Illustrative Disclosures: Guide To Annual Financial Statements

Il ustrative
disclosures
Guide to annual financial statements
IFRS® Standards
September 2021
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Contents
Contents
About this guide 2
References and abbreviations 5
Independent auditors’ report 6
Consolidated financial statements 14

Financial highlights 15
Consolidated statement of financial position 16
Consolidated statement of profit or loss and

other comprehensive income 18
Consolidated statement of changes in equity 22
Consolidated statement of cash flows 24
Notes to the consolidated financial statements 26
Appendices
I New standards or amendments for 2021 and

forthcoming requirements 194
II Presentation of comprehensive income –

Two‑statement approach 196
III Statement of cash flows – Direct method 198
IV Other disclosures not illustrated in the

consolidated financial statements 199
Acknowledgements 205
Keeping in touch 206

Notes
Basis of preparation 26 Other information 155

1. Reporting entity 26 37. Loan covenant waiver 155
2. Basis of accounting 26 38. Leases 156
3. Functional and presentation currency 26 39. Commitments 159
4. Use of judgements and estimates 26 40. Contingencies 159
5. Changes in significant accounting policies 29 41. Related parties 160
42. Subsequent events 163
Performance for the year 30
6. Operating segments 30 Accounting policies 164
7. Discontinued operation 39 43. Basis of measurement 164
8. Revenue 41 44. Correction of errors 165
9. Income and expenses 47 45. Significant accounting policies 166
10. Net finance costs 48 46. Standards issued but not yet effective 192
11. Earnings per share 49
Employee benefits 51
12. Share-based payment arrangements 51
13. Employee benefits 54
Income taxes 59
14. Income taxes 59
Alternative performance measure 66
15. Adjusted earnings before interest, tax,
depreciation and amortisation (adjusted EBITDA) 66
Assets 67
16. Biological assets 67
17. Inventories 71
18. Trade and other receivables 72
19. Cash and cash equivalents 73
20. Disposal group held for sale 74
21. Property, plant and equipment 76
22. Intangible assets and goodwill 79
23. Investment property 86
24. Equity-accounted investees 88
25. Other investments, including derivatives 91
Equity and liabilities 92
26. Capital and reserves 92
27. Capital management 96
28. Loans and borrowings 97
29. Trade and other payables 104
30. Government grants 105
31. Provisions 106
Financial instruments 108
32. Financial instruments – Fair values and risk
management 108
Group composition 147
33. List of subsidiaries 147
34. Acquisition of subsidiary 148
35. Non-controlling interests 152
36. Acquisition of NCI 154
2 | Guide to annual financial statements – Illustrative disclosures
About this guide

INTRODUCTION
This guide has been produced by the KPMG International Standards Group (part
of KPMG IFRG Limited).
It is intended to help entities to prepare and present financial statements in
accordance with IFRS Standardsa by illustrating one possible format for financial
statements for a fictitious multinational corporation (the Group) involved in
general business activities. This hypothetical reporting entity has been applying
the Standards for some time – i.e. it is not a first-time adopter. For more
information on first-time adoption, see Chapter 6.1 in the 18th Edition 2021/22
of our publication Insights into IFRS.
What’s new in 2021? Appendix I provides a comprehensive list of all of the new standards,
Auditors’ report
distinguishing between those that are effective for an entity with an annual
period beginning on 1 January 2021 and those with a later effective date.
Except for Interest Rate Benchmark Reform – Phase 2 (Amendments to IFRS
9, IAS 39, IFRS 7, IFRS 4 and IFRS 16), the Group has no transactions that are
affected by the newly effective standards or its accounting policies are already
consistent with the new requirements. As such, only these new requirements
are illustrated in this guide – see Note 5 and Note 32(C)(iv).
The Group does not have any COVID-19-related rent concessions and therefore
the new requirements under COVID-19-Related Rent Concessions (Amendment
to IFRS 16), which are effective for annual periods beginning after 1 June 2020,
are not illustrated in this guide. For an illustrative example of disclosures on
COVID-19-related rent concessions, see Section 5 of our Guide to annual
Primary statements
financial statements – COVID-19 supplement (September 2020).
Standards covered This guide is based on standards, amendments and interpretations (broadly
referred to in this guide as ‘standards’) that have been issued as at 31 August
2021 and that are required to be applied by an entity with an annual reporting
period beginning on 1 January 2021 (‘currently effective requirements’). The
early adoption of standards that are effective for annual periods beginning after
1 January 2021 (‘forthcoming requirements’) has not been illustrated.
This guide does not illustrate the requirements of IFRS 1 First-time Adoption
of International Financial Reporting Standards, IFRS 4 Insurance Contracts,
IFRS 6 Exploration for and Evaluation of Mineral Resources, IFRS 14 Regulatory
Deferral Accounts, IAS 26 Accounting and Reporting by Retirement Benefit
Plans, IAS 27 Separate Financial Statements, IAS 29 Financial Reporting in
Hyperinflationary Economies and IAS 34 Interim Financial Reporting. IAS 34
requirements are illustrated in our Guide to condensed interim financial
statements – Illustrative disclosures.
Notes
In addition, the standards and their interpretation change over time. Accordingly,
this guide should not be used as a substitute for referring to their requirements
and other relevant interpretative guidance.
Preparers should also consider applicable legal and regulatory requirements.
This guide does not consider the requirements of any particular jurisdiction –
e.g. IFRS Standards do not require the preparation of separate financial
IAS 1.7, Preface 2 a. ‘IFRS® Standards’ is the term used to indicate the whole body of authoritative literature, and
includes:
– IFRS® Standards issued by the International Accounting Standards Board (the Board);
Appendices
– IAS® Standards issued by the International Accounting Standards Committee (IASC, the
Board’s predecessor), or revisions thereof issued by the Board;
– interpretations of IFRS Standards and IAS Standards developed by the IFRS
Interpretations Committee (IFRIC® Interpretations) and approved for issue by the Board;
and
– interpretations of IAS Standards developed by the Standing Interpretations Committee
(SIC® Interpretations) and approved for issue by the Board or IASC.
© 2021 KPMG IFRG Limited, a UK company, limited by guarantee. All rights reserved.
About this guide | 3
statements for the parent entity but laws in certain jurisdictions may
INTRODUCTION
require preparation of separate financial statements. This guide illustrates
only consolidated financial statements and does not illustrate separate
financial statements.
Climate change and All entities are facing climate-related risks and opportunities and are making
strategic decisions in response – including around their transition to a low-
financial reporting carbon economy. These climate-related risks and strategic decisions could
impact their financial statements – and KPIs. For an illustration of the climate
change impact on the financial statements of the Group related to biological
assets, see Note 16(C), and related to emissions schemes, see Notes 22, 30, 31
and 45(G).
Our Climate change financial reporting resource centre provides FAQs to help
entities identify the potential financial statement impacts for their business.
Auditors’ report
Need for judgement This guide is part of our suite of guides to financial statements and specifically
focuses on compliance with IFRS Standards. Although it is not exhaustive,
this guide illustrates the disclosures required for a hypothetical reporting
entity, merely for illustrative purposes and, as such, largely without regard
to materiality. The information contained herein is of a general nature and is not
intended to address the circumstances of any particular entity.
The preparation and presentation of financial statements require the preparer
to exercise judgement – e.g. in terms of the choice of accounting policies,
the ordering of notes to the financial statements, how the disclosures should
be tailored to reflect the reporting entity’s specific circumstances, and the
relevance of disclosures considering the needs of the users.
Primary statements
Materiality Materiality is relevant to the presentation and disclosure of the items in
the financial statements. Preparers need to consider whether the financial
statements include all of the information that is relevant to understanding an
entity’s financial position at the reporting date and its financial performance
during the reporting period.
Preparers also need to take care not to reduce the understandability of their
financial statements by obscuring material information with immaterial
information or by aggregating material items that are different by nature or
function. Individual disclosures that are not material to the financial statements
do not have to be presented – even if they are a minimum requirement of a
standard. Preparers need to consider the appropriate level of disclosure based
on materiality for the reporting period.
Specific guidance on materiality and its application to the financial statements Notes
is included in paragraphs 29–31 of IAS 1 Presentation of Financial Statements.
Preparers may also consider Practice Statement 2 Making Materiality
Judgements, which provides guidance and examples on applying materiality in
the preparation of financial statements.
Remember the bigger Financial reporting is not just about technical compliance, but also effective
communication. Investors continue to ask for a step-up in the quality of
picture business reporting, so preparers should be careful not to become buried
in compliance to the exclusion of relevance. In preparing their financial
statements, entities need to focus on improving their communication by
reporting financial information in a meaningful way.
Entities may also consider innovating their financial statement presentation
Appendices
and disclosure in the broader context of better business reporting. For more
information, see our Better business reporting website.
What's not illustrated This guide does not illustrate the following.
INTRODUCTION
– Potential impacts of COVID-19 on the annual financial statements of the

Group.
The COVID-19 coronavirus pandemic continues to impact entities in different
ways depending on the industry and economic environment in which they
trade. Whereas some governments are starting to ease restrictions, others
continue to enforce lockdown measures. Either way, for many entities
the impact of the pandemic will continue to affect the measurement and
recognition of their assets and liabilities, income and expenses. Also, due
to continued liquidity pressures, some entities may face going concern
difficulties. Investors and regulators continue to pay specific attention to this
topic.
Our COVID-19 supplement (September 2020) provides additional illustrative
Auditors’ report
disclosures that entities may need to provide on accounting issues arising

from the COVID-19 coronavirus pandemic.
Also see our COVID-19 financial reporting resource centre for additional
relevant guidance on the financial reporting impact of the pandemic.
– Potential impacts of the UK’s exit from the EU (Brexit) on the annual
financial statements of the Group.
The UK left the EU on 31 January 2020, with an implementation period that
ended on 31 December 2020. Some UK and EU entities have made changes
to the way they do business as a result – and some details of the new
relationships are still being ironed out.
To the extent that an entity has any exposure to the changes and any
Primary statements
remaining uncertainties associated with Brexit, it should assess the impact of

those on its annual financial statements and provide relevant entity-specific
disclosures.
Notes
Appendices
References and abbreviations | 5
INTRODUCTION
References and abbreviations
References are included in the left-hand margin of this guide. Generally, the
references relate only to presentation and disclosure requirements.
IAS 1.82(a) Paragraph 82(a) of IAS 1.

[IAS 16.41] Paragraph 41 of IAS 16. The square brackets are used only in
disclosure of significant accounting policies (e.g. Note 45 to
the financial statements) to indicate that the paragraph relates
to recognition and measurement requirements, as opposed to
presentation and disclosure requirements.
Insights 2.3.60.10 Paragraph 2.3.60.10 of the 18th Edition 2021/22 of our
Auditors’ report
publication Insights into IFRS.
The following markings in the left-hand margins indicate the following.

In the context of consolidated financial statements, the disclosures in
respect of operating segments (see Note 6) and EPS (see statement of profit
or loss and OCI and Note 11) apply only if the parent:
– has debt or equity instruments (operating segments) or ordinary shares/
potential ordinary shares (EPS) that are traded in a public market – i.e.
a domestic or foreign stock exchange or an over-the-counter market,
including local and regional markets; or
– files, or is in the process of filing, its financial statements with a securities
Primary statements
commission or other regulatory organisation for the purpose of issuing any
class of instruments in a public market.
Major changes since the 2020 edition of this guide.
The following abbreviations are used often in this guide.
CGU Cash-generating unit

EBITDA Earnings before interest, tax, depreciation and amortisation
ECL Expected credit loss
EPS Earnings per share
FVOCI Fair value through other comprehensive income
FVTPL Fair value through profit or loss
NCI Non-controlling interests
Notes Notes to the financial statements
Notes
OCI Other comprehensive income
Appendices
Introduction
[Name of the Company]
Independent auditors’ report

AUDITORS’ REPORT
Primary statements
Notes
Appendices
Independent auditors’ report | 7
Introduction
Independent auditors’ report a
To the Shareholders of [Name of the Company]
Opinion
We have audited the consolidated financial statements of [Name of the Company] and its
subsidiaries (the Group), which comprise the consolidated statement of financial position as at
31 December 2021, and the consolidated statements of profit or loss and other comprehensive
AUDITORS’ REPORT
income, changes in equity and cash flows for the year then ended, and notes to the consolidated
financial statements, including significant accounting policies and other explanatory information.
In our opinion, the accompanying consolidated financial statements present fairly, in all material
respects, the consolidated financial position of the Group as at 31 December 2021, and its
consolidated financial performance and its consolidated cash flows for the year then ended in
accordance with IFRS Standards.
Basis for Opinion

We conducted our audit in accordance with International Standards on Auditing (ISAs). Our
responsibilities under those standards are further described in the Auditors’ Responsibilities for the
Audit of the Consolidated Financial Statements section of our report. We are independent of the
Group in accordance with the ethical requirements that are relevant to our audit of the consolidated
Primary statements
financial statements in [jurisdiction], and we have fulfilled our ethical responsibilities in accordance
with these requirements. We believe that the audit evidence we have obtained is sufficient and
appropriate to provide a basis for our opinion.
Key Audit Matters

Key audit matters are those matters that, in our professional judgement, were of most significance
in our audit of the consolidated financial statements of the current period. These matters were
addressed in the context of our audit of the consolidated financial statements as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Notes
a. This example report has been prepared based on the following International Standards on Auditing (ISAs):
– ISA 700 (Revised) Forming an Opinion and Reporting on Financial Statements;
– ISA 701 Communicating Key Audit Matters in the Independent Auditor’s Report; and
Appendices
– ISA 720 (Revised) The Auditor’s Responsibilities Relating to Other Information and Related Conforming Amendments.
The format of the example report does not reflect the legal or regulatory requirements of any particular jurisdiction.
In accordance with ISA 701, key audit matters are included in the auditor’s report:
– for audits of complete sets of general purpose financial statements of listed entities;
– when otherwise required by law or regulation; or
– when the auditor otherwise decides to do so.
Impairment testing of goodwill

Introduction
See Note 22 to the consolidated financial statements.
The key audit matter How the matter was addressed in our audit
The Group has recognised goodwill in Our audit procedures in this area included,
the amount of €3,832 thousand (2020: among others:
€3,407 thousand).
– involving our own valuation specialist to
The majority of goodwill has been allocated assist in evaluating the appropriateness of
to the European Paper manufacturing and the discount rates applied, which included
distribution cash-generating unit (CGU) and the comparing the weighted-average cost of
Timber Products CGU. capital with sector averages for the relevant
markets in which the CGUs operate;
The annual impairment testing of goodwill is
AUDITORS’ REPORT
considered to be a key audit matter due to the – evaluating the appropriateness of the
complexity of the accounting requirements assumptions applied to key inputs such as
and the significant judgement required in sales volumes and prices, operating costs,
determining the assumptions to be used inflation and long-term growth rates, which
to estimate the recoverable amount. The included comparing these inputs with
recoverable amount of the CGUs, which is externally derived data as well as our own
based on the higher of the value in use or fair assessments based on our knowledge of the
value less costs of disposal, has been derived client and the industry;
from discounted forecast cash flow models.
– performing our own sensitivity analysis,
These models use several key assumptions,
which included assessing the effect of
including estimates of future sales volumes and
reasonably possible reductions in growth
prices, operating costs, terminal value growth
rates and forecast cash flows to evaluate the
rates and the weighted-average cost of capital
impact on the currently estimated headroom
(discount rate).
Primary statements
for the European Paper manufacturing and

distribution CGU; and
– evaluating the adequacy of the financial
statement disclosures, including disclosures
of key assumptions, judgements and
sensitivities.
Acquisition of Papyrus
On 31 March 2021, the Group acquired 65% of Our audit procedures in this area included,
the outstanding shares in Papyrus (in addition among others:
to the 25% previously held) for consideration of
– involving our own valuation specialists to
€2,631 thousand.
support us in challenging the valuations
Notes
The accounting for this transaction is complex produced by the Group and the methodology
due to the significant judgements and estimates used to identify the assets and liabilities
that are required to determine the values of the acquired; in particular:
consideration transferred and the identification
- the methodologies adopted and key
and measurement of the fair value of the assets
assumptions used in valuing the tangible
acquired and liabilities assumed.
fixed assets by comparing them with
Due to the size and complexity of the market information and quoted prices for
acquisition, we considered this to be a key audit similar assets;
matter.
- the key assumptions used to determine
the fair value of the customer relationship
intangible asset, which included
Appendices
recalculating historical customer retention

rates and growth trends, and reconciling
underlying data to customer contracts and
relationship databases; and
- the key assumptions used to determine the
Introduction
fair value of the patented technology, which
included benchmarking of the royalty rate
used to royalty databases for licensing of
similar patented technologies;
– challenging the fair value of the contingent
consideration, which included assessing
future forecast business performance by
agreeing amounts to approved forecasts
and underlying contracts, and comparing
forecasts with historical performance and
results since the acquisition date; and
AUDITORS’ REPORT
sensitivities.
Valuation of standing timber
The Group’s biological assets include standing Our audit procedures in this area included,
timber, which is measured at fair value less among others:
costs to sell.
– evaluating the Group’s inputs used in
Estimating the fair value is a complex process calculating the estimated cash flows by
Primary statements
involving a number of judgements and comparing them with historical performance
estimates regarding various inputs. Considering and the Group’s plans, as well as our
the nature of the asset, the valuation technique understanding of the industry and the
includes a discounted cash flow model that economic environment that the Group
uses a number of inputs from internal sources operates in;
due to a lack of relevant and reliable observable
– evaluating the historical accuracy of the
inputs. Consequently, we have determined
Group’s assessment of the fair value of
the valuation of standing timber to be a key
standing timber by comparing previous
audit matter.
forecasts for yields per hectare, timber prices
and harvesting/transportation costs with
actual outcomes and industry forecasts;
assist in evaluating the appropriateness of
the discount rates used, which included
comparing the discount rate with sector Notes
averages for the relevant markets in which the
Group operates;
– evaluating the appropriateness of the
assumptions made related to the impact
of climate change on the estimated yields
per hectare for younger standing timber by
involving our own valuation specialists; and
sensitivities.
Appendices
Valuation of disposal group held for sale

Introduction
In June 2020, the Group committed to a plan Our audit procedures in this area included,
to sell part of a manufacturing facility included among others:
within the Non-recycled Papers segment.
– challenging the Group’s judgement on the
This part of the manufacturing facility has been classification of the disposal group as held-for-
classified as a disposal group and written down sale through understanding the status of the
to its fair value less costs to sell, based on a sales process and reviewing correspondence
weighted estimate of the discounted future from purchasers and prospective purchasers;
cash flow forecasts and costs associated with
– challenging the Group’s assumptions
AUDITORS’ REPORT
replicating the manufacturing facility.

used as the basis for allocating the assets
Due to the high level of judgement involved and liabilities in the manufacturing facility
in estimating the fair value of the disposal between continuing and discontinued
group, and the significant carrying amounts of operations and reconciling them to the
the assets and liabilities associated with the underlying accounting records;
disposal group, we considered this to be a key
– assessing the inputs in the discounted cash
audit matter.
flow calculation by comparing inputs with
internally and externally derived data such
as the Group’s budgets and forecasts, and
information for similar facilities operating
within the industry;
– evaluating the Group’s estimated costs of
Primary statements
replicating the manufacturing facility by

comparing them with market information and
quoted prices for similar assets;
assist in evaluating the appropriateness of the
discount rate applied; and
sensitivities.
Notes
Appendices
Recognition of deferred tax assets
Introduction
The Group has recognised deferred tax Our audit procedures in this area included,
assets for deductible temporary differences among others:
and unused tax losses that it believes are
– using our own tax specialists to evaluate
recoverable.
the tax strategies that the Group expects
The recoverability of recognised deferred tax will enable the successful recovery of the
assets is in part dependent on the Group’s ability recognised deferred tax assets;
to generate future taxable profits sufficient to
– reconciling tax losses and expiry dates to tax
utilise deductible temporary differences and tax
statements;
AUDITORS’ REPORT
losses (before the latter expire).
– assessing the accuracy of forecast future
We have determined this to be a key audit
taxable profits by evaluating historical
matter, due to the inherent uncertainty in
forecasting accuracy and comparing the
forecasting the amount and timing of future
assumptions, such as projected growth
taxable profits and the reversal of temporary
rates, with our own expectations of those
differences.
assumptions derived from our knowledge of
the industry and our understanding obtained
during our audit, including where applicable
their consistency with business plans and
forecasts used for impairment testing
purposes; and
Primary statements
sensitivities.
Other Information
Management is responsible for the other information. The other information comprises the
[information included in the X report, but does not include the financial statements and our auditors’
report thereon].
Our opinion on the consolidated financial statements does not cover the other information and we
do not express any form of assurance conclusion thereon.
In connection with our audit of the consolidated financial statements, our responsibility is to
read the other information and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audit or
Notes
otherwise appears to be materially misstated.
If, based on the work that we have performed, we conclude that there is a material misstatement
of this other information, then we are required to report that fact. We have nothing to report in
this regard.
Appendices
Responsibilities of Management and Those Charged with Governance for the Consolidated
Introduction
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with the Standards, and for such internal control as management
determines is necessary to enable the preparation of consolidated financial statements that are free
from material misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the
Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going
concern and using the going concern basis of accounting unless management either intends to
liquidate the Group or to cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting
process.
AUDITORS’ REPORT
Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error, and
to issue an auditors’ report that includes our opinion. ‘Reasonable assurance’ is a high level of
assurance, but is not a guarantee that an audit conducted in accordance with ISAs will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with ISAs, we exercise professional judgement and maintain
professional scepticism throughout the audit. We also:
– Identify and assess the risks of material misstatement of the consolidated financial statements,
Primary statements
whether due to fraud or error, design and perform audit procedures responsive to those risks,
and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The
risk of not detecting a material misstatement resulting from fraud is higher than for one resulting
from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations or
the override of internal control.
– Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Company’s internal control.
– Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
– Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to
events or conditions that may cast significant doubt on the Group’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, then we are required to draw attention
Notes
in our auditors’ report to the related disclosures in the consolidated financial statements or, if
such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditors’ report. However, future events or conditions
may cause the Group to cease to continue as a going concern.
– Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the
underlying transactions and events in a manner that achieves fair presentation.
– Obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business activities within the Group to express an opinion on the consolidated financial
statements. We are responsible for the direction, supervision and performance of the group
audit. We remain solely responsible for our audit opinion.
Appendices
We communicate with those charged with governance regarding, among other matters, the
Introduction
planned scope and timing of the audit and significant audit findings, including any significant
deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied
with relevant ethical requirements regarding independence, and communicate with them all
relationships and other matters that may reasonably be thought to bear on our independence and
where applicable, actions taken to eliminate threats or safeguards applied.
From the matters communicated with those charged with governance, we determine those matters
that were of most significance in the audit of the consolidated financial statements of the current
period and are therefore the key audit matters. We describe these matters in our auditors’ report
unless law or regulation precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the
adverse consequences of doing so would reasonably be expected to outweigh the public interest
AUDITORS’ REPORT
benefits of such communication.
The engagement partner on the audit resulting in this independent auditors’ report is [name].
[Signature as appropriate for the particular jurisdiction]

[Auditors’ address]
[Date]
Primary statements
Notes
Appendices
Introduction
[Name of the Company]
Consolidated financial statements

Auditors’ report
31 December 2021
PRIMARY STATEMENTS
Notes
Appendices
Illustrative
Illustrativedisclosures
disclosures––Primary
Financial
statements
highlights | 15
Financial highlights a
Introduction
Auditors’ report
PRIMARY STATEMENTS
Notes
Appendices
a. The comparative information is restated on account of correction of errors. See Note 44.
b. Includes revenues of discontinued operation (see Notes 6(D)(i) and 7).
Consolidated statement of financial position

Introduction
31 December 31 December 1 January

IAS 1.10(a), 10(ea)–(f),
Note 2021 2020 2020
29, 38–38A, 40A–40B, b b, c
54–55, 113 In thousands of euro Restated* Restated*
Assets
IAS 1.54(a) Property, plant and equipmentd 21 28,490 33,230 37,118
IAS 1.54(c) Intangible assets and goodwill 22 6,111 4,541 5,329
IAS 1.54(f) Biological assets 16 4,698 4,025 3,407
IAS 1.54(b), 17.49 Investment propertyd 23 1,520 400 300
IAS 1.54(e) Equity-accounted investees 24 2,489 1,948 1,530
IAS 1.54(d) Other investments, including derivativese 25 3,616 3,512 3,221
Deferred tax assets 14 2,251 2,108 985
Auditors’ report
IAS 1.54(o), 56
IAS 1.55 Employee benefits 13 671 731 716
f
IAS 1.60 Non-current assets 49,846 50,495 52,606
IAS 1.54(c) Intangible assets g 22 115 120 100
IAS 1.54(f) Biological assets 16 32 31 29
IAS 1.54(g) Inventoriesh 17 12,148 12,119 11,587
IAS 1.55 Contract assetsi 8 1,271 782 -
IAS 1.54(d) Other investments, including derivativese 25 662 1,032 947
IAS 1.54(n) Current tax assets 34 60 -
IAS 1.54(h) Trade and other receivables 18 32,518 22,325 17,651
IAS 1.55 Prepaymentsj 330 1,200 895
Cash and cash equivalents 19 1,504 1,849 2,529
PRIMARY STATEMENTS
IAS 1.54(i)
IFRS 5.38, 40, IAS 1.54(j) Assets held for sale 20 14,400 - -
IAS 1.60 Current assetsf 63,014 39,518 33,738
Total assets 112,860 90,013 86,344
IAS 1.10 a. An entity may also use other titles – e.g. ‘balance sheet’ – as long as the meaning is clear and the title not misleading.
Insights 2.8.50.110 b. When comparatives are restated, in our view, although it is not specifically required by IFRS Standards, labelling
the comparatives as restated is necessary to highlight that the comparatives are not the same as the financial
statements published previously.
IAS 1.10(f), 40A c. The Group has presented a third statement of financial position as at the beginning of the preceding period, because
the correction of errors (see Note 44) has a material effect on the information in the statement.
IFRS 16.47(a), 48 d. The Group has presented right-of-use assets that do not meet the definition of investment property within ‘property,
plant and equipment’ – i.e. the same line item in which it presents underlying assets of the same nature that it owns.
Alternatively, an entity may choose to present right-of-use assets separately in the statement of financial position.
Notes
Right-of-use assets that meet the definition of investment property are presented within ‘investment property’.
Insights 7.10.40.50 e. In our view, derivative assets and liabilities should be presented in separate line items in the statement of financial
position if they are significant.
IAS 1.60–61 f. The Group has made a current/non-current distinction in the statement of financial position. An entity may present its
assets and liabilities broadly in order of liquidity if such a presentation provides information that is reliable and more
relevant. Our publication Guide to annual financial statements – Illustrative disclosures for banks provides an example
presentation of assets and liabilities in order of liquidity.
IAS 1.66, Insights g. The Group has classified certain intangible assets (emissions certificates) as current (see Note 22(E)) because they
3.1.30 are expected to be realised within 12 months of the reporting date. An entity needs to apply the requirements in IAS
1 in determining whether to classify intangible assets as current or non-current.
IFRS 15.B21, BC367 h. IFRS 15 Revenue from Contracts with Customers and other standards do not specify where assets for rights to
recover products from customers with regards to sales with a right of return should be presented. The Group has
included these assets within ‘inventories’ and disclosed them separately in the notes (see Note 17).
Appendices
IAS 1.54–55, i. Although it is not specifically required, the Group has presented in the statement of financial position line items
IFRS 15.105, 109, related to contract assets and contract liabilities. For further guidance on applying the requirements in IAS 1 for
A, BC320–BC321, classification of contract assets and contract liabilities as current or non-current, see 4.2.510 in Insights into IFRS.
Insights 4.2.510
Although this guide uses the terms ‘contract assets’ and ‘contract liabilities’, an entity may also use other terms.
IAS 1.66, j. The Group has classified prepayments as current because they relate to the purchase of inventories and are expected
Insights 3.1.30 to be realised within 12 months of the reporting date. An entity should apply the requirements in IAS 1 in determining
whether to classify prepayments as current or non-current.
Illustrative disclosures – Primary statements | 17
Consolidated statement of financial position (continued)
Introduction
31 December 31 December 1 January
IAS 1.10(a), 10(ea)–(f),
Note 2021 2020 2020
29, 38–38A, 40A–40B, b b, c
54–55, 113 In thousands of euro Restated* Restated*
Equity
IAS 1.54(r), 78(e) Share capital 14,979 14,550 14,550
IAS 1.55, 78(e) Share premium 4,777 3,500 3,500
IAS 1.54(r), 78(e) Reserves 1,219 439 297
IAS 1.55, 78(e) Retained earnings 20,443 13,786 8,497
Equity attributable to owners of the Company 26 41,418 32,275 26,844
IAS 1.54(q) Non-controlling interests 35 3,804 3,091 2,718
Auditors’ report
Total equity 45,222 35,366 29,562
Liabilities
IAS 1.54(m) Loans and borrowingsk 28 23,758 20,877 22,204
IAS 1.55, 78(d) Employee benefits 13 912 453 1,136
IAS 1.54(k) Trade and other payablesl 29 290 5 4
IAS 1.55 Deferred income 30 1,424 1,462 -
IAS 1.54(l) Provisions 31 1,010 - 740
IAS 1.54(o), 56 Deferred tax liabilities 14 549 406 323
f
IAS 1.60 Non-current liabilities 27,943 23,203 24,407
IAS 1.55 Bank overdraft 19 334 282 303
Current tax liabilities 4,751 1,693 25
PRIMARY STATEMENTS
IAS 1.54(n)
IAS 1.54(m) Loans and borrowingsk 28 5,347 6,047 3,504
IAS 1.55, 78(d) Employee benefits 13 20 388 13
IAS 1.54(k) Trade and other payablesl, m 29 24,013 21,328 28,250
IAS 1.55 Contract liabilities 8 160 166 -
IAS 1.55 Deferred income 30 - - 140
IAS 1.54(l) Provisions 31 660 1,540 140
IFRS 5.38, 40, Liabilities directly associated with the assets
IAS 1.54(p) held for sale 20 4,410 - -
f
IAS 1.60 Current liabilities 39,695 31,444 32,375
Total liabilities 67,638 54,647 56,782
Total equity and liabilities 112,860 90,013 86,344
* The comparative information is restated on account of correction of errors. See Note 44.
The notes on pages 26 to 193 are an integral part of these consolidated financial statements.
Notes
IFRS 16.47(b) k. The Group has presented lease liabilities within ‘loans and borrowings’. Alternatively, an entity (a lessee) may choose
to present lease liabilities separately from other liabilities in the statement of financial position.
IFRS 15.55 l. The Group has presented its refund liabilities under IFRS 15 as ‘trade and other payables’. The Group’s returns policy
offers only an exchange for another good – i.e. the Group does not offer a cash refund. Therefore, refund liabilities
do not meet the definition of a financial liability in IAS 32 Financial Instruments: Presentation. If a refund liability or a
liability related to a repurchase agreement meets the definition of a financial liability in IAS 32, then it is subject to the
Appendices
disclosure requirements in IFRS 7 Financial Instruments: Disclosures.

Insights 3.1.10.30, m. The Group has presented amounts owed for the purchase of goods or services but related to reverse factoring within
7.10.35.70–100, IU ‘trade and other payables’ because it considers that the nature and function of the financial liability is not different
12-20 from other trade payables and does not warrant a separate presentation on the face of the statement of financial
position. In our view, regardless of whether the original trade payable is derecognised, an entity should consider the
appropriate presentation of amounts related to reverse factoring arrangements in the statement of financial position.
The Group has disclosed those amounts separately in the notes. See Note 29.

Introduction
other comprehensive income a, b
For the year ended 31 December

IAS 1.10(b), 10A, 29, Note 2021 2020
38–38A, 81A–85, 113 In thousands of euro Restated*
Continuing operations
IAS 1.82(a) Revenuec, d 8 102,860 96,719
IAS 1.99, 103 Cost of salese 9(C) (55,432) (56,186)
IAS 1.103 Gross profit 47,428 40,533
IAS 1.85 Other income 9(A) 893 104
Auditors’ report
IAS 1.99, 103 Selling and distribution expensese 9(C) (18,322) (15,865)
IAS 1.99, 103 Administrative expensese 9(C) (17,732) (14,428)
IAS 1.99, 103, 38.126 Research and development expensese 9(C) (1,109) (697)
IAS 1.82(ba) Impairment loss on trade receivables and contract assetsf 32(C)(ii) (200) (190)
IAS 1.99, 103 Other expenses 9(B) (996) -
g
IAS 1.85, BC55–BC56 Operating profit 9,962 9,457
d
IAS 1.85 Finance income 1,131 447
IAS 1.82(b) Finance costsh (1,883) (1,635)
IAS 1.85 Net finance costs 10 (752) (1,188)
IAS 1.82(c) Share of profit of equity-accounted investees, net of tax 24 1,141 587
PRIMARY STATEMENTS
IAS 1.85 Profit before tax 10,351 8,856

IAS 1.82(d), 12.77 Income tax expense 14 (3,178) (2,460)
IAS 1.85 Profit from continuing operations 7,173 6,396
Discontinued operation
IFRS 5.33(a),
IAS 1.82(ea) Profit (loss) from discontinued operation, net of taxi 7 379 (422)
IAS 1.81A(a) Profit for the period 7,552 5,974
Notes
Appendices
Introduction
other comprehensive income (continued)
IAS 1.10(b), 10A, 29, Note 2021 2020
Other comprehensive income

IAS 1.82A(a)(i) Items that will not be reclassified to profit or loss
IAS 1.85 Revaluation of property, plant and equipment 21(F) 200 -
IAS 1.85 Remeasurements of defined benefit liability (asset) 13(B) 72 (15)
IFRS 7.20(a)(vii) Equity investments at FVOCI – net change in fair value 26(D) 141 59
Auditors’ report
IAS 1.82A(b)(i) Equity-accounted investees – share of OCI 24, 26(D) 15 (3)
IAS 1.91(b) Related taxj 14(B) (137) (14)
291 27
IAS 1.82A(a)(ii) Items that are or may be reclassified subsequently to
profit or loss
IAS 21.52(b) Foreign operations – foreign currency translation differences 679 471
IAS 1.85 Net investment hedge – net loss (3) (8)
IAS 1.82A(b)(ii) Equity-accounted investees – share of OCI 24, 26(D) (172) (166)
IAS 1.92 Reclassification of foreign currency differences on loss of
significant influence 34(D) (20) -
IFRS 7.24C(b)(i) Cash flow hedges – effective portion of changes in fair valuek 26(D) (62) 95
PRIMARY STATEMENTS
IFRS 7.24C(b)(iv),
IAS 1.92 Cash flow hedges – reclassified to profit or lossk, l 26(D) (31) (12)
IAS 1.85 Cost of hedging reserve – changes in fair value 26(D) 34 10
IAS 1.92 Cost of hedging reserve – reclassified to profit or lossl 26(D) 8 2
IFRS 7.20(a)(viii) Debt investments at FVOCI – net change in fair value 26(D) 54 60
IFRS 7.20(a)(viii),
IAS 1.92 Debt investments at FVOCI – reclassified to profit or lossl 26(D) (64) -
IAS 1.91(b) Related taxj 14(B) 19 (48)
442 404
IAS 1.81A(b) Other comprehensive income for the period, net of tax 733 431
IAS 1.81A(c) Total comprehensive income for the period 8,285 6,405
Notes
Appendices
For footnotes, see pages 20 and 21.

Introduction
other comprehensive income (continued)

IAS 1.10(b), 10A, 29, Note 2021 2020
Profit attributable to:

IAS 1.81B(a)(ii) Owners of the Company 7,055 5,623
IAS 1.81B(a)(i) Non-controlling interests 35 497 351
7,552 5,974
Total comprehensive income attributable to:
Auditors’ report
IAS 1.81B(b)(ii) Owners of the Company 7,762 6,032

IAS 1.81B(b)(i) Non-controlling interests 35 523 373
8,285 6,405
IAS 33.4 Earnings per share

IAS 33.66 Basic earnings per share (euro) 11 2.15 1.69
IAS 33.66 Diluted earnings per share (euro) 11 2.04 1.68
Earnings per share – Continuing operations
IAS 33.66 Basic earnings per share (euro) 11 2.02 1.83
IAS 33.66 Diluted earnings per share (euro) 11 1.92 1.82
PRIMARY STATEMENTS
Adjusted earnings before interest, tax, depreciation and

amortisation (adjusted EBITDA)m 15 15,744 16,782
* The comparative information is restated on account of correction of errors. See Note 44. Comparative
information has also been re‑presented due to a discontinued operation and a change in classification. See
Notes 7 and 21(H) respectively.
Notes
IAS 1.10A a. The Group has elected to present comprehensive income using a ‘one-statement’ approach. For an illustration of the
alternative ‘two-statement’ approach, see Appendix II.
IAS 1.82 b. IAS 1 requires the separate presentation of specific line items in the statement of profit or loss. The Group has not
presented certain line items because during the reporting period it did not have events or transactions to be reflected
in those line items. See footnotes (c) and (d) below for specific considerations related to separate presentation of line
items in the statement of profit or loss.
IFRS 15.113, c. It appears that an entity is not required to present revenue from contracts with customers as a separate line item
IAS 1.29–30, 85, in the statement of profit or loss and may aggregate it with other types of revenue considering the requirements in
Insights 4.2.560.25 IAS 1. However, in providing a separate disclosure of revenue from contracts with customers – either in the notes or
in the statement of profit or loss – we believe that an entity should not include amounts that do not fall in the scope of
IFRS 15 (see Note 8).
IAS 1.82(a), d. The Group has presented interest income on financial assets that are subsequently measured at amortised cost
Insights 7.10.70.20 or FVOCI as part of ‘finance income’ because it does not consider it as part of its revenue-generating activities. If
Appendices
the interest income, calculated using the effective interest method, constituted revenue, then the entity would be
required to separately present that income as interest revenue in the statement of profit or loss and OCI. It appears
that an entity may present interest income from other financial assets in another revenue line item if it arises in the
course of the entity’s ordinary activities.
IAS 1.99–100 e. The Group has elected to analyse expenses recognised in profit or loss based on functions within the Group.
Alternatively, an entity may present the analysis based on nature if this presentation provides information that is
reliable and more relevant. The analysis may also be presented in the notes.
Introduction
Auditors’ report
PRIMARY STATEMENTS
IAS 1.82(ba), 85, f. An entity that presents the analysis of expenses by function or by nature in the statement of profit or loss and
31, 97, 99, OCI may face challenges in determining how this presentation interacts with the specific requirements to present
Insights 4.1.20.40 the effect of some events or circumstances as a single amount in the statement of profit or loss and OCI – e.g.
impairment losses determined under Section 5.5 of IFRS 9 Financial Instruments.
The Group has applied judgement in determining an appropriate presentation and disaggregated the impairment loss
amount into:
– impairment related to trade and other receivables, including contract assets, which is presented separately in the
statement of profit or loss and OCI; and
– impairment related to investments in debt securities, which is not presented separately but included under ‘finance
costs’ due to materiality considerations.
The Group believes that this presentation is relevant to an understanding of its financial performance.
IAS 1.85, g. The Group has presented a subtotal of ‘operating profit’. When an entity presents results from operating activities, it
BC55–BC56 ensures that the amount disclosed is representative of activities that would normally be regarded as ‘operating’, and it
would be inappropriate to exclude items clearly related to operations.
IAS 1.82(b), h. The Group has presented interest expense on the lease liability separately from the depreciation charge for the right-
IFRS 16.49, 7.IG13 of-use asset. Interest expense on the lease liability is a component of finance costs, which are presented separately
in the statement of profit or loss and OCI.
Notes
IFRS 5.33(a)–(b), i. The Group has elected to disclose a single amount of post-tax profit or loss of discontinued operations in the
IAS 1.82(ea) statement of profit or loss and OCI, and has analysed that single amount into revenue, expenses and the pre-tax profit
or loss in Note 7. Alternatively, an entity may present the analysis in the statement.
IAS 1.90–91 j. The Group has elected to present individual components of OCI before related tax with an aggregate amount
presented for tax in the statement of profit or loss and OCI, and has provided disclosures related to tax on each
component of OCI in Note 14(B). Alternatively, an entity may present individual components of OCI net of related tax
in the statement.
IFRS 9.6.5.11, k. IFRS 9 specifies whether and when amounts previously recognised in OCI are reclassified to profit or loss. However,
6.5.15, in some circumstances it may be unclear at the time when a gain or loss is recognised in OCI whether it will
IAS 1.82A(a), subsequently be reclassified to profit or loss. For example, if an entity hedges a future purchase of a non-financial
Insights 7.10.90.35 item, then the related hedging gains and losses will subsequently be included in the initial cost of the non-financial
item and affect profit or loss when the non-financial item is disposed of or written down. Conversely, if the future
hedged cash flows are no longer expected to occur or if a loss is no longer expected to be recoverable, then the
hedging gains or losses will be reclassified to profit or loss. Accordingly, in our view gains or losses on cash flow
Appendices
hedges and costs of hedging relating to the future recognition of a non-financial asset or liability should be presented
in OCI as items that may be subsequently reclassified to profit or loss when specific conditions are met.
IAS 1.94 l. The Group has elected to present reclassification adjustments in the statement of profit or loss and OCI. Alternatively,
an entity may present these adjustments in the notes.
IAS 1.85–85B, m. The Group has disclosed adjusted EBITDA because management believes that this measure is relevant to an
BC38G, understanding of the entity’s financial performance. This disclosure is provided for illustrative purposes only. See
Insights 4.1.150 Note 15.
Consolidated statement of changes in
Consolidated statement of changes in equity

Introduction
equity
For the year ended 31 December 2021

Attributable to owners of the Company
IAS 1.10(c), 29, 108, Share Share Translation

113 In thousands of euro Note capital premium reserve
Balance at 1 January 2020, as previously reported 14,550 3,500 (119)

IAS 1.106(b) Impact of correction of errors 44 - - -
Restated balance at 1 January 2020 14,550 3,500 (119)
Total comprehensive income for the period (restated)
IAS 1.106(d)(i) Profit for the period - - -
Auditors’ report
IAS 1.106(d)(ii), 106A Other comprehensive income for the period 14(B), 26(D) - - 275
IAS 1.106(a) Total comprehensive income for the period (restated) - - 275
Hedging gains and losses and costs of hedging
transferred to the cost of inventory - - -
IAS 1.106(d)(iii) Transactions with owners of the Company
Contributions and distributions
Treasury shares acquireda 26(B) - - -
Dividends 26(C) - - -
Equity-settled share-based paymentb 13(E), 14(C) - - -
Total transactions with owners of the Company - - -
Restated balance at 31 December 2020 14,550 3,500 156
PRIMARY STATEMENTS
Balance at 1 January 2021 14,550 3,500 156

Total comprehensive income for the period
IAS 1.106(d)(i) Profit for the period - - -
IAS 1.106(d)(ii), 106A Other comprehensive income for the period 14(B), 26(D) - - 458
IAS 1.106(a) Total comprehensive income for the period - - 458
Hedging gains and losses and costs of hedging
transferred to the cost of inventory - - -
Transactions with owners of the Company
IAS 1.106(d)(iii) Contributions and distributions
Issue of ordinary shares 26(A) 390 1,160 -
Issue of ordinary shares related to business combinations 34(A) 24 63 -
Issue of convertible notes 14(C), 28(C) - - -
Treasury shares solda 26(B) - 19 -
Dividends 26(C) - - -
b
Equity-settled share-based payment 13(E), 14(C) - - -
Notes
Share options exercised 26(A) 15 35 -

Total contributions and distributions 429 1,277 -
IAS 1.106(d)(iii) Changes in ownership interests
Acquisition of NCI without a change in control 36 - - 8
Acquisition of subsidiary with NCI 34 - - -
Total changes in ownership interests - - 8
Total transactions with owners of the Company 429 1,277 8
Balance at 31 December 2021 14,979 4,777 622
Appendices
IAS 32.33, a. The Standards do not mandate a specific method of presenting treasury shares within equity. However, local laws
Insights may prescribe the allocation method. Therefore, an entity needs to take into account its legal environment when
7.3.750.10–20 choosing how to present its own shares within equity. An entity needs to choose a presentation format, to be applied
consistently to all treasury shares. The Group has elected to present the total cost of treasury shares as a separate
category of equity.
Introduction
Equity
Cost of component Non-
Treasury
hedging Hedging Fair value Revaluation share of convertible Retained controlling
reserve reserve reserve reserve reserve notes earnings Total interests Total equity
(35) 434 17 - - - 8,440 26,787 2,718 29,505

- - - - - - 57 57 - 57
(35) 434 17 - - - 8,497 26,844 2,718 29,562
- - - - - - 5,623 5,623 351 5,974
Auditors’ report
9 56 82 - - - (13) 409 22 431
9 56 82 - - - 5,610 6,032 373 6,405
(1) 1 - - - - - - - -
- - - - (280) - - (280) - (280)

- - - - - - (571) (571) - (571)
- - - - - - 250 250 - 250
- - - - (280) - (321) (601) - (601)
(27) 491 99 - (280) - 13,786 32,275 3,091 35,366
PRIMARY STATEMENTS
(27) 491 99 - (280) - 13,786 32,275 3,091 35,366
- - - - - - 7,055 7,055 497 7,552

27 (62) 87 134 - - 63 707 26 733
27 (62) 87 134 - - 7,118 7,762 523 8,285
4 4 - - - - - 8 - 8
- - - - - - - 1,550 - 1,550
- - - - - - 120 207 - 207
- - - - - 109 - 109 - 109
- - - - 11 - - 30 - 30
- - - - - - (1,243) (1,243) - (1,243)
- - - - - - 755 755 - 755 Notes
- - - - - - - 50 - 50
- - - - 11 109 (368) 1,458 - 1,458
- - - - - - (93) (85) (115) (200)

- - - - - - - - 305 305
- - - - - - (93) (85) 190 105
- - - - 11 109 (461) 1,373 190 1,563
4 433 186 134 (269) 109 20,443 41,418 3,804 45,222
Appendices
IAS 1.78(e), 79(b), b. Generally, IFRS 2 Share-based Payment does not address whether an increase in equity recognised in connection
108, Insights with a share-based payment transaction should be presented in a separate component within equity or within
4.5.900.30 retained earnings. In our view, either approach is allowed under the Standards. The Group has elected to present this
increase in retained earnings.
Consolidated statement of cash flows

Introduction

IAS 1.10(d), 29, Note 2021 2020
38–38A, 113 In thousands of euro Restated*
IAS 7.18(b) Cash flows from operating activitiesa, b

Profit for the periodc 7,552 5,974
Adjustments for:
– Depreciation 21(A) 5,339 5,122
– Amortisation 22(A) 785 795
– Deferred income 30 (38) -
– (Reversal of) impairment losses on property, plant and
equipment 21(B) (393) 1,123
Auditors’ report
– Impairment losses on intangible assets and goodwill 22(C) 16 285

– Impairment loss on remeasurement of the disposal group 20(A) 35 -
– Change in fair value of biological assets 16(A) (587) (28)
– Increase in fair value of investment property 23(A) (20) (60)
– Net finance costs 10 752 1,188
– Share of profit of equity-accounted investees, net of tax 24 (1,141) (587)
– Gain on sale of property, plant and equipment 9(A) (48) (16)
– Gain on sale of discontinued operation, net of tax 7 (516) -
– Equity-settled share-based payment transactions 13(E) 755 248
– Tax expense 14 3,153 2,416
15,644 16,460
Changes in:
PRIMARY STATEMENTS
– Intangible assets (emissions certificates)d 5 (20)

– Inventories (1,851) (197)
– Contract assets (489) (782)
– Trade and other receivables (17,163) (5,657)
– Contract liabilities (6) (2)
– Prepayments 870 (305)
– Trade and other payablese 6,877 (6,262)
– Provisions and employee benefits 26 274
Cash generated from operating activities 3,913 3,509
IAS 7.31–32 Interest paide, f, g (1,609) (1,289)
IAS 7.35 Income taxes paid (400) (1,913)
IAS 7.10 Net cash from operating activities 1,904 307
Cash flows from investing activities
IAS 7.31 Interest receivedf 6 19
IAS 7.31 Dividends receivedf 26 32
Notes
IAS 7.16(b) Proceeds from sale of property, plant and equipment 3,085 397
IAS 7.16(d), (h) Proceeds from sale of investments 1,476 534
IAS 7.39 Disposal of discontinued operation, net of cash disposed ofh 7 10,890 -
IAS 7.39 Acquisition of subsidiary, net of cash acquired 34 (1,799) -
IAS 7.16(a) Acquisition of property, plant and equipment (15,657) (2,228)
IAS 7.16(a) Acquisition of investment property 23(A) (300) (40)
IAS 7.16(a) Purchase of non-current biological assets 16(A) (305) (835)
IAS 7.16(c), (g) Acquisition of other investments (359) (342)
IAS 24.18 Dividends from equity-accounted investees 24(A) 21 -
IAS 7.16(a) Development expenditure 22(A), (D) (1,235) (503)
Receipt of government grant 30 - 1,462
IAS 7.10 Net cash used in investing activities (4,151) (1,504)
Appendices
IAS 7.18–19 a. The Group has elected to present cash flows from operating activities using the indirect method. Alternatively, an
entity may present operating cash flows using the direct method (see Appendix III).
IFRS 7.31, 33–34, b. There is no specific guidance in IFRS Standards on the classification of cash flows from reverse factoring
IAS 7.10–11, 43, arrangements. However, in our view it is the nature of the activity, rather than the classification of the related item in
Insights 2.3.75. the statement of financial position, that primarily determines the classification of the cash outflow. Furthermore, in our
30–60, IU 12-20 view, in determining the appropriate classification an entity should apply judgement and assess whether a single cash
outflow or multiple cash flows occur for the entity. The Group presents a single cash outflow for the payments
Consolidated statement of cash flows (continued)
Introduction
IAS 1.10(d), 29, Note 2021 2020
38–38A, 113 In thousands of euro Restated*
Cash flows from financing activities

IAS 7.17(a) Proceeds from issue of share capital 26(A) 1,550 -
IAS 7.17(c) Proceeds from issue of convertible notes 28(C) 5,000 -
IAS 7.17(c) Proceeds from issue of redeemable preference shares 28(D) 2,000 -
IAS 7.17(c) Proceeds from loans and borrowings 591 4,439
IAS 7.17(a) Proceeds from sale of treasury shares 30 -
IAS 7.17(a) Proceeds from exercise of share options 26(A) 50 -
IAS 7.16(h) Proceeds from settlement of derivatives 5 11
Transaction costs related to loans and borrowings (311) -
Auditors’ report
IAS 7.21 28(C)–(D)
IAS 7.42A Acquisition of NCI 36 (200) -
IAS 7.17(b) Repurchase of treasury shares - (280)
IAS 7.17(d) Repayment of borrowings (5,055) (2,445)
IAS 7.17(e) Payment of lease liabilitiese (554) (590)
IAS 7.31, 34 Dividends paidf 26(C) (1,243) (571)
IAS 7.10 Net cash from financing activities 1,863 564
Net decrease in cash and cash equivalents (384) (633)
Cash and cash equivalents at 1 January** 1,567 2,226
IAS 7.28 Effect of movements in exchange rates on cash held (13) (26)
Cash and cash equivalents at 31 December** 19 1,170 1,567
* The comparative information is restated on account of correction of errors. See Note 44.
PRIMARY STATEMENTS
IAS 7.45 ** Cash and cash equivalents includes bank overdrafts that are repayable on demand and form an integral part of
the Group’s cash management.
made to the factor (the bank) because it considers the payment to a supplier by the bank not to be a cash transaction
of the entity. The Group classifies its cash outflows for payments made to the bank within operating activities because
it views the principal nature of these payments as related to the purchase of goods and services. The Group has
provided disclosure of non-cash transactions (see Note 29) and disclosure of liquidity risk arising from liabilities related
to reverse factoring arrangements (see Note 32(C)(iii)). There may be other acceptable approaches depending on the
legal form and structure of reverse factoring arrangements.
IAS 7.18, 20, A, c. The Group has used ‘profit or loss’ as the starting point for presenting operating cash flows using the indirect method.
Insights 2.3.30.20 This is the starting point referred to in IAS 7 Statement of Cash Flows, although the example provided in the appendix
to the standard starts with a different figure – ‘profit before taxation’. Because the appendix is illustrative only and
therefore does not have the same status as the standard, it would be more appropriate to follow the standard.
IAS 7.6, 11, d. The Group has classified cash flows related to emissions certificates (current intangible assets) within operating
Insights 2.3.20.11 activities because they relate to the Group’s principle revenue-generating activities and the assets are not considered
long-term in nature. The emissions certificates are expected to be realised within 12 months of the reporting date by
surrendering them to the government to settle the annual emissions obligation (see Note 22(E)). In determining the Notes
classification of cash flows, an entity considers the nature of the activity to which they relate.
IFRS 16.50, e. The Group has classified:
IAS 7.17(e) – cash payments for the principal portion of lease payments as financing activities;
– cash payments for the interest portion as operating activities (see footnote (f) below); and
– short-term lease payments and payments for leases of low-value assets as operating activities.
IAS 7.31, f. The Standards require cash flows from interest and dividends received and paid to be disclosed separately. In our view,
Insights 2.3.50. such disclosure is required in the statement of cash flows, rather than in the notes. In the absence of specific guidance
10–20 in IFRS Standards, an entity chooses an accounting policy, to be applied consistently, for classifying interest and
dividends paid as either operating or financing activities, and interest and dividends received as either operating or
investing activities. The Group has elected to classify cash flows from interest paid as operating activities, cash flows from
interest received and dividends received as investing activities, and cash flows from dividends paid as financing activities.
Interest paid includes the interest portion of the lease liabilities. See footnotes (e) above and (g) below.
Insights 2.3.50.38 g. In our view, an entity should choose an accounting policy, to be applied consistently, to classify cash flows related to
capitalised interest as follows:
Appendices
– as investing activities if the other cash payments to acquire the qualifying asset are reflected as investing activities; or
– consistently with interest cash flows that are not capitalised.
The Group has presented capitalised interest consistently with interest cash flows that are not capitalised.
IAS 7.10, h. The Group has elected to present a statement of cash flows that includes an analysis of all cash flows in total – i.e.
IFRS 5.33(c), including both continuing and discontinued operations; amounts related to discontinued operations by operating,
Insights 5.4.220.50 investing and financing activities are disclosed in Note 7(B). However, in our view there are numerous ways in which
the requirements of IFRS 5 Non-current Assets Held for Sale and Discontinued Operations and IAS 7 regarding cash
flow presentation may be met.
IAS 1.10(e)
Notes to the consolidated financial statements

Introduction
1. Reporting entity
IAS 1.51(a)–(b), [Name of the Company] (the Company) is domiciled in [Country X]. The Company’s registered
138(a)–(b) office is at [address]. These consolidated financial statements comprise the Company and its
subsidiaries (together referred to as the ‘Group’). The Group is primarily involved in manufacturing
paper and paper-related products, cultivating trees and selling wood (see Note 6(A)).
2. Basis of accounting
IAS 1.16, 112(a), 116, These consolidated financial statements have been prepared in accordance with IFRS Standards.
10.17
They were authorised for issue by the Company’s board of directors on [date].
Details of the Group’s accounting policies, including changes thereto, are included in Note 45 and
Auditors’ report
Note 5.
3. Functional and presentation currency

IAS 1.51(d)–(e) These consolidated financial statements are presented in euro, which is the Company’s functional
currency. All amounts have been rounded to the nearest thousand, unless otherwise indicated.
4. Use of judgements and estimatesb

In preparing these consolidated financial statements, management has made judgements and
estimates that affect the application of the Group’s accounting policies and the reported amounts
of assets, liabilities, income and expenses. Actual results may differ from these estimates.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to estimates
Primary statements
are recognised prospectively.
A. Judgements
IAS 1.122 Information about judgements made in applying accounting policies that have the most significant
effects on the amounts recognised in the financial statements is included in the following notes:
– Note 8(D): revenue recognition: whether revenue from made-to-order paper products is
recognised over time or at a point in time;
– Note 24(B): equity-accounted investees: whether the Group has significant influence over an
investee;
– Note 29: reverse factoring: presentation of amounts related to supply chain financing
arrangements in the statement of financial position and in the statement of cash flow;
– Note 33(A): consolidation: whether the Group has de facto control over an investee; and
– Note 38(B): lease term: whether the Group is reasonably certain to exercise extension options.
NOTES
IAS 1.113–114 a. Notes are presented, to the extent practicable, in a systematic order and are cross-referred to/from items in the
primary statements. In determining a systematic manner of presentation, an entity considers the effect on the
understandability and comparability of the financial statements. The Group has applied judgement in presenting
related information together in a manner that it considers to be most relevant to an understanding of its financial
Appendices
performance and financial position. The order presented is only illustrative and entities need to tailor the organisation
of the notes to fit their specific circumstances.
b. The UK left the EU on 31 January 2020, with an implementation period that ended on 31 December 2020. Some
UK and EU entities have made changes to the way they do business as a result – and some details of the new
relationships are still being ironed out. To the extent that an entity has any exposure to the changes and any
remaining uncertainties associated with Brexit, it needs to assess the impact of those on its financial reporting and
provide an update of relevant entity-specific disclosures. Such disclosures are not illustrated in this guide.
Illustrative disclosures – Notes 27
Basis of preparation
Notes to the consolidated financial statements (continued)
Introduction
4. Use of judgements and estimates (continued)
B. Assumptions and estimation uncertainties
IAS 1.125, 129–130 Information about assumptions and estimation uncertainties at 31 December 2021 that have a
significant risk of resulting in a material adjustment to the carrying amounts of assets and liabilities
in the next financial year is included in the following notes:
– Notes 8(D) and 29: revenue recognition: estimate of expected returns;

– Note 13(D)(i): measurement of defined benefit obligations: key actuarial assumptions;
– Note 14(H): recognition of deferred tax assets: availability of future taxable profit against which
deductible temporary differences and tax losses carried forward can be utilised;
Auditors’ report
– Note 14(I): uncertain tax treatments;
– Note 16(B): determining the fair value of biological assets on the basis of significant
unobservable inputs;
– Note 20(D): determining the fair value less costs to sell of the disposal group on the basis of
significant unobservable inputs;
– Note 22(C): impairment test of intangible assets and goodwill: key assumptions underlying
recoverable amounts, including the recoverability of development costs;
– Notes 31 and 40: recognition and measurement of provisions and contingencies: key
assumptions about the likelihood and magnitude of an outflow of resources;
Primary statements
– Note 32(C)(ii): measurement of ECL allowance for trade receivables and contract assets: key
assumptions in determining the weighted-average loss rate; and
– Notes 34(A) and (C): acquisition of subsidiary: fair value of the consideration transferred
(including contingent consideration) and fair value of the assets acquired and liabilities assumed,
measured on a provisional basis.
i. Measurement of fair values

A number of the Group’s accounting policies and disclosures require the measurement of fair
values, for both financial and non-financial assets and liabilities.
IFRS 13.93(g) The Group has an established control framework with respect to the measurement of fair values.
This includes a valuation team that has overall responsibility for overseeing all significant fair value
measurements, including Level 3 fair values, and reports directly to the chief financial officer.
The valuation team regularly reviews significant unobservable inputs and valuation adjustments.
If third party information, such as broker quotes or pricing services, is used to measure fair values,
NOTES
then the valuation team assesses the evidence obtained from the third parties to support the
conclusion that these valuations meet the requirements of the Standards, including the level in the
fair value hierarchy in which the valuations should be classified.
Significant valuation issues are reported to the Group’s audit committee.

Appendices

Introduction
4. Use of judgements and estimates (continued)

B. Assumptions and estimation uncertainties (continued)
i. Measurement of fair values (continued)
When measuring the fair value of an asset or a liability, the Group uses observable market data as
far as possible. Fair values are categorised into different levels in a fair value hierarchy based on the
inputs used in the valuation techniques as follows.
– Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities.
– Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or
liability, either directly (i.e. as prices) or indirectly (i.e. derived from prices).
Auditors’ report
– Level 3: inputs for the asset or liability that are not based on observable market data
(unobservable inputs).
If the inputs used to measure the fair value of an asset or a liability fall into different levels of the
fair value hierarchy, then the fair value measurement is categorised in its entirety in the same level
of the fair value hierarchy as the lowest level input that is significant to the entire measurement.
IFRS 13.95 The Group recognises transfers between levels of the fair value hierarchy at the end of the
reporting period during which the change has occurred.
Further information about the assumptions made in measuring fair values is included in the
following notes:
– Note 12(B): share-based payment arrangements;a
Primary statements
– Note 16(B): biological assets;

– Note 20(D): disposal group held for sale;
– Note 23(C): investment property;
– Note 32(B): financial instruments; and
– Note 34(C)(i): acquisition of subsidiary.b
NOTES
Appendices
IFRS 13.6(a) a. The Group has included in the list above a reference to the disclosures about the measurement of fair values for
share-based payment arrangements. However, the measurement and disclosure requirements of IFRS 13 Fair Value
Measurement do not apply to these arrangements.
IFRS 13.BC184 b. The Group has disclosed information about the fair value measurement of assets acquired in a business combination,
although the disclosure requirements of IFRS 13 do not apply to the fair value of these assets if they are
subsequently measured at other than fair value. This disclosure is provided for illustrative purposes only.
Basis of preparation
Introduction
IAS 8.28 5. Changes in significant accounting policiesa
The Group has initially adopted Interest Rate Benchmark Reform – Phase 2 (Amendments to
IFRS 9, IAS 39, IFRS 7, IFRS 4 and IFRS 16) from 1 January 2021.
IFRS 9.7.2.43–7.2.46, The Group applied the Phase 2 amendments retrospectively. However, in accordance with
IFRS 7.44HH, IAS the exceptions permitted in the Phase 2 amendments, the Group has elected not to restate
8.28(a)–(e)
comparatives for the prior periods to reflect the application of these amendments. Since the
Group had no transactions for which the benchmark rate had been replaced with an alternative
benchmark rate as at 31 December 2020, there is no impact on opening equity balances as a result
of retrospective application.b
Specific policies applicable from 1 January 2021 for interest rate benchmark
Auditors’ report
reform
The Phase 2 amendments provide practical relief from certain requirements in IFRS Standards.
These reliefs relate to modifications of financial instruments and lease contracts or hedging
relationships triggered by a replacement of a benchmark interest rate in a contract with a new
alternative benchmark rate.
IFRS 9.5.4.7, 5.4.9 If the basis for determining the contractual cash flows of a financial asset or financial liability
measured at amortised cost changed as a result of interest rate benchmark reform, then the Group
updated the effective interest rate of the financial asset or financial liability to reflect the change
that is required by the reform. A change in the basis for determining the contractual cash flows is
required by interest rate benchmark reform if the following conditions are met:
– the change is necessary as a direct consequence of the reform; and
– the new basis for determining the contractual cash flows is economically equivalent to the
Primary statements
previous basis – i.e. the basis immediately before the change.
When changes were made to a financial asset or financial liability in addition to changes to the
basis for determining the contractual cash flows required by interest rate benchmark reform, the
Group first updated the effective interest rate of the financial asset or financial liability to reflect
the change that is required by interest rate benchmark reform. After that, the Group applied the
policies on accounting for modifications to the additional changes.
IFRS 16.105 The amendments also provide an exception to use a revised discount rate that reflects the change
in interest rate when remeasuring a lease liability because of a lease modification that is required
by interest rate benchmark reform.
IFRS 9.6.9.1, 6.9.7 Finally, the Phase 2 amendments provide a series of temporary exceptions from certain hedge
accounting requirements when a change required by interest rate benchmark reform occurs to
a hedged item and/or hedging instrument that permits the hedging relationship to be continued
without interruption. The Group applied the following reliefs as and when uncertainty arising from
interest rate benchmark reform was no longer present with respect to the timing and amount of
the interest rate benchmark-based cash flows of the hedged item or hedging instrument: NOTES
– the Group amended the designation of a hedging relationship to reflect changes that were
required by the reform without discontinuing the hedging relationship; and
– when a hedged item in a cash flow hedge was amended to reflect the changes that were required
by the reform, the amount accumulated in the cash flow hedge reserve was deemed to be based
on the alternative benchmark rate on which the hedged future cash flows are determined.
The details of the accounting policies are disclosed in Note 45(P)(iii), (v) and (U)(i). See also Note
32(C)(iv) for related disclosures about risks, financial assets and financial liabilities indexed to
LIBOR and hedge accounting.
IAS 8.28 a. The description of the nature and effects of the changes in accounting policies presented is only an example that
reflects the business of the Group, and may not be representative of the nature and effects of the changes for
other entities. It is given for illustrative purposes largely without regard to materiality.
Appendices
Amendments to standards and interpretations that are effective for annual periods beginning on 1 January 2021 are
described in Appendix I.
IAS 1.38 b. Comparative information is generally required in respect of the preceding period for all amounts reported in the
current period’s financial statements and, if it is relevant to understanding the current period’s financial statements,
also for narrative and descriptive information. However, when entities adopt new accounting standards without
restating comparative information, the disclosure requirements of the new standards do not normally apply to the
comparative period because the comparative information reflects the requirements of the superseded standards.

Introduction
6. Operating segmentsa
A. Basis for segmentation
IFRS 8.20–22 The Group has the following six strategic divisions, which are its reportable segments. These
divisions offer different products and services, and are managed separately because they require
different technology and marketing strategies.
The following summary describes the operations of each reportable segment.
Reportable segmentsb Operations

Non-recycled Papers Buying, manufacturing and distributing pulp and paper
Auditors’ report
Recycled Papers Buying, recycling and distributing pulp and paper

Packaging (sold in February 2021; Designing and manufacturing packaging materials
see Note 7)
IAS 41.46(a) Forestry Cultivating and managing forest resources and related
services
Timber Products Manufacturing and distributing softwood lumber,
plywood, veneer, composite panels, engineered lumber,
raw materials and building materials
Research and Development (R&D) Conducting research and development activities
The Group’s chief executive officer reviews the internal management reports of each division at
least quarterly.
Primary statements
IFRS 8.16, Other operations include the cultivation and sale of farm animals (sheep and cattle), the
IAS 41.46(a)
construction of storage units and warehouses, the rental of investment property and the
manufacture of furniture and related parts (see Notes 8 and 16). None of these segments met the
quantitative thresholds for reportable segments in 2021 or 2020.
IFRS 8.27(a) There are varying levels of integration between the Forestry and Timber Products segments, and
the Non-recycled Papers and Recycled Papers segments. This integration includes transfers of raw
materials and shared distribution services, respectively. Inter-segment pricing is determined on an
arm’s length basis.
NOTES
IFRS 8.IN13, 27–28 a. Operating segment disclosures are consistent with the information reviewed by the chief operating decision maker
(CODM) and will vary from one entity to another and may not be in accordance with the Standards.
To help users of the financial statements understand the segment information presented, an entity discloses
information about the measurement basis adopted – e.g. the nature and effects of any differences between the
measurements used in reporting segment information and those used in the entity’s financial statements, the nature
and effect of any asymmetrical allocations to reportable segments and reconciliations of segment information to the
corresponding amounts reported in the financial statements.
Appendices
The Group’s internal measures used in reporting segment information are consistent with the Standards. Therefore,
the reconciling items are limited to items that are not allocated to reportable segments, as opposed to a difference in
the basis of preparation of the information.
IFRS 8.12, 22(aa) b. When two or more operating segments are aggregated into a single operating segment, the judgements made by
management in applying the aggregation criteria are disclosed. This includes a brief description of the operating
segments that have been aggregated in this way and the economic indicators that have been assessed in
determining that the aggregated operating segments share similar economic characteristics.
Performance for the year
Introduction
6. Operating segments (continued)
B. Information about reportable segments
Auditors’ report
Primary statements
NOTES
Appendices
* As a percentage of the total for all reportable segments. Excludes other segments.
** The Group has changed its internal organisation and the composition of its reportable segments.
See page 36 for details.

Introduction

B. Information about reportable segments (continued)
IFRS 8.27 Information related to each reportable segment is set out below. Segment profit (loss) before tax
is used to measure performance because management believes that this information is the most
relevant in evaluating the results of the respective segments relative to other entities that operate in
the same industries.
Reportable segments*
IFRS 8.16 2021 Non-recycled Recycled
In thousands of euro Papers Papers
Auditors’ report
IFRS 8.23(a), 32 External revenuesa 64,112 30,367

IFRS 8.23(b) Inter-segment revenuea - 317
Segment revenue 64,112 30,684
IFRS 8.21(b), 23 Segment profit (loss) before tax 7,730 5,599
IFRS 8.23(c) Interest incomea 109 42
IFRS 8.23(d) Interest expensea (597) (445)
IFRS 8.23(e) Depreciation and amortisationa (2,128) (1,583)
IFRS 8.23(g) Share of profit (loss) of equity-accounted investeesa 1,109 -
IFRS 8.23(i) Other material non-cash items:a
– Impairment losses on trade receivables and contract assets (114) (74)
IAS 36.129(a), 130(d)(ii) – Impairment losses on non-financial assets - -
IAS 36.129(b), 130(d)(ii) – Reversal of impairment losses on non-financial assets 493 -
Primary statements
IFRS 8.21(b) Segment assetsa 43,263 23,025

IFRS 8.24(a) Equity-accounted investees 2,209 -
IFRS 8.24(b) Capital expenditure 8,697 5,765
IFRS 8.21(b) Segment liabilitiesa 39,399 12,180
* The comparative information is restated on account of correction of errors (see Note 44).
** See Note 7.
NOTES
Appendices
Introduction
Reportable segments*
Packaging Timber Research and Total reportable All other

(discontinued)** Forestry Products Development segments segments Total
Auditors’ report
7,543 3,967 2,700 - 108,689 1,714 110,403
940 2,681 1,845 875 6,658 891 7,549
8,483 6,648 4,545 875 115,347 2,605 117,952
(162) 1,240 (263) 101 14,245 771 15,016
- 45 10 - 206 4 210
- (391) (85) - (1,518) (5) (1,523)
(623) (1,139) (248) (201) (5,922) (202) (6,124)
- 32 - - 1,141 - 1,141
(11) (7) (5) - (211) - (211)

- - (116) - (116) - (116)
- - - - 493 - 493
Primary statements
- 25,209 4,521 2,323 98,341 9,059 107,400
- 280 - - 2,489 - 2,489
- 1,158 545 1,203 17,368 560 17,928
- 6,390 1,236 169 59,374 237 59,611
NOTES
Appendices
IFRS 8.23 a. The Group has disclosed these amounts for each reportable segment because they are regularly reviewed by
the CODM.
IFRS 8 Operating Segments does not specify the disclosure requirements for a discontinued operation; nevertheless,
if the CODM regularly reviews the financial results of the discontinued operation (e.g. until the discontinuance is
completed), and the definition of an operating segment is otherwise met, then an entity may need to disclose such
information to meet the core principle of IFRS 8.

Introduction

B. Information about reportable segments (continued)
Reportable segments (restated)*
2020 Non-recycled Recycled

IFRS 8.16 In thousands of euro Papers Papers
IFRS 8.23(a), 32 External revenuesa 67,085 22,060

IFRS 8.23(b) Inter-segment revenuea - 323
Segment revenue 67,085 22,383
IFRS 8.21(b), 23 Segment profit (loss) before tax 4,483 3,819
Auditors’ report
IFRS 8.23(c) Interest incomea 91 24

IFRS 8.23(d) Interest expensea (577) (355)
IFRS 8.23(e) Depreciation and amortisationa (2,180) (1,276)
IFRS 8.23(g) Share of profit (loss) of equity-accounted investeesa 561 -
IFRS 8.23(i) Other material non-cash items:a
– Impairment losses on trade receivables and contract assets (129) (41)
IAS 36.129(a), 130(d)(ii) – Impairment losses on non-financial assets (1,408) -
IAS 36.129(b), 130(d)(ii) – Reversal of impairment losses on non-financial assets - -
IFRS 8.21(b) Segment assetsa 26,967 16,003
IFRS 8.24(a) Equity-accounted investees 1,700 -
IFRS 8.24(b) Capital expenditure 1,136 296
IFRS 8.21(b) Segment liabilitiesa 26,907 14,316
Primary statements
IFRS 8.29 * As a result of the acquisition of Papyrus Pty Limited (Papyrus) during the year ended 31 December 2021 (see
Note 22), the Group has changed its internal organisation and the composition of its operating segments,
which resulted in a change in reportable segments. Accordingly, the Group has restated the previously reported
segment information for the year ended 31 December 2020.
** See Note 7.
NOTES
Appendices
Introduction
Reportable segments (restated)*
All other
Packaging Timber Research and Total reportable segments
(discontinued)** Forestry Products Development segments (restated)** Total
23,193 3,483 2,985 - 118,806 1,106 119,912

2,835 2,676 1,923 994 8,751 765 9,516
26,028 6,159 4,908 994 127,557 1,871 129,428
(466) 997 1,280 67 10,180 195 10,375
Auditors’ report
- 27 7 - 149 2 151
- (301) (63) - (1,296) (3) (1,299)
(1,250) (696) (201) (165) (5,768) (149) (5,917)
- 26 - - 587 - 587
(3) (20) - - (193) - (193)

- - - - (1,408) - (1,408)
- - - - - - -
13,250 18,470 3,664 1,946 80,300 3,403 83,703
- 248 - - 1,948 - 1,948
127 722 369 123 2,773 150 2,923
2,959 4,540 1,456 158 50,336 454 50,790
Primary statements
NOTES
Appendices
IFRS 8.23 a. The Group has disclosed these amounts for each reportable segment because they are regularly reviewed by
the CODM.
IFRS 8 does not specify the disclosure requirements for a discontinued operation; nevertheless, if the CODM
regularly reviews the financial results of the discontinued operation (e.g. until the discontinuance is completed), and
the definition of an operating segment is otherwise met, then an entity may need to disclose such information to
meet the core principle of IFRS 8.

Introduction

C. Reconciliations of information on reportable segments to the amounts
reported in the financial statements
2021 2020
In thousands of euro Note Restated*
IFRS 8.28(a) i. Revenues

Total revenue for reportable segments 115,347 127,557
Revenue for other segments 2,605 1,871
Elimination of inter-segment revenue (7,549) (9,516)
Elimination of discontinued operations 7 (7,543) (23,193)
Auditors’ report
Consolidated revenue 102,860 96,719

IFRS 8.28(b) ii. Profit before tax
Total profit before tax for reportable segments 14,245 10,180
Profit before tax for other segments 771 195
Elimination of inter-segment profit (2,263) (1,349)
Elimination of discontinued operation 7 162 466
Unallocated amounts:
– Other corporate expenses (2,564) (636)
Consolidated profit before tax from continuing operations 10,351 8,856
IFRS 8.28(c) iii. Assets
Total assets for reportable segments 98,341 80,300
Primary statements
Assets for other segments 9,059 3,403

Other unallocated amounts 5,460 6,310
Consolidated total assets 112,860 90,013
IFRS 8.28(d) iv. Liabilities
Total liabilities for reportable segments 59,374 50,336
Liabilities for other segments 237 454
Other unallocated amounts 8,027 3,857
Consolidated total liabilities 67,638 54,647
* See Notes 6(B), 7 and 44.
NOTES
Appendices
Introduction
C. Reconciliations of information on reportable segments to the amounts
reported in the financial statements (continued)
IFRS 8.28(e) v. Other material items
Reportable
2021 segment Consolidated
In thousands of euro totals Adjustments totals
Interest income 206 4 210

Interest expense (1,518) (5) (1,523)
Capital expenditure 17,368 560 17,928
Auditors’ report
Depreciation and amortisation (5,922) (202) (6,124)
Impairment losses on non-financial assets – goodwill (116) - (116)
Reversal of impairment losses on non-financial assets –
property, plant and equipment and intangible assets 493 - 493
Impairment losses on trade receivables and contract assets (211) - (211)
Reportable
segment
2020 totals Consolidated
In thousands of euro (restated)* Adjustments totals
Interest income 149 2 151

Interest expense (1,296) (3) (1,299)
Capital expenditure 2,773 150 2,923
Depreciation and amortisation (5,768) (149) (5,917)
Primary statements
Impairment losses on non-financial assets – property, plant
and equipment and intangible assets (1,408) - (1,408)
Impairment losses on trade receivables and contract assets (193) - (193)
* See Notes 6(B), 7 and 44.
IFRS 8.33(a)–(b) D. Geographic informationa, b

The Non-recycled Papers, Recycled Papers and Forestry segments are managed on a worldwide
basis, but operate manufacturing facilities and sales offices primarily in [Country X], the
Netherlands, Germany, the UK and the US.
The geographic information analyses the Group’s revenue and non-current assets by the
Company’s country of domicile and other countries. In presenting the geographic information,
segment revenue has been based on the geographic location of customers and segment assets
were based on the geographic location of the assets.
NOTES
Insights 5.2.220.20 a. In our view, entity-wide disclosures by region (e.g. Europe or Asia) do not meet the requirement to disclose
Appendices
information by individual foreign country (e.g. France, the Netherlands or Singapore) when it is material.
IFRS 8.32, IG5 b. As part of the required ‘entity-wide disclosures’, an entity discloses revenue from external customers for each
product and service, or each group of similar products and services, regardless of whether the information is used by
the CODM in assessing segment performance. This disclosure is based on the financial information used to produce
the entity’s financial statements. The Group has not provided additional disclosures in this regard, because the Group
has already met that disclosure requirement by providing the external revenue information in Note 6(B), which has
been prepared in accordance with the Standards, and the disaggregated revenue information in Note 8.

Introduction

D. Geographic information (continued)
i. Revenue
2021 2020
In thousands of euro Restated*
[Country X] (of which €4,149 thousand (2020: €12,781 thousand) relates

to discontinued packaging operation) 32,338 34,826
All foreign countries
Germany (of which €1,885 thousand (2020: €6,005 thousand) relates to
discontinued packaging operation) 23,556 25,877
Auditors’ report
Netherlands 22,654 25,641

UK 310 212
US (of which €1,509 thousand (2020: €4,407 thousand) relates to
discontinued packaging operation) 21,995 22,733
Other countries 9,550 10,623
Packaging (discontinued) (7,543) (23,193)
102,860 96,719
* See Notes 6(B) and 7.
ii. Non-current assets

In thousands of euro 2021 2020
[Country X] 16,952 16,484

Primary statements
All foreign countries

Germany 6,104 7,877
Netherlands 9,608 8,986
UK 2,002 1,998
US 7,691 7,807
Other countries 951 992
43,308 44,144
Non-current assets exclude financial investments (other than equity-accounted investees),
deferred tax assets and employee benefit assets.a
E. Major customer
IFRS 8.34 Revenues from one customer of the Group’s Non-recycled Papers and Recycled Papers
segments represented approximately €20,000 thousand (2020: €17,500 thousand) of the Group’s
total revenues.
NOTES
Appendices
IFRS 8.24(a), 33(b) a. The Group has disclosed the equity-accounted investees as the geographic information of non-current assets
because they are regularly provided to the CODM. IFRS 8 does not specify which financial instruments are excluded
from non‑current assets reported in the geographic information.
Introduction
7. Discontinued operation
See accounting policy in Note 45(C).
IFRS 5.30, 41(a)–(b), In February 2021, the Group sold its entire Packaging segment (see Note 6). Management
41(d)
committed to a plan to sell this segment early in 2021, following a strategic decision to place
greater focus on the Group’s key competencies – i.e. the manufacture of paper used in the printing
industry, forestry and the manufacture of timber products.
The Packaging segment was not previously classified as held-for-sale or as a discontinued

operation. The comparative consolidated statement of profit or loss and OCI has been
re-presented to show the discontinued operation separately from continuing operations.
Auditors’ report
Subsequent to the disposal, the Group has continued to purchase packaging from the
discontinued operation. Although intra-group transactions have been fully eliminated in the
consolidated financial results, management has elected to attribute the elimination of transactions
between the continuing operations and the discontinued operation before the disposal in a
way that reflects the continuance of these transactions subsequent to the disposal, because
management believes this is useful to the users of the financial statements.
To achieve this presentation, management has eliminated from the results of the discontinued
operation the inter-segment sales (and costs thereof, less unrealised profits) made before its
disposal. Because purchases from the discontinued operation will continue after the disposal,
inter-segment purchases made by the continuing operations before the disposal are retained in
continuing operations.
Primary statements
IAS 1.98(e) A. Results of discontinued operationa
In thousands of euro Note 2021 2020
IFRS 5.33(b)(i) Revenue 8,483 26,028

Elimination of inter-segment revenue (940) (2,835)
External revenue 7,543 23,193
IFRS 5.33(b)(i) Expenses (8,641) (26,486)
Elimination of expenses related to inter-segment sales 936 2,827
External expenses (7,705) (23,659)
IFRS 5.33(b)(i) Results from operating activities (162) (466)
IFRS 5.33(b)(ii),
IAS 12.81(h)(ii) Income tax 14(A) 25 44
Results from operating activities, net of tax (137) (422)
IFRS 5.33(b)(iii) Gain on sale of discontinued operation 846 -
IFRS 5.33(b)(ii),
IAS 12.81(h)(i) Income tax on gain on sale of discontinued operation 14(A) (330) -
NOTES
IFRS 5.33(a) Profit (loss) from discontinued operations, net of tax 379 (422)
IAS 33.68 Basic earnings (loss) per share (euro)b 11 0.12 (0.14)
b
IAS 33.68 Diluted earnings (loss) per share (euro) 11 0.12 (0.14)
IFRS 5.33(d) The profit from the discontinued operation of €379 thousand (2020: loss of €422 thousand) is
attributable entirely to the owners of the Company. Of the profit from continuing operations of
€7,173 thousand (2020: €6,396 thousand), an amount of €6,676 thousand is attributable to the
owners of the Company (2020: €6,045 thousand).
Insights a. In our view, considering that IFRS 5 does not specify how the elimination should be attributed to continuing and
5.4.230.40 discontinued operations (see Note 6(B)–(C)), an entity may present transactions between the continuing and
discontinued operations in a way that reflects the continuance of those transactions, when that is useful to the users
of the financial statements. It may be appropriate to present additional disclosure either on the face of the statement
Appendices
of profit or loss and OCI or in the notes. In our experience, if the additional disclosure is provided in the statement
of profit or loss and OCI, then judgement may be required over whether the disaggregated information should be
presented as part of the statement itself or as an additional disclosure alongside the totals in that statement. Clear
disclosure of the approach taken to the elimination of intra-group transactions will be relevant, including an explanation
of any additional analysis of discontinued operations in the notes to the statement of profit or loss and OCI.
IAS 33.68 b. The Group has elected to present basic and diluted EPS for the discontinued operation in the notes. Alternatively,
basic and diluted EPS for the discontinued operation may be presented in the statement of profit or loss and OCI.

Introduction
7. Discontinued operation (continued)

IFRS 5.33(c) B. Cash flows from (used in) discontinued operationa
Net cash used in operating activities (225) (910)

Net cash from investing activities (C) 10,890 -
Net cash flows for the year 10,665 (910)
IAS 7.40(d) C. Effect of disposal on the financial position of the Group

In thousands of euro Note 2021
Auditors’ report
Property, plant and equipment (7,986)

Inventories (134)
Trade and other receivables (3,955)
IAS 7.40(c) Cash and cash equivalents (110)
Deferred tax liabilities 110
Trade and other payables 1,921
Net assets and liabilities (10,154)
IAS 7.40(a)–(b) Consideration received, satisfied in cash 11,000
Cash and cash equivalents disposed of (110)
Net cash inflows (B) 10,890
Primary statements
NOTES
Appendices
IAS 7.10, a. In our view, there are numerous ways in which the requirements of IFRS 5 and IAS 7 on cash flow presentation may
IFRS 5.33(c), be met. The Group has elected to present:
Insights 5.4.220.50
– a statement of cash flows that includes an analysis of all cash flows in total: i.e. including both continuing and
discontinued operations; and
– amounts related to discontinued operations by operating, investing and financing activities in the notes.
Alternatively, cash flows attributable to operating, investing and financing activities of discontinued operations can be
presented separately in the statement of cash flows.
Introduction
8. Revenuea
A. Revenue streams
The Group generates revenue primarily from the sale of paper and timber products and provision
of forestry services to its customers (see Note 6(A)). Other sources of revenue include rental
income from owned and leased investment properties and immaterial amounts related to hedge
accounting and hedging gains.
Discontinued
Continuing operation
operations (see Note 7) Total
In thousands of euro Note 2021 2020 2021 2020 2021 2020
Auditors’ report
IFRS 15.113(a) Revenue from contracts
with customersb 102,394 96,421 7,543 23,193 109,937 119,614
Other revenue
IAS 40.75(f)(i) Investment property
rentals 38(B)(ii) 460 302 - - 460 302
Hedging gainsc 32(C)(iv) 6 (4) - - 6 (4)
466 298 - - 466 298
Total revenue 102,860 96,719 7,543 23,193 110,403 119,912
Primary statements
NOTES
IFRS 15.119(b), a. IFRS 15 requires an entity to provide disclosure about costs to obtain or fulfil a contract with a customer. The Group
127–128 does not incur such costs, and therefore the related disclosures are not illustrated in this guide. Similarly, the Group
has determined that its contracts with customers do not contain a significant financing component, and therefore
the related disclosures are not illustrated.
IFRS 15.113, b. In providing a separate disclosure of revenue from contracts with customers – either in the notes or in the
IAS 1.29–30, 85, statement of profit or loss – we believe that an entity should not include amounts that do not fall in the scope of
Insights 4.2.560.25 IFRS 15.
IFRS 9.B6.5.29(a), c. When an entity hedges a sale, whether in a forecast transaction or a firm commitment, the costs of hedging related
Insights 7.10.167.20 to that sale are reclassified to profit or loss as part of the cost related to that sale in the same period as the revenue
Appendices
from the hedged sale is recognised. It appears that when these costs of hedging are reclassified to profit or loss, an
entity may choose an accounting policy, to be applied consistently, to present them:
– as revenue: because they relate to a hedge of revenue. However, they should not be presented or disclosed as
revenue from contracts with customers in the scope of IFRS 15, because they are not; or
– in another appropriate line item of income or expense: because the term ‘cost related to that sale’ could be
interpreted as precluding presentation as revenue.
The Group has chosen to present the costs of hedging related to sales transactions as revenue.

Introduction
8. Revenue (continued)
B. Disaggregation of revenue from contracts with customers
IFRS 15.114–115 In the following table, revenue from contracts with customers (including revenue related to a
discontinued operation) is disaggregated by primary geographical market, major products and service
lines and timing of revenue recognition. The table also includes a reconciliation of the disaggregated
revenue with the Group’s reportable segments (see Note 6).a, b, c
Reportable segments
d
For the year ended 31 December Non-recycled Papers Recycled Papers Packaging (discontinued)
In thousands of euro 2021 2020 2021 2020 2021 2020
Auditors’ report
Primary geographical markets

Europe 51,276 54,335 24,290 17,873 6,034 18,786
US 12,832 12,752 6,075 4,189 1,509 4,407
64,108 67,087 30,365 22,062 7,543 23,193
Major products/service lines
Standard paper products 48,081 50,315 22,774 16,547 - -
Made-to-order paper products 16,027 16,772 7,591 5,515 - -
Forestry services - - - - - -
Timber products - - - - - -
Packaging and other - - - - 7,543 23,193
64,108 67,087 30,365 22,062 7,543 23,193
Primary statements
Timing of revenue recognition

Products transferred at a point
in time 48,081 50,315 22,774 16,547 7,543 23,193
Products and services
transferred over time 16,027 16,772 7,591 5,515 - -
Revenue from contracts with
customers 64,108 67,087 30,365 22,062 7,543 23,193
Other revenue 4 (2) 2 (2) - -
IFRS 15.115 External revenue as reported
in Note 6 64,112 67,085 30,367 22,060 7,543 23,193
IFRS 15.114, B87– a. The extent to which an entity’s revenue is disaggregated for the purposes of this disclosure depends on the facts
B89, IE210–IE211 and circumstances of the entity’s contracts with customers.
In determining the appropriate categories, an entity considers how revenue is disaggregated in:
NOTES
– disclosures presented outside the financial statements: e.g. earnings releases, annual reports or investor
presentations;
– information reviewed by the CODM for evaluating the financial performance of operating segments; and
– other similar information that is used by the entity or users of the entity’s financial statements to evaluate
performance or make resource allocation decisions.
Examples of categories that might be appropriate in disclosing disaggregated revenue include, but are not limited to,
the following.
Type of category Example

Type of good or service Major product lines
Geographic region Country or region
Market or type of customer Government and non-government customers
Type of contract Fixed-price and time-and-materials contracts
Appendices
Contract duration Short-term and long-term contracts

Timing of transfer of goods or services Goods or services transferred to customers:
– at a point in time
– over time
Sales channels Goods or services sold:
– directly to consumers
– through intermediaries
Introduction
Reportable segments
Forestry Timber Products Total reportable segments All other segments Total
2021 2020 2021 2020 2021 2020 2021 2020 2021 2020
Auditors’ report

3,174 2,821 2,160 2,418 86,934 96,233 1,003 651 87,937 96,884
793 662 540 567 21,749 22,577 251 153 22,000 22,730
3,967 3,483 2,700 2,985 108,683 118,810 1,254 804 109,937 119,614
- - - - 70,855 66,862 - - 70,855 66,862

- - - - 23,618 22,287 - - 23,618 22,287
3,967 3,483 - - 3,967 3,483 - - 3,967 3,483
- - 2,700 2,985 2,700 2,985 - - 2,700 2,985
- - - - 7,543 23,193 1,254 804 8,797 23,997
3,967 3,483 2,700 2,985 108,683 118,810 1,254 804 109,937 119,614
Primary statements
- - 2,700 2,985 81,098 93,040 831 359 81,929 93,399
3,967 3,483 - - 27,585 25,770 423 445 28,008 26,215
3,967 3,483 2,700 2,985 108,683 118,810 1,254 804 109,937 119,614
- - - - 6 (4) 460 302 466 298
3,967 3,483 2,700 2,985 108,689 118,806 1,714 1,106 110,403 119,912
NOTES
IFRS 15.112, 114, b. Some entities may not be able to meet the objective in paragraph 114 of IFRS 15 for disaggregating revenue by
BC340 providing segment revenue information and may need to use more than one type of category. Other entities
may meet the objective by using only one type of category. Even if an entity uses consistent categories in the
segment note and in the revenue disaggregation note, further disaggregation of revenue may be required because
the objective of providing segment information under IFRS 8 is different from the objective of the disaggregation
disclosure under IFRS 15 and, unlike IFRS 8, there are no aggregation criteria in IFRS 15.
Nonetheless, an entity does not need to provide disaggregated revenue disclosures if the information about revenue
Appendices
provided under IFRS 8 meets the requirements of paragraph 114 of IFRS 15 and those revenue disclosures are
based on the recognition and measurement requirements in IFRS 15.
IFRS 15.115 c. An entity is required to disclose sufficient information to enable users of financial statements to understand the
relationship between the disclosure of disaggregated revenue and revenue information that is disclosed for each
reportable segment, if the entity applies IFRS 8.
IFRS 15.114, 5.5B d. Although it is not explicitly required to include discontinued operations as part of the disaggregation of revenue from
contracts with customers, the Group has provided that information.

Introduction
IFRS 15.116–118 C. Contract balances
The following table provides information about receivables, contract assets and contract liabilities
from contracts with customers.
31 December 31 December
Receivables, which are included in ‘trade and other receivables’ 18 32,092 22,010
Receivables, which are included in ‘assets held for sale’ 20 3,496 -
Contract assets 1,271 782
Auditors’ report
Contract liabilities (160) (166)

The contract assets primarily relate to the Group’s rights to consideration for work completed
but not billed at the reporting date on made-to-order paper products. The contract assets were
impacted by an impairment charge of €4 thousand (2020: €2 thousand). There was no impact on
contract assets as a result of an acquisition of the subsidiary (see Note 34). The contract assets
are transferred to receivables when the rights become unconditional. This usually occurs when the
Group issues an invoice to the customer.
IFRS 15.120(b) The contract liabilities primarily relate to the advance consideration received from customers for
construction of storage units and warehouses, for which revenue is recognised over time, and
to the unredeemed customer loyalty points. The amount of unredeemed customer loyalty points
is €50 thousand (2020: €2 thousand). This will be recognised as revenue when the points are
redeemed by customers, which is expected to occur over the next two years.
Primary statements
IFRS 15.116(b) The amount of €166 thousand included in contract liabilities at 31 December 2020 has been
recognised as revenue in 2021 (2020: €140 thousand).
IFRS 15.116(c) The amount of revenue recognised in 2021 from performance obligations satisfied (or partially
satisfied) in previous periods is €8 thousand (2020: €4 thousand). This is mainly due to changes in
the estimate of the stage of completion of construction of storage units and warehouses.
IFRS 15.121–122 No information is provided about remaining performance obligations at 31 December 2021 or
at 31 December 2020 that have an original expected duration of one year or less, as allowed by
IFRS 15.
NOTES
Appendices
Introduction
IFRS 15.119, 123–126, D. Performance obligations and revenue recognition policiesa
IAS 1.122
Revenue is measured based on the consideration specified in a contract with a customer. The
Group recognises revenue when it transfers control over a good or service to a customer.
The following table provides information about the nature and timing of the satisfaction of
performance obligations in contracts with customers, including significant payment terms, and
the related revenue recognition policies. For the accounting policy for onerous contracts, see
Note 45(T).
Nature and timing of satisfaction of
Auditors’ report
performance obligations, including
Type of product/service significant payment terms Revenue recognition policies
Standard paper Customers obtain control of standard Revenue is recognised when the goods
products paper products when the goods are are delivered and have been accepted by
delivered to and have been accepted at customers at their premises.
their premises. Invoices are generated For contracts that permit the customer to
at that point in time. Invoices are usually return an item, revenue is recognised to
payable within 30 days. No discounts are the extent that it is highly probable that
provided for standard paper products, a significant reversal in the amount of
but customers may earn loyalty points cumulative revenue recognised will not
instead (see Loyalty programme). occur.
Some contracts permit the customer Therefore, the amount of revenue
to return an item. Returned goods are recognised is adjusted for expected
exchanged only for new goods – i.e. no returns, which are estimated based on
cash refunds are offered. the historical data for specific types
Primary statements
of paper, size, finish etc. In these
circumstances, a refund liability and a
right to recover returned goods asset
are recognised.
The right to recover returned goods
asset is measured at the former
carrying amount of the inventory less
any expected costs to recover goods.
The refund liability is included in other
payables (see Note 29) and the right
to recover returned goods is included
in inventory (see Note 17). The Group
reviews its estimate of expected returns
at each reporting date and updates
the amounts of the asset and liability
accordingly.
Made-to-order paper The Group has determined that for made- Revenue and associated costs are
NOTES
products to-order paper products, the customer recognised over time – i.e. before the
controls all of the work in progress as goods are delivered to the customers’
the products are being manufactured. premises. Progress is determined based
This is because under those contracts on the cost-to-cost method because the
paper products are made to a customer’s customer obtains control of the work
specification and if a contract is in progress as the made-to-order paper
terminated by the customer, then the products are being manufactured, and
Group is entitled to reimbursement of the cost measure faithfully depicts the
the costs incurred to date, including a transformation of the work in progress.
reasonable margin.
Invoices are issued according to
contractual terms and are usually payable
within 30 days. Uninvoiced amounts are
presented as contract assets. Customers
may earn loyalty points (see Loyalty
Appendices
programme).
IAS 1.117(b), 119 a. The Group presents significant accounting policies related to revenue from contracts with customers in the revenue
note, rather than in a separate note with other significant accounting policies (see Note 45). Other approaches to
presenting accounting policies may be acceptable.

Introduction
IFRS 15.119, 123–126, D. Performance obligations and revenue recognition policies (continued)
IAS 1.122
Nature and timing of satisfaction of
performance obligations, including
Type of product/service significant payment terms Revenue recognition policies
Timber products Customers obtain control of timber Revenue is recognised when the
products when the goods are dispatched goods are dispatched from the Group’s
from the Group’s warehouse. Invoices warehouse.
are generated and revenue is recognised
at that point in time. Invoices are usually
payable within 30 days. No discounts,
Auditors’ report
loyalty points or returns are offered for

timber products.
Loyalty programme Customers who purchase paper products The Group allocates a portion of the
may enter the Group’s customer loyalty consideration received to loyalty points.
programme and earn points that are This allocation is based on the relative
redeemable against any future purchases stand-alone selling prices. The amount
of the Group’s products. The points allocated to the loyalty programme is
accumulate and do not expire. deferred, and is recognised as revenue
when loyalty points are redeemed or the
likelihood of the customer redeeming the
loyalty points becomes remote.
The deferred revenue is included in
contract liabilities.
Managing forest
Primary statements
Invoices for forestry services are issued Revenue is recognised over time as
resources services on a monthly basis and are usually the services are provided. The stage of
and related services payable within 30 days. completion for determining the amount
of revenue to recognise is assessed
based on surveys of work performed.
If the services under a single
arrangement are rendered in different
reporting periods, then the consideration
is allocated based on their relative stand-
alone selling prices. The stand-alone
selling price is determined based on the
list prices at which the Group sells the
services in separate transactions.
Construction The Group builds storage units and Revenue is recognised over time based
contracts warehouses for customers in the on the cost-to-cost method. The related
Timber Products segment based on costs are recognised in profit or loss
their designs and on their land. Each when they are incurred.
project commences on receipt of a full Advances received are included in
NOTES
prepayment from a customer and its contract liabilities.

length depends on the complexity of the
design. However, projects usually do not
extend beyond six months.
Appendices
Introduction
9. Income and expenses
IAS 1.97 A. Other income
IAS 41.40 Change in fair value of biological assets 16(A) 587 28

IAS 40.76(d) Increase in fair value of investment property 23(A) 20 60
IAS 20.29 Government grants 30(A), (C) 238 -
IAS 1.98(c) Gain on sale of property, plant and equipment 38(B)(i) 48 16
893 104
a
IAS 1.97 B. Other expenses
Auditors’ report
Impairment loss on goodwillb 22(C) 116 -

IFRS 5.41(c) Impairment loss on remeasurement of the disposal group 20(A) 35 -
Settlement of pre-existing relationship with acquiree 34(A) 326 -
Onerous contract charge 160 -
IAS 1.87 Earthquake-related expenses 359 -
996 -
IAS 1.104 C. Expenses by nature

2021 2020
Primary statements
Changes in inventories of finished goods and work in progress 472 (343)
Raw materials and consumables 42,104 43,208
IAS 1.104 Employee benefits 13(E) 22,154 19,439
IAS 1.104 Depreciation and amortisation 21(A), 22(A) 6,124 5,917
(Reversal of) impairment of property, plant and equipment
and intangible assets 21(B), 22(C) (493) 1,408
Consultancy 4,866 2,732
Advertising 2,550 2,650
Maintenance 12,673 9,957
Lease expense 38(A)(ii) 465 477
Other 1,680 1,731
Total cost of sales, selling and distribution, administrative
and research and development expenses 92,595 87,176
* See Note 44. NOTES
Appendices
Insights a. There is no guidance in IFRS Standards on how specific expenses are allocated to functions. An entity establishes its
4.1.30.10–40 own definitions of functions. In our view, cost of sales includes only expenses directly or indirectly attributable to the
production process. Only expenses that cannot be allocated to a specific function are classified as ‘other expenses’.
IAS 36.126, b. The Group has classified expenses by function and has therefore allocated the impairment loss to the appropriate
Insights 3.10.410.20 function. In our view, in the rare case that an impairment loss cannot be allocated to a function, it should be included
in ‘other expenses’ as a separate line item if it is significant (e.g. impairment of goodwill), with additional information
given in a note.

Introduction
10. Net finance costs

See accounting policies in Notes 45(H) and (P).
IAS 1.97 In thousands of euro Note 2021 2020
Interest income under the effective interest method on:a

IFRS 7.20(b) – Corporate debt securities – at FVOCI 8 27
IFRS 7.20(b) – Corporate debt securities – at amortised cost 198 123
IFRS 7.20(b) – Cash and cash equivalents 1 1
IFRS 16.90(a)(ii) Interest income on lease receivable 2 -
Total interest income arising from financial assets 209 151
Auditors’ report
IFRS 3.B64(p)(ii) Remeasurement to fair value of pre-existing interest in an

acquiree 34(D) 250 -
Dividend income:
IFRS 7.11A(d) – Equity securities – at FVOCI – investments held at the
reporting date 25 26 32
IFRS 7.20(a)(viii) Corporate debt securities – at FVOCI:
– Gain on derecognition reclassified from OCI 64 -
IFRS 7.20(a)(i) Financial assets at FVTPL – net change in fair value:
– Mandatorily measured at FVTPL – held for trading 74 -
– Mandatorily measured at FVTPL – other 508 264
Finance income – other 922 296
IAS 1.82(ba) Finance costs – impairment loss on debt securities (net of
Primary statements
reversals) 32(C)(ii) (59) (13)

b
IFRS 7.20(b), 7.IG13 Financial liabilities not measured at FVTPL – interest expense (1,523) (1,299)
IAS 21.52(a) Net foreign exchange loss (186) (250)
IFRS 7.24C(b) Cash flow hedges – reclassified from OCI including costs of
hedging reserve 32(C)(iv) 17 12
IAS 37.84(e) Unwind of discount on site restoration provision 31 (60) (50)
IFRS 7.20(a)(i) Change in fair value of contingent consideration 32(B)(iii) (20) -
IFRS 7.24C(b)(ii) Cash flow hedges – ineffective portion of changes in fair value (51) (16)
IFRS 7.24C(b)(ii) Net investment hedge – ineffective portion of changes in fair value (1) -
IFRS 7.20(a)(i) Financial assets at FVTPL – net change in fair value:
– Mandatorily measured at FVTPL – held for trading - (19)
Finance costs – other (1,824) (1,622)
Net finance costs recognised in profit or loss (752) (1,188)
NOTES
Appendices
IFRS 7.20(b), a. Under IFRS 7 an entity is required to disclose the total interest income (calculated using the effective interest
IAS 1.97 method) for financial assets that are measured at amortised cost or at FVOCI – showing these amounts separately.
IAS 32.40, b. The Group has grouped interest on lease liabilities and dividends classified as an expense with interest on other
IFRS 7.IG13 financial liabilities. Alternatively, they may be presented as a separate item. If there are differences between interest
and dividends with respect to matters such as tax deductibility, then it is desirable to disclose them separately.
Introduction
11. Earnings per share
A. Basic earnings per share
The calculation of basic EPS has been based on the following profit attributable to ordinary
shareholders and weighted-average number of ordinary shares outstanding.
IAS 33.70(a) i. Profit (loss) attributable to ordinary shareholders (basic)

2021 2020
Continuing Discontinued
Continuing Discontinued operations operation Total
In thousands of euro Note operations operation Total (restated)* (restated)* (restated)*
Profit (loss) for the
Auditors’ report
year, attributable to
the owners of the
Company 6,676 379 7,055 6,045 (422) 5,623
Dividends on non-
redeemable
preference shares 26(C) (438) - (438) (438) - (438)
Profit (loss) attributable
to ordinary
shareholders 6,238 379 6,617 5,607 (422) 5,185
* See Notes 7 and 44.
IAS 33.70(b) ii. Weighted-average number of ordinary shares (basic)
Primary statements
In thousands of shares Note 2021 2020
Issued ordinary shares at 1 January 26(A)(i) 3,100 3,100

Effect of treasury shares held 26(B)(vii) (49) (40)
Effect of share options exercised 26(A)(i) 3 -
Effect of shares issued related to a business combination 26(A)(i) 6 -
Effect of shares issued in October 2021 26(A)(i) 23 -
Weighted-average number of ordinary shares at
31 December 3,083 3,060
B. Diluted earnings per share

The calculation of diluted EPS has been based on the following profit attributable to ordinary
shareholders and weighted-average number of ordinary shares outstanding after adjustment for
the effects of all dilutive potential ordinary shares.
IAS 33.70(a) i. Profit (loss) attributable to ordinary shareholders (diluted) NOTES

2021 2020
Continuing Discontinued
Continuing Discontinued operations operation Total
In thousands of euro Note operations operation Total (restated)* (restated)* (restated)*

to ordinary
shareholders (basic) 6,238 379 6,617 5,607 (422) 5,185
Interest expense on
convertible notes, net
of tax 28(C) 61 - 61 - - -
to ordinary
Appendices
shareholders
(diluted) 6,299 379 6,678 5,607 (422) 5,185
* Sees Notes 7 and 44.

Introduction
11. Earnings per share (continued)

B. Diluted earnings per share (continued)
IAS 33.70(b) ii. Weighted-average number of ordinary shares (diluted)
In thousands of shares Note 2021 2020
Weighted-average number of ordinary shares (basic) 3,083 3,060

Effect of conversion of convertible notes 28(C) 148 -
Effect of share options on issue 47 18
Weighted-average number of ordinary shares (diluted) at
31 December 3,278 3,078
Auditors’ report
IAS 33.70(c) At 31 December 2021, 135,000 options (2020: 44,000) were excluded from the diluted weighted-
average number of ordinary shares calculation because their effect would have been anti-dilutive.
The average market value of the Company’s shares for the purpose of calculating the dilutive
effect of share options was based on quoted market prices for the year during which the options
were outstanding.a
Primary statements
NOTES
Appendices
Insights a. In our view, the method used to determine the average market price for ordinary shares should be disclosed in the
5.3.270.80 notes.
Employee benefits
Introduction
12. Share-based payment arrangements
See accounting policy in Note 45(E)(ii).
IFRS 2.44–45(a), 50 A. Description of share-based payment arrangements

At 31 December 2021, the Group had the following share-based payment arrangements.
i. Share option programmes (equity-settled)

On 1 January 2017 and 1 January 2020, the Group established share option programmes that
entitle key management personnel to purchase shares in the Company. On 1 January 2021, a
further grant on similar terms was offered to key management personnel and senior employees.
Under these programmes, holders of vested options are entitled to purchase shares at the market
Auditors’ report
price of the shares at grant date. Currently, these programmes are limited to key management
personnel and other senior employees.
The key terms and conditions related to the grants under these programmes are as follows; all
options are to be settled by the physical delivery of shares.
Number of
instruments Contractual
Grant date/employees entitled in thousands Vesting conditions life of options
Options granted to key

management personnel
On 1 January 2017 400 3 years’ service from grant date 7 years
and 5% increase in operating
Primary statements
income in each of the 3 years
On 1 January 2020 200 Same as above 10 years
On 1 January 2021 225 Same as above 10 years
Options granted to senior
employees
On 1 January 2021 100 3 years’ service from grant date 10 years
Total share options 925
ii. Replacement awards (equity-settled)

In connection with the acquisition of Papyrus, the Group exchanged equity-settled share-based
payment awards held by employees of Papyrus for 150,000 equity-settled share-based payment
awards of the Company with a contractual life of nine years from the vesting date (see Note 34(A)(ii)).
iii. Share purchase plan (equity-settled)

On 1 January 2021, the Group offered 26 of its employees the opportunity to participate in an
employee share purchase plan. To participate in the plan, the employees are required to save an NOTES
amount of 5% of their gross monthly salary, up to a maximum of €300 per month, for a period of
36 months. Under the terms of the plan, at the end of the 36-month period the employees are
entitled to purchase shares using funds saved at a price of 20% below the market price at grant
date. Only employees that remain in service and save the required amount of their gross monthly
salary for 36 consecutive months will become entitled to purchase the shares. Employees who
cease their employment, do not save the required amount of their gross monthly salary in any
month before the 36-month period expires, or elect not to exercise their options to purchase shares
will be refunded their saved amounts.
iv. Share appreciation rights (cash-settled)

On 1 January 2016 and 1 January 2021, the Group granted 100,000 and 300,000 share appreciation
rights (SARs), respectively, to employees that entitle them to a cash payment after three years of
Appendices
service. The SARs expire at the end of a five-year period after grant date. The amount of the cash
payment is determined based on the increase in the share price of the Company between grant
date and the time of exercise.

Introduction
12. Share-based payment arrangements (continued)

A. Description of share-based payment arrangements (continued)
iv. Share appreciation rights (cash-settled) (continued)
Details of the liabilities arising from the SARs were as follows.
IFRS 2.51(b)(i) Total carrying amount of liabilities for SARs 13 440 380
IFRS 2.51(b)(ii) Total intrinsic value of liabilities for vested benefits - 380
The liabilities at 31 December 2020 were settled during 2021.

Auditors’ report
B. Measurement of fair values

i. Equity-settled share-based payment arrangements
IFRS 2.46, 47(a)(i), (iii) The fair value of the employee share purchase plan (see (A)(iii)) has been measured using a
Monte Carlo simulation. The fair value of the employee share options (see (A)(i) and (A)(ii)) has
been measured using the Black-Scholes formula. Service and non-market performance conditions
attached to the arrangements were not taken into account in measuring fair value.
IFRS 2.47(a)(iii) The requirement that the employee has to save in order to purchase shares under the share
purchase plan has been incorporated into the fair value at grant date by applying a discount to
the valuation obtained. The discount has been determined by estimating the probability that the
employee will stop saving based on historical behaviour.
The inputs used in the measurement of the fair values at grant date of the equity-settled share-
Primary statements
based payment plans were as follows.

Share option programmes
Key management Senior Replacement Share purchase

personnel employees awards plan
(see (A)(i)) (see (A)(i)) (see (A)(ii)) (see (A)(iii))
2021 2020 2021 2021 2021
IFRS 2.47(a)(i) Fair value at grant date €3.54 €3.75 €3.14 €3.81 €4.02
Share price at grant date €10.10 €10.50 €10.10 €10.30 €10.10
Exercise price €10.10 €10.50 €10.10 €10.30 €8.08
Expected volatility
(weighted‑average) 40.1% 40.9% 40.1% 42.4% 43.3%
Expected life (weighted‑average) 8.6 years 8.8 years 5.4 years 5.9 years 3.0 years
Expected dividends 3.2% 3.2% 3.2% 3.2% N/A
Risk-free interest rate (based on
NOTES
government bonds) 3.9% 3.8% 3.8% 3.9% 3.9%

IFRS 2.47(a)(ii) Expected volatility has been based on an evaluation of the historical volatility of the Company’s
share price, particularly over the historical period commensurate with the expected term. The
expected term of the instruments has been based on historical experience and general option
holder behaviour.
At 31 December 2021, a total amount of €78 thousand was invested by the participants in the
share purchase plan (see Note 41(B)(i)) and has been included in ‘other trade payables’ (see
Note 29).
Appendices
Employee benefits
Introduction
12. Share-based payment arrangements (continued)
B. Measurement of fair values (continued)
IFRS 2.33A ii. Cash-settled share-based payment arrangementa
The fair value of the SARs (see (A)(iv)) has been measured using the Black-Scholes formula.
Service and non-market performance conditions attached to the arrangements were not taken into
account in measuring fair value.
The inputs used in the measurement of the fair values at grant date and measurement date of the
SARs were as follows.
Measurement
Auditors’ report
Grant date date
1 January 31 December
2021 2021
IFRS 2.52 Fair value €2.82 €4.40

Share price €10.10 €12.70
Exercise price €10.10 €10.10
Expected volatility (weighted-average) 43.3% 43.1%
Expected life (weighted-average) 4.0 years 2.8 years
Expected dividends 3.2% 3.3%
Risk-free interest rate (based on government bonds) 4.4% 4.5%
Expected volatility has been based on an evaluation of the historical volatility of the Company’s
share price, particularly over the historical period commensurate with the expected term. The
Primary statements
expected term of the instruments has been based on historical experience and general option
holder behaviour.
C. Reconciliation of outstanding share options

IFRS 2.45(b) The number and weighted-average exercise prices of share options under the share option
programmes (see (A)(i)) and replacement awards (see (A)(ii)) were as follows.
2021 2020
Weighted- Weighted-
Number of average Number of average
In thousands of options options exercise price options exercise price
IFRS 2.45(b)(i) Outstanding at 1 January 550 €10.18 400 €10.00

IFRS 2.45(b)(iii) Forfeited during the year (50) €10.00 (50) €10.00
IFRS 2.45(b)(iv) Exercised during the year (5) €10.00 - -
IFRS 2.45(b)(ii) Granted during the year 475 €10.16 200 €10.50
IFRS 2.45(b)(vi) Outstanding at 31 December 970 €10.18 550 €10.18 NOTES
IFRS 2.45(b)(vii) Exercisable at 31 December 295 €10.00 350 €10.00
IFRS 2.45(d) The options outstanding at 31 December 2021 had an exercise price in the range of €8.08 to
€10.50 (2020: €10.00 to €10.50) and a weighted-average contractual life of 6.4 years (2020:
5.2 years).
IFRS 2.45(c) The weighted-average share price at the date of exercise for share options exercised in 2021 was
€10.00 (2020: no options exercised).
D. Expense recognised in profit or loss

For details of the related employee benefit expenses, see Note 13(E).
Appendices
Insights a. Although it is not specifically required by IFRS 2, the Group has disclosed information about the fair value
4.5.1000.10 measurement of its SARs. In our view, these disclosures should be provided for cash-settled share-based payments.
For awards granted during the period, disclosures about fair value measurement at grant date and at the reporting
date should be given; for awards granted in previous periods but unexercised at the reporting date, disclosures
about fair value measurement at the reporting date should be given.

Introduction
13. Employee benefits

See accounting policies in Note 45(E).
Net defined benefit asset (671) (731)

Total employee benefit asset (671) (731)
Net defined benefit liability 285 280
Liability for social security contributions 8 5
Liability for long-service leave 199 176
IFRS 2.51(b)(i) Cash-settled share-based payment liability 12 440 380
Auditors’ report
Total employee benefit liabilities 932 841

Non-current 912 453
Currenta 20 388
932 841
For details on the related employee benefit expenses, see (E).

IAS 19.139(a) The Group contributes to the following post-employment defined benefit plans in [Countries X
and Y].
– Plan A entitles a retired employee to receive an annual pension payment. Directors and
executive officers (see Note 41(B)(i) retire at age 60 and are entitled to receive annual payments
equal to 70% of their final salary until the age of 65, at which time their entitlement falls to 50%
Primary statements
of their final salary. Other retired employees are entitled to receive annual payments equal to
1/60 of final salary for each year of service that the employee provided.
– Plan B reimburses certain medical costs for retired employees.
The defined benefit plans are administered by a single pension fund that is legally separated
from the Group. The board of the pension fund comprises three employee and two employer
representatives and an independent chair. The board of the pension fund is required by law to act
in the best interests of the plan participants and is responsible for setting certain policies (e.g.
investment, contribution and indexation policies) of the fund.
IAS 19.139(b) These defined benefit plans expose the Group to actuarial risks, such as longevity risk, currency
risk, interest rate risk and market (investment) risk.
A. Funding
IAS 19.147(a) Plan A is fully funded by the Group’s subsidiaries, except for the obligation for directors and
executive officers, which is funded by the Company. The funding requirements are based on
the pension fund’s actuarial measurement framework set out in the funding policies of the plan.
NOTES
The funding of Plan A is based on a separate actuarial valuation for funding purposes for which
the assumptions may differ from the assumptions set out in (D). Employees are not required to
contribute to the plans. Plan B is unfunded.
The Group has determined that, in accordance with the terms and conditions of the defined
benefit plans, and in accordance with statutory requirements (including minimum funding
requirements for Plan A) for the plans of the respective jurisdictions, the present value of refunds
or reductions in future contributions is not lower than the balance of the total fair value of the plan
assets less the total present value of obligations. This determination has been made on a plan-
by-plan basis. As such, no decrease in the defined benefit asset was necessary at 31 December
2021 or 31 December 2020.
IAS 19.147(b) The Group expects to pay €350 thousand in contributions to its defined benefit plans in 2022.
Appendices
IAS 1.69, 19.133 a. Although it is not required to distinguish the current and non-current portions of assets and liabilities arising from
post-employment benefits, the Group distinguishes between the current and non-current portions of obligations
arising from long-term employee benefits if it does not have an unconditional right to defer settlement of the liability
at least 12 months from the reporting date.
Employee benefits
Introduction
13. Employee benefits (continued)
B. Movement in net defined benefit (asset) liability
The following table shows a reconciliation from the opening balances to the closing balances for
the net defined benefit (asset) liability and its components.a
Defined benefit Net defined benefit
obligation Fair value of plan assets (asset) liability
In thousands of euro 2021 2020 2021 2020 2021 2020
IAS 19.140 Balance at 1 January 7,057 6,718 (7,508) (7,162) (451) (444)
b
Included in profit or loss
Auditors’ report
IAS 19.141(a) Current service cost 497 456 - - 497 456
IAS 19.141(d) Past service credit (100) - - - (100) -
IAS 19.141(b) Interest cost (income) 360 322 (383) (344) (23) (22)
757 778 (383) (344) 374 434
b
Included in OCI
IAS 19.141(c) Remeasurement loss (gain):
– Actuarial loss (gain) arising from:
IAS 19.141(c)(ii) - demographic assumptions (31) 4 - - (31) 4
IAS 19.141(c)(iii) - financial assumptions (21) 8 - - (21) 8
- experience adjustment (30) 6 - - (30) 6
IAS 19.141(c)(i) – Return on plan assets
excluding interest income - - 10 (3) 10 (3)
Primary statements
IAS 19.141(e) Effect of movements in exchange
ratesc 21 (1) 76 (1) 97 (2)
(61) 17 86 (4) 25 13
Other
IAS 19.141(f) Contributions paid by the employer - - (325) (403) (325) (403)
IAS 19.141(g) Benefits paid (433) (456) 424 405 (9) (51)
(433) (456) 99 2 (334) (454)
IAS 19.140 Balance at 31 December 7,320 7,057 (7,706) (7,508) (386) (451)
Represented by:
Net defined benefit asset (Plan A) (671) (731)

Net defined benefit liability (Plan B) 285 280
(386) (451) NOTES
IAS 19.139(c) During 2021, the pension arrangements for a number of employees in [Country X] were adjusted
to reflect new legal requirements in that country regarding the retirement age. As a result of the
plan amendment, the Group’s defined benefit obligation decreased by €100 thousand (2020: nil). A
corresponding past service credit was recognised in profit or loss during 2021.
IAS 19.138 a. The Group has more than one defined benefit plan and has generally provided aggregated disclosures in respect of
these plans, on the basis that they are not exposed to materially different risks. Further disaggregation of some or all
of the disclosures – e.g. by geographic locations or by different characteristics – would be required if this were not
the case.
b. Although it is not specifically required by IAS 19 Employee Benefits, the Group has disclosed the subtotals of items
recognised in profit or loss and OCI. This disclosure is provided for illustrative purposes only.
Appendices
IAS 21.39, c. A net obligation under a defined benefit plan may be denominated in a foreign currency from the point of view
Insights 4.4.1010 of the sponsor’s financial statements. In our view, in that case the net defined benefit liability (asset) should first
be calculated in the currency in which it is denominated, and the resulting net amount should then be translated
into the sponsor’s functional currency. As a result, the foreign exchange gain or loss arising on translation will be
recognised together with other foreign exchange gains and losses, rather than as part of the IAS 19 remeasurement.
This is different from the situation illustrated above. In this case, the sponsor of the plan is a foreign subsidiary, and
therefore the translation difference is recognised in OCI in the usual way.

Introduction

C. Plan assets
IAS 19.142 Plan assets comprise the following.
IAS 19.142(b) Equity securities:

– Consumer markets 1,725 1,842
– Pharmaceuticals 602 555
– Oil and gas 218 239
– Telecoms 343 260
Auditors’ report
– Financial institutions 213 561

3,101 3,457
IAS 19.142(c) Government bonds 3,587 3,254
IAS 19.142(e) Derivatives:
– Interest rate swaps 29 37
– Forward foreign currency contracts 185 70
– Longevity swaps 97 39
311 146
IAS 19.143 Property occupied by the Group 525 497
IAS 19.143 Company’s own ordinary shares 182 154
7,706 7,508
Primary statements
IAS 19.142 All equity securities and government bonds have quoted prices in active markets. All government
bonds are issued by European governments and are rated AAA or AA, based on [Rating Agency Y]
ratings.
IAS 19.146 At each reporting date, an Asset-Liability Matching study is performed by the pension fund’s
asset manager, in which the consequences of the strategic investment policies are analysed. The
strategic investment policy of the pension fund can be summarised as follows:
– a strategic asset mix comprising 40–50% equity securities, 40–50% government bonds and
0–15% other investments;
– interest rate risk is managed with the objective of reducing the cash flow interest rate risk by
40% through the use of debt instruments (government bonds) and interest rate swaps;
– currency risk is managed with the objective of reducing the risk by 30% through the use of
forward foreign currency contracts; and
– longevity risk is managed with the objective of reducing the risk by 25% through the use of
NOTES
longevity swaps.
Appendices
Employee benefits
Introduction
D. Defined benefit obligation
IAS 1.125, 19.144 i. Actuarial assumptions
The following were the principal actuarial assumptions at the reporting date (expressed as
weighted averages).
2021 2020
Discount rate 5.1% 4.8%

Future salary growth 2.5% 2.5%
Future pension growth 3.0% 2.0%
Auditors’ report
Medical cost trend rate 4.5% 4.0%
IAS 19.144 Assumptions regarding future longevity have been based on published statistics and mortality
tables. The current longevities underlying the values of the defined benefit obligation at the
reporting date were as follows.
2021 2020
Plan A Plan B Plan A Plan B
Longevity at age 65 for current pensioners

Males 18.5 18.2 18.3 18.0
Females 21.0 19.0 21.0 18.8
Longevity at age 65 for current members
aged 45
Primary statements
Males 19.2 19.0 19.0 18.7
Females 22.9 20.5 22.9 20.0
IAS 19.147(c) At 31 December 2021, the weighted-average duration of the defined benefit obligation was
17.5 years (2020: 17.1 years).
ii. Sensitivity analysis

IAS 1.125, 129, 19.145 Reasonably possible changes at the reporting date to one of the relevant actuarial assumptions,
holding other assumptions constant, would have affected the defined benefit obligation by the
amounts shown below.
31 December 2021 31 December 2020
Effect in thousands of euro Increase Decrease Increase Decrease
Discount rate (1% movement) (338) 354 (335) 350

Future salary growth (1% movement) 187 (176) 180 (172)
Future pension growth (1% movement) 181 (173) 175 (168) NOTES
Medical cost trend rate (1% movement) 389 (257) 380 (250)
Future mortality (1% movement) (73) 69 (70) 67
Although the analysis does not take account of the full distribution of cash flows expected under
the plan, it does provide an approximation of the sensitivity of the assumptions shown.
Appendices

Introduction

E. Employee benefit expenses
Wages and salaries 18,286 16,229

Social security contributions 1,468 1,267
IAS 19.53 Contributions to defined contribution plans 455 419
Termination benefits 31(B) 350 450
Expenses related to post-employment defined benefit plans 13(B) 374 434
Expenses related to long-service leave 26 12
Equity-settled share-based payments 755 248
Auditors’ report
IFRS 2.51(a) 12
IFRS 2.51(a) Cash-settled share-based paymentsa 12 440 380
9(C) 22,154 19,439
Primary statements
NOTES
Appendices
IFRS 2.IG19, a. The Group has included the remeasurement of the liability in relation to its cash-settled share-based payment
BC252–BC255, arrangement in ‘employee benefit expenses’. Alternatively, in our view an entity may include the amount in ‘finance
Insights 4.5.970.20 income’ or ‘finance costs’.
Income taxes
Introduction
14. Income taxesa
See accounting policy in Note 45(I).
A. Amounts recognised in profit or lossb
2021 2020
Current tax expense

IAS 12.80(a) Current year 3,063 3,594
IAS 12.80(b) Changes in estimates related to prior years 116 (34)
3,179 3,560
Auditors’ report
Deferred tax expense
IAS 12.80(c) Origination and reversal of temporary differences 77 (865)
IAS 12.80(d) Reduction in tax rate (15) (5)
IAS 12.80(f) Recognition of previously unrecognised tax losses (see Note 14(H)) (50) (240)
IAS 12.80(f)–(g) Recognition of previously unrecognised (derecognition of
previously recognised) deductible temporary differences (13) 10
(1) (1,100)
Tax expense on continuing operations 3,178 2,460
IAS 12.81(h)(i)–(ii) ‘Tax expense on continuing operations’ excludes the Group’s share of the tax expense of equity-
accounted investeesc of €492 thousand (2020: €261 thousand), which has been included in ‘share
Primary statements
of profit of equity-accounted investees, net of tax’. The amount also excludes the tax income from
the discontinued operation of €25 thousand (2020: €44 thousand) and the tax expense on the
gain on sale of the discontinued operation of €330 thousand (2020: nil); both of these have been
included in ‘profit (loss) from discontinued operation, net of tax’ (see Note 7).
IAS 10.22(h), 12.81(d), In December 2021, a new corporate tax law was enacted in France. Consequently, as of 1 July
88
2022, the corporate tax rate in France will be reduced from 30 to 29%. This change resulted in a
gain of €15 thousand related to the remeasurement of deferred tax assets and liabilities of the
Group’s French subsidiary, Baguette S.A., being recognised during the year ended 31 December
2021. In addition, on 23 March 2022, an increase in the corporate tax rate in the Netherlands from
25 to 30% was substantively enacted, effective from 1 January 2023. This increase does not affect
the amounts of current or deferred income taxes recognised at 31 December 2021. However, this
change will increase the Group’s future current tax charge accordingly. If the new tax rate were
applied to calculate taxable temporary differences and tax losses recognised as at 31 December
2021, then the net deferred tax assets would increase by €27 thousand.
IAS 12.81(d) In December 2020, numerous changes to the tax law were enacted in Denmark, including a NOTES
decrease in the corporate tax rate from 35 to 21%. This change resulted in a gain of €5 thousand
related to the remeasurement of deferred tax assets and liabilities of the Group’s consolidated
Danish entity, Mermaid A/S, being recognised during the year ended 31 December 2020.
a. The changes in tax laws and the tax rates disclosed or applied throughout this guide to calculate the tax impact
amounts are for illustrative purposes only and do not reflect actual changes in tax laws or corporate tax rates in the
respective jurisdictions. In practice, the applicable changes in tax laws need to be considered and tax rates of the
respective entities need to be used. All tax impacts in this guide are calculated using the tax rate of 33%.
Appendices
Insights b. The Group has allocated the entire amount of current income tax related to cash contributions to funded post-
3.13.580.20–80 employment benefit plans to profit or loss because the cash contributions relate primarily to service costs. In our
view, the allocation of the current income tax effect to profit or loss and OCI should reflect the nature of the cash
contribution, unless it is impracticable to identify whether the cost to which the funding relates affects profit or loss or
OCI. We believe that a number of allocation approaches are acceptable if the nature of the cash contribution is unclear.
c. Although it is not specifically required, the Group has disclosed the share of tax of equity-accounted investees. This
disclosure is provided for illustrative purposes only.

Introduction
14. Income taxes (continued)

B. Amounts recognised in OCI
2021 2020
Restated
Tax Tax
Before (expense) Net of Before (expense) Net of
IAS 1.90–91, 12.81(ab) In thousands of euro tax benefit tax tax benefit tax
Items that will not be

reclassified to profit or loss
Revaluation of property, plant
and equipment 200 (66) 134 - - -
Auditors’ report
Remeasurements of defined
benefit liability (asset) 72 (24) 48 (15) 5 (10)
Equity investments at FVOCI –
net change in fair value 141 (47) 94 59 (19) 40
Equity-accounted investees –
share of OCI 15 - 15 (3) - (3)
428 (137) 291 41 (14) 27
Items that are or may be
reclassified subsequently
to profit or loss
Foreign operations – foreign
currency translation differences 679 - 679 471 - 471
Primary statements
Net investment hedge (3) - (3) (8) - (8)

Cash flow hedges reserve:
– Effective portion of changes
in fair value (62) 21 (41) 95 (30) 65
– Net amount reclassified to
profit or loss (31) 10 (21) (12) 4 (8)
Cost of hedging reserve:
– Net change in fair value 34 (12) 22 10 (3) 7
profit or loss 8 (3) 5 2 - 2
Debt investments at FVOCI:
– Net change in fair value 54 (18) 36 60 (19) 41
profit or loss (64) 21 (43) - - -
Reclassification of foreign
NOTES
currency differences on loss

of significant influence (20) - (20) - - -
Equity-accounted investees –
share of OCI (172) - (172) (166) - (166)
423 19 442 452 (48) 404
851 (118) 733 493 (62) 431
Appendices
Income taxes
Introduction
C. Amounts recognised directly in equity
2021 2020
In thousands of euro Before tax Tax Net of tax Before tax Tax Net of tax
IAS 12.81(a) Convertible notes 163 (54) 109 - - -

IAS 12.81(a) Share-based payments - - - - 2 2
For amounts recognised directly in equity relating to correction of an error – see Note 44.
D. Reconciliation of effective tax ratea, b
Auditors’ report
2021 2021 2020 2020
In thousands of euro Restated Restated*
IAS 12.81(c) Profit before tax from continuing operations 10,351 8,856
Tax using the Company’s domestic tax rate 33.00% 3,416 33.00% 2,922
Effect of tax rates in foreign jurisdictions (0.71%) (73) (0.55%) (49)
Reduction in tax rate (0.14%) (15) (0.06%) (5)
Tax effect of:
– Share of profit of equity-accounted investees
reported, net of tax (3.64%) (377) (2.19%) (194)
– Non-deductible expenses 2.37% 245 0.41% 36
– Tax-exempt income (0.23%) (24) (0.56%) (50)
– Tax incentives (0.85%) (88) (0.71%) (63)
Primary statements
– Current-year losses for which no deferred tax
asset is recognised 0.40% 41 1.43% 127
Recognition of previously unrecognised tax losses
(see Note 14(H)) (0.48%) (50) (2.71%) (240)
Recognition of previously unrecognised
(derecognition of previously recognised)
deductible temporary differences (0.13%) (13) 0.11% 10
Changes in estimates related to prior years 1.12% 116 (0.38%) (34)
30.70% 3,178 27.78% 2,460
NOTES
IAS 12.85 a. The Group’s reconciliation of the effective tax rate is based on its domestic tax rate, with a reconciling item in
Appendices
respect of tax rates applied by Group companies in other jurisdictions. The reconciliation of the effective tax
rate is based on an applicable tax rate that provides the most meaningful information to users. In some cases,
it might be more meaningful to aggregate separate reconciliations prepared using the domestic tax rate in each
individual jurisdiction.
IAS 12.81(c) b. Rather than presenting either a numerical reconciliation between total tax expense and the product of accounting
profit multiplied by the applicable tax rates, or a numerical reconciliation between the average effective tax rate and
the applicable tax rate, the Group has elected to present both.

Introduction

IAS 12.81(g)(i)–(ii) E. Movement in deferred tax balancesa, b, c
Recognised in
2021 Net balance at profit or loss
In thousands of euro 1 January (see (A))
Property, plant and equipment 448 (125)

Leasesd 132 54
Intangible assets 56 4
Biological assets (22) (182)
Auditors’ report
Investment property (30) (7)

Investment in securities (56) (7)
Trade and other receivables, including contract assets 53 17
Derivatives (39) (5)
Inventories 64 96
Loans and borrowings - -
Employee benefits (91) 21
Equity-settled share-based payments 225 88
Provisions 508 (13)
Deferred income 54 (15)
Other items 14 25
Tax losses carried forward 386 50
Tax assets (liabilities) before set-off 1,702 1
Set-off of tax
Primary statements
Net tax assets (liabilities)
Recognised in
profit or loss
2020 Net balance at (see (A))
In thousands of euro 1 January Restated*
Property, plant and equipment 89 359

Leases 125 7
Intangible assets (38) 94
Biological assets (25) 3
Investment property (10) (20)
Investment in securities (18) 1
Trade and other receivables, including contract assets - 53
Derivatives (12) 1
Inventories 8 56
Employee benefits (90) (6)
NOTES
Equity-settled share-based paymentse 141 82

Provisions 290 218
Deferred income 46 8
Other items 10 4
Tax losses carried forward 146 240
Tax assets (liabilities) before set-off 662 1,100
Set-off of tax
Net tax assets (liabilities)
* See Note 44.
IAS 12.81(g), a. IAS 12 Income Taxes requires disclosure of the amount of recognised deferred tax assets and liabilities in respect
Insights of each type of temporary difference. The Standards are unclear on what constitutes a ‘type’, and the Group has
3.13.640.60 provided the disclosures based on the classes of assets and liabilities related to the temporary differences. Another
Appendices
possible interpretation is to present disclosures based on the reason for the temporary difference – e.g. depreciation.
Insights b. In our view, it is not appropriate to disclose the tax effects of both recognised and unrecognised deferred tax assets
3.13.640.70 as a single amount – e.g. similar to the ‘gross’ approach under US GAAP – because under IFRS Standards it is
recognised deferred tax assets that are required to be disclosed.
Insights 3.13.300 c. The Group does not plan to dispose of its investments in associates in the foreseeable future, and therefore has
measured deferred tax relating to these investments using the tax rates applicable to dividends, which are zero
because such dividends are tax-exempt. As a result, no deferred tax has been recognised.
Income taxes
Introduction
Balance at 31 December
Acquired
Recognised Recognised directly in business Other
in OCI in equity combinations (see Notes 7(C) Deferred tax
(see (B)) (see (C)) (see Note 34(C)) and 20(B)) Net Deferred tax assets liabilities
(66) - (35) 210 432 553 (121)

- - - - 186 186 -
- - (38) - 22 98 (76)
- - - - (204) - (204)
Auditors’ report
- - - - (37) - (37)
(44) - - - (107) 32 (139)
- - - - 70 70 -
16 - - - (28) 3 (31)
- - (3) 40 197 197 -
- (54) (9) - (63) - (63)
(24) - - - (94) 160 (254)
- - - - 313 313 -
- - 6 - 501 501 -
- - - - 39 39 -
- - - - 39 50 (11)
- - - - 436 436 -
(118) (54) (79) 250 1,702 2,638 (936)
- (387) 387
Primary statements
1,702 2,251 (549)
Balance at 31 December
Acquired
Recognised Recognised directly in business Other
in OCI in equity combinations (see Notes 7(C) Deferred tax
(see (B)) (see (C)) (see Note 34(C)) and 20(B)) Net Deferred tax assets liabilities
- - - - 448 531 (83)

- - - - 132 132 -
- - - - 56 94 (38)
- - - - (22) - (22)
- - - - (30) - (30)
(38) - - - (55) 16 (71)
- - - - 53 53 -
(29) - - - (40) 3 (43)
- - - - 64 64 -
5 - - - (91) 150 (241) NOTES
- 2 - - 225 225 -
- - - - 508 508 -
- - - - 54 54 -
- - - - 14 18 (4)
- - - - 386 386 -
(62) 2 - - 1,702 2,234 (532)
- (126) 126
1,702 2,108 (406)
Appendices
IAS 12.15, d. The Group accounts for deferred tax on leases applying the ‘integrally linked’ approach. The Group has disclosed
24, Insights the amount of recognised deferred tax in respect of leases. For further discussion of the accounting policy, see
3.13.230.25–30 Note 45(I)(ii); for a discussion of forthcoming requirements arising from Deferred Tax related to Assets and Liabilities
arising from a Single Transaction (Amendments to IAS 12), see Note 46(B).
IAS 12.68C e. When the amount of the tax deduction (or estimated future tax deduction) exceeds the amount of the related
cumulative share-based payment expense, the excess of the associated income tax is recognised directly in equity.
Any subsequent reduction in the excess is also recorded in equity.

Introduction

F. Unrecognised deferred tax liabilitiesa
IAS 12.81(f), 87 At 31 December 2021, there was a deferred tax liability of €1,523 thousand (2020: €1,146 thousand)
for temporary differences of €4,615 thousand (2020: €3,473 thousand) related to investments in
subsidiaries and the joint venture. However, this liability was not recognised because the Group
controls the dividend policy of its subsidiaries and is able to veto the payment of dividends of its joint
venture – i.e. the Group controls the timing of reversal of the related taxable temporary differences
and management is satisfied that they will not reverse in the foreseeable future.b
IAS 12.82A In some of the countries in which the Group operates, local tax laws provide that gains on
the disposal of certain assets are tax-exempt, provided that the gains are not distributed. At
Auditors’ report
31 December 2021, total tax-exempt reserves amounted to €613 thousand (2020: €540 thousand),
which would result in a tax liability of €202 thousand (2020: €178 thousand) if the subsidiaries paid
dividends from these reserves.
G. Unrecognised deferred tax assets

IAS 12.81(e) Deferred tax assets have not been recognised in respect of the following items, because it is not
probable that future taxable profit will be available against which the Group can use the benefits
therefrom.c
2021 2020
Gross Gross
In thousands of euro amount Tax effect amount Tax effect
Deductible temporary differences 161 53 200 66

Primary statements
Tax losses 644 213 672 222

805 266 872 288
H. Tax losses carried forward

IAS 12.81(e) Tax losses for which no deferred tax asset was recognised expire as follows.
In thousands of euro 2021 Expiry date 2020 Expiry date
Expire 644 2024–28 520 2024–25

Never expire - - 152 -
IAS 1.125, 129, 12.82 In 2021, one of the Group’s UK subsidiaries, Paper Pabus Co, successfully launched a new type of
paper and entered into a number of long-term supply contracts. As a result, management revised
its estimates of future taxable profits and the Group recognised the tax effect of €152 thousand of
previously unrecognised tax losses (tax impact: €50 thousand) because management considered
it probable that future taxable profits would be available against which such losses can be used.
NOTES
In 2020, the Group’s Danish subsidiary, Mermaid A/S, launched a new production line that
would allow it to reduce costs significantly going forward and improve profitability. As a result,
management revised its estimates of future taxable profits and the Group recognised the tax
effect of €727 thousand of previously unrecognised tax losses (tax impact: €240 thousand)
because management considered it probable that future taxable profits would be available against
which such losses can be used. In 2021, Mermaid A/S achieved its planned profitability; therefore,
management continues to consider it probable that future taxable profits would be available
against which the tax losses can be recovered and, therefore, the related deferred tax asset can
be realised.
IAS 12.81(f), 87 a. Although it is not required, in addition to the aggregate amount of temporary differences associated with
investments in subsidiaries, branches and associates and interests in joint arrangements for which deferred tax
Appendices
liabilities have not been recognised, the Group has also provided the encouraged disclosure of the amounts of
unrecognised deferred tax liabilities. This disclosure is provided for illustrative purposes only.
Insights b. In our view, the ability of a joint venturer to veto the payment of dividends is sufficient to demonstrate control for the
3.13.310.10 purpose of recognising deferred tax.
IAS 12.81(e) c. Although IAS 12 only requires the disclosure of the amount of deductible temporary differences and unused tax
losses for which no deferred tax asset has been recognised, the Group has also disclosed their respective tax
effects. This disclosure is for illustrative purposes only.
Income taxes
Introduction
H. Tax losses carried forward (continued)
In 2021, the Group’s Romanian subsidiary, Lei Sure Limited, incurred a tax loss of €124 thousand,
increasing cumulative tax losses to €644 thousand (2020: €520 thousand). Management has
determined that the recoverability of cumulative tax losses, which expire in 2024–28, is uncertain
due to surplus capacity/supply depressing paper prices in Romania. Based on the five‑year
business plan and taking into account the reversal of existing taxable temporary differences,
Lei Sure Limited is not expected to generate taxable profits until 2027. However, if paper prices
improve more quickly than forecast or new taxable temporary differences arise in the next financial
year, then additional deferred tax assets and a related income tax benefit of up to €213 thousand
Auditors’ report
could be recognised.
I. Uncertainty over income tax treatmentsa, b

IAS 1.122, 125, 129, From 2017 until 2020, the Group’s Canadian subsidiary Maple-leaf Inc benefited from a tax ruling
12.88
of the Canadian tax authorities allowing it to qualify for a reduced corporate tax rate. In 2021, there
was a change in the Canadian government. The new government is currently debating certain
tax rulings granted in the past, which include the tax ruling applied by the Group. If the tax ruling
applied in the past is retroactively revoked, then additional tax expenses for the period 2017–20 of
up to €53 thousand may be incurred. This amount has not been recognised in these consolidated
financial statements because the Group believes that the tax ruling granted in the past was in
compliance with the applicable law and, if revoked, the Group believes that it is probable that it
would successfully defend the Group’s tax treatment in court.
Of the Group’s current tax provision, €63 thousand (2020: nil) relates to management’s estimation
Primary statements
of the amount of tax payable by the Group’s German subsidiary Papier GmbH for the ongoing tax
review, which its tax authority opened in March 2021. The uncertain tax treatment relates to the
interpretation of how the tax legislation applies to the Group’s transfer pricing arrangements. Due
to the uncertainty involved, there is a possibility that the outcome of the tax review is significantly
different from the amount currently recognised. Although management has used a single best
estimate of the tax amount expected to be paid, it is anticipated that the reasonably possible
outcome of current tax liabilities sits within a range between €51 thousand and €72 thousand.
The Group believes that its accruals for tax liabilities are adequate for all open tax years based on
its assessment of many factors, including interpretations of tax law and prior experience.
NOTES
Appendices
a. Management of the Group analysed the specific facts and circumstances of the open tax review and determined
that it is necessary to provide information about assumptions and estimates related to the uncertain tax treatment
required by paragraph 125 of IAS 1.
b. The Group provided quantitative disclosure of the sensitivity of the amount of the uncertain tax treatment to
the method, assumptions and estimates underlying the calculation. Other approaches to the disclosure may be
acceptable to meet the requirements of paragraph 129 of IAS 1.

Introduction
15. Adjusted earnings before interest, tax, depreciation and

amortisation (adjusted EBITDA)a
Management has presented the performance measure adjusted EBITDA because it monitors
this performance measure at a consolidated level and it believes that this measure is relevant
to an understanding of the Group’s financial performance. Adjusted EBITDA is calculated by
adjusting profit from continuing operations to exclude the impact of taxation, net finance costs,
depreciation, amortisation, impairment losses/reversals related to goodwill, intangible assets,
property, plant and equipment and the remeasurement of disposal groups, and share of profit of
equity-accounted investees.
Adjusted EBITDA is not a defined performance measure in IFRS Standards. The Group’s definition
Auditors’ report
of adjusted EBITDA may not be comparable with similarly titled performance measures and
disclosures by other entities.
Reconciliation of adjusted EBITDA to profit from continuing operations

2021* 2020
Profit from continuing operations 7,173 6,396

Income tax expense 14 3,178 2,460
Profit before tax 10,351 8,856
Adjustments for:
– Net finance costs 10 752 1,188
– Depreciation 21(A) 5,339 5,122
Primary statements
– Amortisation 22(A) 785 795

– (Reversal of) impairment losses on property, plant and
equipment 21(B) (393) 1,123
– Impairment losses on goodwill 22(C) 116 -
– (Reversal of) impairment losses on intangible assets 22(C) (100) 285
– Impairment loss on remeasurement of disposal group 20(A) 35 -
– Share of profit of equity-accounted investees, net of tax 24 (1,141) (587)
Adjusted EBITDA 15,744 16,782
information has also been re‑presented due to a discontinued operation. See Note 7.
NOTES
IAS 1.85–85B, a. The Group has disclosed adjusted EBITDA because management believes that this measure is relevant to an
BC38G, understanding of the Group’s financial performance. This disclosure is provided for illustrative purposes only.
Insights 4.1.150
If an entity presents additional subtotals in the statement of financial position or statement of profit or loss and OCI,
then the subtotals:
– comprise line items made up of amounts recognised and measured in accordance with the Standards;
Appendices
– are presented and labelled in a manner that makes the line items that constitute the subtotal clear and
understandable;
– are consistent from period to period;
– are displayed with no more prominence than other subtotals and totals presented in the statement of financial
position or statement of profit or loss and OCI; and
– for the additional subtotals presented in the statement of profit or loss and OCI, are reconciled with the subtotals
and totals required by IAS 1.
Assets
Introduction
16. Biological assets
See accounting policies in Note 45(J).
A. Reconciliation of carrying amount
Standing
In thousands of euro Note timber Livestock Total
IAS 41.50, IFRS 13.93(e) Balance at 1 January 2020 3,240 196 3,436
IAS 41.50(b),
IFRS 13.93(e)(iii) Purchases 743 92 835
IAS 41.50(c),
IFRS 13.93(e)(iii) Sales of livestock - (63) (63)
Auditors’ report
IAS 41.50(d),
IFRS 13.93(e)(iii) Harvested timber transferred to inventories (293) - (293)
IAS 41.40, 50(a) Change in fair value less costs to sell:
IAS 41.51 – Due to price changes 9(A) (17) 22 5
IAS 41.51 – Due to physical changes 9(A) 15 8 23
IAS 41.50(f) Effect of movements in exchange rates 68 45 113
IAS 41.50 Balance at 31 December 2020 3,756 300 4,056
Non-current 3,756 269 4,025
Current - 31 31
3,756 300 4,056
IAS 41.50, IFRS 13.93(e) Balance at 1 January 2021 3,756 300 4,056
IAS 41.50(b),
Primary statements
IFRS 13.93(e)(iii) Purchases 294 11 305
IAS 41.50(c),
IFRS 13.93(e)(iii) Sales of livestock - (127) (127)
IAS 41.50(d),
IFRS 13.93(e)(iii) Harvested timber transferred to inventories (135) - (135)
IAS 41.40, 50(a) Change in fair value less costs to sell:
IAS 41.51 – Due to price changes 9(A) 92 59 151
IAS 41.51 – Due to physical changes 9(A) 315 121 436
IAS 41.50(f) Effect of movements in exchange rates 30 14 44
IAS 41.50 Balance at 31 December 2021 4,352 378 4,730
Non-current 4,352 346 4,698
Current - 32 32
4,352 378 4,730
NOTES
Appendices

Introduction
16. Biological assets (continued)

A. Reconciliation of carrying amount (continued)
IAS 41.41, 43, 46(b)(i) At 31 December 2021, standing timber comprised approximately 3,310 hectares of pine
tree plantations (2020: 3,230 hectares), which ranged from newly established plantations to
plantations that were 30 years old. €282 thousand (2020: €513 thousand) of the standing timber
was less than one year old and considered to be immature assets.a
IAS 41.41, 43, At 31 December 2021, livestock comprised 1,875 cattle and 3,781 sheep (2020: 1,260 cattle
46(b)(i)–(ii)
and 3,314 sheep). During 2021, the Group sold 289 cattle and 286 sheep (2020: 150 cattle and
175 sheep).a
Auditors’ report

i. Fair value hierarchy
IFRS 13.93(b) The fair value measurements for the standing timber have been categorised as Level 3 fair
values based on the inputs to the valuation techniques used. The fair value measurements of
livestock have been categorised as Level 2 fair values based on observable market sales data (see
Note 4(B)).
ii. Level 3 fair values
The following table shows a breakdown of the total gains (losses) recognised in respect of Level 3
fair values (standing timber).b
Gain included in ‘other income’

Primary statements
IFRS 13.93(e)(i)
Change in fair value (realised) 60 3
IFRS 13.93(f) Change in fair value (unrealised) 347 (5)
IFRS 13.93(e)(ii) Gain included in OCI
IFRS 13.93(e)(ii) Effect of movements in exchange rates 30 68
NOTES
Appendices
IAS 41.43 a. This is an example of encouraged disclosures providing a quantified description of each group of biological assets,
distinguishing between mature and immature biological assets (for standing timber), and the basis for making such
distinctions.
b. Because the Group classifies the entire category of standing timber as Level 3 in the fair value hierarchy, this table
illustrates only those disclosures that are incremental to the information in the reconciliation in Note 16(A).
Assets
Introduction
iii. Valuation techniques and significant unobservable inputs
IFRS 13.93(d), (h), 99 The following table shows the valuation techniques used in measuring Level 2 and Level 3 fair
values, as well as the significant unobservable inputs used.
Inter-relationship
between key
unobservable inputs and
Type Valuation technique Significant unobservable inputs fair value measurement
Standing timber
Auditors’ report
Standing timber Discounted cash flows: The – Estimated future timber market The estimated fair
older than valuation model considers prices per tonne (2021: €12.8– value would increase
25 years (the the present value of the 17.9, weighted average €16.25; (decrease) if:
age at which net cash flows expected 2020: €11.6–16.3, weighted – the estimated
it becomes to be generated by the average €15.15). timber prices per
marketable) plantation. The cash flow – Estimated yields per hectare tonne were higher
projections include specific (2021: 6–10, weighted average 8; (lower);
estimates for [X] years. The 2020: 5–10, weighted average 7.5). – the estimated
expected net cash flows are yields per hectare
discounted using a risk- – Estimated harvest and
transportation costs (2021: 6.4– were higher (lower);
adjusted discount rate.
8.3%, weighted average 7.5%; – the estimated
2020: 6.3–7.8%, weighted harvest and
average 6.7%). transportation costs
were lower (higher);
– Risk-adjusted discount rate (2021:
or
Primary statements
7.9–9.0%, weighted average
8.6%; 2020: 7.1–8.3%, weighted – the risk-adjusted
average 7.8%). discount rates were
lower (higher).
Younger Cost approach and – Estimated costs of infrastructure The estimated fair
standing timber discounted cash flows: per hectare (2021: €0.8–1.1, value would increase
The Group considers both weighted average €0.95; (decrease) if:
approaches, and reconciles 2020: €0.8–1.2, weighted – the estimated costs
and weighs the estimates average €0.97). of infrastructure,
under each approach based – Estimated costs of cultivation and cultivation and
on its assessment of the preparation per hectare (2021: preparation and
judgement that market €0.2–0.4, weighted average buying and planting
participants would apply. €0.3; 2020: €0.3–0.4, weighted trees were higher
The cost approach considers average €0.35). (lower);
the costs of creating a
– Estimated costs of buying and – the estimated
comparable plantation,
planting young trees (2021: €1.0– timber prices per
taking into account the costs
1.3, weighted average €1.25; 2020: tonne were higher
of infrastructure, cultivation
€1.1–1.3, weighted average €1.2). (lower);
and preparation, buying and NOTES
planting young trees with – Estimated future timber market – the estimated
an estimate of the profit prices per tonne (2021: €13.8– yields per hectare
that would apply to this 19.8, weighted average €17.05; were higher
activity. Discounted cash 2020: €13.7–19.5, weighted (lower); or
flows consider the present average €16.6). – the risk-adjusted
value of the net cash flows – Estimated yields per hectare discount rates were
expected to be generated (2021: 6–11, weighted average lower (higher).
by the plantation at maturity, 8.6; 2020: 7–11, weighted
the expected additional average 8.9).
biological transformation and
– Risk-adjusted discount rate (2021:
the risks associated with the
8.9–9.9%, weighted average
asset; the expected net cash
9.4%; 2020: 9.3–9.9%, weighted
flows are discounted using
average 9.6%).
risk-adjusted discount rates.
Livestock
Appendices
Livestock Market comparison Not applicable. Not applicable.

comprises cattle technique: The fair values are
and sheep, based on the market price
characterised as of livestock of similar age,
commercial or weight and market values.
breeders

Introduction

iii. Valuation techniques and significant unobservable inputs (continued)
The estimated yields per hectare of pine tree plantations are determined mainly based on the age
of the plantation, historical yields, the potential impact of extreme weather events and harvest
loss due to disease and pests. Historical yields of younger standing timber have been adjusted
downwards by 0.8% (2021: 0.78%) to reflect potential losses due to severe storms and high
winds and by 0.3% (2021: 0.26%) for all other factors. The risk of potential losses due to fire is
reflected in the cash flows by including the estimated cost of fire insurance.
IAS 1.31 The Group assessed the impact of climate change on the estimated yields per hectare for
Auditors’ report
younger standing timber. By considering the impact of higher temperatures (an increase of 2ºC
by 2050) on the growth rate of pine trees and on the intensity and frequency of storms, the Group
concluded that, overall, the positive effects (accelerated growth) and negative effects (increase
in the frequency of storms) would have an immaterial impact on yields. Due to the high degree
of estimation uncertainty around the impact of climate change on the intensity and frequency of
storms, this conclusion may change in the future.
IAS 1.125, 129 The fair value of younger timber reflects on average five days per year of intense high winds. Fair
value would decrease by 323 assuming 10 days per year of intense high windsa.
IAS 41.49(c) C. Risk management strategy related to agricultural activities
The Group is exposed to the following risks relating to its pine tree plantations. These risks and
management’s strategies to mitigate them are described below.
Primary statements
i. Regulatory and environmental risks

The Group is subject to environmental and other laws and regulations in various countries in
which it operates. The Group has established environmental policies and procedures aimed at
compliance with these laws.
ii. Supply and demand risk

The Group is exposed to risks arising from fluctuations in the price and sales volume of timber.
When possible, the Group manages this risk by aligning its harvest volume to market supply and
demand. Management performs regular industry trend analyses for projected harvest volumes
and pricing.
iii. Climate-related risks

The Group’s pine plantations are exposed to the risk of damage from extreme weather events
such as storms, high winds and drought. Changes in global climate conditions could intensify
one or more of these events. Periods of drought and associated high temperatures may increase
NOTES
the risk of forest fires and insect outbreaks. In addition to their effects on forest yields, extreme
weather events may also increase the cost of operations. The Group has extensive processes in
place aimed at monitoring and mitigating these risks through proactive management and early
detection. The Group has incorporated considerations for climate change into its reforestation
practices, such as the establishment and maintenance of fire breaks and increased monitoring
during fire danger periods.
Physical risks arising from fires and drought are to a great extent subject to risk transfer and
thereby within the cover of the Group’s property and business interruption insurance programmes.
However, should the frequency and severity of these events increase as a result of climate
change, the cost of such coverage may increase.
For information on the impact of extreme weather events and climate change on the valuation of
standing timber, see Note 16(B)(iii).
Appendices
a. The educational guidance Effects of climate-related matters on financial statements published by the Board
in November 2020 noted that IFRS 13 requires that unobservable inputs reflect the assumptions that market
participants would use when pricing, including assumptions about risk that may include climate-related risk.
Assets
Introduction
17. Inventories
See accounting policy in Notes 45(K) and 8(D).
IAS 1.78(c), 2.36(b) Raw materials and consumables 7,415 6,914

IAS 1.78(c), 2.36(b) Finished goods 4,200 4,705
Right to recover returned goodsa 533 500
Inventories 12,148 12,119
IAS 2.36(h) Carrying amount of inventories pledged as security for liabilities 1,650 2,090
IAS 1.98(a), 2.36(d) In 2021, inventories of €54,019 thousand (2020: €53,258 thousand) were recognised as an expense
Auditors’ report
during the year and included in ‘cost of sales’.
IAS 2.36(e)–(g) During 2020, due to regulatory restrictions imposed on the manufacture of a new product in the
Non-recycled Papers segment, the Group tested the related product line for impairment (see
Note 22(C)(ii)) and wrote down the related inventories to their net realisable value, which resulted
in a loss of €42 thousand. In 2021, following a change in estimates, €10 thousand of the write-
down was reversed.
In addition, inventories have been reduced by €345 thousand (2020: €125 thousand) as a result
of the write-down to net realisable value. This write-down was recognised as an expense
during 2021.
The write-downs and reversals are included in ‘cost of sales’.b
Primary statements
NOTES
Appendices
IFRS 15.B21, a. IFRS 15 and other standards do not specify where assets for rights to recover products from customers with
BC367 regards to sales with a right of return should be presented. The Group has included the assets in ‘inventories’ and
disclosed them separately in the note.
Insights b. In our view, for an entity that presents an analysis of expenses by function in the statement of profit or loss and OCI,
3.8.400.70 the write-down of inventories to net realisable value and any reversals should be included in ‘cost of sales’.

Introduction
18. Trade and other receivables

See accounting policies in Notes 45(P)(i)–(ii) and (S)(i).
IAS 1.78(b) Trade receivables due from related parties 41(C) 1,236 642
IAS 1.78(b) Other trade receivables* 31,282 21,683
32,518 22,325
* Of which €426 thousand (2020: €315 thousand) relates to lease receivables.
A. Transfer of trade receivablesa

Auditors’ report
IFRS 7.14, 42D(a)–(c) The Group sold with recourse trade receivables to a bank for cash proceeds. These trade
receivables have not been derecognised from the statement of financial position, because the
Group retains substantially all of the risks and rewards – primarily credit risk. The amount received
on transfer has been recognised as a secured bank loan (see Note 28(A)). The arrangement with
the bank is such that the customers remit cash directly to the Group and the Group transfers the
collected amounts to the bank.
The receivables are considered to be held within a held-to-collect business model consistent with
the Group’s continuing recognition of the receivables.
The following information shows the carrying amount of trade receivables at the reporting date
that have been transferred but have not been derecognised and the associated liabilities.
Primary statements
IFRS 7.42D(e) Carrying amount of trade receivables transferred to a bank 600 1,000
Carrying amount of associated liabilities 598 985
B. Credit and market risks, and impairment losses

Information about the Group’s exposure to credit and market risks, and impairment losses for
trade receivables is included in Note 32(C).
NOTES
Appendices
Insights 2.3.70, a. There is no specific guidance in IFRS Standards on the classification of cash flows from factoring arrangements –
73.30 e.g. whether the entity should classify the cash inflows from the factor as operating or financing in the statement of
cash flows. The primary consideration for the classification of cash flows is the nature of the activity to which they
relate and judgement may be needed to apply this to factoring arrangements.
Considering that the customers remit cash directly to the Group, the Group has presented a financing cash inflow
for the proceeds received from the bank, followed by an operating cash inflow for the proceeds received from the
customer and a financing cash outflow for the settlement of amounts due to the bank.
Assets
Introduction
19. Cash and cash equivalents
See accounting policies in Notes 45(P)(i)–(ii) and (S)(i).
IAS 7.45 In thousands of euro 2021 2020
Bank balances 50 988

Call deposits 1,454 861
Cash and cash equivalents in the statement of financial position 1,504 1,849
Bank overdrafts repayable on demand and used for cash management
purposes (334) (282)
Cash and cash equivalents in the statement of cash flows 1,170 1,567
Auditors’ report
Primary statements
NOTES
Appendices

Introduction
20. Disposal group held for salea

See accounting policy in Note 45(O).
IFRS 5.41(a)–(b), 41(d) In June 2021, management committed to a plan to sell part of a manufacturing facility within the
Non-recycled Papers segment. Accordingly, part of that facility is presented as a disposal group
held for sale. Efforts to sell the disposal group have started and a sale is expected by April 2022.
IFRS 5.41(c) A. Impairment losses relating to the disposal group

Impairment losses of €35 thousand for write-downs of the disposal group to the lower of its
carrying amount and its fair value less costs to sell have been included in ‘other expenses’
(see Note 9(B)). The impairment losses have been applied to reduce the carrying amount of
Auditors’ report
property, plant and equipment within the disposal group.
IFRS 5.38 B. Assets and liabilities of disposal group held for saleb
At 31 December 2021, the disposal group was stated at fair value less costs to sell and comprised
the following assets and liabilities.
In thousands of euro Note
Property, plant and equipment 21(A) 8,129

Inventories 2,775
Trade and other receivables 3,496
Assets held for sale 14,400
Primary statements
Trade and other payables 4,270

Deferred tax liabilities 14(E) 140
Liabilities held for sale 4,410
IFRS 5.38 C. Cumulative income or expenses included in OCI

There are no cumulative income or expenses included in OCI relating to the disposal group.
D. Measurement of fair values

IFRS 13.93(a)–(b) The non-recurring fair value measurement for the disposal group of €10,050 thousand (before
costs to sell of €60 thousand) has been categorised as a Level 3 fair value based on the inputs to
the valuation technique used (see Note 4(B)).c
NOTES
a. The part of the Group’s manufacturing facility that has been presented as a disposal group held for sale does not
Appendices
meet the definition of a discontinued operation in IFRS 5. If it did, then additional disclosures applicable to the
discontinued operation would be required.
IFRS 5.38 b. The Group has elected to disclose major classes of assets and liabilities classified as held-for-sale in the notes.
Alternatively, this information may be provided in the statement of financial position.
IFRS 13.93(a), c. A non-recurring fair value measurement – e.g. related to an asset classified as held-for-sale – may occur during the
Insights 2.4.530 reporting period. The disclosures required for a non-recurring fair value measurement are applicable in the financial
statements for the period in which the fair value measurement occurred.
Assets
Introduction
20. Disposal group held for sale (continued)
D. Measurement of fair values (continued)
ii. Valuation technique and significant unobservable inputs
IFRS 13.93(d), 99 The following table shows the valuation technique used in measuring the fair value of the disposal
group, as well as the significant unobservable inputs used.
Valuation technique Significant unobservable inputs
Cost approach and discounted cash flows: The Group considers both – Budgeted EBITDA growth rate
approaches, and reconciles and weighs the estimates under each technique (4.2–5.1%, weighted average
based on its assessment of the judgement that market participants would 4.7%).
Auditors’ report
apply. The cost approach considers the current replacement costs of – Budgeted capital expenditure
replicating the manufacturing facility, including the costs of transportation, growth rate (3–4%, weighted
installation and start-up. Discounted cash flows consider the present value average 3.5%).
of the net cash flows expected to be generated from the facility, taking
into account the budgeted EBITDA growth rate and budgeted capital – Risk-adjusted discount rate
expenditure growth rate; the expected net cash flows are discounted using (7.7%).
a risk-adjusted discount rate.
Primary statements
NOTES
Appendices

Introduction
21. Property, plant and equipment

See accounting policies in Notes 45(L), (S)(ii) and (U)(ii).
A. Reconciliation of carrying amounta
Fixtures
Land and Plant and and Under
In thousands of euro Note buildings equipment fittings construction Total
Cost
IAS 16.73(d) Balance at 1 January 2020 10,431 29,509 5,289 - 45,229
IAS 16.73(e)(i) Additions 193 1,540 675 - 2,408
IAS 16.73(e)(ii) Disposals - (1,081) - - (1,081)
Auditors’ report
IAS 16.73(e)(viii) Effect of movements in exchange

rates - 316 171 - 487
IAS 16.73(d) Balance at 31 December 2020 10,624 30,284 6,135 - 47,043
IAS 16.73(e)(iii) Acquisitions through business
combinations 34(C) 185 1,580 190 - 1,955
IAS 16.73(e)(i) Additions 1,750 9,694 657 4,100 16,201
IAS 16.73(e)(ix) Reclassification to investment
property – depreciation offset (F) (300) - - - (300)
IAS 16.73(e)(ix) Revaluation of building reclassified
to investment property (F) 200 - - - 200
Primary statements
property (F) (800) - - - (800)

IAS 16.73(e)(ii) Reclassification to assets held for
sale 20(B) - (9,222) - - (9,222)
IAS 16.73(e)(ii) Disposals (89) (11,972) (2,100) - (14,161)
rates - 91 50 - 141
IAS 16.73(d) Balance at 31 December 2021 11,570 20,455 4,932 4,100 41,057
NOTES
Appendices
IAS 16.73(d)–(e) a. Although IAS 16 Property, Plant and Equipment only requires the reconciliation of the carrying amount at the
beginning and at the end of the reporting period, the Group has also provided separate reconciliations of the gross
carrying amount and accumulated depreciation. These additional reconciliations are not required and a different
format may be used.
Assets
Introduction
21. Property, plant and equipment (continued)
Land and Plant and Fixtures Under
In thousands of euro Note buildings equipment and fittings construction Total
Accumulated depreciation and

impairment losses
IAS 16.73(d) Balance at 1 January 2020 1,615 5,557 939 - 8,111
IAS 16.73(e)(vii) Depreciation 9(C) 123 4,240 759 - 5,122
IAS 16.73(e)(v) Impairment loss (B), 9(C) - 1,123 - - 1,123
IAS 16.73(e)(ii) Disposals - (700) - - (700)
Auditors’ report
rates - 98 59 - 157
IAS 16.73(e)(vii) Depreciation 9(C) 120 4,478 741 - 5,339
IAS 16.73(e)(vi) Reversal of impairment loss (B), 9(C) - (393) - - (393)
property – depreciation offset (F) (300) - - - (300)
IAS 16.73(e)(ii) Reclassification to assets held for
sale 20(B) - (1,058) - - (1,058)
IAS 16.73(e)(ii) Disposals - (3,808) (1,127) - (4,935)
Primary statements
rates - 63 38 - 101
IAS 1.78(a), 16.73(e) Carrying amounts
At 1 January 2020 8,816 23,952 4,350 - 37,118
At 31 December 2020 8,886 19,966 4,378 - 33,230
At 31 December 2021 10,012 10,855 3,523 4,100 28,490
[IFRS 16.47] Property, plant and equipment includes right-of-use assets of €3,593 thousand (2020:
€4,153 thousand) related to leased properties that do not meet the definition of investment
property (see Note 38(A)(i)).
B. Impairment loss and subsequent reversal
IAS 36.126(a)–(b) During 2020, due to regulatory restrictions imposed on the manufacture of a new product in the
Non-recycled Papers segment, the Group tested the related product line for impairment and
recognised an impairment loss of €1,123 thousand with respect to plant and equipment. In 2021, NOTES
€393 thousand of the loss was reversed. Further information about the impairment loss and
subsequent reversal is included in Note 22(C)(ii).
C. Leased property, plant and equipment

IAS 7.43 During 2021, the Group leased land and buildings and recognised a right-to-use asset of
€150 thousand (2020: €180 thousand of production equipment). Some leases provide the Group
with the option to buy the equipment at a beneficial price.
Appendices

Introduction
21. Property, plant and equipment (continued)

D. Security
IAS 16.74(a) At 31 December 2021, properties with a carrying amount of €5,000 thousand (2020: €4,700 thousand)
were subject to a registered debenture that forms security for bank loans (see Note 28(A)).
E. Property, plant and equipment under construction

IAS 16.74(b) During 2021, the Group acquired a piece of land for €3,100 thousand, with the intention of
constructing a new factory on the site.
IAS 23.26 The Group has started construction and costs incurred up to 31 December 2021 totalled
€1,000 thousand (2020: nil). Included in this amount are capitalised borrowing costs related to the
Auditors’ report
acquisition of the land and the construction of the factory of €194 thousand, calculated using a
capitalisation rate of 5.2%.
F. Transfer to investment property

During 2021, a building was transferred to investment property (see Note 23(A)), because it was
no longer used by the Group and it was decided that the building would be leased to a third party.
IFRS 13.93(d) Immediately before the transfer, the Group remeasured the property to fair value and recognised
a gain of €200 thousand in OCI. The valuation techniques and significant unobservable inputs used
in measuring the fair value of the building at the date of transfer were the same as those applied to
investment property at the reporting date (see Note 23(C)(ii)).
G. Change in estimates
Primary statements
IAS 8.39, 16.76 During 2021, the Group conducted an operational efficiency review at one of its plants, which
resulted in changes in the expected usage of certain dyeing equipment. The dyeing equipment,
which management had previously intended to sell after five years of use, is now expected to
remain in production for 12 years from the date of purchase. As a result, the expected useful life of
the equipment increased and its estimated residual value decreased. The effect of these changes
on actual and expected depreciation expense, included in ‘cost of sales’, was as follows.
In thousands of euro 2021 2022 2023 2024 2025 Later
(Decrease) increase in depreciation

expense (256) (113) 150 150 130 170
H. Change in classification
IAS 1.41(a)–(c) During 2021, the Group modified the classification of depreciation expense on certain office
space to reflect more appropriately the way in which economic benefits are derived from its use.
Comparative amounts in the statement of profit or loss and OCI were reclassified for consistency.
As a result, €120 thousand was reclassified from ‘administrative expenses’ to ‘selling and
NOTES
distribution expenses’.
I. Temporarily idle property, plant and equipment

IAS 16.79 At 31 December 2021, plant and equipment with a carrying amount of €503 thousand were
temporarily idle, but the Group plans to operate the assets in 2022.
Appendices
Assets
Introduction
22. Intangible assets and goodwill
See accounting policies in Notes 45(M) and (S)(ii).
A. Reconciliation of carrying amounta
Patents and Development Customer Emissions
In thousands of euro Note Goodwill trademarks costs relationships certificatesb Total
Cost
IFRS 3.B67(d)(i), Balance at 1 January
IAS 38.118(c) 2020 3,545 1,264 4,011 - 100 8,920
Acquisitions
IAS 38.118(e)(i) Internally developed - - 515 - - 515
Auditors’ report
IAS 38.118(e)(i) Government grant 30(B) - - - - 120 120
IAS 38.118(e)(i) Purchases - - - - 10 10
IAS 38.118(e)(viii) Disposals - - - - (110) (110)
IAS 38.118(e)(vii) Effect of movements in
exchange rates - (171) (95) - - (266)
IFRS 3.B67(d)(viii), Balance at
IAS 38.118(c)
31 December 2020 3,545 1,093 4,431 - 120 9,189
IAS 38.118(c) 2021 3,545 1,093 4,431 - 120 9,189
IFRS 3.B67(d)(ii), Acquisitions
IAS 38.118(e)(i)
Business
combinations 541 170 - 80 - 791
Primary statements
34(C)–(D)
IAS 38.118(e)(i) Internally developed - - 1,272 - - 1,272
IAS 38.118(e)(i) Government grant 30(B) - - - - 115 115
IAS 38.118(e)(i) Purchases - - - - 20 20
IAS 38.118(e)(viii) Disposals 31(D) - - - - (140) (140)
exchange rates - 186 200 - - 386
IFRS 3.B67(d)(viii), Balance at
IAS 38.118(c)
31 December 2021 4,086 1,449 5,903 80 115 11,633
NOTES
IAS 38.118(c), (e) a. Although IAS 38 Intangible Assets requires only the reconciliation of the carrying amount at the beginning and at the
end of the reporting period, the Group has also provided separate reconciliations of the gross carrying amount and
accumulated amortisation. These additional reconciliations are not required and a different format may be used.
Insights 3.3.160.10 b. The Standards do not contain specific guidance on accounting for emissions certificates. In our view, a participant
in a cap and trade scheme should choose an accounting policy, to be applied consistently, to account for emissions
Appendices
certificates based on one of the following approaches.
– As intangible assets: Under this approach, it is argued that emissions certificates are identifiable non-monetary
assets that do not have physical substance and that therefore they meet the definition of an intangible asset.
– As inventories: Under this approach, it is argued that emissions certificates are effectively an input to be consumed
in the production process, similar to inventories.
The Group has elected to account for emissions certificates as intangible assets.

Introduction
22. Intangible assets and goodwill (continued)

Patents and Development Customer Emissions
In thousands of euro Note Goodwill trademarks costs relationships certificates Total
Accumulated
amortisation and
impairment losses
IAS 38.118(c) 2020 138 552 2,801 - - 3,491
IAS 38.118(e)(vi) Amortisation (B), 9(C) - 118 677 - - 795
Auditors’ report
IAS 38.118(e)(iv) Impairment loss (C), 9(C) - - 285 - - 285

exchange rates - (31) (12) - - (43)
IFRS 3.B67(d)(viii), Balance at 31 December
IAS 38.118(c)
2020 138 639 3,751 - - 4,528
IAS 38.118(c) 2021 138 639 3,751 - - 4,528
IAS 38.118(e)(vi) Amortisation (B), 9(C) - 129 646 10 - 785
IFRS 3.B67(d)(v),
IAS 38.118(e)(iv) Impairment loss (C), 9(B) 116 - - - - 116
Reversal of impairment
IAS 38.118(e)(v) loss (C), 9(C) - - (100) - - (100)
Effect of movements in
Primary statements
IAS 38.118(e)(vii)
exchange rates - 61 17 - - 78
IFRS 3.B67(d)(viii), Balance at 31
IAS 38.118(c)
December 2021 254 829 4,314 10 - 5,407
Carrying amounts
IAS 38.118(c) At 1 January 2020 3,407 712 1,210 - 100 5,429
Non-current 5,329
Current 100
IAS 38.118(c) At 31 December 2020 3,407 454 680 - 120 4,661
Non-current 4,541
Current 120
IAS 38.118(c) At 31 December 2021 3,832 620 1,589 70 115 6,226
Non-current 6,111
NOTES
Current 115
Appendices
Assets
Introduction
IAS 38.118(d) B. Amortisation
The amortisation of patents, trademarks and development costs is allocated to the cost of
inventory and is included in ‘cost of sales’ as inventory is sold; the amortisation of customer
relationships is included in ‘cost of sales’.
C. Impairment test
IAS 36.131(b) The impairment loss and its subsequent reversal were recognised in relation to the manufacture of
a new product in the Non-recycled Papers segment and the goodwill in the Timber Products CGU
as follows.
Auditors’ report
IAS 36.130(d)(ii) Non-recycled Papers

Plant and equipment and development costs (ii) (493) 1,408
IAS 36.126(a)–(b) The impairment loss and subsequent reversal in relation to the Non-recycled Papers segment
were included in ‘cost of sales’ (see Note 9(C)).a
IAS 36.130(d)(ii) Timber Products

Goodwill (iii) 116 -
IAS 36.126(a)–(b) The impairment loss on goodwill in the Timber Products CGU was included in ‘other expenses’
(see Note 9(B)).a
Primary statements
i. Recoverability of development costsb
IAS 36.132 Included in the carrying amount of development costs at 31 December 2021 is an amount of
€400 thousand related to a development project for a new process in one of the Group’s factories
in the Non-recycled Papers segment. The regulatory approval that would allow this new process
was delayed; consequently, the benefit of the new process will not be realised as soon as
previously expected and management has carried out an impairment test.
The recoverable amount of the CGU that included these development costs (the factory using
the process) was estimated based on the present value of the future cash flows expected to be
derived from the CGU (value in use), assuming that the regulatory approval would be passed by
July 2022 and using a pre-tax discount rate of 12% and a terminal value growth rate of 2% from
2026. The recoverable amount of the CGU was estimated to be higher than its carrying amount
and no impairment was required.
IAS 1.125, 129 Management considers it possible that the regulatory approval may be delayed by a further year to
July 2023. This further delay would result in an impairment of approximately €100 thousand in the NOTES
carrying amount of the factory.
Appendices
IAS 36.126, a. The Group has classified expenses by function and has therefore allocated the impairment loss to the appropriate
Insights 3.10.410.20 function. In our view, in the rare case that an impairment loss cannot be allocated to a function, it should be included
in ‘other expenses’ as a separate line item if it is significant (e.g. impairment of goodwill), with additional information
given in a note.
IAS 36.132, 134 b. The Group has disclosed the key assumptions used (discount rate and terminal growth rate) to determine the
recoverable amount of assets and CGUs, although disclosures beyond the discount rate are required only for CGUs
containing goodwill or indefinite-lived intangible assets.

Introduction

C. Impairment test (continued)
ii. Impairment loss and subsequent reversal in relation to a new product
IAS 36.130(a), (d)(i) During 2020, a regulatory inspection revealed that a new product in the Non-recycled Papers
segment did not meet certain environmental standards, necessitating substantial changes to the
manufacturing process. Before the inspection, the product was expected to be available for sale in
2021; however, as a result of the regulatory restrictions, production and the expected launch date
were deferred.
IAS 36.130(e) Accordingly, management estimated the recoverable amount of the CGU (the product line)
Auditors’ report
in 2020. The recoverable amount was estimated based on its value in use, assuming that the
production line would go live in August 2022.
In 2021, following certain changes to the recovery plan, the Group reassessed its estimates and
reversed part of the initially recognised impairment.
IAS 36.130(g), 132 The estimate of value in use was determined using a pre-tax discount rate of 10.5% (2020: 9.8%)
and a terminal value growth rate of 3% from 2026 (2020: 3% from 2025).a
Plant and equipment 21(B) (393) 1,123

Development costs (100) 285
(Reversal of) impairment loss (493) 1,408
Primary statements
IAS 36.130(e) At 31 December 2021, the recoverable amount of the CGU was as follows.
Recoverable amount 1,576 1,083
iii. Impairment testing for CGUs containing goodwillb

IAS 36.134(a) For the purposes of impairment testing, goodwill has been allocated to the Group’s CGUs
(operating divisions) as follows.
European Paper manufacturing and distribution 2,676 2,135

Timber Products 960 1,076
3,636 3,211
IAS 36.135 Multiple units without significant goodwill 196 196
3,832 3,407
NOTES
Appendices
IAS 36.132, 134 a. The Group has disclosed the key assumptions used (discount rate and terminal growth rate) to determine the
recoverable amount of assets and CGUs, although disclosures beyond the discount rate are required only for CGUs
containing goodwill or indefinite-lived intangible assets.
IAS 36.134 b. Separate disclosures are required for each CGU (or group of CGUs) for which the carrying amount of goodwill or
intangible assets with an indefinite useful life allocated to the CGU is significant in comparison with its carrying
amount.
Assets
Introduction
iii. Impairment testing for CGUs containing goodwill (continued)
European Paper manufacturing and distribution
IAS 36.134(c), (e) The recoverable amount of this CGU was based on fair value less costs of disposal, estimated
using discounted cash flows. The fair value measurement was categorised as a Level 3 fair value
based on the inputs in the valuation technique used (see Note 4(B)).
IAS 36.134(e)(i) The key assumptionsa used in the estimation of the recoverable amount are set out below.
The values assigned to the key assumptions represent management’s assessment of future
Auditors’ report
trends in the relevant industries and have been based on historical data from both external and
internal sources.
In percent 2021 2020
IAS 36.134(e)(v), (f)(ii) Discount rate 8.7 8.5

IAS 36.134(e)(iv) Terminal value growth rate 1.0 0.9
IAS 36.134(e)(i), (f)(ii) Budgeted EBITDA growth rate (average of next five years) 5.2 4.8
IAS 36.134(e)(ii) The discount rate was a post-tax measure estimated based on the historical industry average
weighted-average cost of capital, with a possible debt leveraging of 40% at a market interest rate
of 7%.
IAS 36.134(e)(ii)–(iii) The cash flow projections included specific estimates for five years and a terminal growth rate
thereafter. The terminal growth rate was determined based on management’s estimate of the
Primary statements
long-term compound annual EBITDA growth rate, consistent with the assumptions that a market
participant would make.
IAS 36.134(e)(ii) Budgeted EBITDA was estimated taking into account past experience, adjusted as follows.
– Revenue growth was projected taking into account the average growth levels experienced over
the past five years and the estimated sales volume and price growth for the next five years. It
was assumed that the sales price would increase in line with forecast inflation over the next
five years.
– Significant one-off environmental costs have been factored into the budgeted EBITDA,
reflecting various potential regulatory developments in a number of European countries in which
the CGU operates. Other environmental costs are assumed to grow with inflation in other years.
– Estimated cash flows related to a restructuring that is expected to be carried out in 2022 were
reflected in the budgeted EBITDA.
IAS 36.134(f)(i) The estimated recoverable amount of the CGU exceeded its carrying amount by approximately NOTES
€300 thousand (2020: €250 thousand). Management has identified that a reasonably possible
change in two key assumptions could cause the carrying amount to exceed the recoverable
amount. The following table shows the amount by which these two assumptions would need to
change individually for the estimated recoverable amount to be equal to the carrying amount.
Appendices
IAS 36.134(d)(ii), a. IAS 36 Impairment of Assets specifically requires quantitative disclosures (i.e. values) in respect of the discount
(iv)–(v), (e)(ii), rates and growth rates used to extrapolate cash flow projections. Narrative disclosures are sufficient for other key
(iv)–(v), (f), IE89 assumptions, having regard to the requirement for an entity to disclose a description of management’s approach
to determining the value(s) assigned to each key assumption, whether those value(s) reflect past experience or,
if appropriate, are consistent with external sources of information, and, if not, how and why they differ from past
experience or external sources of information. An entity also discloses additional quantitative information if a
reasonably possible change in key assumptions would result in an impairment.

Introduction

European Paper manufacturing and distribution (continued)
Change required for
carrying amount to equal
recoverable amount
IAS 36.134(f)(iii) Discount rate 1.6 1.3

Auditors’ report
IAS 36.134(f)(iii) Budgeted EBITDA growth rate (4.4) (3.6)

Timber Products
IAS 1.125, The recoverable amount of this CGU was based on its value in use, determined by discounting
36.134(c)–(d)
the future cash flows to be generated from the continuing use of the CGU. The carrying amount
of the CGU was determined to be higher than its recoverable amount of €960 thousand and an
impairment loss of €116 thousand during 2021 (2020: nil) was recognised. The impairment loss
was fully allocated to goodwill and included in ‘other expenses’.
IAS 36.134(d)(i) The key assumptions used in the estimation of value in use were as follows.a
IAS 36.134(d)(v) Discount rate 9.6 10.0

Terminal value growth rate 1.8 2.0
Primary statements
IAS 36.134(d)(iv)
IAS 36.134(d)(i), (f)(ii) Budgeted EBITDA growth rate (average of next five years) 8.0 9.0
NOTES
Appendices
IAS 36.134(d)(ii), a. IAS 36 specifically requires quantitative disclosures (i.e. values) in respect of the discount rates and growth rates
(iv)–(v), (e)(ii), used to extrapolate cash flow projections. Narrative disclosures are sufficient for other key assumptions, having
(iv)–(v), (f), IE89 regard to the requirement for an entity to disclose a description of management’s approach to determining the
value(s) assigned to each key assumption, whether those value(s) reflect past experience or, if appropriate, are
consistent with external sources of information, and, if not, how and why they differ from past experience or external
sources of information. An entity also discloses additional quantitative information if a reasonably possible change in
key assumptions would result in an impairment.
Assets
Introduction
Timber Products (continued)
IAS 36.134(d)(ii) The discount rate was a pre-tax measurea based on the rate of 10-year government bonds issued by
the government in the relevant market and in the same currency as the cash flows, adjusted for a
risk premium to reflect both the increased risk of investing in equities generally and the systematic
risk of the specific CGU.
IAS 36.134(d)(ii)–(iii) Five years of cash flows were included in the discounted cash flow model. A long-term growth rate
Auditors’ report
into perpetuity has been determined as the lower of the nominal gross domestic product (GDP)
rates for the countries in which the CGU operates and the long-term compound annual EBITDA
growth rate estimated by management.
Budgeted EBITDA was based on expectations of future outcomes taking into account past
experience, adjusted for anticipated revenue growth. Revenue growth was projected taking into
account the average growth levels experienced over the past five years and the estimated sales
volume and price growth for the next five years. It was assumed that sales prices would grow at a
constant margin above forecast inflation over the next five years, in line with information obtained
from external brokers who publish a statistical analysis of long-term market trends.
IAS 36.134(f) Following the impairment loss recognised in the Group’s Timber Products CGU, the recoverable
amount was equal to the carrying amount. Therefore, any adverse movement in a key assumption
would lead to further impairment.
Primary statements
D. Development costs
IAS 23.26(a)–(b) Included in development costs is an amount of €37 thousand (2020: €12 thousand) that represents
borrowing costs capitalised during the year using a capitalisation rate of 5.1% (2020: 5.4%).
E. Emissions certificates
The Group participates in a ‘cap and trade’ scheme in various countries. Under the scheme, at
the beginning of each year the government in each country sets specific annual limits for emitting
pollutants and grants the Group the respective number of emissions certificates. The Group can
settle its annual obligation created by the emission of pollutants only by surrendering emissions
certificates by a specified date, which is usually within 12 months after the reporting date. If the
Group’s annual emissions are below the limit, then it can sell the remaining certificates to other
parties on a trading platform. Conversely, if the annual emissions exceed the limit, then the Group
purchases additional certificates to settle its obligation. Historically, the Group has emitted more
pollutants than its annual allocation of emissions certificates from the government and has had to NOTES
purchase additional certificates.
The Group recognises emissions certificates as intangible assets. Emissions certificates received
from the government are initially measured at fair value, which is determined based on the market
price of certificates traded on the platform at that date. Emissions certificates purchased on the
trading platform are initially measured at cost.
In 2021, the Group received emissions certificates amounting to €115 thousand (2020: €120
thousand) (see Note 31(D)). In addition, the Group purchased emissions certificates amounting to
€20 thousand during 2021 (2020: €10 thousand) on a trading platform. The additional certificates
are purchased and surrendered within a period of less than 12 months to settle the obligation to
the government.
Appendices
IAS 36.50(b), 55, a. IAS 36 prima facie requires value in use to be determined using pre-tax cash flows and a pre-tax discount rate.
A20, Insights However, in our experience it is more common to use post-tax cash flows and a post-tax discount rate such as the
3.10.840.10–20 weighted-average cost of capital. Challenges arise in following a post-tax approach appropriately so that the resulting
value in use is consistent with the pre-tax principle.
Whichever rate is used (pre- or post-tax), the pre-tax discount rate needs to be disclosed. When value in use is
determined using post-tax cash flows and a post-tax discount rate, the pre-tax discount rate needs to be calculated
to comply with the disclosure requirements.

Introduction
23. Investment propertya

See accounting policy in Note 45(N).
A. Reconciliation of carrying amount
IAS 40.76, IFRS 13.93(e) Balance at 1 January 400 300

IAS 40.76(a),
IFRS 13.93(e)(iii) Acquisitions 300 40
IAS 40.76(f),
IFRS 13.93(e)(iii) Reclassification from property, plant and equipment 21(F) 800 -
IAS 40.76(d),
Change in fair value 9(A) 20 60
Auditors’ report
IFRS 13.93(e)(i), (f)
IAS 40.76, IFRS 13.93(e) Balance at 31 December 1,520 400

IFRS 16.92(a) Investment property comprises a number of commercial properties that are leased to third parties.
Each of the leases contains an initial non-cancellable period of 10 years. Subsequent renewals
are negotiated with the lessee and historically the average renewal period is four years. Further
information about these leases is included in Note 38(B).
IFRS 13.93(e)(i), (f) Changes in fair values are recognised as gains in profit or loss and included in ‘other income’. All
gains are unrealised.
B. Amounts recognised in profit or loss

IAS 40.75(f)(i)–(iii) Rental income recognised by the Group during 2021 was €460 thousand (2020: €302 thousand)
and was included in ‘other revenue’ (see Note 8(A)). Maintenance expense, included in ‘cost of
Primary statements
sales’ (see Note 9(C)), was as follows.

Income-generating property 45 30
Vacant property 20 15
65 45
C. Measurement of fair values

IAS 40.75(e) The fair value of investment property was determined by external, independent property valuers,
having appropriate recognised professional qualifications and recent experience in the location
and category of the property being valued. The independent valuers provide the fair value of the
Group’s investment property portfolio every six months.
IFRS 13.93(b) The fair value measurement for all of the investment properties has been categorised as a Level 3
fair value based on the inputs to the valuation technique used (see Note 4(B)).
NOTES
Appendices
Insights 3.4.260.40 a. Because IAS 40 Investment Property makes no reference to making disclosures on a class-by-class basis, it could be
assumed that the minimum requirement is to make the disclosures on an aggregate basis for the whole investment
property portfolio. If investment property represents a significant portion of the assets, then it may be appropriate to
disclose additional analysis – e.g. portfolio by types of investment property.
Assets
Introduction
23. Investment property (continued)
C. Measurement of fair values (continued)
ii. Valuation technique and significant unobservable inputs
IFRS 13.93(d), (h)(i), 99 The following table shows the valuation technique used in measuring the fair value of investment
property, as well as the significant unobservable inputs used.
Inter-relationship between key
unobservable inputs and fair value
Valuation technique Significant unobservable inputs measurement
Discounted cash flows: The – Expected market rental growth The estimated fair value would
(2021: 2–3%, weighted average
Auditors’ report
valuation model considers the increase (decrease) if:
present value of net cash flows to 2.6%; 2020: 2–3%, weighted – expected market rental
be generated from the property, average 2.5%). growth were higher (lower);
taking into account the expected – Void periods (2021 and 2020: – void periods were shorter
rental growth rate, void periods, average 6 months after the end of (longer);
occupancy rate, lease incentive each lease).
costs such as rent-free periods – the occupancy rate were
– Occupancy rate (2021: 90–95%, higher (lower);
and other costs not paid by
weighted average 92.5%; 2020:
tenants. The expected net cash – rent-free periods were shorter
91–95%, weighted average 92.8%).
flows are discounted using risk- (longer); or
adjusted discount rates. Among – Rent-free periods (2021 and 2020:
1-year period on new leases). – the risk-adjusted discount rate
other factors, the discount rate
were lower (higher).
estimation considers the quality – Risk-adjusted discount rates
of a building and its location (2021: 5–6.3%, weighted average
(prime vs secondary), tenant 5.8%; 2020: 5.7–6.8%, weighted
credit quality and lease terms. average 6.1%).
Primary statements
NOTES
Appendices

Introduction
24. Equity-accounted investeesa, b

See accounting policies in Notes 45(A)(v)–(vi) and (S)(i).
Interest in joint venture (A) 2,217 1,048

Interests in associates (B) 272 900
Balance at 31 December 2,489 1,948
c
A. Joint venture
IFRS 12.20(a), Paletel AG (Paletel) is a joint venture in which the Group has joint control and a 40% ownership
21(a)(i)–(iii), (b)(iii)
interest. It is one of the Group’s strategic suppliers and is principally engaged in the production of
Auditors’ report
paper pulp in Himmerland, Denmark. Paletel is not publicly listed.

IFRS 12.7(c), 20(b), Paletel is structured as a separate vehicle and the Group has a residual interest in the net assets of
23(a), B18
Paletel. Accordingly, the Group has classified its interest in Paletel as a joint venture. In accordance
with the agreement under which Paletel is established, the Group and the other investor in the
joint venture have agreed to make additional contributions in proportion to their interests to make
up any losses, if required, up to a maximum amount of €6,000 thousand. This commitment has not
been recognised in these consolidated financial statements.
Primary statements
NOTES
a. For additional disclosure examples and explanatory notes on IFRS 12 Disclosure of Interests in Other Entities, see
Appendices
our Guide to annual financial statements – IFRS 12 supplement.

IFRS 12.21 b. The extent of disclosures required by IFRS 12 for individually material interests in joint arrangements and associates
differs from that for individually immaterial interests. For example, required financial information may be disclosed in
aggregate for all individually immaterial associates.
IFRS 12.21–23, c. The extent of disclosures required by IFRS 12 for individually material joint ventures and joint operations is different.
B12–B13 For example, the disclosure of summarised financial information, fair value (if there is a quoted market price) and
commitments is not required for joint operations.
Assets
Introduction
24. Equity-accounted investees (continued)
A. Joint venture (continued)
IFRS 12.21(b), The following table summarises the financial information of Paletel as included in its own financial
B12–B14
statements, adjusted for fair value adjustments at acquisition and differences in accounting
policies. The table also reconciles the summarised financial information to the carrying amount of
the Group’s interest in Paletel.
IFRS 12.21(a)(iv) Percentage ownership interest 40% 40%

IFRS 12.B12(b)(ii) Non-current assets 5,953 3,259
Auditors’ report
IFRS 12.B12(b)(i), Current assets (including cash and cash equivalents –
B13(a)
2021: €200 thousand, 2020: €150 thousand) 1,089 821
IFRS 12.B12(b)(iv), Non-current liabilities (including non-current financial liabilities
B13(c) excluding trade and other payables and provisions –
2021: €1,211 thousand, 2020: €986 thousand) (1,716) (1,320)
IFRS 12.B12(b)(iii), Current liabilities (including current financial liabilities
B13(b)
excluding trade and other payables and provisions –
2021: €422 thousand, 2020: €930 thousand) (543) (1,130)
Net assets (100%) 4,783 1,630
Group’s share of net assets (40%) 1,913 652
Elimination of unrealised profit on downstream sales (96) (4)
Goodwill 400 400
Primary statements
Carrying amount of interest in joint venture 2,217 1,048
IFRS 12.B12(b)(v) Revenue 25,796 21,405
IFRS 12.B13(d) Depreciation and amortisation (445) (350)
IFRS 12.B13(f) Interest expense (396) (218)
IFRS 12.B13(g) Income tax expense (1,275) (290)
IFRS 12.B12(b)(vi), (ix) Profit and total comprehensive income (100%) 3,205 690
Profit and total comprehensive income (40%) 1,282 276
Elimination of unrealised profit on downstream sales (92) (4)
Group’s share of total comprehensive income 1,190 272
IFRS 12.B12(a) Dividends received by the Group 21 -
NOTES
Appendices

Introduction
24. Equity-accounted investees (continued)

B. Associates
IFRS 12.20, 21(a)(i)–(iii), On 31 March 2021, the Group’s equity interest in its material associate, Papyrus, increased from
(b)(iii)
25 to 90% and Papyrus became a subsidiary from that date (see Note 34). Papyrus is one of the
Group’s strategic suppliers and is principally engaged in the production of paper pulp in Kentucky,
United States. Papyrus is not publicly listed.
IFRS 12.21(b), The following table summarises the financial information of Papyrus as included in its own financial
B12–B14
statements, adjusted for fair value adjustments at acquisition and differences in accounting
policies. The table also reconciles the summarised financial information to the carrying amount
of the Group’s interest in Papyrus. The information for 2020 presented in the table includes the
Auditors’ report
results of Papyrus for the period from 1 January to 31 December 2020. The information for 2021
includes the results of Papyrus only for the period from 1 January to 31 March 2021, because
Papyrus became a subsidiary on 31 March 2021.
IFRS 12.21(a)(iv) Percentage ownership interest 25% 25%

IFRS 12.B12(b)(ii) Non-current assets - 1,280
IFRS 12.B12(b)(i) Current assets - 1,975
IFRS 12.B12(b)(iv) Non-current liabilities - (1,087)
IFRS 12.B12(b)(iii) Current liabilities - (324)
Net assets (100%) - 1,844
Group’s share of net assets (25%) - 461
Primary statements
Elimination of unrealised profit on downstream sales - (8)

Carrying amount of interest in associate - 453
IFRS 12.B12(b)(v) Revenue 7,863 19,814
IFRS 12.B12(b)(vi) Profit from continuing operations (100%) 271 857
IFRS 12.B12(b)(viii) Other comprehensive income (100%) (408) (552)
IFRS 12.B12(b)(ix) Total comprehensive income (100%) (137) 305
Total comprehensive income (25%) (34) 76
Elimination of unrealised profit on downstream sales 1 (1)
Group’s share of total comprehensive income (33) 75
IFRS 12.7(b), 12.9(e), The Group also has interests in a number of individually immaterial associates. For one of these
IAS 1.122
associates, the Group owns 20% of the equity interests but has less than 20% of the voting
rights; however, the Group has determined that it has significant influence because it has
meaningful representation on the board of the investee.
NOTES
IFRS 12.21(c), B16 The following table analyses, in aggregate, the carrying amount and share of profit and OCI of
these associates.
Carrying amount of interests in associates 272 447

Share of:
– Profit from continuing operations (133) 102
– OCI (57) (31)
(190) 71
IFRS 12.22(c) The Group has not recognised losses totalling €15 thousand (2020: nil) in relation to its interests in
associates, because the Group has no obligation in respect of these losses.
Appendices
During 2021, the Group repaid a loan of €1,000 thousand received from one of its associates (see
Notes 28 and 41(C)).
Assets
Introduction
25. Other investments, including derivatives
See accounting policies in Notes 45(P) and (S)(i).
Non-current investments
IFRS 7.8(f) Corporate debt securities – at amortised cost 2,421 2,243
IFRS 7.8(h) Corporate debt securities – at FVOCI 118 373
IFRS 7.8(h) Equity securities – at FVOCI 710 511
IFRS 7.8(a) Equity securities – mandatorily at FVTPL 251 254
IFRS 7.22B(a) Interest rate swaps used for hedging 116 131
Auditors’ report
3,616 3,512
Current investments
IFRS 7.8(a) Sovereign debt securities – mandatorily at FVTPL 243 591
IFRS 7.22B(a) Forward exchange contracts used for hedging 297 352
Other forward exchange contracts 122 89
662 1,032
IFRS 7.7 Corporate debt securities classified as at amortised cost have interest rates of 6.3 to 7.8% (2020: 7.5
to 8.3%) and mature in two to five years. Corporate debt securities at FVOCI have stated interest
rates of 5.2 to 7.0% (2020: 6.5 to 8.0%) and mature in two to three years.
Sovereign debt securities at FVTPL have stated interest rates of 3.5 to 4.0% (2020: 3.2 to 3.8%) and
are held for trading.
Primary statements
Information about the Group’s exposure to credit and market risks, and fair value measurement, is
included in Note 32(C).
Equity securities designated as at FVOCIa
IFRS 7.11A The Group designated the investments shown below as equity securities at FVOCI because
these equity securities represent investments that the Group intends to hold for the long term for
strategic purposes.
Dividend Dividend
Fair value at Fair value at income income
31 December 31 December recognised recognised
In thousands of euro 2021 2020 during 2021 during 2020
Investment in MSE Limited 243 175 10 12

Investment in DEF Limited 467 336 16 20
710 511 26 32
NOTES
IFRS 7.11A(e) No strategic investments were disposed of during 2021, and there were no transfers of any
cumulative gain or loss within equity relating to these investments.
Insights 7.10.230.25 a. When disclosing which investments in equity instruments have been designated as at FVOCI, it appears that an
Appendices
entity should apply judgement in determining what disclosures would provide the most useful information for
financial statement users. We believe that in most cases, disclosing the names of individual investees would be
appropriate – e.g. if an entity has a small number of individually significant investments, particularly if this disclosure
enables users to access additional information about those investees from other sources. However, in some cases
disclosure at a higher level of aggregation and disclosures other than the names of investees may provide more
useful information. For example, if an entity has a large number of individually insignificant investments in a few
industries, then disclosure by industry may be appropriate. Similarly, if an entity holds investments for which no
public information is available, then disclosure about the nature and purpose of those investments may be relevant.

Introduction
26. Capital and reserves

See accounting policies in Notes 45(B)(i)–(ii), (E)(iv), (L)(iv), (P)(ii), (P)(iv)–(v), (Q) and (R).
A. Share capital and share premium
Non-redeemable
Ordinary shares preference shares
IAS 1.79(a)(iv) In thousands of shares 2021 2020 2021 2020
In issue at 1 January 3,100 3,100 1,750 1,750

Issued for cash 130 - - -
Exercise of share options 5 - - -
Issued in business combination 8 - - -
Auditors’ report
IAS 1.79(a)(ii) In issue at 31 December – fully paid 3,243 3,100 1,750 1,750
IAS 1.79(a)(i), (iii) Authorised – par value €3 10,000 10,000 2,000 2,000
IAS 1.79(a)(v) All ordinary shares rank equally with regard to the Company’s residual assets. Preference
shareholders participate only to the extent of the face value of the shares.
i. Ordinary shares
Holders of these shares are entitled to dividends as declared from time to time and are entitled
to one vote per share at general meetings of the Company. All rights attached to the Company’s
shares held by the Group are suspended until those shares are reissued.
Issue of ordinary shares
In October 2021, the general meeting of shareholders approved the issue of 130,000 ordinary
Primary statements
IAS 1.79(a)
shares at a price of €11.92 per share (2020: nil).
Additionally, 5,000 ordinary shares were issued as a result of the exercise of vested options arising
from the 2016 share option programme granted to key management personnel (2020: nil) (see
Note 12). Options were exercised at an average price of €10 per share.
IAS 7.43 During 2021, 8,000 ordinary shares were also issued as a result of the acquisition of Papyrus (see
Note 34(A)) (2020: nil).
ii. Non-redeemable preference shares

Holders of these shares receive a non-cumulative dividend of 25.03 cents per share at the
Company’s discretion, or whenever dividends to ordinary shareholders are declared. They do not
have the right to participate in any additional dividends declared for ordinary shareholders. These
shares do not have voting rights.
B. Nature and purpose of reserves

NOTES
i. Translation reserve
IAS 1.79(b) The translation reserve comprises all foreign currency differences arising from the translation
of the financial statements of foreign operations, as well as the effective portion of any foreign
currency differences arising from hedges of a net investment in a foreign operation (see
Note 45(P)(v)).
Appendices
Equity and liabilities
Introduction
26. Capital and reserves (continued)
B. Nature and purpose of reserves (continued)
IAS 1.79(b) ii. Hedging reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value
of hedging instruments used in cash flow hedges pending subsequent recognition in profit or
loss or directly included in the initial cost or other carrying amount of a non-financial asset or non-
financial liability.
IAS 1.79(b) iii. Cost of hedging reserve
The cost of hedging reserve reflects gain or loss on the portion excluded from the designated
Auditors’ report
hedging instrument that relates to the forward element of forward contracts. It is initially
recognised in OCI and accounted for similarly to gains or losses in the hedging reserve.
iv. Fair value reserve

IAS 1.79(b) The fair value reserve comprises:
– the cumulative net change in the fair value of equity securities designated at FVOCI; and
– the cumulative net change in fair value of debt securities at FVOCI until the assets are
derecognised or reclassified. This amount is adjusted by the amount of loss allowance.
v. Revaluation reserve
IAS 1.79(b) The revaluation reserve relates to the revaluation of property, plant and equipment immediately
before its reclassification as investment property.
Primary statements
vi. Convertible notes
IAS 1.79(b) The reserve for convertible notes comprises the amount allocated to the equity component for the
convertible notes issued by the Group in May 2021 (see Note 28(C)).
vii. Treasury share reserve

IAS 1.79(b), 32.34 The reserve for the Company’s treasury shares comprises the cost of the Company’s shares
held by the Group. At 31 December 2021, the Group held 48,000 of the Company’s shares
(2020: 50,000).a
C. Dividends
IAS 1.107 The following dividends were declared and paid by the Company for the year.
25.97 cents per qualifying ordinary share (2020: 4.28 cents) 805 133
25.03 cents per non-redeemable preference share (2020: 25.03 cents) 438 438 NOTES
1,243 571
IAS 1.137(a), 10.13, After the reporting date, the following dividends were proposed by the board of directors. The
12.81(i)
dividends have not been recognised as liabilities and there are no tax consequences.
27.92 cents per qualifying ordinary share (2020: 25.97 cents) 892 805
25.03 cents per non-redeemable preference share (2020: 25.03 cents) 438 438
1,330 1,243
Appendices
IAS 1.79(a)(vi), 32.34 a. The Group has elected to disclose the number of treasury shares held in the notes. Alternatively, it may be disclosed
in the statement of financial position or the statement of changes in equity.

Introduction
26D 26. Capital and reserves (continued)

IAS 1.106(d)(ii), 106A D. OCI accumulated in reserves, net of taxa
Cost of hedging
In thousands of euro reserve
2021
IAS 16.77(f) Revaluation of property, plant and equipment -
Remeasurements of defined benefit liability/asset -
IFRS 7.20(a)(vii) Equity investments at FVOCI – net change in fair value -
Auditors’ report
IAS 21.52(b) Foreign operations – foreign currency translation differences -

IAS 21.52(b) Reclassification of foreign currency differences on loss of significant influence -
IAS 21.52(b) Net investment hedge – net loss -
IFRS 7.24C(b)(ii) Cash flow hedges – effective portion of changes in fair value -
IFRS 7.24C(b)(iv) Cash flow hedges – reclassified to profit or loss -
Cost of hedging reserve – changes in fair value 22
Cost of hedging reserve – reclassified to profit or loss 5
IFRS 7.20(a)(viii) Debt investments at FVOCI – net change in fair value -
IFRS 7.20(a)(viii) Debt investments at FVOCI – reclassified to profit or loss -
Equity-accounted investees – share of OCI -
Total 27
2020
Primary statements
Remeasurements of defined benefit liability/asset -

IFRS 7.20(a)(vii) Equity investments at FVOCI – net change in fair value -
IAS 21.52(b) Foreign operations – foreign currency translation differences -
IAS 21.52(b) Net investment hedge – net loss -
IFRS 7.24C(b)(ii) Cash flow hedges – effective portion of changes in fair value -
IFRS 7.24C(b)(iv) Cash flow hedges – reclassified to profit or loss -
Cost of hedging reserve – changes in fair value 7
Cost of hedging reserve – reclassified to profit or loss 2
IFRS 7.20(a)(viii) Debt investments at FVOCI – net change in fair value -
Equity-accounted investees – share of OCI -
Total 9
NOTES
Appendices
Introduction
Translation Hedging Fair value Revaluation
reserve reserve reserve reserve Retained NCI
(see (B)(i)) (see (B)(ii)) (see (B)(iv)) (see (B)(v)) earnings Total (see Note 34) Total OCI
- - - 134 - 134 - 134

- - - - 48 48 - 48
- - 94 - - 94 - 94
Auditors’ report
653 - - - - 653 26 679
(20) - - - - (20) - (20)
(3) - - - - (3) - (3)
- (41) - - - (41) - (41)
- (21) - - - (21) - (21)
- - - - - 22 - 22
- - - - - 5 - 5
- - 36 - - 36 - 36
- - (43) - - (43) - (43)
(172) - - - 15 (157) - (157)
458 (62) 87 134 63 707 26 733
Primary statements
- - - - (10) (10) - (10)
- - 41 - - 41 - 41
449 - - - - 449 22 471
(8) - - - - (8) - (8)
- 64 - - - 64 - 64
- (8) - - - (8) - (8)
- - - - - 7 - 7
- - - - - 2 - 2
- - 41 - - 41 - 41
(166) - - - (3) (169) - (169)
275 56 82 - (13) 409 22 431
NOTES
Appendices
IAS 1.106A a. The Group has elected to present the disaggregation of changes in each component of equity arising from
transactions recognised in OCI in the notes. Alternatively, an entity may present the disaggregation in the statement
of changes in equity.

Introduction
27. Capital management

IAS 1.134–135(a) The Group’s policy is to maintain a strong capital base so as to maintain investor, creditor and
market confidence and to sustain future development of the business. Management monitors the
return on capital, as well as the level of dividends to ordinary shareholders.
IAS 1.135(a) The board of directors seeks to maintain a balance between the higher returns that might be
possible with higher levels of borrowing and the advantages and security afforded by a sound
capital position. The Group’s target is to achieve a return on capital above 23%; in 2021 the return
was 29.9% (2020: 24.3%). The weighted-average interest expense on interest-bearing borrowings
(excluding liabilities with imputed interest) was 5.8% (2020: 5.5%).
Auditors’ report
Management is considering extending the Group’s share option programme beyond key
management and other senior employees. Currently, other employees are awarded SARs
and participate in an employee share purchase programme (see Note 12(A)). The Group is in
discussions with employee representatives, but no decisions have been made.
IAS 1.135(a) The Group monitors capital using a ratio of ‘net debt’ to ‘adjusted equity’. Net debt is calculated
as total liabilities (as shown in the statement of financial position) less cash and cash equivalents.
Adjusted equity comprises all components of equity other than amounts accumulated in the
hedging and cost of hedging reserves.a
The Group’s policy is to keep the ratio below 2.00. The Group’s net debt to adjusted equity ratio at
31 December 2021 was as follows.
2021 2020
Primary statements
Total liabilities 67,638 54,647

Less: cash and cash equivalents (1,504) (1,849)
Net debt 66,134 52,798
Total equity 45,222 35,366
Less: hedging reserve (433) (491)
Less: cost of hedging reserve (4) 27
Adjusted equity 44,785 34,902
Net debt to adjusted equity ratio 1.48 1.51
* See Note 44.
IAS 1.135(a) From time to time, the Group purchases its own shares on the market; the timing of these
purchases depends on market prices. The shares are primarily intended to be used for issuing
shares under the Group’s share option programme. Buy and sell decisions are made on a specific
NOTES
transaction basis by the risk management committee; the Group does not have a defined share
buy-back plan.
Appendices
a. The Group has provided the definitions of ‘net debt’ and ‘adjusted equity’ because they are relevant to
understanding how it manages capital and are not defined in IFRS Standards. It has also provided the reconciliations
between these measures and items presented in the consolidated financial statements.
Introduction
IFRS 7.8(g) 28. Loans and borrowings
See accounting policies in Notes 45(B)(i)–(ii), (P)(i), (P)(iii), (S)(ii), (T) and (U).
IAS 1.77 Non-current liabilities

Secured bank loans 7,554 8,093
Unsecured bond issues 6,136 9,200
Convertible notes 4,678 -
Redeemable preference shares 1,939 -
Lease liabilities 3,451 3,584
Auditors’ report
23,758 20,877
Current liabilities
Current portion of secured bank loans 1,055 3,985
Unsecured bank loans 503 117
Unsecured bond issues 3,064 -
Dividends on redeemable preference shares 51 -
Current portion of lease liabilities 674 945
Loan from associate 41(C) - 1,000
5,347 6,047
Information about the Group’s exposure to interest rate, foreign currency and liquidity risks is
included in Note 32(C).
Primary statements
NOTES
Appendices

Introduction
28. Loans and borrowings (continued)

IFRS 7.7 A. Terms and repayment schedule
The terms and conditions of outstanding loans are as follows.
Nominal Year of Face Carrying Face Carrying
In thousands of euro Currency interest rate maturity value amount value amount
IFRS 7.42D(e) Secured bank loan

(see Note 18(A)) EUR 3.60–3.90% 2021–22 600 598 1,000 985
Secured bank loan CHF 3.90% 2025 1,240 1,240 1,257 1,257
Auditors’ report
Secured bank loan USD 4.70% 2023–24 1,447 1,447 1,521 1,521
Secured bank loan EUR 4.50% 2023–24 3,460 3,460 3,460 3,460
Secured bank loan GBP SONIA+1.1% 2021–23 1,864 1,864 4,855 4,855
Unsecured bank loan EUR 3.80% 2022 510 503 - -
Unsecured bank loan EUR 5.50% 2021 - - 117 117
Unsecured bond issues EUR LIBOR+0.5% 2025 1,023 1,023 1,023 1,023
Unsecured bond issues EUR LIBOR+1% 2026 5,113 5,113 5,113 5,113
Unsecured bond issues EUR LIBOR 2022 3,064 3,064 3,064 3,064
Loan from associate EUR 4.80% 2021 - - 1,000 1,000
Convertible notes EUR 3.00% 2024 5,000 4,678 - -
Redeemable
preference shares EUR 4.40% 2027 2,051 1,990 - -
Lease liabilities EUR 6.0–7.0% 2021–35 5,697 4,125 5,936 4,529
Primary statements
Total interest-bearing liabilities 31,069 29,105 28,346 26,924

IFRS 7.7, 14, The secured bank loans are secured over land and buildings, inventories and trade receivables with
IAS 16.74(a)
a carrying amount of €5,000 thousand (2020: €4,700 thousand) (see Note 21(D)), €1,650 thousand
(2020: €2,090 thousand) (see Note 17) and €600 thousand (2020: €1,000 thousand) (see
Note 18(A)) respectively.
NOTES
Appendices
Introduction
B. Breach of loan covenant
IFRS 7.18–19 The Group has a secured bank loan with a carrying amount of €3,460 thousand at 31 December
2021 (2020: €3,460 thousand). This loan is repayable in tranches within five years. However, the
loan contained a covenant stating that at the end of each quarter the Group’s debt (defined in
the covenant as the Group’s loans and borrowings and trade and other payables) cannot exceed
2.5 times the Group’s quarterly revenue from continuing operations, otherwise the loan will be
repayable on demand.
The Group exceeded its maximum leverage threshold in the third quarter of 2021 and the
threshold was still exceeded as at 31 December 2021. However, management obtained a waiver
Auditors’ report
from the bank in October 2021, which extended until March 2023. Accordingly, the loan was not
payable on demand at 31 December 2021 (see Note 37).a
C. Convertible notes
Proceeds from issue of convertible notes (1,250,000 notes at €4 par value) 5,000
Transaction costs (250)
Net proceeds 4,750
Amount classified as equity (net of transaction costs of €9 thousand) 14(C) (163)
Accreted interest 91
Carrying amount of liability at 31 December 2021 4,678
These notes were issued on 29 May 2021. They are convertible into 250,000 ordinary shares in
Primary statements
May 2024 at the option of the holder. Any unconverted notes become payable on demand.
D. Redeemable preference shares
In thousands of euro
Proceeds from issue of redeemable preference shares 2,000

Transaction costs (61)
Accrued dividend 51
Carrying amount at 31 December 2021 1,990
During 2021, 1,000,000 redeemable preference shares were issued as fully paid with a par value
of €2 per share (2020: nil). The redeemable preference shares are mandatorily redeemable at par
on 31 May 2027 and the Group is obliged to pay holders of these shares annual dividends of 4.4%
of the par amount on 31 May each year until and including on maturity. Redeemable preference
shares do not carry the right to vote.
NOTES
Appendices
Insights 3.1.40.130 a. In some circumstances, an entity may – before the reporting date – obtain from a lender an agreement to amend
a lending arrangement. Such amendments may defer the date as at which information is assessed for testing
covenant compliance from a date at or before the reporting date to a later date. We believe that in these situations
whether the entity would have breached the related covenant had the agreement not been amended does not affect
the classification of the liability at the reporting date.

Introduction

IAS 7.44A–E E. Reconciliation of movements of liabilities to cash flows arising from
financing activitiesa
Liabilities
Bank
overdrafts
used for cash Other loans
management and Convertible
Auditors’ report
In thousands of euro Note purposes borrowings notes
Balance at 1 January 2021 282 22,395 -

IAS 7.44B(a) Changes from financing cash flows
Proceeds from issue of share capital 26(A) - - -
Proceeds from issue of convertible notes 28(C) - - 4,837
Proceeds from issue of redeemable preference
shares 28(D) - - -
Proceeds from loans and borrowings - 591 -
Proceeds from sale of treasury shares - - -
Proceeds from exercise of share options 26(A) - - -
Proceeds from settlement of derivatives - - -
Primary statements
Transaction costs related to loans and borrowings 28(C)–(D) - - (250)

Acquisition of NCI 36 - - -
Repayment of borrowings - (5,055) -
Payment of lease liabilities - - -
Dividend paid 26(C) - - -
Total changes from financing cash flows - (4,464) 4,587
IAS 7.44B(b) Changes arising from obtaining or losing
control of subsidiaries or other businesses - 500 -
IAS 7.44B(c) The effect of changes in foreign exchange rates - (122) -
IAS 7.44B(d) Changes in fair value - - -
IAS 7.44B(e) Other changes
Liability-related
Change in bank overdraft 19 52 - -
NOTES
New leases 38(A) - - -

Capitalised borrowing costs 21(E), 22(D) - 231 -
Interest expense 10 - 1,061 91
Interest paid - (1,289) -
Total liability-related other changes 52 3 91
Total equity-related other changes - - -
Balance at 31 December 2021 334 18,312 4,678
Appendices
Introduction
Derivatives (assets)/liabilities
held to hedge long-term
Liabilities borrowings Equity
Interest rate Interest rate
swap and swap and
forward forward
exchange exchange
Redeemable contracts used contracts used
preference Lease for hedging – for hedging – Share capital/ Retained
Auditors’ report
shares liabilities assets liabilities premium Reserves earnings NCI Total
- 4,529 (205) 8 18,050 439 13,786 3,091 62,375
- - - - 1,550 - - - 1,550
- - - - - 163 - - 5,000
2,000 - - - - - - - 2,000
- - - - - - - - 591
- - - - 19 11 - - 30
- - - - 50 - - - 50
- - 4 1 - - - - 5
Primary statements
(61) - - - - - - - (311)
- - - - - 8 (93) (115) (200)
- - - - - - - - (5,055)
- (554) - - - - - - (554)
- - - - - - (1,243) - (1,243)
1,939 (554) 4 1 1,619 182 (1,336) (115) 1,863
- - - - 87 - 120 - 707
- - - - - - - - (122)
- - 24 16 - - - - 40
- - - - - - - - 52
NOTES
- 150 - - - - - - 150
- - - - - - - - 231
51 320 - - - - - - 1,523
- (320) - - - - - - (1,609)
51 150 - - - - - - 347
- - - - - 598 7,873 828 9,299
1,990 4,125 (177) 25 19,756 1,219 20,443 3,804 74,509
Appendices
IAS 7.44D–E, 60 a. This example illustrates one possible format to meet the disclosure requirement in paragraphs 44A–E of IAS 7 by
providing a reconciliation between the opening and closing balances for liabilities arising from financing activities.
Other presentation formats are possible. Although the amendments only require disclosure of a reconciliation
of changes in liabilities arising from financing activities, the Group has elected to expand the disclosure to cover
changes in bank overdrafts used for cash management purposes and changes in equity balances arising from
financing activities as well. If an entity provides the disclosures required by paragraph 44A of IAS 7 in combination
with disclosures of changes in other assets and liabilities, then it discloses the changes in liabilities arising from
financing activities separately from changes in those other assets and liabilities.

Introduction

IAS 7.44A–E E. Reconciliation of movements of liabilities to cash flows arising from financing
activities (continued)
Liabilities
Bank
overdrafts
used for cash Other loans
Auditors’ report
management and Convertible

In thousands of euro Note purposes borrowings notes
Restated balance at 1 January 2020 303 20,409 -

IAS 7.44B(a) Changes from financing cash flows
Proceeds from loans and borrowings - 4,439 -
Proceeds from sale of treasury shares - - -
Proceeds from settlement of derivatives - - -
Repayment of borrowings - (2,445) -
Payment of lease liabilities - - -
Dividend paid 26(C) - - -
Total changes from financing cash flows - 1,994 -
IAS 7.44B(c) The effect of changes in foreign exchange
Primary statements
rates - (30) -
IAS 7.44B(d) Changes in fair value - - -
IAS 7.44B(e) Other changes
Liability-related
Change in bank overdraft 19 (21) - -
New leases 21(C) - - -
Capitalised borrowing costs 22(D) - 12 -
Interest expense 10 - 1,061 -
Interest paid - (1,051) -
Total liability-related other changes (21) 22 -
Total equity-related other changes - - -
Balance at 31 December 2020 282 22,395 -
NOTES
Appendices
Introduction
Derivatives (assets)/liabilities
held to hedge long-term
Liabilities borrowings Equity
Interest rate Interest rate
swap and swap and
forward forward
exchange exchange
Redeemable contracts used contracts used
Auditors’ report
preference Lease for hedging – for hedging – Share capital/ Retained
shares liabilities assets liabilities premium Reserves earnings NCI Total
- 4,939 (204) 1 18,050 297 8,497 2,718 55,010
- - - - - - - - 4,439
- - - - - (280) - - (280)
- - 8 3 - - - - 11
- - - - - - - - (2,445)
- (590) - - - - - - (590)
- - - - - - (571) - (571)
- (590) 8 3 - (280) (571) - 564
Primary statements
- - - - - - - - (30)
- - (9) 4 - - - - (5)
- - - - - - - - (21)
- 180 - - - - - - 180
- - - - - - - - 12
- 238 - - - - - - 1,299
- (238) - - - - - - (1,289)
- 180 - - - - - - 181
- - - - - 422 5,860 373 6,655
- 4,529 (205) 8 18,050 439 13,786 3,092 62,375
NOTES
Appendices

Introduction
29. Trade and other payables

See accounting policies in Notes 45(P)(iii) and (iv).
Note 2021 2020
IFRS 7.8(g) Trade payables due to related parties 41 174 351

Trade payables – supply chain financing arrangement 5,515 4,900
Other trade payables 17,016 14,700
Accrued expenses 312 487
Trade payables 23,017 20,438
Auditors’ report
Forward exchange contracts used for hedging 32(C)–(D) 8 7

Interest rate swaps used for hedging 32(C)–(D) 20 5
Contingent consideration 34(A)(iii) 270 -
Refund liabilities 8(D) 988 883
Other payables 1,286 895
24,303 21,333
Non-current 290 5
Current 24,013 21,328
24,303 21,333
* See Note 44.
Information about the Group’s exposure to currency and liquidity risks is included in Note 32(C).
Primary statements
The Group participates in a supply chain financing arrangement (SCF) under which its suppliers
may elect to receive early payment of their invoice from a bank by factoring their receivable from
the Group. Under the arrangement, a bank agrees to pay amounts to a participating supplier in
respect of invoices owed by the Group and receives settlement from the Group at a later date. The
principal purpose of this arrangement is to facilitate efficient payment processing and enable the
willing suppliers to sell their receivables due from the Group to a bank before their due date.
The Group has not derecognised the original liabilities to which the arrangement applies because
neither a legal release was obtained nor the original liability was substantially modified on entering
into the arrangement. From the Group’s perspective, the arrangement does not significantly
extend payment terms beyond the normal terms agreed with other suppliers that are not
participating. The Group does not incur any additional interest towards the bank on the amounts
due to the suppliers. The Group therefore discloses the amounts factored by suppliers within
trade payables because the nature and function of the financial liability remain the same as those
of other trade payables but discloses disaggregated amounts in the notes. All payables under the
NOTES
SCF are classified as current as at 31 December 2021 and 2020.

IAS 7.43 The payments to the bank are included within operating cash flows because they continue to be
part of the normal operating cycle of the Group and their principal nature remains operating – i.e.
payments for the purchase of goods and services. The payments to a supplier by the bank are
considered non-cash transactions and amount to €3,860 thousand (2020: €3,430 thousand).
Appendices
Introduction
30. Government grants
See accounting policies in Notes 8(D) and 45(F)–(G).
a
Deferred income – Asset acquisition (A) 1,424 1,462
1,424 1,462
Non-current 1,424 1,462
Current - -
1,424 1,462
Auditors’ report
A. Asset acquisitions
IAS 20.39(b)–(c) In 2020, the Group was awarded a grant, amounting to €1,462 thousand, conditional on the
acquisition of factory premises in a specified region. The factory has been in operation since early
2021 and the grant, recognised as deferred income, is being amortised over the useful life of the
building. In accordance with the terms of the grant, the Group is prohibited from selling the factory
premises for a period of 15 years from the date of the grant.
B. Emissions schemesb
IAS 20.39(b)–(c) The Group participates in a ‘cap and trade’ scheme in various countries. Under the scheme, at
the beginning of each year the government in each country sets specific annual limits for emitting
pollutants and grants the Group the respective number of emissions certificates. The Group
recognises emissions certificates and the related deferred income at the fair value of certificates
Primary statements
granted, which is determined based on the quoted market price of certificates traded in an active
market. When the Group emits pollutants and recognises a liability (see Note 31(D)), it reduces
the related expense in profit or loss by releasing the deferred income. In 2021, the Group received
emissions certificates amounting to €115 thousand (2020: €120 thousand) (see Note 22). The
Group emitted pollutants above the limit in 2021 and 2020, and therefore the deferred income
related to this grant as at 31 December 2021 is nil (2020: nil).
C. New pine tree plantations
IAS 41.57(a)–(b) In 2021, the Group was awarded an unconditional grant, amounting to €200 thousand, for
plantations of pine trees in a specified region. This grant was recognised in profit or loss in full and
presented in ‘other income’ when it became receivable (see Note 9(A)). There is no outstanding
balance of deferred income related to this grant as at 31 December 2021.
NOTES
IAS 20.24, a. The Group has elected to present government grants related to assets as deferred income. Alternatively, an entity
Insights may present these grants as a deduction in arriving at the carrying amount of the asset.
4.3.130.60
The deferred income is generally classified as a non-current liability when an entity presents a classified statement
Appendices
of financial position.
IAS 20.23, b. In our view, if emissions certificates are received from a government for less than their fair value, then the entity
Insights 4.3.110.10 should choose an accounting policy, to be applied consistently, either to recognise the resulting government grant
at fair value (as the difference between the fair value of the certificates and the consideration (if any) paid) or to
recognise them at the nominal amount paid for the certificates. IAS 20 notes that fair value is the usual approach for
non-monetary grants.
The Group has elected to account for the government grant related to emissions certificates at their fair value.

Introduction
31. Provisions
See accounting policy in Note 45(T).
Site Onerous Emissions
In thousands of euro Note Warranties Restructuring restoration contracts schemes Legal Total
Balance at
IAS 37.84(a) 1 January 2021 200 460 740 - 140 - 1,540
Assumed in
a business
combination 34 - - 150 - - 20 170
Provisions made
Auditors’ report
IAS 37.84(b) during the year 280 280 660 160 120 - 1,500
Provisions used
IAS 37.84(c) during the year 22 (200) (360) (800) - (140) - (1,500)
IAS 37.84(d) Provisions reversed
during the yeara - (100) - - - - (100)
IAS 37.84(e) Unwind of discount 10 - - 60 - - - 60
IAS 37.84(a) Balance at
31 December 2021 280 280 810 160 120 20 1,670
Non-current 100 - 810 100 - - 1,010
Current 180 280 - 60 120 20 660
280 280 810 160 120 20 1,670
Primary statements
A. Warranties
IAS 37.85(a)–(c) The provision for warranties relates mainly to paper sold during 2020 and 2021. The provision
has been estimated based on historical warranty data associated with similar products and
services. The Group expects to settle the majority of the liability over the next year. An expected
reimbursement of warranty expense incurred of €25 thousand has been included in ‘other trade
receivables’ (see Note 18) following a supplier accepting responsibility for the defective products.
B. Restructuring
IAS 1.98(b), 125, During 2021, a provision of €280 thousand was made to cover the costs associated with
37.85(a)–(b)
restructuring part of a manufacturing facility within the Non-recycled Papers segment that will be
retained when the remainder of the facility is sold (see Note 20). Estimated restructuring costs
mainly include employee termination benefits (see Note 13(E)) and are based on a detailed plan
agreed between management and employee representatives. The restructuring and the sale are
expected to be completed by June 2022.
During 2020, the Group committed to a plan to restructure a product line in the American Paper
NOTES
manufacturing and distribution division due to a decrease in demand as a result of a deterioration in

economic conditions. Following the announcement of the plan, the Group recognised a provision
of €460 thousand for expected restructuring costs, including contract termination costs, consulting
fees and employee termination benefits (see Note 13(E)). Estimated costs were based on the
terms of the relevant contracts. The restructuring was completed in 2021, and €360 thousand of
the provision was used during the year. The unused provision of €100 thousand was reversed and
has been included in ‘cost of sales’.
Appendices
Insights 3.12.850 a. In our view, in the statement of profit or loss and OCI, the reversal of a provision should be presented in the same
line item as the original estimate.
Introduction
31. Provisions (continued)
C. Site restoration
i. France
IAS 37.85(a) A provision of €740 thousand was made during 2020 and an unwind of the discount of
€60 thousand was recognised in 2021 in respect of the Group’s obligation to rectify environmental
damage in France. The required work was completed during 2021 at a cost of €800 thousand.
ii. Romania
IAS 1.125,129, Under Romanian law, the Group’s subsidiary in Romania is required to restore contaminated land
37.85(a)–(b)
to its original condition before the end of 2024. During 2021, the Group provided €660 thousand
Auditors’ report
for this purpose.
Because of the long-term nature of the liability, the greatest uncertainty in estimating the provision
is the costs that will be incurred. In particular, the Group has assumed that the site will be restored
using technology and materials that are currently available. The Group has been provided with a
range of reasonably possible outcomes for the total cost, which range from €500 thousand to
€700 thousand, reflecting different assumptions about pricing of the individual components of the
cost. The provision has been calculated using a discount rate of 5.9%, which is the risk-free rate in
Romania. The rehabilitation is expected to occur in the next two to three years.
IAS 34.26 The provision has increased compared with the amount of €500 thousand reported in the
Company’s interim financial statements as at 30 June 2021 due to a change in estimated costs. At
the time of preparing the interim financial statements, the extent of restoration work required was
uncertain, because the inspection report by the Romanian authorities had not yet been finalised.
Primary statements
The estimates were subsequently revised based on the final report.
iii. Acquisition of Papyrus

As part of the acquisition of Papyrus, the Group recognised environmental provisions of
€150 thousand, measured on a provisional basis (see Note 34(C)).
D. Emissions schemes
IAS 37.85(a) The Group participates in a ‘cap and trade’ scheme in various countries (see Note 30(B)). The
Group recognises a liability to surrender emissions certificates as it emits pollutants. The liability
is measured based on the carrying amount of the certificates on hand to the extent of emissions
within the annual limit (see Note 22), and at the current market value of certificates to the extent
that the Group would be required to purchase additional certificates to settle the obligation.
During 2021, the Group recognised a provision for pollutants emitted of €120 thousand. The
provision will be settled by surrendering the emissions certificates to the government in 2022.
A provision of €140 thousand at 31 December 2020 was settled in 2021 in a similar manner. NOTES
E. Legal
IAS 37.86(a)–(b) As a result of the acquisition of Papyrus, the Group assumed a contingent liability of €20 thousand,
measured on a provisional basis (see Note 34(C)).
F. Levies
IAS 37.85(a) The Group operates in a number of countries in which it is subject to government levies. It
assesses the timing of when to accrue environmental taxes imposed by legislation at the end of
the tax year (31 March) on entities that manufacture pulp products. The Group recognised a liability
to pay environmental taxes on 31 March, when the obligating event as stated in the legislation
occurred. It paid that liability in full at a later date.
Therefore, at 31 December 2021 no liability for environmental taxes has been recognised. An
expense of €102 thousand has been recognised in profit or loss for the year ended 31 December
Appendices
2021.

Introduction
32. Financial instruments – Fair values and risk management

FINANCIAL INSTRUMENTS
A. Accounting classifications and fair valuesa, b

IFRS 7.8, 25–26, 29, The following table shows the carrying amounts and fair values of financial assets and financial
13.93(a)–(b), 94, 97, 99 liabilities, including their levels in the fair value hierarchy. It does not include fair value information
for financial assets and financial liabilities not measured at fair value if the carrying amount is a
reasonable approximation of fair value.
Trade and other receivables and trade and other payables classified as held-for-sale are not included
in the table below (see Note 20). Their carrying amount is a reasonable approximation of fair value.
Carrying amount
Auditors’ report
Fair value –
31 December 2021 hedging Mandatorily at FVOCI – debt
In thousands of euro Note instruments FVTPL – others instruments
Financial assets measured at fair value

Interest rate swaps used for hedging 25 116 - -
Forward exchange contracts used for hedging 25 297 - -
Other forward exchange contracts 25 - 122 -
Sovereign debt securities 25 - 243 -
Corporate debt securities 25 - - 118
Equity securities 25 - 251 -
413 616 118
Financial assets not measured at fair value
Primary statements
Trade and other receivables 18 - - -

Cash and cash equivalents 19 - - -
Corporate debt securities 25 - - -
- - -
Financial liabilities measured at fair value
Interest rate swaps used for hedging 29 (20) - -
Forward exchange contracts used for hedging 29 (8) - -
Contingent consideration 29 - (270) -
(28) (270) -
Financial liabilities not measured at fair value
Bank overdrafts 19 - - -
Secured bank loans 28 - - -
Unsecured bank loans 28 - - -
Unsecured bond issues 28 - - -
NOTES
Convertible notes – liability component 28 - - -

Redeemable preference shares 28 - - -
Dividends payable on redeemable shares 28 - - -
Trade and other payables* 29 - - -
- - -
* Other payables that are not financial liabilities (refund liabilities recognised under IFRS 15 – €988 thousand) are
not included.
Appendices
Financial instruments
Introduction
Carrying amount Fair value
Auditors’ report
Financial assets
FVOCI – equity at amortised Other financial
instruments cost liabilities Total Level 1 Level 2 Level 3 Total
- - - 116 - 116 - 116

- - - 297 - 297 - 297
- - - 122 - 122 - 122
- - - 243 43 200 - 243
- - - 118 48 70 - 118
710 - - 961 961 - - 961
710 - - 1,857
Primary statements
- 32,518 - 32,518
- 1,504 - 1,504
- 2,421 - 2,421 2,461 - - 2,461
- 36,443 - 36,443
- - - (20) - (20) - (20)

- - - (8) - (8) - (8)
- - - (270) - - (270) (270)
- - - (298)
- - (334) (334)
- - (8,609) (8,609) - (8,979) - (8,979)
- - (503) (503) - (505) - (505)
- - (9,200) (9,200) - (9,675) - (9,675) NOTES
- - (4,678) (4,678) - (4,671) - (4,671)
- - (1,939) (1,939) - (1,936) - (1,936)
- - (51) (51) - (51) - (51)
- - (23,017) (23,017)
- - (48,331) (48,331)
IFRS 7.8, 29 a. In this table, the Group has disclosed the fair value of each class of financial assets and financial liabilities in a way
that permits the information to be compared with the carrying amounts. In addition, it has reconciled the assets
and liabilities to the different categories of financial instruments as defined in IFRS 9. This presentation method is
Appendices
optional and different presentation methods may be appropriate, depending on circumstances.

The Group has not disclosed the fair values of financial instruments such as short-term trade receivables and
payables, because their carrying amounts are a reasonable approximation of fair value.
IFRS 7.6, B1–B3 b. An entity groups financial instruments into classes that are appropriate to the nature of the information disclosed
and that take into account the characteristics of those financial instruments. Although IFRS 7 does not define
‘classes’, as a minimum instruments measured at amortised cost should be distinguished from instruments
measured at fair value.

Introduction

(continued)
A. Accounting classifications and fair values (continued)
Carrying amount
Fair value –
31 December 2020 hedging Mandatorily at FVOCI – debt
In thousands of euro Note instruments FVTPL – others instruments
Financial assets measured at fair value

Interest rate swaps used for hedging 25 131 - -
Forward exchange contracts used for hedging 25 352 - -
Auditors’ report
Other forward exchange contracts 25 - 89 -

Sovereign debt securities 25 - 591 -
Corporate debt securities 25 - - 373
Equity securities 25 - 254 -
483 934 373
Financial assets not measured at fair value
Trade and other receivables 18 - - -
Cash and cash equivalents 19 - - -
Corporate debt securities 25 - - -
- - -
Financial liabilities measured at fair value
Primary statements
Interest rate swaps used for hedging 29 (5) - -

Forward exchange contracts used for hedging 29 (7) - -
Contingent consideration 29 - - -
(12) - -
Financial liabilities not measured at fair value
Bank overdrafts 19 - - -
Secured bank loans 28 - - -
Unsecured bank loans 28 - - -
Unsecured bond issues 28 - - -
Loan from associate - - -
Trade and other payables* 29 - - -
- - -
* Other payables that are not financial liabilities (refund liabilities recognised under IFRS 15 – €883 thousand) are
not included.
NOTES
Appendices
Introduction
Carrying amount Fair value
Financial assets
FVOCI – equity at amortised Other financial
instruments cost liabilities Total Level 1 Level 2 Level 3 Total
- - - 131 - 131 - 131

- - - 352 - 352 - 352
Auditors’ report
- - - 89 - 89 - 89
- - - 591 81 510 - 591
- - - 373 151 222 - 373
511 - - 765 540 - 225 765
511 - - 2,301
- 22,325 - 22,325
- 1,849 - 1,849
- 2,243 - 2,243 2,249 - - 2,249
- 26,417 - 26,417
Primary statements
- - - (5) - (5) - (5)
- - - (7) - (7) - (7)
- - - - - - - -
- - - (12)
- - (282) (282)
- - (12,078) (12,078) - (12,078) - (12,078)
- - (117) (117) - (117) - (117)
- - (9,200) (9,200) - (9,301) - (9,301)
- - (1,000) (1,000) - (997) - (997)
- - (20,438) (20,438)
- - (43,115) (43,115)
NOTES
Appendices

Introduction

(continued)
i. Valuation techniques and significant unobservable inputs
The following tables show the valuation techniques used in measuring Level 2 and Level 3 fair
values for financial instruments in the statement of financial position, as well as the significant
unobservable inputs used. Related valuation processes are described in Note 4(B).
IFRS 13.91(a), 93(d), Financial instruments measured at fair value
93(h)(i), 99
Auditors’ report
Inter-relationship between
significant unobservable
Significant unobservable inputs and fair value
Type Valuation technique inputs measurement
IFRS 3.B67(b)(iii) Contingent Discounted cash flows: The – Expected cash flows The estimated fair value
consideration valuation model considers the (31 December 2021: would increase (decrease) if:
present value of the expected €318 – €388 thousand). – the expected cash flows
future payments, discounted – Risk-adjusted discount were higher (lower); or
using a risk-adjusted discount rate (31 December 2021: – the risk-adjusted discount
rate. 15%). rate were lower (higher).
Equity Market comparison – Adjusted market multiple The estimated fair value
securities technique: The valuation (2020: 4–7). would increase (decrease) if
model is based on market the adjusted market multiple
Primary statements
multiples derived from were higher (lower).

quoted prices of companies
comparable to the investee,
adjusted for the effect of
the non-marketability of the
equity securities, and the
revenue and EBITDA of the
investee. The estimate is
adjusted for the net debt of
the investee.
Corporate debt Market comparison/ Not applicable. Not applicable.

securities discounted cash flow: The fair
value is estimated considering
(i) current or recent quoted
prices for identical securities
in markets that are not active
and (ii) a net present value
NOTES
calculated using discount

rates derived from quoted
yields of securities with
similar maturity and credit
rating that are traded in active
markets, adjusted by an
illiquidity factor.
Appendices
Introduction
(continued)
i. Valuation techniques and significant unobservable inputs (continued)
IFRS 13.91(a), 93(d), Financial instruments measured at fair value (continued)
93(h)(i), 99
Inter-relationship between
significant unobservable
Significant unobservable inputs and fair value
Type Valuation technique inputs measurement
Forward Forward pricing: The fair value Not applicable. Not applicable.
Auditors’ report
exchange is determined using quoted
contracts forward exchange rates at the
reporting date and present
value calculations based on
high credit quality yield curves
in the respective currencies.
Interest rate Swap models: The fair value Not applicable. Not applicable.
swaps is calculated as the present
value of the estimated future
cash flows. Estimates of
future floating-rate cash flows
are based on quoted swap
rates, futures prices and
interbank borrowing rates.
Primary statements
Estimated cash flows are
discounted using a yield curve
constructed from similar
sources and which reflects
the relevant benchmark
interbank rate used by market
participants for this purpose
when pricing interest rate
swaps. The fair value estimate
is subject to a credit risk
adjustment that reflects
the credit risk of the Group
and of the counterparty;
this is calculated based on
credit spreads derived from
current credit default swap or
bond prices.
IFRS 13.93(d), 97 Financial instruments not measured at fair value NOTES

Type Valuation technique
Other financial Discounted cash flows: The

liabilities* valuation model considers
the present value of expected
payments, discounted using a
risk-adjusted discount rate.
* Other financial liabilities include secured and unsecured bank loans, unsecured bond issues, convertible
notes – liability component, redeemable preference shares and loans from associates.
Appendices

Introduction

(continued)
ii. Transfers between Levels 1 and 2
IFRS 13.93(c), 95 At 31 December 2021, FVOCI corporate debt securities with a carrying amount of €40 thousand
were transferred from Level 1 to Level 2 because quoted prices in the market for such debt
securities were no longer regularly available. To determine the fair value of such debt securities,
management used a valuation technique in which all significant inputs were based on observable
market data (see Note 32(B)(i)). There were no transfers from Level 2 to Level 1 in 2021 and no
transfers in either direction in 2020.
Auditors’ report
iii. Level 3 recurring fair values

Reconciliation of Level 3 fair values
The following table shows a reconciliation from the opening balances to the closing balances for
Level 3 fair values.
Equity Contingent
In thousands of euro Note securities consideration
Balance at 1 January 2020 - -

IFRS 13.91(b), 93(e)(ii) Gain included in OCI
– Net change in fair value (unrealised) 13 -
IFRS 13.93(e)(iii) Purchases 212 -
Primary statements
Balance at 31 December 2020 225 -

Balance at 1 January 2021 225 -
IFRS 13.93(e)(iii) Assumed in a business combination 34(A) - (250)
IFRS 13.91(b), 93(e)(i),
(f) Loss included in ‘finance costs’
– Net change in fair value (unrealised) 10 - (20)
IFRS 13.91(b), 93(e)(ii) Gain included in OCI
– Net change in fair value (unrealised) 18 -
IFRS 13.93(e)(iv) Transfers out of Level 3 (243) -
Balance at 31 December 2021 - (270)
Transfer out of Level 3
IFRS 13.93(e)(iv), 95 The Group holds an investment in equity shares of MSE Limited with a fair value of €243 thousand
at 31 December 2021 (2020: €225 thousand). The fair value of this investment was categorised
as Level 3 at 31 December 2020 (for information on the valuation technique, see B(i)). This was
NOTES
because the shares were not listed on an exchange and there were no recent observable arm’s
length transactions in the shares.
During 2021, MSE Limited listed its equity shares on an exchange and they are currently actively
traded in that market. Because the equity shares now have a published price quotation in an
active market, the fair value measurement was transferred from Level 3 to Level 1 of the fair value
hierarchy at 31 December 2021.
Appendices
Introduction
(continued)
iii. Level 3 recurring fair values (continued)
IFRS 13.93(h)(ii) Sensitivity analysis
For the fair values of contingent consideration and equity securities, reasonably possible changes
at the reporting date to one of the significant unobservable inputs, holding other inputs constant,
would have the following effects.
Contingent consideration Profit or loss
Auditors’ report
Effect in thousands of euro Increase Decrease
31 December 2021
Expected cash flows (10% movement) (23) 23
Risk-adjusted discount rate (1% movement (100 bps)) 6 (6)
Equity securities OCI, net of tax
Effect in thousands of euro Increase Decrease
31 December 2020
Adjusted market multiple (5% movement) 81 (81)
C. Financial risk managementa
Primary statements
The Group has exposure to the following risks arising from financial instruments:
– credit risk (see (C)(ii));
– liquidity risk (see (C)(iii)); and
– market risk (see (C)(iv)).
i. Risk management framework

IFRS 7.31, 33(b) The Company’s board of directors has overall responsibility for the establishment and oversight
of the Group’s risk management framework. The board of directors has established the risk
management committee, which is responsible for developing and monitoring the Group’s risk
management policies. The committee reports regularly to the board of directors on its activities.
The Group’s risk management policies are established to identify and analyse the risks faced
by the Group, to set appropriate risk limits and controls and to monitor risks and adherence to
limits. Risk management policies and systems are reviewed regularly to reflect changes in market
conditions and the Group’s activities. The Group, through its training and management standards NOTES
and procedures, aims to maintain a disciplined and constructive control environment in which all
employees understand their roles and obligations.
The Group audit committee oversees how management monitors compliance with the Group’s
risk management policies and procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Group. The Group audit committee is assisted in its
oversight role by internal audit. Internal audit undertakes both regular and ad hoc reviews of risk
management controls and procedures, the results of which are reported to the audit committee.
Appendices
IFRS 7.34 a. The financial risk disclosures presented are only illustrative and reflect the facts and circumstances of the Group.
In particular, IFRS 7 requires the disclosure of summary quantitative data about an entity’s risk exposures based on
information provided internally to an entity’s key management personnel, although certain minimum disclosures are
also required to the extent that they are not otherwise covered by the disclosures made under the ‘management
approach’ above.

Introduction

(continued)
C. Financial risk management (continued)
IFRS 7.31, 33 ii. Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial
instrument fails to meet its contractual obligations, and arises principally from the Group’s
receivables from customers and investments in debt securities.
IFRS 7.35K(a), 36(a) The carrying amounts of financial assets and contract assets represent the maximum credit
exposure.
Auditors’ report
IAS 1.82(ba) Impairment losses on financial assets and contract assets recognised in profit or loss were
as follows.
IFRS 15.113(b) Impairment loss on trade receivables and contract assets arising from
contracts with customers* 210 192
Impairment loss on lease receivable 1 1
Impairment loss on debt securities at amortised cost 62 13
Impairment loss (reversal) on debt securities at FVOCI (3) -
270 206
* Of which, €11 thousand (2020: €3 thousand) related to a discontinued operation (see Notes 6 and 7).
Primary statements
Trade receivables and contract assets

IFRS 7.33(a)–(b) The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each
customer. However, management also considers the factors that may influence the credit risk of
its customer base, including the default risk associated with the industry and country in which
customers operate. Details of concentration of revenue are included in Notes 6(D)–(E).
The risk management committee has established a credit policy under which each new customer
is analysed individually for creditworthiness before the Group’s standard payment and delivery
terms and conditions are offered. The Group’s review includes external ratings, if they are available,
financial statements, credit agency information, industry information and in some cases bank
references. Sale limits are established for each customer and reviewed quarterly. Any sales
exceeding those limits require approval from the risk management committee.
The Group limits its exposure to credit risk from trade receivables by establishing a maximum
payment period of one and three months for individual and corporate customers respectively.
More than 85% of the Group’s customers have been transacting with the Group for over
NOTES
four years, and none of these customers’ balances have been written off or are credit-impaired at
the reporting date. In monitoring customer credit risk, customers are grouped according to their
credit characteristics, including whether they are an individual or a legal entity, whether they are a
wholesale, retail or end-user customer, their geographic location, industry, trading history with the
Group and existence of previous financial difficulties.
IFRS 7.33(c) The Group is monitoring the economic environment in [Region Z] and is taking actions to limit its
exposure to customers in countries experiencing particular economic volatility. In 2021, certain
purchase limits have been reduced, particularly for customers operating in [Countries A, B, C, D
and E], because the Group’s experience is that the recent economic volatility has had a greater
impact for customers in those countries than for customers in other countries.
IFRS 7.35K(b), B8G The Group does not require collateral in respect of trade and other receivables. The Group does not
have trade receivable and contract assets for which no loss allowance is recognised because of
Appendices
collateral.
The quantitative information below on trade receivables and contract assets includes amounts
classified as held-for-sale (see Note 20).
Introduction
(continued)
ii. Credit risk (continued)
Trade receivables and contract assets (continued)
IFRS 7.34(a), (c) At 31 December 2021, the exposure to credit risk for trade receivables and contract assets by
geographic region was as follows.a
Carrying amount
Auditors’ report
[Countries A, B, C, D and E] 1,598 1,583
Other [Region Z] countries 24,027 13,649
US 11,374 7,687
Other regions 286 188
37,285 23,107
IFRS 7.34(a), (c) At 31 December 2021, the exposure to credit risk for trade receivables and contract assets by type
of counterparty was as follows.a
Carrying amount
Wholesale customers 27,588 15,051

Retail customers 9,246 7,145
Primary statements
End-user customers 342 820
Other 109 91
37,285 23,107
IFRS 7.34(a), (c) At 31 December 2021, the carrying amount of the receivable from the Group’s most significant
customer (a European wholesaler) was €8,034 thousand (2020: €4,986 thousand).
IFRS 7.34(a), 35M, B8I A summary of the Group’s exposure to credit risk for trade receivables and contract assets is as
follows.
2021 2020
Not credit- Credit- Not credit- Credit-

In thousands of euro impaired impaired impaired impaired
External credit ratings at least Baa3 from [Rating

Agency X] or BBB- from [Rating Agency Y] 6,397 - 5,139 -
Other customers: NOTES
– Four or more years’ trading history with the
Group* 21,298 - 14,230 -
– Less than four years’ trading history with the
Group* 8,735 - 3,290 -
– Higher risk 952 223 446 216
Total gross carrying amount 37,382 223 23,105 216
Loss allowance (246) (74) (138) (76)
37,136 149 22,967 140
* Excluding ‘higher risk’.
Appendices
IFRS 7.IG18 a. Identifying concentrations of risk requires judgement in light of specific circumstances, and may arise from industry
sectors, credit ratings, geographic distribution or a limited number of individual counterparties.

Introduction

(continued)
Expected credit loss assessment for corporate customers
IFRS 7.35B(a), 35F(c), The Group allocates each exposure to a credit risk grade based on data that is determined to
35G(a)–(b)
be predictive of the risk of loss (including but not limited to external ratings, audited financial
statements, management accounts and cash flow projections and available press information
Auditors’ report
about customers) and applying experienced credit judgement. Credit risk grades are defined
using qualitative and quantitative factors that are indicative of the risk of default and are aligned to
external credit rating definitions from agencies [Rating Agencies X and Y].
Exposures within each credit risk grade are segmented by geographic region and industry
classification and an ECL rate is calculated for each segment based on delinquency status and
actual credit loss experience over the past seven years. These rates are multiplied by scalar factors
to reflect differences between economic conditions during the period over which the historical
data has been collected, current conditions and the Group’s view of economic conditions over the
expected lives of the receivables.
Scalar factors are based on GDP forecast and industry outlook and include the following: 1.3 (2020:
1.2) for [Country X], 0.9 (2020: 0.8) for [Country Y], 1.1 (2020: 1.2) for [Country Z] and 1.8 (2020: 1.9)
for [Industry A].
Primary statements
IFRS 7.35M, B8I The following table provides information about the exposure to credit risk and ECLs for trade
receivables and contract assets for corporate customers as at 31 December 2021.
Weighted- Gross Impairment
31 December 2021 Equivalent to external average carrying loss Credit-
In thousands of euro credit rating [Agency Y] loss rate amount allowance impaired
Grades 1–6: Low risk BBB- to AAA 0.30% 9,163 (27) No

Grades 7–9: Fair risk BB- to BB+ 0.60% 16,094 (97) No
Grade 10: Substandard B- to CCC- 2.60% 1,633 (42) No
Grade 11: Doubtful C to CC 23.20% 118 (27) Yes
Grade 12: Loss D 44.90% 67 (30) Yes
27,075 (223)
Expected credit loss assessment for individual customers
IFRS 7.35B(a), 35F(c), The Group uses an allowance matrix to measure the ECLs of trade receivables from individual
NOTES
35G(a)–(b)
customers, which comprise a very large number of small balances.
Loss rates are calculated using a ‘roll rate’ method based on the probability of a receivable
progressing through successive stages of delinquency to write-off. Roll rates are calculated
separately for exposures in different segments based on the following common credit risk
characteristics – geographic region, age of customer relationship and type of product purchased.
Appendices
Introduction
(continued)
Expected credit loss assessment for individual customers (continued)
IFRS 7.35M, 35N, B8I The following table provides information about the exposure to credit risk and ECLs for trade
receivables and contract assets from individual customers as at 31 December 2021.
Weighted- Gross
Auditors’ report
31 December 2021 average carrying Loss Credit-
In thousands of euro loss rate amount allowance impaired
Current (not past due) 0.40% 8,511 (34) No

1–30 days past due 1.10% 1,638 (18) No
31–60 days past due 5.60% 232 (13) No
61–90 days past due 13.20% 111 (15) No
More than 90 days past due 43.60% 38 (17) Yes
10,530 (97)
Loss rates are based on actual credit loss experience over the past seven years. These rates are
multiplied by scalar factors to reflect differences between economic conditions during the period
over which the historical data has been collected, current conditions and the Group’s view of
Primary statements
economic conditions over the expected lives of the receivables.
Scalar factors are based on actual and forecast unemployment rates and are as follows: 1.3 (2020:
1.2) for [Country X], 0.95 (2020: 1.0) for [Country Y] and 1.2 (2020: 1.1) for [Country Z].
Expected credit loss assessment for corporate customers

IFRS 7.35M, B8I The following table provides information about the exposure to credit risk and ECLs for trade
receivables and contract assets for corporate customers as at 31 December 2020.
Equivalent to Weighted- Gross Impairment
31 December 2020 external credit average carrying loss Credit-
In thousands of euro rating [Agency Y] loss rate amount allowance impaired
Grades 1–6: Low risk BBB- to AAA 0.20% 4,786 (10) No

Grades 7–9: Fair risk BB- to BB+ 0.60% 8,141 (49) No
Grade 10: Substandard B- to CCC- 2.60% 865 (22) No
Grade 11: Doubtful C to CC 24.20% 100 (24) Yes
Grade 12: Loss D 44.80% 101 (45) Yes NOTES
13,993 (150)
Expected credit loss assessment for individual customers
IFRS 7.35M, 35N, B8I The following table provides information about the exposure to credit risk and ECLs for trade
receivables and contract assets from individual customers as at 31 December 2020.
Weighted- Gross
31 December 2020 average carrying Loss Credit-
In thousands of euro loss rate amount allowance impaired
Current (not past due) 0.30% 7,088 (21) No

1–30 days past due 1.10% 2,012 (22) No
31–60 days past due 5.60% 193 (11) No
61–90 days past due 14.60% 20 (3) No
Appendices
More than 90 days past due 43.50% 15 (7) Yes

9,328 (64)

Introduction

(continued)
Movements in the allowance for impairment in respect of trade receivables and contract assets
IFRS 7.35H The movement in the allowance for impairment in respect of trade receivables and contract assets
during the year was as follows.
Auditors’ report
Balance at 1 January 214 26

Amounts written off (80) (5)
Amounts derecognised due to discontinued operation (25) -
Net remeasurement of loss allowance 211 193
Balance at 31 December 320 214
IFRS 7.35L Trade receivables with a contractual amount of €70 thousand written off during 2021 are still
subject to enforcement activity.
IFRS 7.35I, B8D The following significant changes in the gross carrying amounts of trade receivables contributed to
the changes in the impairment loss allowance during 2021:
– the growth of the business in [Countries A, B, X and Y] resulted in increases in trade receivables
Primary statements
of €4,984 thousand (2020: €2,356 thousand) and €4,556 thousand (2020: €2,587 thousand)
respectively and increases in impairment allowances of €30 thousand (2020: €14 thousand) and
€44 thousand (2020: €23 thousand) respectively;
– increases in credit-impaired balances in [Countries D and Z] of €143 thousand (2020:
€98 thousand) resulted in increases in impairment allowances of €47 thousand (2020:
€44 thousand); and
– a decrease in trade receivables of €3,970 thousand attributed to the Packaging segment, which
was sold in February 2021 (see Note 7), resulted in a decrease in the loss allowance in 2021 of
€25 thousand.
NOTES
Appendices
Introduction
(continued)
Debt securities
IFRS 7.33(a)–(b), The Group limits its exposure to credit risk by investing only in liquid debt securities and only with
35B(a), 35F(a),
35G(a)–(b)
counterparties that have a credit rating of at least A2 from [Rating Agency X] and A from [Rating
Agency Y].
The Group monitors changes in credit risk by tracking published external credit ratings. To
Auditors’ report
determine whether published ratings remain up to date and to assess whether there has been
a significant increase in credit risk at the reporting date that has not been reflected in published
ratings, the Group supplements this by reviewing changes in bond yields and, where available,
credit default swap (CDS) prices together with available press and regulatory information
about debtors.
12-month and lifetime probabilities of default are based on historical data supplied by
[Rating Agency X] for each credit rating and are recalibrated based on current bond yields and
CDS prices. Loss given default (LGD) parameters generally reflect an assumed recovery rate of
40% except when a security is credit-impaired, in which case the estimate of loss is based on the
instrument’s current market price and original effective interest rate.
IFRS 7.34(a), (c) The exposure to credit risk for debt securities at amortised cost, FVOCI and FVTPL at the reporting
date by geographic region was as follows.
Primary statements
Net carrying amount
[Country X] 1,615 2,338

[Countries A, B, C, D and E] 68 115
Other [Region Z] countries 366 273
UK 435 430
US 298 51
2,782 3,207
NOTES
Appendices

Introduction

(continued)
Debt securities (continued)
IFRS 7.34(a), 35M, B8I The following table presents an analysis of the credit quality of debt securities at amortised cost,
FVOCI and FVTPL. It indicates whether assets measured at amortised cost or FVOCI were subject
to a 12-month ECL or lifetime ECL allowance and, in the latter case, whether they were credit-
impaired.
Auditors’ report
2021 2020
Credit rating FVTPL FVOCI At amortised cost FVTPL FVOCI At amortised cost
Lifetime Lifetime
ECL – Lifetime ECL – Lifetime
12- 12- not ECL – 12- 12- not ECL –
month month credit- credit- month month credit- credit-
In thousands of euro ECL ECL impaired impaired ECL ECL impaired impaired
BBB- to AAA 243 122 1,764 - - 591 378 1,569 - -

BB- to BB+ - - - 207 - - - - 334 -
B- to B+ - - - 113 - - - - 233 -
C to CCC+ - - - 247 - - - - 73 -
D - - - - 185 - - - - 67
Primary statements
Gross carrying
amounts 122 1,764 567 185 378 1,569 640 67
Loss allowance (1) (15) (25) (55) (4) (7) (7) (19)
Amortised cost 121 1,749 542 130 374 1,562 633 48
Carrying
amount 243 118 1,749 542 130 591 373 1,562 633 48
IFRS 7.35I An impairment allowance of €55 thousand (2020: €19 thousand) in respect of debt securities at
amortised cost with a credit rating of D was recognised because of significant financial difficulties
being experienced by the debtors. The Group has no collateral in respect of these investments.
NOTES
Appendices
Introduction
(continued)
IFRS 7.35H, 42P The movement in the allowance for impairment for debt securities at amortised cost during the
year was as follows.
2021
IFRS 7.42P Lifetime Lifetime
Auditors’ report
ECL – ECL –
12-month not credit- credit-
In thousands of euro ECL impaired impaired Total
Balance at 1 January 10 3 20 33
Net remeasurement of loss allowance 5 46 27 78
Transfer to lifetime ECL – not credit-impaired (1) 1 - -
Transfer to lifetime ECL – credit-impaired - (8) 8 -
Financial assets repaid (2) (17) - (19)
New financial assets acquired 3 - - 3
Balance at 31 December 15 25 55 95
2020
Lifetime Lifetime
Primary statements
IFRS 7.42P
ECL – ECL –
12-month not credit- credit-
In thousands of euro ECL impaired impaired Total
Balance at 1 January 6 2 12 20
Net remeasurement of loss allowance - 10 6 16
Transfer to lifetime ECL – not credit-impaired - - - -
Transfer to lifetime ECL – credit-impaired - (1) 1 -
Financial assets repaid - (4) - (4)
New financial assets acquired 1 - - 1
Balance at 31 December 7 7 19 33
IFRS 7.35I, B8D The following contributed to the increase in the loss allowance during 2021.
– An issuer of a debt security with a gross carrying amount of €109 thousand entered
administration. The Group classified the debt security as credit-impaired and increased the loss
NOTES
allowance by €25 thousand.
– A recession in [Country Y] in the fourth quarter of 2021 resulted in credit rating downgrades
and transfers to lifetime ECL measurement, with consequent increases in loss allowances of
€33 thousand.
Appendices

Introduction

(continued)
IFRS 7.16A, 35H, 42P The movement in the allowance for impairment in respect of debt securities at FVOCI during the
year was as follows.
2021 2020
12-month 12-month
Auditors’ report
In thousands of euro ECL ECL
Balance at 1 January 4 4
Net remeasurement of loss allowance (1) (1)
Financial assets derecognised (3) -
New financial assets acquired 1 1
Balance at 31 December 1 4
Cash and cash equivalents
IFRS 7.33(a)–(b), The Group held cash and cash equivalents of €1,504 thousand at 31 December 2021 (2020:
34(a), 35B(a), 35F(a),
35G(a)–(b), 35M
€1,850 thousand). The cash and cash equivalents are held with bank and financial institution
counterparties, which are rated AA- to AA+, based on [Rating Agency Y] ratings.
Impairment on cash and cash equivalents has been measured on a 12-month expected loss basis
Primary statements
and reflects the short maturities of the exposures. The Group considers that its cash and cash
equivalents have low credit risk based on the external credit ratings of the counterparties.
The Group uses a similar approach for assessment of ECLs for cash and cash equivalents to those
used for debt securities.
IFRS 7.35H, 42P The amount of impairment allowance at 31 December 2021 is €1 thousand (2020: €1 thousand).
Derivatives
IFRS 7.33(a)–(b), 34(a) The derivatives are entered into with bank and financial institution counterparties, which are rated
AA- to AA+, based on [Rating Agency Y] ratings.
Guarantees
The Group’s policy is to provide financial guarantees only for subsidiaries’ liabilities. At
31 December 2021 and 2020, the Company has issued a guarantee to certain banks in respect of
credit facilities granted to two subsidiaries (see Note 33(B)).
NOTES
Appendices
Introduction
(continued)
iii. Liquidity risk
IFRS 7.31, 33 Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations
associated with its financial liabilities that are settled by delivering cash or another financial
asset. The Group’s objective when managing liquidity is to ensure, as far as possible, that it will
have sufficient liquidity to meet its liabilities when they are due, under both normal and stressed
conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
Auditors’ report
The Group uses activity-based costing to cost its products and services, which assists it in
monitoring cash flow requirements and optimising its cash return on investments.
IFRS 7.34(a), 39(c), The Group aims to maintain the level of its cash and cash equivalents and other highly marketable
B10A
debt investments at an amount in excess of expected cash outflows on financial liabilities (other
than trade payables) over the next 60 days. The ratio of investments to outflows was 1.65 at
31 December 2021 (2020: 1.58).
The Group also monitors the level of expected cash inflows on trade and other receivables
together with expected cash outflows on trade and other payables. At 31 December 2021, the
expected cash inflows from trade and other receivables maturing within two months were
€12,331 thousand (2020: €8,940 thousand) and the expected cash outflows from trade and other
payables due within two months were €8,336 thousand (2020: €7,250 thousand). This excludes
the potential impact of extreme circumstances that cannot reasonably be predicted, such as
Primary statements
natural disasters.
As described in Note 29, the Group also participates in a supply chain financing arrangement
(SCF) with the principal purpose of facilitating efficient payment processing of supplier invoices.
The SCF allows the Group to centralise payments of trade payables to the bank rather than paying
each supplier individually. While the SCF does not significantly extend payment terms beyond
the normal terms agreed with other suppliers that are not participating, the programme assists in
making cash outflows more predictable.
IAS 7.50(a), In addition, the Group maintains the following lines of credit.
IFRS 7.B11F
– €10 million overdraft facility that is unsecured. Interest would be payable at the rate of Euribor
plus 150 basis points (2020: Euribor plus 160 basis points).
– €15 million facility that is unsecured and can be drawn down to meet short-term financing
needs. The facility has a 30‑day maturity that renews automatically at the option of the
Group. Interest would be payable at a rate of Euribor plus 100 basis points (2020: Euribor plus
NOTES
110 basis points). Appendices

Introduction

(continued)
iii. Liquidity risk (continued)
Exposure to liquidity risk
IFRS 7.39(a) The following are the remaining contractual maturities of financial liabilities at the reporting date.
The amounts are gross and undiscounted, and include contractual interest payments and exclude
the impact of netting agreements.a, b
Contractual cash flows
Auditors’ report
31 December 2021 Carrying 2 months 2–12 More than

In thousands of euro amount Total or less months 1–2 years 2–5 years 5 years
IFRS 7.39(a), Non-derivative financial

B11A–B11D
liabilities
Contingent consideration 270 (330) - - - (330) -
Bank overdrafts 334 (334) (334) - - - -
Secured bank loans 8,609 (9,409) (1,667) (420) (1,810) (5,512) -
Unsecured bank loan 503 (520) (194) (326) - - -
Unsecured bond issues 9,200 (10,272) (59) (3,195) (709) (6,309) -
Convertible notes 4,678 (5,375) - (150) (150) (5,075) -
Redeemable preference
shares 1,990 (2,528) - (88) (88) (264) (2,088)
Primary statements
IFRS 16.58 Lease liabilities 4,125 (5,697) (381) (334) (963) (1,450) (2,569)
Trade payables 23,017 (23,017) (23,017) - - - -
52,726 (57,482) (25,652) (4,513) (3,720) (18,940) (4,657)
IFRS 7.39(b), c
Derivative financial liabilities
B11A–B11D
Interest rate swaps used for
hedging 20 (21) (1) (6) (6) (8) -
Forward exchange contracts
used for hedging:
– Outflow 8 (152) (91) (61) - - -
– Inflow - 142 85 57 - - -
28 (31) (7) (10) (6) (8) -
NOTES
Appendices
IFRS 7.39, B11, a. The Group has disclosed a contractual maturity analysis for its financial liabilities, which is the minimum disclosure
Insights 7.10.650.80 under IFRS 7 in respect of liquidity risk. Because IFRS 7 does not mandate the number of time bands to be used in
the analysis, the Group has applied judgement to determine an appropriate number of time bands.
Insights 7.10.650.70 b. The Group has included both the interest and principal cash flows in the analysis. In our view, this best represents
the liquidity risk being faced by the Group.
Insights 7.10.650.30 c. In our view, the maturity analysis should include all derivative financial liabilities, but contractual maturities only are
required for those essential for an understanding of the timing of the cash flows.
Introduction
(continued)
iii. Liquidity risk (continued)
Exposure to liquidity risk (continued)
Contractual cash flows
31 December 2020 Carrying 2 months 2–12 More than

In thousands of euro amount Total or less months 1–2 years 2–5 years 5 years
IFRS 7.39(a), Non-derivative financial
Auditors’ report
B11A–B11D
liabilities
Bank overdrafts 282 (282) (282) - - - -
Secured bank loans 12,078 (13,112) (1,720) (3,605) (518) (6,357) (912)
Unsecured bank loan 117 (125) (63) (62) - - -
Unsecured bond issues 9,200 (10,613) (61) (184) (3,306) (1,703) (5,359)
IFRS 16.58 Lease liabilities 2,182 (3,186) (177) (354) (458) (666) (1,531)
Loan from associate 1,000 (1,048) (8) (1,040) - - -
Trade payables 20,438 (20,438) (20,438) - - - -
45,297 (48,804) (22,749) (5,245) (4,282) (8,726) (7,802)
IFRS 7.39(b), Derivative financial liabilities
B11A–B11D
Interest rate swaps used for
Primary statements
hedging 5 (5) - (2) (1) (2) -
used for hedging:
– Outflow 7 (41) (25) (16) - - -
– Inflow - 32 19 13 - - -
12 (14) (6) (5) (1) (2) -
IFRS 7.39(b)–(c), B11D The inflows/(outflows) disclosed in the above table represent the contractual undiscounted cash
flows relating to derivative financial liabilities held for risk management purposes and which are
not usually closed out before contractual maturity. The disclosure shows net cash flow amounts for
derivatives that are net cash-settled and gross cash inflow and outflow amounts for derivatives that
have simultaneous gross cash settlement.
IFRS 7.B10A As disclosed in Notes 28 and 37, the Group has a secured bank loan that contains a loan covenant.
A future breach of covenant may require the Group to repay the loan earlier than indicated in the
above table. In addition, convertible notes will become repayable on demand if the Group’s net
NOTES
debt to adjusted equity ratio exceeds 1.95. Under the agreement, the covenant is monitored
on a regular basis by the treasury department and regularly reported to management to ensure
compliance with the agreement.
The interest payments on variable interest rate loans and bond issues in the table above reflect
market forward interest rates at the reporting date and these amounts may change as market
interest rates change. The future cash flows on contingent consideration (see Note 34(A)) and
derivative instruments may be different from the amount in the above table as interest rates and
exchange rates or the relevant conditions underlying the contingency change. Except for these
financial liabilities, it is not expected that the cash flows included in the maturity analysis could
occur significantly earlier, or at significantly different amounts.a
Appendices
Insights a. When the amount payable is not fixed, the amount to be disclosed is determined with reference to conditions
7.10.650.110 existing at the reporting date. For example, for a floating-rate bond with interest payments indexed to three-month
Euribor, in our view the amount to be disclosed should be based on forward rates rather than spot rates prevailing
at the reporting date because the spot interest rates do not represent the level of the index based on which the
cash flows will be payable. The forward interest rates better describe the level of the index in accordance with the
conditions existing at the reporting date.

Introduction

(continued)
iv. Market risk
IFRS 7.33 Market risk is the risk that changes in market prices – e.g. foreign exchange rates, interest
rates and equity prices – will affect the Group’s income or the value of its holdings of financial
instruments. The objective of market risk management is to manage and control market risk
exposures within acceptable parameters, while optimising the return.
The Group uses derivatives to manage market risks. All such transactions are carried out within
the guidelines set by the risk management committee. Generally, the Group seeks to apply hedge
Auditors’ report
accounting to manage volatility in profit or loss.
Managing interest rate benchmark reform and associated risksa

Overview
IFRS 7.24H–24J A fundamental reform of major interest rate benchmarks is being undertaken globally, including
the replacement of some interbank offered rates (IBORs) with alternative nearly risk-free rates
(referred to as ‘IBOR reform’). The Group has exposures to IBORs on its financial instruments
that will be replaced or reformed as part of these market-wide initiatives. The Group’s main
IBOR exposure at 31 December 2020 was indexed to sterling LIBOR and US dollar LIBOR. The
alternative reference rate for sterling LIBOR is the Sterling Overnight Index Average (SONIA)
rate and for US dollar LIBOR it is the Secured Overnight Financing Rate (SOFR). Amendments
to financial instruments with contractual terms indexed to sterling LIBOR such that they
incorporate new benchmark rates were completed by 31 December 2021. Although US dollar
Primary statements
LIBOR was planned to be discontinued by the end of 2021, in November 2020 the ICE Benchmark
Administration (IBA), the FCA-regulated and authorised administrator of LIBOR, announced that it
had started to consult on its intention to cease the publication of certain USD LIBORs after June
2023. As at 31 December 2021, it is still unclear when the announcement that will set a date for
the termination of the publication of US dollar LIBOR will take place. Nevertheless, the Group
had finished the process of implementing appropriate fallback provisions for all US dollar LIBOR
indexed exposures by the end of 2021.
The risk management committee monitors and manages the Group’s transition to alternative
rates. The committee evaluates the extent to which contracts reference IBOR cash flows,
whether such contracts will need to be amended as a result of IBOR reform and how to manage
communication about IBOR reform with counterparties. The committee reports to the Company’s
board of directors quarterly and collaborates with other business functions as needed. It provides
periodic reports to management of interest rate risk and risks arising from IBOR reform.
Non-derivative financial assets
NOTES
The Group’s IBOR exposures to non-derivative financial assets as at 31 December 2020 were
corporate debt securities indexed to sterling LIBOR and US dollar LIBOR. As explained above, the
Group has finished the process of amending contractual terms for all of the sterling LIBOR indexed
exposures to incorporate SONIA by 31 December 2021. In respect of US dollar LIBOR exposures,
the Group has been a party to agreements that introduce fallback clauses into all such instruments.
These clauses automatically switch the instrument from USD LIBOR to SOFR as and when USD
LIBOR ceases. It is unclear when the announcement that will set a date for the termination of the
publication of USD LIBOR will take place.
Appendices
a. As at the date of publication of these illustrative financial statements, it is assumed that the date of termination
for the publication of US dollar LIBOR is not known. However, please note that this assumption may be incorrect if
there are further announcements on this matter from the relevant regulator or administrator.
Introduction
(continued)
iv. Market risk (continued)
Non-derivative financial liabilities
The Group has modified all of its floating-rate liabilities indexed to sterling LIBOR (see Note 28)
to reference SONIA during the year ended 31 December 2021. As a result, the Group’s IBOR
exposures to non-derivative financial liabilities as at 31 December 2021 were secured bank loans
indexed to SONIA and unsecured bond issues indexed to Euribor. The calculation methodology of
Euribor changed during 2019. In July 2019, the Belgian Financial Services and Markets Authority
Auditors’ report
granted authorisation with respect to Euribor under the European Union Benchmarks Regulation.
This allows market participants to continue to use Euribor for both existing and new contracts
and the Group expects that Euribor will continue to exist as a benchmark rate for the foreseeable
future.
Derivatives
The Group holds interest rate swaps for risk management purposes that are designated in cash
flow hedging relationships. The interest rate swaps have floating legs that are indexed to either
Euribor or SONIA. The Group’s derivative instruments are governed by contracts based on the
International Swaps and Derivatives Association (ISDA)’s master agreements.
Hedge accounting
The Group’s hedged items and hedging instruments as at the reporting date are indexed to Euribor
Primary statements
or SONIA. These benchmark rates are quoted each day and the IBOR cash flows are exchanged
with counterparties as usual.
The Group replaced its sterling LIBOR interest rate derivatives used in cash flow hedging
relationships with economically equivalent interest rate derivatives referencing SONIA by the end
of 2021. Therefore, there is no longer uncertainty about when and how replacement may occur
with respect to the relevant hedged items and hedging instruments. As a result, the Group no
longer applies the amendments to IFRS 9 issued in September 2019 (Phase 1) to those hedging
relationships.
NOTES
Appendices

Introduction

(continued)
Managing interest rate benchmark reform and associated risks (continued)
Total amounts of unreformed contracts, including those with an appropriate fallback clause
The Group monitors the progress of transition from IBORs to new benchmark rates by reviewing
the total amounts of contracts that have yet to transition to an alternative benchmark rate and the
amounts of such contracts that include an appropriate fallback clause. The Group considers that a
Auditors’ report
contract is not yet transitioned to an alternative benchmark rate when interest under the contract
is indexed to a benchmark rate that is still subject to IBOR reform, even if it includes a fallback
clause that deals with the cessation of the existing IBOR (referred to as an ‘unreformed contract’).
The following table shows the total amounts of unreformed contracts and those with appropriate
fallback language at 1 January 2021 and at 31 December 2021. The amounts of financial assets and
financial liabilities are shown at their carrying amounts and derivatives are shown at their notional
amounts.
GBP LIBOR USD LIBOR
Total amount of Amount with Total amount of Amount with

unreformed appropriate unreformed appropriate
In thousands of euro contracts fallback clause contracts fallback clause
Primary statements
31 December 2021 -
Financial assets
Corporate debt securities - - 253 253
Financial liabilities
Secured bank loans - - - -
Derivatives
Interest rate swaps - - - -
1 January 2021
Financial assets
Corporate debt securities 1,071 589 251 63
Secured bank loans 4,855 - - -
Derivatives
NOTES
Interest rate swaps 5,647

Appendices
Introduction
(continued)
Currency riska
IFRS 7.21C, 22A(a) The Group is exposed to transactional foreign currency risk to the extent that there is a mismatch
between the currencies in which sales, purchases, receivables and borrowings are denominated
and the respective functional currencies of Group companies. The functional currencies of
Group companies are primarily the euro and Swiss francs (CHF). The currencies in which these
transactions are primarily denominated are euro, US dollars, sterling and Swiss francs.
Auditors’ report
IFRS 7.21A, The Group’s risk management policy is to hedge 75 to 85% of its estimated foreign currency
7.22A(b)–(c), 22C
exposure in respect of forecast sales and purchases over the following 12 months at any point in
time. The Group uses forward exchange contracts to hedge its currency risk, most with a maturity
of less than one year from the reporting date. These contracts are generally designated as cash
flow hedges.b
Primary statements
NOTES
IFRS 7.24C(b)(vi) a. The Group did not designate any net positions in a hedging relationship. For an entity that did, the required
disclosures would include the hedging gains or losses recognised in a separate line item in the statement of profit or
loss and OCI.
IFRS 7.24B(a), b. The Group has not designated any fair value hedging relationships. For an entity that has a fair value hedge, the
24C(a) required disclosures would include:
– the carrying amount of the hedged item recognised in the statement of financial position (presenting assets
separately from liabilities);
– the accumulated amount of fair value hedge adjustments on the hedged item included in the carrying amount of
the hedged item recognised in the statement of financial position (presenting assets separately from liabilities);
– the line item in the statement of financial position that includes the hedged item;
– the change in value of the hedged item used as the basis for recognising hedge ineffectiveness for the period;
– the accumulated amount of fair value hedge adjustments remaining in the statement of financial position for any
hedged items that have ceased to be adjusted for hedging gains and losses;
Appendices
– hedge ineffectiveness: i.e. the difference between the hedging gains or losses of the hedging instrument and the
hedged item recognised in profit or loss; and
– the line item in the statement of profit or loss and OCI that includes the recognised hedge ineffectiveness.

Introduction

(continued)
Currency risk (continued)
IFRS 7.22B The Group designates the spot element of forward foreign exchange contracts to hedge its
currency risk and applies a hedge ratio of 1:1. The forward elements of forward exchange contracts
are excluded from the designation of the hedging instrument and are separately accounted for as
a cost of hedging, which is recognised in equity in a cost of hedging reserve. The Group’s policy is
for the critical terms of the forward exchange contracts to align with the hedged item.
Auditors’ report
IFRS 7.22B(b) The Group determines the existence of an economic relationship between the hedging instrument
and hedged item based on the currency, amount and timing of their respective cash flows. The
Group assesses whether the derivative designated in each hedging relationship is expected
to be and has been effective in offsetting changes in cash flows of the hedged item using the
hypothetical derivative method.
IFRS 7.23D In these hedge relationships, the main sources of ineffectiveness are:a
– the effect of the counterparties’ and the Group’s own credit risk on the fair value of the forward
foreign exchange contracts, which is not reflected in the change in the fair value of the hedged
cash flows attributable to the change in exchange rates; and
– changes in the timing of the hedged transactions.
Primary statements
IFRS 7.34(a) Exposure to currency risk

The summary quantitative data about the Group’s exposure to currency risk as reported to the
management of the Group is as follows.
In thousands of EUR USD GBP CHF EUR USD GBP CHF
Trade receivables 1,977 8,365 2,367 - 3,099 6,250 1,780 -

Secured bank loans - (1,447) (886) (1,240) - (1,521) (4,855) (1,257)
Trade payables (876) (7,956) (4,347) - (5,411) (10,245) (2,680) -
Net statement of
financial position
exposure 1,101 (1,038) (2,866) (1,240) (2,312) (5,516) (5,755) (1,257)
Next six months’
forecast salesb 9,000 23,000 12,000 - 18,700 17,000 24,000 -
NOTES
Next six months’

forecast
purchasesb (10,000) (20,000) (8,000) - (9,800) (10,000) (17,000) -
Net forecast
transaction
exposure (1,000) 3,000 4,000 - 8,900 7,000 7,000 -
Forward exchange
contracts - (950) (946) - - (1,042) (870) -
Net exposure 101 1,012 188 (1,240) 6,588 442 375 (1,257)
IFRS 7.23E a. The Group did not have any new sources of hedge ineffectiveness emerging in designated hedging relationships.
If it had, then it would be required to disclose those sources by risk category and explain the resulting hedge
Appendices
ineffectiveness.
IFRS 7.34(a) b. Disclosure of estimated forecast sales and purchases does not form part of the minimum disclosure requirements
in IFRS 7, because estimated forecast sales and purchases are not financial instruments. However, the Group has
disclosed this information because it is relevant to an understanding of its exposure to currency risk. In addition,
IFRS 7 requires quantitative data about risk exposures to be based on information provided internally to key
management personnel and the Group provides forecast sales and purchase information to management as part of
its management of currency risk.
Introduction
(continued)
Currency risk (continued)
IFRS 7.34(a) Exposure to currency risk (continued)
IFRS 7.31 The following significant exchange rates have been applied.a
Average rate Year-end spot rate
Euro 2021 2020 2021 2020
Auditors’ report
USD 1 0.758 0.765 0.750 0.758
GBP 1 1.193 1.214 1.172 1.230
CHF 1 0.818 0.825 0.810 0.828
IFRS 7.40 Sensitivity analysis
A reasonably possible strengthening (weakening) of the euro, US dollar, sterling or Swiss franc
against all other currencies at 31 December would have affected the measurement of financial
instruments denominated in a foreign currency and affected equity and profit or loss by the
amounts shown below. This analysis assumes that all other variables, in particular interest rates,
remain constant and ignores any impact of forecast sales and purchases.
Profit or loss Equity, net of tax
Primary statements
Effect in thousands of euro Strengthening Weakening Strengthening Weakening
31 December 2021
EUR (9% movement) (33) 33 25 (25)
USD (10% movement) 25 (25) (7) 7
GBP (8% movement) 17 (17) (5) 5
CHF (3% movement) 2 (2) (30) 30
31 December 2020
EUR (10% movement) (37) 37 28 (28)
USD (12% movement) 85 (85) (8) 8
GBP (10% movement) 92 (92) (7) 7
CHF (5% movement) 6 (6) (50) 50
Interest rate risk

IFRS 7.21C, The Group adopts a policy of ensuring that between 80 and 90% of its interest rate risk exposure
22A(b)–(c), 22B–C
is at a fixed rate. This is achieved partly by entering into fixed-rate instruments and partly by NOTES
borrowing at a floating rate and using interest rate swaps as hedges of the variability in cash flows
attributable to movements in interest rates. The Group applies a hedge ratio of 1:1.
IFRS 7.22B(b), The Group determines the existence of an economic relationship between the hedging instrument
IFRS 9.6.8.6
and hedged item based on the reference interest rates, tenors, repricing dates and maturities and
the notional or par amounts.
The Group assesses whether the derivative designated in each hedging relationship is expected
to be effective in offsetting changes in cash flows of the hedged item using the hypothetical
derivative method.
Appendices
IFRS 7.31 a. Although it is not specifically required by the Standards, the Group has disclosed the significant exchange rates
applied. This disclosure is provided for illustrative purposes only. In addition, IFRS 7 requires information that enables
users of its financial statements to evaluate the nature and extent of risks arising from financial instruments to
which the entity is exposed at the reporting date.

Introduction

(continued)
IFRS 7.34(a) Interest rate risk (continued)
IFRS 7.23D In these hedge relationships, the main sources of ineffectiveness are:a
– the effect of the counterparty’s and the Group’s own credit risk on the fair value of the swaps,
which is not reflected in the change in the fair value of the hedged cash flows attributable to the
change in interest rates; and
Auditors’ report
– differences in repricing dates between the swaps and the borrowings.

Exposure to interest rate risk
The interest rate profile of the Group’s interest-bearing financial instruments as reported to the
management of the Group is as follows.
Nominal amount
Fixed-rate instruments
Financial assets 2,554 2,629
Financial liabilities (18,041) (12,869)
(15,487) (10,240)
Primary statements
Effect of interest rate swaps (8,000) (7,500)

(23,487) (17,740)
Variable-rate instruments
Financial liabilities (11,064) (14,055)
Effect of interest rate swaps 8,000 7,500
(3,064) (6,555)
Fair value sensitivity analysis for fixed-rate instruments
The Group does not account for any fixed-rate financial assets or financial liabilities, at FVTPL, and
the Group does not designate derivatives (interest rate swaps) as hedging instruments under a fair
value hedge accounting model. Therefore, a change in interest rates at the reporting date would
not affect profit or loss.
A change of 100 basis points in interest rates would have increased or decreased equity by
€65 thousand after tax (2020: €66 thousand). This analysis assumes that all other variables, in
NOTES
particular foreign currency exchange rates, remain constant.

Appendices
IFRS 7.23E a. The Group did not have any new sources of hedge ineffectiveness emerging in designated hedging relationships.
If it had, then it would be required to disclose those sources by risk category and explain the resulting hedge
ineffectiveness.
Introduction
(continued)
Interest rate risk (continued)
IFRS 7.40 Cash flow sensitivity analysis for variable-rate instruments
A reasonably possible change of 100 basis points in interest rates at the reporting date would
have increased (decreased) equity and profit or loss by the amounts shown below. This analysis
assumes that all other variables, in particular foreign currency exchange rates, remain constant.
Auditors’ report
Profit or loss Equity, net of tax
100 bp 100 bp 100 bp 100 bp
Effect in thousands of euro increase decrease increase decrease
31 December 2021
Variable-rate instruments (66) 66 - -
Interest rate swaps 61 (61) 310 (302)
Cash flow sensitivity (net) (5) 5 310 (302)
31 December 2020
Interest rate swaps 61 (61) 280 (275)
Cash flow sensitivity (net) (81) 81 280 (275)
Primary statements
Other market price risk
IFRS 7.B5(a)(iii) The primary goal of the Group’s investment in equity securities is to hold the investments for the
long term for strategic purposes. Management is assisted by external advisers in this regard.
Certain investments are designated as at FVTPL because their performance is actively monitored
and they are managed on a fair value basis.
IFRS 7.40 Sensitivity analysis – Equity price risk

All of the Group’s listed equity investments are listed on either the London Stock Exchange or the
New York Stock Exchange. For such investments classified at FVOCI, a 2% increase in the FTSE
100 plus a 3% increase in the Dow Jones Industrial Average at the reporting date would have
increased equity by €28 thousand after tax (2020: an increase of €18 thousand after tax); an equal
change in the opposite direction would have decreased equity by €28 thousand after tax (2020:
a decrease of €18 thousand after tax). For such investments classified as at FVTPL, the impact
of a 2% increase in the FTSE 100 plus a 3% increase in the Dow Jones Industrial Average at the
reporting date on profit or loss would have been an increase of €16 thousand after tax (2020: NOTES
€18 thousand after tax). An equal change in the opposite direction would have decreased profit or
loss by €16 thousand after tax (2020: €18 thousand after tax).
Appendices

Introduction

(continued)
Cash flow hedgesa, b
IFRS 7.23B At 31 December 2021, the Group held the following instruments to hedge exposures to changes in
foreign currency and interest rates.
Maturity
6–12 More than
Auditors’ report
1–6 months months one year
Foreign currency risk

IFRS 7.23B(a) Net exposure (in thousands of euro) 253 63 -
IFRS 7.23B(b) Average EUR:USD forward contract rate 0.91 0.87 0.83
Average EUR:GBP forward contract rate 1.27 1.23 1.20
Average EUR:CHF forward contract rate 0.92 0.91 0.90
Interest rate risk
Interest rate swaps
Net exposure (in thousands of euro) - 41 78
Average fixed interest rate 2.2% 2.4% 2.8%
Primary statements
At 31 December 2020, the Group held the following instruments to hedge exposures to changes
in foreign currency rates.
Maturity
6–12 More than
1–6 months months one year

Net exposure (in thousands of euro) 293 73 -
Average EUR:USD forward contract rate 0.93 0.89 0.85
Average EUR:GBP forward contract rate 1.35 1.32 1.28
Average EUR:CHF forward contract rate 0.95 0.93 0.91
Interest rate risk
Interest rate swaps
Net exposure (in thousands of euro) - 63 67
NOTES
Average fixed interest rate 2.1% 2.2% 2.9%
IFRS 7.23C, 24D a. The Group does not frequently reset hedging relationships because both the hedging instrument and the hedged
item frequently change (i.e. the entity does not use a dynamic process in which neither the exposure nor the
hedging instruments used to manage that exposure remain the same for a long period). If it did, then it would be
exempt from providing the disclosures required by paragraphs 23A and 23B of IFRS 7, but would instead provide
information about the ultimate risk management strategy, how it reflects its risk management strategy in its hedge
Appendices
accounting and designations, and how frequently hedging relationships are discontinued and restarted. If the
volume of these hedges is unrepresentative of normal volumes during the year (i.e. the volume at the reporting date
does not reflect the volumes during the year), then the entity would disclose that fact and the reason it believes the
volumes are unrepresentative.
IFRS 7.23F b. The Group did not have any forecast transaction for which cash flow hedge accounting had been used in the
previous period, but which is no longer expected to occur. If it did, then it would be required to disclose a description
of the forecast transaction as well as the amount reclassified from the cash flow hedge reserve to profit or loss.
Introduction
(continued)
Cash flow hedges (continued)
IFRS 7.24B(b) The amounts at the reporting date relating to items designated as hedged items were as follows.
31 December 2021
Balances
remaining in
Auditors’ report
the cash flow
hedge reserve
from hedging
Change in relationships
value used for Costs of for which hedge
calculating hedge Cash flow hedging accounting is no
In thousands of euro ineffectiveness hedge reserve hedge reserve longer applied

Sales, receivables and borrowings 23 154 2 -
Inventory purchases 15 101 2 -
Interest rate risk
Variable-rate instruments 24 178 - -
31 December 2020
Primary statements
Sales, receivables and borrowings (35) 181 (27) -
Inventory purchases (23) 119 - -
Interest rate risk
NOTES
Appendices

Introduction

(continued)
IFRS 7.21B, 21D, 24A, The amounts relating to items designated as hedging instruments and hedge ineffectiveness were
24C(b) as follows.
2021
Auditors’ report
Line item in the

statement of financial
position where the
Carrying amount
Nominal hedging instrument is
In thousands of euro amount Assets Liabilities included

Other investments
including
Forward exchange contracts – 1,138 178 (5) derivatives (assets),
sales, receivables and trade and other
borrowings payables (liabilities)
Primary statements
Forward exchange contracts – Other investments

inventory purchases including
758 119 (3) derivatives (assets),
trade and other
payables (liabilities)
Interest rate risk
Other investments
including
Interest rate swaps 8,000 116 (20) derivatives (assets),
trade and other
NOTES
Appendices
Introduction
During the period – 2021
Amount
Auditors’ report
Changes in Amount from from costs Amount
the value of Line item hedging of hedging Amount reclassified
the hedging Hedge in profit or Costs of reserve reserve reclassified from costs Line item in
instrument ineffectiveness loss that hedging transferred transferred from hedging of hedging profit or loss
recognised recognised in includes hedge recognised to cost of to cost of reserve to reserve to affected by the
in OCI profit or loss ineffectiveness in OCI inventory inventory profit or loss profit or loss reclassification
Finance
(23) (45) 20 - - (12) 6 Revenue
costs – other
Finance
Primary statements
- - - (6) 2
costs – other
(15) - 14 6 6 - -
Finance Finance
(24) (6) - - - (13) -
costs – other costs – other
NOTES
Appendices

Introduction

(continued)
IFRS 7.21B, 21D, 24A, The amounts relating to items designated as hedging instruments and hedge ineffectiveness were
24C(b)
as follows.
2020
Auditors’ report
Line item in the

position where the
Carrying amount
Nominal hedging instrument is
In thousands of euro amount Assets Liabilities included

Other investments
Forward exchange contracts – including
sales, receivables and 1,147 211 (4) derivatives (assets),
borrowings trade and other
Primary statements
Other investments
including
Forward exchange contracts –
765 141 (3) derivatives (assets),
inventory purchases
trade and other
Interest rate risk
Other investments
including
Interest rate swaps 7,500 131 (5) derivatives (assets),
trade and other
NOTES
Appendices
Introduction
Amount
Auditors’ report
Changes in Amount from from costs Amount
the value of Line item hedging of hedging Amount reclassified
the hedging Hedge in profit or Costs of reserve reserve reclassified from costs Line item in
instrument ineffectiveness loss that hedging transferred transferred from hedging of hedging profit or loss
recognised recognised in includes hedge recognised to cost of to cost of reserve to reserve to affected by the
in OCI profit or loss ineffectiveness in OCI inventory inventory profit or loss profit or loss reclassification
Finance
35 (11) costs – 6 - - (3) 7 Revenue
other
Finance
Primary statements
- - - (3) (5) costs –
other
23 - 4 1 (1) - -
Finance Finance
37 (5) costs – - - - (5) - costs –
other other
NOTES
Appendices

Introduction

(continued)
IFRS 7.24E–F The following table provides a reconciliation by risk category of components of equity and analysis
of OCI items, net of tax, resulting from cash flow hedge accounting.
2021
Cost of
Auditors’ report
Hedging hedging
In thousands of euro reserve reserve
Balance at 1 January 2021 491 (27)

Cash flow hedges
Changes in fair value:
– Foreign currency risk – inventory purchases (15) 14
– Foreign currency risk – other items (23) 20
– Interest rate risk (24) -
Amount reclassified to profit or loss:
Amount included in the cost of non-financial items:
Primary statements
– Foreign currency risk – inventory purchases 6 6

Tax on movements on reserves during the year 29 (17)
Balance at 31 December 2021 433 4
NOTES
Appendices
Introduction
(continued)
2020
Cost of
Hedging hedging
In thousands of euro reserve reserve
Balance at 1 January 2020 434 (35)
Auditors’ report
Cash flow hedges
Effective portion of changes in fair value:
– Foreign currency risk – inventory purchases 23 4
– Foreign currency risk – other items 35 6
– Interest rate risk 37 -
Amount reclassified to profit or loss:
Amount included in the cost of non-financial items:
– Foreign currency risk – inventory purchases 1 (1)
Tax on movements on reserves during the year (28) (3)
Primary statements
Balance at 31 December 2020 491 (27)
Net investment hedges
IFRS 7.22A A foreign currency exposure arises from the Group’s net investment in its Swiss subsidiary that
has a Swiss franc functional currency. The risk arises from the fluctuation in spot exchange rates
between the Swiss franc and the euro, which causes the amount of the net investment to vary.
The hedged risk in the net investment hedge is the risk of a weakening Swiss franc against the
euro that will result in a reduction in the carrying amount of the Group’s net investment in the
Swiss subsidiary.
IFRS 7.22B(a) Part of the Group’s net investment in its Swiss subsidiary is hedged by a Swiss franc-denominated
secured bank loan (carrying amount: €1,240 thousand (2020: €1,257 thousand)), which mitigates
the foreign currency risk arising from the subsidiary’s net assets. The loan is designated as a
hedging instrument for the changes in the value of the net investment that is attributable to
changes in the EUR/CHF spot rate.
NOTES
IFRS 7.22B(b) To assess hedge effectiveness, the Group determines the economic relationship between the
hedging instrument and the hedged item by comparing changes in the carrying amount of the
debt that is attributable to a change in the spot rate with changes in the investment in the foreign
operation due to movements in the spot rate (the offset method). The Group’s policy is to hedge
the net investment only to the extent of the debt principal.
Appendices

Introduction

(continued)
IFRS 7.24A, Net investment hedges (continued)
24C(b)(i)–(iii)
The amounts related to items designated as hedging instruments were as follows.
2021
Line item in the

Auditors’ report
position where the

Carrying amount
hedging instrument
In thousands of euro Nominal amount Assets Liabilities is included
Foreign exchange- Loans and

denominated debt (CHF) 1,240 - 1,240 borrowings
IFRS 7.24B(b) The amounts related to items designated as hedged items were as follows.
2021
In thousands of euro Change in value used for calculating hedge ineffectiveness
CHF net investment 3

The amounts related to items designated as hedging instruments were as follows.
Primary statements
2020
Line item in the

position where the
Carrying amount
hedging instrument
In thousands of euro Nominal amount Assets Liabilities is included
Foreign exchange- Loans and

denominated debt (CHF) 1,257 - 1,257 borrowings
The amounts related to items designated as hedged items were as follows.
2020
In thousands of euro Change in value used for calculating hedge ineffectiveness
CHF net investment 8

NOTES
Appendices
Introduction
Change in value used
Auditors’ report
for calculating hedge Change in value of Hedge ineffectiveness Line item in profit Amount reclassified Line item affected in
ineffectiveness for hedging instrument recognised in profit or loss that includes from hedging reserve profit or loss because
2021 recognised in OCI or loss hedge ineffectiveness to profit or loss of the reclassification
Finance costs –
(4) (3) (1) other - N/A
Balances remaining in the foreign currency translation reserve from

Foreign currency translation reserve hedging relationships for which hedge accounting is no longer applied
125 -
Primary statements
Change in value used

for calculating hedge Change in value of Hedge ineffectiveness Line item in profit Amount reclassified Line item affected in
ineffectiveness for hedging instrument recognised in profit or loss that includes from hedging reserve profit or loss because
2020 recognised in OCI or loss hedge ineffectiveness to profit or loss of the reclassification
Finance costs –
(8) (8) - other - N/A
Balances remaining in the foreign currency translation reserve from

Foreign currency translation reserve hedging relationships for which hedge accounting is no longer applied
105 - NOTES
Appendices

Introduction

(continued)
IFRS 7.13B, 13E, B50 D. Master netting or similar agreementsa, b
The Group enters into derivative transactions under International Swaps and Derivatives
Association (ISDA) master netting agreements. In general, under these agreements the amounts
owed by each counterparty on a single day in respect of all transactions outstanding in the
same currency are aggregated into a single net amount that is payable by one party to the other.
In certain circumstances – e.g. when a credit event such as a default occurs – all outstanding
transactions under the agreement are terminated, the termination value is assessed and only a
single net amount is payable in settlement of all transactions.
Auditors’ report
The ISDA agreements do not meet the criteria for offsetting in the statement of financial
position. This is because the Group does not have any currently legally enforceable right to offset
recognised amounts, because the right to offset is enforceable only on the occurrence of future
events such as a default on the bank loans or other credit events.
The following table sets out the carrying amounts of recognised financial instruments that are
subject to the above agreements.
Gross
amounts
of financial Related
instruments in financial
the statement instruments
of financial that are
IFRS 7.13C, B46 In thousands of euro Note position not offset Net amount
Primary statements
31 December 2021
Financial assets
Other investments, including derivatives
– Interest rate swaps used for hedging 25 116 (5) 111
– Forward exchange contracts used for hedging 25 297 (16) 281
– Other forward exchange contracts 25 122 (7) 115
535 (28) 507
Trade and other payables
– Interest rate swaps used for hedging 29 (20) 20 -
– Forward exchange contracts used for hedging 29 (8) 8 -
(28) 28 -
31 December 2020
Financial assets
NOTES
Other investments, including derivatives

– Interest rate swaps used for hedging 25 131 (2) 129
– Forward exchange contracts used for hedging 25 352 (8) 344
– Other forward exchange contracts 25 89 (2) 87
572 (12) 560
Trade and other payables
– Interest rate swaps used for hedging 29 (5) 5 -
– Forward exchange contracts used for hedging 29 (7) 7 -
(12) 12 -
Appendices
IFRS 7.13C, B51– a. The disclosure requirements in paragraph 13C of IFRS 7 may be grouped by type of financial instrument or
B52, Insights transaction. Alternatively, an entity may present the disclosures in paragraph 13C(a)–(c) by type of financial
7.10.250.70 instrument, and those in 13C(c)–(e) by counterparty.
IFRS 7.13C, B52– b. The disclosure requirements described in paragraph 13C of IFRS 7 are minimum requirements. An entity
B53, Insights supplements them with additional qualitative disclosures if they are necessary for financial statement users to
7.10.250.120 evaluate the actual or potential effect of netting arrangements on its financial position. When disclosing quantitative
information by counterparty, an entity considers qualitative disclosure about the type of counterparty.
Group composition
Introduction
33. List of subsidiariesa
See accounting policy in Note 45(A)(ii).
IFRS 12.10(a), 12(a)–(b), Set out below is a list of material subsidiaries of the Group.
IAS 24.13–14
Auditors’ report
Primary statements
A. Maple-leaf Inc and Silver Fir S.A.
IFRS 12.7(a), 9(b), Although the Group owns less than half of Maple-leaf Inc and Silver Fir S.A. and has less than half
IAS 1.122
of their voting power, management has determined that the Group controls these two entities.
The Group controls Maple-leaf Inc by virtue of an agreement with its other shareholders; the
Group has control over Silver Fir S.A., on a de facto power basis, because the remaining voting
rights in the investee are widely dispersed and there is no indication that all other shareholders
exercise their votes collectively.
B. Sloan Bio-Research Co and MayCo

IFRS 12.7(a), 9(b), The Group does not hold any ownership interests in two structured entities, Sloan Bio-Research
10(b)(ii)
Co and MayCo. However, based on the terms of agreements under which these entities were
established, the Group receives substantially all of the returns related to their operations and net
assets (these entities perform research activities exclusively for the Group) and has the current
ability to direct these entities’ activities that most significantly affect these returns. Because the
owners’ interests in these entities are presented as liabilities of the Group, there are no NCI for NOTES
these entities.
IFRS 12.14 The Company has issued guarantees to certain banks in respect of the credit facilities of
€700 thousand granted to these entities, which is the maximum amount the Company is
exposed to.
Appendices
a. For additional disclosure examples and explanatory notes on IFRS 12, see our Guide to annual financial statements –
IFRS 12 supplement.

Introduction
34. Acquisition of subsidiary

See accounting policy in Note 45(A)(i)–(iii).
IFRS 3.B64(a)–(c) On 31 March 2021, the Group acquired 65% of the shares and voting interests in Papyrus. As
a result, the Group’s equity interest in Papyrus increased from 25 to 90%, granting it control of
Papyrus (see Note 24(B)).
Included in the identifiable assets and liabilities acquired at the date of acquisition of Papyrus
are inputs (a head office, several factories, patented technology, inventories and customer
relationships), production processes and an organised workforce. The Group has determined that
together the acquired inputs and processes significantly contribute to the ability to create revenue.
The Group has concluded that the acquired set is a business.a
Auditors’ report
IFRS 3.B64(d) Taking control of Papyrus will enable the Group to modernise its production process through
access to Papyrus’s patented technology. The acquisition is also expected to provide the Group
with an increased share of the standard paper market through access to Papyrus’s customer base.
The Group also expects to reduce costs through economies of scale.
IFRS 3.B64(q) For the nine months ended 31 December 2021, Papyrus contributed revenue of
€20,409 thousand and profit of €425 thousand to the Group’s results. If the acquisition had
occurred on 1 January 2021, management estimates that consolidated revenue would have
been €107,091 thousand, and consolidated profit for the year would have been €8,128 thousand.
In determining these amounts, management has assumed that the fair value adjustments,
determined provisionally, that arose on the date of acquisition would have been the same if the
acquisition had occurred on 1 January 2021.
Primary statements
IFRS 3.B64(f) A. Consideration transferred

The following table summarises the acquisition date fair value of each major class of consideration
transferred.
IFRS 3.B64(f)(i),
IAS 7.40(a)–(b) Cash 2,500
IFRS 3.B64(f)(iv),
IAS 7.43 Equity instruments (8,000 ordinary shares) 26(A)(i) 87
Replacement share-based payment awards 120
IFRS 3.B64(f)(iii) Contingent consideration 32(B)(iii) 250
Settlement of pre-existing relationship 9(B) (326)
Total consideration transferred 2,631
i. Equity instruments issued

IFRS 3.B64(f)(iv) The fair value of the ordinary shares issued was based on the listed share price of the Company at
31 March 2021 of €10.88 per share.
NOTES
ii. Replacement share-based payment awards

IFRS 3.B64(l) In accordance with the terms of the acquisition agreement, the Group exchanged equity-settled
share-based payment awards held by employees of Papyrus (the acquiree’s awards) for equity-
settled share-based payment awards of the Company (the replacement awards). The details of the
acquiree’s awards and replacement awards were as follows.
Acquiree’s awards Replacement awards
Terms and conditions Grant date: 1 April 2020 Vesting date: 31 March 2024
Vesting date: 31 March 2024 Service condition
Service condition
Appendices
Fair value at date of

acquisition €527 thousand €571 thousand
IFRS 3.3 a. There are no additional disclosure requirements introduced by Definition of a Business (Amendments to IFRS 3). An
entity applies the existing disclosure requirements of IFRS 3. This information is provided for illustration purposes only.
Group composition
Introduction
34. Acquisition of subsidiary (continued)
A. Consideration transferred (continued)
ii. Replacement share-based payment awards (continued)
The value of the replacement awards is €520 thousand, after taking into account an estimated
forfeiture rate of 9%. The consideration for the business combination includes €120 thousand
transferred to employees of Papyrus when the acquiree’s awards were substituted by the
replacement awards, which relates to past service. The balance of €400 thousand will be
recognised as post-acquisition compensation cost. For further details on the replacement awards,
see Note 12(A)(ii).
Auditors’ report
iii. Contingent consideration
IFRS 3.B64(g), B67(b) The Group has agreed to pay the selling shareholders in three years’ time additional consideration
of €600 thousand if the acquiree’s cumulative EBITDA over the next three years exceeds
€10,000 thousand. The Group has included €250 thousand as contingent consideration related
to the additional consideration, which represents its fair value at the date of acquisition. At
31 December 2021, the contingent consideration had increased to €270 thousand (see Note 29).
iv. Settlement of pre-existing relationship

IFRS 3.B64(l) The Group and Papyrus were parties to a long-term supply contract under which Papyrus supplied
the Group with timber products at a fixed price. Under the contract, the Group could terminate the
agreement early by paying Papyrus €326 thousand. This pre-existing relationship was effectively
terminated when the Group acquired Papyrus.
Primary statements
The Group has attributed €326 thousand of the consideration transferred to the extinguishment of
the supply contract, and has included the amount in ‘other expenses’ (see Note 9(B)). This amount
is the lower of the termination amount and the value of the off-market element of the contract. The
fair value of the contract at the date of acquisition was €600 thousand, of which €400 thousand
related to the unfavourable aspect of the contract to the Group relative to market prices.
B. Acquisition-related costs
IFRS 3.B64(l)–(m) The Group incurred acquisition-related costs of €50 thousand on legal fees and due diligence
costs. These costs have been included in ‘administrative expenses’.
IFRS 3.B64(i), C. Identifiable assets acquired and liabilities assumed

IAS 7.40(a)–(d)
The following table summarises the recognised amounts of assets acquired and liabilities
assumed at the date of acquisition.
Property, plant and equipment 21(A) 1,955 NOTES

Intangible assets 22(A) 250
Inventories 825
IFRS 3.B64(h)(i) Trade receivables 848
IAS 7.40(c) Cash and cash equivalents 375
Loans and borrowings (500)
Deferred tax liabilities 14(E) (79)
Contingent liabilities 31 (20)
Site restoration provision 31 (150)
Trade and other payables (460)
Total identifiable net assets acquired 3,044
Appendices

Introduction

C. Identifiable assets acquired and liabilities assumed (continued)
IFRS 3.61 i. Measurement of fair valuesa
The valuation techniques used for measuring the fair value of material assets acquired were as
follows.
Assets acquired Valuation technique
Property, Market comparison technique and cost technique: The valuation model considers market prices
plant and for similar items when they are available, and depreciated replacement cost when appropriate.
equipment Depreciated replacement cost reflects adjustments for physical deterioration as well as
functional and economic obsolescence.
Auditors’ report
Intangible Relief-from-royalty method and multi-period excess earnings method: The relief-from-royalty
assets method considers the discounted estimated royalty payments that are expected to be avoided
as a result of the patents being owned. The multi-period excess earnings method considers the
present value of net cash flows expected to be generated by the customer relationships, by
excluding any cash flows related to contributory assets.
Inventories Market comparison technique: The fair value is determined based on the estimated selling
price in the ordinary course of business less the estimated costs of completion and sale, and a
reasonable profit margin based on the effort required to complete and sell the inventories.
IFRS 3.B64(h)(ii)–(iii) The trade receivables comprise gross contractual amounts due of €900 thousand, of which
€52 thousand was expected to be uncollectable at the date of acquisition.
Fair values measured on a provisional basis
The following amounts have been measured on a provisional basis.
Primary statements
IFRS 3.B67(a),
IAS 1.125
– The fair value of Papyrus’s intangible assets (patented technology and customer relationships)
has been measured provisionally, pending completion of an independent valuation.
IFRS 3.B64(j), B67(c), – Papyrus is the defendant in legal proceedings brought by a customer that alleges that Papyrus
IAS 37.86
supplied defective goods. Management’s assessment, based on its interpretation of the
underlying sales contract and independent legal advice, is that the basis for the customer’s
claim has little merit and it is not probable that an outflow will be required to settle the claim.
Management’s assessment of the fair value of this contingent liability, taking into account the
range of possible outcomes of the judicial process, is €20 thousand (see Note 40).
– Papyrus’s operations are subject to specific environmental regulations. The Group has
conducted a preliminary assessment of site restoration provisions arising from these
regulations and has recognised a provisional amount. The Group will continue to review these
matters during the measurement period.
If new information obtained within one year of the date of acquisition about facts and
NOTES
circumstances that existed at the date of acquisition identifies adjustments to the above amounts,
or any additional provisions that existed at the date of acquisition, then the accounting for the
acquisition will be revised.
Appendices
IFRS 13.BC184 a. The Group has disclosed information about the fair value measurement of assets acquired in a business
combination, although the disclosure requirements of IFRS 13 do not apply to the fair value of these assets if they
are subsequently measured at other than fair value. This disclosure is provided for illustrative purposes only.
Group composition
Introduction
D. Goodwill
Goodwill arising from the acquisition has been recognised as follows.
In thousands of euro Note 2021
Consideration transferred (A) 2,631

IFRS 3.B64(o)(i) NCI, based on their proportionate interest in the recognised amounts of
the assets and liabilities of Papyrus 305
IFRS 3.B64(p)(i) Fair value of pre-existing interest in Papyrus 649
Fair value of identifiable net assets (C) (3,044)
Auditors’ report
Goodwill 22(A) 541
IFRS 3.B64(p)(ii) The remeasurement to fair value of the Group’s existing 25% interest in Papyrus resulted in a
gain of €250 thousand (€649 thousand less the €419 thousand carrying amount of the equity-
accounted investee at the date of acquisition plus €20 thousand of translation reserve reclassified
to profit or loss). This amount has been included in ‘finance income’ (see Note 10).
IFRS 3.B64(e), B64(k) The goodwill is attributable mainly to the skills and technical talent of Papyrus’s work force and the
synergies expected to be achieved from integrating the company into the Group’s existing Standard
Papers business. None of the goodwill recognised is expected to be deductible for tax purposes.
Primary statements
NOTES
Appendices

Introduction
35. Non-controlling interestsa

See accounting policies in Note 45(A)(ii)–(iii) and (vi).
IFRS 12.10(a)(ii), 12, The following table summarises the information relating to each of the Group’s subsidiaries that has
B10–B11
material NCI, before any intra-group eliminations.b
31 December 2021 Papyrus Pty
In thousands of euro Limited
NCI percentage 10%

Non-current assets 2,500
Current assets 1,780
Non-current liabilities (715)
Auditors’ report
Current liabilities (43)

Net assets 3,522
Net assets attributable to NCI 352
Revenue 20,409
Profit 450
OCI 25
Total comprehensive income 475
Profit allocated to NCI 45
OCI allocated to NCI 3
Cash flows from operating activities 430
Cash flows from investment activities (120)
Primary statements
Cash flows from financing activities (dividends to NCI: nil) 12

Net increase (decrease) in cash and cash equivalents 322
31 December 2020
NCI percentage -
Non-current assets -
Current assets -
Non-current liabilities -
Current liabilities -
Net assets -
Net assets attributable to NCI -
Revenue -
Profit -
NOTES
OCI -
Total comprehensive income -
Profit allocated to NCI -
OCI allocated to NCI -
Cash flows from operating activities -
Cash flows from investment activities -
Cash flows from financing activities (dividends to NCI: nil) -
Net increase (decrease) in cash and cash equivalents -
* See Note 44.
On 31 March 2021, the Group’s equity interest in Papyrus increased from 25 to 90% and Papyrus
became a subsidiary from that date (see Note 34). Accordingly, the information relating to Papyrus is
Appendices
only for the period from 1 April to 31 December 2021.
Group composition
Introduction
Other individually
immaterial Intra-group
Oy Kossu AG Swissolote AG Maple-leaf Inc Silver Fir S.A. subsidiaries eliminations Total
10% 25% 55% 52%

9,550 7,438 1,550 4,948
5,120 1,115 890 1,272
(5,230) (6,575) (1,280) (533)
Auditors’ report
(5,084) (915) (442) (1,018)
4,356 1,063 718 4,669
436 266 395 2,428 7 (80) 3,804
10,930 9,540 8,112 15,882
566 410 245 309
- - 44 -
566 410 289 309
57 103 135 161 3 (7) 497
- - 24 - - (1) 26
210 166 (268) (135)
510 75 - (46)
Primary statements
(600) (320) - 130
120 (79) (268) (51)
Other individually
Oy Kossu AG Swissolote AG immaterial Intra-group
Restated* Restated* Maple-leaf Inc Silver Fir S.A. subsidiaries eliminations Total
10% 40% 55% 52%

9,120 7,322 1,394 4,874
4,960 1,278 850 638
(5,900) (6,900) (1,200) -
(4,390) (1,047) (615) (1,152)
3,790 653 429 4,360
379 261 236 2,267 2 (54) 3,091
8,660 9,390 6,259 13,743
150 252 236 285 NOTES
- - 40 -
150 252 276 285
15 101 130 148 (5) (38) 351
- - 22 - - - 22
300 115 530 (100)
(25) (40) (788) (30)
(200) (50) 190 130
75 25 (68) -
Appendices
a. For additional disclosure examples and explanatory notes on IFRS 12, see our Guide to annual financial statements –
IFRS 12 supplement.
b. Although it is not required by IFRS 12, the Group has reconciled from the summarised financial information about
subsidiaries with material NCI to the total amounts in the financial statements. This disclosure is provided for
illustrative purposes only.

Introduction
36. Acquisition of NCI

See accounting policies in Note 45(A)(ii)–(iii).
IFRS 12.10(b)(iii), 18 In June 2021, the Group acquired an additional 15% interest in Swissolote, increasing its
ownership from 60 to 75%. The carrying amount of Swissolote’s net assets in the Group’s
consolidated financial statements on the date of the acquisition was €767 thousand.
Carrying amount of NCI acquired (€767 x 15%) 115

Consideration paid to NCI 200
A decrease in equity attributable to owners of the Company (85)
Auditors’ report
The decrease in equity attributable to owners of the Company comprised:

– a decrease in retained earnings of €93 thousand; and
– an increase in the translation reserve of €8 thousand.
Primary statements
NOTES
Appendices
Other information
Introduction
37. Loan covenant waiver
IFRS 7.18–19 As explained in Note 28(B), the Group exceeded its maximum leverage threshold (loan covenant
ratio, calculated as debt to quarterly revenue for continuing operations) associated with a bank
loan in the third quarter of 2021. The Group obtained a waiver of the breach of covenant in October
2021 for a period of 18 months. Subsequent to 31 December 2021, the bank revised the loan
covenant ratio from 2.5 to 3.5 times and the waiver was lifted. On the basis of the new covenant
and its forecasts, management believes that the risk of the new covenant being breached is low.
Auditors’ report
Primary statements
NOTES
Appendices

Introduction
38. Leases
See accounting policy in Note 45(U).
A. Leases as lessee
IFRS 16.51, 59 The Group leases warehouse and factory facilities. The leases typically run for a period of 10 years,
with an option to renew the lease after that date. Lease payments are renegotiated every
five years to reflect market rentals. Some leases provide for additional rent payments that are
based on changes in local price indices. For certain leases, the Group is restricted from entering
into any sub-lease arrangements.
IAS 1.122 The warehouse and factory leases were entered into many years ago as combined leases of land
Auditors’ report
and buildings.
During 2021, one of the leased properties has been sub-let by the Group. The lease and sub-lease
expire in 2023.
IFRS 16.60 The Group leases IT equipment with contract terms of one to three years. These leases are short-
term and/or leases of low-value items. The Group has elected not to recognise right-of-use assets
and lease liabilities for these leases.
IFRS 16.53–54 Information about leases for which the Group is a lessee is presented below.
i. Right-of-use assetsa
IFRS 16.47(a)(ii) Right-of-use assets related to leased properties that do not meet the definition of investment
property are presented as property, plant and equipment (see Note 21(A)).
Primary statements
Land and Production

In thousands of euro buildings equipment Total
2021
IFRS 16.53(j) Balance at 1 January 2,181 1,972 4,153
IFRS 16.53(a) Depreciation charge for the year (25) (283) (308)
IFRS 16.53(h) Additions to right-of-use assets 150 - 150
Derecognition of right-of-use assets* (402) - (402)
IFRS 16.53(j) Balance at 31 December 1,904 1,689 3,593
* Derecognition of the right-of-use assets is as a result of entering into a finance sub-lease.
NOTES
Appendices
a. Although it is not required by IFRS 16, the Group has reconciled the opening and closing right-of-use asset carrying
amounts in the financial statements. This disclosure is provided for illustrative purposes only.
Other information
Introduction
38. Leases (continued)
A. Leases as lessee (continued)
i. Right-of-use assets (continued)
Land and Production
In thousands of euro buildings equipment Total
2020
IFRS 16.53(j) Balance at 1 January 2,526 2,057 4,583
IFRS 16.53(a) Depreciation charge for the year (30) (265) (295)
IFRS 16.53(h) Additions to right-of-use assets - 180 180
Derecognition of right-of-use assets* (315) - (315)
Auditors’ report
IFRS 16.53(j) Balance at 31 December 2,181 1,972 4,153
* Derecognition of the right-of-use assets is as a result of entering into a finance sub-lease.
ii. Amounts recognised in profit or loss

IFRS 16.53(b) Interest on lease liabilities 320 238

IFRS 16.53(f) Income from sub-leasing right-of-use assets presented in ‘other revenue’ (150) (90)
IFRS 16.53(c) Expenses relating to short-term leases 80 90
IFRS 16.53(d) Expenses relating to leases of low-value assets, excluding short-term
leases of low-value assets 65 119
iii. Amounts recognised in statement of cash flows
Primary statements
IFRS 16.53(g) Total cash outflow for leases 1,019 1,037
iv. Extension options

IFRS 16.59(b)(ii), B50, Some property leases contain extension options exercisable by the Group up to one year
IE10 Ex.23 before the end of the non-cancellable contract period. Where practicable, the Group seeks to
include extension options in new leases to provide operational flexibility. The extension options
held are exercisable only by the Group and not by the lessors. The Group assesses at the lease
commencement date whether it is reasonably certain to exercise the extension options. The
Group reassesses whether it is reasonably certain to exercise the options if there is a significant
event or significant changes in circumstances within its control.
The Group has estimated that the potential future lease payments, should it exercise the
extension option, would result in an increase in lease liability of €120 thousand.
NOTES
B. Leases as lessor
IFRS 16.90–91 The Group leases out its investment property consisting of its owned commercial properties
as well as leased property (see Note 23). All leases are classified as operating leases from a
lessor perspective with the exception of a sub-lease, which the Group has classified as a finance
sub‑lease.
Appendices

Introduction
38. Leases (continued)

B. Leases as lessor (continued)
i. Finance lease
IFRS 16.92(a) During 2021, the Group has sub-leased a building that has been presented as part of a right-of-use
asset – property, plant and equipment.
IFRS 16.90(a)(i) During 2021, the Group recognised a gain of €22 thousand (2020: nil) on derecognition of the right-
of-use asset pertaining to the building and presented the gain as part of ‘Gain on sale of property,
plant and equipment’ (see Note 9(A)).
IFRS 16.90(a)(ii) During 2021, the Group recognised interest income on lease receivables of €2 thousand (2020:
Auditors’ report
nil).
IFRS 16.94 The following table sets out a maturity analysis of lease receivables, showing the undiscounted
lease payments to be received after the reporting date.
Less than one year 103 35

One to two years 128 100
Two to three years 131 120
Three to four years 92 100
Four to five years - -
More than five years - -
Total undiscounted lease receivable 454 355
Primary statements
Unearned finance income 30 40

Net investment in the lease 424 315
ii. Operating lease

IFRS 16.92(a) The Group leases out its investment property. The Group has classified these leases as operating
leases, because they do not transfer substantially all of the risks and rewards incidental to the
ownership of the assets. Note 23 sets out information about the operating leases of investment
property.
IFRS 16.90(b) Rental income recognised by the Group during 2021 was €460 thousand (2020: €302 thousand).
IFRS 16.97 The following table sets out a maturity analysis of lease payments, showing the undiscounted
lease payments to be received after the reporting date.
Less than one year 450 332

NOTES
One to two years 400 420

Two to three years 380 390
Three to four years 350 360
Four to five years 340 300
More than five years 145 445
Total 2,065 2,247
Appendices
Other information
Introduction
39. Commitments
IAS 16.74(c) During 2021, the Group entered into a contract to purchase property, plant and equipment and
patents and trademarks in 2021 for €1,465 thousand (2020: nil) and €455 thousand (2020: nil)
respectively.
The Group is committed to incurring other capital expenditure of €150 thousand (2020:
€45 thousand). The Group’s joint venture is committed to incurring capital expenditure
of €23 thousand (2020: €11 thousand), of which the Group’s share is €9 thousand (2020:
€4 thousand). These commitments are expected to be settled in 2022.
IAS 40.75(h) The Group has entered into contracts for the management and maintenance of certain commercial
properties that are leased to third parties. These contracts will give rise to annual expense of
Auditors’ report
€15 thousand for the next five years.
40. Contingencies
IAS 1.125, 37.86 A subsidiary is defending an action brought by an environmental agency in Europe. Although
liability is not admitted, if the defence against the action is unsuccessful, then fines and legal
costs could amount to €950 thousand, of which €250 thousand would be reimbursable under an
insurance policy. Based on legal advice, management believes that the defence against the action
will be successful.
As part of the acquisition of Papyrus, the Group recognised a contingent liability of €20 thousand in
respect of a claim for contractual penalties made by one of Papyrus’s customers (see Note 34(C)).
Primary statements
NOTES
Appendices

Introduction
41. Related partiesa

A. Parent and ultimate controlling party
IAS 1.138(c), 24.13 During 2021, a majority of the Company’s shares were acquired by Cameron Paper Co from
Brown Products Corporation. As a result, the new ultimate controlling party of the Group is
AJ Pennypacker. The previous ultimate controlling party was Sigma Global Investment Holdings.b
IAS 24.18 B. Transactions with key management personnel

i. Key management personnel compensation
Key management personnel compensation comprised the following.
Auditors’ report
IAS 24.17(a) Short-term employee benefits 502 420

IAS 19.151(b), 24.17(b) Post-employment benefits 82 103
IAS 24.17(c) Other long-term benefits 3 2
IAS 24.17(d) Termination benefits 25 -
IAS 24.17(e) Share-based payments 516 250
1,128 775
Compensation of the Group’s key management personnel includes salaries, non-cash benefits and
contributions to a post-employment defined benefit plan (see Note 13).
Executive officers also participate in the Group’s share option programme (see Note 12(A)(i)).
Furthermore, employees of the Company are entitled to participate in a share purchase
Primary statements
programme (see Note 12(A)(iii)) if they meet the criteria of investing a percentage of each month’s
salary for a period of 36 months. Consequently, the Group has deducted €78 thousand from the
salaries of the employees concerned (including an amount of €37 thousand that relates to key
management personnel), to satisfy the criteria. The amounts withheld are included in ‘trade and
other payables’ (see Note 29).
IAS 24.17(d) As a result of the termination of the employment of one of the Group’s executives in France, the
executive received an enhanced retirement entitlement. Accordingly, the Group has recognised an
expense of €25 thousand during the year (2020: nil).
ii. Key management personnel transactions

Directors of the Company control 12% of the voting shares of the Company. A relative of a director
of a subsidiary has a 10% share in the Group’s joint venture (see Note 24(A)).
A number of key management personnel, or their related parties, hold positions in other
companies that result in them having control or significant influence over these companies.
NOTES
IAS 24.18(b)(i) A number of these companies transacted with the Group during the year. The terms and
conditions of these transactions were no more favourable than those available, or which might
reasonably be expected to be available, in similar transactions with non-key management
personnel-related companies on an arm’s length basis.
Appendices
a. For example disclosures for government-related entities that apply the exemption in paragraph 25 of IAS 24 Related
Party Disclosures, see Appendix IV.
IAS 24.13 b. The Company’s parent produces consolidated financial statements that are available for public use. If neither the
Company’s parent nor its ultimate controlling party produced consolidated financial statements available for public
use, then the Company would disclose the name of the next most senior parent that does so. If neither the ultimate
controlling party nor any intermediate controlling party produced consolidated financial statements that are available
for public use, then this fact would be disclosed.
Other information
Introduction
41. Related parties (continued)
B. Transactions with key management personnel (continued)
ii. Key management personnel transactions (continued)
IAS 24.18(a) The aggregate value of transactions and outstanding balances related to key management
personnel and entities over which they have control or significant influence were as follows.
Transaction values for the Balance outstanding as at
In thousands of euro year ended 31 December 31 December
Transaction Note 2021 2020 2021 2020
Legal fees (a) 12 13 - -
Auditors’ report
Repairs and maintenance (b) 410 520 137 351
Inventory purchases – paper (c) 66 - - -
IAS 24.18(b)(i), 23 a. The Group used the legal services of one of its directors in relation to advice over the sale of
certain non-current assets of the Company. Amounts were billed based on market rates for
such services and were due and payable under normal payment terms.
b. In 2020, the Group entered into a two-year contract with On-Track Limited, a company
controlled by another director, to buy repairs and maintenance services on production
equipment. The total contract value is €986 thousand. The contract terms are based on
market rates for these types of services and amounts are payable on a quarterly basis for the
duration of the contract.
c. The Group bought various paper supplies from Alumfab Limited, a company that is controlled
Primary statements
by another director. Amounts were billed based on market rates for such supplies and were
due and payable under normal payment terms.
From time to time directors of the Group, or their related entities, may buy goods from the Group.
These purchases are on the same terms and conditions as those entered into by other Group
employees or customers.
IAS 24.18 C. Other related party transactionsa

Transaction values for the Balance outstanding as at
year ended 31 December 31 December
In thousands of euro Note 2021 2020 2021 2020
IAS 24.18(a)–(b), 19 Sale of goods and services

Parent of the Group – Cameron Paper Co
(2020: Brown Products Corporation) 350 320 253 283
Joint venture 745 250 651 126
Associates 400 150 332 233 NOTES
Purchase of goods
Joint venture 1,053 875 - -
Others
Joint venture
– Dividends received 24 21 - - -
Associates
– Loan and related interest 28 5 6 - 1,000
Appendices
Insights 5.5.120.30 a. In our view, an entity should disclose the portions of transactions with joint ventures or associates that are not
eliminated in applying equity accounting in the consolidated financial statements.

Introduction

IAS 24.18 C. Other related party transactions (continued)
IAS 24.18(b)(i)–(ii), All outstanding balances with these related parties are priced on an arm’s length basis and are to
18(c)–(d), 23
be settled in cash within two months of the reporting date. None of the balances are secured. No
expense has been recognised in the current year or prior year for bad or doubtful debts in respect
of amounts owed by related parties. During 2021, there were no transactions or outstanding
balances with Brown Products Corporation, the previous parent of the Group. No guarantees have
been given or received.
To support the activities of the joint venture, the Group and the other investors in the joint venture
have agreed to make additional contributions in proportion to their interests to make up any losses,
Auditors’ report
if required (see Note 24).

IAS 1.114(c)(iv)(1), Purchase obligations in relation to recycled paper products arise from supply and service contracts
24.21
signed by the Group. During 2021, the Group entered into an €89 thousand supply agreement with
Cameron Paper Co. At 31 December 2021, the Group has used €25 thousand of its commitment
under the agreement.
Primary statements
NOTES
Appendices
Other information
Introduction
42. Subsequent events
IAS 10.21–22 A. Restructuring
At the end of January 2022, the Group announced its intention to implement a cost-reduction
programme and to take further measures to reduce costs. Additionally, to enable the Group
to adapt its size to current market conditions, it intends to reduce the Group’s workforce by
400 positions worldwide by the end of 2022, by means of non-replacement whenever possible.
The Group expects the restructuring associated with the reduction in positions to cost between
€600 thousand and €850 thousand in 2022 and 2023.
IAS 10.21–22 B. Others
Auditors’ report
Subsequent to 31 December 2021, one of the Group’s major trade customers went into
liquidation following a natural disaster in February 2022 that damaged its operating plant. Of the
€100 thousand owed by the customer, the Group expects to recover less than €10 thousand. No
additional allowance for impairment has been made in these consolidated financial statements.
On 10 January 2022, one of the premises of Oy Kossu AG, having a carrying amount of
€220 thousand, was seriously damaged by fire. Surveyors are in the process of assessing the
extent of the loss, following which the Group will file a claim for reimbursement with the insurance
company. The Group is unable to estimate the incremental costs relating to refurbishment and
temporary shift of production to other locations (in excess of the reimbursement expected).
As explained in Note 28(B), the Group breached a financial loan covenant associated with a bank
loan in the third quarter of 2021. The Group obtained a waiver for the breach of covenant in October
2021 for a period of 18 months. Subsequent to 31 December 2021, the bank revised the loan
Primary statements
covenant ratio and the waiver was lifted (see Note 37).
On 23 March 2022, an increase in the Netherlands corporate tax rate from 25 to 30% was
substantively enacted, effective from 1 January 2023. This increase does not affect the amounts
of current or deferred income taxes recognised at 31 December 2021. However, this change will
increase the Group’s future current tax charge accordingly. If the new tax rate were applied to
calculate taxable temporary differences and tax losses recognised as at 31 December 2021 the
effect would be that net deferred tax assets would increase by €27 thousand (see Note 14).
On 22 July 2021, the Group announced its intention to acquire all of the shares of ABC Company
for €6,500 thousand. On 4 January 2022, the Group’s shareholders approved the transaction
and the Group is now awaiting approval from regulatory authorities before proceeding with the
acquisition. Management anticipates that this approval will be received by April 2022.
NOTES
Appendices

Introduction
43. Basis of measurement

IAS 1.112(a), 117(a) The consolidated financial statements have been prepared on the historical cost basis except for
the following items, which are measured on an alternative basis on each reporting date.
Items Measurement bases
Derivative financial instruments Fair value

Non-derivative financial instruments at FVTPL Fair value
Debt and equity securities at FVOCI Fair value
Contingent consideration assumed in a Fair value
business combination
Auditors’ report
Biological assets Fair value less costs to sell

Investment property Fair value
Liabilities for cash-settled shared-based Fair value
payment arrangements
Net defined benefit (asset) liability Fair value of plan assets less the present value
of the defined benefit obligation, limited as
explained in Note 45(E)(iv)
Primary statements
NOTES
Appendices
Accounting policies
Introduction
44. Correction of errorsa
IAS 8.49 During 2021, the Group discovered that maintenance expenses had been erroneously duplicated
in its financial statements since 2019. As a consequence, maintenance expenses and the related
liabilities have been overstated. The errors have been corrected by restating each of the affected
financial statement line items for prior periods. The following tables summarise the impacts on the
Group’s consolidated financial statements.
IAS 8.49 i. Consolidated statement of financial position
Impact of correction of error
1 January 2020 As previously
In thousands of euro reported Adjustments As restated
Auditors’ report
Total assets 86,344 - 86,344
Trade and other payables (current) (28,335) 85 (28,250)
Deferred tax liabilities (295) (28) (323)
Others (28,209) - (28,209)
Total liabilities (56,839) 57 (56,782)
Retained earnings (8,440) (57) (8,497)
Others (21,065) - (21,065)
Total equity (29,505) (57) (29,562)
31 December 2020 As previously
Primary statements
Total assets 90,013 - 90,013
Trade and other payables (current) (21,424) 96 (21,328)
Deferred tax liabilities (374) (32) (406)
Others (32,913) - (32,913)
Total liabilities (54,711) 64 (54,647)
Retained earnings (13,722) (64) (13,786)
Others (21,580) - (21,580)
Total equity (35,302) (64) (35,366)
IAS 8.49 ii. Consolidated statement of profit or loss and OCI
Impact of correction of error
For the year ended 31 December 2020 As previously
Administrative expenses (14,439) 11 (14,428)

Income tax expense (2,456) (4) (2,460) NOTES
Others 22,862 - 22,862

Profit 5,967 7 5,974
Total comprehensive income 6,398 7 6,405
There is no material impact on the Group’s basic or diluted earnings per share and no impact on
the total operating, investing or financing cash flows for the year ended 31 December 2020.
Appendices
IAS 8.49 a. The Group has disclosed the nature of the prior-period error and the amount of the correction for each financial
statement line item affected as required by IAS 8.

Introduction
45. Significant accounting policiesa

IAS 1.112(a), 116, The Group has consistently applied the following accounting policies to all periods presented in
117(b), 119–121
these consolidated financial statements, except if mentioned otherwise (see also Note 5).
IFRS 5.34, IAS 1.41, Certain comparative amounts in the statement of profit or loss and OCI have been restated,
8.28
reclassified or re-presented, as a result of a correction of a prior-period error (see Note 44),
a change in the classification of certain depreciation expenses during the current year (see
Note 21(H)) or an operation discontinued during the current year (see Note 7).
Set out below is an index of the significant accounting policies, the details of which are available on
the pages that follow.
Auditors’ report
A. Basis of consolidation 167

B. Foreign currency 168
C. Discontinued operation 169
D. Revenue from contracts with customers 169
E. Employee benefits 169
F. Government grants 171
G. Emissions schemes 171
H. Finance income and finance costs 171
I. Income tax 173
Primary statements
J. Biological assets 174

K. Inventories 174
L. Property, plant and equipment 174
M. Intangible assets and goodwill 176
N. Investment property 176
O. Assets held for sale 177
P. Financial instruments 177
Q. Share capital 185
R. Compound financial instruments 185
S. Impairment 186
NOTES
T. Provisions 188
U. Leases 188
V. Operating profit 190
W. Fair value measurement 190
a. The example accounting policies illustrated reflect the circumstances of the Group on which these financial
statements are based, by describing only the specific policies that are relevant to an understanding of the Group’s
Appendices
consolidated financial statements. For example, the accounting policy for preference shares (see Note 45(Q)(ii)) is not
intended to be a complete description of the classification of such shares in general. These example accounting
policies should not be relied on for a complete understanding of IFRS Standards and should not be used as
a substitute for referring to the standards and interpretations themselves. To help you identify the underlying
requirements in IFRS Standards, references to the recognition and measurement requirements in IFRS Standards
that are relevant for a particular accounting policy have been included and indicated by square brackets – e.g.
[IFRS 3.19].
Accounting policies
Introduction
45. Significant accounting policies (continued)
A. Basis of consolidation
i. Business combinations
[IFRS 3.3–4, 32, 34, The Group accounts for business combinations using the acquisition method when the acquired
53, B5–B12]
set of activities and assets meets the definition of a business and control is transferred to the
Group (see (A)(ii)). In determining whether a particular set of activities and assets is a business,
the Group assesses whether the set of assets and activities acquired includes, at a minimum, an
input and substantive process and whether the acquired set has the ability to produce outputs.
The Group has an option to apply a ‘concentration test’ that permits a simplified assessment of
Auditors’ report
whether an acquired set of activities and assets is not a business. The optional concentration
test is met if substantially all of the fair value of the gross assets acquired is concentrated in a
single identifiable asset or group of similar identifiable assets.
The consideration transferred in the acquisition is generally measured at fair value, as are the
identifiable net assets acquired. Any goodwill that arises is tested annually for impairment
(see (R)(ii)). Any gain on a bargain purchase is recognised in profit or loss immediately. Transaction
costs are expensed as incurred, except if related to the issue of debt or equity securities (see (P)).
[IFRS 3.B52] The consideration transferred does not include amounts related to the settlement of pre-existing
relationships. Such amounts are generally recognised in profit or loss.
[IFRS 3.40, 58] Any contingent consideration is measured at fair value at the date of acquisition. If an obligation
to pay contingent consideration that meets the definition of a financial instrument is classified
as equity, then it is not remeasured and settlement is accounted for within equity. Otherwise,
Primary statements
other contingent consideration is remeasured at fair value at each reporting date and subsequent
changes in the fair value of the contingent consideration are recognised in profit or loss.
[IFRS 3.30, B57–B61] If share-based payment awards (replacement awards) are required to be exchanged for awards
held by the acquiree’s employees (acquiree’s awards), then all or a portion of the amount of
the acquirer’s replacement awards is included in measuring the consideration transferred in
the business combination. This determination is based on the market-based measure of the
replacement awards compared with the market-based measure of the acquiree’s awards and the
extent to which the replacement awards relate to pre-combination service.
ii. Subsidiaries
[IFRS 10.6, 20] Subsidiaries are entities controlled by the Group. The Group ‘controls’ an entity when it is exposed
to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. The financial statements of subsidiaries are
included in the consolidated financial statements from the date on which control commences until
the date on which control ceases. NOTES
iii. Non-controlling interests

[IFRS 3.19] NCI are measured initially at their proportionate share of the acquiree’s identifiable net assets at
the date of acquisition.a
[IFRS 10.23, B96] Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted
for as equity transactions.
iv. Loss of control

[IFRS 10.25, B98–B99] When the Group loses control over a subsidiary, it derecognises the assets and liabilities of the
subsidiary, and any related NCI and other components of equity. Any resulting gain or loss is
recognised in profit or loss. Any interest retained in the former subsidiary is measured at fair value
when control is lost.
Appendices
IFRS 3.19 a. An entity has a choice on a combination-by-combination basis to measure any NCI in the acquiree at either the
proportionate share of the acquiree’s identifiable net assets or fair value. The Group has elected the former approach.

Introduction

A. Basis of consolidation (continued)
v. Interests in equity-accounted investeesa
The Group’s interests in equity-accounted investees comprise interests in associates and a joint
venture.
[IFRS 11.15–16, Associates are those entities in which the Group has significant influence, but not control or joint
IAS 28.3]
control, over the financial and operating policies. A joint venture is an arrangement in which the
Group has joint control, whereby the Group has rights to the net assets of the arrangement, rather
than rights to its assets and obligations for its liabilities.
Auditors’ report
[IAS 28.38–39] Interests in associates and the joint venture are accounted for using the equity method. They are
initially recognised at cost, which includes transaction costs. Subsequent to initial recognition, the
consolidated financial statements include the Group’s share of the profit or loss and OCI of equity-
accounted investees, until the date on which significant influence or joint control ceases.
vi. Transactions eliminated on consolidation

[IFRS 10.B86(c), Intra-group balances and transactions, and any unrealised income and expenses (except for
IAS 28.28]
foreign currency transaction gains or losses) arising from intra-group transactions, are eliminated.
Unrealised gains arising from transactions with equity-accounted investees are eliminated against
the investment to the extent of the Group’s interest in the investee.b Unrealised losses are
eliminated in the same way as unrealised gains, but only to the extent that there is no evidence of
impairment.
Primary statements
B. Foreign currency
i. Foreign currency transactions
[IAS 21.21] Transactions in foreign currencies are translated into the respective functional currencies of Group
companies at the exchange rates at the dates of the transactions.
[IAS 21.23] Monetary assets and liabilities denominated in foreign currencies are translated into the functional
currency at the exchange rate at the reporting date. Non-monetary assets and liabilities that are
measured at fair value in a foreign currency are translated into the functional currency at the
exchange rate when the fair value was determined. Non-monetary items that are measured
based on historical cost in a foreign currency are translated at the exchange rate at the date of the
transaction. Foreign currency differences are generally recognised in profit or loss and presented
within finance costs.c
[IFRS 9.B5.7.3] However, foreign currency differences arising from the translation of the following items are
recognised in OCI:
NOTES
– an investment in equity securities designated as at FVOCI (except on impairment, in which case

foreign currency differences that have been recognised in OCI are reclassified to profit or loss);
– a financial liability designated as a hedge of the net investment in a foreign operation to the
extent that the hedge is effective (see (P)(v)); and
– qualifying cash flow hedges to the extent that the hedges are effective.
Insights a. Although it is not illustrated, an entity’s equity-accounted investee may have accounting policies for items that do
5.10.140.150 not apply to the investor. In our view, this information should be included in the accounting policy note for equity-
accounted investees if it is necessary for an understanding of equity-accounted earnings or the carrying amount of
equity-accounted investees.
Insights 3.5.430.30 b. In the absence of specific guidance in IFRS Standards, the Group has elected to eliminate unrealised gains and
Appendices
losses resulting from transactions with equity-accounted investees against the investment in the investees.
Alternatively, the elimination may be presented as a reduction in the underlying asset – e.g. inventory.
Insights 2.7.160.20 c. In our experience, the most common practice is for all such exchange differences related to monetary items to be
included as part of finance costs. However, it is also acceptable to allocate the exchange differences to the various
line items affected. If exchange differences are allocated in this way, then this should be done consistently from
period to period having regard to the guidance in IAS 1 on offsetting, and in our view it would be necessary to
disclose the entity's allocation policy, if it is significant, in the financial statements.
Accounting policies
Introduction
B. Foreign currency (continued)
ii. Foreign operations
[IAS 21.39] The assets and liabilities of foreign operations, including goodwill and fair value adjustments
arising on acquisition, are translated into euro at the exchange rates at the reporting date. The
income and expenses of foreign operations are translated into euro at the exchange rates at the
dates of the transactions.
[IFRS 10.B94, Foreign currency differences are recognised in OCI and accumulated in the translation reserve,
IAS 21.41]
except to the extent that the translation difference is allocated to NCI.
Auditors’ report
[IAS 21.48–48D] When a foreign operation is disposed of in its entirety or partially such that control, significant
influence or joint control is lost, the cumulative amount in the translation reserve related to
that foreign operation is reclassified to profit or loss as part of the gain or loss on disposal. If
the Group disposes of part of its interest in a subsidiary but retains control, then the relevant
proportion of the cumulative amount is reattributed to NCI. When the Group disposes of only part
of an associate or joint venture while retaining significant influence or joint control, the relevant
proportion of the cumulative amount is reclassified to profit or loss.
C. Discontinued operation
[IFRS 5.32] A discontinued operation is a component of the Group’s business, the operations and cash flows
of which can be clearly distinguished from the rest of the Group and which:
– represents a separate major line of business or geographic area of operations;
Primary statements
– is part of a single co-ordinated plan to dispose of a separate major line of business or geographic
area of operations; or
– is a subsidiary acquired exclusively with a view to resale.
Classification as a discontinued operation occurs at the earlier of disposal or when the operation
meets the criteria to be classified as held-for-sale.
IFRS 5.34 When an operation is classified as a discontinued operation, the comparative statement of profit
or loss and OCI is re-presented as if the operation had been discontinued from the start of the
comparative year.
D. Revenue from contracts with customersa

Information about the Group’s accounting policies relating to contracts with customers is provided
in Note 8(D).
E. Employee benefits
NOTES
i. Short-term employee benefits
[IAS 19.11] Short-term employee benefits are expensed as the related service is provided. A liability is
recognised for the amount expected to be paid if the Group has a present legal or constructive
obligation to pay this amount as a result of past service provided by the employee and the
obligation can be estimated reliably.
Appendices
IAS 1.117(b), 119 a. The Group presents significant accounting policies related to revenue from contracts with customers in the
‘revenue’ note, rather than in a separate note with other significant accounting policies. Other approaches to
presenting accounting policies may be acceptable.

Introduction

E. Employee benefits (continued)
ii. Share-based payment arrangements
[IFRS 2.14–15, The grant-date fair value of equity-settled share-based payment arrangements granted to
19–21, 21A]
employees is generally recognised as an expense, with a corresponding increase in equity, over
the vesting period of the awards. The amount recognised as an expense is adjusted to reflect
the number of awards for which the related service and non-market performance conditions
are expected to be met, such that the amount ultimately recognised is based on the number of
awards that meet the related service and non-market performance conditions at the vesting date.
For share-based payment awards with non-vesting conditions, the grant-date fair value of the
Auditors’ report
share-based payment is measured to reflect such conditions and there is no true-up for differences
between expected and actual outcomes.
[IFRS 2.30, 32] The fair value of the amount payable to employees in respect of SARs, which are settled in cash,
is recognised as an expense with a corresponding increase in liabilities, over the period during
which the employees become unconditionally entitled to payment. The liability is remeasured at
each reporting date and at settlement date based on the fair value of the SARs. Any changes in the
liability are recognised in profit or loss.
iii. Defined contribution plans
[IAS 19.28, 51] Obligations for contributions to defined contribution plans are expensed as the related service is
provided. Prepaid contributions are recognised as an asset to the extent that a cash refund or a
reduction in future payments is available.
Primary statements
iv. Defined benefit plans

[IAS 19.57, 83] The Group’s net obligation in respect of defined benefit plans is calculated separately for each plan
by estimating the amount of future benefit that employees have earned in the current and prior
periods, discounting that amount and deducting the fair value of any plan assets.
[IAS 19.63–64, The calculation of defined benefit obligations is performed annually by a qualified actuary using
IFRIC 14.23–24]
the projected unit credit method. When the calculation results in a potential asset for the Group,
the recognised asset is limited to the present value of economic benefits available in the form
of any future refunds from the plan or reductions in future contributions to the plan. To calculate
the present value of economic benefits, consideration is given to any applicable minimum
funding requirements.
[IAS 19.122, 127–130] Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses,
the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding
interest), are recognised immediately in OCI. The Group determines the net interest expense
(income) on the net defined benefit liability (asset) for the period by applying the discount rate used
to measure the defined benefit obligation at the beginning of the annual period to the then-net
NOTES
defined benefit liability (asset), taking into account any changes in the net defined benefit liability
(asset) during the period as a result of contributions and benefit payments. Net interest expense
and other expenses related to defined benefit plans are recognised in profit or loss.
[IAS 19.103, 109–110] When the benefits of a plan are changed or when a plan is curtailed, the resulting change in benefit
that relates to past service or the gain or loss on curtailment is recognised immediately in profit or
loss. The Group recognises gains and losses on the settlement of a defined benefit plan when the
settlement occurs.
v. Other long-term employee benefits
[IAS 19.155–156] The Group’s net obligation in respect of long-term employee benefits is the amount of future
benefit that employees have earned in return for their service in the current and prior periods. That
benefit is discounted to determine its present value. Remeasurements are recognised in profit or
Appendices
loss in the period in which they arise.

vi. Termination benefits
[IAS 19.165] Termination benefits are expensed at the earlier of when the Group can no longer withdraw the
offer of those benefits and when the Group recognises costs for a restructuring. If benefits are not
expected to be settled wholly within 12 months of the reporting date, then they are discounted.
Accounting policies
Introduction
F. Government grantsa
IAS 20.39(a), [IAS 20.7, The Group recognises an unconditional government grant related to a biological asset in profit or loss
26, 41.34–35] as other income when the grant becomes receivable. Other government grants related to assets are
initially recognised as deferred income at fair value if there is reasonable assurance that they will be
received and the Group will comply with the conditions associated with the grant. Grants related to
the acquisition of assets are recognised in profit or loss as other income on a systematic basis over
the useful life of the asset. Grants related to emissions certificates are recognised in profit or loss as
a reduction of emissions expense in cost of sales as the group emits pollutants (see (G)).
[IAS 20.12, 20, 29] Grants that compensate the Group for expenses incurred are recognised in profit or loss as other
Auditors’ report
income on a systematic basis in the periods in which the expenses are recognised, unless the
conditions for receiving the grant are met after the related expenses have been recognised. In this
case, the grant is recognised when it becomes receivable.
G. Emissions schemesb, c
[IAS 38.74] The Group participates in a ‘cap and trade’ scheme in various countries. Under the scheme, the
government in each country sets specific annual limits for emitting pollutants and grants the
Group the respective number of emissions certificates. The Group can settle its annual obligation
created by the emission of pollutants only by surrendering emissions certificates. If the Group’s
annual emissions are below the limit, then it can sell the remaining certificates to other parties on
a trading platform. Conversely, if the annual emissions exceed the limit, then the Group purchases
additional certificates to settle its obligation.
Primary statements
The Group recognises emissions certificates as intangible assets (see (M)). Emissions certificates
received from the government are initially measured at fair value, which is determined based
on the market price of certificates traded on the platform at that date. Emissions certificates
purchased on the trading platform are initially measured at cost. Subsequent to initial recognition,
the emissions certificates are measured at cost less any accumulated impairment losses. The cost
of emissions certificates is based on the first-in, first-out allocation method.
Emissions certificates received from the government are government grants (see (F)).
The Group recognises a liability to surrender emissions certificates as it emits pollutants. The
Group measures the liability based on the carrying amount of the certificates on hand to the
extent of emissions within the annual limit, and at the current market value of certificates to the
extent that it would be required to purchase additional certificates to settle the obligation. The
liability is presented as a provision and derecognised when the certificates are surrendered to the
government (see (T)).
NOTES
Insights 4.3.140.10 a. An entity chooses a presentation format, to be applied consistently, either to offset a grant related to income against
the related expenditure (net presentation) or to present it separately or under a general heading such as ‘other
income’ (gross presentation).
Insights 3.3.167.10 b. In our view, in determining the carrying amount of emissions certificates for the purpose of calculating a gain
or loss on disposal, the guidance for determining the cost of inventories should be applied by analogy. In some
cases, the certificates will have unique identification numbers, and therefore it will be possible to apply the specific
identification method if the holder tracks costs on an individual certificate basis. Otherwise, any reasonable
cost allocation method may be used – e.g. average cost or first-in, first-out. The method used should be applied
Appendices
consistently.
The Group has elected the first-in, first-out allocation method for emissions certificates.
Insights 3.12.510.30 c. In our view, when other means of settlement than surrendering emissions certificates are not possible, the provision
could be measured based on the current carrying amount of the certificates on hand if sufficient certificates are
owned to settle the current obligation, because that could be viewed as being the best estimate of the expenditure
required to settle the obligation. Otherwise, the provision should be based on the current market value of the
emissions certificates at the reporting date.

Introduction

H. Finance income and finance costsa
The Group’s finance income and finance costs include:
– interest income;
– interest expense;
– dividend income;
– dividend expense on preference shares issued classified as financial liabilities;
Auditors’ report
– the net gain or loss on the disposal of investments in debt securities measured at FVOCI;
– the net gain or loss on financial assets at FVTPL;
– the foreign currency gain or loss on financial assets and financial liabilities; impairment losses
(and reversals) on investments in debt securities carried at amortised cost or FVOCI;
– the gain on the remeasurement to fair value of any pre-existing interest in an acquiree in a
business combination;
– the fair value loss on contingent consideration classified as a financial liability;
– hedge ineffectiveness recognised in profit or loss; and
– the reclassification of net gains and losses previously recognised in OCI on cash flow hedges of
interest rate risk and foreign currency risk for borrowings (see Note 32(C)(iv)).
Primary statements
Interest income or expense is recognised using the effective interest method. Dividend income
is recognised in profit or loss on the date on which the Group’s right to receive payment is
established.
[IFRS 9.5.4.1–5.4.2, A] The ‘effective interest rate’ is the rate that exactly discounts estimated future cash payments or
receipts through the expected life of the financial instrument to:
– the gross carrying amount of the financial asset; or
– the amortised cost of the financial liability.
In calculating interest income and expense, the effective interest rate is applied to the gross
carrying amount of the asset (when the asset is not credit-impaired) or to the amortised cost of
the liability. However, for financial assets that have become credit-impaired subsequent to initial
recognition, interest income is calculated by applying the effective interest rate to the amortised
cost of the financial asset. If the asset is no longer credit-impaired, then the calculation of interest
income reverts to the gross basis.
NOTES
Appendices
Insights 7.10.70.37 a. There is no guidance in IFRS Standards on what is included in finance income and finance costs and the Group has
disclosed as part of its accounting policy which items constitute finance income and finance costs.
Accounting policies
Introduction
I. Income tax
[IAS 12.58] Income tax expense comprises current and deferred tax. It is recognised in profit or loss except
to the extent that it relates to a business combination, or items recognised directly in equity or
in OCI.
The Group has determined that interest and penalties related to income taxes, including uncertain
tax treatments, do not meet the definition of income taxes, and therefore accounted for them
under IAS 37 Provisions, Contingent Liabilities and Contingent Assets.a
i. Current tax
Auditors’ report
[IAS 12.2, 12, 46, Current tax comprises the expected tax payable or receivable on the taxable income or loss for the
IFRIC 23.11]
year and any adjustment to the tax payable or receivable in respect of previous years. The amount
of current tax payable or receivable is the best estimate of the tax amount expected to be paid or
received that reflects uncertainty related to income taxes, if any. It is measured using tax rates
enacted or substantively enacted at the reporting date. Current tax also includes any tax arising
from dividends.
[IAS 12.71] Current tax assets and liabilities are offset only if certain criteria are met.
ii. Deferred tax

[IAS 12.15, 24, 39, 44] Deferred tax is recognised in respect of temporary differences between the carrying amounts of
assets and liabilities for financial reporting purposes and the amounts used for taxation purposes.
Deferred tax is not recognised for:
Primary statements
– temporary differences on the initial recognition of assets or liabilities in a transaction that is not a
business combination and that affects neither accounting nor taxable profit or loss;
– temporary differences related to investments in subsidiaries, associates and joint arrangements
to the extent that the Group is able to control the timing of the reversal of the temporary
differences and it is probable that they will not reverse in the foreseeable future; and
– taxable temporary differences arising on the initial recognition of goodwill.
[IAS 12.15, 24] Temporary differences in relation to a right-of-use asset and a lease liability for a specific lease are
regarded as a net package (the lease) for the purpose of recognising deferred tax.b
[IAS 12.56] Deferred tax assets are recognised for unused tax losses, unused tax credits and deductible
temporary differences to the extent that it is probable that future taxable profits will be available
against which they can be used. Future taxable profits are determined based on the reversal
of relevant taxable temporary differences. If the amount of taxable temporary differences is
insufficient to recognise a deferred tax asset in full, then future taxable profits, adjusted for NOTES
reversals of existing temporary differences, are considered, based on the business plans for
individual subsidiaries in the Group. Deferred tax assets are reviewed at each reporting date and
are reduced to the extent that it is no longer probable that the related tax benefit will be realised;
such reductions are reversed when the probability of future taxable profits improves.
Insights 3.13.45.10 a. Interest and penalties related to income taxes are not explicitly included in the scope of IAS 12. The IFRS
Interpretations Committee discussed the accounting for interest and penalties related to income taxes and noted
that an entity first considers whether interest or a penalty itself is an income tax. If so, then it applies IAS 12. If the
entity does not apply IAS 12, then it applies IAS 37 to that amount. The Committee also noted that this is not an
accounting policy choice – i.e. an entity needs to apply judgement based on the specific facts and circumstances.
Insights b. If a tax deduction is allocated to the lease liability, then a temporary difference arises on the initial recognition of the
3.13.230.25–30 right-of-use asset because there is an asset for accounting but no corresponding asset for tax purposes. Similarly,
Appendices
a liability is recognised for accounting purposes that has a tax base of zero; therefore, a temporary difference arises
on the initial recognition of the lease liability. Because the transaction affects neither accounting nor taxable profit on
initial recognition, a question arises about whether the initial recognition exemption applies.
In our view, in these circumstances the application of the initial recognition exemption is not appropriate. We believe
that the asset and liability that arise for accounting purposes under a lease are integrally linked. Accordingly, they
should be regarded as a net package (the lease) for the purpose of recognising deferred tax. This is consistent with
the way in which the lease transaction is viewed for tax purposes.

Introduction

I. Income tax (continued)
ii. Deferred tax (continued)
[IAS 12.51, 51C] The measurement of deferred tax reflects the tax consequences that would follow from the
manner in which the Group expects, at the reporting date, to recover or settle the carrying
amount of its assets and liabilities. For this purpose, the carrying amount of investment property
measured at fair value is presumed to be recovered through sale, and the Group has not rebutted
this presumption.
[IAS 12.74] Deferred tax assets and liabilities are offset only if certain criteria are met.
Auditors’ report
J. Biological assets
[IAS 41.12–13] Biological assets are measured at fair value less costs to sell, with any change therein recognised
in profit or loss.
K. Inventories
[IAS 2.9, 25], Inventories are measured at the lower of cost and net realisable value. The cost of inventories is
IAS 2.36(a)
based on the first-in, first-out allocation method. In the case of manufactured inventories, cost
includes an appropriate share of production overheads based on normal operating capacity.
[IAS 2.20] The cost of standing timber transferred from biological assets is its fair value less costs to sell at
the date of harvest.
L. Property, plant and equipment

Primary statements
i. Recognition and measurement

[IFRS 1.D5, IAS 16.30], Items of property, plant and equipment are measured at cost, which includes capitalised
IAS 16.73(a)
borrowing costs, less accumulated depreciation and any accumulated impairment losses. The cost
of certain items of property, plant and equipment at 1 January 2005, the Group’s date of transition
to the Standards, was determined with reference to its fair value at that date.a
[IAS 16.45] If significant parts of an item of property, plant and equipment have different useful lives, then they
are accounted for as separate items (major components) of property, plant and equipment.
[IAS 16.41, 71] Any gain or loss on disposal of an item of property, plant and equipment is recognised in profit
or loss.
ii. Subsequent expenditure

[IAS 16.13] Subsequent expenditure is capitalised only if it is probable that the future economic benefits
associated with the expenditure will flow to the Group.
NOTES
Appendices
a. The Group was previously a first-time adopter of IFRS Standards. It has included the accounting policy for the
determination of the cost of property, plant and equipment at the date of transition to IFRS Standards because it
regards this information as relevant to an understanding of its financial statements.
Accounting policies
Introduction
L. Property, plant and equipment (continued)
iii. Depreciation
[IAS 16.53, 58, 60], Depreciation is calculated to write off the cost of items of property, plant and equipment less their
IAS 16.73(b) estimated residual values using the straight-line method over their estimated useful lives, and is
generally recognised in profit or loss. Land is not depreciated.
IAS 16.73(c) The estimated useful lives of property, plant and equipment for current and comparative periods
are as follows:
– buildings: 40 years
Auditors’ report
– plant and equipment: 3–12 years
– fixtures and fittings: 5–10 years.
[IAS 16.51] Depreciation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
Primary statements
NOTES
Appendices

Introduction

L. Property, plant and equipment (continued)
iv. Reclassification to investment property
[IAS 40.62] When the use of a property changes from owner-occupied to investment property, the property is
remeasured to fair value and reclassified accordingly. Any gain arising on this remeasurement is
recognised in profit or loss to the extent that it reverses a previous impairment loss on the specific
property, with any remaining gain recognised in OCI and presented in the revaluation reserve.
Any loss is recognised in profit or loss. However, to the extent that an amount is included in the
revaluation surplus for that property, the loss is recognised in OCI and reduces the revaluation
surplus within equity.
Auditors’ report
M. Intangible assets and goodwill

i. Recognition and measurement
[IAS 38.107–108] Goodwill Goodwill arising on the acquisition of subsidiaries is measured at cost less accumulated
impairment losses.
[IAS 38.54–55] Research and Expenditure on research activities is recognised in profit or loss as incurred.
development
[IAS 38.57, 66, 71, 74] Development expenditure is capitalised only if the expenditure can be measured
reliably, the product or process is technically and commercially feasible, future economic
benefits are probable and the Group intends to and has sufficient resources to complete
development and to use or sell the asset. Otherwise, it is recognised in profit or loss as
incurred. Subsequent to initial recognition, development expenditure is measured at cost
less accumulated amortisation and any accumulated impairment losses.
Emissions
Primary statements
See (G).
certificates
[IAS 38.74] Other intangible Other intangible assets, including customer relationships, patents and trademarks, that are
assets acquired by the Group and have finite useful lives are measured at cost less accumulated
amortisation and any accumulated impairment losses.
ii. Subsequent expenditure

[IAS 38.18] Subsequent expenditure is capitalised only when it increases the future economic benefits
embodied in the specific asset to which it relates. All other expenditure, including expenditure on
internally generated goodwill and brands, is recognised in profit or loss as incurred.
iii. Amortisation
[IAS 38.97], Amortisation is calculated to write off the cost of intangible assets less their estimated residual
IAS 38.118(a)–(b)
values using the straight-line method over their estimated useful lives, and is generally recognised
in profit or loss. Goodwill and emissions certificatesa are not amortised.
The estimated useful lives for current and comparative periods are as follows:
NOTES
– patents and trademarks: 3–20 years

– development costs: 2–5 years
– customer relationships: 4–5 years.
[IAS 38.104] Amortisation methods, useful lives and residual values are reviewed at each reporting date and
adjusted if appropriate.
N. Investment property
[IAS 40.7, 33, 35] Investment property is initially measured at cost and subsequently at fair value with any change
therein recognised in profit or loss.
[IAS 16.41, 71] Any gain or loss on disposal of investment property (calculated as the difference between the net
proceeds from disposal and the carrying amount of the item) is recognised in profit or loss. When
Appendices
investment property that was previously classified as property, plant and equipment is sold, any
related amount included in the revaluation reserve (see (L)(iv)) is transferred to retained earnings.
Insights a. For most emissions certificates traded in an active market, no amortisation will be required because the condition
3.3.165.20 of the asset does not change over time, and therefore the residual value will be the same as cost. As a result, the
depreciable amount will be zero.
Accounting policies
Introduction
N. Investment property (continued)
Rental income from investment property is recognised as other revenue on a straight-line basis over
the term of the lease. Lease incentives granted are recognised as an integral part of the total rental
income, over the term of the lease.
O. Assets held for sale

[IFRS 5.6] Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-
sale if it is highly probable that they will be recovered primarily through sale rather than through
continuing use.
Auditors’ report
[IFRS 5.15–15A, Such assets, or disposal groups, are generally measured at the lower of their carrying amount
18–23]
and fair value less costs to sell. Any impairment loss on a disposal group is allocated first to
goodwill, and then to the remaining assets and liabilities on a pro rata basis, except that no loss is
allocated to inventories, financial assets, deferred tax assets, employee benefit assets, investment
property or biological assets, which continue to be measured in accordance with the Group’s
other accounting policies. Impairment losses on initial classification as held-for-sale or held-for-
distribution and subsequent gains and losses on remeasurement are recognised in profit or loss.
[IFRS 5.25, IAS 28.20] Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer
amortised or depreciated, and any equity-accounted investee is no longer equity accounted.
IFRS 7.21 P. Financial instruments

i. Recognition and initial measurement
Primary statements
[IFRS 9.3.1.1] Trade receivables and debt securities issued are initially recognised when they are originated. All
other financial assets and financial liabilities are initially recognised when the Group becomes a
party to the contractual provisions of the instrument.
[IFRS 9.5.1.1, 5.1.3, A financial asset (unless it is a trade receivable without a significant financing component)
15.D]
or financial liability is initially measured at fair value plus or minus, for an item not at FVTPL,
transaction costs that are directly attributable to its acquisition or issue. A trade receivable without
a significant financing component is initially measured at the transaction price.
ii. Classification and subsequent measurement

Financial assets
[IFRS 9.4.1.1] On initial recognition, a financial asset is classified as measured at: amortised cost; FVOCI – debt
investment; FVOCI – equity investment; or FVTPL.
[IFRS 9.4.4.1, 5.6.1] Financial assets are not reclassified subsequent to their initial recognition unless the Group
changes its business model for managing financial assets, in which case all affected financial NOTES
assets are reclassified on the first day of the first reporting period following the change in the
business model.
Appendices

Introduction

IFRS 7.21 P. Financial instruments (continued)
ii. Classification and subsequent measurement (continued)
Financial assets (continued)
[IFRS 9.4.1.2] A financial asset is measured at amortised cost if it meets both of the following conditions and is
not designated as at FVTPL:
– it is held within a business model whose objective is to hold assets to collect contractual cash
flows; and
– its contractual terms give rise on specified dates to cash flows that are solely payments of
Auditors’ report
principal and interest on the principal amount outstanding.

[IFRS 9.4.1.2A] A debt investment is measured at FVOCI if it meets both of the following conditions and is not
designated as at FVTPL:
– it is held within a business model whose objective is achieved by both collecting contractual
cash flows and selling financial assets; and
– its contractual terms give rise on specified dates to cash flows that are solely payments of
principal and interest on the principal amount outstanding.
[IFRS 9.4.1.4, 5.7.5] On initial recognition of an equity investment that is not held for trading, the Group may irrevocably
elect to present subsequent changes in the investment’s fair value in OCI. This election is made on
an investment-by-investment basis.
Primary statements
[IFRS 9.4.1.5] All financial assets not classified as measured at amortised cost or FVOCI as described above
are measured at FVTPL. This includes all derivative financial assets (see Note 32(A)). On initial
recognition, the Group may irrevocably designate a financial asset that otherwise meets the
requirements to be measured at amortised cost or at FVOCI as at FVTPL if doing so eliminates or
significantly reduces an accounting mismatch that would otherwise arise.
Financial assets – Business model assessment
[IFRS 9.B4.1.2] The Group makes an assessment of the objective of the business model in which a financial
asset is held at a portfolio levela because this best reflects the way the business is managed and
information is provided to management. The information considered includes:
[IFRS 9.B4.1.2B– – the stated policies and objectives for the portfolio and the operation of those policies in practice.
B4.1.2C, B4.1.4A,
B4.1.5]
These include whether management’s strategy focuses on earning contractual interest income,
maintaining a particular interest rate profile, matching the duration of the financial assets to the
duration of any related liabilities or expected cash outflows or realising cash flows through the
sale of the assets;
NOTES
– how the performance of the portfolio is evaluated and reported to the Group’s management;
– the risks that affect the performance of the business model (and the financial assets held within
that business model) and how those risks are managed;
– how managers of the business are compensated – e.g. whether compensation is based on the
fair value of the assets managed or the contractual cash flows collected; and
– the frequency, volume and timing of sales of financial assets in prior periods, the reasons for
such sales and expectations about future sales activity.
Appendices
IFRS 9.B4.1.1– a. The objective of the entity’s business model is not based on management’s intentions with respect to an individual
B4.1.2, instrument, but rather is determined at a higher level of aggregation. The assessment needs to reflect the way that
Insights 7.4.70.30 an entity manages its business or businesses. A single reporting entity may have more than one business model for
managing its financial instruments.
Accounting policies
Introduction
Financial assets – Business model assessment (continued)
Transfers of financial assets to third parties in transactions that do not qualify for derecognition are
not considered sales for this purpose, consistent with the Group’s continuing recognition of the
assets.a
[IFRS 9.B4.1.6] Financial assets that are held for trading or are managed and whose performance is evaluated on a
fair value basis are measured at FVTPL.
Auditors’ report
Financial assets – Assessment whether contractual cash flows are solely payments of
principal and interest
[IFRS 9.4.1.3, For the purposes of this assessment, ‘principal’ is defined as the fair value of the financial asset on
B4.1.7A–B4.1.7B, initial recognition. ‘Interest’ is defined as consideration for the time value of money and for the credit
B4.1.9A–B4.1.9E]
risk associated with the principal amount outstanding during a particular period of time and for other
basic lending risks and costs (e.g. liquidity risk and administrative costs), as well as a profit margin.
In assessing whether the contractual cash flows are solely payments of principal and interest,
the Group considers the contractual terms of the instrument. This includes assessing whether
the financial asset contains a contractual term that could change the timing or amount of
contractual cash flows such that it would not meet this condition. In making this assessment, the
Group considers:
Primary statements
– contingent events that would change the amount or timing of cash flows;
– terms that may adjust the contractual coupon rate, including variable-rate features;
– prepayment and extension features; and
– terms that limit the Group’s claim to cash flows from specified assets (e.g. non-recourse
features).
[IFRS 9.B4.1.11(b), A prepayment feature is consistent with the solely payments of principal and interest criterion
B4.1.12]
if the prepayment amount substantially represents unpaid amounts of principal and interest
on the principal amount outstanding, which may include reasonable compensation for early
termination of the contract. Additionally, for a financial asset acquired at a discount or premium
to its contractual par amount, a feature that permits or requires prepayment at an amount that
substantially represents the contractual par amount plus accrued (but unpaid) contractual interest
(which may also include reasonable compensation for early termination) is treated as consistent
with this criterion if the fair value of the prepayment feature is insignificant at initial recognition.
NOTES
Appendices
Insights 7.4.110.15 a IFRS 9 does not provide specific guidance for business model assessment related to portfolios of financial assets for
which the entity’s objectives include transfers of financial assets to third parties in transactions that do not qualify for
derecognition. In our view, whether such a portfolio is considered consistent with a held-to-collect business model
depends on the circumstances.

Introduction

IFRS 7.B5(e) Financial assets – Subsequent measurement and gains and losses
[IFRS 9.5.7.1] Financial assets at These assets are subsequently measured at fair value. Net gains and losses, including
FVTPL any interest or dividend income, are recognised in profit or loss. However, see
Note 45(P)(v) for derivatives designated as hedging instruments.
[IFRS 9.5.7.2] Financial assets at These assets are subsequently measured at amortised cost using the effective interest
amortised cost method. The amortised cost is reduced by impairment losses. Interest income, foreign
exchange gains and losses and impairment are recognised in profit or loss. Any gain or
Auditors’ report
loss on derecognition is recognised in profit or loss.

[IFRS 9.5.7.10–5.7.11] Debt investments at These assets are subsequently measured at fair value. Interest income calculated
FVOCI using the effective interest method, foreign exchange gains and losses and impairment
are recognised in profit or loss. Other net gains and losses are recognised in OCI. On
derecognition, gains and losses accumulated in OCI are reclassified to profit or loss.
[IFRS 9.5.7.5–5.7.6, Equity investments at These assets are subsequently measured at fair value. Dividends are recognised as
B5.7.1] FVOCI income in profit or loss unless the dividend clearly represents a recovery of part of the
cost of the investment. Other net gains and losses are recognised in OCI and are never
reclassified to profit or loss.
Financial liabilities – Classification, subsequent measurement and gains and losses

[IFRS 9.5.7.1] Financial liabilities are classified as measured at amortised cost or FVTPL. A financial liability is
classified as at FVTPL if it is classified as held-for-trading, it is a derivative or it is designated as
Primary statements
such on initial recognition. Financial liabilities at FVTPL are measured at fair value and net gains and
losses, including any interest expense, are recognised in profit or loss. Other financial liabilities
are subsequently measured at amortised cost using the effective interest method. Interest
expense and foreign exchange gains and losses are recognised in profit or loss. Any gain or loss on
derecognition is also recognised in profit or loss.
See Note 45(P)(v) for financial liabilities designated as hedging instruments.
iii. Derecognition
Financial assets
[IFRS 9.3.2.3–3.2.6] The Group derecognises a financial asset when:
– the contractual rights to the cash flows from the financial asset expire; or
– it transfers the rights to receive the contractual cash flows in a transaction in which either:
- substantially all of the risks and rewards of ownership of the financial asset are transferred; or
NOTES
- the Group neither transfers nor retains substantially all of the risks and rewards of ownership
and it does not retain control of the financial asset.
[IFRS 9.3.2.6(b)] The Group enters into transactions whereby it transfers assets recognised in its statement of
financial position, but retains either all or substantially all of the risks and rewards of the transferred
assets. In these cases, the transferred assets are not derecognised.
Appendices
Accounting policies
Introduction
iii. Derecognition (continued)
[IFRS 9.3.3.1–3.3.2] The Group derecognises a financial liability when its contractual obligations are discharged or
cancelled, or expire. The Group also derecognises a financial liability when its terms are modified
and the cash flows of the modified liability are substantially different, in which case a new financial
liability based on the modified terms is recognised at fair value.
[IFRS 9.3.3.3] On derecognition of a financial liability, the difference between the carrying amount extinguished
Auditors’ report
and the consideration paid (including any non-cash assets transferred or liabilities assumed) is
recognised in profit or loss.
Interest rate benchmark reform
[IFRS 9.5.4.7, 5.4.9] When the basis for determining the contractual cash flows of a financial asset or financial liability
measured at amortised cost changed as a result of interest rate benchmark reform, the Group
updated the effective interest rate of the financial asset or financial liability to reflect the change
that is required by the reform. A change in the basis for determining the contractual cash flows is
required by interest rate benchmark reform if the following conditions are met:
– the change is necessary as a direct consequence of the reform; and
– the new basis for determining the contractual cash flows is economically equivalent to the
previous basis – i.e. the basis immediately before the change.
Primary statements
When changes were made to a financial asset or financial liability in addition to changes to the
basis for determining the contractual cash flows required by interest rate benchmark reform, the
Group first updated the effective interest rate of the financial asset or financial liability to reflect
the change that is required by interest rate benchmark reform. After that, the Group applied the
policies on accounting for modifications to the additional changes.
NOTES
Appendices

Introduction

iv. Offsetting
[IAS 32.42] Financial assets and financial liabilities are offset and the net amount presented in the statement
of financial position when, and only when, the Group currently has a legally enforceable right to set
off the amounts and it intends either to settle them on a net basis or to realise the asset and settle
the liability simultaneously.
v. Derivative financial instruments and hedge accounting

Derivative financial instruments and hedge accounting
Auditors’ report
[IFRS 9.4.3.3] The Group holds derivative financial instruments to hedge its foreign currency and interest rate
risk exposures. Embedded derivatives are separated from the host contract and accounted for
separately if the host contract is not a financial asset and certain criteria are met.
[IFRS 9.5.1.1, 5.2.1(c)] Derivatives are initially measured at fair value. Subsequent to initial recognition, derivatives are
measured at fair value, and changes therein are generally recognised in profit or loss.
The Group designates certain derivatives as hedging instruments to hedge the variability in
cash flows associated with highly probable forecast transactions arising from changes in foreign
exchange rates and interest rates and certain derivatives and non-derivative financial liabilities as
hedges of foreign exchange risk on a net investment in a foreign operation.
[IFRS 9.6.4.1(a), At inception of designated hedging relationships, the Group documents the risk management
6.4.1(c)]
objective and strategy for undertaking the hedge. The Group also documents the economic
Primary statements
relationship between the hedged item and the hedging instrument, including whether the changes
in cash flows of the hedged item and hedging instrument are expected to offset each other.
Hedges directly affected by interest rate benchmark reform
The Group has adopted the Phase 2 amendments and retrospectively applied them from 1
January 2021 (see Note 5).
IFRS 9.6.9.1 When the basis for determining the contractual cash flows of the hedged item or hedging
instrument changes as a result of IBOR reform and therefore there is no longer uncertainty arising
about the cash flows of the hedged item or the hedging instrument, the Group amends the hedge
documentation of that hedging relationship to reflect the change(s) required by IBOR reform (as
defined in (P)(iii)). For this purpose, the hedge designation is amended only to make one or more of
the following changes:
– designating an alternative benchmark rate as the hedged risk;
– updating the description of the hedged item, including the description of the designated portion
NOTES
of the cash flows or fair value being hedged; or

– updating the description of the hedging instrument.
Appendices
Accounting policies
Introduction
P. Financial instruments (continued)
v. Derivative financial instruments and hedge accounting (continued)
IFRS 9.6.9.2 The Group amends the description of the hedging instrument only if the following conditions are
met:
– it makes a change required by IBOR reform by changing the basis for determining the
contractual cash flows of the hedging instrument or using another approach that is economically
equivalent to changing the basis for determining the contractual cash flows of the original
hedging instrument; and
Auditors’ report
– the original hedging instrument is not derecognised.
IFRS 9.6.9.4 The Group amends the formal hedge documentation by the end of the reporting period during
which a change required by IBOR reform is made to the hedged risk, hedged item or hedging
instrument. These amendments in the formal hedge documentation do not constitute the
discontinuation of the hedging relationship or the designation of a new hedging relationship.
IFRS 9.6.9.5 If changes are made in addition to those changes required by IBOR reform described above, then
the Group first considers whether those additional changes result in the discontinuation of the
hedge accounting relationship. If the additional changes do not result in the discontinuation of
the hedge accounting relationship, then the Group amends the formal hedge documentation for
changes required by IBOR reform as mentioned above.
IFRS 9.6.9.7–6.9.8 When the interest rate benchmark on which the hedged future cash flows had been based is
Primary statements
changed as required by IBOR reform, for the purpose of determining whether the hedged future
cash flows are expected to occur, the Group deems that the hedging reserve recognised in OCI for
that hedging relationship is based on the alternative benchmark rate on which the hedged future
cash flows will be based.
NOTES
Appendices

Introduction

v. Derivative financial instruments and hedge accounting (continued)
Cash flow hedges
[IFRS 9.6.5.11, 6.5.16] When a derivative is designated as a cash flow hedging instrument, the effective portion of
changes in the fair value of the derivative is recognised in OCI and accumulated in the hedging
reserve. The effective portion of changes in the fair value of the derivative that is recognised in
OCI is limited to the cumulative change in fair value of the hedged item, determined on a present
value basis, from inception of the hedge. Any ineffective portion of changes in the fair value of the
derivative is recognised immediately in profit or loss.
Auditors’ report
The Group designates only the change in fair value of the spot element of forward exchange
contracts as the hedging instrument in cash flow hedging relationships. The change in fair value of
the forward element of forward exchange contracts (forward points) is separately accounted for as
a cost of hedging and recognised in a costs of hedging reserve within equity.
When the hedged forecast transaction subsequently results in the recognition of a non-financial
item such as inventory, the amount accumulated in the hedging reserve and the cost of hedging
reserve is included directly in the initial cost of the non-financial item when it is recognised.
For all other hedged forecast transactions, the amount accumulated in the hedging reserve and
the cost of hedging reserve is reclassified to profit or loss in the same period or periods during
which the hedged expected future cash flows affect profit or loss.
Primary statements
[IFRS 9.6.5.6–6.5.7, If the hedge no longer meets the criteria for hedge accounting or the hedging instrument is sold,
6.5.12]
expires, is terminated or is exercised, then hedge accounting is discontinued prospectively. When
hedge accounting for cash flow hedges is discontinued, the amount that has been accumulated in
the hedging reserve remains in equity until, for a hedge of a transaction resulting in the recognition
of a non-financial item, it is included in the non-financial item’s cost on its initial recognition or,
for other cash flow hedges, it is reclassified to profit or loss in the same period or periods as the
hedged expected future cash flows affect profit or loss.
If the hedged future cash flows are no longer expected to occur, then the amounts that have been
accumulated in the hedging reserve and the cost of hedging reserve are immediately reclassified
to profit or loss.
Net investment hedges

[IFRS 9.6.5.13–6.5.14] When a derivative instrument or a non-derivative financial liability is designated as the hedging
instrument in a hedge of a net investment in a foreign operation, the effective portion of changes
in the fair value of a derivative or foreign exchange gains and losses for a non-derivative is
NOTES
recognised in OCI and presented in the translation reserve within equity. Any ineffective portion
of the changes in the fair value of the derivative or foreign exchange gains and losses on the
non-derivative is recognised immediately in profit or loss. The amount recognised in OCI is fully or
partially reclassified to profit or loss as a reclassification adjustment on disposal or partial disposal
of the foreign operation, respectively.
Appendices
Accounting policies
Introduction
Q. Share capital
i. Ordinary shares
[IAS 32.35–35A] Incremental costs directly attributable to the issue of ordinary shares are recognised as a
deduction from equity. Income tax relating to transaction costs of an equity transaction is
accounted for in accordance with IAS 12 (see 45(I)).
ii. Preference shares

[IAS 32.AG25–AG26] The Group’s redeemable preference shares are classified as financial liabilities, because they
bear non-discretionary dividends and are redeemable in cash by the holders. Non-discretionary
Auditors’ report
dividends thereon are recognised as interest expense in profit or loss as accrued.
Non-redeemable preference shares are classified as equity, because they bear discretionary
dividends, do not contain any obligations to deliver cash or other financial assets and do not
require settlement in a variable number of the Group’s equity instruments. Discretionary dividends
thereon are recognised as equity distributions on approval by the Company’s shareholders.
iii. Repurchase and reissue of ordinary shares (treasury shares)

[IAS 32.33] When shares recognised as equity are repurchased, the amount of the consideration paid, which
includes directly attributable costs, is recognised as a deduction from equity. Repurchased shares
are classified as treasury shares and are presented in the treasury share reserve. When treasury
shares are sold or reissued subsequently, the amount received is recognised as an increase in
equity and the resulting surplus or deficit on the transaction is presented within share premium.
Primary statements
R. Compound financial instruments
[IAS 32.28–32] Compound financial instruments issued by the Group comprise convertible notes denominated
in euro that can be converted to ordinary shares at the option of the holder, when the number of
shares to be issued is fixed and does not vary with changes in fair value.
[IAS 32.38, AG31, The liability component of compound financial instruments is initially recognised at the fair value of
IFRS 9.5.1.1]
a similar liability that does not have an equity conversion option. The equity component is initially
recognised at the difference between the fair value of the compound financial instrument as a
whole and the fair value of the liability component. Any directly attributable transaction costs are
allocated to the liability and equity components in proportion to their initial carrying amounts.
[IFRS 9.5.3.1] Subsequent to initial recognition, the liability component of a compound financial instrument
is measured at amortised cost using the effective interest method. The equity component of a
compound financial instrument is not remeasured.
[IAS 32.AG32] Interest related to the financial liability is recognised in profit or loss. On conversion at maturity, the
NOTES
financial liability is reclassified to equity and no gain or loss is recognised.
Appendices

Introduction

S. Impairment
i. Non-derivative financial assets
Financial instruments and contract assets
[IFRS 9.2, 9.5.5.1, The Group recognises loss allowances for ECLs on:
IFRS 16.77]
– financial assets measured at amortised cost;
– debt investments measured at FVOCI; and
– contract assets.
Auditors’ report
The Group also recognises loss allowances for ECLs on lease receivables, which are disclosed as
part of trade and other receivables.
[IFRS 9.5.5.3, 5.5.5, The Group measures loss allowances at an amount equal to lifetime ECLs, except for the
5.5.11, 5.5.15–5.5.16]
following, which are measured at 12-month ECLs:
– debt securities that are determined to have low credit risk at the reporting date; and
– other debt securities and bank balances for which credit risk (i.e. the risk of default occurring
over the expected life of the financial instrument) has not increased significantly since initial
recognition.
Loss allowances for trade receivables (including lease receivables) and contract assets are always
measured at an amount equal to lifetime ECLs.a
Primary statements
When determining whether the credit risk of a financial asset has increased significantly since
initial recognition and when estimating ECLs, the Group considers reasonable and supportable
information that is relevant and available without undue cost or effort. This includes both
quantitative and qualitative information and analysis, based on the Group’s historical experience
and informed credit assessment, that includes forward-looking information.
The Group assumes that the credit risk on a financial asset has increased significantly if it is more
than 30 days past due.
IFRS 7.35F(b), B8A The Group considers a financial asset to be in default when:
– the debtor is unlikely to pay its credit obligations to the Group in full, without recourse by the
Group to actions such as realising security (if any is held); or
– the financial asset is more than 90 days past due.
IFRS 7.35F(a)(i), The Group considers a debt security to have low credit risk when its credit risk rating is equivalent
[IFRS 9.5.5.10,
B5.5.22–B5.5.24, A]
to the globally understood definition of ‘investment grade’. The Group considers this to be Baa3 or
higher per [Rating Agency X] or BBB- or higher per [Rating Agency Y].
NOTES
Lifetime ECLs are the ECLs that result from all possible default events over the expected life of a
financial instrument.
12-month ECLs are the portion of ECLs that result from default events that are possible within the
12 months after the reporting date (or a shorter period if the expected life of the instrument is less
than 12 months).
[IFRS 9.5.5.19, The maximum period considered when estimating ECLs is the maximum contractual period over
B5.5.38]
which the Group is exposed to credit risk.
[IFRS 9.5.5.17, A, Measurement of ECLs
B5.5.28–B5.5.30,
B5.5.33] ECLs are a probability-weighted estimate of credit losses. Credit losses are measured as the
present value of all cash shortfalls (i.e. the difference between the cash flows due to the entity in
Appendices
accordance with the contract and the cash flows that the Group expects to receive).
ECLs are discounted at the effective interest rate of the financial asset.
IFRS 9.5.15 a. For lease receivables, contract assets and trade receivables with a significant financing component, an entity can
choose as an accounting policy either to apply the general model for measuring the loss allowance or always to
measure the loss allowance at an amount equal to the lifetime ECLs. The Group has chosen the latter policy.
Accounting policies
Introduction
S. Impairment (continued)
i. Non-derivative financial assets (continued)
IFRS 7.35F(d), Credit-impaired financial assets
35G(a)(iii), [IFRS 9.A]
At each reporting date, the Group assesses whether financial assets carried at amortised cost
and debt securities at FVOCI are credit-impaired. A financial asset is ‘credit-impaired’ when one
or more events that have a detrimental impact on the estimated future cash flows of the financial
asset have occurred.
Evidence that a financial asset is credit-impaired includes the following observable data:
Auditors’ report
– significant financial difficulty of the debtor;
– a breach of contract such as a default or being more than 90 days past due;
– the restructuring of a loan or advance by the Group on terms that the Group would not consider
otherwise;
– it is probable that the debtor will enter bankruptcy or other financial reorganisation; or
– the disappearance of an active market for a security because of financial difficulties.
[IFRS 9.5.5.1–5.5.2] Presentation of allowance for ECL in the statement of financial position
Loss allowances for financial assets measured at amortised cost are deducted from the gross
carrying amount of the assets.
Primary statements
For debt securities at FVOCI, the loss allowance is charged to profit or loss and is recognised in OCI.
Write-off
IFRS 7.35F(e), The gross carrying amount of a financial asset is written off when the Group has no reasonable
[IFRS 9.5.4.4]
expectations of recovering a financial asset in its entirety or a portion thereof. For individual
customers, the Group has a policy of writing off the gross carrying amount when the financial
asset is 180 days past due based on historical experience of recoveries of similar assets. For
corporate customers, the Group individually makes an assessment with respect to the timing and
amount of write-off based on whether there is a reasonable expectation of recovery. The Group
expects no significant recovery from the amount written off. However, financial assets that are
written off could still be subject to enforcement activities in order to comply with the Group’s
procedures for recovery of amounts due.
ii. Non-financial assets

[IAS 36.9–10, 59] At each reporting date, the Group reviews the carrying amounts of its non-financial assets (other
than biological assets, investment property, inventories, contract assets and deferred tax assets) NOTES
to determine whether there is any indication of impairment. If any such indication exists, then the
asset’s recoverable amount is estimated. Goodwill is tested annually for impairment.
[IAS 36.22, 80] For impairment testing, assets are grouped together into the smallest group of assets that
generates cash inflows from continuing use that are largely independent of the cash inflows
of other assets or CGUs. Goodwill arising from a business combination is allocated to CGUs or
groups of CGUs that are expected to benefit from the synergies of the combination.
[IAS 36.6, 30] The recoverable amount of an asset or CGU is the greater of its value in use and its fair value less
costs of disposal. Value in use is based on the estimated future cash flows, discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time
value of money and the risks specific to the asset or CGU.
[IAS 36.59] An impairment loss is recognised if the carrying amount of an asset or CGU exceeds its
Appendices
recoverable amount.
[IAS 36.104] Impairment losses are recognised in profit or loss. They are allocated first to reduce the carrying
amount of any goodwill allocated to the CGU, and then to reduce the carrying amounts of the
other assets in the CGU on a pro rata basis.

Introduction

S. Impairment (continued)
ii. Non-financial assets (continued)
[IAS 36.117, 122, 124] An impairment loss in respect of goodwill is not reversed. For other assets, an impairment loss is
reversed only to the extent that the asset’s carrying amount does not exceed the carrying amount
that would have been determined, net of depreciation or amortisation, if no impairment loss had
been recognised.
T. Provisions
[IAS 37.14, 45, 47, Provisions are determined by discounting the expected future cash flows at a pre-tax rate that
Auditors’ report
IFRIC 1.8]
reflects current market assessments of the time value of money and the risks specific to the
liability. The unwinding of the discount is recognised as finance cost.
[IAS 37.39] Warranties A provision for warranties is recognised when the underlying products or services are
sold, based on historical warranty data and a weighting of possible outcomes against
their associated probabilities.
[IAS 37.72] Restructuring A provision for restructuring is recognised when the Group has approved a detailed
and formal restructuring plan, and the restructuring either has commenced or has been
announced publicly. Future operating losses are not provided for.
[IAS 37.21] Site restoration In accordance with the Group’s published environmental policy and applicable legal
requirements, a provision for site restoration in respect of contaminated land, and the
related expense, is recognised when the land is contaminated.
Primary statements
Emissions schemes See (G).
[IAS 37.66, 68] Onerous contracts A provision for onerous contracts is measured at the present value of the lower of the
expected cost of terminating the contract and the expected net cost of continuing with
the contract, which is determined based on incremental costs necessary to fulfil the
obligation under the contract. Before a provision is established, the Group recognises
any impairment loss on the assets associated with that contract (see (S)(ii)).
U. Leases
[IFRS 16.9] At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A
contract is, or contains, a lease if the contract conveys the right to control the use of an identified
asset for a period of time in exchange for consideration.
i. As a lessee
[IFRS 16.15, 45] At commencement or on modification of a contract that contains a lease component, the
Group allocates the consideration in the contract to each lease component on the basis of its
relative stand-alone prices. However, for the leases of property the Group has elected not to
NOTES
separate non-lease components and account for the lease and non-lease components as a single
lease component.
Appendices
Accounting policies
Introduction
U. Leases (continued)
i. As a lessee (continued)
[IFRS 16.22–24] The Group recognises a right-of-use asset and a lease liability at the lease commencement date.
The right-of-use asset is initially measured at cost, which comprises the initial amount of the lease
liability adjusted for any lease payments made at or before the commencement date, plus any initial
direct costs incurred and an estimate of costs to dismantle and remove the underlying asset or to
restore the underlying asset or the site on which it is located, less any lease incentives received.
[IFRS 16.29–33] The right-of-use asset is subsequently depreciated using the straight-line method from the
commencement date to the end of the lease term, unless the lease transfers ownership of the
Auditors’ report
underlying asset to the Group by the end of the lease term or the cost of the right-of-use asset
reflects that the Group will exercise a purchase option. In that case the right-of-use asset will be
depreciated over the useful life of the underlying asset, which is determined on the same basis
as those of property and equipment. In addition, the right-of-use asset is periodically reduced by
impairment losses, if any, and adjusted for certain remeasurements of the lease liability.
[IFRS 16.26] The lease liability is initially measured at the present value of the lease payments that are not paid
at the commencement date, discounted using the interest rate implicit in the lease or, if that rate
cannot be readily determined, the Group’s incremental borrowing rate. Generally, the Group uses
its incremental borrowing rate as the discount rate.
IAS 1.112(c) The Group determines its incremental borrowing rate by obtaining interest rates from various
external financing sources and makes certain adjustments to reflect the terms of the lease and
type of the asset leased.
Primary statements
[IFRS 16.27] Lease payments included in the measurement of the lease liability comprise the following:
– fixed payments, including in-substance fixed payments;
– variable lease payments that depend on an index or a rate, initially measured using the index or
rate as at the commencement date;
– amounts expected to be payable under a residual value guarantee; and
– the exercise price under a purchase option that the Group is reasonably certain to exercise,
lease payments in an optional renewal period if the Group is reasonably certain to exercise an
extension option, and penalties for early termination of a lease unless the Group is reasonably
certain not to terminate early.
[IFRS 16.36, 40, 42] The lease liability is measured at amortised cost using the effective interest method. It is
remeasured when there is a change in future lease payments arising from a change in an index
or rate, if there is a change in the Group’s estimate of the amount expected to be payable under
NOTES
a residual value guarantee, if the Group changes its assessment of whether it will exercise a
purchase, extension or termination option or if there is a revised in-substance fixed lease payment.
[IFRS 16.39] When the lease liability is remeasured in this way, a corresponding adjustment is made to the
carrying amount of the right-of-use asset, or is recorded in profit or loss if the carrying amount of
the right-of-use asset has been reduced to zero.
[IFRS 16.105] From 1 January 2021, where the basis for determining future lease payments changes as required
by interest rate benchmark reform (see (P)(iii)), the Group remeasures the lease liability by
discounting the revised lease payments using the revised discount rate that reflects the change to
an alternative benchmark interest rate.
[IFRS 16.47–48] The Group presents right-of-use assets that do not meet the definition of investment property in
‘property, plant and equipment’ and lease liabilities in ‘loans and borrowings’ in the statement of
financial position.
Appendices
Short-term leases and leases of low-value assets

IFRS 16.60, The Group has elected not to recognise right-of-use assets and lease liabilities for leases of
[IFRS 16.5–6, 8,
B3–B8, BC100]
low-value assets and short-term leases, including IT equipment. The Group recognises the lease
payments associated with these leases as an expense on a straight-line basis over the lease term.

Introduction

U. Leases (continued)
ii. As a lessor
[IFRS 16.17] At inception or on modification of a contract that contains a lease component, the Group allocates
the consideration in the contract to each lease component on the basis of their relative stand-
alone prices.
[IFRS 16.61–62] When the Group acts as a lessor, it determines at lease inception whether each lease is a finance
lease or an operating lease.
[IFRS 16.63] To classify each lease, the Group makes an overall assessment of whether the lease transfers
Auditors’ report
substantially all of the risks and rewards incidental to ownership of the underlying asset. If this
is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of this
assessment, the Group considers certain indicators such as whether the lease is for the major part
of the economic life of the asset.
[IFRS 16.B58] When the Group is an intermediate lessor, it accounts for its interests in the head lease and the
sub-lease separately. It assesses the lease classification of a sub-lease with reference to the
right-of-use asset arising from the head lease, not with reference to the underlying asset. If a head
lease is a short-term lease to which the Group applies the exemption described above, then it
classifies the sub-lease as an operating lease.
[IFRS 16.17] If an arrangement contains lease and non-lease components, then the Group applies IFRS 15 to
allocate the consideration in the contract.
Primary statements
[IFRS 16.77] The Group applies the derecognition and impairment requirements in IFRS 9 to the net investment
in the lease (see Note 45(S)(i)). The Group further regularly reviews estimated unguaranteed
residual values used in calculating the gross investment in the lease.
[IFRS 16.81] The Group recognises lease payments received under operating leases as income on a straight-
line basis over the lease term as part of ‘other revenue’.
V. Operating profit
Operating profit is the result generated from the continuing principal revenue-producing activities
of the Group as well as other income and expenses related to operating activities. Operating profit
excludes net finance costs, share of profit of equity-accounted investees and income taxes.
W. Fair value measurement

[IFRS 13.9, 24, 42] ‘Fair value’ is the price that would be received to sell an asset or paid to transfer a liability in an
orderly transaction between market participants at the measurement date in the principal or, in its
absence, the most advantageous market to which the Group has access at that date. The fair value
NOTES
of a liability reflects its non-performance risk.

IFRS 13.93(g) A number of the Group’s accounting policies and disclosures require the measurement of fair
values, for both financial and non-financial assets and liabilities (see Note 4(B)(i)).
[IFRS 13.77, 79, A] When one is available, the Group measures the fair value of an instrument using the quoted price
in an active market for that instrument. A market is regarded as ‘active’ if transactions for the asset
or liability take place with sufficient frequency and volume to provide pricing information on an
ongoing basis.
[IFRS 13.61–62] If there is no quoted price in an active market, then the Group uses valuation techniques that
maximise the use of relevant observable inputs and minimise the use of unobservable inputs. The
chosen valuation technique incorporates all of the factors that market participants would take into
account in pricing a transaction.
Appendices
[IFRS 13.70–71] If an asset or a liability measured at fair value has a bid price and an ask price, then the Group
measures assets and long positions at a bid price and liabilities and short positions at an ask price.
Accounting policies
Introduction
W. Fair value measurement (continued)
IFRS 7.28(a) The best evidence of the fair value of a financial instrument on initial recognition is normally the
transaction price – i.e. the fair value of the consideration given or received. If the Group determines
that the fair value on initial recognition differs from the transaction price and the fair value is
evidenced neither by a quoted price in an active market for an identical asset or liability nor based
on a valuation technique for which any unobservable inputs are judged to be insignificant in relation
to the measurement, then the financial instrument is initially measured at fair value, adjusted
to defer the difference between the fair value on initial recognition and the transaction price.
Subsequently, that difference is recognised in profit or loss on an appropriate basis over the life of
Auditors’ report
the instrument but no later than when the valuation is wholly supported by observable market data
or the transaction is closed out.
Primary statements
NOTES
Appendices

Introduction
46. Standards issued but not yet effective

IAS 8.30–31 A number of new standards are effective for annual periods beginning after 1 January 2021 and
earlier application is permitted; however, the Group has not early adopted the new or amended
standards in preparing these consolidated financial statements.
A. Onerous contracts – Cost of Fulfilling a Contract (Amendments to IAS 37)
The amendments specify which costs an entity includes in determining the cost of fulfilling a
contract for the purpose of assessing whether the contract is onerous. The amendments apply
for annual reporting periods beginning on or after 1 January 2022 to contracts existing at the date
when the amendments are first applied. At the date of initial application, the cumulative effect of
applying the amendments is recognised as an opening balance adjustment to retained earnings
Auditors’ report
or other components of equity, as appropriate. The comparatives are not restated. The Group
has determined that all contracts existing at 31 December 2021 will be completed before the
amendments become effective.
B. Deferred T ax related to Assets and Liabilities arising from a Single

Transaction (Amendments to IAS 12)
The amendments narrow the scope of the initial recognition exemption to exclude transactions
that give rise to equal and offsetting temporary differences – e.g. leases and decommissioning
liabilities. The amendments apply for annual reporting periods beginning on or after 1 January
2023. For leases and decommissioning liabilities, the associated deferred tax asset and liabilities
will need to be recognised from the beginning of the earliest comparative period presented, with
any cumulative effect recognised as an adjustment to retained earnings or other components of
equity at that date. For all other transactions, the amendments apply to transactions that occur
Primary statements
after the beginning of the earliest period presented.

The Group accounts for deferred tax on leases and decommissioning liabilities applying the
‘integrally linked’ approach, resulting in a similar outcome to the amendments, except that
the deferred tax impacts are presented net in the statement of financial position. Under the
amendments, the Group will recognise a separate deferred tax asset and a deferred tax liability.
As at 31 December 2021, the taxable temporary difference in relation to the right-of-use asset is
€3,593 thousand (Note 38) and the deductible temporary difference in relation to the lease liability
is €4,125 thousand (Note 28), resulting in a net deferred tax asset of €186 thousand (Note 14(E)).
Under the amendments, the Group will present a separate deferred tax liability of €1,258 thousand
and a deferred tax asset of €1,444 thousand. There will be no impact on retained earnings on
adoption of the amendments.
NOTES
Appendices
Accounting policies
Introduction
46. Standards issued but not yet effective (continued)
C. Other standardsa
The following new and amended standards are not expected to have a significant impact on the
Group’s consolidated financial statements.
– COVID-19-Related Rent Concessions beyond 30 June 2021 (Amendment to IFRS 16).b

– Annual Improvements to IFRS Standards 2018–2020.
– Property, Plant and Equipment: Proceeds before Intended Use (Amendments to IAS 16).
– Reference to Conceptual Framework (Amendments to IFRS 3).
Auditors’ report
– Classification of Liabilities as Current or Non-current (Amendments to IAS 1).c
– IFRS 17 Insurance Contracts and amendments to IFRS 17 Insurance Contracts.
– Disclosure of Accounting Policies (Amendments to IAS 1 and IFRS Practice Statement 2).
– Definition of Accounting Estimates (Amendments to IAS 8).
Primary statements
NOTES
a. Although new or amended standards that will have no or no material effect on the financial statements need not
be provided, the Group has included all new or amended standards and their possible impact on the consolidated
financial statements for illustrative purposes only.
Appendices
b. For further information, see our web article and Leases – Rent concessions (May 2021).
c. The Amendments to IAS 1, as issued in January 2020 (2020 amendments), are subject to future developments.
Certain application issues resulting from the 2020 amendments have been raised with the IFRS Interpretations
Committee, which referred them to the Board. In June 2021, the Board tentatively decided to propose further
amendments to IAS 1 and to defer the effective date of the 2020 amendments to no earlier than 1 January 2024. An
exposure draft is expected in Q4 2021. For further information, see our web article.
Appendix I
Introduction
New standards or amendments for 2021 and forthcoming

requirements
Since the September 2020 edition of this guide, a number of standards, amendments to or
interpretations of standards have been issued. This appendix lists these new requirements that have
been issued by the Board as at 31 August 2021, and it contains two tables, as follows.
– New currently effective requirements: This table lists the recent changes to the Standards that are
Auditors’ report
required to be applied by an entity with an annual reporting period beginning on 1 January 2021.
– Forthcoming requirements: This table lists the recent changes to the Standards that are required to
be applied for annual periods beginning after 1 January 2021 and that are available for early adoption
in annual periods beginning on 1 January 2021.
The tables also include a cross-reference to further KPMG guidance, as appropriate. All of the effective
dates in the tables refer to the beginning of an annual accounting period.
New currently effective requirements

Effective date New standards or amendments KPMG guidance
Insights into IFRS

COVID-19-Related Rent Concessions (Amendment to
1 June 2020 (5.1.379), web article,
IFRS 16)
Primary statements
handbook chapter
Insights into IFRS

(7.6.500, 7.7.377, 7.9.1176,
7.10.457, 7.11.220.30,
Interest Rate Benchmark Reform – Phase 2
229.30–60, 230.15,
1 January 2021 (Amendments to IFRS 9, IAS 39, IFRS 7, IFRS 4 and
7I.5.500, 7I.6.335,
IFRS 16)
7I.7.877, 882, 7I.8.277,
8.1.170.35 and
5.1.370.30), web article
Notes
APPENDICES
Appendix I 195
New standards or amendments for 2021 and forthcoming requirements
Forthcoming requirements
Introduction
Effective date New standards or amendments KPMG guidance
Insights into IFRS

COVID-19-Related Rent Concessions beyond 30 June
1 April 2021 (5.1.379), web article,
2021 (Amendment to IFRS 16)
handbook chapter
Onerous Contracts – Cost of Fulfilling a Contract Insights into IFRS

(Amendments to IAS 37) (3.12.635), web article
Insights into IFRS

(2.4.795, 3.9.35,
Annual Improvements to IFRS Standards 2018–2020
6.1.1295, 7.6.415), web
1 January 2022 article
Property, Plant and Equipment: Proceeds before Insights into IFRS
Auditors’ report
Intended Use (Amendments to IAS 16) (3.2.125), web article
Reference to the Conceptual Framework

N/A
(Amendments to IFRS 3)
Classification of Liabilities as Current or Non-current Insights into IFRS
(Amendments to IAS 1)a (2.9.45, 80, 3.1.47, 60,
7.10.55, 780), web
article
Insights into IFRS

IFRS 17 Insurance Contractsb and amendments to IFRS (Chapter 8.1A),
17 Insurance Contracts web article, First
Impressions
Primary statements
1 January 2023
Disclosure of Accounting Policies (Amendments to IAS Insights into IFRS
1 and IFRS Practice Statement 2) (2.1.15), web article
Definition of Accounting Estimates (Amendments to Insights into IFRS

IAS 8) (2.8.115), web article
Insights into IFRS

Deferred Tax related to Assets and Liabilities arising
(3.13.213, 6.1.235),
from a Single Transaction (Amendments to IAS 12)
web article
Available
for optional
Sale or Contribution of Assets between an Investor and
adoption/
its Associate or Joint Venture (Amendments to IFRS 10 Web article
effective
and IAS 28)
date deferred
indefinitelyc Notes
APPENDICES
a. The Amendments to IAS 1, as issued in January 2020 (2020 amendments), are subject to future developments.
Certain application issues resulting from the 2020 amendments have been raised with the IFRS Interpretations
Committee, which referred them to the Board. In June 2021, the Board tentatively decided to propose further
amendments to IAS 1 and to defer the effective date of the 2020 amendments to no earlier than 1 January 2024.
An exposure draft is expected in Q4 2021. For further information, see our web article.
b. Early application of IFRS 17 is permitted only for companies that also apply IFRS 9 Financial Instruments.
c. The effective date for these amendments was deferred indefinitely. Early adoption continues to be permitted.
Appendix I
Introduction
Presentation of comprehensive income – Two‑statement

approach
Consolidated income statement a

IAS 1.10(b), 10A, 29, Note 2021 2020
Auditors’ report
Continuing operations
IAS 1.82(a) Revenue 8 102,860 96,719
IAS 1.99, 103 Cost of sales 9(C) (55,432) (56,186)
IAS 1.103 Gross profit 47,428 40,533
IAS 1.85 Other income 9(A) 893 104
IAS 1.99, 103 Selling and distribution expenses 9(C) (18,322) (15,865)
IAS 1.99, 103 Administrative expenses 9(C) (17,732) (14,428)
IAS 1.99, 103, 38.126 Research and development expenses 9(C) (1,109) (697)
Impairment loss on trade receivables and contract assets 31(C)(ii) (200) (190)
IAS 1.99, 103 Other expenses 9(B) (996) -
IAS 1.85, BC55–BC56 Operating profit 9,962 9,457
Primary statements
IAS 1.85 Finance income 1,131 447

IAS 1.82(b) Finance costs (1,883) (1,635)
IAS 1.85 Net finance costs 10 (752) (1,188)
IAS 1.82(c) Share of profit of equity-accounted investees, net of tax 24 1,141 587
IAS 1.85 Profit before tax 10,351 8,856
IAS 1.82(d), 12.77 Income tax expense 14 (3,178) (2,460)
IAS 1.85 Profit from continuing operations 7,173 6,396
Discontinued operation
IFRS 5.33A,
IAS 1.82(ea) Profit (loss) from discontinued operation, net of tax 7 379 (422)
IAS 1.81A(a) Profit for the period 7,552 5,974
Profit attributable to:
IAS 1.81B(a)(ii) Owners of the Company 7,055 5,623
IAS 1.81B(a)(i) Non-controlling interests 35 497 351
Notes
7,552 5,974
IAS 33.4A Earnings per share
IAS 33.66, 67A Basic earnings per share (euro) 11 2.15 1.69
IAS 33.66, 67A Diluted earnings per share (euro) 11 2.04 1.68
Earnings per share – Continuing operations
IAS 33.66, 67A Basic earnings per share (euro) 11 2.02 1.83
IAS 33.66, 67A Diluted earnings per share (euro) 11 1.92 1.82
Adjusted earnings before interest, tax, depreciation and
amortisation (adjusted EBITDA) 15 15,744 16,782
APPENDICES
IAS 1.10A a. This appendix illustrates the two-statement approach to the presentation of comprehensive income, consisting of an
income statement displaying profit or loss, and a separate statement displaying the components of OCI.
Appendix II 197
Presentation of comprehensive income – Two‑statement approach
Introduction
other comprehensive income
Note 2021 2020
IAS 1.10A Profit for the period 7,552 5,974

Other comprehensive income
IAS 1.82A(a)(i) Items that will not be reclassified to profit or loss
IAS 1.85 Revaluation of property, plant and equipment 21(F) 200 -
IAS 1.85 Remeasurements of the defined benefit liability (asset) 13(B) 72 (15)
Auditors’ report
IFRS 7.20(a)(vii) Equity investments at FVOCI – net change in fair value 26(D) 141 59
IAS 1.82A(b)(i) Equity-accounted investees – share of OCI 24, 26(D) 15 (3)
IAS 1.91(b) Related tax 14(B) (137) (14)
291 27
IAS 1.82A(a)(ii) Items that are or may be reclassified subsequently to
profit or loss
IAS 21.52(b) Foreign operations – foreign currency translation differences 679 471
IAS 1.85 Net investment hedge – net loss (3) (8)
IAS 1.82A(b)(ii) Equity-accounted investees – share of OCI 24, 26(D) (172) (166)
IAS 1.92 Reclassification of foreign currency differences on loss of
significant influence 34(D) (20) -
IFRS 7.24C(b)(i) Cash flow hedges – effective portion of changes in fair value 26(D) (62) 95
Primary statements
IFRS 7.24C(b)(iv),
IAS 1.92 Cash flow hedges – reclassified to profit or loss 26(D) (31) (12)
IAS 1.85 Cost of hedging reserve – changes in fair value 26(D) 34 10
IAS 1.92 Cost of hedging reserve – reclassified to profit or loss 26(D) 8 2
IFRS 7.20(a)(viii) Debt investments at FVOCI – net change in fair value 26(D) 54 60
IFRS 7.20(a)(viii),
IAS 1.92 Debt investments at FVOCI – reclassified to profit or loss 26(D) (64) -
IAS 1.91(b) Related tax 14(B) 19 (48)
442 404
IAS 1.81A(b) Other comprehensive income for the period, net of tax 733 431
IAS 1.81A(c) Total comprehensive income for the period 8,285 6,405
Total comprehensive income attributable to:
IAS 1.81B(b)(ii) Owners of the Company 7,762 6,032
IAS 1.81B(b)(i) Non-controlling interests 35 523 373
8,285 6,405 Notes
APPENDICES
Appendix I I
Introduction
Statement of cash flows – Direct method

IAS 1.10(d), 29,
38–38A, 113 Consolidated statement of cash flows
Auditors’ report
IAS 7.18(a) Cash flows from operating activities

Cash receipts from customers 94,352 96,534
Cash paid to suppliers and employees (90,439) (93,025)
Cash generated from operating activities 3,913 3,509
IAS 7.31–32 Interest paid (1,609) (1,289)
IAS 7.35 Income taxes paid (400) (1,913)
IAS 7.10 Net cash from operating activities 1,904 307
Cash flows from investing activities
IAS 7.31 Interest received 6 19
IAS 7.31 Dividends received 26 32
IAS 7.16(b) Proceeds from sale of property, plant and equipment 3,085 397
IAS 7.16(d), (h) Proceeds from sale of investments 1,476 534
Primary statements
IAS 7.39 Disposal of discontinued operation, net of cash disposed of 7 10,890 -

IAS 7.39 Acquisition of subsidiary, net of cash acquired 34 (1,799) -
IAS 7.16(a) Acquisition of property, plant and equipment (15,657) (2,228)
IAS 7.16(a) Acquisition of investment property 23(A) (300) (40)
IAS 7.16(a) Purchase of non-current biological assets 16(A) (305) (835)
IAS 7.16(c), (g) Acquisition of other investments (359) (342)
IAS 24.18 Dividends from equity-accounted investees 24(A) 21 -
IAS 7.16(a) Development expenditure 22(A), (D) (1,235) (503)
Receipt of government grant 30 - 1,462
IAS 7.10 Net cash used in investing activities (4,151) (1,504)
Cash flows from financing activities
IAS 7.17(a) Proceeds from issue of share capital 26(A) 1,550 -
IAS 7.17(c) Proceeds from issue of convertible notes 28(C) 5,000 -
IAS 7.17(c) Proceeds from issue of redeemable preference shares 28(D) 2,000 -
IAS 7.17(c) Proceeds from loans and borrowings 591 4,439
Notes
IAS 7.17(a) Proceeds from sale of treasury shares 30 -

IAS 7.17(a) Proceeds from exercise of share options 26(A) 50 -
IAS 7.16(h) Proceeds from settlement of derivatives 5 11
IAS 7.21 Transaction costs related to loans and borrowings 28(C)–(D) (311) -
IAS 7.42A Acquisition of NCI 36 (200) -
IAS 7.17(b) Repurchase of treasury shares - (280)
IAS 7.17(d) Repayment of borrowings (5,055) (2,445)
IAS 7.17(e) Payment of lease liabilities (554) (590)
IAS 7.31, 34 Dividends paid 26(C) (1,243) (571)
IAS 7.10 Net cash from financing activities 1,863 564
Net decrease in cash and cash equivalents (384) (633)
Cash and cash equivalents at 1 January* 1,567 2,226
APPENDICES
IAS 7.28 Effect of movements in exchange rates on cash held (13) (26)
Cash and cash equivalents at 31 December* 19 1,170 1,567
IAS 7.45 * Cash and cash equivalents includes bank overdrafts that are repayable on demand and form an integral part of
the Group’s cash management.
Appendix IV 199
Other disclosures not illustrated in the consolidated financial statements
Appendix IV
Introduction
Other disclosures not il ustrated in the consolidated
financial statements
Going concern matters
Extracts of notes to the consolidated financial statements
Auditors’ report
2. Basis of accounting
X. Going concern basis of accountinga, b
IAS 1.25–26, 122 The consolidated financial statements have been prepared on a going concern basis, which
assumes that the Group will be able to discharge its liabilities including the mandatory repayment
terms of the banking facilities as disclosed in Note 31(C).
The Group has recognised a net profit after tax of €7,937 thousand for the year ended
31 December 2021 and, as at that date, current assets exceed current liabilities by
€22,046 thousand. However, as described in Note X, significant one-off environmental costs are
expected in 2022, reflecting various regulatory developments in a number of European countries.
In addition to the above, fully drawn banking facilities of €7,012 thousand are subject to review
Primary statements
by 30 June 2022. The lenders are expected to undertake a review, which will include (but is not
limited to) an assessment of:
– the financial performance of the Group against budget; and
– the progress of compliance with new regulatory requirements.
Management believes that the repayment of the facilities will be met out of operating cash flows
and the immediate and significant mitigating actions taken by management to reduce costs and
optimise the Group’s cash flow and liquidity. Among these are the following mitigating actions:
reducing capital and investment expenditure through postponing or pausing projects and change
activity; deferring or cancelling discretionary spend; freezing non-essential recruitment; and reducing
marketing spend. Management anticipates that any additional cash flow needs will be met out of
asset sales. Management is confident that the asset sales will be finalised before 30 June 2022 as
disclosed in Note 20 and that the proceeds will be sufficient to meet any additional cash flow needs.
Based on these factors, management has a reasonable expectation that the Group has and will Notes
have adequate resources to continue in operational existence for the foreseeable future.
4. Use of judgements and estimates

A. Judgements
IAS 1.122 Information about judgements made in applying accounting policies that have the most significant
effects on the amounts recognised in the financial statements is included in the following notes:
IAS 1.122, IU 07-14, – Note 2(X) – going concern: whether there are material uncertainties that may cast significant
Insights 1.2.83.10
doubt on the entity’s ability to continue as a going concern […]
a. This appendix illustrates one possible example of disclosures in a close-call scenario. Additional illustrative examples
of going concern disclosures are provided in our COVID-19 supplement (September 2020).
APPENDICES
IAS 1.122, IU 07-14, b. In some cases, management may conclude that there are no material uncertainties that require disclosure in
Insights 1.2.85.10 accordance with paragraph 25 of IAS 1. However, reaching that conclusion involved significant judgement (i.e.
a ‘close-call’ scenario). In these cases, a question arises about whether any disclosures are required. The IFRS
Interpretations Committee discussed this issue and noted that the disclosure requirements in paragraph 122 of IAS
1 apply to the judgements made in concluding that there are no material uncertainties related to events or conditions
that may cast significant doubt on the entity’s ability to continue as a going concern. To meet these disclosure
requirements, in our view similar information to that in respect of material uncertainties (see first three points in
1.2.83.10 in Insights into IFRS) may be relevant to the users’ understanding of the entity’s financial statements.
Distributions of non-cash assets to owners

Introduction

X. Distribution of wholly owned subsidiary to owners of the
Companya, b, c
IFRIC 17.16(a) On 15 May 2021, the board of directors of the Company announced that the Group would distribute
all of its shares in Papier GmbH, a wholly owned subsidiary within the Recycled Papers segment, to
the Company’s shareholders. On authorisation of the distribution, the Group recognised a dividend
payable of €12,500 thousand, being the fair value of the assets to be distributed.
On 3 June 2021, the shares were distributed. The net assets comprised assets of €17,408 thousand
less liabilities of €7,464 thousand as follows.
Auditors’ report
In thousands of euro 2021
Property, plant and equipment 9,650

Investment property 100
Intangible assets 400
Deferred tax assets 225
Inventories 2,900
Trade and other receivables 4,133
Loans and borrowings (3,064)
Provisions (200)
Deferred tax liabilities (450)
Trade and other payables (3,750)
Primary statements
Carrying amount of net assets distributed 9,944

Dividend to shareholders 12,500
Carrying amount of net assets distributed (9,944)
Gain on distribution to owners of the Company 2,556c
IFRIC 17.16(b) There was no change in the fair value of the assets to be distributed between the date on which
the distribution was approved and the date on which the dividend was settled.
Notes
a. This appendix illustrates the disclosures that may be necessary to provide information about distributions of non-
cash assets to owners and/or non-current assets (or disposal groups) that are held for distribution (or distributed)
to owners.
APPENDICES
IFRS 5.5A, b. It is not clear whether a business that will be disposed of by distribution to owners could be classified as a
Insights 5.4.130.30 discontinued operation before its disposal. Although IFRS 5 was amended to extend the requirements in respect
of non-current assets or disposal groups held for sale to such items held for distribution to owners, the cross-
referencing in the amendments does not extend to discontinued operations. In our view, although the definition of a
discontinued operation has not been extended explicitly, classification of non-current assets or disposal groups held
for distribution to owners as a discontinued operation is appropriate if the remaining criteria of IFRS 5 are met.
IFRIC 17.14 c. The difference between the dividend paid/payable and the carrying amount of the assets distributed is presented as
a separate line item in profit or loss.
Appendix IV 201
Government-related entities under IAS 24
Introduction
41. Related partiesa
Example 1 – Individually significant transaction because of size of transaction
In 2018, a subsidiary entity, Griffin Limited, entered into a procurement agreement with the
Department of Commerce of the Government of [Country X], such that Griffin Limited would act
as the sole supplier of recycled paper products to the Department’s various agencies for a term of
three years from 2020 to 2022, with an agreed bulk discount of 10% compared with the list prices
that Griffin Limited would generally charge on individual orders.
The aggregate sales value under the agreement for the year ended 31 December 2021 amounted
Auditors’ report
to €3,500 thousand (2020: €2,800 thousand). As at 31 December 2021, the aggregate amounts
due from the Department amounted to €10 thousand (2020: €30 thousand) and were payable
under normal 30 days’ credit terms.
Example 2 – Individually significant transaction carried out on ‘non-market’

terms
On 30 December 2020, the Department of Finance of the Government of [Country X] contracted
Griffin Limited to be the sole designer and supplier of materials for office fit-outs for all of
Government. The contract lasts for a term of five years from 2021 to 2025. Under the agreement,
the Department of Finance will reimburse Griffin Limited for the cost of each fit-out. However,
Griffin Limited will not be entitled to earn a margin above cost for this activity. The aggregate sales
value under the agreement for the year ended 31 December 2021 amounted to €3,500 thousand.
As at 31 December 2021, the aggregate amounts due from the Department amounted to
Primary statements
€1,000 thousand and were payable under normal 30 days’ credit terms.
Example 3 – Individually significant transaction outside normal day-to-day

business operations
Under an agreement dated 1 January 2021, Griffin Limited and the Department of Trade and
Enterprise of the Government of [Country X] agreed to participate and co-operate with a third party
consortium in the development, funding and operation of a research and development centre.
Griffin Limited will also sub-lease a floor in its headquarters building as an administrative office
for the joint operation. As at 31 December 2021, the capital invested in the venture amounted to
€700 thousand and total lease payments of €100 thousand were received as rental income.
Example 4 – Individually significant transaction subject to shareholder approval

Griffin Limited currently owns 40% of Galaxy Corp, with the remaining 60% owned by the
Department of Commerce of the Government of [Country X] (25%) and Lex Corp (35%), a party
indirectly controlled by the Department of Commerce.
Notes
On 1 December 2021, Griffin Limited entered into a sale-and-purchase agreement (the
Agreement) with the Department of Commerce and Lex Corp, such that Griffin Limited will buy
their shares in Galaxy Corp at €1 per share, at a total consideration of €6,000 thousand. The terms
of the Agreement are subject to independent shareholders’ approval at the extraordinary general
meeting to be held on 1 February 2021. On completion of the proposed acquisition, Galaxy Corp
will become a wholly owned subsidiary of Griffin Limited.
APPENDICES
a. This appendix illustrates a variety of disclosures that an entity may make under paragraph 26 of IAS 24; other
formats are possible. We assume that the Group is indirectly controlled by the government of [Country X]. We also
assume that, in addition to selling to various private sector entities, products are sold to government agencies and
departments of [Country X].

Introduction
(continued)
IAS 24.26 Example 5 – Collectively, but not individually, significant transactions
Griffin Limited operates in an economic regime dominated by entities directly or indirectly
controlled by the Government of [Country X] through its government authorities, agencies,
affiliations and other organisations, collectively referred to as government-related entities. Griffin
Limited has transactions with other government-related entities, including but not limited to sales
and purchases of goods and ancillary materials, rendering and receiving services, lease of assets,
and use of public utilities.
Auditors’ report
These transactions are conducted in the ordinary course of Griffin Limited’s business on terms
comparable to those with other entities that are not government-related. Griffin Limited has
established procurement policies, a pricing strategy and an approval process for purchases
and sales of products and services, which are independent of whether the counterparties are
government-related entities.
For the year ended 31 December 2021, management estimates that the aggregate amount of
Griffin Limited’s significant transactions with other government-related entities is at least 50% of
its sales of recycled paper products and between 30 and 40% of its purchase of materials.
Primary statements
Notes
APPENDICES
Appendix IV 203
Entities with a service concession arrangement
Introduction
X. Service concession arrangementa, b
SIC-29.6 On 1 July 2021, the Group entered into a service concession agreement with a local township (the
grantor) to construct a toll road near one of the Group’s forestry operations. The construction of the
toll road started in July 2021 and it was completed and available for use on 30 September 2021.
Under the terms of the agreement, the Group will operate and make the toll road available to the
public for a period of five years, starting from 1 October 2021. The Group will be responsible for any
maintenance services required during the concession period. The Group does not expect major
repairs to be necessary during the concession period.
Auditors’ report
SIC-29.6(c)(iv) The grantor will provide the Group a guaranteed minimum annual payment for each year that
the toll road is in operation. Additionally, the Group has received the right to charge users a fee
for using the toll road, which the Group will collect and retain; however, this fee is capped to a
maximum amount as stated in the service concession agreement. The usage fees collected
and earned by the Group are over and above the guaranteed minimum annual payment to
be received from the grantor. At the end of the concession period, the toll road will become
the property of the grantor and the Group will have no further involvement in its operation or
maintenance requirements.
SIC-29.6(c)(v) The service concession agreement does not contain a renewal option. The rights of the grantor
to terminate the agreement include poor performance by the Group and in the event of a material
breach in the terms of the agreement. The rights of the Group to terminate the agreement include
failure of the grantor to make payment under the agreement, a material breach in the terms of
Primary statements
the agreement and any changes in law that would render it impossible for the Group to fulfil its
requirements under the agreement.
SIC-29.6(e), 6A For the year ended 31 December 2021, the Group has recognised revenue of €350 thousand,
consisting of €320 thousand on construction and €30 thousand on operation of the toll road, which
is the amount of tolls collected. The Group has recognised profit of €20 thousand, consisting of a
profit of €25 thousand on construction and a loss of €5 thousand on operation of the toll road. The
revenue recognised in relation to construction in 2021 represents the fair value of the construction
services provided in constructing the toll road. The Group has recognised a service concession
receivable, initially measured at the fair value of the construction services, of €260 thousand
representing the present value of the guaranteed annual minimum payments to be received from
the grantor, discounted at a rate of 5%, of which €11 thousand represents accrued interest.
The Group has recognised an intangible asset received as consideration for providing construction
or upgrade services in a service concession arrangement of €95 thousand, of which €5 thousand
has been amortised in 2021. The intangible asset represents the right to charge users a fee for use
of the toll road.c Notes
APPENDICES
a. This appendix illustrates one possible format for the disclosure of a service concession arrangement to help in the
preparation of consolidated financial statements. Other presentation formats are possible.
SIC-29.7 b. Disclosures about the nature and extent of service concession arrangements are provided individually for each
service concession arrangement or in aggregate for each class of service concession arrangement.
c. The disclosure requirements in IFRS 13 do not apply to assets and liabilities that are not measured at fair value after
initial recognition.

Introduction
(continued)
45. Significant accounting policies
D. Revenue
x. Service concession arrangements
[IFRIC 12.13] Revenue related to construction or upgrade services under a service concession arrangement
is recognised over time, consistent with the Group’s accounting policy on recognising revenue
on construction contracts. Operation or service revenue is recognised in the period in which the
services are provided by the Group. If the service concession arrangement contains more than one
performance obligation, then the consideration received is allocated with reference to the relative
Auditors’ report
stand-alone selling prices of the services delivered.
M. Intangible assets and goodwill

x. Service concession arrangements
[IFRIC 12.17] The Group recognises an intangible asset arising from a service concession arrangement when
it has a right to charge for use of the concession infrastructure. An intangible asset received as
consideration for providing construction or upgrade services in a service concession arrangement
is measured at fair value on initial recognition with reference to the fair value of the services
provided. Subsequent to initial recognition, the intangible asset is measured at cost, which includes
capitalised borrowing costs, less accumulated amortisation and accumulated impairment losses.
The estimated useful life of an intangible asset in a service concession arrangement is the period
from when the Group is able to charge the public for the use of the infrastructure to the end of the
Primary statements
concession period.
P. Financial instruments
x. Non-derivative financial assets – Service concession arrangements
The Group recognises a financial asset arising from a service concession arrangement when it
has an unconditional contractual right to receive cash from or at the direction of the grantor for
the construction or upgrade services provided, and the right to receive cash depends only on the
passage of time. Such financial assets are measured at fair value on initial recognition and classified
as financial assets measured at amortised cost.
If the Group is paid for the construction services partly by a financial asset and partly by an
intangible asset, then each component of the consideration is accounted for separately and is
initially recognised at the fair value of the consideration (see also (M)(x)).
Notes
APPENDICES
Acknowledgements | 205
Acknowledgements
Introduction
We would like to acknowledge the principal contributors to and reviewers of this guide, who include:
Toshiyuki Bukawa
Matthew Cook
Divya Gaur
Sashank Gopalswami
Irina Ipatova
Arata Kisakibaru
Julie Locke
Colin Martin
Genevieve Naik
Auditors’ report
Ingo Rahe
Agnieszka Sekita
Sinead Slattery
Avi Victor
Guy Zmora
Primary statements
Notes
APPENDICES
Further resources
Introduction
Keeping in touch
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APPENDICES
Keeping in touch | 207
Introduction
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APPENDICES
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Publication name: Guide to annual financial statements – Illustrative disclosures
Publication number: 137804
Publication date: September 2021
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Il ustrative

References and abbreviations 5

Independent auditors’ report 6

Consolidated financial statements 14

Consolidated statement of financial position 16

Consolidated statement of profit or loss and

Consolidated statement of changes in equity 22

Consolidated statement of cash flows 24

Notes to the consolidated financial statements 26

I New standards or amendments for 2021 and

II Presentation of comprehensive income –

III Statement of cash flows – Direct method 198

IV Other disclosures not illustrated in the

Keeping in touch 206

Basis of preparation 26 Other information 155

About this guide

financial statements – COVID-19 supplement (September 2020).

– Potential impacts of COVID-19 on the annual financial statements of the

disclosures that entities may need to provide on accounting issues arising

remaining uncertainties associated with Brexit, it should assess the impact of

IAS 1.82(a) Paragraph 82(a) of IAS 1.

The following markings in the left-hand margins indicate the following.

Major changes since the 2020 edition of this guide.

The following abbreviations are used often in this guide.

CGU Cash-generating unit

[Name of the Company]

Independent auditors’ report

To the Shareholders of [Name of the Company]

Basis for Opinion

Key Audit Matters

Impairment testing of goodwill

See Note 22 to the consolidated financial statements.

for the European Paper manufacturing and

recalculating historical customer retention

- the key assumptions used to determine the

Valuation of disposal group held for sale

See Note 20 to the consolidated financial statements.

replicating the manufacturing facility.

replicating the manufacturing facility by

Recognition of deferred tax assets

Auditors’ Responsibilities for the Audit of the Consolidated Financial Statements

[Signature as appropriate for the particular jurisdiction]

[Name of the Company]

Consolidated financial statements

Consolidated statement of financial position

31 December 31 December 1 January

Consolidated statement of financial position (continued)

disclosure requirements in IFRS 7 Financial Instruments: Disclosures.

Consolidated statement of profit or loss and

other comprehensive income a, b

For the year ended 31 December

IAS 1.85 Profit before tax 10,351 8,856

Consolidated statement of profit or loss and

Other comprehensive income

For footnotes, see pages 20 and 21.

Consolidated statement of profit or loss and

other comprehensive income (continued)

Profit attributable to:

IAS 1.81B(b)(ii) Owners of the Company 7,762 6,032

I New standards or amendments for 2021 and

II Presentation of comprehensive income –

IV Other disclosures not illustrated in the