Annual Report 2019 .FI/KAUPPAKASSI

Alepa.fi/kauppakassi ANNUAL REPORT 2019

CONTENTS

Group key figures 4

CEO's review 5

Report by the Board of Directors 6

Financial statements 31 December 2019 12

Notes to the financial statements 16

Disposal of the surplus 33

Auditor’s report 34

Statement of the Supervisory Board 36

Governance 37

Governing bodies 38

3 KEY FIGURES FOR THE COOPERATIVE ELANTO GROUP 2015–2019 2015 2016 2017 2018 2019

Net sales, EUR million 1,871.4 1,953.8 1,980.2 2,065.3 2125.1

Operating profit - EUR million 90.3 56.2 43.7 15.8 5.8 -% of net sales 4.8 2.9 2.2 0.8 0.3

Pre-tax profit - EUR million 84.9 58.2 50.5 12.4 47.0 -% of net sales 4.5 3.0 2.6 0.6 2.2

Return on shareholders’ equity, % 12.2 7.9 6.3 1.3 5.2

Return on investment, % 15.9 9.9 8.2 4.4 6.9

Equity ratio, % 78.9 76.0 74.6 75.9 77.1

Gross investments in fixed assets - EUR million 34.7 35.5 68.0 47.8 52.7 -% of net sales 1.9 1.8 3.4 2.3 2.5

Average number of personnel 5,805 5,554 5,537 5,912 5952 during the financial year

Wages, salaries and remuneration, EUR million 155.5 157.8 161.0 169.6 175.4

CALCULATION OF KEY FIGURES

profit after financial items – taxes Return on shareholders’ equity, % = × 100 equity + minority interest, average

pre-tax profit + interest and other financial costs Return on I,nvestment, % = balance sheet total – non-interest-bearing liabilities – mandatory provisions, × 100 average

equity + minority interest Equity ratio, % = × 100 balance sheet total – advance payments

Gross investments in fixed assets = amount paid for non-current assets

The average number of personnel during the financial period is calculated as an average.

4 CEO’S REVIEW

When compiling this annual report, the situation in the whole world changed dramati- cally due to the coronavirus. ‏The mission of the Cooperative Society is to provide services, benefits and well-being for its customer owners, and this will be done during the crisis even more strongly and responsibly than before. HOK-Elanto implements its mission at 340 supermarkets, department stores, restaurants, car wash and petrol stations, and at funeral and legal services, with more than 6,000 professionals. The result of the 2019 HR survey was excellent, clearly above the average for Finnish com- panies. The new incentive scheme covering the entire personnel was introduced during the year. In 2019, approximately six million euros were spent on personnel benefits, recreation and leisure activities as well as performance bonuses and other rewards. We grow with our area of operation. The annual population growth in our area is ap- proximately 20,000. New residential areas are created and services are needed. Last year, we opened 17 new or renewed outlets and developed our services with EUR 53 million. The larg- est single investment was the in Pasila, where a Prisma market, a pick-up point for the online store, a co-op member service point, , Emotion and the Fredde’s, Urban Rabbit and Ratamo restaurants were opened. Climate issues are a popular topic in public debate. ’s goal is to be carbon negative in 2025, and as the largest regional cooperative, HOK-Elanto is making a strong contribution to this. Energy efficiency, renewable forms of energy, refrigerants in refrigeration equipment, various measures to reduce wastage, the charger network for electric cars, the cooperation in city bikes, recycling of packaging materials are examples of work that we have already done for several years to reduce our environmental loads. With its 630,000 co-op members, HOK-Elanto has the largest owner base in . In spring 2020, the co-op members selected the Council of Representatives, a 60-member body using the highest decision-making power of the cooperative. In addition to its statutory du- ties, the Council of Representatives discusses and highlights topical themes and initiatives for management, which is extremely welcome: as its name suggests, the Council of Representa- tives represents the members of the cooperative, in other words its customer owners. The current year 2020 will be unpredictable due to the coronavirus. When, for example, demand in the restaurants petered out in mid-March, we decided to close all of our restau- rants for the time being and to offer work to the restaurant staff in the retail chains, to which the demand was transferred in these exceptional circumstances. The entire HOK-Elanto per- sonnel has shown an excellent ability to ensure the supply of food to households in our area. Online grocery trade is growing rapidly and we are introducing an extensive home delivery service for Alepa’s an Prisma’s online stores. The S-market chain will be completely re- newed over the next two years. The number of employees will increase by about 200. As our area of operations develops, we will invest nearly EUR 80 million in the renewal and expan- sion of the network and in new services. HOK-Elanto’s personnel and shop stewards have done an excellent job for the benefit of customers – I extend my warmest thanks for it. Thanks are also due to the entire S Group for good cooperation.

Helsinki, March 2020

Veli-Matti Liimatainen CEO

5 REPORT BY THE BOARD OF DIRECTORS OF HELSINKI COOPERATIVE SOCIETY ELANTO 2019

Helsinki Cooperative Society Elanto is S Group's largest regional DEVELOPMENT IN THE HELSINKI REGION cooperative. With its 630,000 co-op members, it has the largest In the Helsinki metropolitan area, population growth continued owner base in Finland. The main lines of business of the coop- to be rapid. According to preliminary data, the growth was erative are supermarket trade, department stores, restaurant 19,203 (16,419), or 1.4 business, fuel and car wash sales. HOK-Elanto operates in the per cent (1.2%). At the turn of the year, there were Helsinki, , , Nurmijärvi, , , Järvenpää, 1.404.241 people (1,388,023), or 25.5 per cent (25.5%) of Hyvinkää and Mäntsälä regions. the entire population of Finland, living in our operating area. Owned by its customers, HOK-Elanto is responsible for In 2017–2019, 62 new grocery trade outlets have been providing benefits and services to its owners, Finnish households. opened in the Helsinki region. of these, 23 are HOK-Elanto When the business operations are profitable and the balance outlets. sheet is strong, we can continue to develop our services, improve our offerings, expand our network and fulfil our customers’ DEVELOPMENT IN THE S GROUP IN 2019 wishes. Households using the diverse services of the cooperative S Group comprises the cooperatives and SOK with its subsidiaries. and its partners benefited more than EUR 1,000 per year. In 2019, S Group’s retail sales excluding VAT were EUR 11,713 The cooperative developed services for EUR 53 million and million, an increase of 1.7 per cent from the previous year. opened 17 new or renewed outlets. Our net sales for 2019 were A total of 71,233 new members joined the cooperatives EUR 2,125.1 million, representing an increase of 2.9% from the participating in the Bonus system in 2019. The total previous year. number of co-op members was 2,425,167 at the end of 2019. HOK-Elanto is one of the largest private employees in its Co-op members were paid a total of EUR 341 million in Bonus region. In 2019, it had more than 6,000 employees. It also has rewards. a major indirect employment impact in the area. S Group’s investments amounted to EUR 496 million (EUR 598 The environmental load generated by our own operations million). S Group’s combined non-consolidated result before in HOK-Elanto has been systematically reduced. Action against appropriations and taxes showed a profit of EUR 367 million (EUR climate change and for the promotion of circular economy will 346 million). be taken in all business areas. When starting its 115th year of At the end of the year, S Group had 37,764 employees operation, HOK-Elanto is more strongly than ever on its path (37,931). towards a more carbon neutral society. In 2025, S Group’s objec- tive is to be carbon negative. EVENTS AT HOK-ELANTO IN 2019 The cooperative developed services for EUR 53 million and OPERATING ENVIRONMENT opened 17 new or renewed outlets. According to estimates, economic growth in Finland will remain In October 2019, a Prisma market, a pick-up point for the close to or below 1% during the next few years. In 2019, online store, a co-op member service point, Alepa, Emotion and economic growth is expected to be 1.5%, driven by domestic the Fredde’s, Urban Rabbit and Ratamo restaurants were consumption. Growth of private consumption will decelerate, opened in the Mall of Tripla in Pasila. The Prisma at Tripla was as savings will return to a normal level. Unemployment has the first new Prisma store of HOK-Elanto for 10 years. decreased slowly, and this trend is expected to continue. The In addition to these, six Alepa stores, Memphis, Amarillo inflation rate is expected to be 1.4% in 2020 and to increase and Sing & Pore restaurants, as well as Emotion in shopping slightly in the following year. Interest rates will also be unusu- centre were opened. The ABC chain opened an extended ally low in 2020 which supports the economy. petrol station and fast and environmentally friendly wash line The trade sector is expected to grow slowly on average, at Kaari shopping centre and a car wash line to ABC Hyvinkää. while retail will develop more briskly than the rest of the trade In addition, several outlets were refurbished and renovated sector, and a slight recovery is expected. Net sales of restaurant in all sectors, and the online food trade was developed. services have increased steadily in Finland. HOK-Elanto provided its owners with services at a total of According to PTY, the grocery trade grew by 2.6 per cent 340 supermarkets, department stores, restaurants, car wash and (4.0%) and the net sales of consumer goods trade grew by 2.7 fuel stations, as well as the cash register for funeral and legal per cent (-0.7%). Consumer prices rose by 0.9 per cent from the services. previous year (+1.2%). Food prices rose by 1.8 per cent from the In 2019, a VAT audit on the parent company was in progress, previous year (+1.1%). In 2019, the sales of restaurants licensed covering the years 2016 and 2017. to sell alcoholic beverages increased by 3.6 per cent (3.4%).

6 NET SALES AND RESULT The operating result of market trade was EUR 9.6 million (20.6 Net sales of the HOK-Elanto Group were EUR 2,125.1 million, million). The decrease was due to the strong network develop- which accounted for an increase of 2.9 per cent year-on-year ment and the renewal of outlets. (EUR 2,065 million in the previous year). Department stores continued to grow strongly. The net sales HOK-Elanto’s surplus, or profit before taxes, was EUR 47.0 of the two Sokos department stores and 12 Emotion cosmetics million (EUR 12.4 million). stores were EUR 75.0 million (EUR 72.6 million), an increase of The result includes other income, mainly sales gains on fixed 3.4 per cent (2.7%). The new Emotion stores were opened in assets, EUR 1,4 million (EUR 9,5 million), impairments and the Mall of Tripla and in the Ainoa mall in Tapiola. The operating increases in mandatory bookings EUR 23,6 million (EUR 23,6 result of HOK-Elanto’s department store business was EUR 3.7 million). The majority of impairments concern land. million (EUR 4.0 million). The growth in department store trade The operating result was EUR 5.8 million (EUR 15.8 million), exceeded the market development. or 0.3 per cent of the net sales (0.8%). The return on investment Net sales of the restaurant business totalled EUR 121.0 was 6.9 per cent (4.4%) and return on equity was 5.2 per cent million (EUR 119.0 million), an increase of 1.7 per cent (-1.6%). (1.3%). The operating result of the restaurants increased to EUR 5.1 The Group’s operating result, that is, the result without the million (EUR 4.7 million). Net sales increased due to new open- one-off items mentioned above, was EUR 69.2 million (EUR 21.3 ings, for example: Fredde’s, Urban Rabbit and Ratamo in the million), or 3.3 per cent (1.2%) of net sales. The change was Mall of Tripla, as well as Memphis in Hakaniemi Memphis and mainly due to the change in the value of the portfolio of nearly Amarillo and Sing & Pore in the centre of Helsinki. The improve- EUR 350 million. The operating result of the business operations ment in profitability was attributable to the closing of some decreased due to the powerful development of the network loss-making restaurants. At the end of the year, HOK-Elanto and the renewal of the outlets. had 85 restaurants. Net sales from the fuel and car wash trade were EUR 106.9 HOK-Elanto Group’s net sales and operating result by million (EUR 104.2 million), an increase of 2.5 per cent (-7.0%). industry In the Area, the chain includes a total of 33 fuel and car wash outlets. Operating Net sales profit The Kaari petrol pump and car wash facilities, as well as the 2019 EUR Change 2019 EUR Change car wash facility in Hyvinkää mentioned above were new outlets. million % million M€ Supermarkets 1,794.3 2.9 9.6 -11.0 In addition, ABC Petikko was renovated. The operating result Department stores 75.0 3.4 3.7 -0.3 was EUR 1.3 million (EUR -0.1 million). The reason for the growth Restaurants 121.0 1.7 5.1 0.5 in net sales was the successful new openings and growth in the Fuel and car wash sales 106.9 2.5 1.3 1.4 fuel trade. Other operations and HOK-Elanto’s other business operations include real estate administration 28.0 6.9 -13.9 -0.6 operations as well as funeral and legal services. The net sales HOK-Elanto Group total 2,125.1 2.9 5.8 -10.0 of the rest of business were EUR 28.0 million (EUR 26.1 million). HOK-Elanto's funeral and legal services have 12 offices. The supermarket trade continued to be a strong business HOK-Elanto’s market share in the grocery trade in the supporter, with its net sales of EUR 1.8 billion (1.74 billion) and operating area was xx.x per cent (43.3). its growth of 2.9 per cent. At the end of the year, HOK-Elanto had 117 Alepa stores, 59 S-markets, 13 Prisma stores, four Food GROUP STRUCTURE Market Herkku stores and one Kodin Terra store. The HOK-Elanto Group consists of Helsingin Osuuskauppa Five S-markets, five Prisma stores and 19 Alepa stores are Elanto, HOK-Elanto Liiketoiminta Oy (market trade, department open 24 hours a day, every day of the year. In addition, all Prisma store trade, fuel and car wash trade and restaurant business), stores were open 24/7 in the week before Christmas. HOK-Elanto Service Oy and 29 real estate companies. One real The growth in net sales was due to, among other things, the estate subsidiary company was established and one was bought aforementioned renovations: In addition to the Prisma, the during the year. online store pick-up point and Alepa in the Mall of Tripla, the The Group has 20 associated companies. The most significant network grew by six Alepa stores. associated companies are Kiinteistö Oy Vantaanportin Food Market Herkku in Tapiola and Itäkeskus experienced Liikekeskus, which owns the Kauppakeskus Jumbo property in a transformation during the spring. Four S-market stores were Vantaa. HOK-Elanto owns 27.8 per cent of this company. fully modernised. The Prisma in Järvenpää was renovated.

7 INVESTMENTS AND SALES OF FIXED ASSETS the membership fees paid by the co-op members. The amount In 2019, HOK-Elanto invested EUR 52.7 million (EUR 47.8 million) of non-monetary benefits has also increased. The households in the development of its outlet network. Most of the invest- using the services of the cooperative and its partners in a diverse ments were directed at renovating and establishing outlets, the manner had on average a financial benefit of more than EUR largest ones being investments in the outlets established in Tripla. 1,000 per year. EUR 2.1 million (EUR 2.6 million) of fixed assets were divested. Last year, 23,000 new co-op members (22,708) joined HOK- Elanto. At the end of the year, there were 637,656 co-op FINANCING AND INVESTMENTS members (627,249), or 78.9% (78.9%) of all households in the Net financial income was EUR 41.2 million, whereas the net nine municipalities constituting the area of operation. financial expense was EUR 3.4 million in the previous year. Most Of the Group’s sales, 62.8 per cent (63.7%) were for the co-op of the net financial income has accumulated from the invest- members. HOK-Elanto’s co-op members received Bonuses for a ment portfolio, and the change is due to the change in the total of EUR 64.6 million (EUR 61.3 million) and payment method value of the investment portfolio. benefits of EUR 2.0 million (EUR 1.8 million). The amount of The Group’s liquidity is good. At the end of the year, liquid Bonuses paid to co-op members grew by five per cent and the investments and cash assets amounted to EUR 406.4 million payment method benefits increased by nine per cent. (EUR 366.0 million in the previous year). The equity ratio was In addition to the Bonus and payment method benefit, the 77.1 per cent (75.9%). versatile S-mobiili application offers co-op members the possi- HOK-Elanto has a financing strategy and investment policy bility to monitor their purchasing behaviour, such as carbon approved by the Board of Directors. The aim of investment footprint, amount of vegetables, domestic origin of food, shop- operations is to have a long-term approach with a low risk. ping rhythm and the number of plastic bags. The application is Therefore, the goal is to maintain the invested capital and to continuously developed on the basis of feedback provided by increase capital and generate profits from it, without the invest- customers. In the operating area of HOK-Elanto, there are ment assets being exposed to a risk higher than that decided 325,580 S-mobiili users. The Omat ostot service is used by 76,055 by the Board of Directors. Investment operations must be customers, which means that nearly one in every four S-mobiili implemented in accordance with S Group's responsibility users are using the service. programme. The sector or operating methods of the investment The 14th service point for the co-op member service was subject must not conflict with the values or ethical and other opened in Mall of Tripla. The diverse co-op member services in operating principles of HOK-Elanto. From the beginning of 2016, Prisma stores and the Sokos department store in Helsinki are the financial instruments have been recognised at fair value, available in matters related to co-op membership and S-Bank. using an alternative method allowed by chapter 5, section 2a There are more than 80 employees working in co-op member of the Accounting Act. In 2019, the imputed return on invest- services in the field. ment activities was 11.8 per cent, whereas in the previous year it was -3.1 per cent. S-BANK S-Bank provides solutions for the management of daily finances, CO-OP MEMBERSHIP savings and the financing of purchases. The current account The purpose of HOK-Elanto is not to maximise the result for provided free of charge, the international payment card and the financial period, but to produce benefits and services to banking codes for online services are considerable benefits that co-op members, in other words to ordinary Finnish households co-op members obtain from their bank. Taking care of daily in the Helsinki region. The cooperative company exists for the finances is possible at HOK-Elanto’s 14 co-op member service customers. points. HOK-Elanto owns 7.5 per cent of S-Bank. HOK-Elanto's co-op members purchased Bonus-accumu- At the end of 2019, more than 522,000 HOK-Elanto lating products and services for EUR 2,026 million from HOK- customers (490,000) held a S-Etukortti Visa payment card. Elanto, S Group and S Group's partners. The monetary benefits S-Bank’s banking access codes are held by over 530,000 HOK- of HOK-Elanto’s co-op members increased by 7% when the Elanto customers (500,000). S-Bank is based on strong coopera- banking services, price benefits, payment method benefits and tive values, and in spring 2019, Finnish people considered S-Bank Bonus are taken into account. A Bonuses and payment method the most responsible bank in Finland for the 7th successive time benefits alone were paid to co-op members 1.2 times more than in the most extensive responsibility survey caried out in Europe.

8 SHARES AND COOPERATIVE CAPITAL The average duration of employment was 7 years 8 months Helsinki Cooperative Society Elanto has one share type. There (8 years). The average age of employees was 35 years (35 years). are no special terms and conditions attached to it. Women’s share of the personnel was 75 per cent (75%). Full-time The shares of the Cooperative are divided by type of share as employees accounted for 46 per cent of all personnel (46%). follows: The cooperative has personnel with an immigrant background 2019 2018 from 41 different countries. HOK-Elanto provided summer jobs Shares 637,656 627,249 to approximately 2,200 young persons (2,300). There were a Cooperative capital 59,117,012.59 59,117,012.59 total of 1,573 (1,482) summer trainees participating in the Tutustu työelämään ja tienaa (Experience working life and earn) The cooperative capital consists of the sum total of share scheme. payments recorded in the share capital paid by the members. The cooperatives ensure the well-being of employees by During the financial period, cooperative payments paid by developing their competence and by supporting their physical the resigned or resigned members have been immediately exercise activities. To complement the statutory occupational refunded in accordance with the rules of the cooperative. The healthcare, HOK-Elanto has provided its personnel with healthcare number of refunded shares was 12,593 (12,864), 2.0 per cent of services, additional benefits related to leisure time accident insur- all shares. The shares corresponding to the refunded share ance and Health Care Sickness Fund. In 2019, the total amount payments have been cancelled. The amount paid for the share spent on personnel services, recreational and leisure activities, as is equal to the membership's share payment accrued at the well as performance bonuses and other compensation was moment of the resignation, totalling EUR 100 for fully paid-up approximately EUR 6 million. Including personnel discounts, the shares. The total amount of refunded share payments was EUR benefits offered by HOK-Elanto to its personnel exceed EUR 1,000 1.2 million (EUR 1.2 million). per employee per year. The new incentive scheme for the entire personnel was implemented during the year. PERSONNEL A refreshing event was arranged for HOK-Elanto employees At the end of the year, the number of employees was 6,029 and their families on 30 May 2019 in Linnanmäki. More than (5,922). The new outlets in the Mall of Tripla increased the 7,000 persons participated in the event. number of permanent staff. Converted to full-time person years, the number of RISK MANAGEMENT employees was 5,416 (5,400). The amount was calculated as an The aim of the HOK-Elanto Group is to identify risk factors in average and divided by sector as follows: advance and to evaluate their probability and significance with regard to business goals. The Board of Directors of HKO-Elanto 2019 2018 has discussed and approved the company’s risk management Supermarkets 3,951 3,890 policy, which describes the goals of risk management and its Department stores 227 243 main implementation methods and responsibilities. Risk Restaurants 930 931 management work is a continuous activity, implemented Fuel and car wash sales 1 9 throughout the management process. Risks are assessed holis- Other business operations, chain management and administration 308 327 tically, taking into account strategic and operational risks. Total 5,416 5,400 HOK-Elanto's strategic risks are reviewed annually over the short (3 years) term and long (10 years) term. The most signifi- cant short-term risks of HOK-Elanto are related to the compet- Operations have been developed systematically in cooperation itiveness of grocery business and its further development. The with the personnel, and job satisfaction has been clearly higher development and continuous renewal of operations at the than the average for Finnish jobs for several years. The result S Group level is also important for HOK-Elanto. Investments in of the 2019 personnel survey was excellent. As recognition of the development of digital services will continue, and succeeding HOK-Elanto’s employees’ high level of commitment, the in them is very important. In the long term, the most significant company was granted the Suomen Innostavimmat Työpaikat risks from the point of HOK-Elanto are related to major change (Finland’s most inspiring workplaces) 2019 award. forces, such as technological development, polarisation and Sickness absences have been steadily decreasing over the changes in consumption patterns. Strategic risks are managed long term, and in 2019 they were at the same level as in 2018. through measures taken by HOK-Elanto and the S Group.

9 HOK-Elanto pays special attention to the safety of customers, for a shopping bag available for a small deposit as an alternative as well as to the occupational safety and well-being of personnel. for a purchased plastic bag. Each outlet has its own guidelines and plans based on identi- Wastage has been reduced by developing order operations, fying the risks in the working environment. The employees are improving the predictability of consumption and by functional regularly trained in safety-related instructions and in ensuring self-monitoring. Products that have been removed from the safety of customers. but are edible are sent to more than 80 food aid partners. 74 per cent of the waste was taken to re-use or recycling, and the ENVIRONMENTAL RESPONSIBILITY remaining 26 per cent was taken to the generation of heat and We take responsibility for people and the environment. The electricity. Product safety is part of responsibility, and the self- environmental load of HOK-Elanto’s own operations has been monitoring of food products is an important tool for that. Food reduced with long-term actions. The work against climate safety is monitored by municipal food supervisors. All HOK- change and the promotion of circular economy are carried out Elanto outlets were rated excellent or good in the inspections. in all business areas. HOK-Elanto is increasingly on its way towards a more carbon In HOK-Elanto, the efficiency of energy usage has improved neutral society. In 2025, S Group aims to be carbon negative. by 30% over the past decade. Increasing the use of renewable energy is one of our key climate objectives. This means that RESPONSIBLE COOPERATION more than 80% of our electricity was produced using renewable HOK-Elanto's partners offer co-op members services that the energy sources. Most of the electricity was produced with wind cooperative does not itself provide, such as health, insurance, power, and in addition, we have accelerated the deployment optician, pharmacy, cruise, media and cultural services. Some of solar power. The latest system was commissioned for the partners offer benefits, and some also Bonuses. There were no Malmi S-market in December 2019. significant changes in the network of partners during the year. An action programme regarding the environmental risks in Partners whose operations in 2019 were supported by HOK- fuel sales is in progress. Elanto include the Finnish Red Cross, Helsingin Juhlaviikot, the The greenhouse gas emissions of cold storage equipment Youth Service of Espoo, the Youth Centre of the City of Helsinki, in stores are monitored annually, and the transition to the use and Veikko and Lahja Hurstin Laupeudentyö ry. The S-market of natural refrigerant with the smallest climate impact, carbon chain of HOK-Elanto supports the Makukoulu Workshops dioxide, in refrigeration is underway. organised by the Science Centre Heureka by donating food Climate change is a popular topic, and the origin of food products required for programmes, among other things. and ethical issues are of increasing interest to consumers. Since Every year, HOK-Elanto uses approximately EUR 1.1 million May 2019, HOK-Elanto’s restaurants have indicated the origin in various social cooperation projects. of the meat they use for their customers. Our restaurants also Multiculturalism is part of HOK-Elanto’s daily life. For years, offer more and more organic and vegan products. HOK-Elanto’s HOK-Elanto has trained and hired immigrants and thereby S-Market chain remains the largest organic retail trader in promoted their integration into Finnish society and working Finland. We support sustainable urban development and have life. HOK-Elanto also facilitates the integration and increased maintained the network of electric car charging stations and tolerance of many special groups by employing e.g. people with have supported the city bikes of Helsinki, Espoo and Vantaa as learning difficulties and mental health rehabilitants. their main partner. In 2019, we carried out a responsibility assess- ment of our investment operations in order to identify the GOVERNANCE significance of our investment subjects in promoting sustainable The principal governing bodies of HOK-Elanto are the Council development. of Representatives, the Supervisory Board and the Board of Cardboard, clear plastic and today a significant part of the Directors. coloured plastic resulting from operations is sent for recycling. In 2019, the Supervisory Board was chaired by Jorma Berg- We have also supported our customers’ efforts to reduce the holm, M.Soc.Sc, with Member of Parliament Ben Zyskowicz as use of plastic in many ways. Products from the salad bar can be First Vice Chairman and Kari Uotila as Second Vice Chairman. purchased in the customer’s own container, and several alterna- The other members of the Supervisory Board were Arto Bryg- tives for traditional plastic bags have been piloted in online gare, B.Sc. (Econ. And Bus Admin.); Member of Parliament Timo store packaging. In the Kerava region, the customers can opt Harakka (until 10 June 2019); Kimmo Kiljunen, Dr.Soc.Sc.; Irina

10 Krohn, M.A (Theatre and Drama): Merja Kuusisto, Specialist OUTLOOK FOR THE FUTURE Nurse; Sirkka-Liisa Kähärä, Nurse; Marika Niemi, Lecturer in The global economy and the Finnish economy have passed the Business Studies: Heli Puura, LL.M.; and the new members were peak of the cycle. When the growth of exports slows down, Pastor Mika Ebeling; Member of Parliament Arja Juvonen; economic growth will rely on private consumption. The Director Lauri Kaira; Organic Farmer Samuli Laurikainen and expected slight improvement in employment, together with Member of Parliament Sari Sarkomaa. The staff representatives increases in income levels, supports the development of sales are Restaurant Manager Sirpa Mäkelä and Harry Vainio, Chief in the trade sector. Trust among consumers has remained Shop Steward. unchanged which helps to maintain private consumption at In 2020, Jorma Bergholm, M.Soc.Sc., continues as Chairman the present level. However, global tensions may turn the global of the Supervisory Board, Member of Parliament Ben Zyskowicz and Finnish economies into a downswing. as First Vice Chairman, and Member of Parliament Kari Uotila Cooperative activities and co-op membership are made as Second Vice Chairman. Continuing as Supervisory Board more concrete, and their importance is enhanced through members are Arto Bryggare, B.Sc. (Econ. and Bus. Admin.); genuine actions. A strong balance sheet and the success of the Pastor Mika Ebeling;Member of Parliament Arja Juvonen; current business enable continuous development. Director Lauri Kaira; Kimmo Kiljunen, D.Soc.Sc.; Neighbourhood stores will be augmented by five new Irina Krohn, M.A. (Theatre and Drama); Merja Kuusisto, Alepas, after which there will be 122 Alepa stores. The Specialist Nurse; Organic Frmer Samuli Laurikainen; Marika S-Market chain will be completely renewed over the next two Niemi, Lecturer in Business Studies: Heli Puura, LL.M.; and years; in 2020, 23 S-Markets will be renovated. Prisma will open Mamber of Parliament Sari Sarkomaa. As new members, the a Prisma market in the local service centre in Supervisory Board has Actor Sara Paavolainen and Special Expert in March 2020, and Koivuhaka in Vantaa will have a new Johanna Värmälä. The staff representatives are restaurant S-market, and Nihtisilta in Espoo will have a new car wash Manager Sirpa and Harry Vainio, Harry Vainio, Chief Shop facility. Steward. In 2020, the investments are expected to total EUR 77 In 2019, the Board of Directors comprised CEO Veli-Matti million. The number of employees is expected to grow to 6,200 Liimatainen, M.Sc. (Econ. & Bus. Admin.) (Chairman); Tuula by the end of the year. Entelä, LL.M., B.Sc. (Econ. & Bus. Admin.) (Vice Chairman); Every four years, 60 client-owners are elected in HOK- Professor Jaakko Aspara; Managing Director aru Keronen; Elanto’s election to the cooperative’s highest decision-making Managing Director Pekka Laaksonen, M.Sc. (Econ. and Bus. body, the Council of Representatives. This year, there are 1,237 Admin.); Communications Consultant Sallamaari Muhonen; and candidates from different walks of life. The voting period is Managing Director Markku Uitto. In 2020, the Board of Directors from 26 March to 6 April 2020. will continue with the same composition. The auditor for the financial period 2019 was audit firm PricewaterhouseCoopers Oy, with Janne Rajalahti APA as the principal auditor. PricewaterhouseCoopers Oy will continue as the auditor in 2020. The Management Team of HOK-Elanto Group comprises Veli-Matti Liimatainen, CEO; Kimmo Nikula, Chief Operating Officer (S Market, Alepa, Food Market Herkku, Sokos, Emotion and Funeral and Legal Services); Lassi Juntunen, Chief Operating Officer (Prisma, Kodin Terra, ABC, online stores); Henriikka Puolanne Chief Operating Officer (Restaurants); Juha Ilvonen, Chief Planning Officer; Antero Levänen, Chief Human Resources Officer; Laura Oja, Chief Financial Officer; Jyrki Karjalainen, Chief Real Estate Officer; and Tuomas Ahola, Chief Communica- tions and Marketing Officer.

11 INCOME STATEMENT 1 January–31 December 2019

Group (EUR 1,000) Cooperative Society (EUR 1,000) Note 2019 2018 2019 2018

Net sales 1 2,125,114 2,065,307 70,242 68,994 Other operating income 2 2,398 2,336 1,064 1,385

Materials and services Raw materials and consumables 3 1,546,861 1,503,424 5,570 5,493 External services 37,492 34,586 226 188 1,584,354 1,538,010 5,796 5,681

Personnel costs 4 Wages, salaries and bonuses 175,355 169,619 9,366 8,528 Indirect personnel costs 36,457 38,251 1,966 1,915 211,812 207,869 11,332 10,442

Depreciation and impairment 5 54,019 49,722 6,104 -1,273

Other operating costs Facility rents 99,058 91,046 22,432 18,104 Other costs 6 172,476 165,166 19,828 21,359 271,534 256,212 42,260 39,463

Operating profit 5,794 15,828 5,814 16,065

Share of assoc. co. profits (+/-) -191 -101 Financial income and costs (+/-) 9 41,387 -3,331 41,432 -2,722 Surplus before appropriations and taxes 46,990 12,397 47,246 13,343

Appropriations (+/-) 10 13,000 Income taxes (+/-) 11 -11,415 -3,563 -11,072 -1,517 Minority interests (+/-) 96 74

Surplus for the financial year 35,631 8,930 49,174 11,827

12 BALANCE SHEET 31.12.2019

Group (EUR 1,000) Cooperative Society (EUR 1,000) ASSETS Note 2019 2018 2019 2018

NON-CURRENT ASSETS Intangible assets 12 22,143 16,299 1,565 1,667 Tangible assets 12 238,665 253,403 76,766 76,573 Shares in associated companies 14 23,649 21,353 27,355 25,363 Other investments 14 108,930 105,117 265,756 263,337 393,387 396,173 371,442 366,940

CURRENT ASSETS Inventories 16 81,744 81,269 133 134 Long-term receivables 17 1,384 988 1,347 988 Deferred tax assets 18 4,186 4,497 Short-term receivables 19 35,934 42,076 17,810 22,358 Financial securities 21 348,357 272,659 348,357 272,659 Cash in hand and at banks 58,085 93,878 39,526 77,449 529,691 495,367 407,173 373,587

923,078 891,540 778,615 740,527

Group (EUR 1,000) Cooperative Society (EUR 1,000) EQUITY AND LIABILITIES Note 2019 2018 2019 2018

EQUITY Cooperative capital 22 59,117 59,117 59,117 59,117 Reserve fund 67,000 67,000 67,000 67,000 Cooperative contribution fund 6,532 5,784 6,532 5,784 Profit from previous financial years 541,920 533,865 493,240 482,313 Profit for the financial period 35,631 8,930 49,174 11,827 710,200 674,696 675,062 626,040

ACCUMULATED APPROPRIATIONS 23 MINORITY INTERESTS 1,419 1,460 STATUTORY PROVISIONS 24 11,276 8,609 3,223 103

LIABILITIES Long-term liabilities 25 879 1,422 50,785 24,336 Deferred tax liability 26 0 0 Short-term liabilities 27 199,304 205,353 49,544 90,048 200,183 206,775 100,329 114,384

923,078 891,540 778,615 740,527

13 CASH FLOW STATEMENT 1 January–31 December 2019

Group (EUR 1,000) Cooperative Society (EUR 1,000) 2019 2018 2019 2018

CASH FLOW FROM BUSINESS OPERATIONS Operating profit 5,794 15,828 5,814 16,065 Adjustments to operating profit (1) 83,362 42,031 37,429 -3,992 Change in working capital (2) -9,114 8,907 -22 -3,055 Cash flow from business operations before financial items and taxes 80,041 66,766 43,221 9,019 Increase in short-term investments -124,372 -194,163 -124,372 -194,163 Decrease in short-term investments 48,654 172,841 48,654 172,841 Interest paid and other financial costs -566 -6,976 -914 -1,140 Interest received and other financial income 6,966 8,829 7,425 8,907 Income taxes paid -3,239 -12,378 7 -11,262 Cash flow from business operations 7,484 34,919 -25,979 -15,799

CASH FLOW FROM INVESTMENTS Investments in tangible and intangible assets -44,732 -32,442 -5,438 -2,882 Acquisition of subsidiaries less cash assets at time of acquisition -2,759 -8,614 Investments in other interests -5,227 -4,514 -7,136 -14,716 Loans granted -2,210 -7,500 -16,229 Capital gains on tangible and intangible assets 1,913 2,996 31 584 Sale of subsidiaries less cash assets at time of sale 1,171 Capital gains from other investments 785 -345 1,324 2,367 Repayments of loan receivables 8,840 9,485 22,684 Dividends received from investments 5,457 3,282 5,456 3,282 Cash flow from investments -44,565 -31,837 -3,778 -4,910

CASH FLOW FROM FINANCING Repayments of long-term loans -33 -63 26,700 -6,600 Increase (+) / decrease (-) in short-term loans -38 638 2,542 Increase (-) / decrease (+) in long-term receivables 8 652 -35,626 Change in cooperative capital 796 653 796 704 Interest paid on cooperative capital 554 -71 -36 -64 Group contributions 29,570 Cash flow from financing 1,288 1,809 -8,166 26,153

Change in cash assets, increase (+) / decrease (-) -35,793 4,892 -37,923 5,444

Cash assets, opening balance 93,878 88,986 77,449 72,005 Cash assets, closing balance 58,085 93,878 39,526 77,449

Adjustments to operating profit (1) Capital gains (-) and losses (+) from non-current assets -1,040 10,424 -925 -356 Depreciation and impairment 54,019 49,722 6,104 -1,273 Other income and costs not involving payments 30,383 -18,116 32,250 -2,363 83,362 42,031 37,429 -3,992 Change in working capital (2) Change in short-term receivables -2,385 13,484 -728 -763 Change in inventories -476 -2,194 1 3 Change in short-term non-interest-bearing liabilities -6,254 -2,383 705 -2,294 -9,114 8,907 -22 -3,055

14 Net sales | EUR million Operating result | EUR million Gross investments | EUR million

2500 50 60 47 50 53 2000 2125 40 2065 48 40 1500 30 30 1000 20 20 500 10 12 10

0 0 0 2018 2019 2018 2019 2018 2019

Co -op member households | No. of Net sales by chain in 2019 | %

700,000 Alepa 18% 600,000 637,656 627,249 Food Market Herkku 3% 500,000 400,000 Kodin Terra 1% 300,000 Department stores 4% 200,000 100,000 Fuel and car wash sales 5% 0 2018 2019 Restaurant trade 6%

Other business S-Market 30% operations 1%

Prisma 33%

HOK-Elanto Group’s balance sheet assets | EUR million HOK-Elanto Group’s balance sheet liabilities | EUR million

1000 1000

923 892 923 800 892 800

600 600

400 400

200 200

0 0 31.12.2018 31.12.2019 31.12.2018 31.12.2019

Financial assets Short-term liabilities Receivables Long -term liabilities Inventories Minority interests and provisions Non-current assets Equity

15 NOTES ON THE PREPARATION OF FINANCIAL STATEMENTS

Helsinki Cooperative Society Elanto (HOK-Elanto) is responsible TANGIBLE ASSETS years for the Group’s financing, accounting, real estate, marketing, Buildings 25 personnel and member administration. HOK-Elanto regularly Air raid shelters 25 sells administrative services and leases business premises to its Tanks, shelters and other structures 5-10 subsidiary companies as well as, to some extent, outside the Group.. The sales income from these administrative services and Machinery and equipment lease or rental revenues are included in HOK-Elanto’s net sales. Restaurant equipment 5 Grocery store and specialised equipment 5 NON-CURRENT ASSETS ICT equipment and office furniture 5 Intangible and intangible assets are recognised on the balance Transport equipment 5 sheet at acquisition cost less depreciation according to plan. Car wash equipment and fuel distribution meters 6 The difference between planned depreciation and recorded Building services; machinery and equipment 5 depreciation is presented in the income statements of Group Stores: cash register systems 5 companies as appropriations, and the accumulated depreciation Digital signage 3 difference is entered in their balance sheets as a single item under accumulated appropriations. The permanent impair- Paving 10 ments of the undepreciated acquisition costs of non-current Other tangible assets 10 assets are entered as impairment costs. The balance sheet values of non-current assets do not include revaluations. PROPERTY RENTS The depreciation according to plans is based on the original Costs incurred from leasing property are entered under leasing acquisition cost of the intangible and tangible assets and their of business premises. The lease liabilities arising from the asso- estimated economic life. Depreciation has been calculated from ciated long-term lease agreements are presented in the Notes the beginning of the month following the deployment month to financial statements. The largest leasehold properties are of each item. the Kannelmäki and Tripla facilities, the Prisma stores in Itäkeskus, Viikki and , Sokos Helsinki and Food Market The depreciation and amortisation periods according to plan Herkku in Helsinki. are as follows: INTANGIBLE ASSETS years INVENTORIES ICT programs and licences 3-5 Inventories are recognised on the balance sheet at acquisition Goodwill, Group goodwill 5 cost or at a lower replacement cost or probable selling price. Modernisation costs of premises 5 Franchise joining fees 5 FINANCIAL ASSETS AND LIABILITIES Road arrangement costs 10 From the beginning of 2016, the financial instruments have Paving of leased areas 10 been recognised at fair value, using an alternative method Other long-term costs 5 allowed by chapter 5, section 2a of the Accounting Act. The fair value measurement applies to financial assets in the port- folio. Other receivables and other financial liabilities are meas- ured at amortized cost. The portfolio includes shares, fund units and bonds, which are mainly included in financial securities presented under current assets. Transaction costs are not included in the acquisi- tion cost. The portfolio is measured at fair value using the price quoted on the active markets on the balance sheet date. Unquoted equity investments are measured at acquisition cost because measuring them at fair value using valuation methods has not been possible. The change in the fair value of the port- folio was recognised in 2017 in the fair value reserve under

16 shareholders’ equity. From the financial period 2018, the IFRS ACCOUNTING POLICIES APPLIED TO THE 9, Financial Instruments, has been applied, whereby financial CONSOLIDATED FINANCIAL STATEMENTS items measured at fair values are recognised through profit or Scope of the consolidated financial statements loss. and changes in Group structure Loans and receivables consist of cash assets, loans granted The consolidated financial statements include the parent coop- and sales receivables and other receivables. erative and all the subsidiaries, i.e. companies in which HOK- Other financial liabilities include interest-bearing liabilities, Elanto holds either directly or indirectly more than half of the purchases and other liabilities. Financial assets and liabilities voting rights conferred by the shares, as well as all the associ- are recognised on the balance sheet on the settlement date ated companies in which HOK-Elanto has a significant holding basis. of at least 20% with voting rights. The companies included in Transactions in foreign currencies are recorded at the the consolidated financial statements, together with the exchange rate of the transaction day. The foreign currency Group’s holdings in them, are shown in the Notes to the Balance receivables in the portfolio have been converted into euros by Sheet under Assets. using the exchange rate of the balance sheet date. For these, During the financial period, the Group acquired Kiinteistö the exchange rate difference is recognised in the fair value Oy Capellanranta and established Kiinteistö Oy Pukinmäen reserve. There were no other foreign currency receivables or portti, which became wholly-owned subsidiaries. 22.2% of the liabilities. shares of Kivenlahden tori Oy were acauired. During the finan- cial period, the shares of SOK Fashion Retail Oy and Gammel- THE IMPAIRMENT PRINCIPLE CONCERNING backa Servicekeskus Oy were sold. RECEIVABLES CLASSIFIED AS FINANCIAL ASSETS At the end of the reporting period, an assessment is made on Accounting policies applied to the consolidated whether or not there is objective evidence of impairment in financial statements the value of any item other than those classified as financial Intra-Group shareholdings have been eliminated in the finan- assets assessed at fair value and recognised through profit or cial statements using the acquisition cost method, whereby the loss No impairment losses were recorded for the financial acquisition cost of shares in subsidiaries is eliminated against period. When objective evidence is obtained of the impaired capital and reserves at the time of acquisition. The difference value of a debt instrument or share included in the investment between the acquisition cost of subsidiaries and the capital and portfolio, any loss accrued to capital and reserves is booked in reserves corresponding to the acquired new assets is mainly the income statement as an impairment loss. If the fair value allocated to buildings and land areas. Group assets and liabili- of the debt instrument in the portfolio later increases, and this ties allocated to buildings are depreciated/entered as income increase can be objectively considered to be related to an event according to the depreciation plan of the asset item. after impairment, the impairment loss is cancelled and recog- Associated companies have been combined using the equity nised through profit or loss. If the fair value of a share later method. The Group’s share, commensurate to its shareholding, rises, the increase in value is recognised in equity. of the associated companies’ profit for the financial period and change in capital and reserves is presented as a separate item.. PENSION ARRANGEMENTS The most significant of the Group’s 20 real estate companies is Both the statutory pension security and supplementary volun- Kiinteistö Oy Vantaanportin Liikekeskus. tary pension security for the employees of the Group companies Minority interests have been separated out from the Group’s are covered through external pension insurance companies. capital and reserves and result, and they are presented sepa- Pension costs are recognised as expenses in the accrual year. rately in the financial statements. When preparing the consolidated financial statements, all Directors’ discretionary pension benefits intra-Group income and costs, distribution of profits and profits The CEO and Management Team members are covered by from the sale of fixed assets, as well as inter-company receivables additional defined contribution pension schemes . The annual and liabilities, have been eliminated The inventories in the additional pension premium is the sum equivalent to their fixed consolidated financial statements exclude internal margins. salary package for 2.6 months, and the lowest possible pension age for the accrued extra pension fund is 60 years.

17 Deferred taxes deducted in taxation, as their realisation is not deemed to be Deferred taxes relating to the HOK-Elanto Group are entered likely. Moreover, no deferred tax assets have been entered for in accordance with the principles detailed below and the Group level write-downs of EUR 0.5 million (EUR 0.5 million). general recommendations of the Finnish Accounting Standards No deferred tax has been entered for attributable Group Board. Deferred tax liabilities and assets arising from consolida- assets and liabilities (total EUR 6.0 million net) because the tion are included in deferred tax liabilities and assets in the generated Group assets and liabilities are wholly attributable consolidated balance sheet, and any change in them is entered to key buildings and land areas in terms of business operations, as a change in deferred tax liabilities and assets in the consoli- and there is no intention to transfer them outside the Group. dated income statement. From the beginning of 2016, the financial instruments have In accordance with the principle of prudence, the consoli- been recognised at fair value, using an alternative method dated balance sheet shows the deferred tax liability in its allowed by chapter 5, section 2a of the Accounting Act. The fair entirety and deferred tax assets as the estimated and probable value measurement applies to financial assets in the portfolio. amount. A tax rate of 20.0% has been used in the calculation. The 2017 financial statement contains a deferred tax liability In the consolidated balance sheet, the accumulated appro- of EUR 2.8 million on the fair value reserve of EUR 14.2 million. priations shown in individual financial statements have been At the beginning of 2018, the investment portfolio is clas- divided into deferred tax liability and capital and reserves, and sified in accordance with IFRS 9. Starting from the beginning changes in them are presented in the consolidated income of 2018, assets in the investment portfolio will be recognised statement. Depreciation to be reversed on taxable income at fair value through profit or loss. The cumulative valuations (depreciation not deducted in taxation) has been taken into were transferred to profit assets on 1 January. account as a reducing factor in calculating the above-mentioned deferred tax liability. The deferred tax assets resulting from statutory provisions and confirmed losses of Group companies are presented in the consolidated balance sheet, and any change is presented in the consolidated income statement. In property subsidiaries with a minority holding, depreciation on the buildings has mostly been calculated in accordance with the company’s result. However, at Group level, planned depreciations have been entered for the companies, and the deferred tax assets attributable to the included accrued additional depreciations of EUR 2.4 million have not been taken into consideration. The intra-Group capital gains on the sale of fixed assets were primarily generated before 1989 when such items were not subject to tax. Therefore, no deferred tax assets have been created by the elimination of their internal margins. The Group also has intra-Group capital gains attributable to shares of EUR 6.4 million, for which deferred tax assets have not been entered because it is unlikely that they will be realised.. Oy Center-Inn Ab sold its entire business to HOK-Elanto Liiketoiminta Oy 31 May 2015. Deferred tax assets were recognised on the goodwill paid for in this deal and eliminated in the consolidated financial statements. Further deferred tax assets were entered on the intra-Group assignment of claim rights in 2013. No deferred tax assets have been entered for Group company impairments or write-downs on shares, land areas and buildings totalling EUR 33.8 million (EUR 15.1 million) and not

18 NOTES TO THE INCOME STATEMENT

Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

1. Net sales by sector Supermarkets 1,794,279 1,743,374 Department stores 75,009 72,564 Restaurants 121,003 119,013 Fuel and car wash sales 106,866 104,211 Other operations and administration 27,957 26,145 70,242 68,994 Total 2,125,114 2,065,307 70,242 68,994

2. Other income from business operations Sales gains on fixed assets 1,077 556 945 1,183 Other income from business activities 1,321 1,780 119 202 Total 2,398 2,336 1,064 1,385

3. Materials, equipment and goods Purchases during the financial period 1,547,337 1,505,618 5,570 5,490 Increase (-) or decrease (+) in stocks -476 -2,194 1 3 Total 1,546,861 1,503,424 5,571 5,493

4. Personnel costs Wages, salaries and bonuses 175,355 169,619 9,366 8,528 Pension costs 29,955 30,876 1,724 1,560 Other social security costs 6,502 7,376 242 355 Total 211,812 207,870 11,332 10,443

Notes concerning members of the personnel and bodies are presented in section 29.

5. Depreciation and impairment Depreciation and amortisation according to plan 34,281 34,670 4,184 3,838 Impairment of non-current assets 19,738 15,052 1,920 -5,111 Total 54,019 49,722 6,104 -1,273 Item-specific details of depreciation and changes in depreciation differences are included under the specification of non-current assets and accumulated appropriations in the notes to the balance sheet.

6. Other operating costs Voluntary social security costs 8,563 7,767 638 756 Property, equipment and disposables costs 97,356 93,506 6,854 6,244 Marketing, administration and other costs 66,558 63,894 12,335 14,359 Total 172,476 165,166 19,828 21,359 Facility rents are presented as a separate item in the income statement.

7. Auditor's fees Audit fees 101 97 84 83 Certificates and statements 4 2 4 2 Other fees 12 29 12 29 Total 118 129 99 114

8. Increase (-) or decrease (+) of statutory provisions *) Increased rental costs of partly vacant premises -3,889 -3,119 Decreased rental costs of partly vacant premises 1,119 5,105 Increases in land decontamination costs -174 -67 -1 -3 Decreases in land decontamination costs 277 Expiry of contractual liability 2,228 2,228 Total -2,667 7,265 -3,120 2,225 *) included in other operating costs

19 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

9. Financial income and costs Dividends from investments in non-current assets Dividends from associated companies 5,449 3,260 5,449 3,260 Dividends from others 8 22 8 22 Dividends from investment assets, total 5,457 3,282 5,456 3,282

Interest income from other non-current assets From Group companies 544 478 From others 4,559 6,159 106 159 Total 4,559 6,159 651 636

Other interest and financial income From Group companies 2 1 From others 31,337 2,647 19,593 8,242 Total 31,337 2,647 19,595 8,243

Interest and other financial income, total 35,896 8,806 20,245 8,879

Impairment of non-current assets -450 -1,710 -490 -2,410

Interest and other financial costs To Group companies 512 180 To others 416 17,130 -15,753 17,113 Interest and other financial costs, total 416 17,130 -15,241 17,293

Financial income and costs, total 41,387 -3,331 41,432 -2,722

Itemisation of financial income Net income from loans and receivables, extra-Group 126 216 98 191 Net income from loans and receivables, intra-Group 546 478 Net income from the investment portfolio 35,687 8,184 35,304 -8,915 Other financial income 5,974 5,382 6,003 5,706 41,787 13,782 41,951 -2,541 Itemisation of financial costs Net costs of financial liabilities recognised at amortised acquisition cost, extra-Group 7 6 4 1 Net costs of financial liabilities recognised at amortised acquisition cost, intra-Group 16,154 512 180 Other financial costs 393 953 3 400 17,114 519 181

Financial income and costs, total 41,387 -3,331 41,432 -2,722

10. Approproations Group contribution 13,000 Total 13,000 0

11. Income taxes Income taxes for the financial period (+/-) 11,012 5,350 10,996 2,126 Income taxes for the previous financial periods (+/-) 92 -345 76 -610 Taxes on taxable income 11,104 5,005 11,072 1,517 Change in deferred tax liability/assets 311 -1,442 Total 11,415 3,563

Deferred tax assets and liabilities not recognised on the balance sheet Deferred tax assets 1,290 992 Deferred tax liability 0 0

20 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

NOTES TO BALANCE SHEET ASSETS

12. Intangible and tangible assets

Intangible assets

Intangible rights Acquisition cost, 1 Jan 759 859 980 980 Increases 19 101 Decreases -300 -124 Transfers between items 18 -77 Acquisition cost, 31 Dec 497 759 980 980

Accumulated depreciation, 1 Jan 714 779 588 490 Accumulated depreciation of decreases and transfers -300 -124 Depreciation for the financial period 31 59 98 98 Accumulated depreciation, 31 Dec 445 714 686 588

Carrying amount, 31 Dec 52 45 294 392

Goodwill Acquisition cost, 1 Jan 76,108 77,834 Increases 301 Decreases -10,162 -2,027 Acquisition cost, 31 Dec 65,946 76,108

Accumulated amortisation, 1 Jan 75,910 56,134 Accumulated amortisation of decreases and transfers -10,162 -2,027 Amortisation for the financial period 50 21,802 Accumulated amortisation, 31 Dec 65,798 75,910

Carrying amount, 31 Dec 148 198

Other intangible assets Acquisition cost, 1 Jan 53,611 53,358 2,952 2,993 Increases 5,625 7,052 71 Decreases -15,338 -8,603 -109 -113 Transfers between items 3,961 1,804 Acquisition cost, 31 Dec 47,859 53,611 2,843 2,952

Accumulated amortisation, 1 Jan 37,922 41,753 1,676 1,577 Accumulated amortisation of decreases and transfers -15,338 -8,602 -109 -113 Amortisation for the financial period 6,428 4,770 263 212 Accumulated amortisation, 31 Dec 29,012 37,922 1,831 1,676

Carrying amount, 31 Dec 18,847 15,689 1,012 1,275

Intangible assets, prepayments Acquisition cost, 1 Jan 367 63 Increases 4,874 304 259 Transfers between items -2,144 Acquisition cost, 31 Dec 3,096 367 259 0

21 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

Group goodwill

Acquisition cost, 1 Jan 17,657 17,657 Increases 14 Acquisition cost, 31 Dec 17,671 17,657

Accumulated amortisation, 1 Jan 17,657 17,657 Amortisation for the financial period 14 0 Accumulated amortisation, 31 Dec 17,671 17,657

Carrying amount, 31 Dec 0 0

Group goodwill in the balance sheet, 31 Dec 0 0

Intangible assets, total 22,143 16,299 1,565 1,667

Tangible assets

Land and water areas Owned Acquisition cost, 1 Jan 84,867 85,493 31,999 31,780 Increases 4,031 3,727 3,355 237 Decreases -4,353 -18 Acquisition cost, 31 Dec 88,898 84,867 35,353 31,999

Accumulated impairment, 1 Jan 3,428 3,941 3,261 Impairment 17,754 -3,261 1,920 -3,261 Impairment in the Group 2,749 Accumulated impairment 31.12 21,182 3,428 1,920 0

Carrying amount, 31 Dec 67,715 81,438 33,433 31,999

Property lease rights Acquisition cost, 1 Jan 703 501 296 296 Increases 1 201 1 Decreases -12 -11 Transfers between items -172 Acquisition cost, 31 Dec 520 703 286 296

Accumulated impairment, 1 Jan 48 48 48 48 Accumulated impairment on decreases and transfers -12 -11 Impairment 1 Accumulated impairment, 31 Dec 37 48 37 48

Carrying amount, 31 Dec 483 655 249 248

Land and water areas, total 68,198 82,094 33,682 32,246

22 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

Buildings and structures Owned Acquisition cost, 1 Jan 252,308 236,036 83,769 81,387 Increases 5,398 10,565 2,242 325 Decreases -569 -103 -304 -56 Transfers between items 4,094 5,810 27 2,114 Acquisition cost, 31 Dec 261,230 252,308 85,735 83,769

Accumulated depreciation, 1 Jan 123,699 115,667 40,500 39,092 Transfers between items -12 Accumulated depreciation of decreases and transfers -569 -103 -304 -56 Depreciation for the financial period 15,817 9,997 3,534 3,314 Impairment 150 -1,850 -1,850 Accumulated depreciation, 31 Dec 139,097 123,700 43,731 40,500

Carrying amount, 31 Dec 122,134 128,609 42,004 43,270

Buildings and structures, total 122,134 128,609 42,004 43,270

Machinery and equipment Acquisition cost, 1 Jan 127,904 112,286 1,320 2,648 Increases 14,404 15,462 51 253 Decreases -8,240 -2,211 -291 -1,581 Transfers between items 6,260 2,367 Acquisition cost, 31 Dec 140,328 127,904 1,081 1,320

Accumulated depreciation, 1 Jan 86,734 73,314 740 1,991 Accumulated depreciation for subsidiaries acquired during the financial period 12 Accumulated depreciation of decreases and transfers -8,184 -2,051 -280 -1,444 Depreciation for the financial period 16,974 15,459 269 193 Accumulated depreciation, 31 Dec 95,522 86,733 729 740

Carrying amount, 31 Dec 44,805 41,171 352 580

Other tangible assets Acquisition cost, 1 Jan 1,662 1,583 690 690 Increases 10 Decreases -18 -30 -18 Transfers between items 45 99 Acquisition cost, 31 Dec 1,689 1,662 672 690

Accumulated depreciation, 1 Jan 1,458 1,373 591 569 Accumulated depreciation of decreases and transfers 27 -11 -18 Depreciation for the financial period 43 97 20 22 Accumulated depreciation, 31 Dec 1,527 1,458 593 591

Carrying amount, 31 Dec 162 204 79 99

Acquisition cost, 1 Jan 1,325 557 377 522 Increases 14,344 11,380 298 1,969 Transfers between items -12,304 -10,612 -27 -2,114 Carrying amount, 31 Dec 3,366 1,325 648 377

Tangible assets, total 238,665 253,403 76,766 76,573

23 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

14. Investments Holdings in Group companies Acquisition cost, 1 Jan 69,783 62,349 Decreases -1,180 Increases 262 8,258 Transfers between items 1 Jan–31 Dec 356 Acquisition cost, 31 Dec 70,046 69,783

Accumulated impairment, 1 Jan 2,214 2,914 Impairment reversals -200 -700 Accumulated impairment, 31 Dec 2,014 2,214

Carrying amount, 31 Dec 68,032 67,570

Receivables from Group companies Amount, 1 Jan 64,592 65,097 Increases 11,134 Decreases -1,947 -11,639 Amount, 31 Dec 62,646 64,592

Carrying amount, 31 Dec 62,646 64,592

Capital loan receivables from Group companies

Amount, 1 Jan 27,613 27,263 Increases 350 Decreases -38 Amount, 31 Dec 27,575 27,613

Accumulated impairment, 1 Jan 1,500 1,500 Accumulated impairment, 31 Dec 1,500 1,500

Carrying amount, 31 Dec 26,075 26,113 Key terms and conditions for capital loans: There are no predetermined due dates for the loans. The loan capital may be repaid and interest paid only in the part that the company’s unrestricted shareholders’ equity and the sum of all capital loans at the time of repayment exceeds the total losses confirmed for the company’s last completed financial period or balance sheet included in more recent financial statements.

Receivables from Group companies, total 88,721 90,705

Participating interests

Holdings in associated companies Acquisition cost, 1 Jan 26,298 25,622 35,519 34,818 Increases 2,543 3,035 2,734 3,135 Decreases -1,201 -2,738 -5,107 -2,815 Transfers between items 380 380 Acquisition cost, 31 Dec 27,640 26,298 33,145 35,519

Accumulated impairment, 1 Jan 4,945 4,985 10,156 11,146 Accumulated impairment of decreases and transfers -454 -4,165 -1,265 Impairment -500 910 400 1,225 Impairment reversals -950 -600 -950 Accumulated impairment, 31 Dec 3,991 4,945 5,791 10,155

Carrying amount, 31 Dec 23,649 21,353 27,355 25,363

SOK’s holdings Acquisition cost, 1 Jan 36,187 34,899 36,187 34,899 Increases 2,056 1,288 2,056 1,288 Acquisition cost, 31 Dec 38,243 36,187 38,243 36,187

Carrying amount, 31 Dec 38,243 36,187 38,243 36,187

24 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

Other participating interests Acquisition cost, 1 Jan 49,363 46,362 49,363 46,362 Increases 3,001 3,001 Acquisition cost, 31 Dec 49,363 49,363 49,363 49,363

Carrying amount, 31 Dec 49,363 49,363 49,363 49,363

Holdings in affiliated companies, total Acquisition cost, 1 Jan 111,848 106,883 121,068 116,079 Increases 4,599 7,323 4,790 7,424 Decreases -1,201 -2,738 -5,107 -2,815 Acquisition cost, 31 Dec 115,245 111,848 120,750 121,068

Accumulated impairment, 1 Jan 4,945 4,985 10,156 11,146 Accumulated impairment of decreases and transfers -454 -4,165 -1,265 Impairment -500 910 400 1,225 Impairment reversals -850 -600 -950 Accumulated impairment, 31 Dec 3,991 4,945 5,791 10,156

Carrying amount, 31 Dec 111,254 106,862 114,960 110,913

Undepreciated amount of Group assets attributable to associated companies 3,670 3,917

Amount of Group reserve attributable to associated companies that was not recognised as income -345 -391

Other shares and participations Acquisition cost, 1 Jan 18,165 18,909 18,333 19,077 Transfers between items -736 -736 Increases 2,571 2,571 Decreases -795 -8 -795 -8 Acquisition cost, 31 Dec 19,942 18,165 20,109 18,333

Accumulated impairment, 1 Jan 2,507 2,707 2,655 2,855 Impairment -200 Impairment reversals -90 -200 Accumulated impairment, 31 Dec 2,507 2,507 2,565 2,655

Other shares and participations, 1 Jan 334 374 334 374 Change in fair value 20 -39 20 -39 Other shares and participations, 31 Dec 354 334 354 334

Carrying amount, 31 Dec 17,789 15,993 17,898 16,012

The investments include EUR 55,000 in unlisted shares (55,000 in 2018), the fair value of which cannot be reliably determined.

Other receivables from others Amount, 1 Jan 4,563 11,838 3,500 10,790 Increases 359 15 Decreases -3 -7,290 -7,290 Amount, 31 Dec 4,919 4,563 3,500 3,500

Carrying amount, 31 Dec 4,919 4,564 3,500 3,500

Other investments, total 110,314 106,065 265,756 263,337

25 HOK-ELANTO Notes to the financial statements HOK-ELANTO 15. Companies owned by the Notes to the financial statements Group and the parent company Holdings on 31 December 2019 Holdings of shares/ of shares/ Associated companies owned participations Group companies owned by the parent participations by the parent company % company %

Kiinteistö Oy Helsinginkatu 1 Helsinki 41 HOK-Elanto Liiketoiminta Oy Helsinki 100 Kannelmäen Liikekeskus Oy Helsinki 41 HOK-Elanto Palvelu Oy Helsinki 100 Kaivospuhos Oy Vantaa 39 Kiinteistö Oy Nihtisilta 4 Espoo 100 Karakallion Ostoskeskus Oy Espoo 33 Kiinteistö Oy Syystie 19 Helsinki 100 Asunto Oy Ylhäinen Helsinki 25 Lahdenväylän Kauppakeskus Oy Vantaa 100 Asunto-Osakeyhtiö Siilitie 6 Helsinki 30 Kiinteistö Oy Hyvinkään Kauppakeskus Helsinki 100 Puotinharjun Puhos Oy Helsinki 29 Hokki-Kiinteistöt Oy Helsinki 100 As. Oy Puistotalo Helsinki 28 Kiinteistö Oy Korson Kauppakeskus Vantaa 100 Kiinteistö Oy Vantaanportin Kiinteistö Oy Keravan Kauppakaari 2 Kerava 100 Liikekeskus Vantaa 28 Gesterbyn Liikekiinteistö Oy Kirkkonummi 100 Kiinteistö Oy Säterintie 2 Helsinki 28 Kiinteistö Oy Espoon Siltakatu Espoo 100 Kiinteistö Oy Tapulikaupungin Kiinteistö Oy Lommilan Kauppakeskus Espoo 100 palvelutalo Helsinki 28 Kiinteistö Oy Espoon Kutojantie 1 Espoo 100 Haaga III Liikekeskus Oy Helsinki 28 Kiinteistö Oy Keravan Kauppakaari 17 Kerava 100 Mikkolan Liikekiinteistö Oy Vantaa 26 Kiinteistö Oy Hyrylän Portti Tuusula 100 As. Oy Porvoonkulma Helsinki 25 Kiinteistö Oy Saunalahden Portti Helsinki 100 Asunto-Osakeyhtiö Vihdintie 7 Helsinki 25 Kiinteistö Oy Peltokuumolantie 2 Hyvinkää 100 Kiinteistö Oy Laajalahden Liikekeskus Espoo 25 Kiinteistö Oy Koivuhaan liikekeskus Helsinki 100 Kiinteistö Oy Erätori Helsinki 24 Kiinteistö Oy Vantaan Kanerva Vantaa 100 Munkkivuoren Ostoskeskus Oy Helsinki 21 Kiinteistö Oy Pukinmäen portti Helsinki 100 Haukilahden Kauppakeskus Espoo 26 Kiinteistö Oy Capellanranta Helsinki 100 Kivenlahden tori Oy Helsinki 22 Vuosaaren Liikekeskus Oy Helsinki 57 Korson Liiketalo Oy Vantaa 76 Jakomäen Kauppakeskus Oy Helsinki 82 The total number of associated companies is 20. Hakunilan Kiinteistötalo Oy Vantaa 61 Pihlajamäen Ostoskeskus Oy Helsinki 74 Kiinteistö Oy Espoon Joosepinkuja 2 Espoo 53 Kiinteistö Oy Kalevankatu 31 Kerava 76 Kiinteistö Oy Soukan Liiketalo Espoo 62 Rajatorpan Ostoskeskus Oy Vantaa 77 Kiinteistö Oy Kauppa-Martti Vantaa 84

On 31 December 2019, the HOK-Elanto Group comprised 31 subsidiaries in addition to Helsinki Cooperative Society Elanto, 29 of them real estate companies.

Participating interest held by the parent company Holding 20.27 per cent, the share of voting rights 5.77%, and the carrying value of holdings EUR 38.2 million. On 31 December 2019, SOK’s equity was EUR 796.13 million and its profit for 2019 was EUR 50,81 million.

26 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

16. Inventories Materials and consumables 2,573 2,738 Goods 79,171 78,531 133 134 Total 81,744 81,269 133 134

17. Long-term receivables Trade receivables Other non-interest-bearing long-term receivables 1,384 988 1,347 988 Total 1,384 988 1,347 988

18. Deferred tax assets From accrual differences and temporary differences 4,186 4,497 Total 4,186 4,497

19. Short-term receivables Trade receivables 14,096 12,771 1,266 1,125

Receivables from Group companies Trade receivables 12 -7 Other receivables 13,115 10,138 Accrued income 2,571 1,040 Total 15,698 11,171

Receivables from associated companies Trade receivables 8,500 8,061 67 10 Accrued income 10,088 6,342 341 Total 18,588 14,403 67 351

Other receivables 967 2,229 469 4 Accrued income 2,283 12,672 310 9,707 Short-term receivables, total 35,934 42,076 17,810 22,358

20. Substantial items included in accrued income Personnel costs 1,323 2,995 20 533 Financial items 157 194 167 199 Accrued income from SOK Corporation 10,088 1,297 11 341 Income taxes 10 8,585 4 8,583 Annual contribution receivables and marketing contributions 4,922 Other accrued income 793 1,021 2,679 1,431 Accrued income, total 12,371 19,014 2,881 11,088

21. Financial securities Other shares and participations 339,192 263,474 339,192 263,474 Other securities from others 9,165 9,185 9,165 9,185 Total 348,357 272,659 348,357 272,659

The shares and participations consist of equity fund units and fixed-income fund units and of Finnish listed and unlisted shares held for investment purposes. Other securities from others are direct bond investments.

27 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

NOTES TO BALANCE SHEET LIABILITIES

22. Equity Cooperative capital, 1 Jan 59,117 59,117 59,117 59,117 Cooperative capital, 31 Dec 59,117 59,117 59,117 59,117 Reserve fund, 1 Jan 67,000 67,000 67,000 67,000 Reserve fund, 31.12 67,000 67,000 67,000 67,000

Restricted equity, total 126,117 126,117 126,117 126,117

Cooperative contribution fund, 1 Jan 5,784 5,143 5,784 5,143 Increase 748 640 748 640 Cooperative contribution fund, 31 Dec 6,532 5,784 6,532 5,784

Retained earnings from previous on 1 Jan before changes to accounting policies 542,795 519,633 494,140 468,082 Changes in accounting policies *) 13,857 14,231 Adjustment of profits **) -875 376 -900 Retained earnings from previous financial periods, 31 Dec 541,920 533,865 493,240 482,313

*) Financial assets are recognised in accordance with IFRS 9 from 1 January 2018. **) The write-down of land area owned by the real estate subsidiary not included in Group accounts in 2016, in addition to which there is a provision for a tax inspection

Retained earnings for the financial year 35,631 8,930 49,174 11,827

Non-restricted equity, total 584,083 548,579 548,945 499,923

Total shareholders' equity 710,200 674,696 675,062 626,040 EUR 7,830,000 (EUR 8,158,000) of the accumulated depreciation difference recorded in Group capital and reserves.

Calculation of distributable surplus on 31 Dec Retained earnings from previous financial periods, 31 Dec 493,240 482,313 Retained earnings for the financial year 49,174 11,827 Total 542,414 494,140

23. Accumulation of appropriations Depreciation difference Other intangible assets -6 -16 Buildings and structures -1,651 -1,867 Machinery and equipment 2,818 3,139 Shares -1,156 -1,243 Other tangible assets -6 -13 Total 0 0

24. Statutory provisions Partly vacant premises 5,196 2,426 3,119 0 Land decontamination costs 6,080 6,183 104 103 Total 11,276 8,609 3,223 103

28 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

25. Long-term liabilities Loans from financial institutions 41 57 Trade payables 18 29 Other long-term liabilities to the Group 50,430 23,730 Other long-term liabilities 134 354 131 350 Accrued costs 686 982 224 256 Long-term liabilities, total 879 1,422 50,785 24,336

Liabilities maturing later than in five years Other long-term liabilities to the Group 50,430 23,730 Total 0 0 50,430 23,730

26. Deferred tax liability 0 0 0 0

27. Short-term liabilities Loans from financial institutions 16 79 0 0 Advance payments received 86 120 12 14 Trade payables 28,478 23,186 2,571 1,384

Liabilities to Group companies Trade payables 441 885 Other current liabilities 33,417 79,066 Accrued costs 2,993 2,269 Total 36,852 82,220

Liabilities to affiliated companies Trade payables 103,517 111,196 486 1,018 Accrued costs 322 1,523 Total 103,839 112,719 486 1,018

Other current liabilities 12,068 13,049 2,094 2,523 Accrued costs 54,817 56,199 7,529 2,888 Current liabilities, total 199,304 205,353 49,544 90,048

28. Material items included in accrued costs Personnel costs 42,465 43,777 2,748 2,521 Income taxes 2,500 3,210 2,500 Bonus liabilities 6,897 6,993 397 343 Other accrued costs 3,955 9,131 4,878 2,292 Accrued costs, total 55,817 63,111 10,522 5,157

NOTES REGARDING PERSONNEL AND MEMBERS OF CORPORATE BODIES

29a Average number of employees 5,952 5,912 151 146

29b Average number of employees per sector Supermarkets 4,534 4,495 Department stores 253 261 Fuel and car wash sales 1 22 Restaurants 832 823 Other business operations, administration and chain management 332 311 151 146 Total 5,952 5,912 151 146

29c Salaries and remuneration of the CEO and his deputy, members and deputy members of the Board of Directors and the Supervisory Board (for these duties) 1,137 1,116 1,137 1,116

The management’s discretionary pension benefits are detailed in the accounting policy.

29 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

30. Related party transactions

Material business transactions between Group companies

Sales of services 19,377 18,527 Rental income 31,617 30,271 Total 50,994 48,798

Facility rents 13,199 11,869 Purchase of service 735 2,614 Total 13,934 14,482

31. NOTES ON COLLATERAL AND CONTINGENT LIABILITIES

Pledges and contingent liabilities granted

Liabilities secured by mortgages: - loans from financial institutions 57 140 - mortgages 751 2,671

Other collateral provided: - mortgages 650 502 350 350 - mortgages as security for land use charges 16,000 16,000 - pledges 53 139

Total amount of mortgages - charges provided as security 17,402 19,174 - charges in own possession 53,432 51,195

Securities given on behalf of Group companies: Guarantees - directly enforceable guarantees as security for rental payments 9,857 8,809 9,857 8,809 - other guarantees 750 750 750 750

Guarantees given on behalf of others: Helsinki Cooperative Society Elanto also has a collateral security liability on loans drawn down by S-ryhmän logistiikkakeskukset Oy, the primary collateral being the company’s assets. The company’s shareholders (excl. SOK) have given a guarantee as a collateral security liability on the company’s current and new loans for the maximum sum of EUR 524.5 million, which also equals the total sum of drawn-down principal borrowing on 31 December 2019. The shareholders’ (excl. SOK) share of the total sum of the collateral security liability is determined proportionate to the shareholders’ (excl. SOK) holdings in the SOK Corporation at the time the company was established. Helsinki Cooperative Society Elanto’s maximum collateral security liability of the above sum is EUR 96.9 million.. The value of the primary collateral is assumed to cover the amount of the loan taken out.

Other contingent liabilities

Leasing liabilities - payable next year 88 41 19 18 - payable in more than a year 81 53 3 26 Total 169 94 22 44

Obligation to review the real estate investments: The Group and Helsinki Cooperative Society Elanto are obliged to adjust the VAT deductions they have made of real estate invest- ments, if their taxable use changes during the review period.

30 Cooperative Society HOK-ELANTO Group (EUR 1,000) (EUR 1,000) Notes to the financial statements 2019 2018 2019 2018

Obligation to review the real estate investments: 10,162 10,958 3,713 4,508

The HOK-Elanto Group and Helsinki Cooperative Society Elanto are obliged to adjust the VAT deductions they have made of real estate investments completed in 2010–2018, if their taxable use changes during the review period. The last review year is 2027.

Rent liability Rent liability for the premises - payable next year 81,903 85,958 2,421 2,071 - payable in more than a year 617,942 497,940 22,994 9,386 Total 699,845 583,898 25,414 11,457 The rent liabilities are shown without value-added tax.

Obligation under a shareholder agreement to provide guarantees for the obligations of S-Voima Oy and to fund its operations. The shareholders are responsible for S-Voima Oy’s liabilities in accordance with the Mankala principle. According to this principle, the liability of Helsinki Cooperative Society Elanto for the costs of S-Voima Oy, also including loan repayments and interest and depreciation, is determined by the energy used by the shareholder in the case of market electricity, proportionate to the series of shares held by the shareholder in the case of wind power, and based on solar power plants built on sites controlled by the shareholder in the case of solar power. HOK-Elanto has not subscribed S-Voima Oy shares concerning electricity generated by nuclear power.

Fair value on 32. Fair values of financial assets measured at fair value and the hierarchy 31 December of fair values 2019 Level 1 Level 2 Level 3

Share investments, listed 6,660 6,660 Share investments, unlisted 55 55 Equity funds 105,649 105,649 Interest rate investments 9,165 9,165 Fixed-income funds 227,261 227,261 Total 348,791 348,736 0 55

On level 1 of the hierarchy, fair values are based on the listed prices of directly comparable asset items in an active market. The Group has used portfolio managers’ reports as price sources in determining the fair values of these instruments.

In determining fair values for level 2 instruments, the Group applies commonly accepted valuation models, however, the input data are largely based on observable market information.

The fair values of level 3 instruments are based on input values for the asset item not based on observable market information, but largely on the estimates of the management and their application in generally approved valuation models. Level 3 includes unlisted shares, the fair value of which cannot be reliably determined.

31 33. MANAGEMENT OF FINANCIAL RISKS Helsinki Cooperative Society Elanto has a financial strategy and an investment policy approved by the Board, defining the principles and responsibilities of finance and investment activities at Helsinki Cooperative Society Elanto and its subsidiaries..

The objective of the financial strategy is to ensure financial adequacy, balance and economy and to minimise the financial risks. The financial strategy also sets the numerical targets for financial risks. Most of HOK-Elanto's financial risks concern investment activity. The Group has no external interest-bearing debt.

HOK-Elanto is taking steps to prepare for future changes through long-term and low-risk investment activity. Thus, the goal is both the preservation of the invested capital and capital growth, and obtaining a return without exposing the investment capital to a higher risk than the level decided by the Board. HOK-Elanto’s consolidated balance sheet and the estimated risk attached to its items are taken into account when determining the risk level acceptable in investments. The investment risk level is regulated primarily by setting so-called base allocations for the different investment categories and their fluctuation margins (minimum / maximum). There must be no conflict between the sector or practices of the object of the investment and the operational principles of HOK-Elanto. The object of the investment must adhere to the principles of ethics and sustainable development.

The liquidity portfolio consists of short-term cash liquidity, held entirely in short-term Interest-bearing investments On 31 December 2019, the liquidity portfolio funds were held in bank accounts. Any assets in excess of the liquidity portfolio are categorised into the investment portfolio. The investment portfolio funds are held in both interest rate instruments (short and long-term) and shares.. The base allocation (weights and fluctuation margins of the various asset classes) of the investment portfolio is updated at least once a year.. Any changes made to the base allocation must be submitted for approval by the Board.

Effect of 1% Effect of 1% Capital exposed interest rate point interest rate Group’s interest rate risk to risk rise on profits fall on profits

Financial assets measured at fair value 236,426 -8,275 8,275 Financial assets measured at amortised cost 42,577 430 -430 Total 279,003 -7,844 7,844

The effect of 1 percentage point in interest rate on profits reflects the effect over the next 12 months.

Effect of a 10% Effect of a 10% Capital exposed stock price rise stock price fall Price risk attached to Group’s share investments to risk on profits on profits

Financial assets measured at fair value 112,364 11,236 -11,236

Group currency risk On 31 December 2019, all financial assets that are measured at fair value were euro-denominated.

32 PROPOSAL OF THE BOARD OF DIRECTORS REGARDING USE OF THE SURPLUS

The distributable funds of Helsinki Cooperative Society Elanto The Board of Directors proposes that Helsinki Cooperative on 31 December 2019 total EUR 542,413,527.34. Society Elanto’s surplus for 1 January–31 December 2019, No substantial change has taken place in the Cooperative amounting to EUR 49,173,660,49, are held in the retained earn- Society’s financial position after the close of the financial year. ings for the previous financial periods. The liquidity of the Cooperative Society is good, and the Board of Directors takes the view that the profit distribution proposed- below will not jeopardise the Cooperative Society’s liquidity.

SIGNATURES TO THE FINANCIAL STATEMENTS AND THE BOARD OF DIRECTORS’ REPORT

Helsinki, 3 March 2020

Veli-Matti Liimatainen Jaakko Aspara Tuula Entelä Chairman of the Board

Taru Keronen Pekka Laaksonen Sallamaari Muhonen

Markku Uitto

33 AUDITOR’S REPORT

TO THE MEMBERS OF HELSINKI COOPERATIVE SOCIETY ELANTO

AUDIT OF THE FINANCIAL STATEMENTS When preparing the financial statements, the Board of Directors and the CEO are obliged to assess the ability of the parent Opinion Cooperative Society and Group to continue their operations It is our opinion that the financial statements provide a true and in relevant circumstances to disclose any matters affecting and fair view of the result and financial position of the Group the continuity of the business, and that the financial statements and the parent Cooperative Society in accordance with the have been prepared on the basis of the going concern assump- provisions concerning the preparation of financial statements tion. The financial statements are prepared based on the going currently in force in Finland and in compliance with statutory concern assumption, unless there are plans to dissolve the requirements.. parent Cooperative Society of Group or to discontinue the business, or there is no other realistic alternative to such action. Subject of the audit We have audited the financial statements of Helsinki Coopera- Obligations of the auditor when tive Society Elanto (Business ID 1837954-9) for the financial auditing the financial statements period 1 January–31 December 2019. The financial statements We aim to obtain reasonable assurance on whether the overall include the balance sheet, income statement, cash flow state- financial statement contains material misstatements resulting ment and notes to the financial statements for both the Group from fraud or error, and to provide an auditor's report including and the parent Cooperative Society. our opinion. Reasonable assurance is a high level of assurance, but it is no guarantee that material misstatements are always Grounds for the opinion detected in an audit per-formed according to good auditing We have conducted the audit in accordance with the good practice. Misstatements may result from fraud or error, and auditing practice observed in Finland.. Our obligations under they are deemed to be material if they can, alone or collectively, good auditing practice are described in closer detail under reasonably be expected to influence financial decisions made ‘Obligations of the auditor when auditing the financial state- by users on the basis of the financial statements. ments’. Good auditing practice includes the application of professional We believe that we have obtained the necessary amount of scepticism, which we maintain throughout the audit. In addition: appropriate auditing evidence upon which to base our opinion. • we identify and assess any risk of material misstatement in Independence the financial statement resulting from fraud or error, plan We are independent of the parent Cooperative Society and the and perform audit procedures corresponding to such risks, Group companies in accordance with Finnish ethical standards and obtain the necessary amount of appropriate auditing concerning the audit performed by us, and we have complied evidence to justify our opinion. The risk of failure to detect with the other ethical obligations contained in the standards. material misstatement resulting from fraud is greater than the risk of failure to detect material misstatement resulting Obligations of the Board of Directors and from error, as fraud may include collaboration, forgery, the CEO regarding financial statements deliberate omission of information or presentation of The Board of Directors and CEO are responsible for preparing misstated information, or evading internal control. the financial statement in such a way as to provide a true and fair view in accordance with the provisions currently in force • we form an opinion on the internal control relevant to the in Finland concerning the preparation of financial statements audit in order to plan the appropriate audit procedures in and in compliance with statutory requirements. The Board of the circumstances, but not for the purpose of being able to Directors and the CEO are also responsible for any internal pass opinion on the effectiveness of internal control in the control they deem necessary in order to prepare financial state- parent Cooperative Society or Group. ments without misstatements resulting from fraud or error. • we evaluate the appropriateness of the accounting policies used in preparing the financial statement, as well as the reasonableness of the management’s accounting estimates and their presentation.

34 • we form an opinion on whether it has been appropriate for We are obliged to study the other information detailed above the Board of Directors and CEO to prepare the financial in conjunction with the financial statement audit and concur- statements on the basis of a going concern assumption, as rently make an assessment on whether the other information well as making a decision based on the auditing evidence materially contradicts the knowledge we have obtained from obtained as to whether there is any material uncertainty the financial statement and while performing the audit, or related to events or circumstances that may give significant whether it appears to be otherwise materially misstated. With cause to question the ability of the parent Cooperative regard to the management report, we are further obliged to Society or Group to continue its operations. If we conclude assess whether it has been pre-pared in accordance with the that there is material uncertainty, we are obliged in our relevant regulations.. Auditor's Report to draw the reader’s attention to the infor- mation presented in the financial statements concerning It is our opinion that the information in the management report uncertainty or, if the information concerning uncertainty is and financial statement are consistent and that the manage- insufficient, to modify our opinion. Our conclusions are based ment report has been prepared in compliance with the relevant on auditing evidence obtained up to the issue date of the regulations. auditor's report. However, subsequent events or circum- stances may result in the parent Cooperative Society or Group In the event that the work we have carried out leads us to being unable to continue its operations. conclude that the information contained in the Report by the Board of Directors a material misstatement, we are obliged to • we evaluate the general presentation, structure and content issue a report on the matter. We have nothing to report in this of the financial statement, including all the information it respect. contains, and whether the financial statement describes the business activities and events on which it is based in such a Other statements way as to provide a true and fair view. We recommend that the financial statements and consolidated financial statements are adopted.. We recommend that the • we obtain the necessary amount of appropriate auditing members of the Supervisory Board, Board of Directors and the evidence from the financial information on Group entities CEO of the parent Cooperative Society are discharged from or business activities to be able to provide an opinion of the liability for the financial period audited by us. consolidated financial statements. We are responsible for the management, oversight and performance of the audit. We are solely responsible for the audit opinion. Helsinki, 5 March 2020 We communicate with the governing bodies on matters such PricewaterhouseCoopers Oy as the planned extent and timing of the audit, as well as Authorised Public Accountants significant audit observations, including possible significant deficiencies in internal control identified during the audit.

Janne Rajalahti OTHER REPORTING OBLIGATIONS APA Other information The Board of Directors and the CEO are responsible for all other information. Other information includes the information contained in the Report by the Board of Directors.

Our opinion concerning the financial statements does not cover any other information

35 STATEMENT OF THE SUPERVISORY BOARD

Having examined the annual report of Helsinki Cooperative The Supervisory Board proposes that the Financial State- Society Elanto for 2019 and the financial statements for the ments and Consolidated Financial Statements are adopted. Group and parent Cooperative Society, auditor’s report and the The Supervisory Board is in favour of the proposal of the proposal of the Board of Directors on the use of the surplus, Board of Directors concerning the use of the surplus. the Supervisory Board issues the following statement to the Spring General Meeting of the Council of Representatives in accordance with Section 17 of the Statutes of the Cooperative:

Helsinki, 17 March 2020

Jorma Bergholm Saimi Lehtimäki Chairman of the Supervisory Board Secretary to the Supervisory Board

36 GOVERNANCE

COUNCIL OF REPRESENTATIVES Cooperative Society Elanto’s Supervisory Board has 18 members.. The Helsinki Cooperative Society Elanto Council of Representa- In 2019, the Supervisory Board convened seven times. tives applies the powers of decision resting with the owners in The Committee of Chairpersons of the Supervisory Board matters assigned to it under the legislation and Statutes.. The comprised Jorma Bergholm M.Soc.Sc. (Chairman), Member of Council of Representatives holds two statutory meetings a year. Parliament Ben Zyskowicz (First Vice Chairman) and Member of At the Spring meeting on 23 April 2019, the Council of Parliament Kari Uotila (Second Vice Chairman). Representatives adopted the 2019 Financial Statements and the Consolidated Financial Statements and decided on distributing the surplus shown on the balance sheet and the granting of BOARD OF DIRECTORS, CEO AND AUDITOR discharges for the members of the Board of Directors, Supervi- The Board of Directors is responsible for the governance of the sory Board and the CEO The Council of Representatives also Cooperative Society and the appropriate organisation of its elected the members of the Nomination Committee and operations. The Board of Directors conducts the Cooperative discussed the responses of the Board of Directors to proposals. Society affairs in accordance with the legislation, regulations, At its autumn meeting on 26 November 2019, the Council and the decisions of the Council of Representatives and Super- of Representatives elected five members to the Supervisory visory Board.. The Board of Directors decides on the Cooperative Board for the period of 2020–2022. In addition, the Council of Society’s strategies and financial targets, prepares the Financial Representatives decided on the remuneration of the Council of Statements and Consolidated Financial Statements, and makes Representatives and Supervisory Board, as well as the Auditor's a proposal on the measures necessitated by the surplus shown fee for 2020, and discussed the responses of the Board of Direc- on the balance sheet. tors to proposals. In 2019, the Board of Directors of Helsinki Cooperative Society Elanto had 12 meetings.. The Board was comprised of CEO Veli-Matti Liimatainen, M.Sc. (Econ. & Bus. Admin.) SUPERVISORY BOARD (Chairman,) Tuula Entelä, B.Sc. (Econ. & Bus. Admin.) (Vice The task of the Supervisory Board is to oversee the governance Chairman), Professor Jaakko Aspara, Managing Director Taru of the Cooperative Society, the execution of which is the respon- Keronen, Pekka Laaksonen, M.Sc. (Econ. and Bus. Admin.), sibility of the Board of Directors and the CEO. The Supervisory Communications Consultant Sallamaari Muhonen and Managing Board confirms the strategy and financial objectives of the Director Markku Uitto. Cooperative Society, appoints the CEO and elects the members The auditor for the financial period 2019 was audit firm of the Board of Directors of the Cooperative Society and the PricewaterhouseCoopers Oy, with Janne Rajalahti APA as the representatives for the meetings of SOK Corporation. Helsinki principal auditor. PricewaterhouseCoopers Oy will continue as the auditor in 2020.

37 HOK-ELANTO'S GOVERNING BODIES

ORDINARY MEMBERS OF THE COUNCIL ORDINARY MEMBERS OF THE COUNCIL OF REPRESENTATIVES 2016–2020 OF REPRESENTATIVES 2020–2024 Abdulla Zahra, Midwife, Helsinki Alanen Outi, Actress, Paramedic (AMK), Helsinki Alanko-Kahiluoto Outi, Member of Parliament, Helsinki Alanko-Kahiluoto Outi, Member of Parliament, Ph.D., Helsinki Alén Sini, Nursery School Teacher, Vantaa Alén Sini, Nursery School Teacher, Vantaa Anttila Maija, Nursing Instructor, Helsinki Anttila Maija, Nursing Instructor, Helsinki Arajärvi Pentti, Professor, Helsinki Arajärvi Pentti, Professor, Helsinki Asko-Seljavaara Sirpa, Professor, Helsink Asko-Seljavaara Sirpa, Professor, Helsinki Bogomoloff Harry, M.Soc.Sc., Helsinki Autio Minna, Professor, Helsinki Bryggare Arto, B.Sc. (Econ. and Bus. Admin.), Helsinki Backlund Lotta, Entrepreneur, Helsinki Ebeling Mika, Pastor, Helsinki Bryggare Arto, B.Sc. (Econ. and Bus. Admin.), Helsinki Eklund Tarja, Bakery worker, Vantaa Ebeling Mika, Pastor, Bible Trainer, Helsinki Finne-Elonen Laura, Specialist Physician, Helsinki Eklund Tarja, Bakery Operative, Vantaa Haatainen Tuula, Member of Parliament, Helsinki Finne-Elonen Laura, Consultant Physician, Helsinki Hakanen Yrjö, Freelancer, Helsinki Harakka Timo, Minister, Member of Parliament, Helsinki Hakola Juha, Chief Inspector, Helsinki Hassan Ahmad Noor, holder of Vocational Qualification in Economics and Business Administration, Helsinki Harakka Timo, Member of Parliament, Helsinki Heinäluoma Eveliina, Member of Parliament, M.Soc.Sc., Helsinki Hiltunen Rakel, Honorary Counsellor, Helsink Heinämaa Mari, Nurse, Helsinki Juva Kati Consultant Physician Honkasalo Veronika, Member of Parliament, Youth Researcher, Helsinki Juvonen Arja, Member of Parliament, Espoo Juvonen Arja, Elderly Care Professional (AMK), Member of Parliament, Espoo Järvinen Jukka, Addiction Counsellor, Helsinki Järvinen Jukka, Addiction Counsellor, Bachelor of Social Services, Helsinki Kanerva Seppo, Commodore, General Staff, Helsinki Kairenius Topi, Brewery Entrepreneur, Insect Chef, Helsinki Karttunen Pasi, Chief Shop Steward, Hyvinkää Kaleva Atte, Entrepreneur, Helsinki Kauma Pia, M.Sc. (Econ. and Bus. Admin.), Espoo Karjalainen Anne, Rector, Kerava Kiljunen Kimmo, D.Soc.Sc., Vantaa Karttunen Pasi, Contract Specialist, Hyvinkää Kinnunen Marjo, Salesperson, Helsinki Kauma Pia, Member of Parliament, M.Sc (Econ.), Espoo Koivulaakso Dan, M.Soc.Sc., Helsinki Kiljunen Kimmo, Dr. Soc.Sc., Member of Parliament, Vantaa Kokkonen Paula, LL.M., Helsinki Kivelä Mai, Member of Parliament, Helsinki Krohn Irina, M.A. (Theatre and Drama), Helsinki Kolu Harry, Salesperson, Espoo Kuusisto Merja, Specialist Nurse, Tuusula, Tuusula Kontula Anna, Member of Parliament, Sociologist, Kuuskoski Eeva, Consultant Physician, Helsinki Kostama Rita, Entrepreneur, B.Sc (Econ & Bus. Adm), Järvenpää Kähärä Sirkka-Liisa, Nurse, Vantaa Irina Krohn, M.A. (Theatre and Drama), Helsinki Laaninen Timo, Pastor, Helsinki Kähärä Sirkka-Liisa, Registered Nurse (AMK), Designer, Vantaa Larmo Jussi, Service Manager, Kerava Laaninen Timo, Pastor, Master of Administrative Sciences, Helsinki Laukkanen Antero, Member of Parliament, Espoo Laiho Mia, Member of Parliament, MD, Espoo Laurikainen Samuli, Organic Farmer, Helsinki Laukkanen Antero, Member of Parliament, Honorary Councillor, Espoo Luhtanen Leena, M.Soc.Sc., Espoo Laurikainen Samuli, Organic Farmer, Helsinki Månsson Björn, Journalist, Helsinki Lohikoski Pia, Member of Parliament, M.Soc.Sc,, Kerava Niemi Marika, Lecturer in Business Studies, Espoo Månsson Björn, Journalist, Pensioner, Helsinki Nieminen Irja, Pensioner, Vantaa Nieminen Pinja, Social Sector Planner, Espoo Nieminen Pinja, Program Manager, social services, Espoo Niikko Mika, Member of Parliament, Vantaa Niikko Mika, Member of Parliament, Vantaa Paavolainen Sara, Actress, Helsinki Nurminen Jukka, B.Sc.HCM, Helsinki Peltokorpi Terhi, Midwife (AMK), M.A. (Ed.), Helsinki Paavolainen Sara, Actress, Helsinki Peltonen Eemeli, Parliamentary Assistant, B.Soc.Sc,, Järvenpää Pelkonen Jaana, Member of Parliament, Helsinki Raatikainen Mika, Detective Sergeant, Helsinki Peltokorpi Terhi, Midwife, Helsinki Rainio Jaakko, Rector, Hyvinkää Prusti Riitta, Pensioner, Helsinki Rantanen Mari, Member of Parliament, Paramedic, Helsinki Puhakka Sirpa, Editor-in-Chief, Helsinki Reinikainen Pekka, Physician, Helsinki Rantanen Mari, Member of Parliament, Helsinki Rihtniemi Suvi, M.Sc. (Tech.), Managing Director, Helsinki Reinikainen Pekka, Physician, Helsinki Rydman Wille, Member of Parliament, M.Soc.Sc, Helsinki Rihtniemi Suvi, Managing Director, Helsinki Sarkomaa Sari, Member of Parliament, Master’s degree in Healthcare, Helsinki Rinne Merike, Pensioner, Vantaa Saukkonen Lea, Meteorologist, Helsinki Rydman Wille, Member of Parliament, Helsinki Selin Ann, eMBA, Management Advisor, Helsinki Saksala Harri, Cultural Attache, Helsinki Särkijärvi Jouni, Architect, Espoo Sarkomaa Sari, Member of Parliament, Helsinki Tallqvist Tarja, Document Director, Practocal Nurse, Espoo Suonperä Kaarina, Honorary Councillor, Vantaa Tuohino Anita, Group Manager, Vantaa Särkijärvi Jouni, Architect, Espoo Tuomioja Erkki, Member of Parliament, Dr.Soc.Sc., Helsinki Tuomioja Erkki, Member of Parliament, Helsinki Uotila Kari, Pensioner, Espoo Uotila Kari, Pensioner, Espoo Vahasalo Raija, Rector, M.A. (Ed.), Kirkkonummi Vahasalo Raija, Member of Parliament, Kirkkonummi Vanhanen Matti, Speaker of the Parliament, Nurmijärvi Vepsä Sinikka, Community Nurse, Helsinki Vepsä Sinikka, Nurse, Helsinki Värmälä Johanna, Registered Nurse, Espoo Värmälä Johanna, Nurse (YAMK), Specialist, Espoo

38 SUPERVISORY BOARD 2019 BOARD OF DIRECTORS 2019 Bergholm Jorma, M.Soc.Sc., Helsinki, Chairman Liimatainen Veli-Matti, M.Sc. (Econ. & Bus. Admin.), Bryggare Arto, B.Sc. (Econ. and Bus. Admin.), Helsinki CEO, Kauniainen, Chairman Ebeling Mika, Pastor, Helsinki Entelä Tuula, LL.M., B.Sc. (Econ. & Bus. Admin.), Espoo, Harakka Timo, Member of Parliament, Helsinki, Deputy Chairman resigned on 10 June 2019 Aspara Jaakko, Professor, Helsinki Juvonen Arja, Member of Parliament , Espoo Keronen Taru, CEO, Järvenpää Kaira Lauri, Director, Vantaa Laaksonen Pekka, M.Sc. (Econ. & Bus. Admin.), Helsinki Kiljunen Kimmo, D.Soc.Sc., Vantaa Muhonen Sallamaari, Communications Consultant, Helsinki Krohn Irina, M.A. (Theatre and Drama), Helsinki Uitto Markku, Managing Director, Espoo Kuusisto Merja, Specialist Nurse, Tuusula Kähärä Sirkka-Liisa, Nurse, Vantaa Laurikainen Samuli, Organic Farmer, Helsinki BOARD OF DIRECTORS 2020 Mäkelä Sirpa, Restaurant Manager, Vantaa, Liimatainen Veli-Matti, M.Sc. (Econ. & Bus. Admin.), Staff Representative CEO, Kauniainen, Chairman Niemi Marika, Lecturer in Business Studies, Espoo Entelä Tuula, LL.M., B.Sc. (Econ. & Bus. Admin.), Espoo, Puura Heli, LL.M., Helsinki Deputy Chairman Sarkomaa Sari, Member of Parliament, Helsinki Aspara Jaakko, Professor, Helsinki Uotila Kari, Member of Parliament, Espoo, 2nd Vice Chairman Keronen Taru, CEO, Järvenpää Vainio Harry, Chief Shop Steward, Hausjärvi, Laaksonen Pekka, M.Sc. (Econ. & Bus. Admin.), Helsinki Staff Representative Muhonen Sallamaari, Communications Consultant, Helsinki Zyskowicz Ben, Member of Parliament, Helsinki, Uitto Markku, Managing Director, Espoo 1st Vice Chairman

SUPERVISORY BOARD 2020 Bergholm Jorma, M.Soc.Sc., Helsinki, Chairman Bryggare Arto, B.Sc. (Econ. and Bus. Admin.), Helsinki Ebeling Mika, Pastor, Helsinki Juvonen Arja, Member of Parliament, Espoo Kaira Lauri, Director, Vantaa Kiljunen Kimmo, D.Soc.Sc., Vantaa Krohn Irina, M.A. (Theatre and Drama), Helsinki Kuusisto Merja, Specialist Nurse, Tuusula Laurikainen Samuli, Organic Farmer, Helsinki Mäkelä Sirpa, Restaurant Manager, Vantaa, Staff Representative Niemi Marika, Lecturer in Business Studies, Espoo Paavolainen Sara, Actress, Helsinki Puura Heli, LL.M., Helsinki Sarkomaa Sari, Member of Parliament, Helsinki Uotila Kari, Member of Parliament, Espoo, 2nd Vice Chairman Vainio Harry, Chief Shop Steward, Hausjärvi, Staff Representative Värmälä Johanna, Nurse (YAMK), Espoo Zyskowicz Ben, Member of Parliament, Helsinki, 1st Vice Chairman

39 Helsinki Cooperative Society Elanto Kaupintie 14, 00440 Helsinki tel. 010 76,600 hok-elanto.fi Business ID 1837954-9

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