Title: AFR of Apetit-konserni

Basis of preparation

The consolidated financial statements have been prepared in accordance with the International Financial Reporting Standards (IFRS) complying the IAS and IFRS standards as well as the SIC and IFRIC interpretations valid on the date of the financial statement. The International Reporting Standards refer to standards and their interpretations approved for adoption within the EU in accordance with the procedure enacted in EC regulation 1606/2002. The notes to the consolidated financial statements are also in accordance with Finnish accounting and company legislation. The consolidated financial statements have been drawn up on the basis of historic acquisition costs, except for those financial assets and liabilities which are recognised in income at fair value and derivative financial instruments measured at fair value.

Preparation of the financial statements in accordance with the IFRS standards requires the Group’s management to make certain assessments and exercise judgement in applying the accounting principles. Details of the judgements made by the management in applying the accounting principles observed by the Group, and of those aspects which have the greatest impact on the figures reported in the financial statements, are given below under the heading ‘Accounting principles requiring executive judgement and the main uncertainties concerning the assessments made’.










	Apetit Group

	Board of Directors' Report and Financial Statements
	1.1.2022-31.12.2022























	Apetit Plc
	Apetit Group
	Maakunnantie 4
	Säkylä
	Finland
	0197395-5
	743700RSFZUIQYABYT14
	Public limited company
	Finland




	Contents	page

	Board of Directors´ Report	1-14
	Consolidated Financial Statements, IFRS
	Consolidated Statement of Comprehensive Income	15
	Consolidated Statement of Financial Position	16
	Consolidated Statement of Cash Flows	17
	Consolidated Statement of Changes in Equity	18

	Notes to the financial statements
	Note 1. Accounting principles	19-31
	Note 2. Operating segments	32-33
	Note 3. Discontinued operations and non-current assets held for sale	34
	Note 4. Other operating income and expenses	35
	Note 5. Employee benefits expense	36
	Note 6. R&D expenses	36
	Note 7. Materials and services	36
	Note 8. Depreciation, amortisation and impairment	36
	Note 9. Financing income and expenses	37
	Note 10. Income taxes	37
	Note 11. Deferred tax assets and liabilities	38
	Note 12. Earnings per share	39
	Note 13. Intangible and tangible assets, leases and goodwill	40-44
	Note 14. Shares in associated companies	45
	Note 15. Other non - current financial assets	46
	Note 16. Non - current receivables	46
	Note 17. Trade receivables and other current receivables	46
	Note 18. Inventories	46
	Note 19. Cash and cash equivalents	46
	Note 20. Shareholders' equity	47
	Note 21. Defined benefit plan obligations	48-49
	Note 22. Share-based payments	50-51
	Note 23. Interest-bearing liabilities	52
	Note 24. Trade payables and other liabilities	53
	Note 25. Financial risk management	54-58
	Note 26. Collateral, contingent liabilities, contingent assets and other commitments	59
	Note 27. Related party transactions	60-62
	Note 28. Changes in accounting policies	63
	Note 29. Events since the end of the financial year	63

	Financial Statement of Parent company, FAS
	Parent company income statement, FAS	64
	Parent companyt balance sheet, FAS	65
	Parent company statement of cash flows, FAS	66
	Accounting principles, FAS	67
	Notes to the parent company financial statements	68-76
	Proposal of the board of directors for the distribution of profits	77
	Books	78

	Appendices to the Board of Directors´ Report
	Key indicators	79-81
	Ownership	82

	Independent Auditor’s Report on Apetit Oyj’s ESEF-Consolidated Financial Statements (Translation of the Finnish original)	83


	Board Of Directors’ Report
	Apetit is a Finnish food industry company that focuses on plant-based food products and is firmly rooted in Finnish primary production. Its product groups include frozen vegetables and frozen ready meals and vegetable oils. The company is also active in the Finnish and international oilseeds and feed raw-materials markets.
	The Group’s businesses and reporting segments are Food Solutions and Oilseed Products. In addition to the two reporting segments, Apetit will report Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange that are not allocated to the three business segments.
	The Food Solutions segment consists of Apetit Ruoka Oy. Apetit Kasviöljy Oy and its subsidiaries are responsible for Oilseed Products. The result of the associated company Sucros Ltd is reported below the operating profit.
	Apetit’s shares have been quoted on Nasdaq Helsinki since 1989, and the company is domiciled in Säkylä.

	Profit And Financial Position
	Net sales and profit of continuing operations
	Net sales in January–December were EUR 181.7 (149.1) million. Operating profit was EUR 3.5 (5.8) million. The operating profit includes capitalisation of fixed costs arising from harvest-time production in the amount of EUR -0.3 (0.5) million.
	The share of the profit of the associated company Sucros was EUR 0.5 (0.4) million in January–December.
	Financial income and expenses totalled EUR -0.2 (0.2) million.
	The profit before taxes was EUR 3.8 (6.4) million, and taxes on the profit for the period came to EUR -0.7 (-1.1) million. Profit for the period came to EUR 3.2 (5.3) million, and earnings per share amounted to EUR 0.51 (0.85).

	Cash flows, financing and balance sheet
	Apetit Group’s balance sheet position remained strong in terms of the equity ratio as well as liquidity.
	The consolidated cash flow from operating activities amounted to EUR 28.4 (5.0) million in January–December. The impact of the change in working capital was EUR 18.5 (-3.7) million. The effect of seasonality on the change in working capital is presented under the heading Seasonality of operations. The change was mainly attributable to the divestment of the Grain Trade business.
	The net cash flow from investing activities was EUR 11.7 (-6.3) million. The cash flow from financing activities came to EUR -32.7 (7.7) million, including EUR -29.1 (12.1) million in net loan repayments and EUR -2.5 (-3.1) million in dividend payments.
	At the end of the period, the Group’s interest-bearing liabilities amounted to EUR 2.1 (32.3) million and liquid assets to EUR 14.8 (7.5) million. Net interest-bearing liabilities totalled EUR -12.7 (24.8) million.
	The consolidated balance sheet total stood at EUR 117.3 (157.1) million. At the end of the review period, equity totalled EUR 96.0 (93.3) million. The equity ratio was 81.8 (59.4) per cent, and gearing was -13.2 (26.6) per cent. The Group’s liquidity is managed by committed credit facilities, fixed loans and a commercial paper programme. At the end of the period, the available credit facilities amounted to EUR 29 (29) million. The total of commercial papers issued stood at EUR 0.0 (28.0) million.

	Overview Of Operating Segments
	Food Solutions
	Net sales in the Food Solutions segment amounted to EUR 64.2 (61.5) million in January–December. Operating profit was EUR 4.2 (5.9) million.
	Investment for the period totalled EUR 4.3 (2.0) million and was mainly associated with production efficiency improvements in Säkylä and the renewal of the pizza production line in Pudasjärvi.

	Oilseed Products
	Net sales in the Oilseed Products segment were EUR 118.2 (88.1) million in January–December. Operating profit was EUR 1.5 (2.0) million.
	Investment for the period totalled EUR 0.7 (3.7) million and was mainly associated to the product development of rapeseed-based vegetable protein.

	Discontinued operations
	Grain Trade
	Net sales in the Grain Trade segment were EUR 67.2 (164.5) million in January–December. Operating profit was EUR 2.7 (-3.0) million.
	Investment for the period totalled EUR 0.0 (0.0) million.

	Impacts on business of the war in Ukraine
	The war in Ukraine has an indirect impact on Apetit’s business through the higher prices of energy, raw materials and packaging materials. Apetit does not have operations in Ukraine, Russia or Belarus. Apetit also does not export food products or raw materials to these countries. The events in Ukraine has created uncertainty and exceptional volatility in the prices of raw materials and products in the oilseed plant business. Logistics chains for raw and packaging materials may also be disrupted by the war. The potential business effects of sanctions are actively monitored.

	Impacts of the COVID-19 pandemic on Apetit’s businesses
	In Apetit Group, the impacts of the COVID-19 pandemic vary by business. Thanks to its proactive and systematic approach, Apetit has been able to secure operational capability during the pandemic. During 2022, the restrictions were gradually waived. Apetit monitors the situation and the instructions of the authorities and tries to prevent the negative effects of the pandemic on its business operations as best as possible.
	Apetit’s goal during the COVID-19 pandemic has been to ensure the health of employees, customers and other stakeholders while ensuring the undisrupted continuation of production, business operations and the food supply chain. The production units and other operations have implemented various arrangements to minimise interaction between employees and with outside parties, increased the use of personal protective equipment, further improved hygiene standards at various work areas and instructed office employees to work remotely.

	Value Creation at Apetit
	Apetit’s ability to create value is based on strong integration with Finnish primary production, the unique value chain, strong and attractive brands and products, continuous improvement of operational efficiency, and on sustainable value chain.
	Apetit’s value creation model is described in more detail in its annual report.

	Strategy
	Strategy period 2020–2022
	Apetit Plc published its strategy for 2020–2022 in May 2020. A key feature of the strategy is strengthening the existing unique value chain that has a strong foundation in Finnish primary production. The operations of the strategy period aim towards the objective of building Apetit into a successful Finnish company focusing on plant-based food products.
	In its strategy, Apetit focuses on utilising its existing strengths and strengthening them further in all of its business areas. A key factor in everything Apetit does is ensuring future success.
	Apetit has identified the phenomena in the operating environment that both steer and support the company’s strategy and its implementation: The demand for plant-based food products is on the increase. As culinary trends, making daily life easier, well-being and the origin of food are highlighted further. In addition, the frozen foods market will grow. In the big picture, climate change will increase extreme weather phenomena and seasonal variations in harvest. Climate-responsible everyday actions are emphasised in the building of a sustainable food supply chain through different value chains.

	Strategic focus areas and key measures in 2022
	Optimising core business functions
	We will improve process efficiency in all of our operations. We will scale our operations in relation to the company’s existing size. We will improve resource efficiency through partnerships.
	Key measures in 2022:
	- Investments to enhance production and improve material efficiency at the Säkylä plant.
	- Investment to the extensive renewal of the frozen pizza factory in Pudasjärvi.
	- The sale of Grain Trade business.

	Strong foothold in Sweden
	We will strengthen the Swedish market as the primary focus area of food exports. We will ensure and deepen our existing customer relationships and also build new customer relationships. We will develop and expand our market-specific product portfolio. We will build appropriate partnerships for other selected markets.
	Key measures in 2022:
	- Preparation for launching a new product family on the Nordic market.
	- Launching new products and working to establish a market position in Sweden.
	- Expanding export partnerships and increasing total export volume.

	Growth from plant-based added value products
	We will increase the sales of our existing product portfolio and expand our customer base. We will expand to new product segments. We will strengthen our commercial position in the Food Service channel. We will create a model for the commercialisation of the rapeseed protein ingredient.
	Key measures in 2022:
	- Continuous development of new plant- and fish-based products and product groups.
	- Utilization of rapeseed protein ingredient BlackGrain in Apetit Vegetable ball.
	- Expanding the Kotimainen Wok product family.

	Developing farming partnerships
	Food Solutions: We will expand contract farming in pea and possible new plants. We will improve the preconditions for farming by developing cultivation measures, soil fertility and plant protection measures, among other things. We will make use of new opportunities, such as carbon farming.
	Oilseed Products: We will deepen our contract farming model to ensure the availability of Finnish raw materials.
	Key measures in 2022:
	- Active participation in the Räpi experimental farm in research projects promoting soil fertility and carbon sequestration.
	- Promoting the cultivation of domestic pulses.
	- Participation in the RypsiRapsi 2025 project and the project aimed at raising the yield level of oilseeds.
	- Continuous cooperation with farmers and industry operators: advice and training.

	Sustainable actions
	We will promote cultivation development and implement new sustainable cultivation methods. We will provide new diverse alternatives to increase plant-based and sustainable eating. We will make sustainability an even more intertwined part of all of our operations. We will decrease the Group’s environmental and climate impacts in accordance with set objectives.
	Key measures in 2022:
	- The decision on the Säkylä plant’s new energy solution, which will reduce the plant’s CO2 emissions by 80 percent.
	- Expansion of the product family based on domestic wild fish by launching the Baltic Sea Fish Patty made from herring.
	- Studying the carbon footprint of domestic rapeseed oil.

	Financial objectives
	EBITDA will be EUR 14 million in 2022 (continuing operations in 2019 EUR 0.8 million)
	Return on capital employed (ROCE %) > 8% (2019: -4.0%)
	The realisation of set strategic objectives is based on regular harvest development and systematic execution of strategic measures. The company is open to corporate transactions that are in line with its strategy.

	Renewed strategy for 2023–2025
	Apetit published its strategy for 2023–2025 15 November 2022. Achieving growth from diverse plant-based food solutions and added-value products is at the heart of Apetit’s strategy. As the cornerstone of our business, we continue to invest in cooperation with growers and in Finnish primary production. Targets for the strategy period is an operating profit of over EUR 9 million and an ROCE of over 8 per cent.
	Apetit’s four strategic focus areas for 2023–2025 are: Stronger together, Diverse plant-based food products, More domestic plant proteins, Sustainable value chain.

	Investment
	The Group’s investment in non-current assets came to EUR 5.0 (6.6) million and was divided as follows: investment in Food Solutions totalled EUR 4.3 (2.0) million, in Oilseed Products EUR 0.7 (3.7) million, in Grain Trade EUR 0.0 (0.0) million and in Group Functions EUR 0.1 (0.9) million.

	Research and development
	Research and development costs of continuous operations were EUR 1.4 (1.0) million, or 0.8% (0.7%) of net sales. In addition, EUR 0.2 (0.1) million in product development costs was capitalised on the balance sheet during the financial year in relation to the development of the rapeseed ingredient.
	In the Food Solutions business, research and development operations were mainly related to developing new products and creating cooperation networks that support operations.
	Apetit improves its products and creating brand new products to provide easy, delicious plant-based products for different meal situations for people who value food that tastes good, is healthy and is produced responsibly. New products are developed to match market-specific preferences and nutritional recommendations, and for convenient everyday meals.
	Vegetables and vegetable oils are an important part of a healthy diet. In its products, Apetit pays special attention to attractive appearance and good taste, in addition to nutritional values, as only food that is actually eaten is nourishing.
	In the Oilseed Products business, the company focused on increasing in-depth research and development. The project to enhance the added value of rapeseed as a raw material continued, with Business Finland participating in its funding. The purpose has been to develop an entirely new ingredient with high nutritional content for the international food market. In December 2020, the European Commission granted a novel food authorisation for Apetit’s rapeseed ingredient, the BlackGrain from Yellow Fields rapeseed powder.
	Apetit has continued to assess options related to the commercialisation of the ingredient and to develop new rapeseed-based ingredients. The majority of the small-scale production of the rapeseed ingredient that was started in the autumn 2021 was delivered for production testing by customers as well as Apetit’s own product development. In 2022, the development work focused on the production process. BlackGrain was used for the first time in a commercial product in early 2022 as Apetit Vegetable Ball was launched for the HoReCa market.
	The strategic goals of the Oilseed Products business include increasing the cultivation of oilseed plants in Finland to a sustainable level and increasing the yield level of oilseeds. The achievement of this goal was promoted with participation in the RypsiRapsi 2025 project, and the project aimed at raising the yield level of oilseeds.
	Apetit carries out cultivation research and development operations on its experimental farm in Köyliö, Säkylä with the aim of securing the outdoor cultivation of vegetables by taking proactive measures to adjust cultivation methods in response to a changing environment and by providing farmers with the latest information and expertise. Through these operations, Apetit is looking for alternatives to chemical pesticides and seeking ways to improve soil fertility and promote carbon sequestration, for example. Research topics include optimised crop rotation, the use of insect nets and mechanical weed separation and organic cultivation methods.
	In addition to in-house research and development activities, Apetit participates in selected research projects and development programmes coordinated by various partners. In 2022, the Räpi experimental farm had ongoing research projects to explore ways to improve soil fertility, especially from the point of view of vegetable cultivation. Research was carried out together with the Natural Resources Institute Finland and Pyhäjärvi Institute. The projects provide more practical ways to promote soil fertility and mitigate nutrient runoffs as well as research data on the potential of using soil amendments and green manure.
	The Natural Resources Institute Finland’s Fertile vegetable soil (VIIVI) project continued on Räpi’s fields. In 2022, the project's crop was spinach. Pyhäjärvi Institute’s BioEväät project ended on the Räpi farm at the end of the three-year project period. The aim of the project was to provide farmers with new methods to improve soil fertility and water resource management. One of the measures taken on the research parcel of the Räpi experimental farm is the application of zero fibre, a side stream of the forest industry, to reduce nutrient runoff and improve soil fertility.
	Apetit is also involved in the Green Future of Satakunta project coordinated by Pyhäjärvi Institute, which aims, among other things, to develop the cultivation of domestic cauliflower and pulses. For the fourth year, chickpeas were cultivated at the Räpi farm. Domestic pulses will also be tested in diverse ways in Apetit’s product development.

	Seasonality of operations
	In accordance with the IAS 2 standard, the historical cost of inventories includes a systematically allocated portion of the fixed production overheads. With production focusing on harvest time, raw materials are mainly processed into finished products during the second half of the year. This means that more fixed production overheads are recognized on the balance sheet in the second half of the year than during the first half of the year. Due to this accounting practice, most of the Group’s annual profit is accrued during the second half of the year. The timing of end of the harvest season can affect the comparability between financial years. The seasonal nature of profit accumulation is most marked in the Food Solutions segment and in the associated company Sucros, where production reflects the crop harvesting season.
	Harvesting seasons also cause seasonal variation in the amount of working capital tied up in operations. Working capital tied up in Oilseed Products is at its highest towards the end of the year and decreases to its lowest in the summer before the next harvest season. As production in the Food Solutions segment is seasonal and follows the harvest period, the working capital tied up in operations is at its highest around the turn of the year in that segment.

	Risks, uncertainties and risk management
	The Board of Directors of Apetit Plc has confirmed the Group’s risk management policy and principles. The goal of risk management is to systematically identify and assess risks and manage them in a cost-effective manner. Risks are factors that threaten the achievement of the company's strategic or operational goals. All Group companies and business units regularly assess and report the risks related to their operations and the adequacy of controls and risk management methods. The risk assessments support the strategy work and decision-making and serve to ensure that sufficient measures are taken to control risks. Risk assessments support strategy work and decision-making. The risk management framework, policies and principles are assessed and developed regularly.
	Apetit Group classifies risks into strategic, operative and financial risks and risk events. The Group’s most significant strategic risks are related to the success of the development of its business portfolio in line with its strategy, and to changes in the Group’s business sectors and customer relationships.
	The main operational risks concern the availability of raw materials, the time lags between purchasing and use, and fluctuations in raw material prices. Price risk management is particularly important in Oilseed Products. The prices of oilseeds are determined in the world market. In Oilseed Products, limits are defined for open price risks.
	The Group operates in international markets and is thus exposed to currency risks arising from changes in exchange rates. Under normal circumstances, currency risks are low. Financial risk management is discussed in more detail in Note 25 to the Financial Statements.
	Fire, serious process disruptions, and defects in raw materials or final products affecting food safety can lead to major property damage, losses from production interruptions, liabilities and other indirect adverse effects on the company’s operations. The Group companies guard against these risks by evaluating their processes through internal control and other systems and by taking corrective action where necessary. Insurance policies are used to cover risks always, when insurance can be justified on financial or other grounds.
	The assessment of Apetit’s most significant risks also covers non-financial risks. A typical effect of the realisation of a non-financial risk would be a negative reputation effect. Apetit Group’s Code of Conduct guides all operations in Group. Apetit requires that all of its employees and suppliers comply with the Code of Conduct. Climate related risks are discussed in more detail in the non-financial information section.

	Environmental risks
	Apetit’s operational activities do not involve direct significant environmental risks. The principal environmental risks at Apetit’s production facilities concern potential wastewater and vegetable oil leaks into the environment and refrigerant leaks. Environmental risks are managed by means of internal and external inspections and by complying with environmental requirements and monitoring the company’s environmental performance. Some of the company’s operations have ISO 14001 environmental management systems. Apetit has assessed the risks and opportunities related to its value chain caused by climate change in accordance with the TCFD framework. Climate-related risks are discussed in the non-financial information section.

	Social and employee-related risks
	Safety at work is vitally important for Apetit. Any occupational accidents are among its most significant social and employee-related risks. The company actively provides information about aspects related to occupational safety, and each supervisor must complete a training programme related to safety at work.
	Ensuring a competent and motivated workforce has also been identified among social and employee-related risks. Apetit’s personnel strategy focuses on responsible leadership based on the company’s values and corporate culture, ensuring the availability of labour by focusing on retention and attraction factors, improving employees’ occupational well-being and ability to cope with the demands of work by using a wide range of work ability management methods, and the continuous development of strategic and critical competencies.

	Risks related to human rights
	The most significant risks related to human rights arise from the production chain and are related to working conditions. Apetit is committed to, and requires its suppliers to commit to, its ethical requirements for suppliers, which describe sustainable operating principles concerning ethical, social and environmental aspects. Apetit Group’s ethical supplier requirements are based on the guidelines of the UN’s Global Compact initiative.
	In its sourcing responsibility guidelines, Apetit has defined the statements required from suppliers regarding the management and realisation of social and environmental responsibility.

	Risks related to corruption and bribery
	If Apetit’s employees or stakeholders engage in unethical operations, this may have a negative effect on Apetit’s reputation, in addition to having financial effects. The most important management method to avoid unethical ways of working is to increase awareness of ethical operating methods, for example.

	Non-financial information
	Responsible operations and a value chain that enables sustainable food choices are key competitive advantages for Apetit. Apetit builds its operations around domestic raw materials and sustainable practices. At Apetit, corporate responsibility covers the continuous improvement of operations throughout the value chain, from the cultivation and procurement of raw materials and production to customers and ultimately to consumers. Through its actions, Apetit wants to increase the well-being of both the environment and people. The idea is also part of the company’s mission: Good food for everyone. Locally. Apetit's business model and value creation are described in more detail in its annual report.
	On 15 November 2022, Apetit published its renewed strategy for 2023–2025. Achieving growth from diverse plant-based food solutions and added-value products is at the heart of Apetit’s strategy. As the cornerstone of its business, the company will continue to invest in cooperation with growers and in Finnish primary production. The strategic focus areas include the development of sustainable Finnish primary production, domestic plant proteins and a sustainable value chain. The company’s strategy is supported by the phenomena that drive changes in the operating environment. Climate action and sustainable alternatives are increasingly important factors in consumption decisions. This supports the demand for plant-based food products and the promotion of well-being as a food trend.

	Managing Corporate Responsibility
	Apetit’s operations are based on the company’s values, vision and mission. Its sustainability work is guided by its strategy, operating policy and Code of Conduct, as well as its procurement principles, which are based on the UN Global Compact initiative. Apetit is committed to compliance with the laws and other regulations of its countries of operation. Corporate responsibility is managed by the corporate management as part of its normal operations.
	Apetit seeks to treat all of its stakeholders equally. Continuous interaction with stakeholders, as well as an attentiveness to their needs and wishes, is one of the cornerstones of the company’s sustainable operations. In cooperation with its key stakeholders, Apetit implemented an extensive process to determine the material themes of its corporate responsibility.
	Sustainable value chain is one of Apetit’s strategic focus areas: We promote sustainable primary production and food choices. We reduce the impact of our operations on the climate and the environment. We make sure that our sourcing processes are transparent and sustainable. We ensure that social responsibility is realised throughout the value chain.
	Apetit seeks to understand the impact of its operations on people, society and the environment comprehensively. The company has identified the environmental impacts of our value chain and works to reduce them and to promote the sustainable use of natural resources in the subject areas identified as material. Apetit collects systematically key figures and information from the most material aspects of its corporate responsibility to continuously develop sustainable operations.
	More information about Apetit’s corporate responsibility is available in the corporate responsibility report. Apetit reports on its sustainable operations in accordance with the of the Global Reporting Initiative (GRI) standards.

	Progress of corporate responsibility work
	In its corporate responsibility program, Apetit has set goals for the progress of its corporate responsibility work. The corporate responsibility programme is based on sustainable food choices: Through its operations, Apetit wants to contribute to a food supply chain that supports the well-being of people and the environment.
	Cultivation development and contract farming
	Apetit carries out cultivation research and development operations on its experimental farm with the aim of securing the outdoor cultivation of vegetables by taking proactive measures to adjust cultivation methods in response to a changing environment and by providing farmers with the latest information and expertise.
	In 2022, Apetit’s agricultural research including cultivation and variety tests at Räpi experimental farm continues, for example, with studies on domestic pulses such as chickpeas. The RypsiRapsi 2025 project and a project aimed at increasing the size of the oilseed harvest continued during the year.
	The climate impacts of operations
	The bioenergy plant of Apetit’s Kantvik vegetable oil milling plant has been in operation for more than a year. The bioenergy plant has reduced the Group’s Scope 1&2 emissions by more than 70 per cent from 2019. Apetit announced that the Säkylä frozen foods plant will renew its energy solution. The new energy solution based on bioenergy and heat recovery is scheduled to be deployed in summer 2023.
	Products and packaging solutions
	Apetit's novelty products for 2022 included, among others, a Vegetable Ball product that contains BlackGrain, a rapeseed-based plant protein developed by Apetit and Baltic Sea Fish Patties, made from domestic Baltic Herring. Apetit’s new product – Kotimainen Säkylän kasvispyörykkä vegetable balls – utilises even those parts of the vegetables processed at Apetit’s Säkylä frozen foods plant which used to end up in the side streams of the process. The vegetable balls contain side streams from domestic peas and carrots. The recyclability of Apetit’s product packaging increased when recyclable packaging was introduced for frozen potato products from the start of 2023. The change increases the use of recyclable packaging materials by approximately 22,000 kilos per year.
	Social impacts
	In the personnel survey conducted in March 2022, the average employee satisfaction score was 3.9 (2021: 4.0). According to the results, the Group’s strengths include the fact that the employees feel that work being carried out in the company is meaningful and that their roles and responsibilities are clear. The occupational health and safety system of the Säkylä frozen foods plant was audited in autumn 2022 and granted an ISO 45001 occupational safety certificate.

	Environment and climate
	Apetit Group’s operations are guided by its operating policy and ethical principles, the goals of which include responsible environmental management and the management of environmental impacts. The Group’s environmental management system complies with the ISO 14001 standard in the Food Solutions business.
	The impacts of Apetit's operations and value chain on environment and biodiversity arise mainly indirectly from the primary production of food and the production of other materials and the utilization of the natural resources used for them. Examples of natural capital goods used by Apetit include clean and nutrient-rich soil, clean water, crops and seeds, wild fish as well as wood and other wood fibres. Apetit’s operations depend on the maintenance of air and soil quality, the availability of clean water and the maintenance of biodiversity. The environmental impacts of the operations generated by Apetit’s entire value chain are related to all natural capital dependencies.
	The goal is efficient and safe production that is in harmony with the environment. The direct environmental impacts of Apetit’s Food Solutions business are related to energy and water consumption and the treatment of process side streams and waste. In the Oilseed Products business, environmental impacts are mainly related to energy consumption and the bleaching clay used in processing. The company uses a chemical-free mechanical method for vegetable oil milling. In addition, all operations generate a certain amount of packaging waste. Environmental impacts also arise from storage, transport and buildings. Apetit is committed to continuous improvement with regard to environmental issues.
	Apetit participates in the Energy Efficiency Agreement system of Finnish industries and has committed to implementing the Food and Drink Industry Action Plan. The target for improving energy use in the food industry is 7.5 per cent for the 2017–2025 agreement period. In 2022, Apetit’s energy consumption was 0.4 (0.4) MWh per tonne produced.
	As part of reducing its climate impacts and increasing its use of renewable energy, Apetit commissioned the bioenergy plant built in conjunction with its vegetable oil milling plant in Kirkkonummi. In 2022, the direct CO2 emissions from Kantvik plant were reduced by more than 90 percent from 2019. Apetit has also released that it will deploy new energy solution to its Säkylä frozen products plant in the second quarter of 2023. The new energy solution is based on steam produced by bioenergy and heat recovery. New energy solution is expected to reduce the Säkylä plant’s CO2 emissions by 80 per cent.
	All of the electricity used by Apetit Group’s production facilities has been generated from renewable energy sources starting from 1 April 2020. The use of energy produced with renewable natural resources and the development of energy efficiency have reduced the carbon footprint of Apetit Group’s Scope 1&2 emissions by more than 70 per cent from 2019.
	All of Apetit’s production facilities that are required to have an environmental permit are in possession of a current permit. During the year, there were no accidents with significant environmental impacts at the production facilities. Related with the operations of the Kantvik vegetable oil milling plant, there have been several observations of odour nuisances. Apetit has decided to purchase a catalytic burner to the oil milling plant to eliminate odours. The burner will be put into use in the summer of 2023.
	In accordance with the decision of the Vaasa Administrative Court of 30 December 2021, the environmental permit of Apetit’s Säkylä plant remains unchanged. In its decision, the Administrative Court requires Apetit to submit a report to the state environmental permit authority by 31 December 2026, which must examine the conditions of the wastewater treatment plant, required for achieving a good treatment result, as well as explain the reasons for exceeding limit values, if any, and for insufficient treatment efficiency. Based on the report, the permit authority may specify permit regulations or supplement Apetit’s environmental permit. On 2 September 2022, the Supreme Administrative Court rejected the appeal leave application regarding the decision issued on 30 December 2021.
	The company is not aware of any significant individual environmental risks on the balance sheet date. The Group’s environmental costs were EUR 1.4 (1.4) million, or 0.8 (0.9) per cent of net sales.
	Environmental aspects are discussed in more detail in Apetit’s corporate responsibility report.

	Climate-related risks and opportunities
	Apetit has carried out a study on the risks and opportunities related to climate change in accordance with the recommendations of the TCFD (Task Force on Climate-related Financial Disclosures).
	The most significant climate-related risks in both of Apetit’s businesses are harvest risks related to the procurement of raw material. Extreme weather phenomena caused by climate change can have a significant impact on annual harvest levels. Apetit manages this risk particularly by developing cultivation methods and conducting tests on different plant varieties. The financial impacts of changes in the harvest levels may be significant in the short term. In the long term, climate change may also lead to growing disease pressures due to changes in the cultivation conditions, for example.
	The other potential climate-related risks are associated with regulations governing emission compensation, for example. Apetit complies with the current national and EU-level legislation. The company also monitors and evaluates future regulations and their impacts on the Group’s operations. Apetit Group has identified the reduction of its climate impacts as one of the material aspects of its corporate responsibility. Apetit is committed to reducing its direct climate impacts by 75 per cent by 2025. This will be achieved particularly by transitioning to renewable energy solutions. The bioenergy plant already completed at the Kantvik vegetable oil milling plant and the new energy solution to be deployed at the Säkylä plant in 2023 enable the company to better manage its climate impacts. The solutions also enable the use of production side streams in bioenergy production.
	Apetit’s most significant climate-related opportunities are related to changes in consumer behaviour, with eating habits shifting towards more plant-based diets and climate-friendly consumption.
	Apetit’s sustainable food solutions and plant-based food products support planetary health diets very well. Apetit is also developing the use of diverse plant proteins in its products.

	Personnel
	Apetit’s personnel strategy focuses on creating a safe and encouraging work atmosphere, enabling inspiring and goal-oriented leadership, developing competence, creating a bold corporate culture that enables experiments and improving the company’s employer image.
	At Apetit, occupational safety culture is developed in line with the principle of continuous improvement. The key measures taken in 2022 to improve occupational safety were active and inclusive occupational safety communications and incident investigation as well as systematic safety observation practices. Apetit’s Säkylä plant was certified in accordance with the ISO 45001 standard.
	In 2022, there were 17 (18) occupational accidents that led to at least a one-day absence. The accident frequency rate was 27 (27). Commuting accidents are also included in occupational accidents. Apetit aims for zero accidents. The occupational accident statistics include both blue-collar and white-collar employees.
	Apetit seeks to reduce sickness absences. In 2022, the sickness absence rate was 5.5 (4.8) per cent. The sickness absence rate is the sickness absence time in relation to the theoretical regular working time.
	Apetit monitors well-being at work and employee satisfaction by means of a Group-wide well-being at work survey, for example. In the survey, the personnel assess their experiences of personal well-being at work, the work atmosphere, safety at work, social support and supervisory work. The average result of the Työvire survey conducted in 2022 was 3.9 (4.0). The next survey will be conducted in March 2023.
	In January–December 2022, the continuing operations had 288 (286) employees in full-time equivalents. Apetit Group had 324 (376) employees at the end of December, including all types of employment. The number of employees at Apetit’s Säkylä plant varies during the year based on the harvest seasons.
	The salaries and other remuneration paid to the employees of continued operations in 2022 amounted to EUR 14.5 (13.6) million.
	Aspects related to personnel are discussed in more detail in the People section of Apetit’s annual report.

	Quality and product safety
	Product quality and product safety are key factors in Apetit’s operations. Apetit Group’s production facilities in Säkylä, Kantvik and Pudasjärvi have food safety systems certified in accordance with the GFSI standard: BRC in Säkylä and food safety systems according to FSSC 22000 standard in Kantvik and Pudasjärvi. In addition, a comprehensive SMETA audit, created to support ethical trading, has been carried out at the Säkylä plant. The Säkylä and Kantvik plants also have their own laboratories for ensuring product safety
	The most significant risks related to product safety include foreign objects, risks related to allergen control and the accuracy of the labelling on product packaging. Apetit carried out 1 (1) product recalls in 2022.

	Human Rights And The Prevention Of Corruption And Bribery
	Apetit requires its employees and partners to comply with its Code of Conduct. Apetit ensures the fair and equal treatment of employees by operating in line with the principles of its equality plan.
	Apetit’s Code of Conduct prohibits the acceptance of direct or indirect bribes, as well as other benefits that can be regarded as bribes to acquire or maintain business operations. Apetit’s employees are required to familiarise themselves and comply with the Code of Conduct and report any deviations from the Code of Conduct via a designated whistleblowing channel. One report was submitted via the whistleblowing channel in 2022. The matter has been handled within the company.
	In addition, Apetit’s employees must not seek to ensure favourable decisions or services from the authorities through illegal means. Apetit’s employees must also avoid situations that are in conflict or may be construed to be in conflict with the personal and business interests of the employee. Apetit provides training on the key principles of competition legislation to all office employees to ensure fair and transparent competition on the market.
	Apetit’s operating policy and ethical principles are supplemented by its ethical requirements for suppliers, which cover aspects related to laws and regulations, the environment, business ethics, forced and child labour, discrimination and oppression, the work environment and social conditions.
	No human rights violations or corruption or bribery cases were reported in 2022.


	Corporate Governance
	Corporate Governance Statement and Remuneration report
	The 2022 Corporate Governance Statement and the Remuneration report for Apetit Plc has been considered by the Apetit Plc’s Board of Directors and is published separately from the Board of Directors’ report.

	Annual General Meeting 2022
	Apetit Plc’s Annual General Meeting was held in Säkylä on 5 May 2022. The Annual General Meeting adopted the parent company’s financial statements and the consolidated financial statements, and discharged the members of the Supervisory Board, the Board of Directors and the CEO from liability for the financial year 2021. The Board of Directors’ proposals to the Annual General Meeting were approved without changes.

	Decisions of the Annual General Meeting 2022
	Dividend distribution
	The AGM resolved that a dividend of EUR 0.40 per share be paid for the financial year 2021. The dividend was paid on 16 May 2022. No dividend will be paid on shares held by the company.

	Remuneration Report for Governing Bodies
	The AGM resolved to support Apetit’s Remuneration Report for Governing Bodies 2021. In accordance with the Limited Liability Companies Act, the resolution is advisory. The Remuneration Report is available on the company’s website at apetit.fi/en/corporate-governance/remuneration.

	Election of the Supervisory Board, the Nomination Committee of the Supervisory Board and the auditors and deciding on their fees
	The Board of Directors received two different proposals from shareholders regarding the number of members on the Supervisory Board. The proposal that received more votes was adopted. Based on the result of the vote, it was confirmed that the Supervisory Board will have 14 members. Two different proposals were received from shareholders regarding the members to be elected to the Supervisory Board. Having determined the opinions of the shareholders that submitted the proposals, the Board of Directors decided that the members of the Supervisory Board will be selected by voting, with the shareholders participating in advance voting to express their opinion on each candidate separately. Based on the decision concerning the number of members on the Supervisory Board, the two candidates receiving the most votes in the advance voting were elected. To replace the members of the Supervisory Board whose term ended, Pekka Perälä was re-elected to the Supervisory Board and Tommi Mäkelä was elected to the Supervisory Board as a new member.
	Pekka Perälä and Henrika Vikman were elected by the AGM as the members of the Nomination Committee of the Supervisory Board.
	Ernst & Young Oy, Authorised Public Accountants, with Erika Grönlund, APA, as the auditor with principal responsibility and Osmo Valovirta, APA, were elected as the company’s auditors for the period ending at the close of the 2023 AGM.
	The AGM decided that a monthly fee of EUR 1,000 be paid to the Chair of the Supervisory Board and EUR 665 to the Deputy Chair. The AGM decided that the meeting allowance paid to the members of the Supervisory Board and the members of the Nomination Committee of the Supervisory Board would be EUR 300. The fee is also paid to the Chairman and Deputy Chairman of the Supervisory Board when they attend the board meeting. Compensation for travelling expenses will be paid in accordance with the general travel rules of Apetit Plc. The AGM decided that the auditors’ fees be paid according to an invoice approved by the company.

	Authorising the Board of Directors to decide on the repurchase of the company’s own shares
	The AGM decided to authorise the Board of Directors to decide on the repurchase of a maximum of 80,000 (eighty thousand) of the company’s own shares using the unrestricted equity of the company representing approximately 1.27 per cent of all of the shares in the company. The authorisation includes the right to accept the company’s own shares as a pledge.
	The authorisation is valid until the close of the Annual General Meeting 2023, but no longer than until 31 May 2023.

	Authorising the Board of Directors to decide on the issuing of new shares and on the transfer of Apetit Plc shares held by the company (share issue)
	The AGM decided to authorise the Board of Directors to decide on issuing new shares as follows: based on the authorisation, a total maximum of 600,000 (six hundred thousand) shares can be issued, which corresponds to approximately 9.5 per cent of all shares of the company at this time. Both new shares and shares held by the company may be issued based on the authorisation.
	The authorisation is valid until the close of the Annual General Meeting 2024, but no longer than until 31 May 2024. The authorisation replaces the previous share issue authorisation given on 28 May 2021.

	Organisation of the Supervisory Board and election of the Board of Directors
	At its organisational meeting on 5 May 2022, Apetit Plc’s Supervisory Board appointed Harri Eela as Chair and Maisa Mikola as Vice Chair.
	The Supervisory Board decided to elect five members to Apetit Plc’s Board of Directors. Lasse Aho, Annikka Hurme, Kati Sulin, Antti Korpiniemi and Niko Simula were elected as members of the Board of Directors. Lasse Aho was appointed as Chair of the Board of Directors and Niko Simula as Deputy Chair.
	At its organisational meeting, Apetit Plc’s Board of Directors elected members to its Audit Committee from among its members until the end of the Board’s term of office. Niko Simula was elected as the Chair of the Audit Committee and Annikka Hurme as a member.
	It was decided that the Board members be paid an annual remuneration of EUR 22,800 and that the Chair and Deputy Chair receive an annual remuneration of EUR 45,000 and EUR 27,600, respectively. The remuneration will be paid in cash by monthly instalments. It was also decided that the Chair and members of the Board of Directors be paid a meeting allowance of EUR 600 and EUR 400, respectively. Members of the Board's Committees are to be paid a meeting fee of EUR 600.

	Changes in the Board of Directors
	There were no changes in the composition of the Board of Directors during 2022.

	Shares and share ownership
	Shares, share capital and trading
	The shares of Apetit Plc are all in one series. All shares carry the same voting and dividend rights. The Articles of Association specify that the number of votes a shareholder is entitled to exercise cannot exceed one tenth of the votes represented at a general meeting. The nominal value of each of the company’s shares is EUR 2. At both the beginning and the end of the financial year, the total number of shares issued by the company stood at 6,317,576 and the registered share capital totalled EUR 12,635,152. The minimum amount of share capital is EUR 10 million, and the maximum amount is EUR 40 million.

	Treasury shares
	At the end of the review period, the company held a total of 77,668 treasury shares acquired during previous years. These treasury shares represent 1.2 per cent of the company’s total number of shares and votes. The company’s treasury shares carry no voting or dividend rights.

	Flagging announcements
	Apetit did not receive any flagging announcements during the financial year 2022.

	Share price and trading
	The number of Apetit Plc shares traded on the stock exchange during the review period was 500,249 (1,093,741), representing 7.9 (17.3) per cent of the total number of shares. The highest share price quoted was EUR 13.90 (14.90) and the lowest was EUR 9.62 (10.70). The average price of shares traded was EUR 10.92 (13.09). The share turnover for the period was EUR 5.5 (14.3) million. At the end of the review period, the market capitalisation was EUR 64.4 (81.2) million.

	Managers’ transactions
	Apetit’s managers’ transactions related to Apetit’s securities during the review period have been published as stock exchange releases and can be read on the company’s website.

	Short-term risks
	The most significant short-term risks for Apetit Group are related to the management of raw material price changes, the availability of raw materials, the harvest quality and quantity of oilseed plants and field vegetables, the functioning of the financing markets, the solvency of customers, the delivery performance of suppliers and service providers, and changes in the Group’s business areas and customer relationships.

	Events after the end of the financial year
	The company had no significant events after the end of the financial year.

	Assessment of expected future development
	The full-year operating profit from continuing operations is expected to improve year-on-year (EUR 3.5 million in 2022).

	Board of Directors’ proposals concerning profit measures and distribution of other unrestricted equity
	The Board of Directors of Apetit Plc aims to ensure that the company’s shares provide shareholders with a good return on investment and retain their value. In line with its dividend policy, the company will distribute at least 40-60 per cent of the profit for the financial year in dividends.
	The parent company’s distributable funds totalled EUR 49,931,349.93 on 31 December 2022, after adding the profit for the financial year, EUR 671,713.81. The Board of Directors proposes to the Annual General Meeting that a dividend of EUR 0.50 per share be paid. The dividend corresponding to this proposal is EUR 3,158,788.00 for all the company shares on the balance sheet date and EUR 3,119,954.00 for the shares in external ownership. No significant changes have taken place in the financial standing of the company since the end of the financial year. The company’s liquidity is good, and the Board deems that the company’s solvency will not be jeopardised by the proposed distribution of dividends. No dividend will be paid on shares held by the company.



Consolidated Statement of Comprehensive Income

EUR million	Note	1-12/2022	1-12/2021

Continuing Operations

NET SALES	(2)	181.7	149.1
Other operating income	(4)	1.2	0.9
Material and services	(7)	-137.3	-104.7
Employee benefits expense	(5)	-17.9	-16.5
Depreciation and amortisation	(2.8)	-5.7	-5.3
Impairment	(2.8)	-0.0	-0.0
Other operating expenses	(4)	-18.5	-17.5
OPERATING PROFIT	(2)	3.5	5.8

Financial income	(9)	0.6	0.8
Financial expenses	(9)	-0.8	-0.7
Share of profit/loss accounted for using the equity method	(14)	0.5	0.4
PROFIT/LOSS BEFORE TAX		3.8	6.4
Tax on income from operations	(10)	-0.7	-1.1
Profit/loss from continuing operations		3.2	5.3

Discontinued Operations
Profit/loss from discontinued operations	(3)	2.0	-2.9

PROFIT/LOSS FOR THE PERIOD		5.2	2.4

Earnings per share calculated on profit attributable to equity holders of the parent

Earnings per share, basic, Continuing Operations		0.51	0.85
Earnings per share, basic, Discontinued Operations		0.33	-0.47
Earnings per share, basic	(12)	0.83	0.38

Earnings per share, diluted, Continuing Operations		0.51	0.85
Earnings per share, diluted, Discontinued Operations		0.33	-0.47
Earnings per share, diluted	(12)	0.83	0.38

Profit attributable to:
Owners of the parent company		5.2	2.4

Other comprehensive income:

Exchange differences on translating foreign operations		-0.0	0.0
Cash flow hedges	(25)	-0.0	-1.0
Items that may be reclassified subsequently to profit or loss		-0.0	-1.0

Other comprehensive income for the year net of tax		-0.0	-1.0

TOTAL COMPREHENSIVE INCOME		5.1	1.3

Total comprehensive income attributable to:
Owners of the parent company		5.1	1.3



Consolidated Statement of Financial Position

EUR million	Note	31.12.2022	31.12.2021

ASSETS
NON-CURRENT ASSETS
Intangible assets	(13)	1.2	1.8
Goodwill	(13)	0.4	0.4
Property, plant, equipment	(13)	37.6	38.2
Right-of-use assets	(13)	2.1	3.0
Shares in associated companies	(14)	20.1	19.9
Other non-current financial assets	(15)	0.3	0.3
Non-current trade and other receivables	(16)	0.0	0.0
Deferred tax assets	(11)	3.2	4.2
NON-CURRENT ASSETS		64.9	68.0

CURRENT ASSETS
Inventories	(18)	30.1	70.8
Trade receivables and other receivables	(17)	7.5	10.8
Cash and cash equivalents	(19)	14.8	7.5
CURRENT ASSETS		52.4	89.1

NON-CURRENT ASSETS HELD FOR SALE	(3)	-	0.1

ASSETS		117.3	157.1


EQUITY AND LIABILITIES
Share capital	(20)	12.6	12.6
Share premium	(20)	23.4	23.4
Unrestricted equity reserve		0.1	0.1
Treasury shares		-1.1	-1.2
Hedging reserve		-1.1	-1.0
Other reserves		7.2	7.2
Translation differences		-0.0	-0.0
Retained earnings without profit/loss for the period		49.7	49.7
Profit/loss for the period		5.2	2.4
Equity attributable to owners of the parent company		96.0	93.3

EQUITY		96.0	93.3

NON-CURRENT LIABILITIES
Deferred tax liabilities	(11)	0.1	0.1
Non-current liabilities, interest-bearing	(23)	1.2	1.8
Non-current interest-free liabilities	(24)	-	0.1
Liabilities from defined benefit plan	(21)	0.2	0.2
NON-CURRENT LIABILITIES		1.5	2.3

CURRENT LIABILITIES
Current interest-bearing liabilities	(23)	0.9	30.5
Trade Payables and Other Liabilities	(24)	18.9	31.1
CURRENT LIABILITIES		19.8	61.5

Liabilities	(2)	21.3	63.8

EQUITY AND LIABILITIES		117.3	157.1



Consolidated Statement of Cash Flows
EUR million	Note	1-12/2022	1-12/2021

Cash flows from operating activities


PROFIT/LOSS FOR THE PERIOD		5.2	2.4
Adjustments to cash flow from operating activities	*	5.3	7.0
Working capital changes		18.5	-3.7
Interest paid		-0.3	-0.3
Interest received		0.0	0.0
Other financial items		-0.2	-0.2
Income taxes paid		-0.1	-0.2
Net cash from operating activities		28.4	5.0

Cash flows from investing activities
Purchase of tangible and intangible assets		-5.0	-6.6
Proceeds from sale of tangible and intangible assets		-0.0	0.1
Proceeds from disposal of discontinued operations		16.4	0.0
Dividends received		0.3	0.2
Net cash used in investing activities		11.7	-6.3

Cash flows from financing activities
Proceeds from sale of treasury shares		-	0.1
Repayment of current borrowings	(22)	-	-1.0
Addition / deduction of current borrowings	(22)	-29.1	13.0
Payment of lease liabilities	(22)	-1.1	-1.4
Dividends paid		-2.5	-3.1
Net cash used in financing activities		-32.7	7.7

Net change in cash and cash equivalents		7.3	6.4

Cash and cash equivalents at the beginning of the period	(19)	7.5	1.1
Effects of exchange rate fluctuations on cash held		-	-0.0
Cash and cash equivalents at the end of the period	(19)	14.8	7.5

* Adjustments to cash flow from operating activities
Depreciation, amortisation and impairment		6.2	6.3
Gains and losses of disposals of fixed assets and other non-current assets		-0.0	-0.1
Share of profit/loss accounted for using the equity method	(14)	-0.5	-0.4
Other non-cash items		0.4	0.2
Financial income and expenses		0.4	0.4
Tax on income from operations	(10)	1.1	0.5
Other adjustments		-2.3	0.1
Total		5.3	7.0



Consolidated Statement of Changes in Equity

EUR million	Share capital	Share premium	Unrestricted equity reserve	Treasury shares	Hedging reserve	Other reserves	Translation differences	Retained earnings	Total equity

EQUITY 1.1.2022	12.6	23.4	0.1	-1.2	-1.0	7.2	-0.0	52.1	93.3
Profit/loss for the period	-	-	-	-	-	-	-	5.2	5.2
Cash flow hedges	-	-	-	-	-0.0	-	-	-	-0.0
Translation differences	-0.0	-	-	-	-	-	-0.0	-0.0	-0.0
Comprehensive income	-0.0	-	-	-	-0.0	-	-0.0	5.2	5.1
Dividend distribution	-	-	-	-	-	-	-	-2.5	-2.5
Share-based payments	-	-	-	-	-	-	-	0.1	0.1
Other changes	0.0	-	-	0.0	-0.0	-	-	-0.0	-0.0
Changes in equity total	-0.0	-	-	0.0	-0.1	-	-0.0	2.7	2.7
EQUITY 31.12.2022	12.6	23.4	0.1	-1.1	-1.1	7.2	-0.0	54.9	96.0


EUR million	Share capital	Share premium	Unrestricted equity reserve	Treasury shares	Hedging reserve	Other reserves	Translation differences	Retained earnings	Total equity

EQUITY 1.1.2021	12.6	23.4	-	-1.3	0.1	7.2	-0.0	53.0	95.0
Profit/loss for the period	-	-	-	-	-	-	-	2.4	2.4
Cash flow hedges	-	-	-	-	-1.0	-	-	-	-1.0
Translation differences	-0.0	-	-	-	-	-	0.0	0.0	0.0
Comprehensive income	-0.0	-	-	-	-1.0	-	0.0	2.4	1.3
Dividend distribution	-	-	-	-	-	-	-	-3.1	-3.1
Share-based payments	-	-	-	-	-	-	-	0.1	0.1
Other changes	-0.0	-0.0	0.1	0.1	-0.1	-	-	-0.2	-0.0
Changes in equity total	-0.0	-0.0	0.1	0.1	-1.1	-	0.0	-0.8	-1.7
EQUITY 31.12.2021	12.6	23.4	0.1	-1.2	-1.0	7.2	-0.0	52.1	93.3


	Note 1. Accounting principles

	Company details

	Apetit plc is a Finnish public limited company established under Finnish law. Its registered office is in Säkylä and the registered address is PO Box 100, FI-27801 Säkylä, Finland. Business ID is 0197395-5. The company’s name is Apetit Oyj, in Swedish Apetit Abp and in English Apetit Plc.

	On 15 February 2023, the Apetit Plc Board of Directors approved the financial statements for publication. According to the Finnish Companies Act, shareholders have the option of approving or rejecting the financial statements at the Annual General Meeting held after their publication. The Annual General Meeting also has the opportunity to make a decision to amend the financial statements.

	Main operations

	Apetit Plc is a food industry company listed on the Nasdaq Helsinki Ltd. The trading code of the share is APETIT.

	Apetit’s continuing operations are Food Solutions and Oilseed Products. In addition, Apetit reports Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange, that are not allocated to the business segments. Grain Trade is reported as a discontinued operation starting from the Q1/2022 Business Review. The divestment of the Estonian grain trade business to Scandagra was completed on 10 March 2022, and the divestment of the Lithuanian business was completed on 31 March 2022. The divestment of the Finnish operations of the Grain Trade business to Berner Ltd was completed on 31 May 2022.

	Operating segments	Products and services

	Food Solutions
	Apetit Ruoka Oy	Frozen foods

	Oilseeds Products
	Apetit Kasviöljy Oy	Trade in vegetable oils and protein feed
	Apetit Kantvik Oy	Manufacture of vegetable oils and protein feed

	Group Functions
	Apetit Oyj	Group management, strategic projects and listing on the stock exchange
	Foison Oy	Holding in Apetit Kasviöljy Oy
	Lännen Sokeri Oy	Non-operative company

	Grains and Oilseeds Business
	Apetit Kasviöljy Oy	Trade in grains, oil seeds and animal feedstuff
	UAB Avena Nordic Grain, Lithuania **	Trade in grains, oil seeds and animal feedstuff
	Avena Nordic Grain OÜ, Estonia *	Trade in grains, oil seeds and animal feedstuff
	SIA Avena Nordic Grain, Latvia **	Trade in grains, oil seeds and animal feedstuff
	OOO Avena-Ukraine, Ukraine *	Trade in grains, oil seeds and animal feedstuff

	* Activities ended
	** Company dissolved

	Associated companies
	Sucros group	Manufacture, marketing and sales of sugar
	Foodwest Oy	Food product development company

	Accounting principles


	Consolidation principles

	Control is created if the Group is exposed to a variable return on the investee or is entitled to its variable return and is also able to exercise its power over the investee and thereby affect the amount of return received. Acquisition of subsidiaries is accounted for using the acquisition cost method. Acquisition cost is the aggregate of the consideration given at fair value at the time of acquisition and the amount of liabilities incurred or liabilities assumed. Identifiable assets and liabilities acquired in a business combination are measured initially at fair value at the time of acquisition, regardless of the amount of any minority interest. The amount by which the acquisition cost exceeds the Group's share of the fair value of the identifiable net assets acquired is recognized as goodwill. If the acquisition cost is less than the fair value of the net assets of the acquired subsidiary, this difference is recognized directly in the income statement.

	Subsidiaries are fully consolidated from the date on which control is transferred to the Group and the consolidation ends on the date that control ceases.

	Intra-group transactions, receivables and liabilities as well as unrealised gains from intra-group transactions are eliminated in the consolidated financial statements. Unrealised losses are also eliminated unless the transaction indicates that the value of the transferred asset is impaired.

	Associates are companies in which the Group has significant influence. Significant influence is exercised when the Group owns more than 20% of the voting rights of the company or otherwise has significant influence, but not control. Associates are consolidated in the consolidated financial statements using the equity method. If the Group's share of the losses of the associate exceeds the carrying amount of the investment, the investment is recorded in the balance sheet at zero value and the excess of the carrying amount is not aggregated unless the Group is committed to meeting the obligations of the associates. Unrealised gains between the Group and the associate have been eliminated in accordance with the Group's shareholding. An associate's investment includes goodwill arising from its acquisition.


	Assets held for sale and discontinued operations

	Non-current assets and assets and liabilities related to discontinued operations are classified as held for sale if their carrying amounts are expected to be recovered primarily through sale rather than through continuing use. Classification as held for sale requires that the following criteria are met; the sale is highly probable, the asset is available for immediate sale in its present condition subject to usual and customary terms, the management is committed to the sale, and the sale is expected to be completed within one year from the date of classification.

	Prior to classification as held for sale, the assets or assets and liabilities related to a disposal group in question are measured according to the respective IFRS standards. From the date of classification, non-current assets held for sale are measured at the lower of the carrying amount and the fair value less costs to sell, and the recognition of depreciation and amortization is discontinued. A discontinued operation is a component of an entity that either has been disposed of, or is classified as held for sale, and represents a separate major line of business or geographical area of operations, is part of a single coordinated plan to dispose of a separate major line of business or geographical area of operations or is a subsidiary acquired exclusively with a view to resale.

	The result from the discontinued operations is shown separately in the consolidated statement of income and the comparison figures are restated accordingly. Non-current assets held for sale are presented in the statement of financial position separately from other items. The comparison figures for the statement of financial position are not restated.


	Foreign currency items

	The figures for the financial performance and standing of each of the Group’s units are measured in the currency of the unit’s principal operating environment (‘functional currency’). The consolidated financial statements are presented in euros, which is the functional and reporting currency of the Group’s parent company. Foreign currency transactions are recognised as amounts denominated in the functional currency using the rate prevailing on the transaction date. At the balance sheet date, monetary receivables and payables are translated using the closing rate. Exchange differences arising from translation are recognised in the income statement. Exchange gains and losses from operating activities are included in the corresponding items above the operating profit.

	The income statements of foreign subsidiaries have been translated into euros using average rates for the reporting period, and their balance sheets translated using the closing rates. The exchange difference due to the use of average rates in the income statement translations and closing rates in the balance sheet translations is recognised as a separate item under shareholders’ equity.

	In preparing the consolidated financial statements, the translation difference due to exchange rate fluctuations, in regard to the shareholders’ equity of the subsidiaries and associates, is recognised via other comprehensive income in the translation differences of the consolidated shareholders’ equity. If a foreign subsidiary or associate is disposed of, the accrued translation difference is recognised in the income statement under profit or loss.


	Net sales and revenue recognition

	Sales are recognised at the value that reflects the compensation the company expects to receive from its customers when control is transferred. The Group’s sales in all business segments take place at a single time.

	Food Solutions segment sells frozen vegetables and frozen ready meals to retail chains and food wholesalers operating in Finland and European Union. Finland is the main market area.

	Oilseed Products segment sells vegetable oils and expeller. Sales focus on Finland, but there are also sales to the European Union and third countries.

	Grain Trade that is reported as discountinuing operation sold grains, oilseeds and feed raw materials mainly in Finland and within the European Union, but also in other markets. The largest one-off sales were maritime shipments that were recognised as revenue once control has been transferred to the buyer. Foreign grain trade complied with international delivery and trading terms and conditions, with monetary compensation mainly being transferred at the time of revenue recognition. Grain trade in Finland was primarily based on selling on credit in line with regular terms and conditions.

	The Group has factored a significant part of Finnish trade receivables to a financial institution, which bears e.g. the customer’s credit risk. Foreign credit sales are either factored or hedged with credit insurance. The sale of receivables to a financial institution and the use of credit insurance reduce the Group's counterparty risk. Factored receivables are not included in the consolidated balance sheet.

	Customary terms of payment apply to selling on credit. Some sales include customary bonus or marketing support obligations, which are assessed on an agreement level and regosnised in the income statement and in the balance sheet on accrual basis. The Group’s sales do not involve material guarantees or other liabilities.

	Interest income is recognized using the effective interest method and dividend income when the right to the dividend is recorded.


	Pension liabilities

	A deﬁned contribution plan is a pension plan under which the group pays ﬁxed contributions into a separate entity. The group has no legal or constructive obligations to pay further contributions if the fund does not hold sufﬁcient assets to pay all employees the beneﬁts relating to employee service in the current and prior periods. A deﬁned beneﬁt plan is a pension plan that is not a deﬁned contribution plan.

	Typically deﬁned beneﬁt plans deﬁne an amount of pension beneﬁt that an employee will receive on retirement, usually dependent on one or more factors such as age, years of service and compensation.

	The liability recognised in the balance sheet in respect of deﬁned beneﬁt pension plans is the present value of the deﬁned beneﬁt obligation at the end of the reporting period less the fair value of plan assets. The deﬁned beneﬁt obligation is calculated annually by independent actuaries using the projected unit credit method. The present value of the deﬁned beneﬁt obligation is determined by discounting the estimated future cash outﬂows using interest rates of high-quality corporate bonds that are denominated in the currency in which the beneﬁts will be paid, and that have terms to maturity approximating to the terms of the related pension obligation. In countries where there is no deep market in such bonds, the market rates on government bonds are used.

	Actuarial gains and losses arising from experience adjustments and changes in actuarial assumptions are charged or credited to equity in other comprehensive income in the period in which they arise. Past-service costs are recognised immediately in income.

	For deﬁned contribution plans, the group pays contributions to publicly or privately administered pension insurance plans on a mandatory, contractual or voluntary basis. The group has no further payment obligations once the contributions have been paid. The contributions are recognised as employee beneﬁt expense when they are due. Prepaid contributions are recognised as an asset to the extent that a cash refund or a reduction in the future payments is available.


	Income taxes

	Income taxes recognised in the consolidated income statement comprise taxes levied on an accrual basis on the reporting period results of Group companies, based on the taxable profits calculated for each Group company in accordance with the local tax regulations, as well as tax adjustments from previous periods and changes in deferred tax.

	Deferred tax assets and liabilities are calculated on the temporary differences between the taxable values and the book values of assets and liabilities, in accordance with the liability method. Deferred taxes are recognised in the financial statements using the tax rates that apply up to the balance sheet date.

	The most material temporary differences arise from fixed assets, lease agreements, consolidation, inventories, unused tax losses and revaluation of derivative financial instruments. Deferred tax assets are recognised up to an amount where it is probable that they can be utilized against future taxable profits. Deferred taxes are not recognised on goodwill which is not tax deductible

	In the case of derivative financial instruments covered by hedge accounting and available-for-sale financial assets, the deferred taxes related to value adjustments recognised directly under the statement of comprehensive income are also recognised directly under the statement of comprehensive income.

	Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off tax assets against tax liabilities and when the accrued income taxes are levied on the same tax authority.


	Research and development costs

	Research costs is expensed as incurred. Development costs are recognised on the statement of financial position when all of the following criterias are met:
	- research and development phases can be separated from each other
	- completion is technically feasible so that the asset can be used or sold
	- completion is certain and the asset will be either used or sold
	- it can be demonstrated that the asset will generate probable future economic benefit and that the company has the adequate resources to use or sell the intangible asset
	- development expenditure can be reliably measured

	If the development expenditure does not meet all the above criteria, it is expensed as incurred.


	Intangible assets


	Other intangible assets

	An intangible asset is recognised in the balance sheet at the original acquisition cost in a case where the cost can be determined reliably and it is likely that an expected financial benefit derived from the asset will turn out to be to the company’s benefit.

	Patents, trademarks and other intangible assets with a limited useful life are capitalised in the balance sheet and amortised on a straight-line basis over the period of their useful lives. Intangible assets do not include assets with an unlimited useful life.

	Depreciation period for intangible assets:
	Development costs	5 years
	Other intangible assets	5-10 years

	Assets whose useful life has not yet expired and fully depreciated fixed assets that are still used in operating activities are included in the acquisition cost of assets. Similar principles apply to accumulated depreciation.

	Subsequent expenditure relating to intangible assets is recognised as an asset only if its financial benefit to the company exceeds the originally estimated level of performance. Otherwise the expenditure is recognised as a cost at the time it is incurred.


	Property, plant and equipment

	Property, plant and equipment have been measured at historic acquisition cost less depreciation and impairment. These assets are subject to straight-line depreciation over the period of their useful lives. The residual value of the assets and their useful lives are reviewed each time the financial statements are prepared and, when necessary, are adjusted to reflect any change in the economic benefits expected. Land is not subject to depreciation.

	The estimated useful lives are as follows:
	Property and plant	10-40 years
	Machinery and equipment	5-15 years

	Property, plant and equipment are no longer depreciated when they are classified as assets held for sale.

	Assets whose useful life has not yet expired and fully depreciated fixed assets that are still used in operating activities are included in the acquisition cost of assets. Similar principles apply to accumulated depreciation. Repair and maintenance costs of tangible assets are recognised as expenses when incurred.


	Leases

	Lease agreements are valued to present value by discounting contractual lease payments. The discount rate used in the valuation is the Group's incremental borrowing rate The maturity of a lease agreement is assessed on a contract-by-contract basis and the option to extend is used only when it is highly probable that sush option is to be excercised. The present value of the agreement is recognized in the balance sheet as a right-of-use asset and a right-of-use liability.

	Right-of-use assets depreciated on a straight-line basis over the lease term. The rent payments are allocated to the principal and financial expenses. Financial expenses are calculated from the remaining right-of-use liability using the Group's incremental borrowing rate.

	The Group uses the exemptions permitted by the standard and does not apply the standard to under 12 months short-term and low-value leases. Therefore, payments for short-term leases and low value leases are recognized as expenses on an accrual basis.


	Impairment

	The book values for assets are assessed for any signs of impairment. If there are signs of impairment, an estimate is determined for the amount recoverable on the asset. An impairment loss is recognised if the balance sheet value of the asset or the cash-generating unit exceeds the recoverable amount. Impairment losses are recognised in the income statement.

	The impairment loss of a cash-generating unit is first allocated to reducing the goodwill attributed to the unit, and then to reducing other assets of the unit on a pro rata basis.

	The recoverable amount of intangible, tangible and right-of-use assets is determined at the higher of the fair value less costs to sell and the value in use. In determining the value in use, the estimated future cash flows are discounted to their present value on the basis of discount rates applying to the average pre-tax capital costs of the cash-generating unit in question. The discount rates also take into account any special risk associated with the cash-generating units.

	Impairment losses on tangible, right-of-use and intangible assets other than goodwill are reversed if a change has occurred in the estimates used in determining the recoverable amount of the asset. The amount by which an impairment loss is reversed is no more than the book value (less depreciation) that would have been determined for the asset if no impairment loss had been recognised on it in previous years. Impairment losses recognised on goodwill are not reversed.


	Financial instruments

	The Group’s financial assets are classified into the following categories: financial assets measured at amortised cost and financial assets recognised at fair value through the income statement. This classification is based on the business model according to which the financial asset is managed and on agreement-based cash flow properties. Transaction costs are included in the original book value of the financial assets for items not measured at fair value through the income statement. All purchases and sales of financial assets are recognised on the transaction date. Financial assets recognised at fair value through the income statement include derivatives not covered by hedge accounting and publicly listed shares. Financial assets recognised at amortised cost include trade receivables and certain other receivables.

	The Group may sell trade receivables to financing companies. Sold trade receivables are derecognised on the consolidated balance sheet once payment for the trade receivables has been received from the buyer and all material risks and benefits related to ownership have been transferred to the buyer.

	Cash and cash equivalents in the balance sheet and cash flow statement comprise cash, bank deposits from which withdrawals can be made and other short-term highly liquid investments. Items classified in cash and cash equivalents have a maximum of three months maturity from the acquisition date.

	The Group’s financial liabilities are classified as financial liabilities recognised at amortised cost and financial liabilities recognised at fair value through the income statement. Financial liabilities recognised at amortised cost include trade payables and other liabilities and loans. Financial liabilities recognised at fair value through the income statement include derivatives that do not meet the criteria for hedge accounting. Unrealised and realised gains and losses related to changes in the fair values of such derivatives are recognised through the income statement for the period during which they arise.

	Financial assets and liabilities recognised at fair values are measured primarily using publicly quoted prices. Market prices are normally available for commodity derivatives used by the Group. If publicly quoted prices are not available, fair value is measured with standardized valuation methods using for example interest rates and discounted cash flows and price quotations from market counterparties.

	Financial liabilities are originally recognised at fair value less transaction costs directly related to the acquisition or issuance of the item in question. Financial liabilities, excluding derivative liabilities, are later measured at amortised cost using the effective interest method. Financial liabilities are included in non-current and current liabilities, and they may be interest-bearing or non-interest-bearing.

	The Group determines impairment of financial assets measured at amortised cost based on expected credit losses. The estimate of a valuation allowance concerning expected credit losses is based on experiences of actual credit losses, considering the financial conditions at the time of examination and an estimate of future expectations. Trade receivables are derecognised on the balance sheet as final credit losses once it is no longer reasonable to expect payment for them. An indication of final payment failure is for example a payment being overdue by more than 90 days. If payment is later received for items recognised as final credit losses, the payment is recognised as offset on the same line in the income statement.

	Derivative financial instruments are initially recognised at fair value on the date a contract is entered into and are subsequently re-measured at their fair value. The Group applies cash flow hedge accounting to certain interest rate swaps, forward currency and commodity derivative contracts. When hedging is initiated, the financial relationship between hedging instruments and hedged items is documented and whether changes in the cash flows of hedged items are expected to offset the changes in the cash flows of hedging instruments. In addition, the objectives of risk management and strategies for taking hedging actions are documented. The hedged cash flow must be highly probable, and the cash flow must ultimately affect the income statement.

	For hedges that meet the terms for hedge accounting, the effective portion of the change in fair value of a hedge is recognised in the statement of comprehensive income until the hedged transaction affects the income statement. Any residual ineffective portion for interest rate and currency derivatives is recognised to financial items and for commodity derivatives to other operating income or expenses. The cumulative change in fair value recognised in other comprehensive income is recognised to purchases or sales or financial items based on their nature on the same date that the cash flow from the hedged transaction is recognised in the income statement. When a derivative financial instrument expires, is sold or does not meet the hedge accounting criteria, the cumulative change in the fair value of the hedging instrument will remain in the hedge reserve and is recognised in income statement on the same date that the cash flow of the hedged item is recognised in the income statement. The cumulative fair values of the hedging instruments are transferred immediately from the hedge reserve to other operating income or expense or financial items based on their nature if the hedged cash flow is no longer expected to occur.

	Despite certain hedging relationships fulfil the effective hedging requirements of the Group’s risk management policy, the Group does not apply hedge accounting to all transactions done in hedging purpose. These instruments’ fair value changes are recognised in other operating income or expense or financial items based on their nature.


	Accounting principles requiring executive judgement and the main uncertainties concerning the assessments made

	In preparing the consolidated financial statements in accordance with international accounting practices, the company’s management has had to make assessments and assumptions that affect the amount of assets, liabilities, income and expenses recognised in the accounts and the contingencies presented. These assessments and assumptions are based on experience and on other reasonable suppositions that are believed to be realistic in the circumstances that constitute the basis for the estimates of items recognised in the financial statements. The outcome may deviate from these estimates.
	The Group tests annually goodwill from the associated company Sucros Oy and from Frozen foods products for possible impairment and assesses any indication of impairment. The recoverable amounts of units that generate cash flow are based on value in use calculations. These calculations require the use of estimates.

	Determination of the fair value of tangible and intangible assets acquired in business combinations requires estimations by management and is often based on assessment of asset cash flows.

	The utilization of deferred tax assets against future taxable income is assessed annually based on management's assessment.

	Other assessments including management judgement are mainly related to restructuring plans, the extent of obsolescent inventories, environmental, litigation and tax risks.



	Preparation of financial statements in ESEF format

	The financial statements are reported in electronic ESEF format. The main statements of the financial statements and disclosures are marked with the XBRL taxonomy. The ESEF fromat financial statements have been reviewed by the auditor .

	New IFRS standards and IFRIC interpretations

	The new IFRS standards, amendments to standards and IFRIC interpretations effective after the end of the financial year are not expected to have a material impact on the Group.


	Note 2. Operating segments

The segment information is based on the Group's organisation and management reporting structure.

Apetit’s continuing operations are Food Solutions and Oilseed Products. In addition, Apetit reports Group Functions, consisting of the expenses related to Group management, strategic projects and listing on the stock exchange, that are not allocated to the business segments.

Grain Trade is reported as a discontinued operation starting from the Q1/2022 Business Review. The divestment of the Estonian grain trade business to Scandagra was completed on 10 March 2022, and the divestment of the Lithuanian business was completed on 31 March 2022. The divestment of the Finnish operations of the Grain Trade business to Berner Ltd was completed on 31 May 2022.

Intra-group sales take place at arm’s length prices. The assets and liabilities of a segment are such items of the business operations that the segment uses in its business operations or that can be allocated to a segment on reasonable basis. Tax and financing items together with items common to the whole Group are unallocated assets and liabilities. Reported figures are based on IFRS standards.



1-12/2022
EUR million	Food solutions	Oilseed products	Group Functions	Continuing Operations	Discontinued Operations	Apetit Group

Segment net sales	64.2	118.2	-	182.3	67.2	249.5
Intra-group net sales	-0.0	-0.6	-	-0.6	-17.0	-17.7
Net sales	64.2	117.5	-	181.7	50.1	231.8

OPERATING PROFIT	4.2	1.5	-2.2	3.5	2.7	6.2

Assets	42.2	34.2	-	76.3	0.1	76.4
Unallocated						40.9
Total assets	42.2	34.2	-	76.3	0.1	117.3

Liabilities	12.4	7.1	-	19.5	0.8	20.2
Unallocated						1.1
Total liabilities	12.4	7.1	-	19.5	0.8	21.3

Gross investments in non-current assets	4.3	0.7	0.1	5.0	-	5.0
Business acquisitions and other investments	-	-	0.0	0.0	0.0	0.0

Depreciation and amortisation	3.4	1.6	0.7	5.7	0.4	6.1
Impairment	0.0	0.0	-	0.0	0.1	0.1

Personnel, FTE	230	47	11	288	16	303


1-12/2021
EUR million	Food solutions	Oilseed products	Group Functions	Continuing Operations	Discontinued Operations	Apetit Group

Segment net sales	61.5	88.1	-	149.6	164.5	314.1
Intra-group net sales	-0.0	-0.5	-	-0.5	-29.7	-30.2
Net sales	61.5	87.6	-	149.1	134.8	283.9

OPERATING PROFIT	5.9	2.0	-2.2	5.8	-3.0	2.8

Assets	37.6	45.2	-	82.7	37.1	119.8
Unallocated						37.3
Total assets	37.6	45.2	-	82.7	37.1	157.1

Liabilities	12.8	7.5	-	20.3	14.3	34.6
Unallocated						29.2
Total liabilities	12.8	7.5	-	20.3	14.3	63.8

Gross investments in non-current assets	2.0	3.7	0.9	6.6	0.0	6.6

Depreciation and amortisation	3.3	1.3	0.7	5.3	1.0	6.3
Impairment	0.0	-	-	0.0	-	0.0

Personnel, FTE	232	42	12	286	51	337


Geographical information
	Net sales		Non-current assets
EUR million	2022	2021	2022	2021

Finland	189.4	175.4	64.9	67.9
Norway	21.6	16.7	-	-
Germany	5.0	19.4	-	-
Sweden	6.6	6.2	-	-
Other countries	9.2	66.2	-	0.1
Total	231.8	283.9	64.9	68.0

The group had two customers whose turnover exceeded 10% of the entire group's turnover. The turnover of customer a) was 27.2 million euros (11.7%) and it was accumulated from the Food Solutions and Oilseed Products segments. The turnover of customer b) was 24.9 million euros (10.8%) and it was accumulated from the Oilseed Products and Grain Trade segments.


	Note 3. Discontinued operations and non-current assets held for sale


Discontinued operations

Discontinued operations includes the Grain Trading business unit, which was classified as a discontinued operation in March 2022. On March 23, 2022, Apetit announced that it had agreed to sell Avena's domestic grain trading business and the grain warehouses and port operations located in Finland to Berner Ltd. The transaction was completed on May 31, 2022. Already on December 28, 2021, Apetit announced that its subsidiary Avena Nordic Grain had agreed to sell the Baltic operations of the Grain Trade business unit to the Scandagra Group, including the business of Avena's Estonian and Lithuanian companies. The transaction with Scandagra Group was completed in March 2022.

Result from discontinued operations

EUR million	1-12/2022	1-12/2021
REVENUE	67.2	164.5
Other income and expense items	-64.5	-167.4
OPERATING PROFIT	2.7	-3.0
Financial income and expense	-0.2	-0.6
PROFIT/LOSS BEFORE TAX	2.5	-3.5
Tax on income from operations	-0.4	0.6
PROFIT/LOSS FOR THE PERIOD	2.0	-2.9

Cash flow

EUR million	1-12/2022	1-12/2021
Net cash from operating activities	6.9	6.0
Net cash used in investing activities	16.4	-0.0
Net cash used in financing activities	-23.3	-6.0
Net change in cash and cash equivalents	-	-

Consideration received

EUR million	1-12/2022
Cash received	16.8
Costs attributable to the sales of business and adjustments to consideration	-0.4
Carrying amount of net assets sold	-14.0
Gain on sale before income tax	2.3
Income tax expense	-0.5
Gain on sale after income tax	1.9

Gain on sale before income tax is included in Income and Expenses in the Result for the period, discontinued operations.

Carrying amount of net assets sold

EUR million	1-12/2022
Tangible assets	1.2
Inventories	13.1
Trade payables and other liabilities	-0.3
Net assets sold	14.0


Non-current assets and relating liabilities held for sale

Baltic operations of the Grain Trade

EUR million	1-12/2022	1-12/2021
Tangible assets	-	0.1
Non-current assets held for sale	-	0.1


Note 4. Other operating income and expenses

EUR million	1-12/2022	1-12/2021


Other operating income
Government subsidies	0.1	0.1
Gain on disposal of non-current assets, tangibles	-	0.1
Rental income	0.2	0.2
Other operating income	0.9	0.5
Total	1.2	0.9


Other operating expenses
Rents and leases	1.6	1.5
Administrative expenses	1.2	1.0
IT and communication expenses	1.5	1.4
Sales and marketing expenses	2.3	2.6
Maintenance expenses	4.4	4.0
Other selling expenses	4.2	3.6
Other items	3.2	3.4
Total	18.5	17.5


Audit fees paid by the Group to its independent auditor

EUR million	1-12/2022	1-12/2021

Regular statutory audit services	0.1	0.2
Other statutory audit services	0.0	0.0
Tax advisory	-	-
Other services	-	-
Total	0.1	0.2


Note 5. Employee benefits expense

EUR million	1-12/2022	1-12/2021

Salaries and fees	14.5	13.6
Pension expenses	2.6	2.4
Other employee benefit	0.8	0.6
Total	17.9	16.5


Note 7. Materials and services

EUR million	1-12/2022	1-12/2021

Purchases during the period	130.4	111.4
Change in stocks	3.5	-9.6
External services	3.4	2.9
Total	137.3	104.7


Note 8. Depreciation, amortisation and impairment

EUR million	1-12/2022	1-12/2021

Depreciation
Intangible assets	0.4	0.5
Buildings	1.7	1.6
Machinery and equipment	2.7	2.5
Right-of-use assets	0.8	0.7
Other tangible assets	0.0	0.0
Total	5.7	5.3


Impairment
Tangible assets	0.0	0.0
Total	0.0	0.0


Finance income
Interest income	0.5	0.8
Foreign exchange gain	0.0	0.0
Other financial income	0.1	0.0
Total	0.6	0.8


Finance expense
Interest on borrowings from others	0.4	0.4
Foreign exchange loss	0.0	-
Other financial expenses	0.3	0.2
Total	0.8	0.7


Note 10. Income taxes

EUR million	1-12/2022	1-12/2021

Tax on income from operations
Tax on income from operations	-	-0.0
Tax for previous accounting periods	0.0	0.0
Change in deferred tax asset	-0.4	-1.3
Change in deferred tax liability	-0.2	0.1
Total	-0.7	-1.1


Tax calculation
Accounting profit before taxes	3.8	6.4

Tax at the domestic rate	-0.8	-1.3
Tax for previous accounting periods	0.0	0.0
Effect of associated company results	0.1	0.1
Other items	0.0	0.1
Taxes in income statement	-0.7	-1.1

Income tax expense is attributable to
Continuing operations	-0.7	-1.1
Discontinued operations	-0.4	0.6
Total	-1.1	-0.5


Note 11. Deferred tax assets and liabilities

Reconciliation of deferred tax assets and liabilities to balance sheet

EUR million	1.1.2022	Recognised in income statement	Recognised in other comprehensive income	Recognised directly in equity	31.12.2022

Deferred tax assets
Carry forward of unused tax losses	4.4	-1.0		-	3.3
Deferred depreciation	0.5	0.0		-	0.5
Intangible and tangible assets	0.0	-0.0		-	0.0
Derivative instruments	0.2		-0.0	-	0.2
Other items	0.2	-0.0		-	0.2
Total deferred tax assets	5.2	-1.0	-0.0	-	4.2
Offset against deferred tax liabilities	-1.0				-1.0
Net deferred tax assets	4.2				3.2

Deferred tax liabilities
Accumulated depreciation difference	0.2	-0.1		-	0.1
Inventories	-0.8	0.1		-	-0.7
Intangible and tangible assets	-0.4			-	-0.4
Derivative instruments	-0.0		0.0	-	-
Other items	-0.1	0.0		-	-0.1
Total deferred tax liabilities	-1.2	0.1	0.0	-	-1.1
Offset against deferred tax assets	1.0				1.0
Net deferred tax liabilities	-0.1				-0.1

Apetit has not unrecognised deferred tax assets related to taxable losses. The taxable losses will expire in 2025 - 2031. Apetit has assessed if there will be sufficient taxable profit against which the losses can be utilised. The Group has estimated that the deferred tax assets will be fully recoverable during the next few years. The group has 0.2 million other deferred tax assets not recognised in the balance sheet.

EUR million	1.1.2021	Recognised in income statement	Recognised in other comprehensive income	Recognised directly in equity	31.12.2021

Deferred tax assets
Carry forward of unused tax losses	4.9	-0.5	-	-	4.4
Deferred depreciation	0.5	0.0	-	-	0.5
Intangible and tangible assets	0.0	0.0	-	-	0.0
Derivative instruments	0.0	-	0.2	-	0.2
Other items	0.2	0.0	-	-	0.2
Total deferred tax assets	5.5	-0.5	0.2	-	5.2
Offset against deferred tax liabilities					-1.0
Net deferred tax assets					4.2

Deferred tax liabilities
Accumulated depreciation difference	0.1	0.2	-	-	0.2
Inventories	-0.8	-0.1	-	-	-0.8
Intangible and tangible assets	-0.4	-	-	-	-0.4
Derivative instruments	-0.1	-	0.1	-	-0.0
Other items	-0.1	0.0	-	-0.0	-0.1
Total deferred tax liabilities	-1.4	0.1	0.1	-0.0	-1.2
Offset against deferred tax assets					1.0
Net deferred tax liabilities					-0.1


Note 12. Earnings per share

Basic earnings per share is calculated by dividing the result for the financial year attributable to the shareholders of the parent company by weighted average number of the shares outstanding. The outstanding shares do not include treasury shares in possession of the company. Diluted earnings per share is calculated by dividing the result for the financial year attributable to the shareholders of the parent company by diluted weighted average number of the shares outstanding.
Earnings per share are diluted by the matching share plan issued for the key personnel.

EUR million	1-12/2022	1-12/2021

Result attributable to the shareholders of the parent company, continuing operations	3.2	5.3
Result attributable to the shareholders of the parent company, discontinued operations	2.0	-2.9
Result attributable to the shareholders of the parent company, Group	5.2	2.4

Weighted average number of outstanding shares, basic (pcs)	6,239,744	6,234,286
Weighted average number of outstanding shares, diluted (pcs)	6,244,744	6,239,419

Basic earnings per share, continuing operations (EUR/share)	0.51	0.85
Basic earnings per share, discontinued operations (EUR/share)	0.33	-0.47
Basic earnings per share, Group (EUR/share)	0.83	0.38

Diluted earnings per share, continuing operations (EUR/share)	0.51	0.85
Diluted earnings per share, discontinued operations (EUR/share)	0.33	-0.47
Diluted earnings per share, Group (EUR/share)	0.83	0.38


	Note 13. Intangible and tangible assets, leases and goodwill


Goodwill and impairment testing

Impairment test for cash-generating units containing goodwill

Goodwill has been allocated to the following cash-generating units or groups of units:

EUR million	1-12/2022	1-12/2021

Frozen products	0.4	0.4
Total	0.4	0.4

In impairment testing, the recoverable amount from operating activities is determined on the basis of value in use calculations. Expected future cash flows are based on management-approved forecasts and are given for a five-year period, and cash flows beyond this are extrapolated using a growth factor of 1%.

Frozen product goodwill impairment testing

The key variables in the value in use calculation are forecasted net sales, gross margin, EBIT, change in working capital and discount rate. The pre-tax discount rate used is 7.5%. In Frozen products the value in use exceeded the carrying amount of the tested assets by a wide margin and significant negative change in any of the key variables would not result to an impairment.


Intangible assets

EUR million	Development costs	Other intangible assets	Advance payments for intangible assets	Goodwill	Total

Acquisition cost 1.1.2022	1.2	12.0	0.3	0.4	13.8
Additions	0.2	0.1	-0.0	-	0.3
Disposals	-	-0.8	-	-	-0.8
Reclassifications	-	-0.1	-0.3	-	-0.3
Acquisition cost 31.12.2022	1.4	11.2	-	0.4	12.9

Cumulative amortisation and impairment 1.1.2022	-0.3	-11.3		-	-11.6
Cumulative amortisation on disposals and reclassifications	-	0.7		-	0.7
Amortisation	-0.1	-0.3		-	-0.5
Cumulative amortisation and impairment 31.12.2022	-0.5	-10.9	-	-	-11.3

Carrying amount 1.1.2022	0.8	0.7	0.3	0.4	2.2
Carrying amount 31.12.2022	0.9	0.3	-	0.4	1.6


EUR million	Development costs	Other intangible assets	Advance payments for intangible assets	Goodwill	Total

Acquisition cost 1.1.2021	1.0	12.6	0.6	0.4	14.7
Translation differences	-	0.0	-	-	0.0
Additions	0.1	0.0	-0.0	-	0.2
Disposals	-	-1.0	0.0	-0.0	-1.0
Reclassifications	-0.0	0.3	-0.3	-	-
Acquisition cost 31.12.2021	1.2	12.0	0.3	0.4	13.8

Cumulative amortisation and impairment 1.1.2021	-0.2	-11.8		-	-12.0
Translation differences	-	-0.0		-	-0.0
Cumulative amortisation on disposals and reclassifications	0.0	1.0		-	1.0
Amortisation	-0.2	-0.4		-	-0.6
Cumulative amortisation and impairment 31.12.2021	-0.3	-11.3	-	-	-11.6

Carrying amount 1.1.2021	0.9	0.8	0.6	0.4	2.7
Carrying amount 31.12.2021	0.8	0.7	0.3	0.4	2.2


Tangible assets

EUR million	Land and water	Land and water, right-of-use	Buildings and structures	Buildings and structures, right-of-use	Machinery and equipment	Machinery and equipment, right-of-use	Other tangible assets	Advance payments and work in progress	Total

Acquisition cost 1.1.2022	3.0	0.3	41.2	7.9	52.3	0.7	0.5	0.8	106.7
Additions	-	-	1.9	0.8	2.6	0.2	-	0.4	5.8
Disposals	-	-0.3	-1.8	-2.9	-0.8	-0.2	-0.1	-	-6.1
Reclassifications	-	-	0.0	-	0.8	-	-	-0.7	0.1
Acquisition cost 31.12.2022	3.0	-	41.4	5.8	54.9	0.6	0.4	0.4	106.5

Cumulative amortisation and impairment 1.1.2022	-0.2	-0.2	-25.3	-5.1	-33.8	-0.5	-0.2		-65.4
Cumulative amortisation on disposals and reclassifications	-	0.2	0.6	2.3	0.9	0.1	0.1		4.2
Amortisation		-0.0	-1.7	-1.0	-2.7	-0.1	-0.0		-5.6
Impairment	-	-	-	-	-0.0	-	-		-0.0
Cumulative amortisation and impairment 31.12.2022	-0.2	0.0	-26.4	-3.9	-35.7	-0.4	-0.2		-66.8


Carrying amount 1.1.2022	2.8	0.1	15.9	2.7	18.4	0.2	0.3	0.8	41.3
Carrying amount 31.12.2022	2.8	0.0	15.0	1.9	19.2	0.2	0.2	0.4	39.7


EUR million	Land and water	Land and water, right-of-use	Buildings and structures	Buildings and structures, right-of-use	Machinery and equipment	Machinery and equipment, right-of-use	Other tangible assets	Advance payments and work in progress	Total

Acquisition cost 1.1.2021	3.0	1.5	42.0	7.0	45.0	0.6	0.5	4.6	104.2
Translation differences	-	-	-	-	0.0	-	-	-	0.0
Additions	-	0.0	1.1	0.9	4.3	0.2	-	1.0	7.5
Disposals	-	-1.2	-3.3	-	-0.4	-0.1	-	-	-5.0
Revaluation	-	-	-	-	-	-	-	0.0	0.0
Reclassifications	-	-	1.4	-	3.4	-	-	-4.8	-
Reclassification to non-current HFS assets	-	-	-	-	-0.1	-	-	-	-0.1
Acquisition cost 31.12.2021	3.0	0.3	41.2	7.9	52.3	0.7	0.5	0.8	106.7

Cumulative amortisation and impairment 1.1.2021	-0.2	-0.2	-26.9	-3.9	-31.6	-0.5	-0.2		-63.5
Translation differences	-	-	-	-	-0.0	-	-		-0.0
Cumulative amortisation on disposals and reclassifications	-	-	3.3	-	0.3	0.1	-		3.7
Amortisation		-0.0	-1.7	-1.3	-2.6	-0.1	-0.0		-5.7
Cumulative amortisation and impairment 31.12.2021	-0.2	-0.2	-25.3	-5.1	-33.8	-0.5	-0.2		-65.4


Carrying amount 1.1.2021	2.8	1.3	15.1	3.1	13.4	0.2	0.3	4.6	40.7
Carrying amount 31.12.2021	2.8	0.1	15.9	2.7	18.4	0.2	0.3	0.8	41.3


Leases

Amounts recognised in balance sheet

EUR million	31.12.2022	31.12.2021

Right-of-use assets
Land and water areas	-	0.1
Buildings and structures	1.9	2.7
Machinery and equipment	0.2	0.2
Total	2.1	3.0

Lease liabilities
Non-current lease liability, interest-bearing	1.2	1.8
Current lease liability, interest bearing	0.9	1.4
Total	2.1	3.2

Expected maturity analysis of lease liabilities is presented in note 25.

An energy plant is under construction in connection with the Säkylä factory, which upon completion will be capitalized in the balance sheet in accordance with the IFRS16 standard. The energy plant is estimated to be completed in June 2023 and its balance sheet value according to IFRS 16 is estimated to be EUR 7.0 million.

Amounts recognised in income statement

EUR million	1-12/2022	1-12/2021

Depreciation of right-of-use assets
Land and water areas	0.0	0.0
Buildings and structures	1.0	1.3
Machinery and equipment	0.1	0.1
Total	1.1	1.4

Interest expenses	0.0	0.1

Expenses relating to short-term leases	0.1	0.3
Expenses relating to leases of low-value	0.0	0.0
Expenses relating to variable lease payments	1.1	1.2

Cash outflow for leases	2.8	3.0

The Group's leasing activities and realted accounting principles
The Group leases land, warehouses, offices, equipment and vehicles. Rental contracts are typically concluded for fixed periods of 2 months to 15 years, but may have extension options as described below.

Contracts may contain both lease and non-lease components. The Group allocates the consideration in the contract to the lease and non-lease components based on their relative stand-alone prices.

The terms of the leases are negotiated on a case by case basis. Leases do not include covenants other than the lessor's interest on the leased assets. Leased assets are not used as collateral for loans.

Accounting principles of lease agreements are described in details in Note 1. Accounting principles

Variable lease payments
Some warehouse leases contain variable payment terms that are linked to volume generating from stock movements through the warehouse. Variable lease payments that depend on volume are recognised in the income statement in the period in which the condition that triggers those payments occurs.

Extension and termination options
Extension and termination options are included in a number of lease agreements. Options are used to maximise operational flexibility in terms of managing the assets used in the group's operations. The majority of extension and termination options held are exercisable only by the Group and not by the respective lessor.

Critical judgements in determining the lease term
All facts and circumstances that create an economic incentive to exercise an extension option, or not exercise a termination option are assessed when defining the lease period. Extension options (or periods after termination options) are only included in the lease period if the lease is reasonably certain to be extended (or to be terminated).

Residual value guarantees
The Group has no residual value guarantees.


Note 14. Shares in associated companies

EUR million	1-12/2022	1-12/2021

Book value, 1 January	19.9	19.7
Share of results for the period	0.5	0.4
Dividends received	-0.3	-0.2
Book value, 31 December	20.1	19.9

Group's holding in Sucros Group totals to 20 %. The book value of the shares in Sucros totalled to EUR 19.8 million.
Associated companies are consolidated using the equity method and they do not have public quotations.
Principles of goodwill impairment testing have been presented in Note 13.

Financial information for material associated company

Sucros Group's financial year ends on February 28. Sucros Goup has been consolidated based on the interim financial statement per 31.12.2022

Sucros Group's published FAS-financial statement

EUR million	03/2021 - 02/2022	03/2020 - 02/2021

Non-current assets	22.2	20.5
Current assets	81.1	82.9
Cash and cash equivalents	0.6	2.8
Asset	104.0	106.2

Equity	93.4	92.8
Deferred tax liability	1.1	0.9
Current liabilities	9.5	12.6
Equity and liabilities	104.0	106.2

Net sales	105.0	112.4
Operating income and expenses	-103.0	-111.0
Operating result	2.0	1.4
Financial income and expenses	-0.1	-0.0
Taxes	-0.3	0.2
Profit / loss for the period	1.6	1.6

Breakdown of Sucros holdings in the consolidated financial statements

EUR million	1-12/2022	1-12/2021

Book value, 1 January	19.6	19.4
Profit / loss for the period	0.5	0.4
Dividends received	-0.3	-
Book value, 31 December	19.8	19.6


Note 15. Other non - current financial assets

EUR million	31.12.2022	31.12.2021

Connection fees	0.3	0.3
Investments in shares of unlisted companies	0.0	0.0
Other non-current receivables	0.0	-0.0
Total	0.3	0.3

Note 16. Non - current receivables

EUR million	31.12.2022	31.12.2021

Non-current trade and other receivables	0.0	0.0
Total	0.0	0.0


Note 17. Trade receivables and other current receivables

EUR million	31.12.2022	31.12.2021

Trade receivables	6.6	5.3
Receivables based on derivative instruments	-	0.2
Accrued income and deferred expenses	0.6	4.9
Other receivables	0.2	0.4
Trade receivables from associates	0.2	0.0
Total	7.5	10.8

The substantial items in the accrued income and deferred expenses and other receivables are related to raw material purchases and accruals of employment benefits.

During the financial year the Group recorded credit losses of EUR 0.0 (0.0) million on trade receivables.


Note 18. Inventories

EUR million	31.12.2022	31.12.2021

Raw materials and consumables	8.2	15.2
Work in progress	7.4	6.8
Finished goods	14.5	48.8
Total	30.1	70.8

A write-down of EUR 0.1 (0.0) million in inventory value was booked to correspond the net realisation value.


Note 19. Cash and cash equivalents

EUR million	31.12.2022	31.12.2021

Cash and cash equivalents	14.8	7.5
Total	14.8	7.5


Note 20. Shareholders' equity

EUR million	31.12.2022	31.12.2021

Number of shares	6,317,576	6,317,576
Otstanding shares	6,239,908	6,238,923
Number of own shares	77,668	78,653
Own shares' share of the company's share capital and voting rights	1.2	1.2

Acquisition cost of own shares	-1.1	-1.2

Share capital	12.6	12.6
Share premium	23.4	23.4
Total	36.0	36.0

The fully paid and registered share capital of the company at the end of the financial year was EUR 12,635,152. The nominal value of a share is EUR 2.


	Descriptions of the funds in equity

	Translation differences
	The translation differences reserve includes translation differences arising from the translation of the financial statements prepared in foreign currency.

	Fair value reserve
	The fair value reserve includes a hedging reserve for the revaluation of the fair values of derivative instruments used for cash flow hedges.

	Invested non-restricted equity capital
	The invested non-restricted equity capital includes the share subscription price to the extent that it is not recognised in the share capital. The amount consists of the directed share issue related to the matching share plan carried out in 2021, in which a total of 8,000 shares were subscribed at the price of 13.91 euro per share.

	Other reserves
	Other reserves consist of the parent company's contingency reserve that includes a portion transferred from retained earnings by decision of the Annual General Meeting.


	Own shares
	Own shares include the acquisition cost of own shares that are in the Group’s possession. At the end of the year the Group had 77,668 of it's own shares in possession. The acquisition cost of the own shares that are in the Group's possession totals EUR 1.1 million. The own shares represent 1.2% of the company’s share capital and votes.


Note 21. Defined benefit plan obligations

EUR million	2022	2021

Pension obligations 1 Jan.	0.2	0.2
Increases / decreases	-0.0	0.1
Pension obligations 31 Dec.	0.2	0.2

Pension obligations relate mainly to defined benefit pension plans.

Apetit Group’s most significant benefit plans are in the parent company. Parent company’s plans include 48 pensioners. Plans are administered in pension companies. Parent company’s defined benefit obligation totals to EUR 1.2 (1.5) million and plan assets totals to EUR 1.0 (1.3) million. Net liability totals to EUR 0.2 (0.2) million.

EUR million	2022	2021

The amounts recognised in the balance sheet are determined as follows:
Present value of funded obligations	1.2	1.6
Fair value of plan assets	1.0	1.3
Net liability (+) / asset (-)	0.2	0.2

Change in the defined benefit obligation
Defined benefit obligation in the beginning of the year	1.6	1.7
Interest expenses	0.0	0.0
Actuarial gains (-) and losses (+)	-0.2	0.1
Benefits paid	-0.2	-0.2
Defined benefit obligation at the end of the year	1.2	1.6

Change in plan assets
Plan assets in the beginning of the year	1.3	1.5
Interest income	-0.2	0.0
Contributions paid into the plans	0.0	0.0
Benefits paid	-0.2	-0.2
Plan assets at the end of the year	1.0	1.3

EUR million	2022	2021

Defined benefit expense in income statement
Interest cost on pension obligation	0.0	0.0
interest income on plan assets	-0.0	-0.0
Pension expense recognised in income statement	0.0	0.0

The amounts recognised in equity
Gains and losses from change of financial assumptions	-0.2	0.0
Experience gains and losses	0.0	0.0
Return on plan assets excluding interest	0.2	-0.0
Remeasurements of post employment benefit obligations	0.0	0.1

Significant actuarial assumptions
Discount rate (%)	3.8	0.7
Pension growth rate (%)	2.9	2.4
Inflation (%)	2.6	2.1

	Pension liability
Changes in the assumptions, sensitivity 2022	Increase %	Decline %
Discount rate, change 0,5%	-2.9	3.1
Pension payments growth rate, change 0.25 %	1.4	-1.4
Life expectancy, change 5%	-2.7	2.9

	Pension liability
Changes in the assumptions, sensitivity 2021	Increase %	Decline %
Discount rate, change 0,5%	-3.4	3.7
Pension payments growth rate, change 0.25 %	1.9	-1.8
Life expectancy, change 5%	3.0	-3.2

Sensitivity analysis relate to Apetit plc's benefit plan.


Note 22. Share-based payments

Share - based incentive plans
The Board of Directors of Apetit Plc ("Apetit") has during year 2021 decided to establish a matching share plan 2021-2023 and a performance share plan 2021-2023, in which any bonus will be paid as a combination of Apetit Plc's shares and cash. At the start of the programs, the members of the Group Management Team are entitled to participate in the incentive schemes. The purpose of the cash element is to cover taxes and tax-like payments to the key personnel arising from the portion settled in shares.

Matching share plan
The matching share plan consists of the key personnel's own investment in the company's shares and the right to receive one additional share free of charge against each share acquired and held until the end of the vesting period ending March 15, 2023 as well as cash compoonent corresponding to the number of shares. In addition to the self-investment, the vesting is dependent on continuing employment. A maximum of 8,000 new or treasury shares and a cash payment equivalent to the value of shares can be given in the matching share plan.

Performance share plan
In the performance share plan, the potential vesting and amount of payment is depending Apetit Group's operating profit for the period from April 1, 2021 to March 31, 2023 and the person's continuing employment. If the set performance targets are achieved in full, the maximum amount of shares to be transferred under the plan is 10,478 new or treasury shares and a cash payment equivalent to the value of shares can be given in the matching share plan.

Annual remuneration of Apetit Plc 's Board members
The annual remuneration for Apetit Plc's Board members is a fixed amount in euros. From April 1, 2022, the remuneration will be paid entirely in cash. Until March 31, 2022, 40% of the remuneration was paid in Apetit Plc shares and 60% in cash. The number of shares to be paid was calculated based on the stock exchange price of the Apetit Plc share at the time of payment. The portion paid in shares was recognized as expense against equity and the cash portion against liability / cash account.



Basic information of the plans	Matching share plan 2021-2023	Performance share plan 2021-2023
Maximum number of shares granted, pcs	8,000	10,478
Grant date	12.5.2021	23.4.2021
Vesting period ends	15.3.2023	15.6.2023
Life time of the plan, years	1.8	2.1
Remaining life time at the balance sheet date, years	0.2	0.5
Employment condition	Yes	Yes
Requirement of own-purchase and holding of shares	Yes	No
Other non-market based performance conditions	No	Yes
Settlement method	50%/50% in shares/cash	50%/50% in shares/cash

Valuation principles
Share price at grant date, eur	13.91	14.15
Expected dividends per share during the vesting period, eur per share	1.00	1.50
Fair value in accordance with IFRS 2 at grant date, eur per share	12.91	12.65
Maximum value of the scheme at grant date, 1000 eur	207	265

Changes during the period, shares
Amount outstanding at the beginning of the period	-	-
Granted during the period	8,000	10,478
Forfeited during the period	-3,600	-4,716
Outstanding at the end of the period	4,400	5,762

EUR 1 000

Recognized as an expense against equity during the period	29	-
Recognized as an expense during the period, against liability	17	-
Total expense during the financial year	47	-

Debt balance at the end of reporting period	52	-


Note 23. Interest-bearing liabilities

EUR million					2022	2021

Non-current liabilities, interest-bearing
Non-current lease liability, interest-bearing					1.2	1.8
Total					1.2	1.8

Loans from credit institutions have floating interest rates. All interest-bearing non-current liabilities are denominated in euros.

Current interest-bearing liabilities
Commercial papers					-	28.0
Current loans from financial institutions, interest-bearing					-	1.1
Current lease liability, interest bearing					0.9	1.4
Total					0.9	30.5


Reconciliation Interest-bearing liabilities

EUR million	Commercial papers	Non-current loans from credit institutions	Current loans from credit institutions	Non-current lease liabilities	Current lease liabilities	Total

Interest-bearing liabilities 1.1.2022	28.0	-	1.1	1.8	1.4	32.3
Lease liabilities additions				1.0		1.0
Lease liabilities disposals				-0.8		-0.8
Cash flows	-28.0	-	-1.1	-0.7	-0.5	-30.3
Interest-bearing liabilities 31.12.2022	-	-	-	1.2	0.9	2.1

EUR million	Commercial papers	Non-current loans from credit institutions	Current loans from credit institutions	Non-current lease liabilities	Current lease liabilities	Total

Interest-bearing liabilities 1.1.2021	15.0	0.5	1.5	3.4	1.3	21.7
Lease liabilities additions				1.1		1.1
Lease liabilities disposals				-1.2		-1.2
Cash flows	13.0	-0.5	-0.4	-1.5	0.1	10.7
Interest-bearing liabilities 31.12.2021	28.0	-	1.1	1.8	1.4	32.3


Note 24. Trade payables and other liabilities

EUR million	1-12/2022	1-12/2021

Non-current
Non-current derivatives, interest-free	-	0.1
Total	-	0.1


Current
Trade payables	8.6	21.9
Payables to associated companies	1.0	0.7
Payables based on derivative instruments, hedge accounting	1.0	1.1
Accrued expenses and deferred income	6.5	6.3
Other liabilities	1.8	1.0
Total	18.9	31.1


	The material items in accrued expenses and deferred income consist of personnel expenses and accruals of material purchases.
	Accrued expenses and deferred income includes liabilities related to contracts with customers in total of EUR 0.2 (0.2) million.


	Note 25. Financial risk management

	The Group is exposed to various financial risks in its normal business operations. The aim of the Group’s risk management is to minimize the adverse effects of changes in the financial markets on its financial performance. The main financial risks relate to liquidity, interest rate, currency, pricing and counterparty risks. The Group uses derivative financial instruments to hedge against currency, price and interest rate risks.

	The financial risk management principles observed by the Group are subject to approval by the Board of Directors of Apetit Plc, and the practical implementation of these principles is the responsibility of the Financing Department, together with the business unit management.


1. Market risks

Interest rate risk

At the end of the financial year the Group had a total of EUR 0.0 (28.0) million in commercial papers, EUR 0.0 (1.1) million in current loans from financial institutions and EUR 14.8 (7.5) million in liquid cash assets.The maturity of commercial papers is usually under three months. The Group hedges the interest rate risk related to non-current and current loans and trade receivables sold to financial institutions through interest rate swaps with a nominal value of EUR 10.0 (10.5) million in the financial statements.

Sensitivity to interest rate risk arising from financial instruments

With the balance sheet structure on 31 December, a rise of one percentage point in interest rates would have increased Group’s net result by EUR 0.1 (-0.1) million and the equity by EUR 0.1 (-0.1) million. The effect of interest rate decreasing one percentage point would have been the opposite.

Commodity risk

The Group is exposed to commodity risks associated with the availability of raw materials, the time difference between procurement and sales, and price fluctuations. The business units are responsible for managing their commodity risks in accordance with the risk management principles. Hedge accounting is mostly applied when hedging the raw material risk.

The most significant commodity risk of Oilseed products relate to rapeseed. The commodity risks of Grain Trade related to wheat, barley, oats and soy, and they have been exited along with the sale of the business. The business units have defined risk limits to stay inside. Quoted commodity futures and forward agreements are used to manage the risk exposure. The main grains and oil seeds products have functional derivative markets such as CME (CBOT) and Euronext (Matif), and the hedging relationships are mostly effective. Certain grain qualities and market areas may not always have an effective hedging instrument, where hedge accounting is not applicable. Even then, hedging may be implemented. The Group's exposure to raw material risk and the maturity of the hedging derivative instruments, respectively, are less than 12 months. At the end of the year the gross nominal amount of commodity derivatives totalled to EUR 36.2 (75.7) million. All instruments have published market prices at the balance sheet date on the commodity exchanges mentioned above.

Food Solutions commodity risks arise from store chains’ pricing periods, where prices are fixed for the entire pricing period. Commodity risk is mostly controlled by purchase and sales functions’ co-operation.

From the beginning of the year 2022, the Group's finnish companies have entered a several years long fixed-price electricity purchase agreement. Electricity risk management is guided by a separate electricity procurement risk policy.

Sensitivity to commodity risk arising from financial instruments

EUR million	1-12/2022	1-12/2021
Derivative based commodity prices increase by 10%
Affect on equity	2.6	0.5
Derivative based commodity prices decrease by 10%
Affect on equity	-2.6	-0.5

When cash flow hedge accounting is applied, the change in the fair value of derivative financial instruments is assumed to be recorded fully in equity.


	Currency Risk

	The Group operates in international markets and is thus exposed to currency risks arising from changes in exchange rates. The Group’s currency risks concern sales, purchases and balance sheet items denominated in foreign currencies (transaction risk). The Group occasionally had significant dollar-denominated purchases from abroad in Grain trade (Discontinued operation).

	The principle followed by the Group is to hedge the original transaction risk in the case of all financially significant currency positions. Hedging can also be made against a probable future open currency position. The instruments available in currency hedging are forward currency contracts and currency options. The Group’s business units are responsible for currency risk hedging. Currency hedging is guided by the risk management policy specifically defined for the purpose and this is monitored by the Group’s Financing Department, together with the business unit management.

	At the closing date of the financialstatement the Group had no significant currency positions.


Fair value hierarchy on financial assets and liabilities valued at fair value

EUR million	Level 1	Level 2	Level 3	Total

Assets 2022
Interest rate swaps, no hedge accounting	-	0.0	-	0.0

Assets 2021
Currency derivatives, no hedge accounting	-	0.0	-	0.0
Commodity derivatives, hedge accounting	0.2	-	-	0.2

Liabilities 2022
Commodity derivatives, hedge accounting	-2.0	-	-	-2.0

Liabilities 2021
Currency derivatives, no hedge accounting	-	0.0		0.0
Commodity derivatives, hedge accounting	0.9	-	-	0.9
Interest rate swaps, no hedge accounting	-	-0.1	-	-0.1

During the year there has not been any transfers between levels 1 and 2.

Level 1 fair values are based on prices obtained from active markets.

Level 2 fair values are based on other input data and commonly accepted fair value models. The input data is based on observable market prices.

Level 3 fair values are mostly based on other input data that are not for the most part based on observable market prices, instead management estimates and commonly accepted fair value models.


Nominal values of derivative instruments

EUR million	1-12/2022	1-12/2021

Currency derivatives, no cash flow hedge accounting	-	1.5
Commodity derivatives, cash flow hedge accounting	36.2	75.7
Interest rate swaps, no cash flow hedge accounting	10.0	10.5

Other information related to cash flow hedge

The Group applies cash flow hedge accounting to commodity derivatives. Derivatives expire within one year. Profit and loss statement effects of cash flow hedges are materially netted against the opposing fair value change of the hedged item.

EUR million	1-12/2022	1-12/2021
Cash flow hedges recognised in equity	-0.1	-1.3
Taxes related to cash flow hedges booked in equity	0.0	0.3
Derivatives related to net sales	-2.6	-8.5
Derivatives related to purchases and other operating income and expense	-4.2	-0.4
Derivatives related to financial income and expenses	-	-0.1
Taxes related to cash flow hedges booked in profit and loss	1.4	1.8


2. Credit risk

Derivative financial instruments are only entered into with domestic and foreign counterparties that have a good credit rating. Commodity derivative instruments can be entered into on the appropriate commodity exchanges if necessary. Liquid assets may be invested within the approved limits in targets with a good credit rating.

To minimize the operational credit risk, the business units endeavour to obtain collateral security, as credit insurance in the event that a customer’s credit rating so requires.

The Group’s management evaluates that there are no significant customer, geographical or counterparty concentrations in the Group’s credit and counterparty risks. The sale of receivables to a financial institution and the use of credit insurance for some other trade receivables reduces the Group's counterparty risk.

Aging of Group’s receivables

EUR million	1-12/2022	1-12/2021

Not due	7.3	10.7
0 - 3 months past due	0.2	0.1
4 - 6 months past due	-	0.0
Over 6 months past due	0.0	0.0
Total	7.5	10.8


3. Liquidity risk

The liquidity risk is the risk that the company may not have sufficient liquid assets or be unable to acquire enough funds to meet the needs of its business operations. The aim of liquidity risk management is to maintain sufficient liquid funds and credit facilities to ensure that there is always enough financing for the Group’s business operations. The cash flows of the Group companies are netted with the aid of the Group’s internal bank and Group accounts. To manage liquidity, the Group has a commercial paper programme worth EUR 100.0 (100.0) million and also long-term binding credit facilities agreed with financial institutions; a total of EUR 29.0 (29.0) million was available in credit at the closing date of the financial statement. The long-term share of the limit is EUR 25.0 (25.0) million. The total amount of commercial papers issued were EUR 0.0 (28.0) million. Liquidity risk management is the responsibility of the parent company’s Financing Department.

Group’s derivative liabilities, trade payables and interest-bearing loan repayments and interest cash flows

31.12.2022	0 - 3	4 - 12	1 - 5	> 5
EUR million	month	month	years	years

Lease liabilities	-0.2	-0.7	-1.3	-
Trade payables	-9.6	-0.0	-	-
Derivative liabilities	-1.8	0.1	-	-
Total	-11.6	-0.6	-1.3	-

31.12.2021	0 - 3	4 - 12	1 - 5	> 5
EUR million	month	month	years	years

Loans from financial institutions and other loans	-28.6	-0.5	-	-
Lease liabilities	-0.4	-1.0	-1.7	-0.2
Trade payables	-22.5	-0.2	-	-
Derivative liabilities	-2.2	-0.1	-0.0	-
Total	-53.6	-1.8	-1.7	-0.2


4. Capital risk management

The main objective for capital risk management is to secure the Group’s operational preconditions in all circumstances. The capital structure of the Group is reviewed by the Board of Directors on a regular basis. Apetit plc does not have a public credit rating.

The amounts of the Group’s interest-bearing debts fluctuate significantly during the year due to a seasonality of the employed working capital. Normally the employed working capital is at highest level during the latter part of the year and at lowest level during spring and summer.

EUR million	1-12/2022	1-12/2021

Interest Bearing liabilities	2.1	32.3
Cash and cash equivalents	14.8	7.5
Interest bearing net liabilities	-12.7	24.8
Equity	96.0	93.3
Interest-bearing net debt and equity total	83.3	118.1

Net gearing	-13.2 %	26.6 %
Equity Ratio	81.8 %	59.4 %


Note 26. Collateral, contingent liabilities, contingent assets and other commitments

EUR million	1-12/2022	1-12/2021

Pledges given for debts
Guarantees	2.2	2.2


Binding agreements not recognised in the balance sheet
Within one year	0.6	1.5
After one year but not more than five years	0.6	2.9
Total	1.3	4.4

Investment commitments
Food Solutions	2.1	2.5
Oilseed products	0.0	0.5


	Note 27. Related party transactions


Parent company and subsidiary relations of the Group	Domicile	Group's share of ownership %	Group's share of votes %
Apetit plc (parent company)	Finland	100.0	100.0
Apetit Ruoka Oy	Finland	100.0	100.0
Apetit Kasviöljy Oy	Finland	100.0	100.0
Apetit Kantvik Oy	Finland	100.0	100.0
UAB Avena Nordic Grain **	Lithuania	100.0	100.0
Avena Nordic Grain OÜ	Estonia	100.0	100.0
SIA Avena Nordic Grain **	Latvia	100.0	100.0
OOO Avena-Ukraina	Ukraine	100.0	100.0
Foison Oy *	Finland	100.0	100.0

Non-operative company:
Lännen Sokeri Oy	Finland	100.0	100.0

* 10% onwership of Apetit Kasviöljy Oy through Foison Oy.
** Company dissolved



Salaries, wages and benefits of the administrative bodies of the Group

The administrative bodies consists of the members of the Supervisory Board, the Board of Directors, the CEO and other members of the corporate management of the parent company.

EUR 1 000	1-12/2022	1-12/2021

Supervisory Board
Harri Eela, chairman of the Supervisory Board		18	19
Maisa Mikola, deputy chairman of the Supervisory Board		14	15
Other members of the Supervisory Board		14	14


The salaries, fees and fringe benefits of the members of the Board of Directors, the President and CEO and the other members of the Management Team were as follows on an accrual basis:

EUR 1 000	1-12/2022	1-12/2021

Board
Simo Palokangas, chairman of the Board until 17 April 2021		-	32
Lasse Aho, member of the Board, chairman of the Board from 17 August 2021		39	35
Annikka Hurme, member of the Board		21	24
Kati Rajala, member of the Board from 12 August 2020 to 31 May 2021		-	16
Antti Korpiniemi, member of the Board		20	23
Niko Simula, member of the Board, deputy chairman of the Board from 17 August 2021		25	26
Kati Sulin, member of the Board from 17 august 2021		21	8

Management
Esa Mäki, CEO		337	396

Corporate management, five members		777	939

The remuneration and incentive plans for management are made up of monetary remuneration, fringe and pension benefits, and performance-related compensation settled in cash and shares, by which the degree of success for the year is measured. The level of these plans as a whole is compared annually with the general market level. The Board of Directors of Apetit plc decides on the principles for the remuneration and incentive plans for the CEO and other members of the management. The Board also confirms annually the indicators to be used for the plans and their level in relation to the targets set. The indicators also include key figures connected with annual budgets. In 2022, indicators for the CEO and management were among others the Group´s and applicable business unit's EBIT. The maximum amount of performance-related compensation corresponds to 50 per cent of annual salary in the case of the CEO, and 33 per cent of annual salary for other management.

The agreed retirement age for the CEO is 63 years.

Post–employment benefits
EUR 1 000	1-12/2022	1-12/2021

Amount recognized as an expense due to retirement benefit
Esa Mäki, CEO		34	33

The key conditions of the CEO’s terms of service are defined in his contract. The period of notice for the CEO is twelve months.

The Group did not have any loan receivables from the group key management during the financial periods.

Transactions with related parties

EUR million	1-12/2022	1-12/2021

Sales to associated companies		0.7	0.5
Purchases from associated companies		3.1	3.2

Trade receivables and other receivables from associated companies		0.2	0.0
Trade payables and other liabilities to associated companies		1.0	0.8
Sales to other related parties		0.0	0.0
Purchases from other related parties		0.3	0.6
Liabilities to other related parties		0.1	0.3

The sales of goods and services to related parties are based on valid market prices.
Purchases and liabilities with other related parties relate mostly to acgicultural product purchases from members of the Supervisory Board.



Parent company income statement, FAS

	Note	1-12/2022	1-12/2021

Other operating income	(1)	408,944.11	561,239.45

Personnel expenses	(2)	-1,619,188.80	-1,629,718.61
Depreciation, amortisation and impairment	(3)	-290,797.75	-275,285.35
Other operating expenses	(4)	-721,047.79	-783,623.22
Operating profit / loss		-2,222,090.23	-2,127,387.73

Financial income and expenses	(5)	1,426,929.53	1,526,185.79
Profit / loss before appropriations and taxes		-795,160.70	-601,201.94

Group contributions		1,600,000.00	-
Change in depreciation difference		-146.73	-24,308.27
Change in deferred tax assets	(6)	-132,978.76	190,270.74

Net profit / loss		671,713.81	-435,239.47


Parent companyt balance sheet, FAS

	Note	31.12.2022	31.12.2021

ASSETS

Long-term assets
Intangible assets	(7)	76,367.30	102,404.00
Tangible assets	(8)	3,158,988.63	3,349,674.39
Investments in Group companies	(9,10)	32,178,252.50	32,178,252.50
Investments in associated companies	(9,10)	12,158,279.85	12,158,279.85
Other investments and receivables	(9,10)	18,403.60	15,803.60
Total long-term assets		47,590,291.88	47,804,414.34

Short-term assets
Long-term receivables	(11)	11,286,234.18	13,204,984.80
Deferred tax assets	(13)	1,413,642.01	1,546,620.77
Current receivables	(12)	18,940,164.39	54,574,795.06
Cash and cash equivalents		10,776,943.00	6,937,604.57
Total short-term assets		42,416,983.58	76,264,005.20

Total assets		90,007,275.46	124,068,419.54

SHAREHOLDERS' EQUITY AND LIABILITIES

Shareholders' equity	(14)
Share capital		12,635,152.00	12,635,152.00
Share premium account		23,390,595.88	23,390,595.88
Invested non-restricted equity capital		111,280.00	111,280.00
Contingency reserve		7,232,080.84	7,232,080.84
Retained earnings		41,916,275.28	44,847,477.95
Profit / loss for the period		671,713.81	-435,239.47
Total equity		85,957,097.81	87,781,347.20

Appropriations		34,733.05	34,586.32

Liabilities	(15)
Long-term non-interest-bearing liabilities		647,345.30	721,996.16
Current interest-bearing liabilities		2,615,187.12	34,679,253.66
Current non-interest-bearing liabilities		752,912.18	851,236.20
Total liabilities		4,015,444.60	36,252,486.02

Total equity and liabilities		90,007,275.46	124,068,419.54


		-	-



Parent company statement of cash flows, FAS

	1-12/2022	1-12/2021

Cash flow from operating activities
Profit before extraordinary items	-795,160.70	-601,201.94
Adjustments *)	-1,136,131.78	-1,367,898.95
Change in working capital	-	-
Change in non-interest-bearing current receivables	225,158.80	-229,685.50
Change in non-interest-bearing current liabilities	-98,324.02	-123,103.65
Cash flow from operating activities before financial items and taxes	-1,804,457.70	-2,321,890.04

Interests paid	-121,293.95	-247,833.22
Interests received	1,122,337.10	1,462,167.01

Cash flow from operating activities (A)	-803,414.55	-1,107,556.25

Cash flow from investing activities
Investments in tangible and intangible assets	-76,675.29	-898,922.64
Proceeds from sales of tangible and intangible assets	-	129,439.83
Investments in shares of subsidiaries	-	-8,000,000.00
Dividends received	320,612.00	200,512.00
Cash flow from investing activities (B)	243,936.71	-8,568,970.81


Cash flow before financing	-559,477.84	-9,676,527.06

Cash flow from financing activities
Sale of own shares	-	111,280.00
Change in long-term loans	-	-963,638.00
Change in short-term loans	-28,481,811.00	13,000,000.00
Change in subsidiary financing	42,395,635.00	5,520,634.92
Change in group bank account	-7,019,039.81	-4,295,804.09
Dividends paid	-2,495,963.20	-3,118,173.00
Group contributions	-	5,550,000.00
Cash flow from financing activities (C)	4,398,820.99	15,804,299.83

Net increase/decrease in cash and cash equivalents (A+B+C)	3,839,343.15	6,127,772.77

Cash and cash equivalents at beginning of financial year	6,937,604.57	809,831.80
Cash and cash equivalents at end of financial year	10,776,943.00	6,937,604.57


*) Adjustments
Depreciation, amortisation and impairment	290,797.75	275,285.35
Financial income and expenses	-1,426,929.53	-1,526,185.79
Gains and losses on sales of tangible and intangible assets	-	-116,998.51
Total	-1,136,131.78	-1,367,898.95

The group bank account is presented in the financing cash flow. The comparison period has been adjusted to match the presentation method.



	Accounting principles, FAS

	Valuation of fixed assets

	Fixed assets have been capitalised at their acquisition cost less accumulated depreciation. Fixed assets have been depreciated on a straight-line basis according to plan, based on useful economic life.

	Foreign currency items

	Receivables and payables denominated in foreign currencies have been translated into euros at the European Central Bank middle rate on the closing day. Exchange rate differences caused by short-term receivables and liabilities have been charged to the profit and loss account. Unrealised exchange rate losses and gains of long-term receivables and liabilities have also been charged to the profit and loss account.

	Deferred tax assets and liabilities

	Deferred tax liabilities and assets are calculated on the basis of the timing differences between the closing date and the taxation date, using the tax rate for subsequent years confirmed on the closing date.

	Other temporary differences arising from deferred tax liabilities and assets are presented on a net basis in the notes.


	Derivative contracts

	In line with its risk management policy, the company uses a variety of derivatives for hedging against a number of risks arising from foreign currencies, interest rates and commodity prices. The market values of derivatives are entered under derivative contracts in the other notes to the accounts and indicate what the result would have been if the derivative position had been closed at market prices on the date of closing of the accounts.

	Unrealised losses on derivative instruments are recognised on financial costs. Unrealised gains are not recognised in profit and loss statement, gains are recognised on financial income at the moment when derivative instrument is realised.

	Pension arrangements

	Statutory pension coverage for corporate personnel is covered by pension insurance. Special pension insurance policies provide additional pension coverage under the Trust rules for former employees and retired staff previously covered by the Lännen Tehtaat Staff Pension Trust.

	The CEO has a voluntary defined contribution supplementary pension plan.


1. Other operating income

	1-12/2022	1-12/2021

Gains from sales of non-current assets	-	116,998.51
Rental income	167,129.66	142,933.95
Service fees	141,727.32	142,832.32
Other	100,087.13	158,474.67
Total	408,944.11	561,239.45

2. Personnel expenses and average number of personnel

	1-12/2022	1-12/2021

Personnel expenses
Wages and salaries	1,292,423.85	1,336,414.34
Pension expenses	229,289.12	220,695.20
Other social security expenses	97,475.83	72,609.07
Total	1,619,188.80	1,629,718.61

Salaries, wages and benefits of the administrative bodies are presented in Note 27 of the Notes to the consolidated financial statements.

Personnel, FTE	11	12

The pension commitments to the members of the Board of Directors and the CEO:
The retirement age of the CEO is 63 years.

3. Depreciation, amortisation and impairments

Tangible and intangible assets have been capitalised at their acquisition cost less accumulated depreciation. Tangible and intangible assets are subject to straight-line depreciation and amortisation over the period of their useful lives. Depreciation and amortisation have been applied since the month the asset was taken into use.

Depreciation and amortisation periods:
Intangible rights 5 or 10 years
Other capitalised long-term expenses 5 or 10 years
Buildings and structure 20-30 yers
Other buildings and constructions 5 or 10 years
Machinery and equipment 5 or 10 years

The basis for depreciation and amortisation have not changed.

	1-12/2022	1-12/2021

Depreciation and amortisation according to plan
Intangible rights	4,060.00	4,791.25
Other capitalised long-term expenses	30,780.70	31,143.72
Buildings and structure	255,503.25	214,751.29
Machinery and equipment	453.80	24,599.09
Total	290,797.75	275,285.35


4. Other operating expenses

	1-12/2022	1-12/2021

Other operating expenses
Rental expenses	140,710.42	24,451.27
Administrative expenses	400,697.51	514,482.81
Other operating expenses	179,639.86	244,689.14
Total	721,047.79	783,623.22

Audit fees
Annual audit	19,008.77	69,827.12
Other services	17,194.00	10,920.00
Total	36,202.77	80,747.12

5. Financial income and expenses

	1-12/2022	1-12/2021

Dividend income
From associated companies
From associated company	320,000.00	200,000.00
From others	612.00	512.00
Total	320,612.00	200,512.00

Interest income from long-term investments
From Group companies	578,310.41	556,770.07

Other interest and financial income
From Group companies	610,364.17	899,468.11
Interest incomes from others	18,896.24	4.25
Other financial incomes from others	20,045.28	13.58
Total	649,305.69	899,485.94

Financial income, total	1,548,228.10	1,656,768.01

Interest expenses and other financial expenses
To Group companies	89.93	-
Interest expenses to others	53,023.33	82,328.47
Other financial expenses to others	68,185.41	48,253.75
Total	121,298.67	130,582.22

Financial expenses total	121,298.67	130,582.22

Financial income and expenses, total	1,426,929.43	1,526,185.79

6. Income taxes

	1-12/2022	1-12/2021

Change in deferred tax assets	-132,978.76	190,270.74
Total	-132,978.76	190,270.74


7. Long-term intangible assets

Intangible assets 2022

	Intangible rights	Other capitlised long-term expenses	Total


Acquisition cost 1 Jan.	62,988.00	212,402.09	275,390.09
Additions	-	8,804.00	8,804.00
Acquisition cost 31 Dec.	62,988.00	221,206.09	284,194.09

Accumulated amortisation 1 Jan.	-48,169.67	-124,816.42	-172,986.09
Amortisation for the period	-4,060.00	-30,780.70	-34,840.70
Accumulated amortisation 31 Dec.	-52,229.67	-155,597.12	-207,826.79

Book value 31 Dec. 2022	10,758.33	65,608.97	76,367.30



Intangible assets 2021
	Intangible rights	Other capitlised long-term expenses	Total


Acquisition cost 1 Jan.	139,088.00	284,307.06	423,395.06
Additions	-	6,417.50	6,417.50
Disposals	-76,100.00	-78,322.47	-154,422.47
Acquisition cost 31 Dec.	62,988.00	212,402.09	275,390.09

Accumulated amortisation 1 Jan.	-119,478.42	-171,995.17	-291,473.59
Disposals, accumulated amortisation	76,100.00	78,322.47	154,422.47
Amortisation for the period	-4,791.25	-31,143.72	-35,934.97
Accumulated amortisation 31 Dec.	-48,169.67	-124,816.42	-172,986.09

Book value 31 Dec. 2021	14,818.33	87,585.67	102,404.00


8. Long-term tangible assets

Tangible assets 2022

	Land and water areas	Buildings and structures	Machinery and equipment	Other tangible assets	Construction in progress	Total

Acquisition cost 1 Jan.	2,157,216.05	5,283,204.33	254,980.13	57,266.48	-	7,752,666.99
Additions	-	65,271.29	-	-	-	65,271.29
Disposals	-	-	-4,096.91	-	-	-4,096.91
Acquisition cost 31 Dec.	2,157,216.05	5,348,475.62	250,883.22	57,266.48	-	7,813,841.37

Accumulated depreciation 1 Jan.	-	-4,148,466.27	-254,526.33	-	-	-4,402,992.60
Disposals, accumulated depreciation	-	-	4,096.91	-	-	4,096.91
Depreciation for the period	-	-255,503.25	-453.80	-	-	-255,957.05
Accumulated depreciation 31 Dec.	-	-4,403,969.52	-250,883.22	-	-	-4,654,852.74

Book value 31 Dec. 2022	2,157,216.05	944,506.10	-	57,266.48	-	3,158,988.63

Tangible assets 2021

	Land and water areas	Buildings and structures	Machinery and equipment	Other tangible assets	Construction in progress	Total

Acquisition cost 1 Jan.	2,157,216.05	4,598,225.44	274,892.25	57,266.48	19,035.27	7,106,635.49
Additions	-	892,505.14	-	-	-	892,505.14
Disposals	-	-226,561.52	-19,912.12	-	-	-246,473.64
Transfers between items	-	19,035.27	-	-	-19,035.27	-
Acquisition cost 31 Dec.	2,157,216.05	5,283,204.33	254,980.13	57,266.48	-	7,752,666.99

Accumulated depreciation 1 Jan.	-	-4,147,835.18	-249,839.36	-	-	-4,397,674.54
Disposals, accumulated depreciation	-	214,120.20	19,912.12	-	-	234,032.32
Depreciation for the period	-	-214,751.29	-24,599.09	-	-	-239,350.38
Accumulated depreciation 31 Dec.	-	-4,148,466.27	-254,526.33	-	-	-4,402,992.60

Book value 31 Dec. 2021	2,157,216.05	1,134,738.06	453.80	57,266.48	-	3,349,674.39

Revaluation 2022
Revaluations are included in the carrying amount of land.
Land and water areas 31 Dec. 2022						1,722,096.65


9. Investments


Investments, other investments and receivables 2022
	Holdings in Group companies	Holdings in associated companies	Other investments	Other receivables	Total

Acquisition cost 1 Jan.	32,178,252.50	12,158,279.85	11,970.30	3,833.30	44,352,335.95
Additions	-	-	-	2,600.00	2,600.00
Book value 31 Dec. 2022	32,178,252.50	12,158,279.85	11,970.30	6,433.30	44,354,935.95

Investments, other investments and receivables 2021
	Holdings in Group companies	Holdings in associated companies	Other investments	Other receivables	Total

Acquisition cost 1 Jan.	24,178,252.50	12,158,279.85	11,970.30	3,833.30	36,352,335.95
Additions	8,000,000.00	-	-	-	8,000,000.00
Book value 31 Dec. 2021	32,178,252.50	12,158,279.85	11,970.30	3,833.30	44,352,335.95

10. Shares of Group companies, associated companies and other shares and
receivables
			Domicile		Holding

Group companies
Apetit Ruoka Oy			Säkylä		100
Apetit Kasviöljy Oy			Helsinki		100
Foison Oy			Helsinki		100
Lännen Sokeri Oy, non operative company			Säkylä		100

Associated companies
Sucros Oy			Helsinki		20
Foodwest Oy			Seinäjoki		18



Other shares, holdings and long-term receivables					Book value
Unquoted shares and holdings					11,970.30
Connection fees, long-term receivables					6,433.30
Total					18,403.60


11. Long-term receivables

	31.12.2022	31.12.2021

Loans receivables from Group companies	10,638,888.88	12,591,666.64
Other receivables	647,345.30	613,318.16
Total	11,286,234.18	13,204,984.80

12. Short-term receivables


Accounts receivable	10,963.81	6,752.20

Amounts owed by the Group companies
Accounts receivable	630,781.38	892,185.29
Loans receivable	12,952,777.78	53,395,634.92
Group bank account receivables	3,436,784.27	-
Group contribution receivables	1,600,000.00	-
Other receivables	269,450.26	238,935.93
Total	18,889,793.69	54,526,756.14

Amounts owed by the associated companies Accounts receivable
Accounts receivable	18,947.45	16,477.50
Total	18,947.45	16,477.50

Other receivables from others
Personnel expenses	285.04	215.20
Other	20,174.40	24,594.02
Total	20,459.44	24,809.22

Short-term receivables total	18,940,164.39	54,574,795.06

13. Deferred tax assets

	31.12.2022	31.12.2021

Deferred tax assets, carry forward of unused tax losses	1,413,642.01	1,546,620.77

Deferred tax assets of EUR -132,978.76 (190,270.74) have been recognised for the loss to be confirmed in 2022.

The net amount of the off-balance sheet deferred tax liability is EUR 24,548.86.


14. Changes in shareholders’ equity

	31.12.2022	31.12.2021

Share capital 1 Jan.	12,635,152.00	12,635,152.00
Share capital 31 Dec.	12,635,152.00	12,635,152.00

Share premium account 1 Jan.	23,390,595.88	23,390,595.88
Share premium account 31 Dec.	23,390,595.88	23,390,595.88

Contingency reserve 1 Jan.	7,232,080.84	7,232,080.84
Contingency reserve 31 Dec.	7,232,080.84	7,232,080.84

Invested non-restricted equity capital 1.1	111,280.00
Invested non-restricted equity capital additions	-	111,280.00
Invested non-restricted equity capital 31.12	111,280.00	111,280.00

Retained earnings 1 Jan.	44,847,477.95	45,113,302.76
Transfer from previous year's profit	-435,239.47	2,852,348.19
Dividends paid	-2,495,963.20	-3,118,173.00
Retained earnings 31 Dec.	41,916,275.28	44,847,477.95

Profit / loss for the financial year	671,713.81	-435,239.47

Shareholders’ equity 31 Dec.	85,957,097.81	87,781,347.20

Distributable funds
Contingency reserve	7,232,080.84	7,232,080.84
Invested non-restricted equity capital	111,280.00	111,280.00
Retained earnings	41,916,275.28	44,847,477.95
Profit for the financial year	671,713.81	-435,239.47
Distributable funds 31 Dec.	49,931,349.93	51,755,599.32


15. Liabilities

	31.12.2022	31.12.2021

Long-term liabilities
Payables based on derivative instruments	-	108,678.00
Provisions for pensions	647,345.30	613,318.16
Total	647,345.30	721,996.16

Short-term liabilities
Loans from financial institutions	-	481,811.00
Commercial papers	-	28,000,000.00
Trade payables	186,426.86	247,823.52
Total	186,426.86	28,729,634.52

Amounts owed to Group companies
Other liabilities	61,356.64	61,459.24
Group account liabilities	2,615,187.12	6,197,442.66
Total	2,676,543.76	6,258,901.90

Amounts owed to associated companies
Trade payables	24,378.78	25,710.92

Other liabilities
Tax account payable	253,104.37	235,159.80

Accrued expenses and deferred income
Personnel expenses	205,463.86	230,221.47
Accruals of expenses	22,181.67	50,861.25
Total	227,645.53	281,082.72

Long-term non-interest-bearing liabilities	647,345.30	721,996.16
Short-term liabilities, interest-bearing, total	2,615,187.12	34,679,253.66
Short-term liabilities, non-interest-bearing, total	752,912.18	851,236.20
Total	4,015,444.60	36,252,486.02



16. Contingent liabilities

	31.12.2022	31.12.2021

Lease liabilities
Falling due during the following year	166,971.18	196,692.00
Falling due at later date	329,760.00	-

Other lease liabilities
Falling due during the following year	16,297.47	10,243.43
Falling due at later date	30,014.52	-

Other liabilities
Guarantees	51,112.80	72,212.64

Contingent liabilities on behalf of the Group companies
Guarantees	2,155,000.00	2,155,000.00

Liabilities total	2,749,155.97	2,434,148.07

Outstanding derivative instruments
Nominal value of underlying instruments	10,000,000.00	10,481,820.00
Market value	43,906.91	-108,680.87



0
The company is required to revise the value-added tax deductions carried out on the real estate investments
finished in 2014 if the use of the property is decreased during the revision period. The maximum amount
of the commitment is €231,645.07 and the final revision year is 2032.



	Proposal of the Board of Directors for the distribution of profits


	The parent company’s distributable funds totalled EUR 49,931,349.93 on 31 December 2022, of which EUR 671,713.81 is profit for the financial year.

	The Board of Directors will propose to the Annual General Meeting that the distributable funds be used as follows:

		EUR
	Distributed as a dividend of EUR 0.50 per share i.e. a total of at Financial statement date
	0	3,158,788.00
	for the number of shares owned by outside the company	3,119,954.00



	No significant changes have taken place in the financial position of the parent company since the end of the financial year. The company’s liquidity is good, and the Board deems that the company’s solvency will not be jeopardised by the proposed distribution of dividends. No dividend will be paid on the company's own shares.

	Signatures to the Board of Directors’ report and financial statements

	Säkylä 15 February 2023



	Lasse Aho	Annikka Hurme
	Chairman


	Kati Sulin Niko Simula	Antti Korpiniemi



	Esa Mäki
	CEO

	An auditor’s report has been issued today.

	Säkylä 15 February 2023

		Ernst & Young Oy
		Authorised Public Accountants



	Osmo Valovirta, KHT	Erika Grönlund, KHT


	Kirjanpidon kirjat, tositelajit ja kirjanpitoaineiston säilytys

	Kirjanpidon kirjat elektronisessa muodossa

	Pääkirjanpito
	Tuloslaskelma ja tase

	Osakirjanpito
	Myyntisaamiset
	Ostovelat
	Käyttöomaisuus
	Varastokirjanpito

	Kirjanpidon tositelajit SAP-toiminnanohjausjärjestelmässä

	Kassatositteet
	ZP 10 Myyntisaamiset, maksuviitekäsittely
	ZR 10 Tiliote/ tilien täsmäytys, välitilit
	KZ 12 Ostolaskujen maksut

	Muistio- jaksotus- ja muut tositteet
	SA 20 Muistiotositteet, ei peruutettavat
	AB 21 Jaksotustositteet, peruutettavat
	YR 21 Toistuvaistositteet, konserniyhtiöiden väliset palveluveloitukset
	ZO 22 Laskennalliset sosiaalikulut
	ZT 22 Laskennalliset sosiaalikulut , purku taseeseen
	SU 90 Reskontrakuittaukset, TV/LV-tilien kuittaus
	ZU 87 Factoring, myyntilaskut

	Myyntilaskut
	RV 40 Myyntilaskut
	ZD 41 Myynnin hyvityslaskut
	DV 44 Korkolaskut

	Toimittajalaskut
	KR 50 Suorat ostolaskut
	KA 50 Suoran ostolaskun peruutus
	KG 50 Suorat ostolaskut, hyvitys
	KK 50 Suorat ostolaskut, konserni
	RE 54 Tilaukselliset ostolaskut

	Materiaalihallinnon ja tuotannon tositteet
	WA 61 Varastosta otot (PP)
	WE 62 Vastaanotot ostotilaukselle (MM)
	WL 63 Myyntitoimitukset (SD)
	WI 64 Inventoinnit
	PR 65 Nimikkeen hinnanmuutos
	ZC 66 Prosessitilausten purku
	KP 67 TV/LV tilin ylläpito
	RN 55 Pipelinetilitykset

	Liittymien kautta tulevat kirjanpidon tositteet
	ZA 80 Palkat
	ZS 81 Matkalaskut, M2
	ZF 82 Viljelijätilitykset

	Käyttöomaisuuskirjanpito, SAP
	AA 30 Käyttöomaisuuden luovutusten kirjaukset
	AC 31 Käyttöomaisuuden poistoerojen kirjaukset
	AF 32 Käyttöomaisuuden poistokirjaukset
	ZI 34 Investointinumeroiden purkaminen

	Palkanlaskenta, Accountor ja muut palkanlaskentaohjelmat

	Kirjanpitoaineiston säilytyksessä noudatetaan KPL 2:10 §:n säännöksiä.

	Tilinpäätös, toimintakertomus, kirjanpidot, tililuettelo sekä luettelo kirjanpidoista ja aineistoista säilytetään vähintään 10 vuotta ja tositeaineisto 6 vuotta tilikauden päättymisestä.


Key indicators

Financial ratios

Profitability	Continuing operations
EUR million	2022	2021	2020	2019	2018

Net sales	181.7	283.9	292.9	296.9	259.9

Exports	42.4	108.5	134.0	134.4	77.7

Operating profit	3.5	2.8	3.9	-4.8	0.5
% of net sales	1.9	1.0	1.3	-1.6	0.2

R & D expenses	1.4	1.0	1.0	1.3	1.3
% of net sales	0.8	0.4	0.4	0.4	0.4

Financial income (+)/expenses(-), net	-0.2	-0.4	-0.5	-0.7	-0.4

Result before taxes	3.8	2.9	3.7	-6.4	-0.6
% of net sales	2.1	1.0	1.3	-2.1	-0.2

Result for the period	3.2	2.4	3.1	-5.4	-0.4
% of net sales	1.7	0.8	1.0	-1.8	-0.2

Attributable to
Shareholders of the parent company	3.2	2.4	3.1	-5.4	-0.4
Non-controlling interests	-	-	-	-	-


Finance and financial position	Group
EUR million	2022	2021	2020	2019	2018

Return on equity, % (ROE)	5.5	2.5	3.4	-4.5	-7.0
Return on capital employed, % (ROCE) *	5.7	2.4	3.3	-4.0	-7.0

Equity ratio, %	81.8	59.4	66.5	55.0	61.4
Net gearing, %	-13.2	26.6	21.7	35.9	21.5

Non-current assets	64.9	68.0	67.7	64.4	67.6
Inventories	30.1	70.8	58.7	66.4	80.9
Other current assets	22.3	18.2	16.3	39.9	16.1

Shareholders' equity	96.0	93.3	95.0	93.9	101.1
Distributable funds	49.9	51.8	55.2	55.1	58.6
Interest-bearing liabilities	2.1	32.3	21.7	36.6	24.4
Non-interest-bearing liabilities	19.2	31.6	26.1	40.3	39.0

Balance sheet total	117.3	157.1	142.8	170.8	164.6


Other indicators	Continuing operations
EUR million	2022	2021	2020	2019	2018

Gross investments excluding business acquisitions	5.0	6.6	7.8	11.5	6.1
% of net sales	2.8	2.3	2.7	4.0	2.3

Gross investments excluding business acquisitions	0.0	-	0.0	-	0.6
% of net sales	0.0	-	0.0	-	0.2

	Group
	2022	2021	2020	2019	2018
Personnel, FTE	303	337	343	452	564


Share indicators	Group
	2022	2021	2020	2019	2018

Earnings per share, EUR	0.83	0.38	0.52	-0.71	-1.21
Dividend per share, EUR *	0.50	0.40	0.50	0.45	0.40
Dividend per earnings, %	60.1	105.4	96.6	-	-
Effective dividend yield, % *	4.9	3.1	4.7	5.7	4.4
P/E ratio	12.3	33.9	20.8	-	-

Shareholders' equity per share, EUR	15.38	14.95	15.26	15.09	16.29

Share performance, EUR
Lowest price during the year	9.62	10.70	7.12	7.66	8.86
Highest price during the year	13.90	14.90	10.80	9.84	15.25
Average price during the year	10.94	13.09	8.94	8.54	11.68
Share price at the end of the year	10.20	12.85	10.70	7.84	9.00

Share turnover
Share turnover (1,000 pcs)	500	1,094	1,627	1,252	635
Turnover ratio, %	7.9	17.3	25.8	20.0	10.0

Share capital, EUR million	12.6	12.6	12.6	12.6	12.6
Market capitalisation, EUR million	64.4	81.2	67.6	49.5	56.9
Dividends, EUR million *	3.1	2.5	3.1	2.8	2.5

Number of shares
Number of shares	6,317,576	6,317,576	6,317,576	6,317,576	6,317,576
Average adjusted number of shares	6,239,744	6,234,286	6,223,332	6,217,118	6,210,652
Adjusted number of shares at the end of the period	6,239,908	6,238,923	6,228,346	6,222,876	6,216,621

Number of own shares	77,668	78,653	89,230	94,700	100,955

* Proposal of the board of directors


Calculation of key indicators

IFRS key figures

Earnings per share		=	Net income attributable to the equity holders of the parent
Earnings per share		=	Average number of outstanding shares during financial year

Alternative performance measures

According to the ESMA (European Securities and Markets Authority) Guidelines on Alternative Performance Measures, an Alternative Performance Measure (APM) is understood as a financial measure of historical or future financial performance, financial position, or cash flows, other than a financial measure defined or specified in the applicable financial reporting framework. In addition to IFRS key figures, Apetit uses and reports the following alternative performance measures:


Return on equity (ROE), %		=	Profit/loss for the period
Return on equity (ROE), %		=	Total equity (average for the beginning and end of the period)

Return on capital employed (ROCE), %		=	Operating profit
Return on capital employed (ROCE), %		=	Capital employed, average of the last five quarter ends

Capital employed	=	Equity + interest-bearing liabilities

Equity ratio, %		=	Total equity
Equity ratio, %		=	Total assets - Advance payments received

Gearing, %		=	Interest-bearing net debt
Gearing, %		=	Total equity

Interest-bearing net liabilities	=	Interest-bearing liabilities - Cash and cash equivalents - Short term investments

Dividend per earnings, %		=	Dividend per share
Dividend per earnings, %		=	Earnings per share

Effective dividend yield, %		=	Dividend per share
Effective dividend yield, %		=	Share price at the end of the period

Price/earnings ratio (P/E)		=	Share price at the end of the period
Price/earnings ratio (P/E)		=	Earnings per share

Shareholders' equity per share		=	Equity attributable to the equity holders of the parent company
Shareholders' equity per share		=	Basic number of outstanding shares on 31 December

Market capitalisation	=	Basic number of outstanding shares x Closing share price



Major Shareholders on 30 December 2022

	Number of shares	%	Number of votes	%

Valio's Pension Fund	580,108	9.2	580,108	9.3
Berner Oy	499,667	7.9	499,667	8.0
Eela Esko	392,392	6.2	392,392	6.3
Nordea Nordic Small Cap Fund	347,860	5.5	347,860	5.6
EM Group Oy	141,747	2.2	141,747	2.3
Central Union of Agricultural Producers and Forest Owners	125,485	2.0	125,485	2.0
Skandinaviska Enskilda Banken ABP, Helsinki Branch	110,904	1.8	110,904	1.8
Poutiainen Juha	110,000	1.7	110,000	1.8
Laakkonen Mikko	102,802	1.6	102,802	1.6
Pharmacies Pension Fund	90,395	1.4	90,395	1.4
Top 10 sub-total	2,501,360	39.6	2,501,360	40.1

Nominee-registered shares	161,548	2.6	161,548	2.6
Other shareholders	3,577,000	56.6	3,577,000	57.3
External ownership total	6,239,908	98.8	6,239,908	100.0
Shares owned by the company	77,668	1.2
Total	6,317,576	100.0


Distribution of ownership on 30 December 2022

	0		0
	0		0
	% of shareholders		% of shares

Companies total	2.3		20.4
Financial and insurance institutions	0.1		5.8
Public organisations	0.2		12.2
Private households	96.2		55.6
Non-profit organisations	0.9		3.3
Foreign owners	0.3		0.1
Nominee-registered			2.6
Total			100.0


Distribution of shareholdings on 30 December 2022


Shares		Number of shareholders	% of shareholders	Number of shares	% of shares
		pcs	%	pcs	%

1	100	6,699	55.9	262,103	4.1
101	500	3,912	32.6	944,945	15.0
501	1000	799	6.7	596,906	9.4
1001	5000	497	4.1	960,388	15.2
5001	10000	47	0.4	310,918	4.9
10001	50000	26	0.2	543,534	8.6
50001	100000	4	0.0	287,817	4.6
100001	500000	8	0.1	1,830,857	28.98
500001		1	0.0	580,108	9.2
Total		11,993	100.0	6,317,576	100.0


	Independent Auditor’s Report on Apetit Oyj’s ESEF-Consolidated Financial Statements (Translation of the Finnish original)

	To the Board of Directors of Apetit Oyj


	We have performed a reasonable assurance engagement on the iXBRL tagging of the consolidated financial statements included in the digital files 743700RSFZUIQYABYT14-2022-12-31-fi.zip of Apetit Oyj for the financial year 1.1.-31.12.2022 to ensure that the financial statements are marked/tagged with iXBRL in accordance with the requirements of Article 4 of EU Commission Delegated Regulation (EU) 2018/815 (ESEF RTS).


	Responsibilities of the Board of Directors and Managing Director

	The Board of Directors and Managing Director are responsible for the preparation of the Report of Board of Directors and financial statements (ESEF financial statements) that comply with the ESESF RTS. This responsibility includes:
	· preparation of ESEF-financial statements in accordance with Article 3 of ESEF RTS
	· tagging the consolidated financial statements included within the ESEF- financial statements by using the iXBRL mark ups in accordance with Article 4 of ESEF RTS
	· ensuring consistency between ESEF financial statements and audited financial statements

	The Board of Directors and Managing Director are also responsible for such internal control as they determine is necessary to enable the preparation of ESEF financial statements in accordance with the requirements of ESEF RTS.


	Auditor’s Independence and Quality Control

	We are independent of the company in accordance with the ethical requirements that are applicable in Finland and are relevant to the engagement we have performed, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
	The auditor applies International Standard on Quality Control (ISQC) 1 and therefore maintains a comprehensive quality control system including documented policies and procedures regarding compliance with ethical requirements, professional standards and applicable legal and regulatory requirements.

	Auditor’s Responsibilities

	In accordance with the Engagement Letter we will express an opinion on whether the electronic tagging of the consolidated financial statements complies in all material respects with the Article 4 of ESEF RTS. We have conducted a reasonable assurance engagement in accordance with International Standard on Assurance Engagements ISAE 3000.
	The engagement includes procedures to obtain evidence on:
	· whether the tagging of the primary financial statements in the consolidated financial statements complies in all material respects with Article 4 of the ESEF RTS
	· whether the tagging of the notes to the financial statements and the entity identifier information in the consolidated financial statements complies in all material respects with Article 4 of the ESEF RTS
	· whether the ESEF-financial statements are consistent with the audited financial statements

	The nature, timing and extent of the procedures selected depend on the auditor’s judgement including the assessment of risk of material departures from requirements sets out in the ESEF RTS, whether due to fraud or error.
	We believe that the evidence we have obtained is sufficient and appropriate to provide a basis for our statement.

	Opinion

	In our opinion the tagging of the consolidated financial statement included in the ESEF financial statement of Apetit Oyj for the year ended 31.12.2022 complies in all material respects with the requirements of ESEF RTS.

	Our audit opinion on the consolidated financial statements of Apetit Oyj for the year ended 31.12.2022 is included in our Independent Auditor’s Report dated 15.2.2023. In this report, we do not express an audit opinion any other assurance on the consolidated financial statements.

	Helsinki 10.3.2023
	Ernst & Young Oy
	Authorized Public Accountant Firm


	Osmo Valovirta
	Authorized Public Accountant