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Realizing smart society essentials

Annual report 2019

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Contents

CEO’s Review 2019

Key figures

Empower in Brief

Focus areas

Highlights

Sustainability

Group Executive Team

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Report by the Board of Directors and Financial Statements 2019

Income Statement, Group and Parent Company

Balance Sheet, Group and Parent Company

Cash Flow Statement

Basis of Preparation

Notes to the Financial Statements

Annual review Financial Statements

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The profits of the Power business were burdened by losses from some projects and the fact that the year-start expectations did not match the number and volume of the realized projects. With regard to profit, the year could be referred to as a gap year of constricting project operations. However, several agreements with long-term customers were successfully extended. Going forward, we will focus on the construction of electrical substations, power lines and wind farms, and the outlook is very good in all of these markets. A total of 1,000 MW of new wind power alone will be added to the Finnish main grid, so the need for strengthening the main grid and adding new electrical substations is undergoing significant growth.

Our revenue in the Baltic countries increased slightly in 2019, and signifi-cant investments in the power line market will be made there. Investments in the Estonian railway network and investments by other Baltic countries in rail traffic promise us favorable expectations with regard to the Power business.

2019 was a year of reforms for Empower. We invested

in increasing the efficiency of our operations, got the

business operations of the new Smart Factory in Hamina

off to a good start and increased the revenue of the

Baltic region and Energy Intelligence business. In fact,

the Energy Intelligence business area reached a level

at which growing it further would require expanding

into other countries. This led to a decision to divest the

business. The revenue for the year fell strongly due to

the end of project-like work for two major customers.

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CEO’s review 20192019 was a year of reforms

for Empower. We invested in increasing the efficiency of our operations and got the business operations of the new Smart Factory in Hamina off to a good start. We worked hard to turn unprofitable operations to the black or bring them to a close. We succeeded well in these measures.

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In the Connectivity business, the construction of the 5G network started in the fall, and strengthening the 4G network continued further. However, profit was burdened by investments in the optic fiber network being lower than expe-cted. The future is looking better. Over the next couple of years, investments in mobile networks can be expected to increase further, in addition to which investments in the fiber network will increase.

The revenue of the Smart Industry business area decreased, which was mainly due to a contraction in projects realized for customers. The relative result, however, improved year-on-year. The work will continue with other operators, and both on-going customer negotiations and the long-term outlook are favorable.

Divestment of the Energy Intelligence business The Energy Intelligence business increased by EUR 3 million. The company’s fifteen years of product development work has resulted in an energy information management system that is supreme of its kind. The next natural development phase was expansion in the Nordic and other European countries. However, the growth would require such big investments that divesting this business was seen as the best solution. We found a new owner for this service package that can realize the expansion strategy. The decision was made during 2019, the sale was closed in March 2020, and it will be completed during the summer 2020.

Digital solutions played an important role in product development in 2019. We worked hard to increase the efficiency of our internal operations with digital tools and modern operating methods. Now, many new solutions that increase our operational efficiency have gotten off to a good start. We are developing new kinds of digital products and product families also to sell them to customers based on agreements, thereby increasing our external revenue. During the second half of the year, we launched a few pilot projects on the new digital products with our customers, and they have progressed favorably. Our investments in this sector have been significant, and we believe in a significant growth in revenue from digital products going forward.

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The focal point of research and development activities, as well as investments, were mainly in the Energy Intelligence business area and the development of digital solutions in 2019. The launch of the operations of the Smart Factory maintenance center in Hamina was a significant investment. The premises of the Hamina factory and digital modern solutions utilizing smart technology attracted a lot of positive attention. The maintenance and testing of electric motors and coiling business are well under way there, and sales negotiations on the remaining capacity are underway.

Together towards growth through determined work

The profit for the early spring and fall of 2019 was burdened by the fact that we worked hard to turn unprofitable operations to the black or bring them to a close. We succeeded well in these measures. As for the future, we believe that Empower’s expected relative profit will increase.

The balance sheet and liquidity will be improved by the confirmation of the Energy Intelligence sale, and the future of the remaining business opera-tions seems promising in the market. The value of our overall investments will increase, and our order book is at a strong level for several years. The investments of the Power and Connectivity business areas are growing, and the Smart Industry businesses have great prerequisites for new service agreements and thereby growth in revenue. In fact, we are seeking growth in all businesses.

I want to take this opportunity to thank our customers, partners and skilled personnel for successful cooperation in 2019. The coronavirus pandemic that was a surprise to the entire world will cause its own challenges for 2020, but we firmly believe that we can resolve them together. We want to be part of building a smart society with digitization, smart solutions and long-term expertise.

Mikko Vaahersalo

CEO, Empower Group

Events after the financial statementsOn February 27, 2020, the Board of Directors of Empower Group and CEO Jari Onniselkä agreed that Onniselkä would resign. The Board of Directors of Empower Group appointed Mikko Vaahersalo as acting CEO, and he was appointed as CEO on May 4, 2020.

We signed a letter of intent on the sale of all shares in Empower Oyj with a buyer on May 25, 2020. Following the sale, Empower Group’s balance sheet and liquidity will return to a good level, and our solvency will also return to a good level. The transaction is expected to be completed during the summer 2020.

As for the future, we believe that Empower’s expected relative profit will increase.

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Key Figures 2019

Business Work Safety

Customer satisfaction

Personnel

9,5m€ 6,1 1600 45,12

213m€

4580pcs 0,6m€

3,8%

pcs/million hour

Revenue

HSE observations

Sex ratio

EBITDA

Absence rate

R&D Lost Workday Injury Frequency (LWIF)

Total Recordable Injury Frequency (TRIF)

Employees

Average age

men

women

87%

13%

NPS

39

14,3 pcs/million hour

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Our business consists of maintaining power plants and factories, executing energy market operations and buil-ding and maintaining smart power networks and tele-communications connections. We provide our customers with a unique combination of specialized industry exper-tise gained over the years, digitalized processes and tools and modern modular technology platforms, which process

Act as an example

Build winning attitude

Build trust and show respect

Communicate openly

Take responsibility and deliver

Empower in briefWe realize smart society essentials and keep

a pulse on them 24/7.

Our values

enormous volumes of real time Big Data. We operate in the Nordic and Baltic countries.

We are big enough to deliver and respectful enough to care. This is our promise to our customers, our personnel and our partners.

Connectedness

SmartEnergy

Smart Society

Planetecological sustainability

The essence of

Peoplegood quality of life

Profitseconomical growth

and stabilityPerformance

functioning of society

Industry 4.0

Smart Transportation

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Hyper connectivity Talk on the streets is about 5G networks and micro- operators.

A hyper connected society is one of ubiquity, of embed-dedness, a society in which the connectivity is becoming “like electricity”, a core essential. Speed and resiliency of connectivity becomes crucial in our daily lives and fuel for innovations and disruptive services.

Focus areas

Sustainable energy supply Energy communities paving the road less travelled.

A smart grid revolution is well underway. Three major megatrends:

• The rise of Renewable energy• Life on the grid edge and• Electrification of the society

are all driving investments to redesign, build and operate smarter grid and related operational services.

Intelligent dataFrom Big Data monetization to data driven automatization.

The Data Economy is a new way of doing business by using information and technology as facilitators of communication, data transfer and commercial transac-tions. The “Networked” Business models as core of the Digital Economy. Platforms beat pipelines.

Smart manufacturing The world of autonomous operations and cyber- physical systems.

Industry 4.0 introduces what has been called the “smart factory,” in which cyber-physical systems control and monitor processes, make decentralized decisions and workflows are digitized and data driven. Benefits are clear. In very challenging working environments, the health and safety of human workers could be improved dramatically.

Our work has a great significance to everyone: not only for our company and our customers but also for the entire planet, humankind, economy and the functionality of society. Our mission guides us in our day-to-day operations, in which we concentrate especially on our four focus areas: sustainable energy, hyper connectivity, smart manufacturing and data-driven operations.

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Empower to implement the first digital electrical substation in the Finnish main grid

The Finnish main grid company Fingrid chose Empower as one of its two partners for digi-tizing the electrical substation in Pernoonkoski, Kotka. With this unique project, Empower strengthens its position as a significant supp-lier of smart solutions to the electricity network environment.

Empower showcased in Finnish and international arenas

Empower’s extensive industry expertise and smart solutions attracted interest at several events during the year. Photo: Empower at MWC Barcelona 2019

Strong growth in information systems and information management services aimed at the energy industryThe strong triumph of Empower’s services and products for the energy market continued in 2019. Among other things, Empower was chosen to implement the customer service of the custo-mer companies of Pohjois-Suomen Energiatieto, a joint venture of Finnish energy companies, and digitization of invoicing with the EnerimCIS system, as well as measurement data manage-ment services for Vatajankosken Sähkö.

Empower recognized for work safety

Efforts to promote work safety bore fruit when Empower was awarded the “Taso II – Kohti maailman kärkeä” work safety category of the Zero Accident forum for 2018.

Empower joins ITEA Board Empower will add Nordic energy industry expertise and innovation to the ITEA network that promotes research, development and innovation activity in industrial sectors.

Smart Factory event in Hamina introduced the

operations of the smart factory to visitorsEmpower opened a modern Smart Factory in Hailikari, Hamina, at the turn of the year. The Smart Factory provides maintenance center solu-tions for different industrial sectors, in addition to which the development of digital products and services aimed at industrial customers has been consolidated in the factory. The open house in June provided visitors with an introduction to the technologies used in the smart factory and operations of a conventional plate hall, mach-ine tooling shop and component maintenance, seasoned with digital solutions.

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Focal points of Empower’s digital solutions were strengthened

In 2019, we sharpened Empower’s digital service and product portfolio and business models. The development of the digital business focused parti-cularly on the EmTrace and EmSite solutions in cooperation with our key customers. The EmTEM application designed to facilitate the management of temporary groundings in high-voltage construc-tion was successfully launched in the spring. Empower’s vision is a hyper-connected, smartly electrified and data-controlled smart society. We promoted this goal in cooperation with industry trailblazers and cities’ Smart City projects in the form of pilot projects and experiments.

Rautarouva II high voltage power line proceeded to the final stages Empower implemented a new 400 kV and 110 kV high voltage power line connection between the Hikiä electrical substation in Hausjärvi and the new electrical subst-ation in Orimattila for the main grid company Fingrid. The most challenging part of the Rautarouva II high voltage power line project was crystallized in over-passing four electrified railway tracks and the busy Lahti highway in Iso-Henna, carried out successfully over seven nights. Rautarouva II will replace Finland’s oldest high voltage power line, Rautarouva, built in the 1920s, and strengthen the main grid.

Harku-Sindi power line is proceeding at a swift rate in the Baltic countriesHarku-Sindi is the biggest power line project in Estonia’s recent history. It involves constructing 330 kV and 110 kV high voltage lines between the Harku and Sindi electrical substations. The new power line connection is significant in many ways, as it supports investments made in Estonian energy production and strengthens the connection between Estonia and Latvia. A total of 63 kilometers of new power line was completed in the section between the towns of Sindi and Lihula in 2019.

Acceleration in the construction of the 5G mobile network

The construction of the mobile network conti-nued at a good rate across Finland in 2019, focusing especially on larger cities. During the year, we built 5G and 4G projects for our customers in the form of new base stations

and capacity expansions. Our customers are currently making significant investments

in the 5G network, which also predicts promising growth for the years to come.

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SustainabilityThe core of our sustainability goals – Business, People and Environment – support the creation of a smart society.

Empower’s aim is to help its customers develop their business using Empower’s services. In order to realize this task, we are committed to complying with the strictest statutory and ethical requirements in all of our business. They include responsibility towards our employees, partners and other stakeholders, and society.

Empower is committed to the UN Sustainable Development Goals (SDGs) in its operations. The objective of the Sustainable Development Goals is to influence global challenges relating to the environment, people and economic development, among others. We promote affordable and clean energy, sustainable industry, innovation and infrastructures, decent work and economic growth, sustainable consumption and climate acts in our operations.

During 2019, we made progress towards our goals with regard to many of our sustainability objectives. Good results were achieved particularly as the Group’s key lost workday injury frequency indi-cator TRIF and the health rate of the Finnish personnel achieved the targets. In fact, 52% of Empower employees were healthy throughout the year without any absence due to sickness. With regard to business and environmental objectives, we are pursuing stronger growth this year.

BusinessEthical business

Sustainable supply chainInnovation

PeopleSafety at workWell-being at work

EnvironmentClimateCircular economy

SmartSociety

Economical growth and stability

Functioning ofsociety

Ecologicalsustainability

Good qualityof life

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Help for reducing the burden of work through ergonomic analysis The work of a power line installer is physically heavy, both with regard to the respiratory and cardiovascular systems and muscles. The work is performed outdoors all year round and to a high extent on high power line columns, highlighting many aspects of work safety aspects.

Empower’s power line construction sites in Seinäjoki and Ikaalinen conducted ergonomic analyses during the spring to investigate the burden of work postures and work ergonomics. Differences in the climbing techniques of people with differing experience were compared by measurements with the aim of identifying best practices to develop working methods. The measurements were made using wearable technology developed by the Finnish health technology start-up Myontec.

The purpose of the ergonomic analysis was to ensure the working capacity of Empower’s personnel and thereby take measures to help employees cope better in their physically heavy work. The study found several work phases in which switching working postures and pacing and preparing work phases affect the physical burden. A physically active way of life and good muscle condition play a key role, and they also support well-being at work.

Positive environmental impacts and financial savings from the circular economyThe majority of Empower’s personnel work in diverse industrial duties in which appropriate work clothing is an essential part of work safety. Empower has cooperated on work clothing rental with the textile service company Lindström for almost a decade, and the use of clothes has been optimized in recent years in line with the principles of the circular economy.

According to Petri Lehtinen, Head of Procurement at Empower, the work clothing service has several benefits for business.

“By actively reviewing each piece of clothing in rental use, during the past 7 years we have decreased the average number of pieces of clothing used by a single person from 9.4 to 7.7, while the figure for other companies in the same industry is 9–10. The work clothing service is flexible according to our needs, as clothing can be returned from Empower back to Lindström’s warehouse and even be reused by other Lindström customers, if necessary. This way, unnecessary purchased clothing does not remain in Empower’s inventories, and this naturally also translates into savings in costs. By renting our work clothing, we can also influence the amount of environmental emissions generated, as Lindström takes care of washing,” says Lehtinen.

The core of our sustainability goals – Business, People and Environment – support the creation of a smart society.

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Juha Silvola President, PowerJohanna Nurkkala

CLO

Maija Kaski CHRO

Johan Fagerström CTO

Mikko VaahersaloCEO, President, Smart Industry

Mari Leiste CFO

Anna Lindén Interim President, Connectivity

Margus Veensalu President, Baltics

Group Executive Team

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Empower Oyj Consolidated financial statements

2019

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Empower Oyj is the parent company of the Empower Group, and it started operating in December 2015 in connection with the corporate restructuring of the Group. Empower Group was established in 1998 in connection with the incorporation of PVO’s network construction and maintenance functions.

Empower Oyj applies FAS accounting principles in its consolidated financial statements.

Review of the company’s business operations, financial position, results and other factors that have an effect on business developmentEmpower is an international service and digital platform provider that is building a smart society.

Our business consists of maintaining power plants and factories, executing energy market operations and building and maintaining smart power networks and telecommunications connections. We develop digital solutions based on our long-term experience in the above-mentioned businesses. We also develop modular software and provide services that help our energy sector customers manage their data flows and Big Data. We operate in the Nordic and Baltic countries.

In the financial period 2019, the Empower Group’s revenue decreased by 17.9 percent.

MEUR 2019 2018 CHANGE %

Finland 153.9 182.0 -15.4

Estonia 37.1 35.5 4.6

Sweden 7.3 26.7 -72.7

Latvia 12.1 13.2 -8.1

Lithuania 2.6 2.0 26.2

Group 213.0 259.4 -17.9

MEUR 2019 2018 CHANGE %

Power 102.7 125.2 -18.0

Connectivity 45.2 59.2 -23.7

Smart Industry 36.6 49.7 -26.3

Energy Intelligence 28.4 25.2 12.7

Group 213.0 259.4 -17.9

Revenue per country

Revenue per business area

The revenue of the Power, Connectivity and Smart Industry business areas decreased year-on-year. The revenue of the Power business area’s projects in Sweden dropped significantly. The decrease in the revenue of the Connectivity business area was mainly due to a significant decrease in fiber optic projects compared to the previous year, while revenue from mobile installation work increased year-on-year. A decrease in standalone projects and lower annual maintenance of power plants contributed to the decrease in the Smart Industry business area. The revenue of the Energy Intelligence business area continued to grow, and new multi-year contracts are expected to increase the revenue in subsequent years as well. The Group’s order book strengthened further during the financial period, and the order book outlook for 2020 is favorable, covering a significant share of the revenue target for 2020 at the start of the financial period.

Empower’s EBITDA amounted to EUR 0.6 million, decreasing significantly compared to the previous financial period. Losses incurred in the projects of the Power business area were large, which is the main reason for the weakening of profitability in the Group as a whole. The profitability of the Connectivity business area improved, even though the year was still at a loss. The relative profitability of the Smart Industry and Energy Intelligence business areas improved year-on-year and was at a good level. The EBITDA outlook for 2020 is more favorable in all business areas than in 2019. The significant changes made during 2019 in the reorganization of operations and follow-up of projects will improve our profitability in all business areas.

Report by the Board of Directors and Financial Statements 2019

The revenue by country and business area is shown in the tables below.

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The impacts of the cyclicality of the first half of the year and loss-making projects were reflected in the company’s cash position that was tight already before. In spite of the strained cash position, the company has succeeded in maintaining its operations at the normal level and increased its order book.

Significant events during and after the financial periodDuring 2019, Empower’s business operations developed favorably in all business areas. The order book realizing in and after 2020 was increased in many business areas. The expansion and diversification of the customer base continued, too. On the basis of the feedback surveys conducted, Empower’s customer satisfaction and loyalty was good.

The energy transformation that is proceeding at a rapid rate in Finland supports growth in the Power business area. Approximately 1,000 MW of new wind power is added to the grid each year, which is reflected in a clearly growing need for investments in the main grid, power stations and trans-mission networks. The company also terminated a few loss-making service contracts by the end of the year. At the start of 2020, the order book of business operations was at a materially healthier level than the previous year.

In the ICT sector, Empower retained as a significant industry operator in Finland. The position was further strengthened with Empower securing signi-ficant new customer agreements. Mobile network construction grew and is expected to growth further in the years to come, and growth in optic fiber projects is also expected to take growth during the current financial period.

2019 2018

CHANGE € 1 000 €1,000 €

% OF REVENUE 1 000 €

% OF REVENUE

Finland 8,060 5.2 6,541 3.6 1,519

Estonia

-8,952 -24.1 -3,555 -10.0 -5,397Sweden

745 10.2 597 2.2 148

Latvia 521 4.3 1,788 13.6 -1,267

Lithuania 265 10.3 208 10.2 57

Group 639 0.3 5,579 2.2 -4,940

2019 2018

CHANGE € 1,000 €1,000 €

% OF REVENUE 1,000 €

% OF REVENUE

Power -11,345 -11.0 -3,064 -2.4 -8,281

Connectivity -800 -1.8 -1,856 -3.1 1,056

Smart Industry 3,217 8.8 4,067 8.2 -850

Energy Intelligence 7,681 27.0 5,200 20.6 2,481

Other 1,886 1,231 654

Group 639 0.3 5,579 2.2 -4,940

EBITDA per business area

EBITDA per country

EBITDA by country and business area is shown in the tables below.

MEUR 2019 2018 2017

Revenue 213.0 259.4 245.3

EBITDA 0.6 5.6 16.4

Profit for the period -32.4 -15.0 3.6

The Group’s key figures

The order book of the service agreements business of the Smart Industry business area remained at a good level, and it is expected to grow during the current financial period. The company established a new modern maintenance center in Hamina, where the company’s proprietary new digital functions are in use. The Hamina maintenance center was named Smart Factory. The company focused on conceptualizing its own products while focusing on producing a few core products at its maintenance centers. The Smart Factory implemented e.g. IoT and 5G solutions. The transparency of business operations makes itpossible to use information throughout the value chain from customers tosuppliers. It provides almost infinite opportunities for enhancing efficiencyand optimizing production.

The Energy Intelligence business strengthened its position as the market leader in Finland. The development of the Enerim platform proceeded as expected, making several new modules available to our customers. Empower’s market share continued to grow strongly with the acquisition of new custo-mers in customer information system deliveries to energy companies. The demand for Energy Intelligence services increased significantly during the financial period and customer loyalty remained extremely high. During the current financial period, Empower Oyj has signed an agreement on divesting the Energy Intelligence business. The sale is expected to be completed during spring 2020.

Empower has made significant investments in developing both functional processes and new service offering using digitalization and new technological innovations. Our new fully digital service that has led the furthest to joint projects with customers is called EmSite Teclo.

The WHO announced a pandemic on March 12, 2020, due to the spreading of the coronavirus. The company prepared for this by establishing a preparedness team on March 13, 2020. It is the task of the team to ensure and maintain up-to-date guidelines for the personnel, while monitoring all guidelines issued by the authorities concerning the situation. The pandemic does not compromise the business operations of the company because the company is primarily engaged in building and maintaining infrastructure critical to the society’s functions, the operating condition of which has to be maintained also during a pandemic.

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Research and developmentIn order to continue facilitating high-quality, customer-driven operations and efficient service development in the future, we have significantly strengthened our R&D organization and developed a secure and reliable technology platform for future customer needs.

The Empower Group’s companies carried out platform-related R&D projects in the development of information systems related to energy measurements and invoicing as well as in the work planning and control systems related to the installation and maintenance of telecom and power networks. The company also invested heavily in digital products and solutions that enhance safety and production efficiency.

During the financial period 2019, the R&D costs of the Group’s companies stood at EUR 9.5 million (EUR 8.7 million), comprising 4.5 per cent (3.4 per cent) of their revenue.

InvestmentsDuring the financial period, the information system, maintenance and annual investments of the Empower Group’s companies totaled EUR 14.0 million (EUR 12.5 million).

Estimate of future development and business outlookAt the end of 2019, the Group’s order book was very good and distributed over several future years. The outlook concerning profitability is good in the Smart Industry and Energy Intelligence business areas. As a result of programs launched to improve efficiency and the improving market situation, profitability is expected to increase further in the Power and Connectivity business areas. Revenue is expected to grow moderately to ensure quality and efficiency.

Estimate of risksThe Group’s financial performance is influenced by the sector risks of the largest customer segments. Should these risks materialize, they may reduce demand for the services of Empower Group’s companies.

The Empower Group’s companies have some large solvent customers, and their purchasing behavior may have a significant impact on the result of the sectors of the business operations in question.

The price risk of material and equipment purchases is minimised through agreements. Salary, service and material purchase costs can be transferred to sales prices, partially or with a delay.

The company has large projects in which incidents in the subcontracting and material chain are possible due to qualitative or functional issues, for instance.

The Group companies have insurance policies for liability for damage or loss to material or property.

Risks associated with the sufficiency of the Group’s financing are discussed below under “Going concern”, but in general, risks associated with financing and liquidity are possible because the company’s project business requires millions of euros of capital.

2019 2018 2017

Number of personnel average 1,558 1,643 1,683

Salaries and wages 68,246 70,833 73,475

Personnel

Going concernThe Group’s balance sheet structure is indebted and the Group’s equity was negative on December 31, 2019. The Group is engaged in continuous discus-sions with its financiers in order to stabilize the situation, and the Group raised a total of EUR 8 million of additional financing in February–December 2020. Empower Oyj signed an agreement concerning the sale of shares in Empower IM Oy on March 18, 2020, and the sale will be completed on June 30, 2020. In addition, a letter of intent on the sale of the Group was signed on May 25, 2020. One of these transactions or other additional financing is a prerequisite for the continuation of operations.

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The company’s sharesThe parent company has a total of 1,600,000 shares, divided into 1,000,000 A shares which include a right to vote and 600,000 B shares without a right to vote. The B shares have a priority over A shares to dividends, as described in more detail in the Articles of Association.

Legal disputesIn 2013, the Finnish Competition and Consumer Authority conducted an inves-tigation in the Group’s subsidiary Empower IN Oy and the Group’s then parent company TPI Holding Oy to find out whether Empower IN Oy (formerly Empower Oy) had participated in actions in breach of competition law in Finland in the business of constructing and designing of high voltage transmission lines during the previous decade. The investigation was initiated by Empower IN Oy as it had been made aware of such claims. The companies belonging to the Empower Group, including Empower Oyj, are therefore released from paying any fines. With its (non-final) decision of March 30, 2016, the Market Court rejected the Finnish Competition and Consumer Authority’s claim for a fine as statute-barred. The authority has appealed to the Supreme Administrative Court, which, for its own part, has requested a preliminary ruling of the courts of the European Union on questions relating to certain aspects. If the Supreme Administrative Court concludes in a final decision that Empower IN Oy (formerly Empower Oy) is guilty of having acted in breach of competition law, this may lead to claims for damages. Based on the information available at this stage, the company’s Board of Directors does not consider it necessary to make a related provision in the annual accounts.

The company’s managementMembers of Empower Oyj’s Board of Directors during the financial period were:

Ordinary members:

Bo Elisson (Chair) (until November 18, 2019) Rainer Häggblom (ordinary member January 1–November 21, 2019, Chair as of November 22) Heikki Hiltunen (as of November 28, 2019) Mari Leiste (as of November 28, 2019) Jari Onniselkä (November 28, 2019–February 27, 2020) Johan Bjurström (until November 18, 2019) Matti Manninen (until June 27, 2019) Tommy Wikström (until June 27, 2019)

President and CEO:

Jari Onniselkä (until February 27, 2020) Mikko Vaahersalo (as of February 27, 2020)

Auditors:

Ernst & Young Oy, authorized public accountants, with Martin Grandell, Authorized Public Accountant, acting as the principal auditor.

Proposals of the Board of Directors to the Annual General MeetingThe Board of Directors proposes to the Annual General Meeting that the company’s loss for the period, EUR -7,477,899.44, be transferred to retained earnings on the balance sheet and that no dividend be distributed.

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INCOME STATEMENT (1 EUR) NOTEGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

REVENUE 1 212,985,875.90 259,407,929.18 61,771,604.65 67,180,420.18

Change in inventories of finished goods and work in progress -3,782,684.83 1,159,419.78 -1,822.25 22,849.19

Work performed for own purposes and capitalized 7,996,368.16 5,063,124.57 704,033.56 336,593.64

Other operating income 2 2,080,113.63 1,225,158.25 17,436,071.16 17,485,782.55

Share of profit/loss accounted for using the equity method 444,271.24 657,107.56 0.00 0.00

Materials and services 3

Raw materials and consumables

Purchases during the period -30,602,395.94 -49,324,844.20 -13,869,854.64 -19,922,859.59

Increase/decrease in inventories -220,224.41 -178,954.68 0.00 0.00

External services -72,915,865.07 -90,076,172.37 -40,544,029.89 -41,257,864.25

-103,738,485.42 -139,579,971.25 -54,413,884.53 -61,180,723.84

Employee benefits expenses 4

Salaries and fees -68,246,176.29 -70,833,104.00 -3,970,555.25 -3,475,198.03

Social security expenses

Pension expenses -10,492,815.23 -11,872,964.52 -684,217.03 -771,560.29

Other employee benefits -4,323,707.23 -4,706,407.03 -93,436.20 -92,839.88

-83,062,698.75 -87,412,475.55 -4,748,208.48 -4,339,598.20

Depreciation, amortization and impairment 5

Depreciation and amortization -6,620,312.90 -4,495,808.79 (* -2,144,871.36 -1,496,596.19 (*

Amortization of goodwill on consolidation and decrease in group reserve -16,016,201.65 -6,270,269.52 0.00 0.00

Impairment of non-current assets -730,850.19 -15,504.66 -11,578.72 -13,087.16

-23,367,364.74 -10,781,582.97 -2,156,450.08 -1,509,683.35

Other operating expenses 6 -32,283,931.57 -34,941,536.64 (** -19,306,283.47 -18,931,129.14 (**

OPERATING PROFIT (LOSS) -22,728,536.38 -5,202,827.07 -714,939.44 -935,488.97

Financial income and expenses 7 -9,149,635.47 -9,406,089.27 (*** -6,046,832.47 -5,027,596.00 (***

PROFIT (LOSS) BEFORE APPROPRIATIONS AND TAX -31,878,171.85 -14,608,916.35 -6,761,771.91 -5,963,084.97

Appropriations

Change in cumulative accelerated depreciation 0.00 0.00 -714,486.83 -784,771.76

Group contribution 0.00 0.00 0.00 0.00

0.00 0.00 -714,486.83 -784,771.76

Income tax 8 -352,477.02 -192,155.11 -1,640.70 65,731.15

Minority interest -142,199.92 -180,090.41 0.00 0.00

PROFIT (LOSS) FOR THE PERIOD -32,372,848.79 -14,981,161.87 (**** -7,477,899.44 -6,682,125.58 (****

Income Statement, Group and Parent Company

GROUP The comparison figures for 2018 have been adjusted to match the presentation meth-od for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

(* Adjustment of amortization of financial lease 549,446.83 (** Adjustment of financial lease rent -868,135.25(*** Adjustment of financial lease interest 101,274.38 (**** Impact of adjustments of financial leases totaling -217,414.04

PARENT COMPANY

(* Adjustment of amortization of financial lease 169,637.02 (** Adjustment of financial lease rent -205,737.34 (*** Adjustment of financial lease interest 12,804.87(**** Impact of adjustments of financial leases totaling 23,295.45

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BALANCE SHEET (1 EUR) NOTEGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

NON-CURRENT ASSETS

Intangible assets 9

Intangible rights 12,878,647.53 7,968,379.34 89.52 134.86

Consolidated goodwill 10 90,055,858.38 106,072,060.03 0.00 0.00

Other intangible assets 10,158,454.78 3,468,930.14 (* 1,413,921.18 1,393,722.49 (*

Advance payments for intangible assets 2,855,343.33 10,765,773.55 953,345.92 1,463,447.50

115,948,304.02 128,275,143.12 2,367,356.62 2,857,304.85

Tangible assets 11

Buildings and structures 83,419.57 109,393.09 0.00 0.00

Machinery and equipment 9,305,298.33 7,578,410.72 (** 7,428,869.17 5,443,158.94 (**

Other tangible assets 535,508.12 703,345.30 18,795.80 53,893.45

Advance payments and work in progress 177,194.47 114,178.47 124,514.47 106,114.47

10,101,420.49 8,505,327.58 7,572,179.44 5,603,166.86

Investments 12

Investments in Group companies 0.00 -1.99 125,479,383.84 121,479,383.84

Investments in associated companies 1,101,378.80 657,107.56 0.00 0.00

Other shares and equity interests 1,249.99 2,682.33 0.00 0.00

1,102,628.79 659,787.90 125,479,383.84 121,479,383.84

Assets

Current assets

BALANCE SHEET (1 EUR) NOTEGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

INVENTORIES 13

Raw materials and consumables 1,527,695.91 1,608,689.79 0.00 0.00

Work in progress 374,426.68 5,121,440.70 0.00 0.00

Advance payments for inventories 20,410.67 8,479.00 0.00 0.00

1,922,533.26 6,738,609.49 0.00 0.00

RECEIVABLES

Non-current 14

Loan receivables, external 0.00 799,717.98 0.00 799,717.98

Other receivables, external 296,870.72 233,187.36 0.00 0.00

Deferred tax assets 0.00 0.00 0.00 0.00

296,870.72 1,032,905.34 0.00 799,717.98

Current 15

Current receivables 21,029,715.48 25,001,251.30 30,627,849.55 101,309,503.70

21,029,715.48 25,001,251.30 30,627,849.55 101,309,503.70

Cash and bank 1,850,141.27 3,066,081.93 238.78 9,002.71

TOTAL ASSETS 152,251,612.82 173,279,106.66 166,047,008.60 232,058,079.94

Balance Sheet, Group and Parent Company

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BALANCE SHEET (1 EUR) NOTEGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

Equity

Share capital 16 80,000.00 80,000.00 80,000.00 80,000.00

Unrestricted equity reserve 91,462,196.83 91,462,196.83 91,462,196.83 91,462,196.83

Retained earnings -95,873,966.67 -81,032,648.03 (*** -51,413,814.16 -44,731,688.19 (***

Profit/loss for the financial period -32,372,848.79 -14,981,161.87 (**** -7,477,899.44 -6,682,125.58 (****

-36,704,618.63 -4,471,613.07 32,650,483.23 40,128,383.06

Minority interest 625,185.16 605,373.95 0.00 0.00

Depreciation difference 0.00 0.00 1,847,656.28 1,133,169.45

Mandatory provisions 5,669,675.62 4,524,831.68 84,257.58 122,410.91

Liabilities

Non-current 18

Subordinated loans, external 0.00 0.00 0.00 0.00

Loans from financial institutions 5,552,781.75 3,694,958.93 (***** 5,354,229.64 3,364,610.73 (*****

Trade payables, external 5,259.70 17,960.46 0.00 0.00

Liabilities to Group companies 0.00 0.00 13,465,050.00 13,465,050.00

Deferred tax liabilities 19 369,531.26 226,633.89 0.00 0.00

Other liabilities, external 0.05 257,440.47 0.01 0.01

5,927,572.76 4,196,993.75 18,819,279.65 16,829,660.74

Current 20

Loans from financial institutions, external 85,043,986.55 80,319,848.32 (****** 54,463,818.54 54,419,605.42 (******

Advances received, external 1,993,045.42 5,259,667.88 0.00 0.00

Trade payables, external 27,640,219.74 26,347,173.97 17,925,545.61 16,550,936.97

Liabilities to Group companies -0.08 -0.08 14,031,108.52 81,201,350.06

Other liabilities, external 27,954,896.51 23,795,655.19 17,771,352.14 16,832,389.60

Accruals and deferred income, external 34,101,649.79 32,701,175.06 8,453,507.05 4,840,173.73

176,733,797.92 168,423,520.35 112,645,331.86 173,844,455.78

TOTAL EQUITY AND LIABILITIES 152,251,612.82 173,279,106.66 166,047,008.60 232,058,079.94

GROUP The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

(* Adjustment of Financial lease net expenditure of intangible rights -14,622.23 (** Adjustment of Financial lease net expenditure of Machinery and equipment -1,732,137.83 (*** Adjustment of Financial lease Retained earnings -81,746.08 (**** Adjustment of Financial lease 2018 Profit/loss for the financial period -217,414.04 (***** Adjustment of Financial lease non-current liabilities -886,948.65 (****** Adjustment of Financial lease current payables -560,651.29

PARENT COMPANY (* Adjustment of Financial lease net expenditure of intangible rights -14,622.23 (** Adjustment of Financial lease net expenditure of Machinery and equipment -232,722.59 (*** Adjustment of Financial lease Retained earnings 806.38 (**** Adjustment of Financial lease 2018 Profit/loss for the financial period -23,295.45 (***** Adjustment of Financial lease non-current liabilities -110,135.66 (****** Adjustment of Financial lease current payables -114,720.09

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Cash flow statement (1,000 €)GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

PROFIT (LOSS) FOR THE PERIOD -32,373 -14,981 (* -7,478 -6,682 (*

Depreciation, amortization and impairment 23,367 10,782 (* 2,156 1,510 (*

Gains and losses of disposals of fixed assets -215 -283 -41 -3

Share of profit/loss accounted for using the equity method -444 -657 0 0

Unrealized foreign exchange gains and losses 45 -14 0 0

Financial income and expenses 9,105 9,420 (* 6,047 5,028 (*

Appropriations 0 0 714 785

Income tax 352 192 2 -66

Minority interest 142 180 0 0

Other adjustments 685 181 685 0

Cash flow before change in working capital 664 4,819 2,085 571

Change in working capital

Increase/decrease in inventories 4,816 -1,147 0 0

Increase/decrease in trade and other receivables 2,518 -1,965 70,529 -77,958

Increase/decrease in trade payables 1,504 6,746 2,067 21,988

Change in provisions 1,210 -1,507 -38 -78

Cash flows from operating activities before financial items and tax 10,711 6,946 74,643 -55,270

Interest paid -5,108 -5,139 (* -3,375 -3,218 (*

Dividends received 0 5 1,075 75

Interest received -6 120 0 170

Other financial items -372 -1,302 -272 -159

Income taxes paid -88 -118 -2 66

Repayments of loan receivables 800 0 800 0

Cash flows from operating activities 5,937 511 72,868 -58,541

Cash flows from investing activities

GROUP2019

GROUP2018

PARENT COMPANY

2019

PARENT OMPANY

2018

Purchase of tangible and intangible assets -10,010 -6,949 (* -661 -823 (*

Proceeds from sale of tangible and intangible assets 894 136 (* 259 -40

Purchase of investments 0 -1 0 0

Increase/decrease in short-term invest-ments 0 0 -2,936 100

CASH FLOWS FROM INVESTING ACTIVITIES -9,116 -6,814 -3,337 -763

Cash flows from financing activitiesKONSERNI

2019KONSERNI

2018EMOYHTIÖ

2019EMOYHTIÖ

2018

Proceeds from current borrowings 4,959 7,912 (* 1,312 3,230

Repayments of current borrowings -910 -279 -120 0

Increase/decrease in current borrowings 0 546 -68,079 52,871

Proceeds from non-current borrowings 21 670 21 644

Payment of lease liabilities -5 0 (* 0 -182 (*

Payment of instalment liability -1,902 -1,063 -1,808 -988

Dividends paid -62 -175 0 0

Group contributions given and received 0 0 0 3,726

Loans granted 0 0 -736 0

Repayments of loan receivables -130 0 -130 0

CASH FLOWS FROM FINANCING ACTIVITIES 1,971 7,610 -69,540 59,303

NET CHANGE IN CASH AND CASH EQUIVALENTS -1,208 1,308 -9 0

Cash and cash equivalents 3,066 1,763 9 9

Net change in cash and cash equivalents -1,208 1,308 -9 0

Effects of exchange rate fluctuations on cash held -8 -5 0 0

Cash and cash equivalents 1,850 3,066 0 9

Cash Flow Statement

(* The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

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Basis of preparation of the consolidated financial Statements

Basis of preparation of the financial Statements

The consolidated financial statements of the Group’s parent company Empower Oyj and separate financial statements of the parent company have been prepared in accordance with the Finnish Accounting Act (FAS).

Scope of the consolidated financial statements

Companies over which the Group has control are consolidated in the consoli-dated financial statements. Control exists when the Group directly or indirectly through its subsidiaries holds more than 50% of votes or when the Group has a contractual right to determine the principles of a company’s finances and business operations or when the Group has the ability to appoint or dismiss the majority of the Board members of a company.

Subsidiaries acquired during the financial period are included in the financial statements as of the date of acquisitions, divested subsidiaries until the date on which they were divested.

More detailed information about the companies included in the Group are specified in the note on share breakdown (12).

Going concern

The consolidated financial statements have been prepared in accordance with the going concern principle. The consolidated goodwill has been tested for impairment, and according to the testing, there is currently no need for write-downs. The company’s Board of Directors has assessed the company’s state, future cash flow projections and financial position and, based on risk analysis, found that the grounds for applying the going concern principle exist.

Going concern

The Group’s balance sheet structure is indebted and the Group’s equity was negative on December 31, 2019. The Group is engaged in continuous discussions with its financiers in order to stabilize the situation, and the Group raised a total of EUR 8 million of additional financing in February–December 2020. Empower Oyj signed an agreement concerning the sale of shares in Empower IM Oy on March 18, 2020, and the sale will be completed on June 30, 2020. In addition, a letter of intent on the sale of the Group was signed on May 25, 2020. One of these transactions or other additional financing is a prerequisite for the continuation of operations.

Mutual shareholding

The consolidated financial statements have been prepared in accordance with the acquisition method. The difference in shareholders’ equity corresponding to the acquisition cost and acquired holding in subsidiaries, consolidated asset or negative consolidation difference, is capitalized/recognized through profit and loss with an amortization period of 5–20 years.

Internal business transactions and margins

Transactions, receivables and debts between Group companies, margins of internal services and internal distribution of profit have been eliminated.

Minority interest

Minority interests have been separated from the Group’s equity, voluntary provisions and profit for the period and reported as a separate items under the shareholders’ equity and liabilities of the consolidated balance sheet and income statement.

Translation differences

The income statements of foreign group companies have been translated at the average rate for the financial period, and balance sheets have been converted into euros at the rate confirmed by the European Central Bank on the closing date. Any exchange rate differences from the translation, as well as translation differences from the translation of subsidiaries’ equity, are reported in “Retained earnings.”

Leasing

Leasing payments are treated as lease expenses. Unpaid leasing payments are reported as lease liabilities in the notes to the financial statements. Capital gains from “sale and leaseback” agreements concluded during the financial period are allocated to the lease term of these agreements. The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

Fixed assets

Intangible and tangible fixed assets are recognized on the balance sheet at historical cost less depreciation, amortization and impairment according to plan.

Depreciation and amortization according to plan has been calculated as straight-line depreciation according to the estimated financial service life of assets. Depreciation has been made starting from the activation month of each asset. The service lives are:

• Intangible rights 5–10 years• Development expenses 3–5 years• Goodwill 5–10 years• Goodwill on consolidation 5–20 years• Other long-term expenses 5–10 years• Machinery and equipment 3–15 years• Buildings and structures 10–30 years• Other tangible assets 3–5 years

The financial service life of more than five years for goodwill can be considered to be in line with good accounting practices, due to the related long-term profit expectations.

A write-up is recognized for investments in fixed assets on account of changed expected future income. The write-up is recognized using the prudence principle if the enterprise value financial statements of the asset measured, taking net debt and minority interest into account, is materially and permanently higher than the historical cost at the closing date. The write-up is recognized directly in the revaluation reserve under equity.

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A write-down is recognized for investments in fixed assets on account of impairment testing. The write-down is recognized using the prudence principle if the impairment testing indicates that enterprise value financial statements of asset measured, taking net debt and minority interest into account, is materially lower than the historical cost at the closing date.

A write-down is recognized for fixed assets if the expected income from the asset has materially decreased.

Inventories

Raw materials and consumables in inventories are measured at weighted average cost based on the lower of historical cost or replacement cost.

Work in progress in inventories are measured at variable costs.

Revenue

Sales of products and services are recognized upon their delivery, with the exception of long-term projects, which are recognized as revenue on the basis of the percentage of completion.

Long-term projects are recognized as revenue based on percentage of completion. The percentage of completion is primarily calculated based on actual costs and estimated total costs. The projected losses of loss-making projects included in the order book are fully expensed.

Costs directly associated with securing significant long-term projects can be recognized as their expenses, provided that they can be separately identified and reliably measured and if securing the project is probable. Costs directly associated with securing a project are expensed over the duration of the project.

Research and developmentResearch expenses are recognized as expenses for the financial period. Development expenses are capitalized when it is probable that the development project will provide future economic benefits and the expenses can be reliably measured. Development expenditure capitalized with particular prudence are amortized over their useful lives, but not over more than five years.

Pension arrangements

In the Group’s Finnish companies, pension cover is arranged with a Finnish employment pension insurance company, and the foreign companies comply with the local practice.

The 500-day income-linked unemployment security of dismissed employees is funded with the employer’s liability component of the unemployed person’s unemployment allowance expenses at ages 60–63 charged by the Employment Fund to the Group’s Finnish companies in arrears. The probable amount of the liability estimated by the Group’s Finnish companies is recognized as an expense for the year the liability emerges in the employee benefits expenses item “Other employee benefits,” and in mandatory provisions. The provision is cancelled against realized charges by the Employment Fund.

Income tax

Estimated taxes corresponding to the Group companies’ profits, adjustments to tax for previous financial periods and change in deferred tax liabilities and assets are recognized as tax. Deferred tax liabilities and assets are calculated for temporary differences between taxation and financial statements using the tax rate confirmed at the closing date. Following the prudence principle, the company has not recognized deferred tax assets on the balance sheet for confirmed losses and loss to be confirmed for the financial period.

Cash and bank

The Finnish Group companies use a Group bank account with an overdraft faci-lity for payment traffic. The subsidiaries report deposits in the Group account as a current receivable from the Group’s parent company. Correspondingly, the Group’s parent company reports a liability to the subsidiary. A subsidia-ry’s Group account can also be negative, in which case the debt/receivable relationship is reversed. Furthermore, the Group’s parent company reports the total balance of the Group account in cash and bank on its own balance sheet when the balance is positive. If the balance is negative, it is reported in current interest-bearing liabilities. The cash and cash equivalents of the Group’s foreign subsidiaries are reported in Cash and bank on the consoli-dated balance sheet.

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1,000 €GROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

Power networks 102,723 125,206 0 0

Telecommunications networks 45,187 59,234 0 0

Industry 36,631 49,731 0 0

Information management 28,435 25,237 0 0

Other 11 0 11 0

Internal revenue 0 0 61,761 67,180

Revenue by business area 212,986 259,408 61,772 67,180

1. Revenue

Notes to the Financial Statements

International revenue 59,075 77,396

Domestic revenue (Finland) 153,910 182,012 61,772 67,180

Revenue international/domestic, total 212,986 259,408 61,772 67,180

Revenue, percentage of completion method

Revenue recognized as revenue according to the percentage of completion method for the financial period

19,976 27,259 0 0

Revenue recognized as revenue according to the percentage of completion method for non-delivered projects in the financial period and previous financial periods

45,050 43,638 0 0

Revenue not recognized according to the percent-age of completion method (order book)

24,366 30,459 0 0

1,000 € GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Raw materials and consumables -30,602 -49,325 -13,870 -19,923

Increase/decrease in inventories -220 -179 0 0

Raw materials and consumables -30,823 -49,504 -13,870 -19,923

External services -72,916 -90,076 -40,544 -41,258

Materials and services, total -103,738 -139,580 -54,414 -61,181

3. Materials and services

1,000 €GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Other operating income

Gains of disposals of fixed assets 250 288 41 3

Rental income 2 54 0 54

Grants received 779 481 0 0

Other internal operating income 0 0 599 164

Group charges 0 0 16,759 17,084

Other items of other operating income 1,050 402 37 180

Total other operating income 2,080 1,225 17,436 17,486

2. Other operating income

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5. Depreciation, amortization and impairment

1,000 €GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Intangible assets

Amortization of intangible rights -2,113 -1,203 (* 0 25 (*

Depreciation and amortization of other long-term expenditure -1,928 -1,154 -932 -827

Total -4,041 -2,357 -932 -802

Tangible assets

Depreciation of machinery and equipment -2,059 -1,639 (** -1,176 -671 (**

Depreciation of buildings and structures -69 -65 0 0

Depreciation of tangible assets -451 -435 -36 -23

Total -2,579 -2,138 -1,213 -694

Depreciation and amortization -6,620 -4,496 -2,144 -1,496

Amortization of goodwill on consolidation and decrease in group reserve -16,016 -6,270 0 0

Impairment

Impairment of non-current assets -731 -16 -12 -13

Depreciation, amortization and impairment total -23,367 -10,782 -2,156 -1,510

1,000 € GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Salaries and fees -68,246 -70,833 -3,971 -3,475

Pension expenses -10,493 -11,873 -684 -772

Other employee benefits -4,324 -4,706 -93 -93

Total employee benefits expenses -83,063 -87,412 -4,748 -4,340

Management salaries and remuneration -2,088 -2,299 0 0

4. Salaries and fees

1,000 €GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

White collar 772 780 51 55

Blue collar 785 863 0 0

Total 1558 1643 51 55

Average number of personnel

6. Other operating expenses

1,000 €GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Travel -4,969 -4,344 -943 -1,105

Leasing -1,241 -1,773 (*** -496 -512 (***

Rents -5,270 -6,731 -4,020 -4,575

External services -4,365 -5,156 -3,123 -3,658

Information system expenses -4,597 -4,097 -4,447 -3,618

Voluntary employee benefits expenses -1,804 -2,230 -2,165 -1,534

Supplies and consumables -2,466 -372 -159 -271

Maintenance of properties -786 -1,133 -590 -835

Other administrative expenses -6,785 -9,104 -3,364 -2,823

Total other operating expenses -32,284 -34,942 -19,306 -18,931

Auditor’s fees

PricewaterhouseCoopers Oy

Audit fees, actual audit -339 -336 -277 -307

Audit fees, total -339 -336 -277 -307

PARENT COMPANYThe comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

(* Adjustment of financial lease amortization of Intangible rights 25,066.69 (** Adjustment of financial lease Machinery and equipment 144,570.34 (** Adjustment of financial lease rent -205,737.34

GROUPThe comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

(* Adjustment of financial lease amortization of Intangible rights 25,066.69 (** Adjustment of financial lease Machinery and equipment 524,380.15 (** Adjustment of financial lease rent -868,135.25

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8. Income tax

1,000 €GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Income tax -203 0 0 0

Tax for previous accounting periods -7 -35 -2 66

Change in deferred tax liabilities and assets -143 -157 0 0

Income tax, total -352 -192 -2 66

1,000 €GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Financial income

Dividend income from Group com-panies 0 0 1,075 75

Dividend income from others 0 5 0 0

Income from investments 0 5 1,075 75

Long-term interest income from others 76 108 45 77

Long-term interest income from investments 76 108 45 77

Interest income from Group companies 0 0 46 141

Other financial income from others 725 61 488 61

Interest income from others 5 71 0 0

Interest and financial income total 731 132 535 202

Financial income total 806 245 1,655 354

7. Financial income and expenses

(* interest income from others 2015 includes a non-recurring voluntary interest accord of EUR 21,979 thousand received and voluntary interest accord of EUR 135 thousand given

1,000 €GROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Financial expenses

Interest expenses to Group companies 0 0 -51 -48

Interest expenses to others -8,925 -7,885 (*** -6,869 -5,063 (***

Other financial expenses -1,031 -1,767 -782 -270

Interest and financial expenses total -9,956 -9,651 -7,702 -5,381

Financial income and expenses total -9,150 -9,406 -6,047 -5,028

The items Interest income from others and Interest expenses to others include

Foreign exchange gains 5 71 0 0

Foreign exchange losses -61 -76 0 0

Foreign exchange gains and losses, total -55 -5 0 0

GROUP (*** Adjustment of financial lease interest 101,274.38

PARENT COMPANY (*** Adjustment of financial lease interest 12,804.87

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9. Intangible assets

1,000 €

DEVELOP-MENT

EXPENSES INTANGIBLE

RIGHTS

INTANGIBLE RIGHTS, RIGHT

OF USEGROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Intangible rights

Cost January 1 0 11,253 0 11,253 9,089 0 0

Increase January 1–December 31 0 2 0 2 0 0 0

Decrease January 1–December 31 0 -6 0 -6 -72 0 0

Reclassifications 0 7,021 0 7,021 2,236 0 0

Cost December 31 0 18,270 0 18,270 11,253 0 0

Cumulative amortization and impairment January 1 0 -3,285 0 -3,285 -2,113 0 0

Cumulative amortization on disposals and reclassifications 0 6 0 6 71 0 0

Depreciation and amortization for the financial period 0 -2,113 0 -2,113 -1,242 0 0

Cumulative amortization and impairment December 31 0 -5,392 0 -5,392 -3,285 0 0

Carrying amount December 31 0 12,879 0 12,879 7,968 0 0

OTHER INTANGIBLE

ASSETSGOODWILL

GOODWILL ON CONSOLIDA-

TION2019 2018 2019 2018

Other intangible assets

Cost January 1 10,191 0 125,405 135,596 (****

134,775(*

3,758(****

3,746(*

Increase January 1–December 31 18 0 0 18 97 17 13

Decrease January 1–December 31 -769 0 0 -769 -53 0 -36

Reclassifications 9,296 0 0 9,296 777 936 34

Cost December 31 18,735 0 125,405 144,141 (**** 135,596 4,710 3,758

1,000 €

OTHER INTANGIBLE

ASSETSGOODWILL GOODWILL ON

CONSOLIDATION GROUP2019

GROUP2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Other intangible assets

Cumulative amortization and impairment January 1

-6,722 0 -19,333 -26,055(****

-18,682 (**

-2,364(****

-1,559 (**

Cumulative amortization on disposals and reclassifications

74 0 0 74 39 0 22

Depreciation and amortization for the financial period

-1,929 0 -6,270 -8,199 -7,413(*** -932 -828

(***

Impairment 0 0 -9,746 -9,746 0 0 0

Cumulative amortization and impairment December 31

-8,577 0 -35,350 -43,926 -26,055 -3,297 -2,364

Carrying amount December 31 10,158 0 90,056 100,214 109,541 1,414 1,394

Advance payments and work in progress

Cost January 1 10,766 10,766 7,530 1,463 758

Increase January 1–December 31 9,487 9,487 6,254 1,110 740

Decrease January 1–December 31 -1,071 -1,071 -5 -685 0

Reclassifications -16,327 -16,327 -3,013 -936 -34

Cost December 31 2,855 2,855 10,766 953 1,463

Carrying amount December 31 2,855 2,855 10,766 953 1,463

Intangible assets, total 115,948 115,948 128,275 2,367 2,857

GROUP The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued. (* Adjustment of Financial lease cost of intangible rights -75,200.00 (** Adjustment of Financial lease Cumulative amortization January 1, 2018 35,511.09 (*** Adjustment of Financial lease Depreciation and amortization for the financial period 25,066.68 (**** Adjustment of Financial lease net expenditure of intangible rights January 1, 2019 -14,622.23

PARENT COMPANY The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued. (* Adjustment of Financial lease cost of intangible rights -75,200.00 (** Adjustment of Financial lease Cumulative amortization January 1, 2018 35,511.09 (*** Adjustment of Financial lease Depreciation and amortization for the financial period 25,066.68 (**** Adjustment of Financial lease net expenditure of intangible rights January 1, 2019 -14,622.23

Notes to the balance sheet

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10. Consolidated goodwillCONSOLIDATED GOODWILL 2019

Cost, January 1 125,405

Decrease during the period 0

Cost, December 1 125,405

Cumulative amortization and impairment, January 1 -19,333

Depreciation and amortization -6,270

Impairment (-), Goodwill on consolidation -9,746

Cumulative amortization and impairment, December 31 -35,350

Carrying amount December 31, 2019 90,056

CONSOLIDATED GOODWILL 2018

Cost, January 1 125,405

Cost, December 1 125,405

Cumulative amortization and impairment, January 1 -13,063

Depreciation and amortization -6,270

Cumulative amortization and impairment, December 31 -19,333

Carrying amount December 31, 2018 106,072

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1,000 €GROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

Buildings and structures

Cost January 1 1,692 1,692 0 0

Increase January 1–December 31 43 0 0 0

Cost December 31 1,735 1,692 0 0

Cumulative amortization and impairment January 1 -1,583 -1,518 0 0

Depreciation and amortization for the financial period -69 -65 0 0

Cumulative amortization and impairment December 31 -1,652 -1,583 0 0

Carrying amount December 31 83 109 0 0

Machinery and equipment and other tangible assets

Cost January 1 19,950 (******* 14,857 (* 7,362 (******* 3,559 (*

Translation differences -1 -2 0 0

Increase January 1–December 31 4,300 5,274 (** 3,394 3,814 (**

Decrease January 1–December 31 -416 -182 (***** -337 -11

Reclassifications 10 3 0 0

Cost December 31 23,845 19,950 10,419 7,362

Cumulative amortization and impairment January 1 -11,668 (******* -9,908 (*** -1,865 (******* -1,202 (***

Cumulative amortization on disposals and reclassifications 183 299 (****** 107 6

Depreciation and amortization for the financial period -2,518 -2,059 (**** -1,213 -669 (****

Cumulative amortization and impairment December 31 -14,003 -11,668 -2,971 -1,865

Carrying amount December 31 9,841 8,282 7,448 5,497

Advance payments and work in progress

Cost January 1 114 0 106 0

Increase January 1–December 31 106 65 18 44

Decrease January 1–December 31 -43 49 0 62

Cost December 31 177 114 125 106

Carrying amount December 31 177 114 125 106

Tangible assets, total 10,101 8,506 7,572 5,603

11. Tangible assets

PARENT COMPANY (* Adjustment of Financial lease cost of Machinery and equipment -209,325.00 (** Adjustment of Financial lease increase in Machinery and equipment -181,789.49 (*** Adjustment of Financial lease Cumulative amortization January 1, 2018 13,821.56 (**** Adjustment of Financial lease Depreciation and amortization for the financial period 144,570.34(******* Adjustment of Financial lease net expenditure of Machinery and equipment January 1, 2019 -232,722.59

GROUP

(** Adjustment of Financial lease cost of Machinery and equipment -2,458,493.68(** Adjustment of Financial lease increase in Machinery and equipment -784,135.82 (*** Adjustment of Financial lease Cumulative amortization January 1, 2018 805,565.15 (**** Adjustment of Financial lease Depreciation and amortization for the financial period 524,380.15 (***** Adjustment of Financial lease decrease in Machinery and equipment 433,595.72 (****** Adjustment of Financial lease Cumulative amortization of decrease in Machinery and equipment January 1, 2018 -253,049.35 (******* Adjustment of Financial lease net expenditure of Machinery and equipment January 1, 2019 -1,732,137.83

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INVESTMENTS 2019, GROUP

INVESTMENTS IN GROUP

COMPANIES

INVESTMENTS IN ASSOCIATED

COMPANIES

OTHER SHARES AND

PARTICIPATIONS TOTAL

Cost January 1, 2019 0 657 3 660

Investments in associated companies, increase 0 444 0 444

Cost December 31, 2019 0 1,101 1 1,103

Cumulative amortization and impairment January 1, 2019 0 0 0 0

Cumulative amortization and impairment December 31, 2019 0 0 0 0

Carrying amount December 31, 2019 0 1,101 1 1,103

Carrying amount December 31, 2018 0 657 3 660

12. Investments

INVESTMENTS 2019, PARENT COMPANY

INVESTMENTS IN GROUP

COMPANIES

INVESTMENTS IN ASSOCIATED

COMPANIES

OTHER SHARES AND

PARTICIPATIONS TOTAL

Cost January 1, 2019 121,479 0 0 121,479

Increase 4,000 0 0 4,000

Cost December 31, 2019 125,479 0 0 125,479

Cumulative amortization and impairment January 1, 2019 0 0 0 0

Cumulative amortization and impairment December 31, 2019 0 0 0 0

Carrying amount December 31, 2019 125,479 0 0 125,479

Carrying amount December 31, 2018 121,479 0 0 121,479

GROUP COMPANIES DOMICILETHE GROUP’S

HOLDING %

THE PARENT COMPANY’S HOLDING %

Empower Oyj Helsinki 100 100

Empower AS Tallinn 100 0

Empower Invest Oy Helsinki 100 0

Empower Fidelitas UAB Vilnius 75 0

Empower IN Oy Helsinki 100 0

Empower IM Oy Helsinki 100 0

Empower PN Oy Helsinki 100 0

Empower TN Oy Helsinki 100 0

Empower 4Wind OU Tallinn 60 0

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13. Inventories

14. Non-current receivables

15. Current receivables

1,000 EURGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

Raw materials and consumables 1,528 1,609 0 0

Work in progress 374 5,121 0 0

Advance payments for inventories 20 8 0 0

1,923 6,739 0 0

1,000 EURGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

Loan receivables, external 0 800 0 800

Other receivables, external 297 233 0 0

297 1,033 0 800

1,000 EURGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

Trade receivables 10,451 11,286 23,953 98,340

Loan receivables 517 386 5,753 1,951

Other receivables 625 1,087 146 136

Prepaid expenses and accrued income 7,648 10,477 776 882

Current receivables from affiliated companies 1,789 1,765 0 0

Current receivables 21,030 25,001 30,628 101,310

1,000 EURGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

Interest receivables 73 -9 45 0

Tax assets (income tax) 0 20 0 0

Current percentage of completion receivables (from others)

4,136 5,449 0 0

Accrued employee expenses, current receivables 45 38 0 0

Other prepaid expenses and accrued income 2,623 4,146 697 716

Prepayments 189 117 1 5

Prepaid expenses and accrued income 581 716 33 161

7,648 10,477 776 882

Material items of prepaid expenses and accrued income

1,000 EURGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

PERCENTAGE OF COMPLETION LIABILITIES

Advances received, percentage of completion -46,208 -45,723 0 0

Percentage of completion liabilities (-) -46,208 -45,723 0 0

PERCENTAGE OF COMPLETION RECEIVABLES

Current percentage of completion receivables 45,050 43,638 0 0

Percentage of completion receivables 45,050 43,638 0 0

Percentage of completion receivables (net) -1,158 -2,085 0 0

Itemization of combinations of items in assets and liabilities, percentage of completion receivables and liabilities

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CHANGES IN EQUITY, 1,000 EURGROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Share capital January 1 80 29,092 80 29,092

Reclassifications 0 -29,012 0 -29,012

Share capital December 31 80 80 80 80

Invested unrestricted equity reserve January 1 91,462 62,450 91,462 62,450

Reclassifications 0 29,012 0 29,012

Invested unrestricted equity reserve December 31 91,462 91,462 91,462 91,462

Translation differences, at start of period January 1 279 -60 0 0

Translation difference (+/-) -195 338 0 0

Translation differences December 31 83 279 0 0

Retained earnings January 1 -96,292 -80,513 (*** -51,414 -44,865 (***

Changes in the basis of preparation of the financial statements, IAS 8

131 -793 0 134

Other direct entries in earnings 204 -5 0 0

Retained earnings December 31 -95,957 -81,311 -51,414 -44,732

Profit/loss for the financial period -32,373 -14,981 (**** -7,478 -6,682 (****

Equity December 31 -36,705 -4,472 32,650 40,128

Restricted equity 80 80 80 80

Unrestricted equity -36,785 -4,552 32,570 40,048

Minority interest, equity 625 605 0 0

1,000 EURGROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Warranty provision 1,085 1,208 0 0

Provision for onerous order/contract

3,779 2,489 0 0

Unemployment Insurance Fund liability for additional days

55 0 0

Provisions for disputes in progress 322 444 0 122

Mandatory provisions relating to employee benefits expenses

280 153 84 0

Other provisions 204 176 0 0

5,670 4,525 84 122

16. Equity 17. Mandatory provisions

2019 2018

Calculation of the parent company’s distributable equity

Retained earnings -51,414 -44,732

Profit/loss for the financial period -7,478 -6,682

Unrestricted equity reserve 91,462 91,462

-capitalized development expenditure -712 0

Total 31,859 40,048

GROUP The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

(*** Adjustment of Financial lease Retained earnings -81,746.08 (**** Adjustment of Financial lease 2018 Profit/loss for the financial period -217,414.04

PARENT COMPANY The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued. (*** Adjustment of Financial lease Retained earnings 806.38 (**** Adjustment of Financial lease 2018 Profit/loss for the financial period -23,295.45

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2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

INTEREST-FREE

Non-current liabilities to others, interest-free 0 0 0 0

Non-current interest liabilities, interest-free 0 0 0 0

Liabilities to Group companies 0 0 13,465 13,465

Non-current interest-free liabilities 0 0 13,465 13,465

Deferred tax liabilities 370 227 0 0

Non-current liabilities, total 5,928 4,197 18,819 16,830

Material items of accrued liabilities 0 0 0 0.00

1,000 EURGROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Deferred tax assets 0 0 0 0

Deferred tax liabilities 370 227 0 0

19. Deferred tax assets and liabilities

1,000 EURGROUP

2019GROUP

2018PARENT COMPANY

2019PARENT COMPANY

2018

Loans from financial institutions 5,553 3,695 (***** 5,354 3,365 (*****

Trade payables 5 18 0 0

Other liabilities 0 257 0 0

Deferred tax liabilities 370 227 0 0

Liabilities to Group companies 0 0 13,465 13,465

5,928 4,197 18,819 16,830

INTEREST-BEARING

Non-current loans from financial institutions, interest-bearing

0 0 0 0

Non-current financial lease liability, interest-bearing

0 0 (***** 0 0 (*****

Non-current trade payables, interest-bearing 5 18 0 0

Non-current instalment liabilities, interest-bearing

5,112 3,275 4,914 2,945

Non-current liability to State Treasury, TEKES 441 420 441 420

Non-current other liabilities to others, interest-bearing

0 257 0 0

Non-current interest-bearing liabilities 5,558 3,970 5,354 3,365

18. Non-current liabilities

GROUP

The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

(***** Adjustment of Financial lease non-current liabilities -886,948.65

PARENT COMPANY

The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

(***** Adjustment of Financial lease non-current liabilities -110,135.66

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1,000 EURGROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

MATERIAL ITEMS OF ACCRUED LIABILITIES

Current interest liabilities, interest-free 8,269 4,695 6,832 3,308

Current tax liabilities, income tax, interest-free 129 28 0 0

Accrued employee expenses, interest-free 4,882 4,005 250 245

Other current accrued liabilities from income, interest-free 0 16 0 0

Other current accrued liabilities from expenses, interest-free 23 1,443 0 0

Accrued liabilities of projects 1,396 3,072 0 0

Accrued liabilities of projects, POC 784 1,969 0 0

Holiday pay provision 8,219 8,631 488 532

Accruals and deferred income 9,274 8,357 858 758

Bonus provision 444 632 0 0

Accrued flexi leaves 740 0 26 0

Clearing account 0 -2 0 -2

Matching entries of internal balance sheet balances -59 -145 0 0

34,102 32,701 8,454 4,840

GROUP

The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

(****** Adjustment of Financial lease current payables -560,651.29

20. Current liabilities

1,000 EURGROUP

2019GROUP

2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Loans from financial institutions 85,044 80,320 (****** 54,464 54,420

(******

Advances received, others 1,993 5,260 0 0

Trade payables 27,640 26,347 17,926 16,551

Liabilities to Group companies 0 0 14,031 81,201

Other liabilities 27,955 23,796 17,771 16,832

Accruals and deferred income 34,102 32,701 8,454 4,840

Current liabilities 176,734 168,424 112,645 173,844

INTEREST-BEARING

Current loans from financial institutions, interest-bearing 64,099 59,472 33,662 33,681

Current checking account with overdraft facility, interest-bearing 19,017 19,055 19,017 19,055

Current instalment liabilities, interest-bearing 1,927 1,788 1,785 1,684

Current financial lease liability, interest-bearing 0 5 (****** 0 0 (******

Current liabilities to others, interest-bearing 5,015 5,162 4,173 3,835

internal (internal bank) liabilities, interest-bearing 0 0 12,951 81,030

Other current internal liabilities, interest-bearing 0 0 1,031 120

90,059 85,482 72,618 139,404

INTEREST-FREE

Current advances received, interest-free 1,993 5,260 0 0

Current trade payables, interest-free 27,660 26,302 17,926 16,551

Current trade payables accrued, interest-free -20 45 0 0

Current liabilities to others, interest-free 3,642 959 999 702

Dividend liabilities, interest-free 0 -60 0 0

Current personnel liabilities, interest-free 3,521 3,191 121 144

Current VAT liabilities, interest-free 15,777 14,507 12,478 12,151

Group’s uncleared VAT liabilities 0 36 0 0

Current trade payables to Group companies, interest-free 0 0 46 44

Current interest liabilities to Group companies, interest-free 0 0 3 7

Accruals and deferred income 34,102 32,701 8,454 4,840

86,675 82,941 40,027 34,440

Current liabilities, total 176,734 168,424 112,645 173,844

PARENT COMPANY

The comparison figures for 2018 have been adjusted to match the presentation method for the financial period 2019, when the reporting of financial leases in accordance with the international financial reporting standards was discontinued.

(****** Adjustment of Financial lease current payables -114,720.09

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1,000 € GROUP2019

GROUP2018

PARENT COMPANY

2019

PARENT COMPANY

2018

LIABILITIES SECURED BY PLEDGED MORTGAGES AND SHARES

Loans from financial institutions 75,976 76,051 52,679 52,736

Pledged real estate mortgages 7,200 7,200

Pledged mortgages on company assets 573,800 573,800 155,000 155,000

Carrying amount of pledged securities 125,479 121,479 125,479 121,479

Liabilities secured by pledged mortgages and shares total 706,479 702,479 280,479 276,479

The trademark of Empower Ltd has been pledged for loans from financial institutions

COMMITMENTS ON BEHALF OF SUBSIDIARIES AND OTHER GROUP COMPANIES

Carrying amount of pledged securities 125,479 121,479 125,479 121,479

Guarantees 7,397 7,120 7,256 6,978

Real estate mortgages 7,200 7,200

Mortgages on company assets 698,800 698,800 155,000 155,000

Total 838,877 834,599 287,735 283,457

OTHER OWN COMMITMENTS

Instalment liabilities with ownership retention provision as security

Instalment liabilities, total 7,039 5,063 6,698 4,628

Movable property subject to instalment liability at carrying amount 7,798 5,894 7,350 5,376

LEASE LIABILITIES

Lease liabilities maturing within one year 345 711 235 668

Lease liabilities maturing within 1–5 years 46 930 27 914

Total 391 1,641 263 1,582

OTHER COMMITMENTS

Contract/delivery guarantees 261 1,206

Bank guarantees 12,892 10,703 618 218

Other commitments 12,954 12,077 12,954 12,077

Other commitments total 26,106 23,986 13,572 12,295

Other commitments total 33,536 30,690 20,533 18,505

1,000 € GROUP2019

GROUP2018

PARENT COMPANY

2019

PARENT COMPANY

2018

Lease liability for the next finan-cial period according to indexed rent (incl. VAT)

73 231 73 231

Lease liability for subsequent financial periods according to indexed rent (incl. VAT)

318 245 318 245

Commitment total 391 476 391 476

THE GROUP ALSO HAS LEASES ON ITS BUSINESS PREMISES VALID UNTIL FURTHER NOTICE,

with the period of notice varying between 1–6 months. 912 557 912 557

Commitment total 912 557 912 557

21. Commitments and contingent liabilities

Non-current lease liabilities

The group has fixed-term leases on its business premises, expiring on February 28, 2025 at the latest

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Helsinki, 28 May 2020

Rainer Häggblom Chairman of the Board

Heikki Hiltunen Member of the Board

The signatures to the board of directors` report and the financial statements

The auditor`s note

Our auditor`s report has been issued today.

Helsinki, 3 June 2020

PricewaterhouseCoopers Oy Authorised Public Accountants

Martin Grandell, Authorised Public Accountant

Mikko Vaahersalo CEO

Mari Leiste Member of the Board

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Realizing smart society essentials

Annual report 2019