HONKARAKENNE OYJ’S FINANCIAL STATEMENTS BULLETIN 1 JANUARY

HONKARAKENNE OYJ                                  FINANCIAL STATEMENTS BULLETIN 2020
18 February 2021 at 9:00 a.m.

HONKARAKENNE OYJ’S FINANCIAL STATEMENTS BULLETIN 1 JANUARY – 31 DECEMBER 2020

Income (internet gross sales) elevated, and adjusted revenue earlier than taxes was on the earlier yr’s stage — the order guide grew considerably within the second half of the yr.

SUMMARY

Honkarakenne’s income (internet gross sales) elevated by EUR 5.Three million and had been 11 per cent larger than within the earlier yr. Adjusted working revenue and adjusted revenue earlier than taxes had been on the similar stage because the yr earlier than. On the finish of 2020 the order guide was EUR 39.Eight million, i.e. 44 per cent larger than on the finish of the earlier yr.

January – December 2020

• The Honkarakenne Group’s income (internet gross sales) for January-December amounted to EUR 52.9 million (EUR 47.5 million in 2019). Income (internet gross sales) elevated by 11% in comparison with the earlier yr.
• The working consequence was EUR 3.1 million (3.4) and the adjusted working consequence was EUR 3.Four million (3.4).
• Revenue earlier than taxes was EUR 2.9 million (3.2) and the adjusted revenue earlier than taxes was EUR 3.2 million (3.2).
• Earnings per share had been EUR 0.48 (0.40).

July – December 2020

• Honkarakenne Group’s income (internet gross sales) for July-December amounted EUR 30.Three million (EUR 25.Eight million in 2019). Income (internet gross sales) elevated by 17% in comparison with the earlier yr.
• Working revenue was EUR 2.1 million (2.6). Adjusted working revenue was EUR 2.Four million (2.6).
• Revenue earlier than taxes was EUR 1.9 million (2.4). Adjusted revenue earlier than taxes was EUR 2.Three million (2.4).
• Earnings per share had been EUR 0.37 (0.31).

The Board of Administrators proposes to the Annual Common Assembly that no dividend be paid for the monetary yr ended 31 December 2020. As well as, the Board of Administrators proposes {that a} reimbursement of capital of EUR 0.18 per share be distributed from the invested unrestricted fairness fund.

Honkarakenne’s outlook is that income (internet gross sales) will enhance in 2021 and revenue earlier than taxes will likely be larger than within the earlier yr.

On the finish of December, the Group’s order guide stood at EUR 39.Eight million, which is 44% larger than the order guide of EUR 27.6 million within the corresponding interval of the earlier yr. The order guide contains orders whose supply date falls inside the subsequent 24 months. Some orders could contain phrases and circumstances regarding financing or constructing permits.

KEY FIGURES	7–12/ 2020	7–12/ 2019	1-12/ 2020	1-12/ 2019
Income (internet gross sales), MEUR	30.3	25.8	52.9	47.5
Working revenue / loss, MEUR	2.1	2.6	3.1	3.4
Adjusted working revenue / loss, MEUR	2.4	2.6	3.4	3.4
Revenue / loss earlier than taxes, MEUR	1.9	2.4	2.9	3.2
Adjusted revenue / loss earlier than taxes, MEUR	2.3	2.4	3.2	3.2
Common variety of workers	171	156	168	155
Common variety of workers in person-years	161	142	153	139
Earnings per share, EUR	0.37	0.31	0.48	0.40
Fairness ratio,%			56	56
Return on fairness,%			21	20
Fairness / share, EUR			2.49	2.14
Gearing ratio,%			-23	-15

Honkarakenne Oyj’s CEO Marko Saarelainen commented on the monetary statements bulletin as follows:

“Honkarakenne’s gross sales have developed effectively regardless of the worldwide pandemic, and that is significantly evident within the excessive quantity of orders. We invested in digital advertising and marketing in our predominant market areas, and efficiently changed conventional buyer interplay in gross sales with communication through digital channels and distant connections. The order guide on the finish of 2020 was virtually EUR 40 million, i.e. 44 per cent larger than a yr earlier than.

Income (internet gross sales) from Finland elevated. Each our client enterprise and mission enterprise grew. Curiosity is constantly rising in logs as a constructing materials and their use has clearly elevated at mission and area-plan development websites. We additionally invested in creating our collections and launched new, spectacular flagship fashions.

Income (internet gross sales) when it comes to exports remained on the similar stage as within the earlier yr. The pandemic had a unfavourable impact on export markets throughout many of the yr. Exercise at mission websites repeatedly floor to a halt as a result of consequent closures and restrictions. The unfavourable results had been most pronounced in Asia, significantly China and Japan. Constructive efficiency on the Russian market was gratifying. Income (internet gross sales) in Russia had been larger than within the earlier yr.

In analysis and growth, we centered on creating fireplace security options and fashions for public buildings and integrating a wise constructing system with an HVAC system for log homes. Manufacturing growth on the Karstula plant continued all year long and a brand new manufacturing line was launched in December regardless of delays attributable to the pandemic.”

REVENUE (NET SALES)

In 2020, the Honkarakenne Group’s income (internet gross sales) elevated by 11 per cent to EUR 52.9 million (47.5). The Group’s income (internet gross sales) within the second half of 2020 elevated by 17 per cent to EUR 30.Three million (25.8).

Geographical breakdown of income (internet gross sales):

DEVELOPMENT IN REVENUE (NET SALES)
Breakdown of income (internet gross sales), %	1-12 /2020	1-12 /2019
Finland	70%	66%
Export	30%	34%
Whole	100%	100%
Income (internet gross sales), MEUR	7-12 /2020	7-12 /2019	% change	1-12 /2020	1-12 /2019		% change
Finland	20.8	16.8	24%	36.9	31.3		18%
Export	9.5	9.1	5%	16.0	16.3		-2%
Whole	30.3	25.8	17%	52.9	47.5		11%

Finland additionally contains billet gross sales and the sale of course of byproducts for recycling.

Exports embody all different nations besides Finland.

On the finish of December, the Group’s order guide was 44% larger than a yr earlier than. The order guide was EUR 39.Eight million on the finish of the yr and EUR 27.6 million within the corresponding interval of the earlier yr.

DEVELOPMENT OF PROFIT AND PROFITABILITY

The working consequence for July-December was EUR 2.1 million (2.6) and the consequence earlier than taxes was EUR 1.9 million (2.4). The adjusted working consequence for July-December was EUR 2.Four million (2.6) and the adjusted consequence earlier than taxes was EUR 2.Three million (2.4).

The working consequence for your complete yr 2020 was EUR 3.1 million (3.4) and the consequence earlier than taxes was EUR 2.9 million (3.2). The adjusted working consequence for your complete yr 2020 was EUR 3.Four million (3.4) and the adjusted consequence earlier than taxes was EUR 3.2 million (3.2).

In 2020, adjustment objects amounted to EUR 0.Three million (0.0), consisting of manufacturing reorganisation prices. Reorganisation prices consisted of wage and different personnel prices associated to the discover interval for redundancies.

Revenue growth and profitability had been positively affected by progress in internet gross sales, particularly in Finland and Russia. The annual consequence was burdened by larger advertising and marketing investments and additions to the salaried workers of organisation.

FINANCING AND INVESTMENT

On the finish of the evaluate interval, Honkarakenne’s monetary place was sturdy, with the Group’s fairness ratio being 56% (56%). The gearing ratio was unfavourable and was -23% (-15%). The Group’s internet monetary liabilities had been EUR -3.3 (-1.9) million, i.e. the Group’s liquid property exceeded monetary liabilities. Liquid property amounted to EUR 7.Zero million (7.1). As well as, the Group has an overdraft facility of EUR 3.0 (4.5) million, which was not in use on the finish of this monetary yr or the earlier monetary yr.

In 2020, the corporate continued with the manufacturing line modernisation begun within the earlier yr, which was mirrored in investments. Progress was made with this funding regardless of delays, as a result of pandemic, within the supply and set up of apparatus for the brand new manufacturing line. The renewed manufacturing line started working in late 2020. Some further investments will likely be made within the new line in 2021. Investments in manufacturing have obtained help from the European Regional Growth Fund (ERDF) and the Sustainable Development and Jobs 2014-2020 – Finnish Structural Funds programme.

The Group’s gross investments in 2020 had been EUR 4.1 million (3.2), excluding right-of-use property in accordance with IFRS 16 and obtained funding grants. The most important investments had been made in creating manufacturing, and the corporate developed a number of techniques for streamlining operations.

PRODUCTS AND MARKET AREAS

Income (internet gross sales) developed positively in Finland. Each full-year, and second-half income (internet gross sales) specifically, grew considerably in comparison with the earlier yr. Each our client enterprise and mission enterprise grew. Curiosity has continued to develop in logs as a constructing materials, which could be seen within the more and more frequent choice for logs on housing cooperative and vacation house development websites. As well as, tenders for varsity development more and more contain log buildings. There’s clear progress in wooden development, which has additionally been taken into consideration in zoning. We added spectacular flagship fashions and environment friendly room format and residential options to our assortment. In Finland, advertising and marketing centered on influencer advertising and marketing, specifically, and digital advertising and marketing was developed. Growth of each service packages and the supplier community continued. The tip-of-year order guide in Finland was considerably larger than a yr earlier than.

In exports, full-year income (internet gross sales) decreased by 2 per cent, however income (internet gross sales) within the second half of the yr had been 5 per cent larger than for 2019. All market areas had been affected all through many of the yr by the coronavirus epidemic, with some mission websites being repeatedly dropped at a standstill by the associated closures and restrictions. The unfavourable results had been most pronounced in Asia, significantly China and Japan. The Russian market developed higher than anticipated and income (internet gross sales) in Russia had been larger than within the earlier yr. By way of advertising and marketing, we developed our digital advertising and marketing, and in gross sales changed our conventional buyer interplay with contacts through digital channels and distant connections. Regardless of the coronavirus, export order volumes had been considerably larger than within the previous yr.

SEASONAL NATURE OF OUR BUSINESS

Honkarakenne operates in a clearly seasonal trade. In Finland specifically, development is concentrated in the summertime season, with extra deliveries in the summertime and autumn than within the winter season. The corporate makes use of numerous advertising and marketing measures and export actions to steadiness seasonality.

In 2020, Honkarakenne performed co-operation negotiations in preparation for the differences due to the season typical of the trade. It was agreed that workers would work shorter weeks.

RESEARCH AND DEVELOPMENT

In analysis and growth, we significantly centered on creating fireplace security options and fashions that allow the development of public buildings from logs, and on options that combine good constructing techniques with HVAC techniques for log homes.

The Group’s R&D expenditure in January-December totalled 0.4% of income (internet gross sales) (0.5%). The Group didn’t capitalise any analysis and growth prices throughout the monetary yr.

EMPLOYEES

Measured in person-years, the Group had a median of 153 workers (139) throughout the yr. This represented a rise of 14 workers in comparison with the corresponding interval of the earlier yr. The Group employed a median of 168 (155) folks in 2020. On the finish of the yr, the Group had 168 (158) workers.

In October 2020, the corporate introduced the beginning of co-operation negotiations associated to a deliberate reorganisation of manufacturing. In December, after the top of the negotiations, the corporate decided on the reorganisation, content material and scope of manufacturing. Throughout the reorganisation, the corporate dismissed 11 workers and subjected 15 employment contracts to redundancy-based provisional modifications.

EXECUTIVE GROUP

There have been a number of modifications within the firm’s govt group in 2020. In Could, the corporate introduced that Vice President, Manufacturing Jari Fröberg was leaving the corporate. In December, it introduced that Jari Noppa, Vice President, Shopper Enterprise, Finland and Sweden, would depart Honkarakenne and Marko Saarelainen, President and CEO, would take cost of gross sales of each home and export operations till additional discover. On the similar time, in December, the corporate introduced that Plant Supervisor Juha-Matti Hanhikoski (36) had been appointed Honkarakenne’s Vice President, Manufacturing and a member of the Government Group.

On the finish of 2020, Honkarakenne’s Government Group consisted of: Marko Saarelainen, President and CEO; Leena Aalto, Vice President, Finance – CFO; Juha-Matti Hanhikoski, Vice President, Manufacturing; and Sanna Huovinen, Vice President, Advertising and marketing. In January 2021, Honkarakenne introduced that Vice President, Finance – CFO Leena Aalto was taking over a place with one other organisation. Leena Aalto will proceed as Vice President, Finance – CFO till the top of February 2021.

HONKARAKENNE CORPORATION’S 2020 ANNUAL GENERAL MEETING, BOARD OF DIRECTORS AND AUDITORS

Honkarakenne Oyj’s Annual Common Assembly was held at Honkarakenne’s Tuusula workplace on 29 Could 2020. The Annual Common Assembly accepted the monetary statements of the mother or father firm and the Group and discharged the members of the Board of Administrators and the President and CEO from legal responsibility for 2019. The Annual Common Assembly determined that no dividend be distributed for the monetary yr 2019. As well as, the Annual Common Assembly determined {that a} reimbursement of capital of EUR 0.12 per share be distributed from the invested unrestricted fairness fund.

Timo Kohtamäki, Arimo Ristola, Helena Ruponen, Kari Saarelainen and Kyösti Saarimäki had been re-elected to the corporate’s Board of Administrators. On the Board’s inaugural assembly, Arimo Ristola was elected Chairman of the Board. On the similar assembly, the Board determined to not arrange committees.

Ernst & Younger Oy was re-elected because the auditor, with Elina Laitinen, Authorised Public Accountant, because the principal auditor.

AUTHORISATIONS OF THE BOARD OF DIRECTORS

On 29 Could 2020, the Annual Common Assembly determined that the Board of Administrators be authorised to purchase again a most of 400,000 of the corporate’s personal B shares with the corporate’s unrestricted fairness. As well as, the Annual Common Assembly authorised the Board of Administrators to resolve on a share situation, both in opposition to fee or freed from cost, and the issuance of particular rights, entitling to shares referred to in Chapter 10, Part 1 of the Restricted Legal responsibility Corporations Act, in a number of tranches. Pursuant to the authorisation, the Board of Administrators could situation new shares and/or get rid of a most of 1,500,000 of the outdated class B shares held by the corporate, together with these shares that could be issued below particular rights. Nonetheless, each of those authorisations shall be legitimate till the subsequent Annual Common Assembly, however expire on 30 June 2021 on the newest.

SHARES, SHARE CAPITAL AND TREASURY SHARES

Throughout the evaluate interval, Honkarakenne Oyj’s whole variety of shares was 6,211,419 of which 300,096 are Class A shares and 5,911,323 had been Class B shares. The corporate’s share capital didn’t change and was EUR 9,897,936.00. Every Class B share confers one (1) vote and every Class A share confers twenty (20) votes, so the full variety of votes conferred by all Honkarakenne shares throughout the evaluate interval was 11,913,243.

Honkarakenne’s Class B shares are listed on Nasdaq Helsinki Oy’s Small Cap listing below the buying and selling image HONBS. The best worth of the listed B share was EUR 4.43, the bottom EUR 2.32 and the closing worth for the evaluate interval was EUR 4.28. The buying and selling worth of the B share was EUR 10.5 million and the buying and selling quantity was 2.9 million shares.

Honkarakenne didn’t purchase any of its personal shares throughout the evaluate interval. In June, Honkarakenne transferred 15,000 of the corporate’s Class B shares to the corporate’s President and CEO as a part of the President and CEO’s 2019 efficiency bonus. On the finish of the evaluate interval, the Group held 349,385 of its personal Class B shares with an acquisition worth of EUR 1,309,260.25. Personal shares account for five.62% of all the corporate’s shares and a pair of.93% of all votes. The acquisition price has been deducted from shareholders’ fairness within the consolidated monetary statements.

FLAGGING NOTIFICATIONS

Throughout the monetary yr 2020, Honkarakenne obtained a notification pursuant to Chapter 9, Part 5 of the Securities Markets Act, in keeping with which the variety of Honkarakenne Oyj shares owned by Saarelainen Oy had elevated to greater than 10 p.c on 29 Could 2020.

CORPORATE GOVERNANCE

In 2020, Honkarakenne Oyj complied with the Finnish Company Governance Code 2020 issued by the Finnish Securities Market Affiliation. Extra data on company governance is out there on the corporate’s web site at www.honka.fi.

SHORT-TERM RISKS AND UNCERTAINTIES

Demand for Honkarakenne’s merchandise is considerably affected by basic financial growth, trade charges and client confidence in family funds, in addition to competitors within the trade. If demand falls sharply, it could have a big affect on the corporate’s earnings growth.

The coronavirus pandemic is inflicting uncertainty in the entire firm’s market areas. The length of the uncertainty attributable to the coronavirus pandemic, and its mixed results on enterprise, are tough to evaluate, however the pandemic could have vital results on Honkarakenne’s enterprise.

Valuation of things on the steadiness sheet is predicated on the administration’s present estimates. If these estimates change, this may occasionally have an effect on the corporate’s consequence.

REPORTING

This launch accommodates forward-looking statements which can be based mostly on the assumptions at present recognized to the corporate’s administration and on the administration’s present choices and plans. Though the administration believes that its forward-looking assumptions are cheap, there isn’t a assurance that they’ll show to be right.

The monetary statements bulletin has not been audited and the figures offered are unaudited.

Figures in parentheses check with the corresponding interval a yr earlier, except in any other case acknowledged.

Honkarakenne studies in accordance with the European Securities and Markets Authority’s (ESMA) suggestion on different key ratios (APM).  An alternate key ratio is a monetary ratio that’s totally different from a monetary ratio outlined or designated in IFRS. The time period “adjusted” is due to this fact used as a substitute of the earlier time period “excluding non-recurring objects”. The corporate classifies vital transactions considered affecting the comparability between reporting durations as adjustment objects. These embody, however are usually not restricted to, vital restructuring prices, vital impairment losses or reversals, vital positive aspects and losses on disposals of property, or different vital revenue or bills which can be totally different from extraordinary actions.

This bulletin has been ready in accordance with IAS 34. The discharge needs to be learn along side the 2019 monetary statements. The monetary statements for 2020 have been ready in accordance with the identical accounting rules because the annual monetary statements for 2019, apart from the requirements and interpretations that got here into power on or after 1 January 2020. The revised requirements and interpretations that got here into power on 1 January 2020 haven’t had a big impact on the figures offered throughout the evaluate interval.

EVENTS AFTER THE FINANCIAL YEAR

In January 2021, Honkarakenne introduced that Vice President, Finance – CFO Leena Aalto was taking over a place with one other organisation. Leena Aalto will proceed as Vice President, Finance – CFO till the top of February 2021.

Honkarakenne has no different vital reportable occasions after the monetary yr.

BOARD OF DIRECTORS’ PROPOSAL FOR THE DISTRIBUTION OF PROFITS

The mother or father firm has no distributable earnings, however the mother or father firm’s distributable fairness is EUR 4.2 million. The mother or father firm’s revenue for the monetary yr is EUR 2.Eight million.

The Board of Administrators proposes to the Annual Common Assembly that no dividend be paid for the monetary yr ended 31 December 2020. As well as, the Board of Administrators proposes {that a} reimbursement of capital of EUR 0.18 per share be distributed from the invested unrestricted fairness fund.

OUTLOOK FOR 2021

Honkarakenne’s outlook is that income (internet gross sales) will enhance in 2021 and revenue earlier than taxes will likely be larger than within the earlier yr.

GROUNDS FOR THE OUTLOOK

The corporate’s view of developments in 2021 is predicated on the prevailing order quantity and its view of market growth, in addition to the event measures taken within the firm.

GENERAL MEETING

Honkarakenne Oyj’s Annual Common Assembly will likely be held on Friday, 16 April 2021 at 2 p.m.

HONKARAKENNE OYJ

Board of Administrators

For extra data:

Marko Saarelainen, President and CEO, tel. +358 (0)40 542 0254, [email protected] or
Leena Aalto, Vice President, Finance – CFO, tel. +358 (0)40 769 4590, [email protected]

This and former releases could be discovered on the corporate’s web site www.honka.com/en/traders/.

Honkarakenne will publish the Board of Administrators’ report and monetary statements for 2020 in its entirety and a separate company governance assertion in week 12 on the newest, on the corporate’s web site at www.honka.fi. The half-year report for 2021 will likely be printed on 26 August 2021.

DISTRIBUTION
Nasdaq Helsinki Oy
Foremost media
Monetary supervision
www.honka.com

Honkarakenne Ltd provides high-quality, wholesome and ecological log properties, vacation properties and public buildings. Its buildings are constructed from Finnish stable wooden below the Honka® model. The corporate has delivered 85,000 buildings to over 50 nations. We manufacture our house packages in Finland, at our personal manufacturing facility situated in Karstula. In 2020, Honkarakenne Group’s consolidated internet gross sales totalled EUR 52.9 million, of which exports accounted for 30%. www.honka.com

 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Unaudited	7-12 /2020	7-12 /2019	1-12 /2020	1-12 /2019
MEUR
Income (internet gross sales)	30.3	25.8	52.9	47.5
Different working revenue	0.3	0.2	0.5	0.4
Change in inventories	-0.8	-1.5	0.1	-0.2
Work carried out for personal functions and capitalised	0.0	0.0	0.0	0.0
Supplies and companies	-19.8	-14.9	-34.6	-30.0
Worker profit bills	-4.9	-4.0	-9.3	-8.3
Depreciations and amortisation	-0.9	-1.0	-1.8	-1.8
Impairment	0.0	0.0	0.0	0.0
Different working bills	-2.1	-2.0	-4.7	-4.2
Working revenue/loss	2.1	2.6	3.1	3.4
Monetary revenue	0.1	0.0	0.1	0.1
Monetary bills	-0.2	-0.2	-0.3	-0.3
Share of revenue/loss in associates	0.0	-0.1	0.0	0.0
Revenue/loss earlier than taxes	1.9	2.4	2.9	3.2
Taxes	0.2	-0.6	-0.1	-0.9
Revenue/loss for the interval	2.1	1.8	2.8	2.3
Different complete revenue:
Translation variations	-0.1	0.0	-0.1	0.1
Whole complete revenue for the interval	2.1	1.8	2.8	2.4
Consequence for the interval attributable to
Fairness holders of the mother or father	2.1	1.8	2.8	2.3
Non-controlling curiosity	0.0	0.0	0.0	0.0
	2.1	1.8	2.8	2.3
Complete revenue attributable to
Fairness holders of the mother or father	2.1	1.8	2.8	2.4
Non-controlling curiosity	0.0	0.0	0.0	0.0
	2.1	1.8	2.8	2.4
Calculated from the consequence for the interval attributable to fairness holders of mother or father Earnings/share (EPS):
Fundamental, EUR	0.37	0.31	0.48	0.40
Diluted, EUR	0.37	0.31	0.48	0.40

Honkarakenne Oyj has two sequence of shares: A shares and B shares, which have totally different proper to dividend. Revenue distribution of 0.20 EUR per share will likely be paid first for B shares, then 0.20 EUR per share for A shares, adopted by equal distribution of remaining revenue distribution between all shares.     

 

    

CONSOLIDATED STATEMENT OF FINANCIAL POSITION Unaudited	31.12.2020	31.12.2019
MEUR
Belongings
Non-current property
Property, plant and gear	13.7	11.6
Goodwill	0.1	0.1
Different intangible property	0.5	0.3
Investments in related firms	0.3	0.3
Receivables	0.1	0.1
Deferred tax property	1.7	1.6
	16.3	14.0
Present property
Inventories	4.6	4.4
Commerce and different receivables	4.3	2.4
Earnings tax receivables	0.4	0.0
Money and money equivalents	7.0	7.1
	16.3	13.9
Whole property	32.6	27.9
Fairness and liabilities	31.12.2020	31.12.2019
Fairness attributable to homeowners of the mother or father
Share capital	9.9	9.9
Share premium account	0.5	0.5
Invested unrestricted fairness fund	7.3	8.0
Personal shares	-1.3	-1.4
Translation variations	0.1	0.2
Retained earnings	-1.9	-4.7
	14.6	12.5
Non-controlling pursuits	0.0	0.0
Whole fairness	14.6	12.5
Non-current liabilities
Deferred tax legal responsibility	0.2	0.1
Provisions	0.3	0.2
Monetary liabilities	3.0	4.4
	3.4	4.7
Present liabilities
Commerce and different payables	13.5	9.6
Present tax liabilities	0.0	0.1
Provisions	0.4	0.2
Present monetary liabilities	0.8	0.8
	14.6	10.7
Whole liabilities	18.0	15.4
Whole fairness and liabilities	32.6	27.9

STATEMENT OF CHANGES IN EQUITY Abridged Unaudited
EUR thousand	Fairness attributable to homeowners of the mother or father
	a)		b)		c)		d)		e)			f)		Whole		g)			Whole fairness
Whole fairness 1.1.2019	9898		520		8034		102		-1382			-7046		10126		5			10131
Revenue/loss for the interval												2321		2321					2321
Translation variations							63							63					63
Redemption of minority curiosity												5		5		-5			0
Share based mostly incentive scheme												24		24					24
Whole fairness 31.12.2019	9898		520		8034		164		-1382			-4696		12539		0			12539
EUR thousand		Fairness attributable to homeowners of the mother or father
		a)		b)		c)		d)		e)			f)		Whole			g)		Whole fairness
Whole fairness 1.1.2020		9898		520		8034		164		-1382			-4696		12539			0		12539
Revenue/loss for the interval													2814		2814					2814
Translation variations								-54							-54					-54
Return of capital						-703									-703					-703
Share based mostly incentive scheme										72			-45		28					28
Whole fairness 31.12.2020		9898		520		7331		111		-1309			-1927		14623			0		14623

a) Share capital
b) Share premium account
c) Invested unrestricted fairness fund
d) Translation variations
e) Personal shares
f) Retained earnings
g) Non-controlling pursuits

CONSOLIDATED STATEMENT OF CASH FLOWS Abridged Unaudited	1.1.- 31.12.2020	1.1.- 31.12.2019
MEUR
Money stream from working actions	6.0	5.0
Money stream from investing actions, internet	-3.7	-3.1
Whole money flows from financing actions	-2.4	1.1
Proceeds from borrowings	0.0	2.0
Compensation of borrowings	-1.3	-0.5
Different monetary objects	-0.4	-0.4
Return of capital	-0.7	0.0
Change in money and money equivalents	-0.1	3.0
Impact of trade fee modifications	0.1	-0.0
Money and money equivalents originally of the yr	7.1	4.1
Money and money equivalents on the shut of the yr	7.0	7.1

NOTES TO THE REPORT                                                

Accounting insurance policies

This monetary assertion launch has been drafted in accordance with IAS 34. The monetary statements launch needs to be learn along with the 2019 monetary assertion. The monetary statements have been drafted in accordance with the identical accounting rules utilized within the 2019 monetary statements, aside from requirements and interpretations which have come into power on 1 January 2020 or thereafter. The impact of recent requirements and interpretations is described in additional element under below “new requirements and interpretations.”

This monetary assertion launch has not been audited and the figures haven’t been examined by the auditor.

The figures offered within the launch have been rounded, so the sum of particular person figures could differ from the quantity proven.

Except in any other case acknowledged, figures in parentheses check with the corresponding interval of the earlier yr.

New requirements and interpretations

New requirements and interpretations which have come into power on 1 January 2020 or thereafter haven’t affected the figures offered throughout the evaluate interval.

Various Efficiency Measures

Honkarakenne complies with the Pointers on Various Efficiency Measures (APM) issued by the European Securities and Markets Authority (ESMA).  An APM is a monetary measure of efficiency aside from a monetary measure outlined or laid out in IFRS. Because of this, the time period “adjusted” is used as a substitute of “with out non-recurring objects”. As adjustment objects, the corporate classifies vital enterprise transactions which can be thought of to have an effect on comparisons between totally different reporting durations. Such transactions embody vital reorganisation bills, vital impairment losses or reversals thereof, vital capital positive aspects and losses on property, and different vital non-customary revenue or bills.

In Honkarakenne’s view, Various Efficiency Measures present vital further data to administration, traders, securities analysts and different events on Honkarakenne’s results of operations, monetary place and money flows, and are incessantly utilized by analysts, traders and different events. Return on fairness, fairness ratio, internet monetary liabilities and gearing are offered as supplementary key figures, as within the firm’s view they’re helpful indicators for assessing Honkarakenne’s capability to amass financing and pay its money owed. As well as, gross investments and R&D expenditure present further data on wants associated to Honkarakenne’s money stream from working actions.

Segments

From the start of 2020, Honkarakenne has two geographical working segments that will likely be mixed into one reportable section. Geographically, gross sales are divided as follows: Finland and Exports. The inner reporting of the administration is in step with IFRS reporting. Because of this, separate reconciliations are usually not offered.

Different notes to the report

Occasions with associated events

The Group’s associated events include subsidiaries and related firms; the corporate’s administration and any firms during which they exert affect; and people concerned within the Saarelainen shareholder settlement and any firms managed by them. The administration personnel thought of to be associated events comprise the Board of Administrators, President & CEO, and the corporate’s Government Group. The pricing of products and companies in transactions with associated events conforms to market-based pricing.

Throughout the monetary yr, extraordinary enterprise transactions with associated events had been made as follows: gross sales of products and companies to associated events amounted to MEUR 0.2 (MEUR 0.2) ) and purchases from associated events to MEUR 0.4 (MEUR 0.5). Monetary statements of the Group embody MEUR 0.0 (MEUR 0.0) liabilities to associated events and MEUR 0.1 (MEUR 0.0) receivables from associated events. In 2020 or 2019 no unhealthy money owed had been recognised from associated events.

In 2010 and 2011, the mother or father firm Honkarakenne Oyj granted a long-term mortgage whole of MEUR 0.9 to Honka Administration Oy. The mother or father firm has made write-offs of MEUR 0.Three in 2018 on this mortgage, however the write-offs was reversed in 2019. The write-offs or reverse of write-offs had no impact on the consolidated monetary statements.

Property, plant and gear
Unaudited
MEUR	31.12.2020	31.12.2019
Price 1.1.	47.5	49.1
Enhance	3.8	5.4
Disposals	-0.3	-6.9
Price 31.12.	51.0	47.5
Amassed depreciation 1.1.	-35.9	-41.0
Amassed depreciation of disposals	0.2	6.9
Depreciation for the interval	-1.6	-1.8
Amassed depreciation 31.12.	-37.3	-35.9
Carrying quantity 1.1.	11.6	8.1
Carrying quantity 31.12.	13.7	11.6

Personal shares

Honkarakenne has not acquired its personal shares throughout the report interval. In June, Honkarakenne transferred 15,000 of the corporate’s Class B shares to the corporate’s President and CEO as a part of the President and CEO’s 2019 efficiency bonus. On the finish of the report interval, the Group held 349,385 of its Honkarakenne Class B shares with a complete buy worth of EUR 1,309,260.25. These shares symbolize 5.62% of the corporate’s all shares and a pair of.93% of all votes. The acquisition price has been deducted from shareholders’ fairness within the consolidated monetary statements.

Contingent liabilities
Unaudited		31.12.2020		31.12.2019
MEUR
For personal loans
– Mortgages		6.0		8.1
– Different quarantees		4.7		2.5
Off-balance sheet lease contracts		0.1		0.0
Key indicators
			1-12/	1-12/
Unaudited			2020	2019
Earnings/share (EPS)	euro		0.48	0.40
Return on fairness	%		21	20
Fairness ratio	%		56	56
Shareholders fairness/share	euro		2.49	2.14
Internet monetary liabilities	MEUR		-3.3	-1.9
Gearing	%		-23	-15
Gross investments	MEUR		4.1	3.2
	%		8	7
Order guide	MEUR		39.8	27.6
Common variety of personnel	White-collar		97	87
	Blue-collar		71	68
	Whole		168	155
Personnel in person-years, common	White-collar		93	83
	Blue-collar		60	57
	Whole		153	139
Adjusted variety of shares (’000)	At period-end		5862	5847
	Common throughout interval		5856	5847

Gross investments are offered with out IFRS 16 right-of-use property and funding grants obtained.

Personal shares held by the Group are excluded from the variety of shares.

Calculation of key indicators
	Revenue / loss for the interval attributable to homeowners of mother or father
Earnings/share (EPS):	—————————————————————————-
	Common variety of excellent shares
	Revenue / loss earlier than taxes – taxes
Return on fairness %:	—————————————————————————-	x 100
	Whole fairness, common
	Homeowners’ fairness
Homeowners fairness/share:	—————————————————————————-
	Variety of excellent shares on the finish of interval
	Whole fairness
Fairness ratio, %:	—————————————————————————-	x 100
	Assertion of monetary place whole – advances obtained
Internet monetary liabilities:	Monetary liabilities – money and money equivalents
	Monetary liabilities – money and money equivalents
Gearing, %:	—————————————————————————-	x 100
	Whole fairness