ensuring implementation
of appropriate measures
iv) evaluating the results of measures taken.
To map risks, safety hazards or breaches of its
policies, the group has electronic systems for
recording deviations which are accessible to all
employees. It regularly conducts employee inter
-
views and satisfaction surveys, risk assessments
and physical inspections. Based on the results from
the employee satisfaction surveys, the group
carries out a climate survey if necessary to under-
stand the situation better, plus pursuing dialogue
with relevant employees on taking the required
action. The annual employee engagement survey
in 2022 showed a high level of job satisfaction.
Overall, the strong results from previous years were
maintained.
Employees can report work-related risks or any
deviations/breaches via their managers, the HSE
manager or the HR department. These can also be
reported anonymously through the external whistle
-
blower system. The HSE managers, together with
safety delegates and other employees, follow up
any identied deviations. Information obtained is
used to establish policies and improved work
practices.
Material topic Overview of impact Actual / potential Negative / positive
Related to
human rights
Health and safety
in the workplace
Insufcient training in HSE
may lead to increased fre-
quency of injuries and sickness
absence for employees
Actual Negative No
Preventive activities will
limit the extent of work-
related accidents
Actual Positive No
Mental health care provided
for employees prevents stress,
low productivity, depression,
sickness and more absence
Actual Positive Yes
64
The workplace must never pose health and/or
safety hazards for employees. To ensure safe and
healthy working conditions, the group devotes great
efforts to preventative and rehabilitative measures –
including e-training of store staff, in-house HSE
courses and specialised courses for elected safety
delegates.
Preventive initiatives
Preventive initiatives are important for a workplace
which promotes good health. All employees are
enrolled in a HR management system, which
contains several modules for ensuring easy
management of employees and provides a solid
foundation of HR master data secured in line with the
GDPR. All employees have access to information,
processes and routines in internal handbooks, which
are updated in accordance with current laws and
regulations.
To mitigate the level of sickness absence, the
group has developed several “how to” e-learning
courses for all employees. The majority of its
managers took a one-day physical training course in
2022, which concentrated on regulations, best
practice in using the HR system, case studies and
dialogue. This has been followed up by a refresher
course after three months to reinforce the lessons
learnt. During 2022, the group invested in an
extensive ergonomic survey to identify root causes
which might cause injuries and sickness absence in
the stores. Findings from this survey will lay the
basis for preventive measures in 2023.
All employees at head ofce and warehouses, as
well as store managers, are covered by corporate
health insurance. This ensures that employees
receive rapid treatment if they become ill or are
injured, in addition to treatment by psychologists,
chiropractors, physiotherapists and so forth.
The group works continuously to be a workplace
which promotes good health. A signicant ambition
up to 2025 is to improve attendance and reduce
sickness absence among employees. To achieve
this, the group will continue to facilitate HSE-related
learning and training programmes for managers and
employees. Specic initiatives targeting mental
health are high on the agenda, since absences
related to such issues increased during the
pandemic.
65
Corporate social responsibility (CSR) has become an increasingly important issue for
companies worldwide, and is dened as “taking actions aimed at beneting the society that the
business operates in” (Corporate Finance Institute, 2022). Making a local contribution is very
important for Europris because the 276 stores it had at 31 December 2022 are spread
throughout Norway. They often play an important role in smaller communities, and the group
wants to contribute positively to wellbeing in the local societies it is part of. This chapter explains
how Europris engages with and gives back to these communities.
Our social responsibility
Ambition:
Contribute positively to people
and the environments in the
many local communities we
are a part of.
Commitment:
Ensure that customers and
other stakeholders are
satisfied and that Europris
gives back to society and the
local community.
Material topics:
• Community engagement
and local value creation.
Number of people in work training
Contributing positively to local communities
Target: Give people the opportunity to be included in working life.
Target:
Be a responsible company which contributes positively to local
communities, with a score of at least 4 on a scale of 1-5
Source:
Employee survey 2022 (head office and distribution centre)
122
2020 2021 2022
81
137
Contributing positively to local
communities
4.2
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
40
17 ICONS: COLOUR VERSION
ICONS
When an icon is on a square, that square must be proportional 1 x 1.
The white icon should be contained by its dened colour, or black
background.
Do not alter the colours of the SDG icons.
ICONS
In January 2018, the United Nations launched a revised design of Icon 10, as seen on this page
66
Community engagement
and local value creation
Local value creation and community engagement
is naturally a material topic, since Europris cares
greatly about its customers and the local com-
munities which it operates in. The group engages
with stakeholders through sponsorships, partner-
ships and other community-building activities, as
well as with charities contributing to both social and
environmental causes. By making a large share of
sustainable choices easily accessible and communi
-
cated well to everyone, the group plays an important
role as an enabler of more sustainable but affordable
living. Europris recognises its position as a local
value creator and will always comply with local tax
regulations as well as striving to create value through
job creation and supporting the local community via
its indirect value creation.
A range of impacts have been identied with this
material topic. Some are presented below.
Our partnerships
The group’s impact on local communities is a result
of relationships with such organisations as the City
Mission, Spond and the Norwegian Retailers
Environment Fund. Europris contributes by
supporting local activities and organisations, such as
sports clubs, humanitarian and charitable organisa-
tions, cultural festivals and other events which take
place in the areas where it has a presence. Moreover,
the group supplies and donates products to several
projects initiated locally by the City Mission, the
Helping Heart and other organisations.
A corporate project on Europris as the local store
was rolled out in 2022. The aim was to standardise
procedures and provide local store managers with
a toolkit of initiatives aligned with the group’s ESG
strategy, which enables them to serve and contribute
to their communities. Work on this project has been
communicated well internally and will continue to be
pursued with increased vigour during 2023.
Through its cooperation with the City Mission, the
group provides annual nancial contributions to help
improve conditions for those in need. Europris also
contributes to this partnership by for example
supplying products for projects at cost price, donating
any surplus products it might have, distributing
campaign materials for the City Mission through its
communication platforms, and placing clothing
containers outside its stores.
Europris has been a member of the Norwegian
Retailers Environment Fund since 2018. Members
donate NOK 1.00 to the fund for each plastic bag
they sell. The group thereby contributed NOK 15.7
million to the fund in 2022. The proceeds are
invested in local and global initiatives based on UN
SDG 14, with the emphasis on three areas – reducing
plastic waste, increasing resource efciency, and
cleaning shorelines. Initiatives in 2022 included the
following:
• Participation in Clean Norway, the country’s rst
comprehensive national clean-up programme,
which covered in 10 counties. Europris
employees were encouraged to join local
clean-ups. The group staged a competition
during its sustainability week in 2022 where all
employees in the group were encouraged to ll
Material topic Overview of impact Actual / potential Negative / positive
Related to
human rights
Community engagement
and local value creation
Lack of information and
knowledge about a healthy
lifestyle, leading to obesity
Actual Negative No
Supporting local sports teams
has a positive effect and helps
to reduce inequality
Actual Positive No
Discarding products after their
expiry date causes waste rather
than contributing to a circular
economy
Actual Negative No
67
one plastic bag with waste from their neigh-
bourhood, and ve winners received a prize for
their efforts. This created great participation and
engagement internally.
• Helping to clear away 4,000 tonnes of plastic
waste from the natural environment.
• Helping to clean up 6,000 kilometres of
coastline.
Inclusion and work training
Ensuring that no one is left behind is integral to
sustainable development. The desire to address this is
also the reason for adding SDG 10 – reduced inequa-
lities – to the group’s strategy. Attention in 2022 was
revised to emphasis reducing inequality in and
between Norwegian communities by contributing
positively to human wellbeing at local level. Europris
decided to add SDG 10 because of its recognition that
the group can make a contribution which matters to
vulnerable groups and minorities.
The group collaborates with social welfare schemes
like the one run by the NAV, and welcomed 39 new
employees under this umbrella in 2022, compared with
27 the year before. A further 122 people were included
in our work training programme the year, as against
137 in 2021. This is an important partnership for
Europris because it allows the group to contribute to an
extended aspect of value creation by providing people
with the opportunity to gain work experience and return
to the workforce.
Europris will continue to strengthen its local presence
by establishing stores in new locations around Norway.
This allows people to shop where they live, making
their lives more convenient and providing sustainable
but affordable products for everyone.
The group worked in late 2022 on rening its strategy
within social responsibility for two reasons. One is the
incorporation of a new UN SDG. The other is providing
content to support the local store project, which aims to
standardise procedures and provide store managers
with tools which make them better able to serve their
communities. The group will evaluate future strategic
partnerships in order to secure a good t between this
initiative and strategic partners at a national level.
Ole Øverlien Ravndal (21) had lost all Ole Øverlien Ravndal (21) had lost all
enthusiasm for and faith in school after years enthusiasm for and faith in school after years
of bullying and failing to t in. Four years ago, of bullying and failing to t in. Four years ago,
he started working one day a week at Europris he started working one day a week at Europris
Ålgård. His life has now totally changed. Ålgård. His life has now totally changed.
Good dialogue and support from store manager Sølvi
Iren Søyland gave Ole the chance he needed. The
number of days he worked increased rapidly as he proved
able to tackle the job in a very positive way. He developed
a network and friendships among colleagues and proved
to himself and Søyland that he was in the right place.
Through a dedicated commitment, Ole has earned his
trade certicate after passing several tests and
documenting his in-store work experience. He is now a
permanent part of the team and working ve days a week.
“Ole has a customer service mindset and a positive
attitude which many others can only dream of,” Søyland
says.
Over the years, Europris Ålgård has been among the
group’s stores engaged in recruiting young people who
have dropped out of the school system.
Søyland welcomes the chance to utilise and include
youngsters like Ole. “There’s so much drive in these
youngsters when you get the motivation right,” she says.
“It’s so important to give them a chance to grow and be
included.
“You need to have it in you to succeed as a store
employee. And Ole denitely does.”
Photo: Gjestalbuen/Hilde Anette Ebbesvik
68
Store openings in 2022
-Dette er noe av det som gjør det ekstra spennende å jobbe i Europris, sier Stian Kristoffersen.
Han har vært i Europris siden 2008 og vet hva han snakker om. -Ingen dag er lik, og alltid kan vi
se frem mot nye sesonger, fremholder sjefen for de i alt 14 medarbeiderne, som alle gleder seg til
en sprudlende og fin åpningsfest tirsdag.
Fire nye åpnet, fem flyttet i nye lokaler og elleve utvidelser eller moderniseringer
Europris-kjeden åpnet i 2021 fire nye butikker, gjennomførte fem relokaliseringer og fem
utvidelser, mens seks butikker ble bygget om og modernisert.
Vokser mer enn markedet
Etter den eventyrlige veksten i 2020 hvor totalveksten ble 27,8%, hadde kjeden i 2021 en
vekst på 2,2%. I samme periode hadde butikkhandel innen bredt vareutvalg en tilbakegang på
0,6% (SSB tall fra Virke). Europris har hatt vekst hvert eneste år de siste 29 årene. Den årlige
kunde- og markedsundersøkelsen viser at kundene er fornøyde og Europris har hatt fremgang
på viktige parametere som pris persepsjon, kampanjer, produkt kvalitet, kundeopplevelse og
service. Europris vil fortsette å oppgradere både butikker og kategorier, samt relokalisere og
åpne nye butikker for å fortsette å tilfredsstille kundene i årene som kommer.
For ytterligere informasjon kontakt Jon Boye Borgersen – Direktør Konsept, kategori og
markedsføring, telefon 900 16 995, jon.boye.borgersen@europris.no, eller butikksjef Stian
Kristoffersen, telefon 98411081, epost Stian.Kristoffersen@europris.no. Informasjon er også
tilgjengelig på våre internettsider www.europris.no .
Billedtekst:
Europris-medarbeidere klare for åpning av ny butikk i Lagunen tirsdag. Fra venstre:
Ibrahim Awes, Marius Williams, butikksjef Stian Kristoffersen, Anne Sofie Romslo,
Silje Hamre, Kristin Hoff Skurtveit, Charlotte Vedvik og Robin Exelby.
Billedtekst:
Europris-medarbeidere klare for åpning på Fjellhamar i Lørenskog kommune tirsdag,
Fra venstre: Victoria Anahita Hansen, Sujeth Ramachandran, butikksjef Jacob Edward,
Jamie Searlie, Kokob Teklehimanot, nestkommanderende Anela Bostantzoui, Abdul-Malik,
Kadylkhanov Ilmanovich og Rowena Barrosa (foran).
Europris-medarbeidere klare for offisiell åpning i Nittedal torsdag. Fra venstre
butikksjef Kjetil Hansen, Sara Victoria Oppedal, Emilie Danielsen, Hristijan Vujicic,
Vilde Johanne Olaussen, Cat Tien Tran Nguyen, Sofia Milasa, Tamiru Lyasu Cherenet.
Marie Rekdal Wold Var ikke tilstede da bildet ble tatt
Lagunen
Fjellhamar
Nittedal
Frøya
Ensjø
Setermoen
69
GRI’s are for Europris AS, Europris Butikkdrift AS and Europris Holding AS, unless otherwise specied. Numbers are
based on status at 31 December 2022.
2.8 Workers who are not employees
Europris had 27 franchises in 2022, with a total
of 185 FTEs compared with 193 in 2021. The
primary reason why the total number of employees
decreased here was that the number of franchise
stores declined by one. These people do the same
work as other managers and employees in Europris
stores.
401-3 Parental leave
Europris offers all employees, both full- and
part-time, benets in accordance with Norwegian
legislation on parental leave.
GRI 2.7 Employment type
Men Women
Permanent employees 854 1,176
Temporary employees 168 275
Employees without guaranteed hours 359 512
Total by gender 1,381 1,963
Total 3,344
GRI 401-3 Parental leave
Men Women
Number of employees that took parental leave 44 39
Average numbers of weeks of parental leave 11 34
GRI input – our people
Under 30 years 375 422
30-50 years 73 114
Over 50 years 15 30
Total new hires by gender 463 566
Total 1,029
GRI 401-1a New hires
Men Women
Under 30 years 36.5% 41.0%
30-50 years 7.1% 11.1%
Over 50 years 1.5% 2.9%
Total new hires by gender 45.0% 55.0%
GRI 401-1a New hires, share of total
Men Women
Number of
Number of
GRI 406-2
Gender balance and pay
for different positions Men Women
Pay
difference
men vs
women
Management 39 10 16.2 %
Store managers 112 144 2.7 %
Remaining staff on individual
pay agreements
108 79 11.4 %
Employees on collective
agreements
1,122 1,730 1.9 %
Total 1,381 1,963 11.5 %
Number of
Share of
GRI 405-1
Employees, age distribution
Under 30
Years
30-50
Years
Over 50
years
Management 0% 54% 46%
Store managers 6% 71% 23%
Remaining staff on individual
pay agreements
12% 54% 34%
Employees on collective
agreements
54% 35% 11%
Total 47% 39% 13%
Board of directors 0% 14% 86%
Share
GRI 405-1 Employees, gender distribution Men Women
Management 80% 20%
Store managers 44% 56%
Remaining staff on individual pay
agreements
58% 42%
Employees on collective agreements
39% 61%
Total
41% 59%
Board of directors 57% 43%
Share of
Full-time employees 595 495
Part-time employees 786 1,468
Total by gender 1,381 1,963
Total 3,344
GRI 2.7 Employment capacity
Men Women
Number of
70
Munkedamsveien 45
Postboks 1704 Vika
0121 Oslo
www.bdo.no
Independent Auditor's Report 2022 – Europris ASA Page 1 of 2
Independent Auditor's Report
To the board of directors of Europris ASA
We have been engaged by the Management of Europris ASA to provide limited assurance in respect
of the information presented in scope 1, scope 2 and category 5 Waste in scope 3 in the Greenhouse
Gas (GHG) statement included in the Sustainability Report section in the Europris – Annual Report
2022.
Conclusion
Based on our work, nothing has come to our attention causing us not to believe that the GHG
statement scope 1 and scope 2 and category 5 Waste in scope 3 is not, in all material respects,
prepared in accordance with the Greenhouse Gas (GHG) Protocol Standard.
Management’s Responsibilities
Management of Europris ASA is responsible for the preparation and presentation of the GHG
Statement and that it has been prepared in accordance with the reporting criteria described in the
Report, including the GHG Protocol Standard. Management is also responsible for establishing such
internal control management determine is necessary to ensure that the information is free from
material misstatement, whether due to fraud or error.
Our independence and quality control
We are independent of the Company as required by laws and regulations and the International
Ethics Standards Board for Accountants’ Code of International Ethics for Professional Accountants
(including International Independence Standards – IESBA Code, and we have fulfilled our other
ethical responsibilities in accordance with these requirements. Our firm applies International
Standard on Quality Management 1 and accordingly maintains a comprehensive system of quality
management including documented policies and procedures regarding compliance with ethical
requirements, professional standards and applicable legal and regulatory requirements.
Auditor’s responsibilities
Our responsibility is to express a limited assurance conclusion on the information presented in scope
1, scope 2 and category 5 waste in scope 3 in the GHG Statement. We conducted our work in
accordance with International Standard on Assurance Engagements 3410, Assurance Engagements on
Grenhouse Gas Statements (“ISAE 3410”), issued by the International Auditing and Assurance
Standards Board. That standard requires that we plan and perform this engagement to obtain
limited assurance about whether the GHG statement is free from material misstatements.
A limited assurance engagement undertaken in accordance with ISAE 3410 involves assessing the
suitability in the circumstances of Europris ASA’s use of GHG Protocol as the basis for the
preparation of the GHG statement, assessing the risks of material misstatements of the GHG
statement whether due to fraud or error responding to the assessed risks as necessary in the
circumstances, and evaluating the overall presentation of the GHG statement.
The procedures performed in a limited assurance engagement vary in nature and timing from, and
are less in extent than for, a reasonable assurance engagement. Consequently, the level of
assurance obtained in a limited assurance engagement is substantially lower than the assurance that
would have been obtained had we performed a reasonable assurance engagement.
71
BDO AS, a Norwegian liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms part of the
international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT. Page 2 of 2
Considering the risk of material misstatement, our procedures included, among others:
• Meetings with management in Europris and Cemasys to discuss issues, risks, important
sustainability topics and procedures for collecting and reporting relevant data
• Analytical review of development and changes from prior reporting periods
• Review of evidence supporting the information in the report on a sample basis
We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for a
conclusion with a limited level of assurance on the subject matters.
Oslo, 22 March 2023
BDO AS
Terje Eggum Adolfsen
State Authorised Public Accountant
72
Global Reporting Initiative (GRI) is an independent international standards organisation which has developed
the world’s most widely used framework for sustainability reporting. These guidelines consist of reporting
principles, aspects and indicators which organisations can use to disclose information related to their nancial,
environmental and social performance.
GRI index
Statement of use
Europris ASA has reported in accordance with the GRI standards for the period 01.01.2022-31.12.2022.
GRI 1 used
GRI 1: Foundation 2021
Applicable GRI sector standard(s)
N/A
General disclosures
GRI 2: General
disclosures 2021
2-1 Organisational details Directors´ report p.11
2-2 Entities included in the
organisation’s sustainability
reporting
Consolidated nancial
statement p. 90
2-3 Reporting period,
frequency and contact
point
a. Annually
b. 01.01.2022-31.12.2022
c. 23.03.2023
d. Trude Mork Alnæs trude@
europris.no
A gray cell indicates that reasons for omission are
not permitted for the disclosure or that a GRI Sector Standard
reference number is not available.
2-4 Restatements of
information
No known errors from last
reporting period p. 39
2-5 External assurance a. Signed by the board.
b. Sustainability report
p.70-71
2-6 Activities, value
chain and other business
relationships
Sustainability report p. 41-48
2-7 Employees GRI Input - Our people p. 69
2-8 Workers who are not
employees
GRI Input - Our people p. 69
2-9 Governance structure
and composition
Corporate governance
p. 25-27
2-10 Nomination and
selection of the highest
governance body
Corporate governance
p. 24-25
2-11 Chair of the highest
governance body
No. The highest governance
body is not a senior executive
in the organisation
b: Yes Not applicable The chair is not a senior
executive
2-12 Role of the highest
governance body in over-
seeing the management
of impacts
Sustainability report p. 37
2-13 Delegation of
responsibility for managing
impacts
Sustainability report p. 37
2-14 Role of the highest
governance body in
sustainability reporting
Sustainability report p. 37
2-15 Conicts of interest Corporate governance p. 26
2-16 Communication of
critical concerns
Sustainability report p. 38
GRI standard/
other soursce
Disclosure Location Omission
Requirement(s)
omitted
Reason Explanation
73
General disclosures
GRI 2: General
disclosures 2021
2-17 Collective knowledge
of the highest governance
body
Sustainability report p. 37
2-18 Evaluation of the
performance of the highest
governance body
Corporate governance p. 26-27
2-19 Remuneration policies Remuneration report
2-20 Process to determine
remuneration
Remuneration report
2-21 Annual total
compensation ratio
Ratio 13:1. Store employees
represents the largest group
of employees in Europris,
which reects the median
compensation
b. Information
unavailable/
incomplete
First time reporting.
We aim to report
these indicators in the
2023 report
2-22 Statement on sustain-
able development strategy
Sustainability report p. 37
2-23 Policy commitments https://investor.europris.no/
about-us/corporate-governance/
policies/default.aspx
2-24 Embedding policy
commitments
Sustainability report p. 38,
p. 48
2-25 Processes to
remediate negative impacts
We have the following sentance
in our code of conduct: In the
event of a breach of the code
of conduct, Europris and the
supplier will jointly prepare a
plan for remedying the breach.
Remediation must take place
within a reasonable period of
time. The contract will only
be terminated if the supplier
remains unwilling to remedy
the breach following repeated
enquiries.
2-26 Mechanisms for
seeking advice and raising
concerns
i. Our employees can seek
advice on implementing policies
and practices for responsible
business conduct through its
leaders, through documents on
the internal employee handbook
or through resources in the
sustainability department.
ii. The whistleblower channel
can be used anonymously
and is aimed for any relevant
stakeholders of the organisation.
The cases are handled con-
dentially by a third-party and
through legal/HR department.
Depending on the case, the
management group is involved.
2-27 Compliance with
laws and regulations
Sustainability report p. 38
2-28 Membership
associations
Ethical Trade Norway, Amfori
BSCI, CDP, Green Dot
Norway, Norwegian Retailers
Environmental Fund
2-29 Approach to
stakeholder engagement
Sustainability report p. 36
2-30 Collective bargaining
agreements
a. Sustainability report p.69
b. Yes
GRI standard/
other soursce
Disclosure Location Omission
Requirement(s)
omitted
Reason Explanation
74
Material topics
GRI 3: Material
topics 2021
3-1 Process to determine
material topics
Sustainability report p. 34-35
A gray cell indicates that reasons for omission are
not permitted for the disclosure or that a GRI Sector Standard
reference number is not available.
3-2 List of material topics Sustainability report p. 35
Economic performance
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 34-35
GRI 201:
Economic
performance
2016
201-1 Direct economic
value generated and
distributed
Directors´ report p.13
201-2 Financial
implications and other
risks and opportunities
due to climate change
Directors´ report p.16-18
Sustainability report p.57
Anti-corruption
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 38
GRI 205:
Anti-corruption
2016
205-1 Operations
assessed for risks
related to corruption
Ethical trade report
205-2 Communication
and training about
anti-corruption policies
and procedures
a. 100%
c. Code of conduct,
embedded in all supplier
contracts https://investor.
europris.no/about-us/
corporate-governance/
policies/default.aspx
b.
d.
e.
Information
unavailable/
incomplete
Lack of tracking
procedure. We aim to
report these indicators
in the 2023 report
205-3 Conrmed incidents
of corruption and actions
taken
Sustainability report p. 38
Anti-competitive behavior
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 38
GRI 206:
Anti-competitive
behavior 2016
206-1 Legal actions for
anti-competitive behavior,
anti-trust, and monopoly
practices
Sustainability report p. 38
Energy
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 50
GRI 302: Energy
2016
302-1 Energy consumption
within the organisation
a. 11,335.5 MWh. Fossil fuels
including petrol and diesel,
electricity and district heating
b. 32,898.2 MWh. Fossil fuels
including petrol and diesel,
electricity and district heating
c. i. 43,119.8 MWh grid. 47.7
MWh self-generated. ii 454.5
MWh grid.
e. 44,233.7 MWh.
f. GHG Protocol
g. DEFRA, IEA
c. iii and iv
d.
Not applicable Not relevant
302-2 Energy consumption
outside of the organisation
Yes Not applicable Not relevant
GRI standard/
other soursce
Disclosure Location Omission
Requirement(s)
omitted
Reason Explanation
75
Emissions
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 51
305-1 Direct (Scope 1)
GHG emissions
a, b, f, g. Sustainability
report p. 51
c. Not applicable Not relevant
d.
e.
Information
unavailable/
incomplete
Will be developed in
2024 as a part of the
process of submitting
an application to SBTi
305-2 Energy indirect
(Scope 2) GHG emissions
a, b, c, f, g. Sustainability
report p. 51
e. IEA for location-based and
AIB for market-based emission
factors
d. Information
unavailable/
incomplete
Will be developed in
2024 as a part of the
process of submitting
an application to SBTi
305-3 Other indirect
(Scope 3) GHG emissions
a, b, c, d, g. Sustainability
report p. 51
f. Emission factors are from a
range of different databases,
depending on the scope 3
category in question. Europris
have not created its own
emission factors.
e. Information
unavailable/
incomplete
Will be developed in
2024 as a part of the
process of submitting
an application to SBTi
Waste
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 50
GRI 306:
Waste 2020
306-2 Management of
signicant waste-related
impacts
a. Sustainability report p. 55
Waste management.
Europris has environmental
screening and audit by
Miljøfyrtårn.
b. Strategic cooperation with
Ragn-Sells, who specialise
in waste management.
c. Digital reports and dialogue
with strategic partner, Ragn-
Sells.
306-3 Waste generated a. Residual waste: 1638t
Mixed waste: 5228t
Cardboard waste: 303t
EE waste: 3t
Hazardous waste: 6t
Metal waste: 12t
Mineral oil waste: 0.07t
Organic waste: 38t
Plastic waste: 94t
Wood waste: 120t
Glass waste: 0.77t
b. Sustainability report p. 55
Supplier environmental assessment
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 47
GRI 308:
Supplier
environmental
assessment
2016
308-1 New suppliers that
were screened using
environmental criteria
Yes Information
unavailable/
incomplete
Will be started with
Amfori BEPI in 2024
308-2 Negative
environmental impacts
in the supply chain and
actions taken
Yes Information
unavailable/
incomplete
Will be started with
Amfori BEPI in 2024
GRI standard/
other soursce
Disclosure Location Omission
Requirement(s)
omitted
Reason Explanation
76
Employment
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 60
GRI 401:
Employment
2016
401-1 New employee hires
and employee turnover
GRI Input - Our people p. 69
b. Turnover rate 23.4%
- Men 24.6% Women 22.4%
b. Information
unavailable/
incomplete
Turnover not reported
by age group. We aim to
report on these indicators
in the 2023 report
401-3 Parental leave GRI Input - Our people p. 69 c,d,e Information
unavailable/
incomplete
We aim to report these
indicators in the 2024
report
Occupational health and safety
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 63
GRI 403:
Occupational
health and
safety 2018
403-1 Occupational health
and safety management
system
Sustainability report p. 63-64
403-2 Hazardidentication,
risk assessment, and
incident investigation
Sustainability report p. 63-64 c. Not applicable Not relevant
403-3 Occupational health
services
Sustainability report p. 63-64
403-4 Worker participation,
consultation, and communi-
cation on occupational
health and safety
Sustainability report p. 63-64
403-5 Worker training on
occupational health and
safety
Sustainability report p. 63-64
403-6 Promotion of worker
health
Sustainability report p. 64
All employees are covered by
mental health service in the
event of an emergency
403-7 Prevention and
mitigation of occupational
health and safety impacts
directly linked by business
relationships
Sustainability report p. 63-64
403-10 Work-related ill
health
a. i: 0, ii,
iii Directors´ report p. 15
b. 0
d. No workers excluded
c, e Information
unavailable/
incomplete
We aim to report these
indicators in the 2023
report
Training and education
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 60
GRI 404: Training
and education
2016
404-1 Average hours
of training per year per
employee
A total of 7,166 hours of
completed training were
tracked across the group.
In addition, courses are
conducted per department
that is not tracked
GRI standard/
other soursce
Disclosure Location Omission
Requirement(s)
omitted
Reason Explanation
77
Diversity and equal opportunity
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 60
GRI 405:
Diversity and
equal oppor
-
tunity 2016
405-1 Diversity of
governance bodies and
employees
GRI Input - Our people p. 69
405-2 Ratio of basic salary
and remuneration of
women to men
GRI Input - Our people p. 69
Non-discrimination
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 38
GRI 406: Non-
discrimination
2016
406-1 Incidents of
discrimination and
corrective actions taken
In 2022 two cases were
reviewed by the HR department
in relation to discrimination.
Incident is no longer subject
to action.
b. ii-iv Not applicable Not relevant
Freedom of association and collective bargaining
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 47
GRI 407:
Freedom of
association
and collective
bargaining 2016
407-1 Operations and
suppliers in which the
right to freedom of
association and collective
bargaining may be at risk
Ethical trade report
Child labor
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 47
GRI 408: Child
labor 2016
408-1 Operations and
suppliers at signicant risk
for incidents of child labor
a. i: Child labour (UN convention
on the rights of the child, ILO
conventions nos. 138, 182 and
79, and ILO recommendation
no. 146). There shall be no
recruitment of child labor dened
as any work performed by a
child younger than the age(s)
specied in the code of conduct.
ii: 0
b. i: We do yearly due diligence
assessments reported in the
Ethical trade report. Child labor
is seen as little risk within our
operations and suppliers.
ii: 0
c. The code of conduct regulates
our zero tolerance towards child
labor.
Forced or compulsory labor
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 47
GRI 409: Forced
or compulsory
labor 2016
409-1 Operations and
suppliers at signicant risk
for incidents of forced or
compulsory labor
Sustainability report p. 47
Etical trade report
GRI standard/
other soursce
Disclosure Location Omission
Requirement(s)
omitted
Reason Explanation
78
Rights of indigenous peoples
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 47
GRI 411: Rights
of indigenous
peoples 2016
411-1 Incidents of
violations involving rights
of indigenous peoples
a. No incidents in relation
to indigenous peoples.
b. Not applicable Not relevant
Local communities
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 66
GRI 413: Local
communities
2016
413-1 Operations
with local community
engagement, impact
assessments, and
development
programmes
Environmental and social
impact assessment is
irrelevant to our store network
as we are not building new
stores. The material topic
focus on local value creation
and community engagement
with SDG goal on reduced
inequality, decent work and
equal pay for work of equal
value
Supplier social assessment
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 47
GRI 414:
Supplier social
assessment
2016
414-1 New suppliers that
were screened using
social criteria
Sustainability report p. 41
414-2 Negative social
impacts in the supply chain
and actions taken
b. Ethical trade report
c. Sustainability report p. 47
e. The nature of our business
is to screen a number of
suppliers before choosing the
ones who are compliant with
demands and requirements
a, d Information
unavailable/
incomplete
We aim to report these
indicators in the 2024
report
Customer health and safety
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 45
GRI 416:
Customer health
and safety 2016
416-1 Assessment of the
health and safety impacts
of product and service
categories
Sustainability report p. 45-46
416-2 Incidents of non-
compliance concerning the
health and safety impacts
of products and services
Sustainability report p. 45-46 b. Not applicable Not relevant
GRI standard/
other soursce
Disclosure Location Omission
Requirement(s)
omitted
Reason Explanation
79
Marketing and labeling
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 38, 45
GRI 417:
Marketing and
labeling 2016
417-1 Requirements
for product and service
information and labeling
a. The organisation is
responsible for correct content
and labeling that ensures safe
use of products as well as
information about the recycling
of the product after use. This is
taken care of by the department
of quality and product safety.
The department has developed
a risk matrix to meet all
necessary requirements
b. Information
unavailable/
incomplete
Insufcient data
417-2 Incidents of non-
compliance concerning
product and service
information and labeling
Sustainability report p. 46 b. Not applicable Not relevant
417-3 Incidents of non-
compliance concerning
marketing communications
Sustainability report p. 38 b. Not applicable Not relevant
Customer privacy
GRI 3: Material
topics 2021
3-3 Management of
material topics
Sustainability report p. 38
GRI 418:
Customer
privacy 2016
418-1 Substantiated
complaints concerning
breaches of customer
privacy and losses of
customer data
Sustainability report p. 38
GRI standard/
other soursce
Disclosure Location Omission
Requirement(s)
omitted
Reason Explanation
80
81
The group management
Espen Eldal was appointed CEO of Europris in April 2020�
He has been the Chief Financial Ofcer of the company since
2014� Prior to his appointments in Europris, he served as man-
aging director of Berendsen Tekstil Service AS, and Sales &
Marketing Director and Finance Manager of PartnerTech, Nor-
way� Prior to this, Mr Eldal worked as a Finance Manager in Travel Retail Norway, prior
to which he held various executive positions in Gate Gourmet both in Scandinavia and
in Switzerland� Mr Eldal holds a Bachelor in Finance and Administration from Oslo Uni-
versity College, is a certied auditor and has completed the Ofcers’ Training School.
Mr Eldal is a Norwegian citizen and resides in Norway�
Espen Eldal - CEO
Stina Charlene Byre started as CFO of Europris in January 2021�
Ms Byre came from the position as CFO of COWI AS, where she
had been CFO since 2019� Prior to this, she spent 10 years in
Orkla, holding various nancial management positions; CFO of
Orkla Health Group, CFO of Pierre Robert Group, Financial Manager
of Lilleborg and Financial Manager of Orkla Brands� Ms Byre started her career as
a management consultant at McKinsey & Company� She holds a Master of Business
and Economics from BI Norwegian Business School, including exchange programme
at Texas A&M University in the USA� Ms Byre is a Norwegian citizen and resides in
Norway�
Stina C Byre - CFO
82
Content
Consolidated financial statements �����������������������������������������83
Income statement �������������������������������������������������������������������85
Balance sheet �������������������������������������������������������������������������86
Statement of changes in equity ����������������������������������������������88
Statement of cash flows ���������������������������������������������������������89
Notes ��������������������������������������������������������������������������������������90
Parent company financial statements ���������������������������������121
Income statement �����������������������������������������������������������������122
Balance sheet �����������������������������������������������������������������������123
Statement of changes in equity ��������������������������������������������125
Statement of cash flows �������������������������������������������������������126
Notes ������������������������������������������������������������������������������������127
Declaration to the annual report �������������������������������������������135
Alternative performance measures definitions ��������������������136
Independent auditor’s report ������������������������������������������������138
Shareholder information �������������������������������������������������������143
83
EUROPRIS ASA
GROUP 2022
84
85
Figures are stated in NOK 1,000 Note 2022 2021
Revenue 4,5 8,928,898 8,568,379
Other income 5 86,868 79,798
Total operating income 5 9,015,766 8,648,177
Cost of goods sold 20 4,832,783 4,592,143
Employee benefit expensees 6,7,8 1,295,131 1,230,303
Depreciation 12,13,14 611,035 571,223
Other operating expenses 6,9,14 836,461 742,749
Total operating expenses 7,575,410 7,136,420
Operating profit 1,440,356 1,511,758
Interest income 10 200 102
Other financial income 10 39,222 28,253
Total financial income 39,422 28,354
Interest expense 10,14 122,796 101,548
Other financial expense 10 24,020 21,201
Total financial expense 146,816 122,750
Net financial income (expense) (107,394) (94,395)
Profit/(loss) from associated companies 16 4,047 189
Profit before tax 1,337,009 1,417,551
Income tax expense 11 295,153 313,588
Profit for the year 18 1,041,856 1,103,963
Profit attributable to non-controlling interests 21,887 22,152
Profit attributable to owners of the parent 1,019,969 1,081,811
Earnings per share (basic and diluted) – in NOK 18 6.34 6.72
Consolidated statement of comprehensive income
Profit for the year 1,041,856 1,103,963
Other income and expense - -
Total comprehensive income for the year 1,041,856 1,103,963
Profit attributable to non-controlling interests 17 21,887 22,152
Profit attributable to owners of the parent 1,019,969 1,081,811
Notes 1 to 29 are an integral part of the consolidated financial statements
Consolidated income statement
86
Figures are stated in NOK 1,000 Note 31-12-2022 31-12-2021
ASSETS
Non-current assets
Software 12 92,967 65,421
Trademark 12 591,266 591,266
Goodwill 12,15 2,191,054 2,073,373
Land 13,15 21,224 46,190
Buildings 13,15 113,230 119,362
Fixtures and fittings 13 338,070 328,520
Right-of-use assets 14 2,434,465 2,320,022
Investment in associated companies 16 132,925 128,844
Other investments 374 383
Other receivables 19,25 36,651 28,391
Derivatives 24,25 76,667 37,676
Total non-current assets 6,028,893 5,739,449
Current assets
Inventories 20 2,383,837 1,997,312
Trade receivables 19,25 215,175 215,480
Other receivables 19,25 65,256 44,241
Provisions 19,25 62,882 60,816
Derivatives 19,24,25 4,725 11,494
Cash 21,25 464,488 570,286
Total current assets 3,196,363 2,899,629
Total assets 9,225,256 8,639,078
Notes 1 to 29 are an integral part of the consolidated financial statements
Consolidated balance sheet
87
Figures are stated in NOK 1,000 Note 31-12-2022 31-12-2021
EQUITY AND LIABILITIES
Equity
Share capital and share premium 22 212,684 212,624
Other paid-in capital 22 22,054 20,718
Other equity 2,725,783 2,386,704
Total shareholders' equity 2,960,521 2,620,046
Non-controlling interests 17 322,082 268,680
Total equity 3,282,603 2,888,726
Liabilities
Non-current liabilities
Deferred tax liability 11 57,622 52,332
Borrowings 2,23,25,26 1,085,349 1,091,521
Lease liabilities 14,26 2,015,033 1,913,555
Total non-current liabilities 3,158,004 3,057,407
Current liabilities
Borrowings 2,23,25 5,000 5,000
Current lease liabilities 14,26 521,958 490,164
Accounts payable 2,25 876,419 843,854
Tax payable 11 291,305 324,057
Public duties payable 25 393,683 376,023
Put option liability 2,15 281,221 246,528
Other current liabilities 2,23 406,090 404,379
Derivatives 24,25 8,973 2,940
Total current liabilities 2,784,650 2,692,945
Total liabilities 5,942,654 5,750,352
Total equity and liabilities 9,225,256 8,639,078
Notes 1 to 29 are an integral part of the consolidated financial statements
Consolidated balance sheet
Fredrikstad, 23 March 2023
THE BOARD OF DIRECTORS OF EUROPRIS ASA
Claus Juel-Jensen
Karl Svensson
Espen Eldal
CEO
Tom Vidar Rygh
Chair
Hege Bømark
Tone Fintland
Pål Wibe
Bente Sollid Storehaug
88
Notes 1 to 29 are an integral part of the consolidated financial statements
Figures are stated in NOK 1,000
Share
capital
Treasury
shares
Share
premium
Other
paid-in
capital
Other
equity Total
Non-
controlling
interests
Total
equity
Equity 01.01.2022 166,969 (5,997) 51,652 20,718 2,386,704 2,620,046 268,680 2,888,726
Profit for the period - - - - 1,019,969 1,019,969 21,887 1,041,856
Dividend - - - - (643,886) (643,886) (16,500) (660,386)
Sale of treasury shares - 59 - 1,336 1,505 2,900 - 2,900
Non-controlling interests on
acquisition of subsidiary
- - - - (4,437) (4,437) 47,977 43,540
Put option liability - - - - (34,693) (34,693) - (34,693)
Translation differences - - - - 622 622 38 660
Other comprehensive income - - - - - - - -
Equity 31.12.2022 166,969 (5,938) 51,652 22,054 2,725,784 2,960,521 322,082 3,282,603
Equity 01.01.2021 166,969 (6,150) 51,652 17,475 1,983,661 2,213,608 - 2,213,608
Profit for the period - - - - 1,081,811 1,081,811 22,152 1,103,963
Dividend - - - - (434,207) (434,207) - (434,207)
Net purchase/sale of treasury shares - 153 - 3,243 3,874 7,270 - 7,270
Non-controlling interests on
acquisition of subsidiary
- - - - - - 246,528 246,528
Put option liability - - - - (246,528) (246,528) - (246,528)
Translation differences - - - - (1,907) (1,907) - (1,907)
Other comprehensive income - - - - - - - -
Equity 31.12.2021 166,969 (5,997) 51,652 20,718 2,386,704 2,620,046 268,680 2,888,726
In accordance with sections 9-4 and 9-5 of the Norwegian Public Limited Liability Companies Act, the board is mandated to acquire
the company’s own shares subject to specific conditions. See note 22 for details of treasury shares.
Consolidated statement of changes in equity
89
Figures are stated in NOK 1,000 Note 2022 2021
Cash flows from operating activities
Profit before income tax 1,337,009 1,417,551
Adjusted for:
– Depreciation fixed assets 13,14 580,654 546,123
– Amortisation intangible assets 12 30,381 25,100
– Loss on sale of fixed assets 945 -
– Unrealised gain and loss on derivatives 10,17 (38,991) (25,880)
– Net interest expense exclusive of change in fair value derivatives 10 162,516 124,877
– Profit from associated companies 16 (4,047) (189)
Changes in net working capital (exclusive effect of acquistions): (374,048) (138,706)
– Inventory (345,364) (184,661)
– Accounts receivable and other current receivables (28,356) (17,334)
– Accounts payable and other current debt 25,862 139,302
– Decrease/(increase) in financial assets at fair value through profit or loss (26,190) (76,013)
Interest received 200 102
Interest paid 10 (123,725) (99,099)
Income tax paid 11 (323,191) (258,529)
Net cash generated from operating activities 1,247,703 1,591,351
Cash flows from investing activities
Proceeds from sale of fixed assets 13 26,021 176
Purchases of fixed assets 13 (84,750) (98,450)
Purchases of intangible assets 12 (57,927) (32,490)
Acquisitions 15 (92,351) (553,204)
Proceeds from sale of financial assets - 62
Net cash used in investing activities (209,007) (683,906)
Cash flows from financing activities
Proceeds from borrowings - 2,636
Repayment of debt to financial institutions (5,000) (3,750)
Principal paid on lease liabilities 14 (482,008) (449,162)
Dividend (643,886) (434,207)
Sale/buy-back of treasury shares 2,900 7,270
Dividends paid to non-controlling interests in subsidiaries (16,500) -
Net cash from financing activities (1,144,494) (877,214)
Net decrease/increase in cash (105,798) 30,231
Cash at beginning of year (01.01) 570,286 540,056
Cash at end of year (31.12) 464,488 570,286
Notes 1 to 29 are an integral part of the consolidated financial statements
Consolidated statements of cash flows
90
1 Accounting principles
1�1 Basis of preparation
The consolidated financial statements for Europris ASA
(”the group”) have been prepared in accordance with the
International Financial Reporting Standards (IFRS) as
adopted by the European Union, as well as Norwegian
disclosure requirements pursuant to section 3-9 of the
Norwegian Accounting Act at 31 December 2022� The
accounting policies adopted are consistent with those of
the previous financial year�
The board approved the consolidated financial state
-
ments on 23 March 2023�
The consolidated financial statements have been
prepared on a historical cost basis with the following
exceptions:
• derivative instruments are recognised at fair
value through profit and loss�
The group has applied the going concern assumption
in preparing its consolidated financial statements� When
assessing this assumption, management has assessed
all available information regarding future expectations�
The preparation of financial statements in conformity
with the IFRS requires the use of certain critical
accounting estimates� It also requires management to
exercise its judgement in the process of applying the
group’s accounting policies. The areas involving a higher
degree of judgement or complexity or where the assump-
tions and estimates are significant for the con-
solidated financial statements are disclosed in note 3�
1�2 Consolidation
The consolidated financial statements include the
parent company Europris ASA and all its subsidiaries�
The group applies the acquisition method to account
for business combinations� The consideration trans
-
ferred for the acquisition of a subsidiary is the fair value
of the assets transferred, the liabilities incurred to the
former owners of the acquiree and the equity interests
issued by the group� The consideration transferred
includes the fair value of any asset or liability resulting
from a contingent consideration arrangement� Identi-
fiable assets and liabilities and contingent liabilities
assumed in a business combination are measured
initially at their fair value at the acquisition date� Subse-
quent changes to the fair value of the contingent consi-
deration which is deemed to be an asset or liability is
recognised in profit or loss� A contingent consideration
which is classified as equity is not re-measured, and its
subsequent settlement is accounted for within equity�
The group recognises any non-controlling interest in
the acquiree on an acquisition-by-acquisition basis,
either at fair value or at the non-controlling interest’s
proportionate share of the recognised amounts of the
acquiree’s identifiable net assets.
Goodwill is initially measured as the excess of the
aggregate consideration transferred and the amount of
non-controlling interest over the net identifiable assets
acquired and liabilities assumed� If this consideration is
lower than the fair value of the net assets of the subsi
-
diary acquired, the difference is recognised in profit and
loss�
Intercompany transactions, balances, revenue and
expenses arising from transactions between group
companies are eliminated� Accounting policies of
subsidiaries have been changed where necessary to
ensure consistency with the policies adopted by the
group�
The consolidated financial statements include Europris
ASA and its subsidiaries�
The Lena Lavpris AS company was acquired by
Europris AS at January 2022 and merged with Europris
Butikkdrift AS with effect from 1 January 2022�
Subsidiaries are all entities (including structured
entities) over which the group has control� The group
controls an entity when the group is exposed to, or has
rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through
its power over the entity� Subsidiaries are fully consoli
-
dated from the date on which control is transferred to the
group� They are de-consolidated from the date on which
that control ceases� When the group ceases to have
Notes to the consolidated financial statements
Company Ownership/voting share
Europris ASA parent company
Europris Holding AS 100%
Europris AS 100%
Europris Butikkdrift AS 100%
Lunehjem�no AS 67%
Lekekassen Holding AS 67%
Strikkemekka Holding AS 67%
91
control, any remaining interest in the entity is re-
measured to its fair value at the date when control
ceases, with the change in carrying amount recognised
in profit and loss� The fair value is the initial carrying
amount for the purposes of subsequently accounting for
the remaining interest as an associate, joint venture or
financial asset�
IFRS 10 Consolidated financial statements is based
on the principle of using the control term as the decisive
criterion to decide whether a company should be
included in the consolidated financial statements� The
application guidance to the standard provides guidance
when determining whether an entity has control over a
franchisee� Based on the guidance in IFRS 10, the
group has determined that it does not control its
franchisees and the franchises are therefore not con-
solidated�
1�3 Investment in associates
The group has investments in associates� Associates
are entities over which the group has significant
influence, but not control over financial and operating
management�
The considerations made in determining whether the
group has significant influence over an entity are similar
to those necessary to determine control over subsi-
diaries�
Associates are accounted for using the equity method
from the date when significant influence is achieved until
such influence ceases�
Investments in an associate are initially recognised at
cost� The contingent consideration is included in cost
and changes in estimated contingent consideration will
be recognised as an adjustment of cost� The carrying
amount of the investment is adjusted to recognise
changes in the group’s share of the net assets of the
associate since the acquisition date� Goodwill relating to
the associate is included in the carrying amount of the
investment and is not tested for impairment individually�
The statement of profit or loss reflects the group’s
share of the results of operations of the associate� In
addition, when there has been a change recognised
directly in the equity of the associate, the group recog
-
nises its share of any changes, when applicable, in the
statement of changes in equity� Unrealised gains and
losses resulting from transactions between the group
and the associate are eliminated to the extent of the
interest in the associate�
If there are indications that the investment in the
associate is impaired, the group will perform an impair-
ment test of the carrying amount of the investment� Any
impairment losses are recognised as share of profit of an
associate in the statement of profit or loss�
If the group’s share of the loss surpasses the carrying
amount of the associate, the carrying amount is set to
zero and further loss is not recognised unless the group
has an obligation to make up for the loss�
Upon loss of significant influence over the associate,
such that the equity method ceases to apply, the group
measures and recognises any retained investment at its
fair value� A new measurement of remaining ownership
interests will not be performed if the equity method is still
applicable�
1�4 Segment reporting
The Europris group as a whole is defined and
identified as one operating segment� The chief operating
decision-maker, who is responsible for allocating
resources and assessing performance of the operating
segment, has been identified as the group management�
Operating segments are reported in a manner
consistent with internal reporting provided to the chief
operating decision-maker�
1�5 Foreign currency translation
Foreign currency transactions are translated into the
functional currency of the respective group entity, using
the exchange rates prevailing at the dates of the trans-
actions (spot exchange rate)� Foreign exchange gains
and losses resulting from the settlement of such trans-
actions and from the re-measurement of monetary items
denominated in foreign currency at year-end exchange
rates are recognised in the income statement� Non-
monetary items are not re-translated at year-end and
are measured at historical cost (translated using the
exchange rates at the transaction date), except for
non-monetary items measured at fair value which are
translated using the exchange rates at the date when
fair value was determined�
Non-monetary items which are measured at fair value
in foreign currency are translated into the functional
currency at the reporting date� Changes in exchange
Notes to the consolidated financial statements
92
rates are recognised continuously in operating profit�
The consolidated financial statements are presented
in NOK, which is the group’s presentation and functional
currency�
1�6 Revenue from contracts with customers
Revenue from contracts with customers is recognised
when control of the goods or services is transferred to
the customer at an amount which reflects the conside-
ration which the group expects to be entitled to in
exchange for those goods or services� The group has
generally concluded that it is the principal in its revenue
arrangements, because it typically controls the goods or
services before transferring them to the customer�
Revenue from the sale of goods
The group operates a chain of stores in the discount
variety retail sector and online stores which sells
consumer goods, including sales to franchise stores�
The group recognises revenue from the sale of goods
at the point in time when control of the goods is trans
-
ferred to the customer� Control of an asset refers to the
ability to direct the use of and obtain substantially all of
the remaining benefits from the asset, and the ability to
prevent others from directing the use of and receiving
the benefits from the asset� Revenue is generally
recognised on delivery of the goods� Revenue from the
sale of goods over the internet is recognised at the point
that control of the inventory have passed to the
customer, which is the point of delivery� Retail sales are
usually in cash or by debit or credit cards�
Certain contracts provide a customer with a right to
return the goods within a specified period� The group
uses the expected value method to estimate the goods
which will not be returned, because this method best
predicts the amount of variable consideration to which
the group will be entitled�
Franchise fee
The fees received from franchises are recorded as
“other income”�
1�7 Current and deferred income tax
The tax expense for the period comprises current and
deferred tax� Tax is recognised in the income statement,
except to the extent that it relates to items recognised in
other comprehensive income or directly in equity� In this
case, the tax is also recognised in other comprehensive
income or directly in equity respectively�
The current income tax charge is calculated on the
basis of the tax laws enacted or substantively enacted
at the balance sheet date in Norway, where the
company and its subsidiaries operate and generate
taxable income�
Management periodically evaluates positions taken in
tax returns with respect to situations in which applicable
tax regulation is subject to interpretation� It establishes
provisions where appropriate on the basis of amounts
expected to be paid to the tax authorities�
Deferred income tax is recognised on temporary
differences arising between the tax bases of assets and
liabilities and their carrying amounts in the consolidated
financial statements� However, deferred tax liabilities are
not recognised with regard to goodwill arising from
business combinations� Deferred income tax is deter-
mined using tax rates (and laws) which have been
enacted or substantively enacted by the balance sheet
date and are expected to apply when the related
deferred income tax asset is realised or the deferred
income tax liability is settled�
Deferred income tax assets are recognised only to the
extent that it is probable that future taxable profit will be
available against which the temporary differences can
be utilised�
Deferred income tax liabilities are provided on taxable
temporary differences arising from investments in
subsidiaries, associates and joint arrangements, except
for the deferred income tax liability where the timing of
the reversal of the temporary difference is controlled by
the group and it is probable that the temporary diffe
-
rence will not reverse in the foreseeable future�
Generally, the group is unable to control the reversal of
the temporary difference for associates�
Deferred income tax assets are recognised on
deductible temporary differences arising from invest
-
ments in subsidiaries, associates and joint arrange-
ments only to the extent that it is probable the
temporary difference will reverse in the future and there
is sufficient taxable profit available against which the
temporary difference can be utilised�
Deferred income tax assets and liabilities are offset
when there is a legally enforceable right to offset current
93
tax assets against current tax liabilities, and when the
deferred income tax assets and liabilities relate to
income taxes levied by the same taxation authority on
either the same taxable entity or different taxable
entities and there is an intention to settle the balances
on a net basis�
1�8 Property, plant and equipment
Property, plant and equipment are recorded at
historical cost less depreciation� Historical cost includes
expenditure which is directly attributable to the acqui-
sition of the items� Subsequent costs are included in the
asset’s carrying amount or recognised as a separate
asset, as appropriate, only when it is probable that
future economic benefits associated with the item will
flow to the group and the cost of the item can be
measured reliably� The carrying amount of replaced
parts is derecognised when replaced� All other repairs
and maintenance expenditures are recognised in profit
and loss in the period when the expense is incurred�
Depreciation of property, plant and equipment is
calculated using the straight-line method to depreciate
their cost to their residual value over the estimated
useful lives, as follows:
technical and electrical installations 5-15 years
fixture and fittings 7-10 years
vehicles 5 years
machinery and equipment 3 years
IT equipment 3 years
buildings 5-25 years
land not depreciated
The residual values and useful lives of the assets are
reviewed and adjusted, if appropriate, at the end of each
reporting period�
An asset’s carrying amount is written down immedi
-
ately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable
amount�
Gains and losses on disposals are determined by
comparing the proceeds with the carrying amount and
are recognised in the income statement�
1�9 Leases
Identifying a lease
At the inception of a contract, the group assesses
whether the contract is or contains a lease� A contract is
or contains a lease if the contract conveys the right to
control the use of an identified asset for a period of time
in exchange for a consideration�
The group as a lessee
Separating components in the lease contract
For contracts which constitute or contain a lease, the
group separates lease components if it benefits from the
use of each underlying asset either on its own or
together with other resources which are readily
available, and the underlying asset is neither highly
dependent on, nor highly interrelated with, the other
underlying assets in the contract� The group then
accounts for each lease component in the contract as a
lease separately from non-lease components of the
contract�
Recognition of leases and exemptions
At the lease commencement date, the group recog
-
nises a lease liability and corresponding right-of-use
asset for all lease agreements in which it is the lessee,
except for the following exemptions applied:
• short-term leases (defined as 12 months or less)
• low-value assets
For these leases, the group recognises the lease
payments as other operating expenses in the statement
of profit or loss when they are incurred�
Lease liabilities
The lease liability is recognised at the commence-
ment date of the lease� The group measures the lease
liability at the present value of the lease payments for
the right to use the underlying asset during the lease
term which were not paid at the commencement date�
The lease term represents the non-cancellable period of
the lease together with periods covered by an option to
extend the lease if the lessee is reasonably certain to
exercise that option�
The lease payments included in the measurement
comprise:
• fixed lease payments (including in-substance fixed
payments), less any lease incentives receivable
• variable lease payments which depend on an index
or a rate, initially measured using the index or rate
as at the commencement date
94
• the exercise price of a purchase option, if the group
is reasonably certain to exercise that option
• payments of penalties for terminating the lease,
if the lease term reflects the group exercising an
option to terminate the lease�
The lease liability is subsequently measured by
increasing the carrying amount to reflect interest on the
lease liability, reducing the carrying amount to reflect the
lease payments made and remeasuring the carrying
amount to reflect any reassessment or lease modifica
-
tions, or to reflect adjustments in lease payments due to
an adjustment in an index or rate�
The group does not include variable lease payments in
the lease liability� Instead, the group recognises these
variable lease expenses in profit or loss�
The group presents its lease liabilities as separate line
items in the statement of financial position�
Right-of-use assets
The group measures the right-of use asset at cost, less
any accumulated depreciation and impairment losses,
adjusted for any remeasurement of lease liabilities� The
cost of the right-of-use asset comprises:
• the amount of the initial measurement of the lease
liability recognised
• any lease payments made at or before the com-
mencement date, less any incentives received
• any initial direct costs incurred by the group
• an estimate of the costs to be incurred by the group
in dismantling and removing the underlying asset,
restoring the site on which it is located or restoring
the underlying asset to the condition required by the
terms and conditions of the lease, unless those costs
are incurred to produce inventories�
The group applies the depreciation requirements in
IAS 16 Property, Plant and Equipment in depreciating the
right-of-use asset, except that the right-of-use asset is
depreciated from the commencement date to the earlier
of the lease term and the remaining useful life of the
right-of-use asset�
The group applies IAS 36 Impairment of Assets to
determine whether the right-of-use asset is impaired and
to account for any impairment loss identified� Store
profitability is monitored on an ongoing basis and stores
that deliver below expectations are followed up and
necessary measures implemented�
1�10 Intangible assets
Goodwill
Goodwill arises on the acquisition of subsidiaries and
represents the excess of the consideration transferred,
the amount of any non-controlling interest in the acquiree
and the fair value at the acquisition date of any previous
equity interest in the acquiree over the fair value of the
identifiable net assets acquired� If the total consideration
transferred, non-controlling interest recognised and
previously held interest measured at fair value are less
than the fair value of the net assets of the subsidiary
acquired, in the case of a bargain purchase, the diffe-
rence is recognised directly in the income statement�
For the purpose of impairment testing, goodwill
acquired in a business combination is allocated to the
cash generating unit (CGU) which is expected to benefit
from the synergies of the combination� Each unit or group
of units to which the goodwill is allocated represents the
lowest level within the entity at which the goodwill is
monitored for internal management purposes� Goodwill is
monitored at the operating segment level�
Goodwill impairment reviews are performed annually or
more frequently if events or changes in circumstances
indicate a potential impairment� The carrying value of the
CGU containing the goodwill is compared to the
recoverable amount, which is the higher of value in use
and the fair value less costs of disposal� Any impairment
is recognised immediately as an expense and is not
subsequently reversed�
Trademarks and contractual rights
Separately acquired trademarks and contractual rights
are recognised at cost� Trademarks and contractual
rights acquired in a business combination are recognised
at fair value at the acquisition date� Trademarks (the
brand name “Europris” and “Lekekassen”) are deemed to
have an indefinite lifetime and are not amortised as a
consequence, but tested for impairment annually�
Contractual rights and licences have a finite useful life
and are carried at cost less accumulated amortisation�
Amortisation is calculated using the straight-line method
to allocate the cost of contractual rights over their
estimated useful life�
95
Software
Costs associated with maintaining computer software
programmes are recognised as an expense as incurred�
Development costs which are directly attributable to the
design and testing of identifiable and unique software
products controlled by the group are recognised as
intangible assets when the following criteria are met:
• it is technically feasible to complete the software
product so that it will be available for use
• management intends to complete the software
product and use or sell it
• there is an ability to use or sell the software product
• it can be demonstrated how the software product
will generate probable future economic benefits
• adequate technical, financial and other resources
to complete the development and to use or sell the
software product are available
• the expenditure attributable to the software product
during its development can be reliably measured�
Computer software development costs recognised as
assets are amortised over their estimated useful lives of
three years�
1�11 Financial instruments
A financial instrument is any contract which gives rise
to a financial asset of one entity and a financial liability
or equity instrument of another entity�
Financial assets
The group´s financial assets are derivatives, trade
receivables, other receivables and cash�
The classification of financial assets at initial recog
-
nition depends on the financial asset’s contractual cash
flow characteristics and the group’s business model for
managing them� With the exception of trade receivables
which do not contain a significant financing component,
the group initially measures a financial asset at its fair
value plus, in the case of a financial asset not at fair
value through other comprehensive income, transaction
costs�
The group classifies its financial assets in these
categories:
• financial assets at amortised cost
• derivatives at fair value through profit and loss�
The group does not apply hedge accounting�
Financial assets at amortised cost
The group measures financial assets at amortised
cost if both of the following conditions are met:
• the financial asset is held within a business model
with the objective to hold financial assets in order to
collect contractual cash flows
• the contractual terms of the financial asset give rise
on specified dates to cash flows which are solely
payments of principal and interest on the principal
amount outstanding�
Financial assets at amortised cost are subsequently
measured using the effective interest (EIR) method and
are subject to impairment� Gains and losses are recog
-
nised in profit or loss when the asset is derecognised,
modified or impaired�
The group’s financial assets at amortised cost include
trade receivables and other current deposits� Trade
receivables which do not contain a significant financing
component are measured at the transaction price
determined under IFRS 15 Revenue from contracts with
customers� Receivables are subsequently measured at
amortised cost using the EIR method minus provision
for expected credit losses�
Derivatives at fair value through profit and loss
Derivatives at fair value are carried in the statement of
financial position at fair value with net changes in fair
value in profit or loss� The category includes foreign
exchange contracts and interest rate swaps�
Derecognition of financial assets
A financial asset (or, where applicable, part of a
financial asset or part of a group of similar financial
assets) is primarily derecognised (in other words,
removed from the group’s consolidated statement of
financial position) when:
• the rights to receive cash flows from the asset
have expired, or
• the group has transferred its rights to receive cash
96
flows from the asset or has assumed an obligation
to pay the received cash flows in full without
material delay to a third party under a
”pass-through” arrangement; and either
a� the group has transferred substantially all the
risks and rewards of the asset, or
b� the group has neither transferred nor retained
substantially all the risks and rewards of the
asset, but has transferred control of the asset�
Financial liabilities
Financial liabilities are classified, at initial recognition,
as loans and borrowings, payables, or derivatives
through profit and loss� Derivatives are recognised
initially at fair value and, in the case of loans and
borrowings and payables, net of directly attributable
transaction costs� Derivatives are financial liabilities
when the fair value is negative, accounted for in the
same way as derivatives as assets�
Loans, borrowings and payables
After initial recognition, interest-bearing loans and
borrowings are subsequently measured at amortised
cost using the EIR method� Gains and losses are
recognised in profit or loss when the liabilities are
derecognised as well as through the EIR amortisation
process�
Amortised cost is calculated by taking into account
any discount or premium on acquisition and fees or
costs which are an integral part of the EIR� The EIR
amortisation is included as finance costs in the
statement of profit or loss� Payables are measured at
their nominal amount when the effect of discounting is
not material�
Borrowings are classified as current unless the group
has an unconditional right to delay the payment of the
debt for more than 12 months from the reporting date�
Derecognition of financial liabilities
A financial liability is derecognised when the obligation
under the liability is discharged or cancelled or expires�
When an existing financial liability is replaced by another
from the same lender on substantially different terms, or
the terms of an existing liability are substantially
modified, such an exchange or modification is treated as
the derecognition of the original liability and the recog
-
nition of a new liability� The difference in the respective
carrying amounts is recognised in the statement of profit
or loss�
1�12 Inventories and cost of goods sold
Inventories are stated at the lower of cost and net
realisable value� Net realisable value is the estimated
sales price for the goods� Historical cost is calculated
using a weighted average historical cost and includes
expenditures directly linked to getting the goods to their
final location and condition� Foreseeable obsolescence
is assessed continuously. The group’s inventories
consist solely of goods purchased for resale�
Goods for sale are often purchased in currencies other
than Norwegian kroner, and the purchase price in
Norwegian kroner is locked in through the use of foreign
currency derivative contracts� Both unrealised and
realised gains or losses on the foreign currency deriva-
tives which are economic hedges for inventory
purchases are included as part of cost of goods sold
(COGS)� Similarly, unrealised foreign currency exchange
gains and losses on inventory trade payables and
realised foreign currency exchange gains or losses at
the time of payment are also included as part of COGS�
1�13 Cash
Cash includes cash in hand and bank deposits� Bank
overdrafts are presented in the statement of cash flows
less cash�
1�14 Treasury shares
When treasury shares are repurchased, the purchase
price including directly attributable costs is recognised in
equity� Treasury shares are presented as a reduction in
equity� Losses or gains on transactions involving
treasury shares are not recognised in the statement of
comprehensive income�
1�15 Post-employment benefits
The group has two post-employment schemes: one
defined contribution and one contractual retirement
scheme� The contractual retirement scheme is effective
from 1 January 2011 and is deemed to be a defined
benefit multi-employer plan, but recognised as a defined
97
contribution agreement since insufficient reliable
information is available to estimate the group’s pro-
portionate share of pension expense, liability and funds
in the collective scheme�
In a defined contribution arrangement, the group
contributes to a public or private insurance plan� The
group has no remaining liabilities after the contribution
to the insurance plan has been made� The contributions
are recognised as a personnel expense when they are
incurred�
1�16 Provisions
Provisions for environmental restoration, restructuring
costs and legal claims are recognised when the group
has an existing legal or constructive obligation as a
result of past events, it is probable that an outflow of
resources will be required to settle the obligation, and
the amount can be reliably estimated�
Provisions are recognised when the group has an
existing obligation (legal or constructive) as a result of a
past event, it is probable (more likely than not) that an
outflow of economic resources will be required from the
group, and the amount can be estimated reliably� The
timing or amount of the outflow may still be uncertain�
Provisions are measured at the estimated expenditure
required to settle the existing obligation, based on the
most reliable evidence available at the reporting date,
including the risks and uncertainties associated with the
existing obligation�
A provision for warranties is recognised when the
underlying products or services are sold� The provision
is based on historical warranty data and an assessment
of all possible outcomes and the accompanying proba
-
bilities�
1�17 Written put options over
non-controlling interest
The group has written put options over non-controlling
interests in Lekekassen Holding AS (“Lekekassen”) and
Strikkemekka Holding AS (“Strikkemekkea”)� The
holders of the non-controlling shares is also the CEO of
Lekekassen and the CEO of Strikkemekka� If the CEOs
resigns, the group has a right and an obligation to
purchase the shares in Lekekassen and Strikkemekka
for a cash consideration� The consideration to be paid is
based on a multiple of EBITDA� At initial recognition, a
financial liability is recognised for the present value of
the redemption amount, with a corresponding charge
directly to shareholders’ equity. The present value of the
redemption amount is estimated to be no less than
equal to the amount payable if the put option were
exercised at the end of the period� The financial liability
is remeasured to reflect changes in the estimated
redemption amount, with a corresponding charge to
shareholders’ equity.
The non-controlling interest continues to be recog
-
nised, and is attributed its share of profit and loss and
total comprehensive income�
1�18 Contingent liabilities and assets
Contingent liabilities are not recognised in the
financial statements� In cases where the possible
outflow of economic resources as a result of existing
obligations is considered improbable or remote, no
liability is recognised�
A contingent asset is not recognised in the financial
statements, but disclosed if it is probable that the benefit
will flow to the group�
1�19 Subsequent events
New information after the reporting date regarding the
group’s financial position at the reporting date is taken
into consideration in the consolidated financial state-
ments� Events after the reporting date which do not
affect the group’s financial position at the reporting date,
but which will affect the financial position of the group in
the future, are noted if they are considered significant�
1�20 New standards, amendments and
interpretations not yet adopted by the
group
The group’s intention is to adopt the relevant new and
amended standards and interpretations when they
become effective�
There are no IFRSs or IFRIC interpretations which are
not yet effective which would be expected to have a
material impact on the group�
98
2 Financial risk management
The group’s core business is discount variety retail.
This exposes the group to a variety of financial risks:
market (including currency, fair value interest-rate and
price), credit and liquidity risk. The goal of the group’s
overall risk management programme is to minimise
potential adverse financial performance effects of these
risks, which result from unpredictable changes in capital
markets� The group uses financial derivatives to hedge
against certain risks� Hedge accounting is not applied�
The financial risk management programme for the
group is carried out by its central treasury department
under policies approved and monitored by the board�
The treasury department identifies, evaluates, hedges
and reports financial risks in cooperation with the
various operating units in the group� The board
approves the principles of overall risk management as
well as policies covering specific areas, such as
currency exchange risk, interest-rate risk, credit risk, the
use of financial derivatives and liquidity management�
2�1 Market risk
2.1.a Currency exchange risk
The group is exposed to currency exchange risk
arising from the import of goods for sale� These trans-
actions are mainly settled in USD and EUR� The group
aims to achieve predictable cash outflows in NOK by
using forward contracts as a hedging strategy for its
exposure to USD and EUR� The hedging strategy is
based on an assessment of the possibilities and
estimated time period required to adjust the business
to the changes in foreign exchange rates�
The following table illustrates the sensitivity of the
group to potential currency changes�
Hedge accounting is not applied�
2.1.b Price risk
The group has limited exposure to price risk
2.1.c Interest-rate risk
The group’s exposure to interest-rate risk arises from
its bank borrowings� The interest-bearing debt has
floating rates, which means it is affected by changes in
interest-rates. The group’s financial policy includes a
detailed descripton of hedging, and 60 per cent of the
principal of the group’s bank loans is presently hedged.
The current interest-rate swaps expire in July 2027 and
2030� Management monitors development in the
market, and regularly assesses the exposure to
interest-rate risk� The interest-rate risk which arises from
loans with a floating interest rate is managed by using
interest-rate swaps�
The following table illustrates the sensitivity of the
group to potential interest-rate changes�
Hedge accounting is not applied�
2�2 Credit risk
The group has limited exposure to credit risk, since
most of its revenue transactions are settled by cash or
debit cards� However, a small share of its revenue
comes from franchise agreements, where each
franchisee is granted credit� As a franchisor, the group
monitors its franchisees closely to mitigate the credit
risk� Losses on trade receivables have historically been
limited�
2�3 Liquidity risk
The treasury department prepares and monitors cash
flow forecasts of the groups’s liquidity requirements to
ensure that the group has sufficient cash to meet
operational commitments, and to maintain sufficient
flexibility to meet unused credit facilitiy requirements
(see note 23) without breaching financial covenants�
Foreign currency
sensitivity
Changes in
currency Effect on post-tax profit
2022 2021
USD/NOK +10% -46,143 -53,844
-10% +46,143 +53,844
EUR/NOK +10% -14,184 -14,364
-10% +14,184 +14,364
Figures are stated in NOK 1,000
Interest-rate sensitivity
Changes in
interest rate
Effect on
post-tax profit
2022
+1% -3,865
-1% +3,865
2021
+1% -3,890
-1% +3,890
Figures are stated in NOK 1,000
99
2�4 Capital management risk
The group’s objectives when managing capital are
to ensure the ability to continue as a going concern in
order to provide returns for shareholders and to
maintain an optimal capital structure to reduce the cost
of capital, including compliance with covenants in the
loan agreements (see note 23 for further details)� The
long-term financial ambition is a dividend policy of
paying out 50-60 per cent of net profit while maintaining
an efficient balance sheet�
At 31 December 2022, the group’s equity totalled
NOK 3,283 million, which corresponded to an equity
ratio of 35.6 per cent. The board considers Europris’
capital structure to be adequate in relation to the
group’s objectives, strategy and risk profile.
3 Critical accounting estimates
and judgements
Estimates and judgements are continuously evaluated
and are based on historical experience and other
factors, including expectations of future events which
are believed to be reasonable�
3�1 Critical accounting estimates
and assumptions
The group prepares estimates and assumptions
regarding future expectations� The resulting accounting
estimates will by definition seldom equal the related
actual results� Estimates and assumptions which
represent a significant risk of causing material adjust-
ments to the book value of assets and liabilities within
the next financial year are discussed below�
3.1.a Provision for obsolescence
The group makes provision for obsolescence� These
provisions are based on a detailed assessment of the
age distribution of inventory items and whether the
goods are part of an active or expired product range�
The assessment is made on each individual inventory
item and the obsolescence provision increases the
longer the item remains in stock� Goods older than three
years have the highest write-down rate� Write-down for
obsolescence is made when the cost of the goods is
higher than the expected net sales value� These
provisions are estimate-based and require in-depth
knowledge about goods and market�
The following table sets out the contractual maturities (representing undiscounted cash flows) of
financial liabilities�
At 31.12.2022
Up to 6
months
Between
6 and 12 months
Between
1 and 2 years
Between
2 and 5 years Total
Accounts payable 876,419 - - - 876,419
Other current liabilities 406,090 - - - 406,090
Borrowings including interest 14,834 14,841 1,029,313 19,575 1,078,563
Put option liability 281,221 - - - 281,221
Derivatives 8,973 - - - 8,973
Total 1,587,538 14,841 1,029,313 19,575 2,651,267
At 31.12.2021
Up to 6
months
Between
6 and 12 months
Between
1 and 2 years
Between
2 and 5 years Total
Accounts payable 843,854
-
- - 843,854
Other current liabilities 404,379 - - - 404,379
Borrowings including interest 15,745 14,480 114,672 1,022,000 1,166,897
Put option liability 246,528 - - - 246,528
Derivatives 2,940 - - - 2,940
Total 1,513,446 14,480 114,672 1,022,000 2,664,598
Figures are stated in NOK 1,000
100
3.1.b IFRS 16 Leases
In determining the lease term for each contract, the
group must continuously assess whether there are
extension options and termination rights which should be
taken into account when determining the rental period�
The group has established guidelines for these assess-
ments� Typically, lease contracts are renegotiated at the
end of the non-cancellable period, and a new contract is
entered into on better terms in the form of both shorter
duration and lower rent� This means that extension
options in the lease contracts are not normally included
in the IFRS 16 calculation�
Determination of the discount rate as a basis for
calculating the present value of future lease liabilities also
involves the use of discretion� A fixed methodology has
also been established for this process� The approach is
based on interval division of the leases according to the
remaining term of the contracts� The basis for the
discount rate calculation is a risk free interest rate plus a
margin reflecting the maturity of the contracts�
3.1.c Written put options over non-
controlling interest
The group has a written put option over the non-
controlling interests in Lekekassen Holding AS
(“Lekekassen”) and Strikkemekka Holding AS (”Strikke-
mekka”)� The holders of the non-controlling shares is
also the CEO of Lekekassen and CEO of Strikkemekka�
If the CEOs resigns, the group has a right and an
obligation to purchase the shares in Lekekassen and
Strikkemekka for a cash consideration� The consideration
to be paid is based on a multiple of EBITDA� According to
IAS 32 Financial Instruments: Presentation, a financial
liability should initially be recognised at the present value
of the redemption amount with a corresponding charge to
equity� The IFRS does not provide guidance on which
component of equity should be charged, and on whether
the non-controlling interest should continue to be recog-
nised� The group has thus exercised judgement in
developing its accounting policy�
The group has considered that the present ownership
interest of the non-controlling shares remains with the
non-controlling shareholders� The group has thus
considered it appropriate to continue to recognise the
non-controlling interest in the statement of financial
position, and to attribute its share of profit and loss and
other comprehensive income to the non-controlling
interests� The financial liabilities for the put option over
the non-controlling interests are therefore recognised
with a corresponding charge to shareholders’ equity.
IAS 32 provides limited guidance on how the financial
liability for the written put option over the non-controlling
interest should be measured when the purchase date
and/or the redemption amount are/is not known, but
subject to a formula� When developing an accounting
principle, the group has considered guidance in other
IFRS standards, more specifically the guidance in IFRS
13 Fair Value Measurement, which states that the fair
value of a financial liability with a demand feature is no
less than the amount payable on demand, discounted
from the first date that the amount could be required to
be paid� The group has established an accounting
principle where the financial liability is estimated to be no
less than equal to the amount payable if the put option
were exercised at the end of the period�
The financial liability for the put option over the
non-controlling interests is remeasured to reflect changes
in the estimated redemption amount� The adjustment to
the financial liability is recorded with a corresponding
charge to shareholders’ equity. When establishing the
policy of recording the adjustment against equity, the
group has considered the guidance in IFRS 10, which
states that changes in a parent’s ownership interest in a
subsidiary which do not result in the parent losing control
of the subsidiary are equity transactions�
3.2. Judgements in applying the group’s
accounting principles
IFRS 10 (Consolidated financial statements) requires
entities to consolidate entities they control� The standard
provides extended guidance to determine whether
control is present� Franchising is explicitly mentioned in
the standard� The franchises are not included in the
consolidated financial statements of Europris ASA� This
is based on a judgement of the criteria in IFRS 10 of
whether Europris controls the franchises� Through the
franchise agreements, Europris essentially has control
and rights related to protection of the brand name and
the concept� Such rights are not sufficient to gain control
under the provisions of IFRS 10� The decision-making
rights which affect variable returns are primarily held by
the franchisee and the financial risk of the business lies
with the franchisee� Based on an assessment of these
criteria in IFRS 10, Europris does not control the
franchises, and they are thus not consolidated�
The group confirms that there have not been any other
judgements which are deemed to have a significant
impact on the consolidated financial statements�
101
4 Segment information
The group manangement is the group’s chief operating decision-maker. Reporting to the group management,
which is responsible for evaluating profitability and achivements, is on a consolidated basis which forms the basis
for the group management’s assessment of profitability at a strategic level. The group as a whole is therefore
defined and identified as one segment�
5 Total operating income
The group operates a chain of stores in the discount variety retail sector and online stores which sells
consumer goods, including sales to franchise stores�
The group is required by Norwegian law to have a mandatory occupational pension plan� The group has a
pension plan which fulfills the legal requirements, which covers all employees and is a defined contribution plan�
6 Employee benefit expenses and remuneration to auditor
Figures are stated in NOK 1,000 2022 2021
Revenue 8,928,898 8,568,379
Income from franchise fees 74,089 78,404
Other income 12,778 1,395
Total other income 86,868 79,798
Total operating income 9,015,766 8,648,177
Figures are stated in NOK 1,000 2022 2021
Pay expenses 1,100,448 1,051,020
Social security costs 148,173 140,392
Pension expenses 31,218 24,560
Other benefits 15,293 14,332
Total 1,295,131 1,230,303
Number of employees 3,444 3,298
Full-time employees 2,132 2,116
Figures are stated in NOK 1,000 2022 2021
Auditor fees
Audit services 2,244 1,684
Technical services related to financial reporting 78 110
Total 2,322 1,794
Auditor fees are presented exclusive of VAT� No auditor fees have been recorded in equity in connection with
equity transactions�
102
7 Management remuneration
Remuneration statement
The board will provide a statement on salary and
other remuneration for senior executives to the annual
general meeting on 20 April 2023�
Remuneration guidelines
The board has established guidelines for the remune-
ration of the members of the executive management�
The company’s policy is to offer the executive
management competitive remuneration based on
current market standards as well as on group and
individual performance� The remuneration consists of
a basic salary element combined with a performance-
based bonus programme as set out below� The
executive management participates in the company’s
insurance policies and can be entitled to certain fringe
benefits� The remuneration committee is a
sub-committee of the board which acts as a preparatory
and advisory body in relation to the group’s remune-
ration of the executive management and ensures
thorough and independent preparation of matters
relating to the compensation of executive personnel�
Bonus programme
Europris has established a bonus scheme for the
executive management, which is based on financial and
operational performance� The maximum bonus grant for
a financial year under this scheme is 13�5 months of
gross base salary for the CEO and up to nine months of
gross base salary for the other executive management�
Maximum bonus payment during any single financial
year is 12 months gross pay�
Restricted share programme
In accordance with the remuneration guidelines,
directors and senior executives may participate in a
restricted share programme for an investment amount
limited to NOK 500,000� This programme is subject to
annual approval by the board� Shares acquired through
this programme are subject to a three-year lock-up
period� Each restricted share will be issued at a
purchase price corresponding to the volume-weighted
average price of the company’s shares on the Oslo
Stock Exchange during the 10 trading days before the
award, adjusted for the reduction in value from the
three-year transfer restriction� The reduced value
applicable to the programme run in 2022 was 15 per
cent� Share purchases are borne by the participants,
and the company does not provide credit or financing�
The share programme was run for the second time in
2022 and completed on 14 September 2022� Europris
ASA sold in total 59,113 shares in this programme� The
market price for the shares, ie, the volume weighted
average for the 10 trading days before the allocation
date (31 August-13 September 2022), was NOK 57�72�
The purchase price, adjusted for the reduced value from
the restrictions, was NOK 49�06�
No loans or issued guarantees have been provided to
the executive management group, the members of the
board or other related parties�
Remuneration of the board of directors
Annual fees for 2022 for the board of directors:
More details on salary for senior executives are provided in the remuneration report for 2022�
Figures are stated in NOK 1,000
Title Salary Bonus Pension Other Total
Espen Eldal CEO 3,985 2,238 136 40 6,400
Stina Charlene Byre CFO 1,878 416 136 162 2,593
Other (three individuals) 5,566 2,491 478 486 9,021
Total 11,429 5,145 750 689 18,013
Board of directors
Chair NOK 570,000 per year
Director NOK 297,000 per year
Audit committee
Chair NOK 85,000 per year
Member NOK 55,000 per year
Remuneration committee
Chair NOK 36,000 per year
Member NOK 25,000 per year
103
8 Pension liabilities
Figures are stated in NOK 1,000
The group has a contractual retirement pension scheme (AFP)� This is a multi-employer plan, and accounted
for as a defined contribution plan� The annual premium is expensed� The entity pays a premium currently set at
an average of 2�5 per cent of total employee salary� Pension cost (premium) in 2022 was NOK 8,179 (2021:
NOK 7,810)�
In addition, the group has a pension agreement with DNB Forsikring which fullfills the legal requirement under
Norwegian law and covers all employees� The scheme is a defined contribution plan� Pension costs in 2022
were NOK 23,038 (2021: NOK 16,749)� This scheme had 3,444 members in 2022 (2021: 2,116)�
9 Other operating expenses
Figures are stated in NOK 1,000
2022 2021
Leasing and other cost of premises 92,493 83,703
Transport/distribution 284,006 246,047
Marketing and other expenses 459,962 412,999
Total 836,461 742,750
Leasing and other cost of premises relates to variable lease payments, in addition to payments for short-term
leases and low-value assets�
10 Financial income and expenses
Financial expenses:
Interest to financial institutions 42,967 26,304
Leasing interest cost 80,558 72,702
Other interest expense 463 92
Amortised interest on bank loan (1,192) 2,450
Other financial expenses 24,020 21,201
Total 146,816 122,749
Net financial income (expense) (107,394) (94,395)
Figures are stated in NOK 1,000
2022 2021
Financial income:
Other interest income 200 102
Other financial income 231 2,373
Gain in fair value of financial instruments
– Unrealised interest-rate swap income 38,991 25,880
Total 39,422 28,354
104
Tax on the group’s pre-tax profit differs from the theoretical amount which would arise from using the weighted
average tax rate applicable to the profits of the consolidated entities as follows:
11 Income tax expense
Figures are stated in NOK 1,000
2022 2021
Tax payable
Current tax on profit for the year 289,147 321,941
Tax from partly owned subsidiaries 2,157 2,117
Total tax payable in the balance sheet 291,305 324,057
Deferred tax
Change in temporary differences 5,290 47,631
Change in temporary differences related to mergers and acquisitions (1,442) (58,100)
Total deferred tax 3,849 (10,469)
Total income tax expense 295,153 313,588
Figures are stated in NOK 1,000
2022 2021
Profit before tax 1,337,009 1,417,551
Tax calculated at domestic tax rates applicable to profits (22%) 294,142 311,861
Tax effects from:
- Non-taxable income (10,228) (15,898)
- Non-deductible expenses 5,276 1,019
- Other directly recognised differences 5,964 16,605
Tax expense recognised in the income statement 295,153 313,588
Effective tax rate 22�1% 22�1%
105
The analysis of deferred tax assets and deferred tax liabilities is as follows
2022 2021
Deferred tax assets
- Deferred tax assets to be recovered later than 12 months (13,513) (15,276)
- Deferred tax assets to be recovered within 12 months (78,040) (79,980)
Deferred tax assets (91,554) (95,257)
Deferred tax liabilities
- Deferred tax liabilities to be recovered later than 12 months 133,346 137,430
- Deferred tax liabilities to be recovered within 12 months - -
Deferred tax liabilities 133,346 137,430
Loss carried forward (102) (12)
Deferred tax related to directly recognised differences 15,932 10,170
Deferred tax liabilities (net) 57,622 52,332
Deferred tax asset/liability rates 22% 22%
Change in deferred tax liabilities recognised in the balance sheet
Balance at 01�01 52,332 4,726
Change during the year recognised in the income statement 5,290 47,606
Balance at 31.12 57,622 52,332
Specification of change in deferred tax liabilities/tax assets
Figures are stated in NOK 1,000
Tangible
fixed assets
Non-
current debt Total
Deferred tax liabilities
Balance at 01�01�2021 91,843 1,082 92,924
Recognised deferred tax in profit for the period 44,824 (319) 44,505
Balance at 31.12.2021 136,667 763 137,430
Balance at 01�01�2022 136,667 763 137,430
Recognised deferred tax in profit for the period (4,346) 262 (4,084)
Balance at 31.12.2022 132,321 1,025 133,346
Figures are stated in NOK 1,000 Inventories Receivables
Provision for
other liabilities
Loss
carried
forward Total
Deferred tax assets
Balance at 01�01�2021 (64,592) (420) (16,648) (12) (81,671)
Recognised deferred tax in profit for the period (14,968) (1) 1,371 - (13,598)
Balance at 31.12.2021 (79,560) (421) (15,276) (12) (95,269)
Balance at 01�01�2022 (79,560) (421) (15,276) (12) (95,269)
Recognised deferred tax in profit for the period 1,986 (46) 1,763 (90) 3,613
Balance at 31.12.2022 (77,574) (466) (13,513) (102) (91,656)
106
Figures are stated in NOK 1,000 Software Trademark Contractual rights Goodwill Total
Financial year 2021
Carrying amount at 01�01�2021 58,030 387,573 - 1,617,732 2,063,334
Additions through the acquisition of subsidiaries 2 203,694 - 455,641 659,337
Additions 32,490 - - - 32,490
Amortisation (25,100) - - - (25,100)
Carrying amount at 31.12.2021 65,421 591,267 - 2,073,373 2,730,061
At 31.12.2021
Acquisition cost 237,887 622,140 250 700 2,073,373 3,184,099
Accumulated amortisation (172,466) (30,873) (172,356) - (375,695)
Accumulated impairment - - (78,344) - (78,344)
Net carrying amount 31.12.2021 65,421 591,267 - 2,073,373 2,730,061
Financial year 2022
Carrying amount at 01�01�2022 65,421 591,267 - 2,073,373 2,730,061
Additions through the acquisition of subsidiaries - - - 117,681 117,681
Additions 57,927 - - - 57,927
Amortisation (30,381) - - - (30,381)
Carrying amount at 31.12.2022 92,967 591,267 - 2,191,054 2,875,288
At 31.12.2022
Acquisition cost 295,814 622,140 250,700 2,191,053 3,359,707
Accumulated amortisation (202,847) (30,873) (172,356) - (406,076)
Accumulated impairment - - (78,344) - (78,344)
Net carrying amount 31.12.2022 92,967 591,267 - 2,191,053 2,875,288
12 Intangible assets
The group’s trademarks are linked to the brand names
”Europris” and ”Lekekassen”� The ”Europris” name has
existed for a long time and has shown a healthy
development since its origination� The ”Lekekassen”
name is a strong brand which is linked to the online store
Lekekassen - Norway’s largest online toy store. There
are clear intentions to retain and further develop both
brand names for the forseeable future� As a conse-
quence, the brand names are not depreciated, but tested
for impairment annually�
The contractual rights are related to franchise agree
-
ments�
Goodwill comprises a number of elements which
individually cannot be quantified� Most significant is the
well positioned business and the established reputation
in the market� The skilled workforce, as well as supplier
and customer relations (non-contractual), are also
important elements�
Impairment testing of goodwill
and trademarks
Goodwill and the trademarks are annually tested for
impairment by comparing their carrying amount and
recoverable amount (greater of fair value less costs to
sell and value in use)� Goodwill is allocated to the groups
of cash-generating units which are expected to benefit
from the synergies of the combination� The group has
one operating segment and goodwill is tested for impair-
ment at this level, which represents the lowest level in
the entity at which goodwill is monitored for internal
management purposes�
Goodwill and trademarks
The recoverable amount of a cash-generating unit is
calculated on the basis of the value which the asset will
provide to the business (value in use)� In this calculation,
the forecasts of future cash flows are based on budgets
107
13 Property, plant and equipment
and long-term plans approved by the management
covering a five-year period (2023-2027)� The gross
margin is stable in the period, and in range with the
historical performance� EBITDA percentages of sales
are also stable in the 2023-2027 period� Cash flows
beyond the five-year period are calculated using the
expected inflation rate as a long-term growth rate� A
market-based rate of return of 10�3 per cent (7�6 per
cent in 2021) before tax is derived using the weighted
average cost of capital (WACC) model�
Trademark Lekekassen
Lekekassen was acquired in 2021 and defined as a
separate cash-generating unit and the brand name
Lekekassen is tested for impairment at this level� The
recoverable amount of a cash-generating unit is
calculated on the basis of the value which the asset will
provide to the business (value in use)� In this calculation,
the forecasts of future cash flows are based on budgets
and long-term plans approved by the management
covering a five-year period (2023-2027)� The gross
margin is stable in the period, and in range with the
historical performance� EBITDA percentages of sales
are also stable in the 2023-2027 period� Cash flows
beyond the five-year period are calculated using the
expected inflation rate as a long-term growth rate� A
market-based rate of return of 14�6 per cent before tax is
derived using the weighted average cost of capital
(WACC) model�
The recoverable amount is significantly above the
carrying amount of the group’s goodwill and trademarks.
Figures are stated in NOK 1,000
Land Buildings
Fixtures and
fittings Total
Financial year 2021
Carrying amount at 01�01�2021 24,966 - 301,400 326,366
Additions through the acquisition of subsidiaries 21,224 118,776 3,787 143,787
Additions - 2,823 95,627 98,450
Disposals - - (176) (176)
Depreciation charge for the year - (2,237) (72,118) (74,355)
Carrying amount at 31.12.2021 46,190 119,362 328,520 494,072
At 31.12.2021
Accumulated cost 46,190 121,599 752,714 920,502
Disposals at cost - - (176) (176)
Accumulated depreciation - (2,237) (424,018) (426,254)
Net carrying amount 31.12.2021 46,190 119,362 328,520 494,072
Financial year 2022
Carrying amount at 01�01�2022 46,190 119,362 328,520 494,072
Additions through the acquisition of subsidiaries - - 2,214 2,214
Additions 2,000 - 82,750 84,750
Disposals (26,966) - - (26,966)
Depreciation charge for the year - (6,132 ) (75,414) (81,546)
Carrying amount at 31.12.2022 21,225 113,230 338,070 472,525
At 31.12.2022
Accumulated cost 48,190 121,599 837,502 1,007,291
Disposals at cost (26,966) - - (26,966)
Accumulated depreciation - (8,369) (499,432) (507,801)
Net carrying amount 31.12.2022 21,225 113,230 338,070 472,525
108
14 Leases
Figures are stated in NOK 1,000 Buildings Vehicles
Fixtures
and fittings Total
Right-of-use assets
Carrying amount at 01�01�2022 2,210,848 15,433
93,741 2,320,022
Additions 429,487 8,944
7,748 446,180
Additions through the acquisition of subsidiaries 12,792 -
12,795 25,587
Adjustments (CPI) 141,783 -
- 141,783
Depreciation (477,069) (9,470)
(12,569) (499,108)
Terminations - -
- -
Net carrying amount 31.12.2022 2,317,841 14,908
101,715 2,434,465
Lease liabilities 2022 2021
Carrying amount at 01�01�
2,403,718 2 324,300
Additions
444,832 425,129
Additions through the acquisition of subsidiaries
28,666 18,242
Adjustments (CPI)
141,783 85,210
Interest expense
80,558 72,702
Lease payments
(562,566) (521,864)
Net carrying amount 31.12.
2,536,991 2,403,718
Undiscounted lease liabilities and maturity of cash outflows
Less than one year
563,969 518,195
One-five years
1,562,386 1,470,243
More than five years
713,592 697,832
Total undiscounted lease liabilities at 31.12.
2,839,946 2,686,269
Lease expenses recognised in consolidated income statement
Interest expense on lease liabilities
80,558 72,702
Variable lease payments
2,316 3,258
Operating expenses related to short-term leases
17,318 12,120
Operating expenses related to low-value assets
1,324 1,415
Payments in lease agreements
580,445 538,657
Current lease liabilities
521,958 490,164
Non-current lease liabilities
2,015,033 1,913,555
Total lease liabilities at 31.12.
2,536,991 2,403,718
109
Practical expedients applied
The group also leases smaller machinery and equipment with contract terms of 1 to 3 years� The group has
elected to apply the practical expedient of low value assets for some of these leases and does not recognise
lease liabilities or right-of-use assets� The leases are instead expensed when they incur� The group has also
applied the practical expedient to not recognise lease liabilities and right-of-use assets for short-term leases,
presented in the table above�
Variable lease payments
In addition to the lease liabilities above, the group is committed to pay variable lease payments for some of
their leases� The variable lease payments are expensed as incurred�
Extension options
The lease term represents the non-cancellable period of the lease together with periods covered by an option
to extend the lease if the lessee is reasonably certain to excercise that option�
Generally it is not considered reasonable certain that extension options will be exercised� Typically, lease
contracts are renegotiated at the end of the non-cancellable period, and a new contract is entered into on better
terms, in the form of both shorter duration and lower rent� This means that extension options in the lease
contracts are not normally included in the IFRS 16 calculation�
There are no indications of a need for impairment of right-of-use assets in 2022�
15 Acquisitions of companies
Europris acquired 67 per cent of Strikkemekka for NOK 88�4 million in cash, a transaction which was closed
on 1 July 2022� The main revenue contributor is Strikkemekka�no� The knitting category is a good match with
Europris’ existing business, and a potential exists for synergies through joint purchasing of both goods and
services and the development of e-commerce solutions� The acquisition also includes Designhandel, an online
store in Norway and Sweden for kitchenware and smaller home interior products� The aquired company had
revenues of NOK 193 million and EBITDA of NOK 7 million for the for the full year 2022 (unaudited)�
The purchase price was NOK 88�4 million, based on equity value for 67 per cent, and Europris has a
pre-emptive right to acquire the remaining shares in Strikkemekka� The excess value of the acquisition relates
to goodwill in the purchase price allocation. Strikkemekka was consolidated into the Europris group’s financial
statements as of 1 July 2022�
The remaining 33 per cent of Strikkemekka Holding AS is owned by the founder Eirik Fuglestad� Fuglestad is
employed as CEO of Strikkemekka. Europris has a right and obligation to buy Fuglestad’s share if Fuglestad’s
employment is terminated by either of the parties� The price to be paid is based on a multiple of EBITDA, and is
consistent with the price formula used in the original purchase of the 67 per cent� A financial liability has been
recognised for Europris obligation to purchase Fuglestad’s share should the employment be terminated, with a
corresponding charge directly to shareholders equity� The liability shall be estimated at the present value of the
redemption amount, which is estimated to the consideration to be paid if the employment is terminated at period
end� In the statement of financial position, the liability is recognised separately as put option liability�
110
Goodwill comprises a number of elements which individually cannot be quantified� Most significant is the well
positioned business and the established reputation in the market� The skilled workforce, as well as supplier and
customer relations (non-contractual), are also important elements�
16 Investments in associated companies
In June 2018, the group acquired 20 per cent of Runsvengruppen AB (ÖoB), a Swedish discount variety retailer�
ÖoB has its head office in Skänninge and runs 91 stores across Sweden�
The Europris group owns 20 per cent of the shares and voting rights in Runsvengruppen AS�
Based on equity value, using a fixed multiple of 7�7 on adjusted EBITDA for ÖoB in 2018, the purchase price was
determined as NOK 115�2 million� NOK 4�3 million in transaction expenses has also been recognised as part of the
acquisition cost, bringing the total investment to NOK 119�5 million� The vendor note issued when closing the deal is
converted to 4,349,695 Europris shares, corresponding to 2�61 per cent of the share capital�
Acquired companies statement of financial position Total fair value
Total intangible assets
1
Total fixed assets
28
Inventories
33
Receivables
5
Cash
5
Total assets
72
Non-current liabilities
(26)
Current liabilities
(23)
Non-controlling interests
(44)
Net assets
(21)
Goodwill
111
Net asset acquired 31.12.2022
90
Acquired companies Acquisitions Allocation of excess values After acquisition date
Figures in NOK million
Date of
control
Ownership and
voting rights
Acquisition
cost
Operating
income
Net
profit
Strikkemekka Holding AS July 2022 67% 88 101 1
The acquired company was paid in cash�
Goodwill
111
111
Figures in SEK million 2022 2021
Unaudited
Audited
Total operating income
4,074�8 3,899�0
Profit for the year
NA 13�5
Current assets
NA 980�2
Non-current assets
NA 993�3
Current liabilities
NA 846�6
Non-current liabilities
NA 702�1
Equity
NA 424�8
Book value 01�01
128�7 128�5
Estimated profit for the period
4�0 0�2
Book value 31.12
132.7 128.7
The group's share of equity
89�0 77�1
Goodwill
49�8 49�8
Goodwill adjustment
(6�1) 1�8
Book value 31.12
132.7 128.7
A summary of the financial information from Runsvengruppen AB group, based on 100 per cent figures:
Europris holds an option to acquire the remaining 80 per cent of the shares in Runsvengruppen AB�
Whether the option is to be exercised has been further delayed� The fair value of the option is considered
immaterial and is not recognised in the balance sheet�
Figures are stated in NOK 1,000 2022 2021
Changes in non-controlling interests
Non-controlling interests 01�01
268,680 -
Increase due to acquisitions in companies with non-controlling interests
47,977 246,528
Non-controlling interests’ share of profit/loss
21,887 22,152
Dividend to non-controlling interests
(16,500) -
Translation differences
38 -
Non-controlling interests 31.12
322,082 268,680
Breakdown of non-controlling interests' share of profit/loss
Lunehjem�no AS
52 1,086
Lekekassen Holding AS
20,928 21,067
Strikkemekka Holding AS
906 -
Total non-controlling interests' share of profit/loss
21,887 22,152
Breakdown of non-controlling interests
Lunehjem�no AS
6,302 1,812
Lekekassen Holding AS
271,627 266,868
Strikkemekka Holding AS
44,153 -
Total non-controlling interests
322,082 268,680
17 Non-controlling interests
112
18 Earnings per share
Earnings per share are calculated by dividing profit attributable to ordinary shareholders by a weighted average
of ordinary shares outstanding during the period� The average number of shares outstanding adjusted to take
account of the holding of treasury shares�
Figures are stated in NOK 1,000, except per share amounts 2022 2021
Profit for the period
1,041,856 1,103,963
Profit available to holders of ordinary shares
1,019,969 1,081,811
Number of ordinary shares
166,969 166,969
Weighted average of ordinary shares outstanding
160,989 160,870
Earnings per ordinary share (basic)
6.34 6.72
Earnings per ordinary share (diluted)
6.34 6.72
Figures are stated in NOK 1,000 2022 2021
Trade receivables
Trade receivables
215,775 216,080
Provision for impairment
(600) (600)
Net trade receivables
215,175 215,480
Other receivables
Unbilled receivables
52,064 38,242
Prepaid expenses
53 215
Other receivables
13,140 5,784
Other receivables
65,256 44,241
Provisions
62,882 60,816
Total
343,312 320,538
Non-current receivables
Deposits and loans to franchisees
36,651 28,391
Other receivables
36,651 28,391
Total current and non-current receivables
379,963 348,929
The carrying amount of trade receivables, prepayments and other receivables is assessed as not differing
materially from fair value�
Figures are stated in NOK 1,000 2022 2021
Provision for impairment of trade receivables
At 01�01
600 600
Change in provision
- -
At 31.12
600 600
Ageing of trade receivables
Not due
207,014 206,870
Due
8,161 8,610
Total
215,175 215,480
19 Trade receivables and other receivables
Accounts receivable older than 90 days constituted an insignificant portion of overdue items at 31�12�
This applies to both years�
113
Figures are stated in NOK 1,000 2022 2021
Inventories
2,411,847 2,025,769
- Provision for obsolescence
(28,010) (28,457)
Booked value
2,383,837 1,997,312
Provision for obsolescence
At 01�01 (28,457) (35,283)
Change in accruals
447 6,826
Provision for impairment at 31.12
(28,010) (28,457)
Carrying amount of inventory which has been impaired
407,626 323,854
The group makes provisions for impairment of inventory� These provisions are estimated and require in-depth
knowledge of the goods and market conditions� See more details in note 3�1�a�
Figures are stated in NOK 1,000 2022 2021
Cost of goods sold
4,894,966 4,638,884
Foreign exchange currency effects
(62,183) (46,741)
Net cost of goods sold
4,832,783 4,592,143
Unrealised gains and losses are classified as part of the cost of goods sold (COGS) in the profit or loss
statement� Similarly, unrealised foreign currency exchange gains and losses on inventory trade payables are also
included as part of COGS� All gains and losses, both realised and unrealised, related to the acquisition of
inventory are included as part of COGS�
20 Inventories and cost of goods sold
Figures are stated in NOK 1,000 2022 2021
Cash
464,488 570,286
Total
464,488 570,286
Figures are stated in NOK 1,000 2022 2021
Cash
461,422 567,347
Bank deposits restricted for employee tax witholdings
3,066 2,939
Net cash
464,488 570,286
21 Cash
Net cash in the consolidated statement of cash flows includes the following
The group has established a guarantee for employee tax withholdings of a total of NOK 65 million�
The group has overdraft facilities of NOK 1,435 million� See note 23 for further information�
114
22 Share capital and shareholder information
The share capital of Europris ASA is NOK 166,968,888, consisting of 166,968,888 shares with par value of NOK 1�
The company’s share capital consists of one class of shares, whereby all shares have the same voting rights.
Shares held by directors, CEO and CFO
Title Number of shares
Tom Vidar Rygh (directly and indirectly through Retiro AS) Chair 620,227
Pål Wibe (Nordkronen II AS) Director 408,572
Karl Svensson (directly and indirectly through RuNor AS) Director 281,891
Tone Fintland Director 21,000
Claus Juel-Jensen Director 17,304
Hege Bømark Director 8,129
Bente Sollid Storehaug (Digital Hverdag AS) Director 2,038
Espen Eldal (directly and indirectly through Knipen AS) CEO 620,720
Stina C Byre CFO 16,643
Major shareholders at 31 December 2022 Number of shares Share of capital
Folketrygdfondet 19,988,067 12�0%
Verdipapirfondet Alfred Berg Gamba 6,554,850 3�9%
The Bank of New York Mellon (FMR) Nominee 5,964,233 3�6%
Europris ASA 5,938,263 3�6%
Runor AS 4,349,695 2�6%
State Street Bank and Trust Company Nominee 4,123,794 2�5%
Verdipapirfondet Storebrand Norge 3,661,622 2�2%
The Northern Trust Company Nominee 3,112,200 1�9%
Brown Brothers Harriman & Co� Nominee 2,947,200 1�8%
State Street Bank and Trust Company Nominee 2,899,159 1�7%
The Bank of New York Mellon Nominee 2,703,351 1�6%
Vevlen Gård AS 2,400,000 1�4%
Skandinaviska Enskilda Banken AB (Sissener AS) Nominee 2,400,000 1�4%
Verdipapirfondet Holberg Norge 2,200,000 1�3%
Verdipapirfondet DNB Asset Management 2,166,728 1�3%
Verdipapirfondet Holberg Norden 2,150,000 1�3%
State Street Bank and Trust Company Nominee 2,064,427 1�2%
State Street Bank and Trust Company Nominee 2,020,012 1�2%
Verdipapirfondet Alfred Berg Norge 1,700,716 1�0%
Verdipapirfondet KLP Aksje Norge 1,669,058 1�0%
Others 85,955,513 51�5%
Total shares 166,968,888 100.0%
115
Treasury shares at 31 December 2022
Nominal value Number of shares Fair value (NOK)
Shares owned by Europris ASA 5,938,263 5,938,263 404,692,623
Change in number of treasury shares
Treasury shares 01�01�2022 5,997,376
Sale of treasury share to senior execuitives and directors (59,113)
Treasury shares 31.12.2022 5,938,263
Treasury shares have been deducted from equity at cost� The nominal value of the shares has been
deducted from paid-in capital�
Average cost price for treasury shares is NOK 44�47�
The amortised cost of the bank debt is assessed as not differing materially from fair value� The term loan has
been refinanced in 2020, and the risk premium and the interest-rate margin would not be materially changed�
Fair value is therefore assumed to be approximately equal to the carrying amount at the balance sheet date�
The group’s business risk and credit risk have not changed significantly in the period.
23 Bank borrowings
The group signed a new loan agreement in December 2019 and the financing was in place in January 2020�
This loan agreement is a three-year term loan and revolving credit facility agreement with options for one plus
one year� One option period was not exercised, while the second option to extend for one year was exercised,
and the loan agreement runs until January 2024� The loan is syndicated through three credit institutions: DNB Bank,
Danske Bank and Nordea�
2022 2021
Figures are stated in NOK 1,000 Amortised cost Nominal value Amortised cost Nominal value
Non-current liabilities
Debt to financial institutions 1,085,349 1,090,009 1,091,521 1,094,989
Sub-total 1,085,349 1,090,009 1,091,521 1,094,989
Figures are stated in NOK 1,000 2022 2021
Current liabilities
First-year instalment non-current debt 5,000 5,000
Overdraft facilities - off-balance sheet
The loan facility includes an overdraft facility, which consists of
Overdraft and multi-currency group account 235,500 225,000
Revolving facility loan 1,174,000 1,174,000
Guarantees 26,000 26,000
Total 1,435,500 1,425,000
Drawn guarantees 2,999 14,544
Undrawn overdraft facilities 1,432,501 1,410,456
116
Covenants are measured and reported quarterly� In the bank agreement, the covenant (leverage ratio) will be at
3�25 for any test date in the remainder of the agreement period�
The group was in compliance with financial convenants in 2022�
Convenants related to bank agreement
At 31.12.2022
Leverage ratio – net debt/adjusted EBITDA (according to the bank agreement) 3�25
Europris leverage ratio – net debt/adjusted EBITDA (according to the bank agreement) 0�43
See note 2�3 for the maturity structure of all financial liabilities�
No assets are currently pledged under the loan agreement�
Maturity structure including interest
2022 2021
Within one year 29,675 30,225
One to two years 1,029,313 114,672
Two to five years 19,575 1,022,000
After five years 68,750 73,750
Effective interest rate at 31.12
2022 2021
Term loan 2�98% 2�04%
117
24 Derivatives
Figures are stated in NOK 1,000 2022 2021
Interest-rate swaps – expiring within one year 4,725 11,494
Interest-rate swaps – expiring after five years 76,667 37,676
Total derivatives - asset 81,392 49,170
Forward exchange contracts – expiring within one year 8,973 2,940
Total derivatives - liability 8,973 2,940
Net derivative asset (liability) 72,419 46,230
Amount in
NOK 1,000
Average
exchange rate
Termination
Nominal principal forward contracts to purchase (USD) 390,291 9�96 Jan-Jun 2023
Nominal principal forward contracts to purchase (EUR) 113,913 10�32 Jan-Jun 2023
Nominal principal forward contracts to purchase (DKK) 30,951 1�41 Jan-Dec 2023
2022 2021
Lowest fixed interest rate in interest-rate swap agreement 0�780% 0�780%
Highest fixed interest rate in interest-rate swap agreement 0�917% 0�917%
Nominal principal in interest-rate swaps 600,000 600,000
Forward exchange contracts
The group faces currency risk arising from purchases in foreign currencies� The group hedges currency
fluctuations by entering into forward exchange contracts� The group does not use hedge accounting� Forward
exchange contracts are measured at fair value through profit and loss�
Interest rate swaps
The group has entered into interest-rate swap agreements of a total of NOK 600 million to hedge part of its
interest-rate risk fluctuations� Of these contracts, NOK 300 million expires in July 2027 and NOK 300 million
in July 2030. With these contracts 60 per cent of the principal of the group’s bank loans is presently hedged.
The group does not use hedge accounting� The interest-rate swaps are measured at fair value through profit
and loss�
118
25 Financial instruments by category
Figures are stated in NOK 1,000 2022 2021
Financial assets measured at amortised cost
Non-current receivables 36,651 28,391
Trade receivables 215,175 215,480
Other receivables 65,256 44,241
Cash 464,488 570,286
Financial liabilities measured at amortised cost
Non-current debt (1,085,349) (1,091,521)
First year instalment non-current debt (5,000) (5,000)
Accounts payable (876,419) (843,854)
Put option liability (281,221) (246,528)
Other current payables (799,773) (780,402)
Assets/liabilities measured at fair value through profit and loss
Derivatives - asset 81,392 49,169
Derivatives - liability (8,973) (2,940)
Net financial instruments (2,193,774) (2,062, 676)
All the group’s financial instruments measured at fair value are classified as level 2. Level 2 consists of financial
instruments with no quoted prices in active markets for identical assets or liabilities which are observable for the
asset or liability, either directly (that is, as prices) or indirectly (that is, derived from prices)� Level 2 assets and
liabilities are measured by using valuation methods� These valuation methods utilise observed data and the
group’s own estimates. If all significant data required to measure the fair value of an instrument is observable data,
then the instrument is classified as level 2�
Special valuation methods which are being used to value financial instruments include:
- fair value of interest-rate swaps is measured as the net present value of estimated future cash flows based
on the observable yield curve
- fair value of forward exchange contracts is measured as the net present value of the difference between the
contractual forward rate and the forward rate of the currency at the balance-sheet date, multiplied by the
contractual volume in foreign currency�
119
26 Reconciliation of liabilities arising from financing activities
27 Related parties
”The group’s related parties include its associates, key management personnel, directors and major
shareholders�
All subsidaries included in note 1�3 are related parties of Europris ASA�
For management remuneration, refer to note 7 – Management remuneration�”
No significant transactions were conducted with related parties in 2022�
28 Contingent liabilities
There are no significant contingent liabilities at 31�12�2022�
29 Events after the balance-sheet date
There were no subsequent events after the balance sheet date and before the date of the approval of the
financial statements which provide new information about conditions which existed at the balance sheet date which
are not currently reflected in the financial statements, or significant events after the balance sheet date which
require further disclosures�
Figures are stated in NOK 1,000
Financial
liabilities
01.01.
Acquisition
of
subsidiaries Cash flows Leases
Other
changes Total 31.12
2022
Borrowings 1,096,521 1,259 (5,000) - (2,431) 1,090,349
Lease liabilities 2,403,718 28,666 (482,008) 586,615 - 2,536,991
Financial liabilities 3,500,239 29,925 (487,008) 586,615 (2,431) 3,627,340
2021
Borrowings 995,082 102,553 (3,750) - 2,636 1,096,521
Lease liabilities 2,324,300 18,242 (449,162) 510,339 - 2,403,718
Financial liabilities 3,319,382 120,795 (452,912) 510,339 2,636 3,500,239
Non-cash changes
120
121
EUROPRIS ASA
PARENT COMPANY 2022
122
Figures are stated in NOK 1,000
Note
2022 2021
Total operating income
- -
Employee benets expense 2 2,749 2,869
Other operating expenses 2 13,408 9,754
Total operating expenses 16,157 12,623
Operating income (16,157) (12,623)
Group contribution from subsidiary 5 638,795 659,264
Other interest income 2,808 1
Total nancial income 641,603 659,265
Other interest expense 8,299 1,813
Other nancial expenses 4,978 5,583
Total nancial expenses 13,277 7,397
Net nancial income (expenses) 628,326 651,868
Prot/(loss) from associated company 4 4,047
189
Prot before income tax 616,217 639,434
Income tax expense 6 - -
Prot for the year 616,217 639,434
Statement of comprehensive income
Prot for the year 616,217 639,434
Other comprehensive income - -
Total comprehensive income for the year 616,217 639,434
Notes 1 to 10 are an integral part of the nancial statements.
Income statement
123
Figures are stated in NOK 1,000
Note
31-12-2022 31-12-2021
ASSETS
Non-current assets
Investments in subsidiaries 3 925,500 925,500
Investment in associated companies 4 132,723 128,676
Total non-current assets 1,058,223 1,054,176
Current assets
Receivable from group companies 5, 9 640,239 668,275
Other receivables 9 1,851 606
Cash 9 - -
Total current assets 642,090 668,880
Total assets 1,700,313 1,723,056
Notes 1 to 10 are an integral part of the nancial statements.
Balance sheet
124
Figures are stated in NOK 1,000
Note
31-12-2022 31-12-2021
EQUITY AND LIABILITIES
Equity
Share capital and share premium 7 212,683 212,623
Other paid-in capital 22,054 20,718
Other equity 1,459,915 1,486,081
Total shareholders' equity 1,694,653 1,719,422
Liabilities
Current liabilities
Accounts payable 9 456 1,061
Tax payable 6 - -
Other current liabilities 9 5,205 2,573
Total liabilities 5,661 3,634
Total equity and liabilities 1,700,313 1,723,056
Balance sheet
Notes 1 to 10 are an integral part of the nancial statements.
Fredrikstad, 23 March 2023
THE BOARD OF DIRECTORS OF EUROPRIS ASA
Claus Juel-Jensen
Karl Svensson
Espen Eldal
CEO
Tom Vidar Rygh
Chair
Hege Bømark
Tone Fintland
Pål Wibe
Bente Sollid Storehaug
125
Notes 1 to 10 are an integral part of the nancial statements.
In accordance with sections 9-4 and 9-5 of the Norwegian Public Limited Liability Companies Act, the board is
mandated to acquire the company’s own shares on specic conditions. See note 7 for details of treasury shares.
Figures are stated in NOK 1,000
Share
capital
Treasury
shares
Share
premium
Other
paid-in
capital
Retained
earnings
Total
Equity 01.01.2022 166,969 (5,997) 51,652 20,718 1,486,080 1,719,422
Prot for the period - - - - 616,217 616,217
Dividend - - - - (643,886) (643,886)
Sale of treasury shares - 59 - 1,336 1,505 2,900
Other comprehensive income - - - - - -
Equity 31.12.2022 (166,969) (5,938) 51,652 22,054 1,459,915 1,694,653
Equity 01.01.2021 (166,969) (6,150) 51,652 17,475 1,276,977 1,506,923
Prot for the period - - - - 639,434 639,434
Dividend - - - - (434,207) (434,207)
Net purchase/sale of treasury shares - 153 - 3,243 3,874 7,270
Other comprehensive income - - - - - -
Equity 31.12.2021 166,969 (5,997) 51,652 20,718 1,486,080 1,719,422
Statement of changes in equity
126
Figures are stated in NOK 1,000 Note
2022 2021
Cash ows from operating activities
Prot before income tax 616,217 639,434
Share of the (prot)/loss of associates 4 (4,047) (189)
Change in account payable 9 (605) 208
Change in other working capital (637,409) (658,981)
Net cash from operating activities (25,845) (19,529)
Cash ows from nancing activities
Change in group cash pool deposits 5 7,567 (255,292)
Payments from group companies - (417)
Group contribution received 5 659,264 702,172
Dividend (643,886) (434,207)
Sale of treasury shares 7 2,900 7,270
Net cash from nancing activities 25,845 19,526
Net increase in cash - (2)
Cash at beginning of year (01.01) - 2
Cash at end of year (31.12) - -
Notes 1 to 10 are an integral part of the nancial statements.
Statement of cash flows
127
1 Accounting principles
Europris ASA is the parent company of the Europris
group, consisting of Europris Holding AS and subsidi-
aries.
The nancial statements of Europris ASA have been
prepared in accordance with the simplied IFRS
pursuant to section 3-9 of the Norwegian Accounting
Act and the directive on simplied IFRS issued by the
Norwegian Ministry of Finance on 1 January 2022.
The board approved the nancial statements on 23
March 2023.
1.1 Simplied IFRS
The company has applied the following simplica-
tions to the IFRS recognition and measurement
principles:
• dividends and group contributions are recognised
as income in the same year as the dividend or
group contribution is recognised in the nancial
statements of the group company which pays the
dividend or group contribution, in accordance with
Norwegian generally accepted accounting
principles.
1.2 Basis of preparation
The nancial statements have been prepared in
accordance with the historical cost convention. The
company has applied the going concern assumption
when preparing its nancial statements
1.3 Investment in associates
The company has investments in associates.
Associates are entities over which the company has
signicant inuence, but not control over nancial and
operating management.
The considerations made in determining whether the
company has signicant inuence over an entity are
similar to those necessary to determine control over
subsidiaries.
Associates are accounted for using the equity
method from the date when signicant inuence is
achieved until such inuence ceases.
Investments in an associate are initially recognised
at cost. The contingent consideration is included in cost
and changes in estimated contingent consideration will
be recognised as an adjustment of cost. The carrying
amount of the investment is adjusted to recognise
changes in the company’s share of the net assets of
the associate since the acquisition date. Goodwill
relating to the associate is included in the carrying
amount of the investment and is not tested for impair-
ment individually.
The statement of prot or loss reects the company’s
share of the results of operations of the associate. In
addition, when there has been a change recognised
directly in the equity of the associate, the company
recognises its share of any changes, when applicable,
in the statement of changes in equity. Unrealised gains
and losses resulting from transactions between the
company and the associate are eliminated to the extent
of the interest in the associate.
If there are indications that the investment in the
associate is impaired, the company will perform an
impairment test of the carrying amount of the
investment. Any impairment losses are recognised as
share of prot of an associate in the statement of prot
or loss.
If the company’s share of the loss surpasses the
carrying amount of the associate, the carrying amount
is set to zero and further loss is not recognised unless
the company has an obligation to make up for the loss.
Upon loss of signicant inuence over the associate,
such that the equity method ceases to apply, the
company measures and recognises any retained
investment at its fair value. A new measurement of
remaining ownership interests will not be performed if
the equity method is still applicable.
1.4 Revenue recognition
Group contributions and dividends received from
subsidiaries are recognised as income if the amount is
within the net income of the subsidiary after the
acquisition date. Group contributions and dividends
which exceed the net income of the subsidiary after the
acquisition date are recognised as a reduction of the
carrying value of the subsidiary. When recognising
income, the gross group contribution (before tax) is
presented on a separate line in the income statement.
Notes
128
Group contributions to subsidiaries from the company
increase the carrying value of the investment. Group
contributions to subsidiaries are recognised net, after
tax.
1.5 Current and deferred income tax
Tax expense for the period comprises current and
deferred tax. Deferred tax/deferred tax asset is recog-
nised on temporary differences arising between the tax
bases of assets and liabilities and their carrying
amounts in the nancial statements.
Deferred income tax assets are recognised only to the
extent that it is probable that future taxable prot will be
available against which the temporary differences can
be utilised. The company recognises previously
deferred tax assets to the extent that it has become
probable that the company can utilise the deferred tax
asset. Similarly, the company will reduce deferred tax
assets to the extent that the company no longer
considers it probable that it can utilise the deferred tax
asset.
Deferred tax liabilities and deferred tax assets are
measured on the basis of the anticipated future tax rate
relating to items where the temporary difference has
arisen.
Deferred tax liabilities and deferred tax assets are
recognised at nominal value and are classied as xed
assets (non-current liabilities) in the balance sheet.
Current tax and deferred tax are recognised directly in
equity to the extent that the tax items relate to equity
transactions or changes in accounting principles.
1.6 Cash
Cash includes cash in hand and bank deposits.
1.7 Provisions
Provisions are recognised when the company has a
present obligation (legal or constructive) as a result of a
past event, it is probable (more likely than not) that an
outow of economic resources will be required from the
company, and amounts can be estimated reliably. If the
effect is material, provisions are calculated by discount-
ing the expected future cash ows at a pre-tax discount
rate which reects current market assessments of the
time value of money and, if relevant, the risks specic to
the liability.
A provision for warranties is recognised when the
underlying products or services are sold. The provision
is based on historical warranty data and an assessment
of all possible outcomes and the accompanying proba
-
bilities.
1.8 Contingent liabilities and assets
A contingent liability is recorded in the books of
accounts only if the contingency is probable and the
amount of the liability can be estimated. In cases where
the possible outow of economic resources as a result
of present obligations is considered improbable or
remote, no liability is disclosed.
A contingent asset is not recognised in the nancial
statements, but disclosed if it is probable that the benet
will ow to the company.
1.9 Subsequent events
New information after the reporting date regarding the
company’s nancial position at the reporting date is
taken into consideration in the nancial statements.
Events after the reporting date which do not affect the
company’s nancial position at the reporting date, but
which will affect the nancial position of the company in
the future, are disclosed if they are considered to be
signicant.
129
2 Employees, pensions and remuneration to auditor
The company has no employees. As a result, it has no obligation to have a pension scheme according to the
Norwegian Act on mandatory occupational pensions.
No salaries or other remunerations have been paid to the CEO.
Compensation for directors is stipulated at NOK 2,749 in 2022.
There are no obligations to pay the directors a settlement in the event of a termination of service.
No loans or guarantees have been provided for any related parties.
3 Investments in subsidiaries
Investments in subsidiaries are stated at acquisition cost and accounted for using the cost method.
Figures are stated in NOK 1,000
2022 2021
Audit fees, divided by type of service (exclusive VAT)
Statutory audit
495 373
Technical services related to nancial reporting
- 38
Total audit fees 495 410
Figures are stated in NOK 1,000
Registered
ofce
Ownership
share
Equity
31.12.2022
Net prot 2022
Carrying
value
Subsidiary
Europris Holding AS Fredrikstad 100% 1,534,994 32,817 925,500
130
Europris holds an option to acquire the remaining 80 per cent of the shares in Runsvengruppen AB. Whether the
option is to be exercised has been further delayed. The fair value of the option is considered immaterial and is not
recognised in the balance sheet.
4 Investments in associated companies
In June 2018, the group acquired 20 per cent of Runsvengruppen AB (ÖoB), a Swedish discount variety retailer.
ÖoB has its head ofce in Skänninge and runs 91 stores across Sweden.
The Europris group owns 20 per cent of the shares and voting rights in Runsvengruppen AS.
Based on equity value, using a xed multiple of 7.7 on adjusted EBITDA for ÖoB in 2018, the purchase price was
determined as NOK 115.2 million. NOK 4.3 million in transaction expenses has also been recognised as part of the
acquisition cost, bringing the total investment to NOK 119.5 million. The vendor note issued when closing the deal is
converted to 4,349,695 Europris shares, corresponding to 2.61 per cent of the share capital.
A summary of the nancial information from Runsvengruppen AB group, based on 100 per cent gures:
Figures in SEK million 2022 2021
Unaudited
Audited
Total operating income
4,074.8 3,899.0
Prot for the year
NA 13.5
Current assets
NA 980.2
Non-current assets
NA 993.3
Current liabilities
NA 846.6
Non-current liabilities
NA 702.1
Equity
NA 424.8
Book value 01.01
128.7 128.5
Estimated prot for the period
4.0 0.2
Book value 31.12
132.7 128.7
The group's share of equity
89.0 77.1
Goodwill
49.8 49.8
Goodwill adjustment
(6.1) 1.8
Book value 31.12
132.7 128.7
131
5 Receivables to group companies
Receivables to group companies is included with the following amounts:
6 Income tax expense
Liabilities and receivables to group companies is included with the following amounts:
Figures are stated in NOK 1,000
2022 2021
Receivables
Group contribution 638,795 659,264
Deposits in the group's cash pool agreement 1,444 9,011
Total receivables 640,239 668,275
Figures are stated in NOK 1,000
2022 2021
Basis for income tax expense and tax payable
Prot before tax 616,217 639,434
Non-deductible expenses (616,217) (639,434)
Basis for the tax expense - -
Reconciliation of the income tax expense
Tax payable (22% of the basis for tax payable in the income statement) 135,568 140,675
Income tax expense - -
Difference (135,568) (140,675)
Difference consists of:
22% of non-deductible expenses (135,568) (140,675)
Total explained difference (135,568) (140,675)
Tax payable in the balance sheet
Tax payable in income tax expense - -
Tax payable in balance sheet - -
132
7 Share capital and shareholder information
The share capital of Europris ASA is NOK 166,968,888, consisting of 166,968,888 shares with par value of NOK 1.
The company’s share capital consists of one class of shares, whereby all shares have the same voting rights.
Major shareholders at 31 December 2022 Number of shares Share of capital
Folketrygdfondet 19,988,067 12.0%
Verdipapirfondet Alfred Berg Gamba 6,554,850 3.9%
The Bank of New York Mellon (FMR) Nominee 5,964,233 3.6%
Europris ASA 5,938,263 3.6%
Runor AS 4,349,695 2.6%
State Street Bank and Trust Company Nominee 4,123,794 2.5%
Verdipapirfondet Storebrand Norge 3,661,622 2.2%
The Northern Trust Company Nominee 3,112,200 1.9%
Brown Brothers Harriman & Co. Nominee 2,947,200 1.8%
State Street Bank and Trust Company Nominee 2,899,159 1.7%
The Bank of New York Mellon Nominee 2,703,351 1.6%
Vevlen Gård AS 2,400,000 1.4%
Skandinaviska Enskilda Banken AB (Sissener AS) Nominee 2,400,000 1.4%
Verdipapirfondet Holberg Norge 2,200,000 1.3%
Verdipapirfondet DNB Asset Management 2,166,728 1.3%
Verdipapirfondet Holberg Norden 2,150,000 1.3%
State Street Bank and Trust Company Nominee 2,064,427 1.2%
State Street Bank and Trust Company Nominee 2,020,012 1.2%
Verdipapirfondet Alfred Berg Norge 1,700,716 1.0%
Verdipapirfondet KLP Aksje Norge 1,669,058 1.0%
Others 85,955,513 51.5%
Total shares 166,968,888 100.0%
Shares held by directors, CEO and CFO
Title Number of shares
Tom Vidar Rygh (directly and indirectly through Retiro AS) Chair 620,227
Pål Wibe (Nordkronen II AS) Director 408,572
Karl Svensson (directly and indirectly through RuNor AS) Director 281,891
Tone Fintland Director 21,000
Claus Juel-Jensen Director 17,304
Hege Bømark Director 8,129
Bente Sollid Storehaug (Digital Hverdag AS) Director 2,038
Espen Eldal (directly and indirectly through Knipen AS) CEO 620,720
Stina C Byre CFO 16,643
133
Treasury shares at 31 December 2022
Nominal value Number of shares Fair value (NOK)
Shares owned by Europris ASA 5,938,263 5,938,263 404,692,623
Figures are stated in NOK 1,000
2022 2021
Financial assets measured at amortised cost
Other current receivables 642,090 668,880
Financial liabilities measured at amortised cost
Accounts payable
(456) (1,061)
Net nancial instruments 641,634 667,819
Change in number of treasury shares
Treasury shares 01.01.2022 5,997,376
Sale of treasury share to senior execuitives and directors (59,113)
Treasury shares 31.12.2022 5,938,263
8 Transactions with related parties
Information regarding salaries of senior executives is disclosed in note 2. Information on intercompany
receivables and liabilities is disclosed in note 5. No material transactions were conducted with related
parties in 2022 other than the information included in the notes.
10 Subsequent events
There were no subsequent events after the balance sheet date and before the date of the approval
of the nancial statements which provide new information about conditions which existed at the balance
sheet date which are not currently reected in the nancial statements), or signicant events after the
balance sheet date which require further disclosures.
9 Financial instruments by category
Treasury shares have been deducted from equity at cost. The nominal value of the shares has been
deducted from paid-in capital.
Average cost price for treasury shares is NOK 44.47.
134
Europris head ofce in Fredrikstad.
135
Responsibility statement
We conrm, to the best of our knowledge, that the nancial statements for the period 1 january to
31 December 2022 have been prepared in accordance with current applicable accounting standards,
and give a true and fair view of the assets, liabilities, nancial position and prot and loss of the entity
and the group taken as a whole. We also conrm that the directors’ report includes a true and fair view
of the development and performance of the business and the position of the entity and the group, together
with a description of the principal risks and uncertainties facing the entity and the group.
Declaration to the annual report 2022
Fredrikstad, 23 March 2023
THE BOARD OF DIRECTORS OF EUROPRIS ASA
Claus Juel-Jensen
Karl Svensson
Espen Eldal
CEO
Tom Vidar Rygh
Chair
Hege Bømark
Tone Fintland
Pål Wibe
Bente Sollid Storehaug
136
APMs are used by Europris for annual and periodic
nancial reporting in order to provide a better under-
standing of the group’s nancial performance. APMs are
considered as well-know and frequently used by users
of the nancial statements and are also used in internal
reporting and by management to measure operating
performance.
Gross prot / gross margin
Gross prot is dened as Total operating income
minus the cost of goods sold (COGS). The gross prot
represents revenue that the group retains after incurring
the direct costs associated with the purchase of the
goods. Gross margin is dened as gross prot divided
by total revenue and is useful for benchmarking direct
costs associated with the purchase of the goods vs total
revenues.
Opex
Operating expenses (Opex) is the sum of employee
benets expense and other operating expenses. It is
useful to look at cost of these two components
combined, as they compose a large part of the xed
operating costs. The Opex-to-sales ratio divides the
Opex by Total operating income and is useful for
benchmarking this cost base vs the development in
sales.
EBITDA / EBITDA margin
EBITDA is earnings before interests, tax, depreciation
of property, plant and equipment and right-of-use assets
and amortisation of other intangibles. EBITDA is a
well-known and widely used term among users of the
nancial statements and is useful when evaluating
operational efciency on a more variable cost basis as
they exclude amortisation and depreciation expense
related to capital expenditure. EBITDA margin is
EBITDA divided by Total operating income and is useful
for benchmarking this protability parameter vs the
development in sales.
EBIT
EBIT is earnings before interest and taxes and is the
same as the IFRS denition of operating prot. EBIT is a
well-known and widely used term among the users of
the nancial statements and is useful when evaluating
operational protability. EBIT margin is EBIT divided by
Total operating income, and thus the same as Operating
prot divided by Total operating income.
Working capital
Net change in working capital is the sum of change in
inventories and trade receivables and change in other
receivables less the sum of change in accounts payable
and other current liabilities. Net change in working
capital is a well-known and widely used term among the
users of the nancial statements and is useful for
measuring the group’s liquidity, operational efciency
and short-term nancial conditions.
Capital expenditure
Capital expenditure (Capex) is the sum of purchases
of xed assets and intangible assets as used in the
cash ow. Capex is a well-known and widely used term
among the users of the nancial statements and is a
useful measure of investments made in the operations
when evaluating the capital intensity.
FY 2022 FY 2021
Employee benets expense
1,295 1,230
+ Other operating expenses
836 743
= OPEX 2,132 1,973
Opex-to-sales ratio
23.6% 22.8%
(Amounts in NOK million)
FY 2022 FY 2021
Change in Inventory
(345) (185)
Change in accounts receivable
and other current receivables
(28) (17)
Change in accounts payable
and other current debt
26 139
Decrease/(increase) in nancial assets
at fair value through prot og loss
(26) (76)
Net change in working capital
(374) (139)
(Amounts in NOK million)
Definitions of Alternative Performance Measures (APM)
FY 2022 FY 2021
Purchases of xed asets
85 97
Purchases of intangible assets
58 32
= Capital expenditure
143 131
(Amounts in NOK million)
FY 2022 FY 2021
Operating prot
1,440 1,512
+ Depreciation
611 571
= EBITDA 2,051 2,083
EBITDA margin
22.8% 24.1%
(Amounts in NOK million)
(Amounts in NOK million)
FY 2022 FY 2021
Total operating income
9,016 8,648
- Cost of goods sold
4,833 4,592
= Gross prot 4,183 4,056
Gross margin
46.4% 46.9%
137
Financial debt
Financial debt is the sum of borrowings and lease
liabilities. Financial debt is useful to see total debt as
dened by IFRS.
Cash and liquidity reserves
Cash liquidity reserves is dened as available cash
plus available liquidity through overdraft and credit
facilities. This measure is useful to see total funds
available short term.
Equity ratio
Equity ratio is a nancial ratio indicating the relative
proportion of equity used to nance a company’s
assets; calculated as equity divided by total assets.
Equity ratio is a well-known and widely used term
among the users of the nancial statements and is
useful when evaluating nancial robustness.
Total chain sales
Total chain sales are sales from all chain stores, that
is both directly operated and franchise stores. This KPI
is an important measure of the performance of the total
Europris chain and considered useful in order to under-
stand the development of the entire chain, regardless of
ownership structure of stores.
Denition of other terms used
Directly operated store
Directly operated store means a store
owned and directly operated by the group.
Franchise store
Franchise store means a store operated
by a franchisee under a franchise agreement
with the group.
Chain
Chain means the sum of directly operated
stores and franchise stores under the Europris
brand name.
Like-for-like sales growth
Like-for-like growth is dened as the growth in total
Europris chain sales for stores that have been open
for every month of both the previous and the current
calendar year.
FY 2022 FY 2021
Sales directly operated stores
7,519 7,438
Sales franchise stores
1,066 1,131
= Total chain sales
8,586 8,569
(Amounts in NOK million)
FY 2022 FY 2021
Borrowings
1,085 1,092
Current borrowings
5 5
Lease liabilities
2,015 1,914
= Financial debt
3,105 3,010
(Amounts in NOK million)
Definitions of Alternative Performance Measures (APM)
FY 2022 FY 2021
Cash
464 570
+ Total facilities
1,435 1,425
- Total drawn
(3) (15)
= Cash and liquidity reserves
1,896 1,981
(Amounts in NOK million)
FY 2022 FY 2021
Total shareholder´s equity
3,283 2,889
Total assets
9,225 8,639
= Equity ratio
35.6% 33.4%
(Amounts in NOK million)
138
BDO AS
Munkedamsveien 45
PO Box
1704 Vika
0121 Oslo
Norway
BDO AS, a Norwegian limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms
part of the international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT. Page 1 of 5
Independent Auditor's Report
To the Annual Shareholders meeting of Europris ASA
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Europris ASA.
The financial statements comprise:
• The financial statements of the parent
company, which comprise the balance
sheet as at 31 December 2022, income
statement, statement of
comprehensive income, statement of
changes in equity and cash flows for
the year then ended, and notes to the
financial statements, including a
summary of significant accounting
policies, and
• The financial statements of the group,
which comprise the balance sheet as at
31 December 2022, and income
statement, statement of
comprehensive income, statement of
changes in equity and cash flows for
the year then ended, and notes to the
financial statements, including a
summary of significant accounting
policies.
In our opinion:
• The financial statements comply with
applicable statutory requirements,
• The accompanying financial statements
give a true and fair view of the
financial position of the company as at
31 December 2022, and its financial
performance and its cash flows for the
year then ended in accordance with
simplified application of international
accounting standards according to
section 3-9 of the Norwegian
Accounting Act.
• The accompanying financial statements
give a true and fair view of the
financial position of the group as at 31
December 2022, and its financial
performance and its cash flows for the
year then ended in accordance with
International Financial Reporting
Standards as adopted by the EU.
Our opinion is consistent with our additional
report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and
the Group as required by relevant laws and regulations in Norway and International Ethics Standards
Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements.We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
BDO AS
Munkedamsveien 45
PO Box 1704 Vika
0121 Oslo
Norway
BDO AS, a Norwegian limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms
part of the international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT. Page 1 of 5
Independent Auditor's Report
To the Annual Shareholders meeting of Europris ASA
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of Europris ASA.
The financial statements comprise:
• The financial statements of the parent
company, which comprise the balance
sheet as at 31 December 2022, income
statement, statement of
comprehensive income, statement of
changes in equity and cash flows for
the year then ended, and notes to the
financial statements, including a
summary of significant accounting
policies, and
• The financial statements of the group,
which comprise the balance sheet as at
31 December 2022, and income
statement, statement of
comprehensive income, statement of
changes in equity and cash flows for
the year then ended, and notes to the
financial statements, including a
summary of significant accounting
policies.
In our opinion:
• The financial statements comply with
applicable statutory requirements,
• The accompanying financial statements
give a true and fair view of the
financial position of the company as at
31 December 2022, and its financial
performance and its cash flows for the
year then ended in accordance with
simplified application of international
accounting standards according to
section 3-9 of the Norwegian
Accounting Act.
• The accompanying financial statements
give a true and fair view of the
financial position of the group as at 31
December 2022, and its financial
performance and its cash flows for the
year then ended in accordance with
International Financial Reporting
Standards as adopted by the EU.
Our opinion is consistent with our additional
report to the Audit Committee.
Basis for Opinion
We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company and
the Group as required by relevant laws and regulations in Norway and International Ethics Standards
Board for Accountants’ International Code of Ethics for Professional Accountants (including
International Independence Standards) (IESBA Code), and we have fulfilled our other ethical
responsibilities in accordance with these requirements.We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion.
139
BDO AS, a Norwegian limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms
part of the international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT. Page 2 of 5
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of Europris ASA for 7 years from the election by the general meeting of
the shareholders on May 13, 2016 for the accounting year 2022.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Description of the key audit matter How the key audit matter was addressed in
the audit
Valuation of inventory
Inventory amounts to NOK 2 384 million in the
Financial Statements for 2022. We refer to
note 20 for more information on provisions for
impairment on inventory.
Inventory is measured at the lower of cost and
net realisable value. When determining the
provisions for impairment on inventory,
judgements are applied to assess the items
which may be ultimately sold below cost due to
reduced customer demand, and in estimating
the net realisable value of these items.
Different categories are assessed individually
and are subject to specific provisions for
impairment based on information of historical
and statistical sales data. These assessments
are also based on management’s expectations
for future sales.
The complexity and the judgements involved
has led us to define this as a high risk area for
the audit.
We have reviewed management’s policy for
assessing the impairment of inventory and that
management applies the impairment policies
consistently year on year. We have also
reviewed the documentation of obsolescence
for both inventory in stores and in central
warehouse, and evaluated the assumptions
used, for reasonableness. We have also tested
the arithmetical accuracy of the Group’s
calculation of the profit margin on older goods.
Our audit procedures included observing the
stocktaking in a selection of stores and
reviewing internal controls and procedures as
well as performing re-counts. We have also
tested internal controls and procedures related
to stocktaking at the central warehouse. In
addition, we tested the calculation of cost of
goods sold.
Valuation of intangible assets
Intangible assets include goodwill and
trademarks, amounting to NOK 2 191 million
and NOK 591 million respectively. We refer to
note 12 for more information.
Our
audit procedures included, among others,
reviewing management’s documentation of the
group’s impairment assessment for intangible
assets.
BDO AS, a Norwegian limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms
part of the international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT.
Page 2 of 5
To the best of our knowledge and belief, no prohibited non-audit services referred to in the Audit
Regulation (537/2014) Article 5.1 have been provided.
We have been the auditor of Europris ASA for 7 years from the election by the general meeting of
the shareholders on May 13, 2016 for the accounting year 2022.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in
our audit of the financial statements of the current period. These matters were addressed in the
context of our audit of the financial statements as a whole, and in forming our opinion thereon, and
we do not provide a separate opinion on these matters.
Description of the key audit matter
How the key audit matter was addressed in
the audit
Valuation of inventory
Inventory amounts to NOK 2 384 million in the
Financial Statements for 2022. We refer to
note 20 for more information on provisions for
impairment on inventory.
Inventory is measured at the lower of cost and
net realisable value. When determining the
provisions for impairment on inventory,
judgements are applied to assess the items
which may be ultimately sold below cost due to
reduced customer demand, and in estimating
the net realisable value of these items.
Different categories are assessed individually
and are subject to specific provisions for
impairment based on information of historical
and statistical sales data. These assessments
are also based on management’s expectations
for future sales.
The complexity and the judgements involved
has led us to define this as a high risk area for
the audit.
We have reviewed management’s policy for
assessing the impairment of inventory and that
management applies the impairment policies
consistently year on year. We have also
reviewed the documentation of obsolescence
for both inventory in stores and in central
warehouse, and evaluated the assumptions
used, for reasonableness. We have also tested
the arithmetical accuracy of the Group’s
calculation of the profit margin on older goods.
Our audit procedures included observing the
stocktaking in a selection of stores and
reviewing internal controls and procedures as
well as performing re-counts. We have also
tested internal controls and procedures related
to stocktaking at the central warehouse. In
addition, we tested the calculation of cost of
goods sold.
Valuation of intangible assets
Intangible assets include goodwill and
trademarks, amounting to NOK 2 191 million
and NOK 591 million respectively. We refer to
note 12 for more information.
Our audit procedures included, among others,
reviewing management’s documentation of the
group’s impairment assessment for intangible
assets.
140
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part of the international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT. Page 3 of 5
Under IFRS, the Group is required to test the
amount of intangible assets for impairment
annually.
The impairment test was significant to our
audit due to the complexity of the assessment
process and the significant judgements and
assumptions involved. The impairment test is
based on a value in use calculation for defined
cash generating units. Value in use is
calculated based on a pre-tax free cash flow
and discounted with a pre-tax WACC.
We have reviewed the methodology used and
assessed the WACC against the criteria in IAS
36. We have also compared the cash-flows used
in the impairment test with the Group’s budget
and business plan and considered if there are
factors indicating that these estimates are not
realistic. We also tested the arithmetical
accuracy of the calculations in the impairment
test.
We have involved our internal valuation
experts to assist us in evaluating the
assumptions and methodologies applied by the
Group.
Other information
The Board of Directors and the Managing Director (management) is responsible for the other
information. The other information comprises the Board of Directors’ report and other information
in the Annual Report, but does not include the financial statements and our auditor’s report
thereon. Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the consolidated financial statements or our knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we have performed, 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.
Opinion on the Board of Director’s report
Based on our knowledge obtained in the audit, in our opinion the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Our opinion on the Board of Director’s report applies correspondingly for the statements on
Corporate Governance and Corporate Social.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair
view, for in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and for the preparation and fair presentation of the financial
statements of the group in accordance with International Financial Reporting Standards as adopted
by the EU, and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
BDO AS, a Norwegian limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms
part of the international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT. Page 3 of 5
Under IFRS, the Group is required to test the
amount of intangible assets for impairment
annually.
The impairment test was significant to our
audit due to the complexity of the assessment
process and the significant judgements and
assumptions involved. The impairment test is
based on a value in use calculation for defined
cash generating units. Value in use is
calculated based on a pre-tax free cash flow
and discounted with a pre-tax WACC.
We have reviewed the methodology used and
assessed the WACC against the criteria in IAS
36. We have also compared the cash-flows used
in the impairment test with the Group’s budget
and business plan and considered if there are
factors indicating that these estimates are not
realistic. We also tested the arithmetical
accuracy of the calculations in the impairment
test.
We have involved our internal valuation
experts to assist us in evaluating the
assumptions and methodologies applied by the
Group.
Other information
The Board of Directors and the Managing Director (management) is responsible for the other
information. The other information comprises the Board of Directors’ report and other information
in the Annual Report, but does not include the financial statements and our auditor’s report
thereon. Our opinion on the financial statements does not cover the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information and, in doing so, consider whether the other information is materially inconsistent with
the consolidated financial statements or our knowledge obtained in the audit or otherwise appears
to be materially misstated. If, based on the work we have performed, 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.
Opinion on the Board of Director’s report
Based on our knowledge obtained in the audit, in our opinion the Board of Directors’ report
• is consistent with the financial statements and
• contains the information required by applicable statutory requirements.
Our opinion on the Board of Director’s report applies correspondingly for the statements on
Corporate Governance and Corporate Social.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
Management is responsible for the preparation of financial statements that give a true and fair
view, for in accordance with the Norwegian Accounting Act and accounting standards and practices
generally accepted in Norway, and for the preparation and fair presentation of the financial
statements of the group in accordance with International Financial Reporting Standards as adopted
by the EU, and for such internal control as management determines is necessary to enable the
preparation of financial statements that are free from material misstatement, whether due to fraud
or error.
141
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In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern.
The financial statements of the Company use the going concern basis of accounting insofar as it is
not likely that the enterprise will cease operations. The financial statements of the Group use the
going concern basis of accounting unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
For further description of Auditor’s Responsibilities for the Audit of the Financial Statements
reference is made to:
https://revisorforeningen.no/revisjonsberetninger
Report on compliance with Regulation on European Single Electronic Format (ESEF)
Opinion
We have performed an assurance engagement to obtain reasonable assurance that the financial
statements with file name Europrisasa-2022-12-31-en.zip have been prepared in accordance with
Section 5-5 of the Norwegian Securities Trading Act (Verdipapirhandelloven) and the accompanying
Regulation on European Single Electronic Format (ESEF).
In our opinion, the financial statements have been prepared, in all material respects, in accordance
with the requirements of ESEF.
Management’s Responsibilities
Management is responsible for preparing, tagging and publishing the financial statements in the
single electronic reporting format required in ESEF. This responsibility comprises an adequate
process and the internal control procedures which management determines is necessary for the
preparation, tagging and publication of the financial statements.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the
ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger
BDO AS, a Norwegian limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms
part of the international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT. Page 4 of 5
In preparing the financial statements, management is responsible for assessing the Company’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern.
The financial statements of the Company use the going concern basis of accounting insofar as it is
not likely that the enterprise will cease operations. The financial statements of the Group use the
going concern basis of accounting unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s
report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a
guarantee that an audit conducted in accordance with ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered
material if, individually or in the aggregate, they could reasonably be expected to influence the
economic decisions of users taken on the basis of these financial statements.
For further description of Auditor’s Responsibilities for the Audit of the Financial Statements
reference is made to:
https://revisorforeningen.no/revisjonsberetninger
Report on compliance with Regulation on European Single Electronic Format (ESEF)
Opinion
We have performed an assurance engagement to obtain reasonable assurance that the financial
statements with file name Europrisasa-2022-12-31-en.zip have been prepared in accordance with
Section 5-5 of the Norwegian Securities Trading Act (Verdipapirhandelloven) and the accompanying
Regulation on European Single Electronic Format (ESEF).
In our opinion, the financial statements have been prepared, in all material respects, in accordance
with the requirements of ESEF.
Management’s Responsibilities
Management is responsible for preparing, tagging and publishing the financial statements in the
single electronic reporting format required in ESEF. This responsibility comprises an adequate
process and the internal control procedures which management determines is necessary for the
preparation, tagging and publication of the financial statements.
Auditor’s Responsibilities
For a description of the auditor’s responsibilities when performing an assurance engagement of the
ESEF reporting, see: https://revisorforeningen.no/revisjonsberetninger
142
This document has been electronically signed, and therefore does not contain a handwritten signature.
BDO AS, a Norwegian limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms
part of the international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT. Page 5 of 5
Oslo, 23 March 2023
BDO AS
Eivin A. Redbo Kjær
State Authorised Public Accountant
BDO AS, a Norwegian limited liability company, is a member of BDO International Limited, a UK company limited by guarantee, and forms
part of the international BDO network of independent member firms. The Register of Business Enterprises: NO 993 606 650 VAT. Page 5 of 5
Oslo, 23 March 2023
BDO AS
Eivin A. Redbo Kjær
State Authorised Public Accountant
143
* Kepler Cheuvreux temporarily ceased to provide coverage in 2023 because the analyst left the company.
Europris ASA was listed on the
Oslo Stock Exchange in 2015
Europris ASA had 14,715 registered shareholders at 31
December 2022. The majority of the company’s shareholders
comprise of Norwegian or foreign institutions, controlling 65.5
per cent of the capital and voting rights. The top three largest
investors in 2022 were Folketrygdfondet, Alfred Berg
Kapitalforvaltning and Fidelity Investments (FMR) with a total
share of 25.6 per cent, see more information in the Europris
ASA consolidated nancial statements note 22.
The company’s shareholders are mainly located in Norway
and the United States, with a total share of 64 per cent and
14 per cent respectively.
The share price closed year-end 2022 at NOK 68.15, which
implies a market value of NOK 11.4 billion. The highest share
price was NOK 70.90 and the lowest was NOK 44.24 in 2022.
An ordinary dividend of NOK 2.50 per share and an additional
dividend of NOK 1.50 per share to reect the strong nancial
performance, was paid out in May 2022.
Analyst coverage
10 equity analysts have covered Europris ASA in 2022:
Europris publishes its quarterly result 07:00 am CET.
The report and presentation will be available at the
company’s web page and at Oslo Stock Exchange
Newsweb.
Share information
Number of shares 166,968,888
Nominal value per share NOK 1.00
Ticker at Oslo Børs EPR
ABG Sundal Collier Petter Nystrøm [email protected]
Arctic Securities Carl Frederick Bjercke [email protected]
Carnegie Eirik Rafdal [email protected]
DNB Markets Ole Martin Westgaard [email protected]
Handelsbanken Capital Markets Nicklas Skogman [email protected]
Kepler Cheuvreux* Markus Borge Heiberg [email protected]
Nordea Kristoffer Pedersen kristoffer[email protected]
Pareto Securities Joachim Huse
Gard Aarvik
[email protected]
[email protected]
SEB Håkon Fuglu [email protected]
Sparebank 1 Markets Øyvind Mossige [email protected]
Shareholder information
Financial calendar
Annual Annual
General General
MeengMeeng
20 April
2023
First First
quarter quarter
20232023
27 April
2023
Second Second
quarter quarter
20232023
13 July
2023
Third Third
quarter quarter
20232023
2 November
2023
80
70
60
50
40
30
20
10
0
Jan Feb Mar April
May
June July Aug Sep Oct Nov Dec
EPR share price development 2022
Distribution of ownership by country 2022
■
Norway
■
Finland
■
United States
■
Germany
■
Sweden
■
Other countries
EUROPRIS ASA ANNUAL REPORT 2022
Europris ASA
Dikeveien 57, P O Box 1421
NO-1661 Rolvsøy
Switchboard: +47 971 39 000
email: [email protected]
www.europris.no
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