ANNUAL REPORT 2022
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2022
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2022
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2022
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2022
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2022
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2022
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2022
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COMPANY
(“NHC”) is a leading
. The parent company is
headquartered in
,
.
OPERATIONS
Preschools
The Preschools segment includes the
preschool activities within Norlandia
Preschools AS and Kidsa Barnehager AS.
Per year-end 2022, Norlandia Preschools
and Kidsa Barnehager operates 421
preschool units in Norway, Sweden,
Finland, Netherlands, Poland and
Germany, an increase of 28 units year-
on-year. 32 of the units are owned 50%
and operated by Wekita (Germany) and
consolidated as an associated company.
Care
Norlandia Care provides services within
institutional elderly care, patient hotels
and home care services in Norway,
Sweden and Finland. As of year-end
2022, 56 elderly care homes were
operated by Norlandia, of which 48 were
in Sweden, 3 were in Norway and 5 was
in Finland. 9 of the homes were own-
management projects, including a
Generation Concept (preschool and
elderly care). Norlandia also operates 2
patient hotels in Norway, and 1 in
Finland. Additionally, we have home care
services in Finland, Norway, and Sweden.
Integration Services
The integrations services are offered
through Hero Group AS. The company
was established in 1987 and has grown to
become one of the largest private
providers of care services related to
forced migrants, refugees and asylum
seekers in Norway. In addition, Hero
operates several reception centers in
Germany. The group has extensive
competence and experience acquired
through 30 years of operations. The
service offering includes reception
centers for asylum seekers and
interpretation services.
With the tragedy of the war in Ukraine,
Hero has been central in the
Government’s effort to provide
accommodation for Ukrainian refugees.
With the long term experience and
resources across segments, Hero has
succeed to offer security for many of the
victims in this tragedy. There is high
activity within Hero as acute
accommodation is scaling down and
replaced by an increasingly numbers of
long term contracts.
Individual & Family
The services within the Individual &
Family segment are provided by Aberia
AS – a Nordic provider of health-,
welfare- and care services for children
and young as well as people with physical
and mental disabilities. The group was
established in 2010 and has grown to
become a significant player in the Nordic
market. The services are divided in three
main areas: services related to childcare
institutions and foster homes; care
services for people within all age groups
with physical and mental disabilities; and
respite care and personal assistance.
Most of the contracts in the group are
with the government, municipalities or
city district authorities.
Real Estate
Care Properties AS is a real estate
developer for Norlandia Health & Care
Group (NHC). As part of NHC’s business
model, Care Properties develops or
acquires care related real estate, for NHC
operations. Normally, the various
properties will subsequently be divested
based on a long-term lease contract with
NHC.
COMMENTS TO THE CONSOLIDATED
FINANCIAL STATEMENTS
The Group’s revenues increased from
NOK 5,933.7 million in 2021 to NOK
7,934.1 million in 2022 primarily
explained by growth within Integration
Services.
Profit from operations came in at NOK
476.6 million in 2022, up from NOK 238.5
million in 2021. Net finance amounted to
NOK -273.1 million for the year,
influenced by net unrealized currency
gains of NOK 24.8 million.
Consequently, net profit increased from
NOK 43.7 million in 2021 to NOK 169.5
million in 2022.
IFRS-16 was adopted on 1st January
2019, and had a net effect on profit
before tax, of NOK -68.3 million in 2022.
This is explained by increased
depreciation charges of NOK 526.5
million, finance charges of NOK 152.5
million and a reduction of real estate
gains of NOK 30.6 million, partially offset
by reduced leasing expenses of NOK
641.3 million.
The Group generated cash flow from
operating activities of NOK 956.2 million
in 2022 up from NOK 607.4 million in
2021, positively affected by a higher Net
income. Net cash flow from investing
activities amounted to NOK -98.8 million,
down from NOK 42.6 million in 2021,
explained by lower proceeds from sale of
assets and higher investments. Financing
cash flows amounted to NOK -882.9
million, down from NOK -631.1 million in
2021, the difference mainly explained by
repayment of debt and increased lease in
2022.
As of 31.12.2022, the Group had a cash
balance of NOK 271.7 million, down from
NOK 301.2 million one year prior. In
addition, the Group has a revolving credit
facility of NOK 350 million with DNB. As
of 31
st
million was drawn.
The Group had total assets of NOK
9,766.5 million per year-end 2022,
compared to NOK 8,317.6 million in
2021. Total non-current liabilities
amounted to 7,294.5 million, significantly
up from 2021, with the increase
reflecting lease liabilities.
Per 31
st
total equity amounted to NOK 601.2
million, up from NOK 472.0 million in
2021.
The Group’s financial position is sound
and adequate to settle short-term
obligations with the Group’s liquid assets.
The board of directors’ report 2022
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NORLANDIA HEALTH & CARE GROUP AS
The consolidated financial statements
have been prepared in accordance with
International Financial Reporting
Standards (IFRSs) as adopted by EU.
COMMENTS TO THE PARENT COMPANY
FINANCIAL STATEMENTS
Operating profit for the parent company
amounted to NOK -7.8 million in 2022, up
from NOK -9.3 million in 2021. Net
financial items decreased from NOK
185.8 million in 2021, to NOK 161.2
million in 2022, reflecting interest paid on
the bond offset by received group
contributions. Net income amounted to
NOK 122.0 million in 2022, down from
NOK 155.3 million in 2021.
Total assets per 31.12.2022 were NOK
2,732.3 million mainly consisting of
shares in subsidiaries which were an
increase from NOK 2,638.5 million as of
31.12.2021.
Total liabilities per 31.12.2022 were NOK
1,926.7 million, which consisted of the
listed NOK and SEK bond issues (adjusted
for issuing costs). In addition, the parent
company had short-term liabilities to
group companies of NOK 142.8 million.
Total equity per 31.12.2022 amounted to
NOK 805.7 million, up from NOK 703.6
million in 2021.
Use of Alternative Performance
Measures
Alternative Performance Measures (APM)
is understood as a financial measure of
historical or future financial performance,
financial position, or cash flows, other
than a financial measure defined or
specified in the applicable financial
reporting framework.
Norlandia Health & Care Group reports
certain alternative performance
measures in its financial reports as a
supplement to the financial statements
reported in accordance with IFRS.
The APMs are used consistently over
time and accompanied by comparatives
for the corresponding previous periods.
Definitions: EBITDA: Earnings Before
Interest, Tax, Depreciation and
Amortization EBIT: Earnings Before
Interest and Tax, Total Net Debt: As used
in the incurrence test; total interest
bearing debt less cash and cash
equivalents.
The Group also use adjusted EBITDA to
exclude the effects from IFRS 16, as these
figures are relevant for monitoring capital
and reporting to stakeholders.
Going concern
In accordance with the Norwegian Ac-
counting Act §3-3a, we confirm that the
financial statements have been prepared
under the assumption of a going concern.
This assumption is based on profit
forecasts for 2023 and the Group’s long-
term strategic forecasts. The Group’s
economic and financial position is sound.
Future challenges and market outlook
The war in Ukraine is clearly a tragic
humanitarian crisis, and along with the
rest of the world, we at NHC are shocked
by the developments that are unfolding.
Hero, as Norway’s largest operator of
immigration and refugee centers, is
consequently very much affected and
central in the Government’s ambition to
establish accommodation for at least 40
000 Ukrainian refugees. This work is
continuing with intense focus.
While Covid-19 is receiving less public
attention, it remains an uncertainty and
risk going forward. The pandemic had a
negative financial impact in 2022 and all
our markets and operations were
affected in some degrees. Primarily the
Elderly Care is affected through
continued low occupancy, as the number
of death among seniors have been high
during the last years. We continue to
plan and prepare for negative
developments through our contingency
procedures.
Additionally, the regulatory framework
has a significant influence on the Group
and our ability to deliver services with
high quality. Political risk is therefore
present as major shifts may have a
significant impact in the way we deliver
our services. Currently, these risks are
clearly most evident in Norway. In
December, Norlandia filed a lawsuit in
cooperation with other participants in
the market to challenge the level of
previous subsidies, and the regulation
which governs these subsidies to be
declared void. The lawsuit is based on a
claim of disparate treatment of public
and private preschools and aims at
strengthening the preschools in order to
treat children equally, independent of
ownership, going forward.
High inflation in all the countries where
we operate and increasing interest rates
impact the Group’s profitability.
Increased salaries, electricity prices and
general costs have a negative effect on
this year’s results, as the current price
level in most of our agreements does not
take the currently increased cost level
into account. We do, however, regard the
weakened profitability in some segments
as temporary, considering that most of
the cost increases experienced in 2022
over time will be reflected in future
agreements through renegotiations or
index clauses. In addition, we experience
challenges related to staff shortages, in
line with the overall market, and address
this by new recruiting and retention
practices.
Within Preschools; 2022 has been
challenging due to the rapid inflation and
shortage of staff. On top of this the
margins in Norway have been under
pressure in 2022 as grants are based on
municipal costs in 2020, a year
characterized by COVID-19 cost support,
and are thus unnaturally low.
Government support incentives provided
to Municipalities in 2020 have lowered
the grants to private operators for 2022.
In 2022 the remaining part of the pension
benefit plan was converted to a
contribution plan. This strengthens our
employees’ pensions and rights, now
ranked in the very top of peers, and
provides a reduced and stable pension
cost for NHC going forward
ANNUAL REPORT 2022
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In March 2022, we completed the
acquisition of a Swedish preschool chain,
Kunnskapsförskolan , consisting of 9 large
operational units and 18 units under
construction. While this growth will have
negative impact on our short-term
financial performance, it strengthen both
the long term growth and diversification
of our operations.
Our other international operations
continue to perform well. The
Netherlands, Finland are all showing solid
growth in revenues and profitability, and
we continue to pursue attractive
opportunities in these markets. The
ramp-up phase in Poland has been
prolonged by the pandemic, but
occupancy is showing steady growth and
the operations are nearing break-even
levels. Overall, the Preschools segment is
progressing well and we will continue to
target effective and sticky growth in all
our international markets.
Wekita, consisting of 32 units in
Germany, is owned 50% by NHC and are
consolidated as an associated company .
The Care segment continued to be
heavily affected by Covid-19 in 2022, and
occupancy levels in Sweden, by far our
biggest market, are still below pre -Covid
levels. In addition, the lack of personnel
and high inflation have an unfavorable
impact on financial performance. Over
time, we expect that most of these cost
increases will be reflected in future
agreements through index clauses and
our intensified discussions with
municipalities regarding renegotiations of
prices.
The long-term fundamentals for Care
remain strong, although the short-term
outlook is challenging. An official report
from the Government on personnel
within care clearly states a dramatically
increase in number of elderly people,
with no increase in personnel. The future
cere services need to adopt these trends
and need innovations.
We strongly believe that both the
capacity and quality innovations provided
by the private welfare companies will be
required, in order to meet the growing
demand for elderly care services, also
with respect to quality.
Our operation in Norway is limited due to
the low number of tender contracts. In
this political climate we are therefore
proud to have won the Oksenøya nursing
home tender in 2022. This will have a
capacity of more than 150 users, once
fully ramped up.
In Finland, our operations have steady
growth with several new openings during
2022. In the latter part of 2022 and into
2023 we will have some start-up cost for
the new openings.
In Sweden, competition is intense and
profit margins are thin. Although efficient
operations and normalized occupancy
will enable positive profitability, a shift
towards own management operations is
required and ongoing in order to see a
meaningful improvement of profit
margins. Sweden is highly influenced by
the rapid inflation and the lack of
personnel. Mitigating these effects is the
top priority for the division in the short
term. As we strongly believe in the long-
term fundamentals, we currently retain
some strategical positions even with
some short-term losses.
Lead times within the Care segment are
long and the Covid-19 situation could
prolong these further. Although receiving
less public attention, the Covid pandemic
is still affecting our operations, primarily
through lower occupancy levels than pre-
Covid. Occupancy is, however, steadily
increasing and we are working actively
with marketing and other measures to
get back to the levels required to
generate profits.
Integration Services has been challenging
since 2016 and up util 2021. We have
retained our position as we believe there
is a high strategical value in the position
Hero have created over decades. With
the outbreak of the war in Ukraine, this
strategical position have had a crucial
role in Norway´s ability to provide safety
to refugees.
Accommodation Services in Norway
opened more than 40 acute refugee
centers with capacity to house over
10,000 refugees. A considerable share of
these centers opened less than a week
after UDI (The Norwegian Directorate of
Immigration) first signaled the need for
emergency preparedness. Through a
collective effort from the whole NHC
organization, Hero demonstrated an
impressive ability to rapidly provide much
needed support in a highly emergent
situation, and we saw the full effect from
this major upscaling from Q2 22 and
onwards. Although the majority of the
acute reception centers opened in 2022
have been closed and replaced by long-
term ordinary reception centers, we
expect continued high activity in the
short term. Hero currently operates
several ordinary reception centers in
Norway and is the only company with
frame-agreements in all regions. Further,
there are multiple ongoing and planned
tenders by UDI to prepare for a
continued high number of refugees
expected to arrive in Norway in 2023,
both from Ukraine and other countries.
UDI estimates a total number of 40,000
refugees in 2023, which is in line with the
2022 figures.
Germany have experienced a significant
inflow of refugees during 2022, and not
only related to the war in Ukraine. We
are operating a growing number of
reception centers and have a meaningful
profitability. We are actively pursuing
various tender opportunities, and remain
comfortable in our position and the
potential upside in a large and attractive
market.
The Interpretation segment has gone
through a comprehensive re-organization
the recent years. The operations is
growing and hit record high levels in
numbers of assignments and solid
profitability.
Through proactivity in all our markets
and backed by the current performances
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NORLANDIA HEALTH & CARE GROUP AS
and outlook, Hero is positioned to deliver
solid revenues and healthy profitability
also when the Ukrainian crisis ends. As
everyone else, Hero intensely wishes for
the Russian aggression and brutalities in
Ukraine to end. For as long as it takes,
Hero will remain a mobilized tool for
immigration authorities to host asylum
seekers and migrants in a respectful and
dignified way.
Aberia has been through an extensive
restructuring in order to stream -line
operations and focus its portfolio. Loss-
making and non-core operations have
been terminated or divested, while the
core operations are strong on quality and
reputation, profitable and growing. In
2022 we saw the effects of the
restructuring with four consecutive
profitable quarters, and now reaching
NOK 1,000 million in revenue.
Aberia Sweden consists of Personal
Assistance operations, through the two
entities Marcus Assistans AB and
Østgøteland Assistans AB. Profitability in
these companies was low in 2022
following the completion of the internal
re-organization. Aberia finalized a
transaction with the non-controlling
parties, increasing the shareholding in
these companies to 100%.
Child Care and Respite Care services,
along with Family Homes and Personal
Assistance, represent the core operations
in Norway. Combined, these operations
are generating healthy profitability and
strong growth compared to prior year.
In Norway, the political landscape is
challenging and hampers top line growth
as non-profit organizations are preferred
in tenders. Our child care operation in
Northern Norway, Aurora Omsorg, was
established in late 2019 continue
delivering improvements. We expect
Aurora to continue the positive
development going forward.
In 2023, following the acquisition of
Frösunda after the balance sheet date,
Frösunda Personal Assistance and
Frösunda Disability will be consolidated
into NHC’s Individual & Family segment,
significantly increasing the segment’s
turnover and providing more stability in
terms of profitability and diversification .
We regard the consolidation as a perfect
fit combining highly complementary
competencies across the organizations in
Norway and Sweden, with unrealized
synergy potential, and have great
expectations for the segment going
forward.
The personal assistance market in
Sweden recently experienced a shock
related to Humana Assistans AB having
its license to operate revoked in January
2023, after a two-year inspection
performed by the Swedish Health and
Social Care Inspectorate (IVO). Aberia’s
personal assistance was subject to
inspection by IVO in 2022, which resulted
in a retained license for Aberia and thus
continued operations. Over time, both
Frösunda and Aberia have performed
extensive work to improve internal
processes and routines to mitigate risks
and strengthen quality, and currently,
there are no ongoing inspections of our
operations.
The consequences of Humana’s revoked
license are substantial, affecting 2,000
disabled persons and 11,000 employees,
and NHC is closely monitoring the
situation. If required, our Swedish
operations have both the capacity and
willingness to quickly bring on board and
help new customers in need of
assistance. A standard review of each
customer will be carried out in these
cases, fully in-line with existing guidelines
and procedures. In Sweden, a large
majority of those entitled to personal
assistance choose private providers and
NHC considers the recent development
highly regrettable, considering the
negative impact it has on many disabled
people in need of security and stability in
life.
2022 was another solid year for the Real
Estate segment, although being down on
2021. During 2022 we have continued to
develop our portfolio of properties and
successfully secured financing for further
growth. Although we acknowledge the
challenges the overall real estate market
is currently experiencing, we believe we
are well positioned to maintain a healthy
profitability level going forward. Besides
cash flow and profitability, most
importantly, we expect the segment to
support NHC’s operating companies
through access to good properties and
solid long-term operations.
FINANCIAL RISK
Overall view on objectives and strategy
The Group is exposed to financial risk in
different areas, including exchange rate
risk, market risk, credit risk and liquidity
risk. The Group is continuously assessing
these risks.
Market risk
The Group's business, results of
operations and financial conditions
depend principally upon conditions
prevailing for childcare, individual and
family (i.e. private foster homes, assisted
living, user controlled personal assistance
and rehabilitation) and elderly care
services in the Nordic region. The
individual and family segment is highly
dependent on single orders made by the
municipalities, and to some extent the
North-European region, in particular,
public policies and the political climate.
Furthermore, the demand for the
Group's services is dependent on inter
alia the birth rates and the longevity in
the regions where the Group operates.
Integration services will in addition to
political decisions be affected by
geopolitical situations which may lead to
reduced number of immigrants and
asylum seekers. Demand for private care
services may decrease depending on a
number of demographic and economic
factors, including (but not limited to)
birth rates, immigration, need for elderly
care etc.
Up until the Ukrainian war, the intake of
immigrants and asylum seekers was very
limited in all countries in which the
Group operates. If these countries
implement politics which directly or
indirectly limits the intake of immigrants
ANNUAL REPORT 2022
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and asylum seekers even further, this
could have a material adverse effect on
the Group. However, it should be noted
that the current geopolitical situation
with the war in Ukraine has a material
impact on the demand for the Group’s
facilities and the Group’s profits.
Currently there is a high demand for the
Group’s services, especially within the
Integration Services segment, leading to
a profitable business. It can be expected
that the demand for the Group’s facilities
and the profits will normalize when the
war in Ukraine ceases. A different
demographic development than
previously seen, can have a material
adverse effect on the future market
which may negatively affect the Group's
profitability and financial situation.
Exchange rate risk
The Group has operations in Norway,
Sweden, Finland, the Netherlands,
Germany and Poland. Currency
fluctuations may have a negative effect
on the Group’s financial conditions and
results of operations. The Group is
predominantly exposed to the SEK/NOK
exchange rate as the financial statements
are presented in NOK and around 40% of
revenues are generated in SEK. However,
the Group has a corresponding share of
costs in SEK and about 45% of its bond
debt is denominated in SEK, both
representing natural hedges to the
operations.
The Group has a growing exposure to the
EUR/NOK exchange rate as operations in
the Netherlands, Finland and Germany
are growing. The Group is monitoring the
exposure and may consider hedging this
exposure in the future.
The Group is further exposed to changes
in interest rates as most long-term debt
in the Group is subject to floating interest
rates. The Group has not established any
interest rate hedging mechanisms.
Credit risk
The risk of losses on receivables is
considered very low in the Group as a
considerable part of revenues is towards
governmental entities and municipalities.
The Group has not yet experienced
significant losses on receivables.
Liquidity risk
The Group’s liquidity is sound, enabling
each Group company to handle short-
term obligations. The Group will continue
to experience large movements in
working capital, which will affect the cash
position on any given month.
CORPORATE GOVERNANCE
NHC is a limited liability company
organized under Norwegian law with a
governance structure based on
Norwegian corporate law. The
Company’s corporate governance model
is structured to provide a foundation for
long-term value creation through an
efficient organization with solid
management. A manual covering
standards and routines for relevant
corporate governance matters has been
prepared by the administration and
approved by the Board of Directors.
The Company has a one-tier board with
three directors, including the two largest
shareholders and one independent
director. The governance structure is
further based on the Norwegian Code of
Practice for Corporate Governance and
the Company is continuously seeking to
adopt a larger part of the
recommendations.
NHC publishes four interim financial
statements in addition to the ordinary
annual financial statements.
The financial statements shall satisfy legal
and regulatory requirements and be
prepared in accordance with the adopted
accounting policies and be published
according to the schedule adopted by the
Board. The Group’s Audit Committee
consists of two board members.
Closing of accounts, financial reporting
and key risk analysis are provided
monthly to the Group Management.
These monthly reports also include
financials per segment, which are
analyzed and addressed against set
budgets.
In connection with closing of accounts for
the various segments, business review
meetings are held to identify risk factors
and measures linked to important
accounting items or other factors. The
management also has separate meetings
with the external auditor to review such
risk factors and measures.
The Group has risk management
processes in place within each subsidiary,
which are adapted to fit the size,
complexity and risk profile of each entity.
The routines focus on managing risks as
well as identifying opportunities.
THE WORKING ENVIRONMENT AND
THE EMPLOYEES
The number of employees in the Group
amounted to ~12,500 in 2022. The
working environment is considered to be
good and efforts for improvements are
made on an ongoing basis. The Group
aims to be a workplace with equal
opportunities and seeks to prevent
gender discrimination in all aspects of our
operations.
Leave of absence is an important
performance indicator and is measured
throughout the Group’s operational
entities, but not on a consolidated basis.
During 2022 leave of absence is still at a
higher level due to Covid-19.
We will encourage and empower our
staff to be proactive on sustainable
development matters both at work and
in the community. We will strive to
achieve a high degree of diversity in our
working environment in all areas of NHC
operations.
In relation to gender equality, NHC
operates in segments which traditionally
have been dominated by female
employees. With that in mind, we seek a
balanced representation of genders both
in first line, middle manager, and senior
leadership positions. Currently our
gender balance at the senior level is as
follows: Line CEOs (n=6): 50% women;
country managers (n=12): 58% women;
extended management group (n=42):
40% women. In sum, we are doing quite
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NORLANDIA HEALTH & CARE GROUP AS
well and will keep up our attention on
this important matter.
NORWEGIAN TRANSPARENCY ACT
In July 2022, the Norwegian Transparency
Act (Nw.
Åpenhetsloven
) came into force.
The Act requires enterprises to conduct
due diligence assessments, i.e. they must
look at both their own business, their
supply chain and their business partners
to find out where the major risks are. The
assessment must be carried out in
accordance with the OECD Guidelines for
Multinational Enterprises and must
publish an account of these due diligence
assessments at an annual basis.
AS the NHC Group is a provider of health
and care services, the group is exposed to
a low level of human rights risks and
decent working conditions in its own
workforce. Risk is many related to third
party contractors through
products/services it purchases.
The NHC Group is in the process of
preparing a formal Transparency Act
statement, with results from the risk
assessments and gap analysis, that we
will publish on NHC’s website before 30
June 2023 which can then be
downloaded from
ENVIRONMENTAL REPORT
The Group’s operations are not harmful
to the environment and are not regulated
by any special licenses related to waste
handling. NHC Group will meet or exceed
all legal requirements and be a good
steward of all resources that falls under
our company’s influence, and ensure that
all potential adverse impacts of our
operations on the environment are
identified and appropriately managed.
As of 2022 our divisions – Preschools,
Care and Hero Tolk (a part of Hero group)
– are certified on ISO 14001:2015.
Preschools, Care and Hero Group are also
ISO 9001:2015 certified. See also our
biennial CSR-report where we document
our deep and wide range of
environmental and sustainability actions
and programs, together with ever
evolving new initiatives. What is good for
the environment, is good for NHC – we
strive to do our share.
ALLOCATION OF INCOME IN THE
PARENT COMPANY
Norlandia Health & Care Group AS’ result
for 2022 ended at NOK 122.0 million. The
Board of Directors has proposed the net
profit of Norlandia Health & Care Group
AS to be allocated as follows: NOK 122.0
million to other equity.
INSURANCE FOR BOARD MEMBERS AND
GENERAL MANAGER
The Group has insurance for members of
the Board of Directors, CEO and
managers for subsidiaries for liability
incurred from the Group or any third
party related to responsible actions or
neglect in their role as board members or
executive management of the Grou p. The
coverage is limited to NOK 100 million.
Oslo, 19 April 2023
Board of Directors of Norlandia Health & Care Group AS
Kristian A. Adolfsen
Chairman of the Board
Roger Adolfsen
Member of the Board
Ingvild Myhre
Member of the Board
Yngvar Tov Herbjørnssønn
CEO
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NORLANDIA HEALTH & CARE GROUP AS
Norlandia Health & Care Group AS’
consolidated financial statements have
been prepared and presented in
accordance with IFRSs and IFRICs as
adopted by the EU and additional
disclosure requirements in the Norwegian
Accounting Act, that should be used as of
31.12.2022.
The separate financial statements for
Norlandia Health & Care Group AS have
been prepared in accordance with the
Norwegian Accounting Act and Norwegian
accounting standards as of 31.12.2022.
The Board of Directors report for the
group and the parent company is in
accordance with the requirements of the
Norwegian Accounting Act and Norwegian
accounting standard, as of 31.12.2022.
To the best of our knowledge:
●
The consolidated and separate annual
financial statements for 2022 have
been prepared in accordance with
applicable accounting standards.
●
The consolidated and separate annual
financial statements give a true and fair
view of the assets, liabilities, financial
position, and result of operations as a
whole as of 31.12.2022, for the Group
and the Parent company.
The Board of Directors’ report for the
Group and the Parent company include a
true and fair review of:
●
The development and performance of
the business and the position of the
Group and the Parent company.
●
The principal risks and uncertainties
the Group and the Parent company
face.
Oslo, 19 April 2023
Board of Directors of Norlandia Health & Care Group AS
Kristian A. Adolfsen
Chairman of the Board
Roger Adolfsen
Member of the Board
Ingvild Myhre
Member of the Board
Yngvar Tov Herbjørnssønn
CEO
Statement from the Board of Directors
ANNUAL REPORT 2022
21
Consolidated Statement of Comprehensive Income
Norlandia Health & Care Group - for the year ended 31 December 2022
(NOK 1 000)
Note
2022
2021
Operating revenues
4
Other income
4,12,21
Total operating revenues and other income
Cost of goods and services sold
(353 244 )
(175 101 )
Personnel expenses
5
(4 985 897 )
(4 303 147 )
Depreciation, amortisation and impairment losses
8,9,12
(634 712 )
(554 212 )
Other operating expenses
5,4,12
(1 515 888 )
(704 637 )
Operating profit/(loss)
Finance income
6
Finance expense
6,12
(301 200 )
(236 561 )
Net foreign exchange gains/(losses)
6
Net financial items
(273 104 )
(189 016 )
Share of net income from associated companies
11,12
(1 216 )
Profit/(loss) before taxes
Income taxes
7
(35 266 )
(4 531 )
Net income
Other comprehensive income
Items that may be subsequently reclassified to profit or loss
Currency translation differences
(5 163 )
(27 139 )
Items that will not be subsequently reclassified to profit or loss
Remeasurements of defined benefit pension plans
19
(10 042 )
Income taxes related to defined benefit pension plans
16
(1 276 )
Total other comprehensive income, net of taxes
(12 996 )
(22 614 )
Total comprehensive income
Net income attributable to:
Equity holders of the parent company
Non-controlling interests
(3 326 )
Total comprehensive income attributable to:
Equity holders of the parent company
Non-controlling interests
(1 447 )
(4 473 )
22
NORLANDIA HEALTH & CARE GROUP AS
Consolidated Statement of Financial Position
Norlandia Health & Care Group - for the year ended 31 December 2022
ASSETS
(NOK 1 000)
Note
2022
2021
Non-current assets
Property, plant and equipment
8
Right-of-use assets
12
Goodwill
9
Intangible assets
9
Deferred tax asset
16
Investment in associated companies
11
Other investments
3
Other non-current receivables
13, 21
Total non-current assets
Current assets
Inventories
Trade receivables
13, 21
Other current receivables
13, 21
Cash and cash equivalents
22
Total current assets
Total assets
ANNUAL REPORT 2022
23
Consolidated Statement of Financial Position
Norlandia Health & Care Group - for the year ended 31 December 2022
EQUITY AND LIABILITIES
(NOK 1 000)
Note
2022
2021
Equity
Share capital
14
Other equity
Total equity attributable to owners of the parent
Non-controlling interest
Total equity
Liabilities
Pension liabilities
19
Borrowings
15, 23
Lease liabilities
12
Deferred tax liabilities
16
Other non-current liabilities
Total non-current liabilities
Trade payables
17
Borrowings
15, 23
Lease liabilities
12
Taxes payable
16
Other current liabilities
17
Total current liabilities
Total liabilities
Total equity and liabilities
Oslo, 19 April 2023
Board of Directors of
Kristian A. Adolfsen
Chairman of the Board
Roger Adolfsen
Member of the Board
Ingvild Myhre
Member of the Board
Yngvar Tov Herbjørnssønn
CEO
24
NORLANDIA HEALTH & CARE GROUP AS
Consolidated Statement of Changes in Equity
Norlandia Health & Care Group - for the year ended 31 December 2022
Attributable to equity holders of the parent
(NOK 1 000)
Share
capital
Share
premium
Retained
earnings
Translation
differences
Total equity
to holders of
the parent
Non-
controlling
interests
Total equity
Equity as of 1 January 2021
(69 013 )
Net income
(3 326 )
Other comprehensive income
(25 992 )
(21 466 )
(1 147 )
(22 614 )
Total comprehensive income
(25 992 )
(4 473 )
Contributions by and distributions to owners
Capital increase (note 15 and 20)
(17 699 )
Distribution to non-controlling interests
(2 224 )
(2 224 )
Equity 31 December 2021
(35 170 )
Equity 1 January 2022
(35 170 )
Net income
Other comprehensive Income
(7 832 )
(3 576 )
(11 408 )
(1 587 )
(12 996 )
Total comprehensive Income
(3 576 )
(1 447 )
Contributions by and distributions to owners
Group contribution to owner
(20 000 )
(20 000 )
(20 000 )
Distribution to non-controlling interests
(213 )
(213 )
Transactions with non-controlling interests
(9 106 )
(7 130 )
Equity 31 December 2022
ANNUAL REPORT 2022
25
Consolidated Statement of Cash Flow
Norlandia Health & Care Group - for the year ended 31 December 2022
(NOK 1 000)
Note
2022
2021
Cash flows from operating activities
Profit/(loss) before taxes
Adjustments for:
Depreciation and amortisation
8, 9,12
Share of net income from associated companies
11
(1 266 )
Gain/(loss) on sale of real estate and business
(32 276 )
(33 994 )
Net financial items
Changes in working capital
Increase/(decrease) in trade and other receivables
(201 993 )
(53 181 )
Increase/(decrease) in inventories
(2 987 )
Increase/(decrease) in trade and other payables
(33 793 )
Increase((decrease) in provisions and employee benefits
(47 812 )
Cash generated from operations
Income taxes paid
(27 342 )
(13 524 )
Net cash flows from operating activities
Investing activities
Proceeds from sale of assets
Purchases of property, plant and equipment
8
(196 509 )
(136 527 )
Net investment in shares in associates and other investments
11, 20
(17 171 )
Net investment in shares in subsidiaries
20
(69 166 )
(126 130 )
Net changes in financial receivables
6
(102 )
(5 294 )
Interest received
Net cash used in investing activities
(98 781 )
Financing activities
Repayments of non-current borrowings to finance institutions
15, 23,18
(69 281 )
Repayments of current borrowings to finance institutions
15,18
(27 180 )
(7 763 )
Proceeds from non-current borrowings from finance institutions
15,18
Interest paid
6
(285 260 )
(225 911 )
Repayment of lease liabilities
(491 307 )
(414 701 )
Payment to non-controlling interests
(7 130 )
(2 189 )
Distribution to non-controlling interests
(213 )
Distribution to owners
(20 000 )
Net cash (used in)/from financing activities
(882 852 )
(631 116 )
Net increase in cash and cash equivalents
(25 384 )
Cash and cash equivalents at beginning of year
22
Exchange (losses)/gains on cash and cash equivalents
(4 082 )
(3 006 )
Cash and cash equivalents at end of year
26
NORLANDIA HEALTH & CARE GROUP AS
Notes to the consolidated statements
1. CORPORATE INFORMATION AND ACCOUNTING POLICIES
1.1 Corporate information
The consolidated financial statements of Norlandia Health & Care Group (the Group) consist of Norlandia Health & Care Group
its subsidiaries. Norlandia Health & Care Group AS is a multinational company headquartered in Oslo, Norway. The Group operates in
fields such as health care, preschools, integration services, individual and family services and real estate . The Group aspires to be the
welfare innovator and driver of positive change, and as such improve people’s lives through pioneering of new ideas and methods.
Norlandia Health & Care Group AS was established in December 2016. This was done by transferring the shares in Norlandia Care Group
AS, Hero Group AS, Aberia Healthcare AS and Kidsa Barnehager AS, from Hospitality Invest to a newly incorporated and 100% owned
subsidiary. The Group is owned by Hospitality Invest AS, Stork Industries AS and Cowry EV AS with Hospitality Invest AS being the
majority owner as well as the ultimate parent company registered and domiciled in Oslo, Norway.
The consolidated financial statements of Norlandia Health & Care Group AS were authorised for issue in accordance with the Board of
Directors’ resolution on 19 April 2023 and can be downloaded from Norlandia Health & Care Groups’ website
1.2 Significant accounting policies
Basis of preparation
The consolidated financial statements of Norlandia Health & Care Group AS and its subsidiaries have been prepared in accordance with
International Financial Reporting Standards, International Accounting Standards and Interpretations (collectively IFRSs) issued by the
International Accounting Standards Board (IASB) as adopted by the European Union (“adopted IFRSs”) and the additional Norwegian
disclosure requirements following the Norwegian Accounting Act.
The principal accounting policies adopted in the preparation of the financial statements are set out below. The policies have been
consistently applied to all the years presented, unless otherwise stated.
The consolidated financial statements have been prepared under the historical cost convention, as modified by valuing financial
derivative instruments at fair value through profit or loss.
The preparation of financial statements in compliance with adopted IFRS requires the use of certain critical accounting estimates. It
also requires Group management to exercise judgment in applying the Group’s accounting policies. The areas where significant
judgements and estimates have been made in preparing the financial statements and their effect are disclosed in note 2.
The Group has prepared the financial statements on the basis that it will continue to operate as a going concern.
New standards, interpretations, and amendments
There are no changes in, or new accounting standards that have had a material effect for the Group´s financial statements for 2022.
Applied principles for the Group
ANNUAL REPORT 2022
27
Basis of consolidation
Where the company controls another entity, it is classified as a subsidiary. The consolidated financial statements present the results of
the company and its subsidiaries (“the Group”) as if they formed a single entity. Intercompany transactions and balances between
group companies are therefore eliminated in full.
The consolidated financial statements incorporate the results of business combinations using the purchase method. In the statement
of financial position, the acquiree’s identifiable assets, liabilities and contingent liabilities are initially recognised at their fair values at
the acquisition date. The results of acquired operations are included in the consolidated statement of comprehensive income from the
date on which control is obtained. They are deconsolidated from the date control ceases.
Non-controlling interests
The Group initially recognise any non-controlling interest in the acquiree at fair value.
Investment in associates
This is generally the case where the Group holds between 20% and 50% of the voting rights. Investment in associated are accounted
for using the equity method of accounting, after initially being recognised at cost. Under the equity method of accounting, the
investments are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post-acquisition profits or
losses of the investee in profit or loss, and the Group’s share of movements in other comprehensive income of the investee in other
comprehensive income. Goodwill relating to the associate is included in the carrying amount of the investment and is not tested for
impairment individually. If the Group’s share of the loss surpasses the carrying amount of the associate, the carrying amount is set to
zero and further loss is not recognised unless the Group has an obligation to make up for the loss.
Classification principles
Cash and cash equivalents include cash in hand, deposits held at call with banks and other short term highly liquid investments with
original maturities of three months or less. The Group’s cash pool system is offset, with cash and overdrafts within the same cash pool
system presented net.
Other assets which are expected to be realised within the entity’s normal operating cycle or within 12 months from the reporting date,
are classified as current assets. Other assets are classified as non-current assets.
Liabilities that are expected to be settled in the entity’s normal operating cycle or are due to be settled within 12 months after the
balance sheet date are classified as current liabilities. Other liabilities where the Group has an unconditional right to defer settlement
for at least 12 months after the reporting period are classified as non-current liabilities.
Revenue recognition
Revenue from contracts with customers is recognised when control of the goods or services is transferred to the customer at an amount
which reflects the consideration which the Group expects to be entitled to in exchange for those goods or services. The Group has
generally concluded that it is the principal in its revenue arrangements, because it typically controls the goods or services before
transferring them to the customer.
The Group’s revenue from contracts with customers mainly comprise of services delivered. The Group also has some sales of goods,
primarily food in preschools and in cantinas, which are immaterial to the total revenues and recognised as the food is served and is not
disaggregated. As described below, the Group has multiple revenue streams in accordance with the segment it operates in, and has
assessed the following performance obligations to exist for the contract with customers:
This is the operation of kindergartens and accounts for almost half of the revenue. The operation is based on municipal approval of the
individual kindergarten where the company's revenue consists of payment from the municipalities and payment from parents. Most
of the payments are from the municipalities. Both are based on regulations where rates are updated annually. The transaction price is
based on an amount per child within different age groups and is based on periodically counts of the actual number of children attending
the respective kindergarten. The parents apply and choose kindergarten. Parents may change kindergarten at short notice, in which
way parental payments stop. Payments from municipalities can be changed in the event of major changes in activity during the year.
28
NORLANDIA HEALTH & CARE GROUP AS
What is promised to the customer is a kindergarten offer in accordance with applicable laws and regulations and adopted frameworks.
The customer receives and consumes the benefits of the services as the kindergarten fulfils the performance obligation. The
performance obligation is the promise to transfer to the customer a series of distinct services that are substantially the same and that
have the same pattern of transfer to the customer. The revenue is recognised per day the kindergarten is open. Any adjustment in the
number of children is a variable consideration that is allocated to the month in question. For the Norwegian operations, the payments
are mainly received in advance in the beginning of the quarter four times each year, which also implies that there are no contract
balances of significance at year-end. For the other countries payments is received every month. Parental payments take place every
month.
Care
This is the operation of nursing homes and patient hotels, as well as the provision of home care services and other practical assistance.
The contracts related to the operation of nursing homes and patient hotel have a duration of 5-7 years. For the home care services,
the contract duration is 3-5 years.
For the operation of nursing homes in Norway, fixed monthly payments are received based on the number of places for which the
nursing home is dimensioned, regardless of whether the places are in use or not. In Sweden the revenue varies per month due to the
occupancy and number of days in the actual month. There are different types of places; short-term and dementia. For patient hotels,
consideration is received based on actual occupancy, while for home care the consideration is determined based on the actual number
of hours delivered. There is no minimum purchase beyond the agreed fixed monthly operating subsidy for nursing homes.
The performance obligation to the customer is to provide the respective services within the framework and guidelines set by the
municipality as the client and central health authorities. The agreement is met through the 24/7 operation of nursing homes and patient
hotels, as well as through delivery of the number of hours actually requested by users within the framework agreements related to the
home care services. The customer receives and consumes the benefits of the services as the company satisfies the performance
obligations.
For nursing homes, the company stands ready every day to deliver according to the agreed capacity. Although the actual number of
seats used may vary slightly from day to day, a place does not stand empty for long, and it is considered that the legal requirement is
met for each day that passes and revenue is recognised straight-line over the year.
For patient hotels and home care, there is no minimum purchase and no firm consideration. Everything is variable and the consideration
can be attributed to the actual booking and the number of hours, which is also when the performance obligations are satisfied and
revenue is recognised. In practice, for patient hotels and home care, revenue is recognised at an amount equal to the transaction price
we are entitled to invoice (IFRS 15.B16). Invoicing takes place in arrears for the current month, which means that there are no contract
balances of significance at year-end.
Integration services
This is the operation of asylum reception, performance of interpreting services and language teaching. The duration of the contracts
related to the operation of asylum reception is mainly 3 years. Interpreting services are mainly performed based on orders for individual
assignments. For language teaching, access per course/course group is granted. Each course normally has a duration of one year.
For the operation of asylum reception, regular annual payment is received, and a variable part is paid based on the actual number of
residents. The consideration for interpreting service is based on either fixed hourly rate or price per word when translating document.
For language teaching, a fee per course is received. What is promised to the customer is to operate the asylum centers in accordance
with the current guidelines of the public authorities, the provision of interpreting services, as well as the implementation of training
activities. The performance obligations are satisfied through the 24-hour operation of asylum reception, through the provision of
interpretive services based on actual demand and implementation of the course activities stipulated in the respective tenders .
The customer receives and consumes the benefits of the services as the company satisfies the performance obligations.
For asylum centers, the company stands ready to deliver 24 hours of services each day, against fixed consideration. We are in a serial
assessment where every day is distinct, and the fixed consideration is recognised each day on a straight-line basis. In addition, there
are variable considerations related to actual use. The variable consideration is allocated to the actual use.
For the interpreting service there are small orders delivered over a short period. The interpreting service is recognised according to the
hours performed or the number of words executed. In practice, revenue is recognised by an amount equal to the transaction price we
are entitled to invoice (IFRS 15.B16). Consideration for courses is recognised as the courses are held. Courses make up an insignificant
part of revenue, and in practice the courses are assumed to be held evenly over the agreed period and are recognized accordingly. For
ANNUAL REPORT 2022
29
the operation of the asylum centres, invoicing is mainly for the current month. For interpreting service, the billing takes place within
30 days after delivery. Generally , when it comes to language teaching, 80% of the consideration is received at the start of the course.
However, as it accounts for a small share of the Group's total activities, this does not provide any contract balances of significance at
year-end.
Individual & Family
This is mainly the operation of childcare and child welfare services, including services associated with user-led personal assistance
(BPA). Framework agreements for these services may run over several years. The user may choose a care place and have the option to
change the selection after a period, a maximum of one year. There are framework agreements where the customer makes call-offs,
and payment takes place according to actual use. There are minimum purchases in some agreements, mainly in child protection.
For the operation of care, the price is agreed per day/weekend/day for the number of places that are actually used. For child welfare
services, it is agreed on a minimum purchase and a number of additional places to be available without purchase obligation. The price
is agreed per place per day and varies depending on whether the space is within the minimum purchase or not and whether this space
is actually used or not. For BPA, the framework agreement is entered into based on the number of hours granted by the municipality,
where the consideration consists in price per hour actually delivered.
What is promised to the customer is to operate the service offering in accordance with applicable law and regulations. The performance
obligation is satisfied through the 24-hour operation of care, as well as child welfare institutions. For BPA, the promise is satisfied
through the delivery of actual requested hours. The customer receives and consumes the benefits as the company satisfies the
performance obligation. For all services within the segment, the company stands ready to provide requested places or services every
day, against variable consideration. We are in a serial assessment where every day is distinct and the variable consideration is allocated
to the actual use. Where there is a minimum purchase, a consideration for the relevant 24/7 will be received at the relevant rates for
the used and not used seats, and these are directly related to standing ready to deliver the relevant 24/7. In practice, the revenue is
recognised by an amount equal to the amount we are entitled to invoice (IFRS 15.B16). Billing takes place both in advance and in arrears
for the current month depending on the type of service, which implies that there are no contract balances of significance at year-end.
Dividend
Dividend income is recognized in the income statement on the date that the Group’s right to receive payment is established.
Intangible assets
Goodwill
Goodwill represents the excess of the cost of a business combination over, the Group’s interest in the fair value of identifiable assets,
liabilities and contingent liabilities acquired and, the total acquisition date fair value of the identifiable assets, liabilities and contingent
liabilities acquired.
The cost of a business combination comprises the fair value of assets given, liabilities assumed, and equity instruments issued, plus the
amount of any non-controlling interests in the acquiree plus, if the business combination is achieved in stages, the fair value of the
existing equity interest in the acquiree.
Contingent consideration is included in cost at its acquisition date fair value and, in the case of contingent consideration classified as a
financial liability, remeasured subsequently through profit or loss. Direct costs of acquisition are recognised immediately as an expense.
Goodwill is capitalised as an intangible asset with any impairment in carrying value being charged to the consolidated statement of
comprehensive income. Where the fair value of identifiable assets, liabilities and contingent liabilities exceed the fair value of
consideration paid, the excess is credited in full to the consolidated statement of comprehensive income on the acquisition date.
Trademarks and customer contracts
Separately acquired trademarks and customer contracts are recognised at historical cost. Trademarks and customer contracts acquired
in a business combination are recognised at fair value at the acquisition date. The trademarks recognised in the statement of financial
position is assessed to have an indefinite useful life and is therefore tested annually for impairment. The customer contracts are
assessed to have a finite useful life and are subsequently carried at cost less accumulated amortization and impairments losses.
30
NORLANDIA HEALTH & CARE GROUP AS
Externally acquired intangible assets
Externally acquired intangible assets are initially recognised at cost and subsequently amortised on a straight-line basis over their useful
lives, except for trademarks which have an indefinite lifetime.
Intangible assets are recognised on business combinations if they are separable from the acquired entity or give rise to other
contractual/legal rights. The amounts ascribed to such intangibles are arrived at by using appropriate valuation techniques (see section
related to critical estimates and judgements below).
Impairment of non-financial assets (excluding inventories and deferred tax assets)
Impairment tests on goodwill and other intangible assets with indefinite useful economic lives are undertaken annually at the financial
year end. Other non-financial assets are subject to impairment tests whenever events or changes in circumstances indicate that their
carrying amount may not be recoverable. Where the carrying value of an asset exceeds its recoverable amount (i.e., the higher of value
in use and fair value less costs to sell), the asset is written down accordingly.
Where it is not possible to estimate the recoverable amount of an individual asset, the impairment test is carried out on the smallest
Group of assets to which it belongs for which there are separately identifiable cash flows; its cash generating units (‘CGUs’). Goodwill
is allocated on initial recognition to each of the Group’s CGUs that are expected to benefit from the synergies of the combination giving
rise to the goodwill. Impairment charges are included in the income statement. An impairment loss recognised for goodwill is not
reversed.
Segment reporting
Reporting segments are defined and reported according to the Group’s internal reporting structure, where similar operating segments
have been aggregated into single operating segment as they have similar economic characteristics. For instance, the reporting segment
Preschools are aggregated to all the countries in which the Group operates as they all are followed up on the same basis. The Company’s
ultimate decision maker is the Board of Directors, including the CEO. The Board is responsible for allocating resources to each segment
as well as monitor the performance within each segment. The principles used in the segment reporting is consistent with the principles
used when preparing the financial statements. Transactions between segments are conducted on market terms.
Foreign currency
Functional and presentation currency
Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic
environment in which the entity operates (the “functional currency”).
The consolidated financial statements are presented in NOK, which is also the functional currency of the parent company.
All values are rounded to the nearest thousands, except where otherwise indicated. Applied currency rate for translation into
Norwegian Kroner in the financial statements are retrieved from Norges Bank. The income statement is translated by average currency
rates for the year based on weighted daily rates, while the statement of financial position is translated at the exchange rate at the
reporting date.
Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency rate at the date of the transaction. Foreign exchange
gains and losses resulting from the settlement of such transactions and from the translation at year-end exchange rate of monetary
assets and liabilities denominated in foreign currencies are recognised as financial items in the income statement.
Financial assets
The Group classifies its financial assets into one of the categories discussed below, depending on the purpose for which the asset was
acquired. The Group has not designated any of its financial assets as hedging instruments or held to maturity.
The Group’s accounting policy for each category of financial assets is as follows:
a)
Fair value through profit or loss
This category comprises only in-the-money derivatives (see “Financial liabilities” section for out-of-money derivatives). They are carried
in the statement of financial position at fair value with changes in fair value recognised in the consolidated statement of comprehensive
income in the finance income or expense line.
ANNUAL REPORT 2022
31
b)
Financial assets at amortised cost
These assets are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market. They
arise principally through the provision of goods and services to customers (e.g., trade receivables), but also incorporate other types of
contractual monetary asset. They are initially recognised at fair value and are subsequently carried at amortised cost using the effective
interest rate method, less provision for impairment.
The group applies the IFRS 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for
all financial assets at amortised cost. For trade receivables, which are reported net, such provisions are recorded in a separate
allowance account with the loss being recognised within administrative expenses in the consolidated statement of comprehensive
income. On confirmation that the trade receivable will not be collectable, the gross carrying value of the asset is written off against the
associated provision.
The Group’s Financial assets at amortised comprise trade and other receivables and cash and cash equivalents in the consolidated
statement of financial position.
Cash and cash equivalents include cash in hand, deposits held at call with banks, other short term highly liquid investments with original
maturities of three months or less. Bank overdrafts are shown within loans and borrowings in current liabilities on the consolidated
statement of financial position.
Financial liabilities
The Group classifies its financial liabilities into one of two categories, depending on the purpose for which the liability was acquired.
None of the Group’s financial liabilities are designated as hedging instruments.
Other than financial liabilities in a qualifying hedging relationship (see below), the Group’s accounting policy for each category is as
follows:
a)
Fair value through profit or loss
This category comprises derivatives. They are carried in the consolidated statement of financial position at fair value with changes in
fair value recognised in the consolidated statement of comprehensive income. The Group does not hold or issue derivative instruments
for speculative purposes but may from time to time hold such position for hedging purposes. Other than these derivative financial
instruments, the Group does not have any liabilities held for trading nor has it designated any financial liabilities as being at fair value
through profit or loss.
b)
Amortised cost
Borrowings are initially recognised at fair value net of any transaction costs directly attributable to the issue of the instrument. Such
interest-bearing liabilities are subsequently measured at amortised cost using the effective interest rate method, which ensures that
any interest expense over the period to repayment is at a constant rate on the balance of the liability carried in the consolidated
statement of financial position. Interest expense in this context includes initial transaction costs and premium payable on redemption,
as well as any interest or coupon payable while the liability is outstanding.
Trade payables and other short-term monetary liabilities, which are initially recognised at fair value and subsequently carried at
amortised cost using the effective interest method.
IFRS 13 fair value measurement hierarchy
IFRS 13 requires certain disclosures which require the classification of financial assets and financial liabilities measured at fair value
using a fair value hierarchy that reflects the significance of the inputs used in making the fair value measurement. The fair value
hierarchy has the following levels:
●
quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1);
●
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(i.e. as prices) or indirectly (i.e., derived from prices) (Level 2); and
●
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3).
The level in the fair value hierarchy within which the financial asset or financial liability is categorised is determined on the basis of the
lowest level input that is significant to the fair value measurement. Financial assets and financial liabilities are classified in their entirety
into only one of the three levels.
32
NORLANDIA HEALTH & CARE GROUP AS
Share capital
Financial instruments issued by the Group are classified as equity only to the extent that they do not meet the definition of a financial
liability or financial asset.
The Group’s ordinary shares are classified as equity instruments.
Retirement benefits: Defined contribution schemes
Contributions to defined contribution pension schemes are charged to the consolidated statement of comprehensive income in the
year to which they relate.
Retirement benefits: Defined benefit schemes
Defined benefit scheme surpluses and deficits are measured at: “the fair value of plan assets at the reporting date; less plan liabilities
calculated using the projected unit credit method discounted to its present value using yields available on high quality corporate bonds
that have maturity dates approximating to the terms of the liabilities.
Actuarial gains and losses are recognized in other comprehensive income as they arise.
Current and deferred income taxes
Income tax expense comprises income taxes payable and deferred income tax. Tax is recognised in the income statement, except to
the extent that it relates to items recognised in other comprehensive income or directly in equity. In such case, the tax is also recognised
in other comprehensive income or directly in equity respectively. Current tax is calculated in accordance with the tax laws and
regulations enacted or substantively enacted at the balance sheet date in the countries in which the Group’s subsidiaries and associates
operate and generate taxable income. Management periodically evaluates positions taken in tax returns with respect to situations in
which applicable tax laws are subject to interpretation. Based on management’s assessment, a provision is made for expected tax
payments when necessary.
Recognition of deferred tax assets is restricted to those instances where it is probable that taxable profit will be available against which
the difference can be utilised.
The amount of the asset or liability is determined using tax rates that have been enacted or substantively enacted by the reporting
date and are expected to apply when the deferred tax liabilities/(assets) are settled/(recovered).
Deferred tax assets and liabilities are offset when the Group has a legally enforceable right to offset current tax assets and liabilities
and the deferred tax assets and liabilities relate to taxes levied by the same tax authority on either:
●
the same taxable group company; or
●
different group entities which intend either to settle current tax assets and liabilities on a net basis, or to realise the
assets and settle the liabilities simultaneously, in each future period in which significant amounts of deferred tax
assets or liabilities are expected to be settled or recovered.
Dividends and group contributions
Proposed dividend and group contributions are not recognised as a liability until the Group has an irrevocable obligation to pay the
dividend, which is normally after approval by the annual general assembly
.
Property, plant and equipment
Items of property, plant and equipment are initially recognised at cost. As well as the purchase price, cost includes directly attributable
costs and the estimated present value of any future unavoidable costs of dismantling and removing items. The corresponding liability
is recognised within provisions.
Freehold land is not depreciated. Depreciation on assets under construction does not commence until they are complete and available
for use. Depreciation is provided on all other items of property, plant and equipment so as to write off their carrying value over their
expected useful economic lives. Expected useful economic is as follows:
Land and buildings 10-40 years
Furniture, fixtures and equipment 3-30 years
ANNUAL REPORT 2022
33
Inventories
Inventories are initially recognised at cost, and subsequently at the lower of cost and net realisable value. Cost comprises all costs of
purchase, costs of conversion and other costs incurred in bringing the inventories to their present location and condition. Weighted
average cost is used to determine the cost of ordinarily interchangeable items.
Provisions
The Group has recognised provisions for liabilities of uncertain timing or amount including those for warranty claims, leasehold
dilapidations, and legal disputes. The provision is measured at the best estimate of the expenditure required to settle the obligation at
the reporting date, discounted at a pre-tax rate, value of money and risks specific to the liability. In the case of a breach in the leasehold
agreement, the provision takes into account the potential that the properties in question may be sublet for some or all of the remaining
lease term.
Leases
The Group as a lessee
The Group leases most of its preschools, offices, nursing homes, houses, and hotels, which represent future obligations for the Group.
Alle material lease agreements are recognised in the statement of financial position as an interest -bearing debt. This also requires
recognition of the corresponding asset as a right-of-use asset.
At inception of a contract, the Group assesses whether a contract is, or contains, a lease. A contract is, or contains, a lease of the
contract conveys the right to control the use of an identified asset for a period of time in exchange for consideration.
At the lease commencement date, the Group recognises a lease liability and corre sponding right-of-use asset for all lease agreements
in which it is the lessee, except for the following exemptions applied:
●
Short-term leases (defined as 12 months or less)
●
Low value assets
For these leases, the Group recognises the lease payments as other operating expenses in the income statement when they incur.
The Group implemented IFRS 16 using the modified retrospective approach without restating comparative information. Hence, at initial
application 1 January 2019, the Group recognised a significant lease liability and corresponding right-of-use asset, while the equity
remained unchanged.
Lease liabilities
The lease liability is recognised at the commencement date of the lease. The Group measures the lease liability at the present value of
the lease payments for the right to use the underlying asset during the lease term that are not paid at the commencement date. The
lease term represents the non-cancellable period of the lease, together with periods covered by an option either to extend or to
terminate the lease when the Group is reasonably certain to exercise this option. Many of the Group’s lease contracts includes an
option to prolong the lease. The Group has not included any such prolonging due to the uncertainty related to the long remaining lease.
The Group presents its lease liabilities as separate line items in the statement of financial position.
Right-of-use assets
The Group measures the right-of use asset at cost, less any accumulated depreciation and impairment losses, adjusted for any
remeasurement of lease liabilities.
Sale and leaseback transactions
When the Group has sale and leaseback transactions, it is assessed as a sale transaction, which requires that the seller-lessee shall
measure the right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that related
to the right of the use retained by the seller-lessee. Accordingly, the seller-lessee shall recognise only the amount of any gain or loss
that relates to the rights transferred to the buyer-lessor.
Transactions with related parties
34
NORLANDIA HEALTH & CARE GROUP AS
Transactions with related parties are carried out with terms and conditions that are no more favourable than those available, or which
might reasonably be expected to be available, in similar transactions between independent parties. Related parties are defined as the
key management personnel for the Group, shareholders, and associates
.
Cash flow statement
separately. Interest income and interest expenses are presented as part of investing and financing activities, respectively.
2. CRITICAL ACCOUNTING ESTIMATES AND JUDGEMENTS
The Group makes certain estimates and assumptions regarding the future. Estimates and judgements are continually evaluated
based on historical experience and other factors, including expectations of future events that are believed to be reasonable under
the circumstances. In the future, actual experience may differ from these estimates and assumptions. The estimates and assumptions
that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial
year are discussed below.
Judgements and estimates
(a)
Impairment of goodwill
The Group is required to test, on an annual basis, whether goodwill has suffered any impairment. The recoverable amount is
determined based on value in use calculations. The use of this method requires the estimation of future cash flows and the choice of
a discount rate in order to calculate the present value of the cash flows. More information including carrying values is included in
note 10. Any significant modification of market conditions could translate into an inability to recover the carrying amounts of non-
financial assets; and result in an impairment charge in the income statement.
(b)
Useful lives of property, plant and equipment and intangible assets
Measurement of property, plant and equipment and intangible assets with finite useful lives requires estimates for determining the
asset’s expected useful lives and residual values. Management judgement is required to determine the components and the
depreciation.
(c)
Right-of-use-assets (ROU) and lease liability
Recognition of both ROU and lease liability require judgement and estimation for the length of the lease term, discount rate and the
expected useful life.
(d)
Deferred tax
Deferred tax assets are recognized when it is considered probable that deductible temporary differences will be recovered in the
foreseeable future. To the extent that future taxable income and the application of existing tax laws in each jurisdiction differ
significantly from the Group’s estimate, the ability of the Group to realize the deferred tax assets could be impacted.
Such judgements and estimates are based on the facts and information available to the management of the Group. Changes in facts
and circumstances may require the revision of previous estimates, and actual results could differ from these estimates.
ANNUAL REPORT 2022
35
3. FINANCIAL INSTRUMENTS - RISK MANAGEMENT
The Group is exposed through its operations to the following financial risks:
●
Credit risk
●
Fair value or cash flow interest rate risk
●
Foreign exchange risk
●
Other market price risk
●
Liquidity risk
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments. This note describes
the Group’s objectives, policies, and processes for managing those risks and the methods used to measure them. Further quantitative
information in respect of these risks is presented throughout these financial statements.
There have been no substantive changes in the Group’s exposure to financial instrument risks, its objectives, policies and processes for
managing those risks or the methods used to measure them from previous periods unless otherwise stated in this note.
Principal financial instruments
The principal financial instruments used by the Group, from which financial instrument risk arises, are as follows:
●
Trade receivables
●
Cash and cash equivalents
●
Trade and other payables
●
Bank overdrafts
●
Floating-rate bank loans
●
Interest rate swaps
●
Cross currency interest rate swaps
A summary of the financial instruments held by category is provided below:
Financial assets
Financial assets at fair value
through profit or loss
Financial assets at
amortised cost
(NOK 1 000)
2022
2021
2022
2021
Cash and cash equivalents
-
-
271 721
301 186
Trade receivables
-
-
417 364
284 421
Other current receivables (note 13)
-
-
229 127
69 966
Other non-current receivables
-
-
40 482
41 600
Other investments
25 403
12 211
-
-
Total financial assets
25 403
12 211
958 694
697 173
Financial liabilities
Financial liabilities at fair value
through profit or loss
Financial liabilities
at amortised cost
(NOK 1 000)
2022
2021
2022
2021
Trade and other current payables
-
-
1 254 160
930 057
Borrowings
-
-
2 186 998
2 173 692
Lease liabilities
-
-
5 527 482
4 466 806
Total financial liabilities
-
-
8 968 640
7 570 556
General objectives, policies and processes
The Board has overall responsibility for the determination of the Group’s risk management objectives and policies and, whilst retaining
ultimate responsibility for them, it has delegated the authority for designing and operating processes that ensure the effective
implementation of the objectives and policies to the Group’s finance function.
The overall objective of the Board is to set policies that seek to reduce risk as far as possible without unduly affecting the Group’s
competitiveness and flexibility. Further details regarding these policies are set out below:
36
NORLANDIA HEALTH & CARE GROUP AS
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. The Group is mainly exposed to credit risk from credit sales. It is Group policy, implemented locally, to assess the credit
risk of new customers before entering contracts. Such credit ratings are taken into account by local business practices.
Most of the Group’s revenues are from (public) authorities. Credit risk related to these customers are minimal.
Credit risk also arises from cash and cash equivalents and deposits with banks and financial institutions. For banks and financial
institutions, only independently rated parties with minimum rating “A” are accepted.
Further disclosures regarding trade and other receivables are provided in note 13.
Market risk
The regulatory framework has a significant influence for the Group and our ability to deliver services with high quality. Political risk is
therefore present as major shifts may have a significant impact on the way we deliver our services.
Fair value and cash flow interest rate risk
The Group is exposed to cash flow interest rate risk from long-term borrowings at variable rate. The Group has currently no Group
policy restricting the level of interest risk exposure. The level of interest risk is monitored centrally. Local operations are not permitted
to borrow long-term from external sources. Although the board accepts that this policy neither protects the Group entirely from the
risk of paying rates in excess of current market rates nor eliminates fully cash flow risk associated with variability in interest payments,
it considers that it achieves an appropriate balance of exposure to these risks.
During 2022 and 2021, the Group’s borrowings at variable interest rate were denominated in NOK and SEK.
Based on the various scenarios the Group has the possibility to manage its cash-flow interest rate risk by using floating-to-fixed interest
rate swaps. The Group has not pursued an active strategy in order to mitigate any interest rate risk. Normally the Group has raised
long-term borrowings at floating rates and only to a minor extent swapped them into fixed.
The ratio of floating interest -bearing debt and interest rate swaps was as follows:
(NOK 1 000)
2022
2021
Floating interest bearing borrowings
2 186 998
2 173 692
Face value interest rate swaps
-
-
Ratio
0,0 %
0,0 %
Net exposure interest rate risk
2 186 998
2 173 692
Sensitivity
A change in the interest rate curve will result in a changed interest cost for the net exposure will have a significant impact on the Group
financial statements. The effect on interest payments for a 0.5% change is presented below.
(NOK 1 000)
Interest
expense
Effect on
P&L
Effect on Equity
Effect of a 0.5% increase
10 935
8 529
8 529
Effect of a 0.5% decrease
(10 935)
(8 529)
(8 529)
Foreign exchange risk
The Group has operations in Norway, Sweden, Finland, Netherland and Poland. Currency fluctuations may have a negative effect on
the Group’s financial conditions and results of operations. The Group is predominantly exposed to the SEK/NOK exchange rate as
around 37% of revenues are generated in SEK. However, the Group has a corresponding share of costs in SEK and about 44% of its bond
is denominated in SEK, both representing natural hedges to the operations. The Group has a small but growing exposure to the
EUR/NOK exchange rate as operations in the Netherlands and Finland are growing (note 4), however this represents a natural hedge
to the growing investments. The Group is monitoring the exposure and will consider hedging this exposure in the future. The effect
from the bond issued if the NOK/SEK currency change is presented below.
ANNUAL REPORT 2022
37
(NOK 1 000)
Currency effect
Effect on
P&L
Effect on Equity
Effect of SEK weakens of 1.0% toward NOK
7 500
5 850
5 850
Effect of SEK strenghten of 1.0% toward NOK
(7 500)
(5 850)
(5 850)
Other market price risk
There is no other significant marked risk exposure on financial instruments.
Liquidity risk
Liquidity risk arises from the Group’s management of working capital and the finance charges and principal repayments on its debt
instruments. It is the risk that the Group will encounter difficulty in meeting its financial obligations as they fall due.
The Group’s policy is to ensure that it will always have sufficient cash to allow it to meet its liabilities when they become due. The Board
receives rolling 12-month cash flow projections on a monthly basis as well as information regarding cash balances. At the end of the
financial year, these projections indicated that the Group expected to have sufficient liquid resources to meet its obligations.
The liquidity risk of each Group entity is managed centrally by the Group treasury function. A major focus for the treasury function is
to ensure that there is sufficient liquidity for downpayment on non-current borrowings when they are due. The Group treasury assesses
the terms for borrowings on a ongoing basis, when needed the necessary adjustments are put into place.
The following table sets out the contractual maturities of financial liabilities:
(NOK 1 000)
Between 1 and
12 months
Between 1 and
2 years
Between 2 and
3 years
Between 3 and
5 years
Over 5 years
At 31 December 2022
Trade and other current payables
1 254 160
-
-
-
-
Borrowings
170 584
154 545
1 857 040
218 433
287 008
Lease liabilities
687 528
589 177
589 177
1 178 355
3 526 325
Total
2 112 272
743 723
2 446 217
1 396 787
3 813 334
(NOK 1 000)
Between 1 and
12 months
Between 1 and
2 years
Between 2 and
3 years
Between 3 and
5 years
Over 5 years
At 31 December 2021
Trade and other current payables
930 057
-
-
-
-
Borrowings
175 972
136 573
136 573
2 079 021
147 298
Lease liabilities
543 256
468 496
468 496
936 991
2 924 561
Total
1 649 285
605 069
605 069
3 016 012
3 071 859
38
NORLANDIA HEALTH & CARE GROUP AS
Capital Disclosures
The Group monitors “adjusted capital” which comprises all components of equity (i.e., share capital, share premium,
non-controlling interest, retained earnings) and net interest-bearing debt. Adjusted EBITDA and adjusted capital is excluding the effects
from IFRS 16.
The Group’s objectives when maintaining capital are:
“to safeguard the entity’s ability to continue as a going concern, so that it can continue to provide returns for shareholders and benefits
for other stakeholders, and to provide an adequate return to shareholders by pricing products and services commensurately with the
level of risk.”
The Group sets the amount of capital it requires in proportion to risk. The Group manages its capital structure and makes adjustments
to it in the light of changes in economic conditions and the risk characteristics of the underlying assets. In order to maintain or adjust
the capital structure, the Group may adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new
shares, or sell assets to reduce debt.
Consistent with others in the industry, the Group monitors capital on the basis of the debt to capital ratio and debt to adjusted EBITDA.
Net debt is calculated as total borrowings (excluding lease liabilities) as shown in the consolidated statement of financial position, less
cash and cash equivalents. Adjusted EBITDA is the reported EBITDA adjusted for the effects from IFRS 16.
The Group’s strategy is to preserve a strong cash base and achieve an equity to total capital ratio of approximately 10% and maintain
net interest -bearing debt below 4x adjusted EBITDA. As per end of 2021 the net interest -bearing debt ratio was above target due to
acquisitions during 2021 and increased property portfolio. The objective of this strategy is to secure access to financing at reasonable
cost by maintaining a high credit rating. As per end of 2022 the ratio is below target. The ratios on 31 December 2022 and at 31
December 2021 were as follows:
(NOK 1 000)
2022
2021
Borrowings, includning real estate debt
2 186 998
2 173 692
Less: cash and cash equivalents
271 721
301 186
Net interest bearing debt excl lease liabilities
1 915 277
1 872 506
Total equity
601 172
471 974
EBITDA (adjusted)
500 628
321 866
Total capital (excluding IFRS 16 leasing)
4 239 013
3 850 799
Equity ratio (%)
14,2 %
12,3 %
Net interest bearing debt/EBITDA
3,8
5,8
ANNUAL REPORT 2022
39
4. SEGMENT INFORMATION, REVENUE AND OTHER OPERATING INCOME
The Group has five reportable segments in accordance with the reporting requirements in IFRS 8. The segments are managed
separately and reflects the internal reporting. In addition there are owner cost at group level which are not allocated. The reportable
segments are:
●
Preschools - operates preschools with children in Norway, Sweden, Finland, the Netherlands and Poland and represent the largest
segment within the Group. Long history within the Nordic markets with Norway representing more than half of the revenue.
●
Care – provides individually focused elderly care and has grown to become a leading private operator of nursing homes, home
care and patient hotels in the Nordics. In addition, the Group has in the recent years entered the home care market and also run a
medical clinic. One of the largest private operators with Sweden representing more than half of the revenue.
●
Integration services – provides care services related to immigrants and asylum seekers in the world and being one of the leading
private operators. Main services are Reception centres, Education and Interpretation services. Norway is the largest operation
representing more than half of revenue.
●
Individual & family - provides health-, welfare - and care services for children and people with physical and mental disabilities in
the Nordics. Services included are Child care institutions and foster homes, assisted living and user controlled personal assistance
(BPA). Has become a significant player in the Nordics with Norway being the largest market.
●
Real Estate - strategic part of the care business and the development of property is considered a separate segment as it invests,
develops and divests properties to support the operations and growth of the Group.
The Group evaluates segmental performance on the basis of operating profit/(loss) in accordance with IFRS adjusted for IFRS 16. The
Company’s ultimate decision maker is the Board of Directors, including the CEO. The Board is responsible for allocating resources to
each segment as well as monitor the performance within each segment. Inter segment sales are reported as other operating expense
per segment and eliminated against personnel expenses. All items above are presented in the table below as Other/eliminations. For
2021 and 2022 there is no reporting on balance per segments and as a consequence only profit or loss being included in the figures
below.
2022
Preschools
Care
Integration
services
Individual &
Family
Real Estate
Other /
Eliminations
Total
Operating revenues
3 664 656
1 763 918
1 471 353
1 031 491
58 685
(55 997)
7 934 106
Other income
(186)
-
378
73
62 591
(30 580)
32 276
Total
3 664 471
1 763 918
1 471 731
1 031 564
121 275
(86 577)
7 966 382
Direct cost of goods and services
(111 805)
(25 797)
(172 410)
(41 784)
(152)
(1 296)
(353 244)
Personell expenses
(2 412 659)
(1 400 782)
(248 963)
(816 969)
(7 123)
(99 401)
(4 985 897)
Depreciation and amortisation
(74 598)
(11 352)
(4 752)
(13 158)
(3 078)
(527 773)
(634 712)
Other operating expenses
(884 010)
(366 050)
(864 509)
(142 767)
(41 452)
782 901
(1 515 888)
Operating profit/(loss)
181 398
(40 063)
181 097
16 886
69 469
67 853
476 641
-
Net financial items
(58 109)
26 011
(8 264)
(1 949)
(6 996)
(223 797)
(273 104)
Share of net income from associated
companies
1 266
-
-
-
-
-
1 266
Profit/(loss) before taxes
124 555
(14 052)
172 834
14 937
62 474
(155 943)
204 803
40
NORLANDIA HEALTH & CARE GROUP AS
2021
Preschools
Care
Integration
services
Individual &
Family
Real Estate
Other /
Eliminations
Total
Operating revenues
3 127 787
1 714 067
233 772
864 628
2 486
(8 977)
5 933 763
Other income
(2 611)
664
3 696
29
102 874
(62 865)
41 788
Total
3 125 176
1 714 731
237 469
864 657
105 360
(71 842)
5 975 550
Direct cost of goods and services
(86 037)
(20 303)
(33 751)
(34 134)
(640)
(236)
(175 101)
Personell expenses
(2 057 661)
(1 355 994)
(114 651)
(681 237)
(5 347)
(88 256)
(4 303 147)
Depreciation and amortisation
(62 610)
(20 495)
(5 827)
(7 995)
(897)
(456 389)
(554 212)
Other operating expenses
(761 044)
(352 108)
(71 278)
(123 568)
(14 373)
617 734
(704 637)
Operating profit/(loss)
157 823
(34 169)
11 962
17 722
84 103
1 011
238 453
Net financial items
(68 164)
6 932
(4 323)
555
(4 532)
(119 482)
(189 016)
Share of net income from associated
companies
-
-
-
-
-
(1 216)
(1 216)
Profit/(loss) before taxes
89 659
(27 237)
7 638
18 277
79 572
(119 688)
48 221
Operating revenues by major customers
Most of the revenues stems from public authorities.
Operating revenues by geography
2022
2021
Norway
4 577 704
2 780 844
Sweden
2 244 460
2 180 609
International
1 109 255
978 800
Real Estate/Other/Elimination
2 688
(6 491)
Total revenues by geography
7 934 106
5 933 763
2022
Preschools
Care
Integration
services
Individual &
Family
Other /
Eliminations
Norway
50%
23%
97%
88%
0%
Sweden
23%
72%
1%
12%
0%
International
27%
5%
3%
0%
0%
Real Estate/Other/Elimination
0%
0%
0%
0%
100%
Total revenues by geography
100%
100%
100%
100%
100%
2021
Preschools
Care
Integration
services
Individual &
Family
Other /
Eliminations
Norway
48%
21%
79%
85%
0%
Sweden
25%
74%
6%
15%
0%
International
28%
4%
15%
0%
0%
Real Estate/Other/Elimination
0%
0%
0%
0%
100%
Total revenues by geography
100%
100%
100%
100%
100%
Other income
2022
2021
Gain on sale of assets
62 591
102 874
Deferred gain from sale leaseback and booked as reduced ROU
(30 604)
(64 982)
Gain on sale of business
-
3 641
Other
289
254
Total other income
32 276
41 788
Sale leaseback transactions
Gain on sale of assets in 2022 and 2021 relates to sale and leaseback transactions of property acquired or developed. The assets
subject to the transactions were buildings used in the Preschool and Individual & Family operation. In connection with the
transactions a lease contract was entered into. The lease term is 15 years, with an option for extension of 10 more years.
ANNUAL REPORT 2022
41
IFRS 16 adjustments
The table below specify the IFRS 16 adjustment per category and illustrates the effects for profit and loss as if right of use assets and
lease liabilities had not been capitalized in accordance with IFRS 16, and no gain on sale and lease-back had been eliminated, and
instead all lease payments had been expensed.
(NOK 1 000)
2022
IFRS 16
effects
2022
Adjusted
2021
IFRS 16
effects
2021
Adjusted
Operating revenues
7 934 106
-
7 934 106
5 933 763
-
5 933 763
Other income
32 276
30 604
62 880
41 788
64 982
106 770
Total
7 966 382
30 604
7 996 986
5 975 550
64 982
6 040 532
Direct cost of goods and services
(353 244)
-
(353 244)
(175 101)
(175 101)
Personell expenses
(4 985 897)
-
(4 985 897)
(4 303 147)
(4 303 147)
Depreciation and amortisation
(634 712)
526 505
(108 207)
(554 212)
449 440
(104 772)
Other operating expenses
(1 515 888)
(641 329)
(2 157 218)
(704 637)
(535 781)
(1 240 417)
Operating profit/(loss)
476 641
(84 220)
392 421
238 453
(21 359)
217 094
Net financial items
(273 104)
152 492
(120 611)
(189 016)
121 080
(67 935)
Share of net income from associated comp
1 266
-
1 266
(1 216)
-
(1 216)
Profit/(loss) before taxes
204 803
68 272
273 075
48 221
99 721
147 942
42
NORLANDIA HEALTH & CARE GROUP AS
5. PERSONNEL EXPENSES
(NOK 1 000)
Note
2022
2021
Personnel expenses (including directors) comprise:
Wages and salaries
(3 926 875)
(3 302 868)
Defined contribution pension cost
(336 259)
(252 501)
Defined benefit pension income/(cost)
19
63 634
(37 707)
Other benefits
(70 632)
(50 235)
Social security contributions and similar taxes
(715 165)
(659 235)
Remuneration to Board of Directors
(600)
(600)
Total personnel expenses
(4 985 897)
(4 303 147)
Number of employees (FTE)
8 502
7 275
Name
2022
2021
Yngvar Tov Herbjørnssønn (CEO)
4 508
4 491
Total compensation
4 508
4 491
The group was established in December 2016 and no key management group has been identified for the years 2022 and 2021.
There are no agreements for any severance pay to the CEO or members of the Board.
Audit fees
The following amounts have been recognised as audit fees and related services during the period
2022
2021
Audit
(9 904)
(8 141)
Tax services
(214)
(304)
Attestation services
(1 391)
(1 318)
Other services
(1 155)
(1 879)
Total
(12 664)
(11 642)
ANNUAL REPORT 2022
43
6. NET FINANCIAL ITEMS
(NOK 1 000)
2022
2021
Interest received on bank deposits and receivables
2 470
1 877
Other finance income
798
30
Total finance income
3 268
1 907
Interest expense on financial liabilities measured at amortised cost
(142 926)
(106 708)
Interest expense on lease liability
(152 492)
(121 080)
Other financial expenses
(5 781)
(8 773)
Total finance expense
(301 200)
(236 561)
Net foreign exchange gains/(losses)
24 828
45 638
Net financial items
(273 104)
(189 016)
7. TAX EXPENSE
(NOK 1 000)
2022
2021
Current tax expense
Current tax on profits for the year
32 790
21 893
Adjustment for under provision in prior periods
-
-
Total current tax expense
32 790
21 893
Deferred tax expense
Origination and reversal of temporary differences (Note 16)
2 476
(17 362)
Changes not recognised in profit and loss
-
-
Unrecognised deferred tax assets
-
-
Total deferred tax expense
2 476
(17 362)
Income tax expense
35 266
4 531
The reasons for the difference between the actual tax charge for the year and the standard rate of corporation tax
in Norway applied to profits for the year are as follows:
2022
2021
Profit for the year
169 537
43 690
Income tax expense
35 266
4 531
Profit before income taxes
204 803
48 221
Expected tax charge based on the standard rate of Norwegian corporation tax at the
domestic rate of 22 %
45 057
10 609
Gains not taxable/ Equity accounted associated companies
(7 101)
(9 193)
Change in tax rate for deferred tax
-
-
Expenses not deductible for tax purposes
(1 416)
244
Effect of unrecognised deferred tax assets
(1 273)
2 872
Total tax expense
35 266
4 531
44
NORLANDIA HEALTH & CARE GROUP AS
8. PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Work in
progress
Furniture,
fixtures and
equipment
(NOK 1 000)
Total
At 1 January 2021
Cost
344 678
112 117
489 406
946 201
Accumulated depreciation
(172 376)
-
(310 532)
(482 908)
Net book value
172 302
112 117
178 874
463 293
Year ended 31 December 2021
Opening balance net book value
172 302
112 117
178 874
463 293
Additions
85 139
-
51 388
136 527
Acquisition of subsidiary
319 984
-
9 542
329 526
Disposals
(205 029)
-
-
(205 029)
Depreciation
(15 578)
-
(44 162)
(59 740)
Impairment loss
-
-
-
-
Reclassification
56 099
(75 774)
19 675
-
Exchange differences
(2 464)
(1 169)
2 451
(1 182)
Closing balance net book value
410 453
35 174
217 767
663 394
At 31 December 2021
Cost
576 494
35 174
583 080
1 194 748
Accumulated depreciation
(166 041)
-
(365 313)
(531 354)
Net book value
410 453
35 174
217 767
663 394
Year ended 31 December 2022
Opening balance net book value
410 453
35 174
217 767
663 394
Additions
95 308
24 618
76 582
196 509
Acquisition of subsidiary
122 714
4 048
6 203
132 965
Disposals
(110 844)
(17 840)
(4 019)
(132 703)
Depreciation
(19 035)
-
(50 180)
(69 215)
Impairment loss
-
-
-
-
Reclassification
-
-
-
-
Exchange differences
709
27
302
1 038
Closing balance net book value
499 306
46 027
246 655
791 988
At 31 December 2022
Cost
682 129
46 027
648 424
1 376 581
Accumulated depreciation
(182 824)
-
(401 769)
(584 593)
Net book value
499 306
46 027
246 655
791 988
Property, plant and equipment pledged as security for liabilities.
2022
2021
Land and buildings, including work in progress
545 333
445 627
ANNUAL REPORT 2022
45
9. GOODWILL AND INTANGIBLE ASSETS
Goodwill
Other
intangible
assets
(NOK 1 000)
Total
At 1 January 2021
Cost or fair value
1 652 356
835 264
2 487 620
Accumulated amortisation
-
(236 086)
(236 086)
Net book value
1 652 356
599 178
2 251 534
Year ended 31 December 2021
Opening book amount
1 652 356
599 178
2 251 534
Additions
2 969
1 258
4 227
Acquisition of subsidiary
269 606
28 324
297 930
Amortisation
-
(42 625)
(42 625)
Impairment loss
-
(1 657)
(1 657)
Exchange differences
(18 748)
(20 954)
(39 703)
Closing balance net book value
1 906 183
563 524
2 469 707
At 31 December 2021
Cost or fair value
1 906 183
842 235
2 748 417
Accumulated amortisation
-
(278 710)
(278 710)
Net book value
1 906 183
563 524
2 469 707
Year ended 31 December 2022
Opening book amount
1 906 183
563 524
2 469 707
Additions
15 661
3 342
19 003
Acquisition of subsidiary
70 023
1 150
71 172
Disposals
(156)
(1 477)
(1 634)
Amortisation
-
(35 952)
(35 952)
Impairment loss
(3 040)
-
(3 040)
Exchange differences
5 928
(869)
5 059
Closing balance net book value
1 994 598
529 718
2 524 316
At 31 December 2022
Cost or fair value
1 997 638
844 380
2 842 018
Accumulated amortisation and impairment loss
(3 040)
(314 663)
(317 703)
Net book value
1 994 598
529 718
2 524 316
The Group has no contractual commitments for development costs.
Impairment losses in 2022 relates to dissolved companies, where the booked goodwill was taken as an impairment loss
Current estimates of useful economic life of intangible assets are as follows:
Goodwill
Indefinite
Other intangible assets (mainly trademarks and customer contracts)
0 -20 years
10. GOODWILL AND IMPAIRMENT
Goodwill and other intangible assets result from business combinations and mainly relates to strategic investments in order to
strengthen the platform for the provided services within the Group. Such investments provide synergies both between segments and
countries as it enables developing new services and to seek business opportunities between countries. The managing directors within
a segment operate across countries and businesses within a segment which is considered to be integrated. Assets are allocated to the
identified reporting segments.
46
NORLANDIA HEALTH & CARE GROUP AS
Goodwill is allocated as follows between four reporting segments:
(NOK 1 000)
2022
2021
Preschools
1 128 006
1 031 793
Care
576 532
581 408
Integration services
127 300
127 883
Individual & family
162 761
165 099
Total goodwill
1 994 598
1 906 183
Impairment testing for reporting segments containing goodwill
Cash flow projections and assumptions
Group management reviews the carrying value of the cash generating units annually or more frequent if there is an indication that an
asset may be impaired. A value in use approach is used to determine recoverable amount. Reviews are based on comparing the net
present value (NPV) of projected future cash flows with the carrying value of the assets considering circumstances which could affect
the asset value. The NPV is calculated by discounting estimated cash flows for the next five years based on the companies’ updated
forecast/budget for the coming year and the management’s projection for the next four years based on economic prognoses. Expected
future cash flows are based on forecasted EBITDA deducted for capital expenditures, tax effects on operating profit and changes in net
working capital. Subsequently the terminal value is used, calculated by Gordon’s model.
The total required rate of return used to discount cash flows is calculated as a weighted average return on equity and the required rate
of return of interest-bearing debt. The input data of the discount rate was chosen by individual assessment of each parameter.
Information from representative sources, peer groups etc. was used to determine the best estimate. This calculation utilises an
estimate of the risk-free interest rate, risk premium, beta and the liquidity premium.
For the fiscal years 2022 and 2021 the value in use for the cash generating units are based on the following key assumptions:
2022
Prechools
Care
Integration
Services
Individual &
Family
Growth rate
2,0 %
2,0 %
2,0 %
2,0 %
Discount rate after tax
6,9 %
6,9 %
6,9 %
6,9 %
2021
Prechools
Care
Integration
Services
Individual &
Family
Growth rate
2,0 %
2,0 %
2,0 %
2,0 %
Discount rate after tax
6,0 %
6,0 %
6,0 %
6,0 %
The Group has in the calculations applied estimated cash flows after tax and corresponding discount rate after tax. The recoverable
amounts would not change significantly if pre-tax cash flows and pre-tax discount rate had rather been applied.
Sensitivities
The Group has carried out sensitivity analysis by considering changes in EBITDA and discount rates to test whether changes in key
assumptions would result in impairment. These are considered the most important assumptions for the long-term expectations. The
management’s present plans and forecasts as well as the market’s expectations have also been taken into consideration.
The long-term assumptions are assessed on an ongoing basis and the assumptions applied in future impairment tests may vary from
those applied for the fiscal year 2022. The Group has a continuously review process, which includes sensitivity analysis and analysis of
actual results achieved compared to long-term assumptions, to assess whether the long-term base case assumptions continue to
correctly reflect expectations.
The following sensitivity analysis were carried out to test whether changes in key assumptions would result in an impairment (decline
in cash flows, increase in discount rate):
ANNUAL REPORT 2022
47
2022
Prechools
Care
Integration
Services
Individual &
Family
Changes in cash flows
50,0 %
13,0 %
80,0 %
66,0 %
Changes in discount rates
5,1 %
0,7 %
22,1 %
10,1 %
2021
Prechools
Care
Integration
Services
Individual &
Family
Changes in cash flows
55,0 %
38,0 %
50,0 %
72,0 %
Changes in discount rates
4,9 %
0,8 %
3,8 %
9,9 %
Based on this analysis, management believes that there is no need for impairment of the carrying value of goodwill and other intangible
assets as of 31 December 2022. As the conclusion is somewhat sensitive for changes in the parameters for the reporting segment Care,
the Group will monitor closely the development each quarter the following year. At the same time the Board of Directors are
comfortable with the level of recognized goodwill and the expected development for the Care business going forward. The carrying
value of goodwill for the reporting segment Care was NOK 576.5 million on 31 December 2022 (NOK 581.4 million 31 December 2021).
48
NORLANDIA HEALTH & CARE GROUP AS
11. SUBSIDIARIES AND ASSOCIATES
List of subsidiaries
Norlandia Health & Care Group AS was established in December 2016. This was done by transferring the shares in Norlandia Care
Group AS, Hero Group AS, Aberia Healthcare AS and Kidsa AS, from Hospitality Invest to a newly incorporated 100% owned subsidiary
(Norlandia Health & Care Group AS).
The material subsidiaries of Norlandia Health & Care Group AS, all of which have been included in these consolidated financial
statements are as follows:
Country of
incorporation
Place of
office
Ownership interest
Name
2022
2021
Norlandia Care Group AS
Norway
Bodø
100%
100%
Kidsa Drift AS
Norway
Bergen
100%
100%
Hero Group AS
Norway
Stavanger
100%
100%
Aberia AS
Norway
Oslo
100%
100%
NHC Eiendom AS
Norway
Oslo
100%
100%
Care Properties AS
Norway
Oslo
100%
100%
NHC Services AS
Norway
Moss
100%
100%
NH Europe Holding AS
Norway
Oslo
100%
100%
Material operating companies
Norlandia Barnehagene AS
Norway
Oslo
100%
100%
Norlandia Barnehagene II AS
Norway
Oslo
100%
100%
Kidsa Barnehager AS
Norway
Bergen
100%
100%
Norlandia Barnehagedrift AS
Norway
Oslo
100%
100%
Norlandia Förskolor AB
Sweden
Stockholm
100%
100%
Kids2Home AB
Sweden
Stockholm
100%
100%
Norlandia Päiväkodit Oy
Finland
Helsinki
100%
100%
Preschools Netherlands Holdings B.V.
Netherlands
Utrecht
100%
100%
Norlandia Nederland B.V.
Netherlands
Utrecht
100%
100%
Norlandia Care AS
Norway
Oslo
100%
100%
Norlandia Hjemmeomsorg AS
Norway
Oslo
100%
100%
Norlandia Care OY
Finland
Tampere
100%
100%
Norlandia Care AB
Sweden
Stockholm
100%
100%
Kosmo AB
Sweden
Stockholm
100%
100%
Hero Norge AS
Norway
Stavanger
100%
100%
Aberia Ung AS
Norway
Moss
100%
100%
Aberia Omsorg AS
Norway
Moss
100%
100%
Aberia Personlig Assistans SB (former: Marcus Assistans AB)
Sweden
Örebro
100%
76%
The table below shows the material associated companies held by the Group, which is accounted for using the equity method. As of
31 December 2022, Norlandia Preschools AS holds a 50% ownership in Wekita GmbH, which is a German company operating in the
Preschool segment.
(NOK 1 000)
2022
2021
Investment in associates as of 01.01
31 076
54 306
Share of net income from associated companies
1 266
(1 216)
New investment in associates
-
7 486
Transfer to subsidiaries
-
(29 500)
Disposal of investment associates
(6 729)
-
Investment in associates as of 31.12
25 613
31 076
ANNUAL REPORT 2022
49
12. LEASES
Lease contracts
The Group leases most of its offices, hotels, preschools, nursing homes and houses. Lease agreements typically run for 10+ years within
preschools and less for the other segments. Preschools represent more than 60% of the total right-of-use assets in the Group, while
Care represents more than 25%. Contracts normally include an option to prolong the lease. The Group has not included any such
prolonging due to the uncertainty related to the long remaining lease. The interest rate is estimated per country and varies between
2.5-6.9%. The interest rate is updated on an annual basis, and in most instances the updated rate is mainly used for new contracts
entered into the applicable year. Contracts with less than a 12-month obligation or payments related to revenue are not capitalized.
Lease payments are subject to annual KPI adjustment.
(NOK 1 000)
2022
2021
Right of use asset
Balance at 1 January
4 186 467
3 799 355
New contracts
825 061
535 585
Acquisition of subsidiary
319 096
396 619
Remeasurement or amendments
334 895
28 597
Depreciation
(526 505)
(449 440)
Exchange differences
32 828
(124 248)
Year ended 31 December
5 171 842
4 186 467
Maturity analysis lease liabilities - undiscounted cash flows
Less than one year
687 528
543 252
One to five years
2 356 709
1 873 986
More than five years
3 526 325
2 924 561
Total undiscounted lease liabilities 31 December
6 570 563
5 341 799
Classification of lease liabilities in the statement of financial position
Current
4 996 237
4 050 022
Non-current
531 245
416 784
Total lease liabilities
5 527 482
4 466 806
Lease expenses not included in lease liabilities
Short-term lease expenses
(639 907)
(35 110)
Payments for short term leases are mainly related to the rental of refugee centers for the operating segment Integration Services,
where the Group in 2022 opened more than 40 acute refugee centers with capacity to house of 10 000 refugees. A considerable share
of these centers opened less than a week after UDI (The Norwegian Directorate of Immigration) first signaled the need for emergency
preparedness following the war outbreak in Ukraine. All these acute centers were based on short-term contracts, most of them
operating on a 3-month basis. Most of these will be replaced by long-term ordinary centers going into 2023. Variable lease expenses
and lease expenses related to leases of low value assets are not significant for the Group.
50
NORLANDIA HEALTH & CARE GROUP AS
13. TRADE AND OTHER RECEIVABLES
(NOK 1 000)
Note
2022
2021
Trade receivables
428 120
297 446
Less: provision for impairment of trade receivables
(10 756)
(13 025)
Trade receivables - net
417 364
284 421
Prepaid expenses
149 878
117 638
Prepaid public duties
3 667
11 000
Group contribution receivable from owner
102 673
-
Other current receivables
126 455
69 966
Total other current receivables
382 672
198 603
Other non-current receivables
40 482
41 600
Total receivables classified as loans and receivables
840 518
524 624
The fair values of trade and other receivables classified as loans and receivables are not materially different to their
The Group does not hold any collateral as security.
Movements on the Group provision for impairment of trade receivables are as follows:
(NOK 1 000)
2022
2021
At 1 January
(13 025)
(11 185)
Provided during the year
(3 261)
(1 840)
Reversal of provisions prior years
5 529
-
At 31 December
(10 756)
(13 025)
The movement on the provision for impaired receivables has been included in the other operating expenses line in the
consolidated statement of comprehensive income.
Other classes of financial assets included within trade and other receivables do not contain impaired assets.
(NOK 1 000)
Aging analysis on trade receivables
Total
Not due
(less than
30 days)
30-60 days
60-90 days
More than
90 days
2022
428 120
395 616
14 320
2 439
15 744
2021
297 446
281 281
2 063
398
13 704
ANNUAL REPORT 2022
51
14. SHARE CAPITAL, SHAREHOLDERS, DIVIDENDS AND RESERVES
Share capital
(Amounts in NOK)
2022
2022
2021
2021
Number
NOK
Number
NOK
Ordinary shares of NOK 10.4 each
30 000 000
312 000 000
30 000 000
312 000 000
Total
30 000 000
312 000 000
30 000 000
312 000 000
Shareholders
Each share gives the shareholder one voting right.
29 100 000
97,00%
Stork Industries AS
450 000
1,50%
Cowry EV AS
450 000
1,50%
Total
30 000 000
100,00%
Kristian A. Adolfsen holds, directly and indirectly, 45.94 % of the shares in Hospitality Invest AS
Roger Adolfsen holds, directly and indirectly, 45.94% of the shares in Hospitality Invest AS
Yngvar Tov Herbjørnssønn holds, directly and indirectly, 100% of the shares in Cowry EV AS
The following describes the nature and purpose of each reserve within equity:
Reserve Description and purpose
Share premium Amount subscribed for share capital in excess of nominal value.
Retained earnings All other net gains and losses and transactions with owners (e.g. dividends) not recognised elsewhere.
52
NORLANDIA HEALTH & CARE GROUP AS
15. BORROWINGS
The book value and fair value of loans and borrowings are as follows:
Book
Fair
Book
Fair
value
value
value
value
(NOK 1 000)
2022
2022
2021
2021
Non-Current
Interest-bearing debt
2 115 610
2 115 610
2 122 655
2 122 655
Total non-current interest-bearing debt
2 115 610
2 115 610
2 122 655
2 122 655
Current
Interest-bearing debt
71 388
71 388
51 037
51 037
Total current interest-bearing debt
71 388
71 388
51 037
51 037
The currency profile of the Group's loans and borrowings is as follows:
(Currency in 1 000 NOK)
2022
2021
NOK
1 442 754
1 432 776
SEK
744 245
740 916
Total
2 186 998
2 173 692
Borrowings as of 31.12.2022
Interest
Amount
Due date
Bond issued 2021
NIBOR/STIBOR +5.75%
1 674 233
2025
Revolving credit facility
NIBOR +3.15%
106 245
Property debt outside ringfence structure
2.42%-5.76%
395 315
2023-2050
Other debt/property debt
11 204
2 186 998
Borrowings as of 31.12.2021
Interest
Amount
Due date
Bond issued 2021
NIBOR/STIBOR +5.75%
1 682 299
2025
Revolving credit facility
NIBOR +3.15%
104 904
Property debt outside ringfence structure
0.897%-2.438%
292 960
2050
Other debt/property debt
93 529
2 173 692
In May 2021 the Group successfully refinanced its bond and secured long term financing until 2025. The settlement and new bond
were in a single transaction and several investors rolled over their investment into the new bond. From a net cashflow perspective
the Group only incurred directly related transaction costs included as part of the financing activities. As part of the refinancing the
Hospitality Invest AS converted an equal of NOK 150 million in obligations debt to equity, lowering the external financing. The new
bond is a senior secured sustainability-linked bond due in May 2025. The bond consists of a 950 million NOK tranche and a 750
million SEK tranche. As per December 2022 MNOK 15.5 were unamortised borrowing costs (31 December 2021 MNOK 21.7).
Subsidiaries are pledged as collateral together with a majority of material operating companies. See note 3, 18 and 23 for further
information regarding the bond.
On top of the bond financing the Group is allowed to have a total of NOK 350 million in credit facilities, of which MNOK 106.2 was
drawn as per 31 December 2022 (MNOK 104.9 as of 31 December 2021). In March 2023, the long-term credit facility was repaid. In
replacement, the Group secured a short-term overdraft facility of NOK 350 million by DnB.
The majority of the property debt utside the ringfence structure is financed through Husbanken. The ringfence structure relates to
the companies that are defined in the bond agreement, while some real estate companies outside this structure are alloowed to
draw external debt. In addition to the loans in Husbanken, the Group has some financing through Sparebanken Møre, Sparebanken
1 Ringerike Hadeland and BN Bank. As of 31 December 2022, the amount totalled to MNOK 395.3 (MNOK 293.0 as of 31 December
2021).
On 19 January 2023 the Group announced a successful placement of subsequent bond issue equivalent to NOK 522 million under
the company's existing senior secured bond framework with ISINs NO0010997927 (the "NOK-trance") and NO0010997943 (the "SEK
tranche") as described further in note 24.
ANNUAL REPORT 2022
53
16. DEFERRED TAX
Deferred tax is calculated in full on temporary differences under the liability method using a tax rate of 22 %.
The movement on the deferred tax account is as shown below:
(NOK 1 000)
2022
2021
At 1 January
(27 718)
(33 079)
Recognised in profit and loss
-
-
Tax expense
2 476
17 362
Recognition of previously unrecognised deferred tax assets
-
-
Recognised in other comprehensive income
2 209
(1 276)
Sum
(23 032)
(16 993)
Arising on business combination
(13 845)
(10 725)
At 31 December
(36 878)
(27 718)
Deferred tax assets have been recognised in respect of all tax losses and other temporary differences giving rise to
deferred tax assets where the directors believe it is probable that these assets will be recovered.
The movements in deferred tax assets and liabilities (prior to the offsetting of balances within the same jurisdiction
as permitted by IAS 12) during the period are shown below.
54
NORLANDIA HEALTH & CARE GROUP AS
Details of the deferred tax liability, amounts recognised in profit or loss and amounts recognised in other comprehensive
income are as follows:
(Charged)/
(Charged)/
credited
credited to
to profit
equity or
Asset
Liability
Net
or loss
(NOK 1 000)
2022
2022
2022
2022
2022
Fixed assets
84 222
(135 134)
(50 912)
32 281
(13 845)
Accounts receivable
1 374
-
1 374
(682)
-
Pensions
213
966
1 179
(20 126)
2 209
Profit and loss account
-
(1 857)
(1 857)
460
-
Provisions
55 623
(10 396)
45 226
(3 251)
-
Tax loss carried forward
5 410
-
5 410
(7 926)
-
Tax asset/(liabilities)
146 841
(146 421)
420
756
(11 636)
Set off of tax
-
-
-
-
-
Unrecognised deferred tax asset
(37 299)
-
(37 299)
1 720
-
Net tax assets/(liabilities)
109 543
(146 421)
(36 878)
2 476
(11 636)
(NOK 1 000)
2021
2021
2021
2021
2021
Fixed assets
70 279
(139 627)
(69 348)
36 275
(10 725)
Accounts receivable
2 056
-
2 056
146
-
Pensions
23 742
(4 647)
19 096
(4 479)
(1 276)
Profit and loss account
-
(2 317)
(2 317)
335
-
Provisions
50 395
(1 918)
48 477
(6 262)
-
Tax loss carried forward
13 336
-
13 336
4 424
-
Tax asset/(liabilities)
159 809
(148 508)
11 301
30 440
(12 001)
Set off of tax
-
-
-
-
-
Unrecognised deferred tax asset
(39 019)
-
(39 019)
(13 078)
-
Net tax assets/(liabilities)
120 790
(148 508)
(27 718)
17 362
(12 001)
The unused tax losses and deductible temporary differences can be carried forward indefinitely. Deferred tax assets are recognized
as an asset as the Group expect to utilize these with expected profit in the coming years. For 2020 and onward the Group has
decided not to recognize a tax asset related to the deferred interest charges as these may only be carried forward for 10 years and it
is uncertain that these may be utilized.
2022
2021
Taxes payable in consolidated Statement of Comprehensive Income
13 981
20 428
Prepaid tax
31 272
18 927
Taxes payable in Statement of Financial Position
(17 291)
1 501
Taxes payable in statement of Financial position is lower than current tax expense due to Group contribution.
ANNUAL REPORT 2022
55
17. TRADE AND OTHER CURRENT LIABILITIES
(NOK 1 000)
2022
2021
Trade payables
190 976
129 528
Tax and social security payments
279 264
255 344
Other current liabilities
783 920
545 186
Total trade and other current liabilities, excluding borrowings,
classified as financial liabilities measured at amortised cost
1 254 160
930 057
Book values approximate to fair value at 31 December 2022 and 2021.
18. SUPPORTING STATEMENT OF CASH FLOWS
Non-current
loans and
borrowings
Current loans
and borrowings
Lease liabilities
Total
At 1 January 2021
118 016
1 892 293
3 976 906
5 987 215
Cash flows
19 448
(7 763)
(414 701)
(403 016)
Net amounts from purchase and sale of companies
177 729
14 478
412 519
604 726
Effects of foreign exchange
(19 125)
-
(137 082)
(156 207)
Interests accrued in period
-
2 029
-
2 029
Addition/remeasurements
-
-
629 164
629 164
Capital increase (converted debt to equity)
150 000
-
-
150 000
Re-financed bond
1 678 332
(1 850 000)
-
(171 668)
At 31 December 2021
2 124 400
51 037
4 466 806
6 642 243
Cash flows
(51 762)
(27 180)
(491 307)
(570 249)
Net amounts from purchase and sale of companies
64 872
39 876
319 096
423 843
Effects of foreign exchange
(21 900)
-
33 145
11 246
Interests accrued in period
-
7 655
-
7 655
Addition/remeasurements
-
1 199 742
1 199 742
At 31 December 2022
2 115 610
71 388
5 527 482
7 714 480
19. RETIREMENT BENEFITS
At 31.12.2022, a total of 12,435 employees in the Group are included in a defined contribution plan. The plan is in accordance with
the laws and regulations concerning obligatory pension plans. The costs in connection with the plan are recognized in accordance
with premiums paid. The Group’s defined benefit plan at the end of 2022 includes 65 employees. In 2023 the defined benefit plans
for the Preschools in Norway were replaced by a defined contribution plan. The change had a positive effect in both Q1 and Q4, and
compensation is being paid as salary for those the qualify. The plan involves lifelong pension from 67 years. The pension plans are
accounted for in accordance with IAS 19 Employee benefits. Defined benefit plans give rise to defined future payments. These are
mainly dependent on the number of years of service, salary level at retirement and the level of payments received from Social
Security. The obligations are covered by an insurance company.
56
NORLANDIA HEALTH & CARE GROUP AS
(NOK 1 000)
2022
2021
Pension costs for defined contribution schemes
336 259
252 501
Details of the Group's defined benefit schemes are as follows:
2022
2021
Fair value of plan assets
57 210
379 160
Present value of funded obligations
63 488
469 125
Change in net obligation as a result of business combination
-
10 220
Net pension obligations
6 279
100 185
Reconciliation of plan assets
2022
2021
At 1 January
422 610
345 459
Expected return
2 954
5 043
Contributions by Group
18 787
47 148
Benefits paid
(1 153)
(1 691)
Actuarial gain/(loss)
(12 464)
(16 474)
Settlements
(373 240)
-
Administration fees
(285)
(326)
Change as a result of business combination
-
43 450
At 31 December
57 210
422 610
Reconciliation of plan liabilities
2022
2021
At 1 January
522 795
458 325
Interest cost
3 837
7 874
Current service cost
31 087
32 521
Benefits paid
(1 153)
(1 691)
Actuarial (gain)/loss
(2 422)
(22 276)
Social security tax
(637)
(5 629)
Settlements
(490 019)
-
Change as a result of business combination
-
53 670
At 31 December
63 488
522 795
2022
2021
Actuarial gains and losses recognised in OCI
(10 042)
5 802
Pension cost (defined benefit plan)
2022
2021
Current service cost
(65 874)
29 827
Net interest cost
(158)
2 237
Administration costs
537
1 135
Accrued social security tax
1 861
4 508
Net pension cost/(income)
(63 634)
37 707
Principal actuarial assumptions
31.12.2022
31.12.2021
Discount rate on plan liabilities
3,2 %
1,9 %
Expected increase in pensionable salary
3,8 %
2,8 %
Future G-increase
3,5 %
2,5 %
Future pension increase
1,7 %
0,0 %
Turnover
8,7 %
8,7 %
Social security tax
14,1 %
14,1 %
ANNUAL REPORT 2022
57
20. ACQUISITIONS DURING THE PERIOD AND COMPLETED PRIOR PERIODS
Acquisitions during 2022
Acquisitions during 2022 have been primarily within the preschool segment within Sweden and Norway, with the purchase of the
Swedish Group Svenska Kunskapsförskolan Koncept AS being the largest. All business combinations during 2022 resulted in an
addition to intangible assets of total MNOK 86.8, right -of-use assets of MNOK 319.1 and property, plant and equipment of MNOK
133.0.
Acquisitions during 2021
Acquisitions during 2021 have been made primarily in the preschool segment and total consideration was MNOK 126, which has
been paid during 2021. Gnist Barnehager AS has been consolidated from 1.10.2021. In addition, the Group’s owner (Hospitality Invest
AS) transferred 51% of the shares in NH Europe Holding AS to the Group, which now owns 100% of the outstanding shares. The
transfer of the shares in NH Europe Holding AS has been booked as a capital injection, using book values in the consolidated
statements of Hospitality Invest AS and considered as outside the scope of IFRS 3. The total book value of the 51% shares were
MNOK 29.8 and no cash were transferred. The net effect of this common control transaction at book values was a reduction in equity
of MNOK -17.7. A significant part of the reduction was IFRS 16 liabilities being higher than ROU, due to prior sale leaseback
transactions. The transaction was finalized in connection with the refinancing of the bond loan in May 2021, and NH Europe Holding
AS has been consolidated from this point in time. Comparative figures have not been restated due to immateriality.
All business combinations during 2021, including NH Europe Holding AS resulting in an addition to goodwill of MNOK 270 million,
intangible assets of MNOK 28, Right-of-use assets of MNOK 397, Lease liability of MNOK 424, fixed assets of MNOK 330, Deferred tax
liabilities of MNOK 11 and interest-bearing debt of MNOK 278. Cash in acquired companies has primarily been prepayments from
municipalities, where corresponding unsatisfied performance obligations were recognised as liabilities. No amount of goodwill is
expected to be deductible for tax purposes. No transactions costs have been booked as part of these transactions
.
58
NORLANDIA HEALTH & CARE GROUP AS
21. TRANSACTIONS WITH RELATED PARTIES
In addition to the transactions described in note 11, the financial statements include the following transactions with related parties.
Related party Relation to the Group
Kristian Adolfsen Shareholder in Hospitality Invest AS, board member in the Group
Roger Adolfsen Shareholder in Hospitality Invest AS, board member in the Group
Hospitality Invest AS Major shareholder 97%
Pioneer Property Group ASA Significant ownership interest from the same shareholders
Pioneer Preschools AS Significant ownership interest from the same shareholders
Pioneer Preschools AS Significant ownership interest from the same shareholders
Personalhuset Staffing Group AS Significant ownership interest from the same shareholders
Älvbäck Fastighets AB Significant ownership interest from the same shareholders
(NOK 1 000)
Transaction with related parties
2022
2021
Receivables from related parties
Älvbäck Fastighets AB
3 598
3 452
Liabilities to related parties
Hospitality Invest AS
28 959
24 680
Sale of assets to related parties
Sale of property to Pioneer Preschools AS
-
14 610
Rent of properties from related parties
Rent of properties from Pioneer Property Group ASA
2 333
1 350
Purchase of personell services from related parties
Purchase of personell services from Personalhuset Staffing Group AS
28 498
13 050
22. CASH AND CASH EQUIVALENTS
(NOK 1 000)
2022
2021
Cash related to payroll tax witholdings
1 343
10 774
Unrestricted cash
270 378
290 412
Total cash and cash equivalents
271 721
301 186
23. DESCRIPTION OF INCURRENCE COVENANT AND FINANCIAL COVENANT
The senior secured bond issued in December 2021 includes an incurrence covenant and a financial covenant. Certain actions and
transactions, for example issuance of new debt and payment of dividends, is subject to the satisfaction of an incurrence test. The
incurrence test is considered satisfied provided that:
Total Net Debt / EBITDA (as defined in the Bond agreement) = not greater than 3.75 (3.25 for payment of dividends) for the group of
companies included in the ring fence as defined by the bond agreement, see also note 15.
The financial covenant requires the Group to at all time satisfy a minimum liquidity of NOK 100.000.000, including not utilized
overdraft credit facilities.
ANNUAL REPORT 2022
59
24. EVENTS AFTER THE REPORTING DATE
On 19 January 2023 the Group announced a successful placement of subsequent bond issue equivalent to NOK 522 million under the
company’s existing senior secured bond framework with ISINs NO0010997927 (the “NOK-tranche”) and NO0010997943 (the “SEK-
tranche”). The subsequent bond issue was split between a subsequent issue of NOK 180 million in the NOK-tranche of the bond and a
subsequent issue of SEK 352 million in the SEK-tranche of the bond. The net proceeds from the subsequent bond issue were utilized to
partly finance the acquisition of Frösunda Omsorg AB (“Frösunda”) including its parent company Brado AB (“Brado”). The acquisition
is in line with the previously communicated plan to combine the two groups to create a leading Nordic and North-European private
health and care provider. The purchase price allocation for the acquisition of Brado AB was not completed as of 19 April 2023, and
further notes disclosures in relation to this is therefore not provided.
In March 2023, the long-term credit facility was repaid. In replacement, the Group secured a short-term overdraft facility of NOK 350
million by DnB.
60
NORLANDIA HEALTH & CARE GROUP AS
Income statement
Norlandia Health & Care Group AS - for the year ended 31 December 2022
NOK 1 000
Note
2022
2021
Operating revenues
7 035
2 227
Personnel expenses
8
(2 340)
(3 006)
Other operating expenses
8
(12 447)
(8 523)
Operating profit/(loss)
(7 752)
(9 302)
Interest income
7
37 345
35 347
Other financial income
6
247 976
256 632
Interest expenses
7
(123 497)
(98 384)
Other financial expenses
(622)
(7 755)
Net financial items
161 202
185 839
Profit/(loss) before taxes
153 450
176 537
Income taxes
2
(31 405)
(21 202)
Net income/(loss)
122 045
155 335
Allocated to other equity
3
122 045
155 335
Total allocation of net income/(loss) for the period
122 045
155 335
ANNUAL REPORT 2022
61
Statement of financial position
Norlandia Health & Care Group AS - for the year ended 31 December 2022
(NOK 1 000)
Note
31.12.2022
31.12.2021
ASSETS
Investment in subsidiaries
5
1 665 128
1 656 454
Loans to group companies
6
503 501
745 552
Total non-current assets
2 168 628
2 402 006
Current group receivables
6
522 008
190 683
Other current receivables
5 263
100
Cash and cash equivalents
9
36 419
45 720
Total current assets
563 691
236 503
Total assets
2 732 319
2 638 509
EQUITY AND LIABILITIES
Share capital
3, 4
312 000
312 000
Share premium reserve
3
167 784
167 784
Total restricted equity
479 784
479 784
Retained earnings
3
325 878
223 833
Total equity
805 662
703 617
Bond loans
7
1 643 486
1 659 207
Non-current interest-bearing debt
7
106 245
104 904
Total non-current liabilities
1 749 731
1 764 111
Trade payables
-
946
Current liabilities to group companies
6
142 751
144 970
Other current liabilities
34 175
24 866
Total current liabilities
176 926
170 781
Total liabilities
1 926 657
1 934 892
Total equity and liabilities
2 732 319
2 638 509
Oslo, 19 April 2023
Board of Directors of Norlandia Health & Care Group AS
Kristian A. Adolfsen
Chairman of the Board
Roger Adolfsen
Member of the Board
Ingvild Myhre
Member of the Board
Yngvar Tov Herbjørnssønn
CEO
62
NORLANDIA HEALTH & CARE GROUP AS
Cash flow statement
Norlandia Health & Care Group AS - for the year ended 31 December 2022
(NOK 1 000)
Note
2022
2021
Cash flow from operations
Profit/(loss) before taxes
153 450
176 537
Net financial items
7
(161 202)
(185 839)
Change in trade creditors
(946)
572
Change in other provisions
4 146
21 213
Net cash flow from operations
(4 552)
12 483
Net loans to subsidiaries
6
242 051
(56 171)
Net cash flow from investments
242 051
(56 171)
Cash flow from financing
Proceeds from long term loans
-
104 904
Refinancing of bond
-
(21 668)
Net change in bank overdraft
-
27 190
Interest received
7
38 686
35 347
Interest paid
7
(123 497)
(98 384)
Payment of group contribution
3
(20 000)
-
Net group receivables
6
(141 989)
(26 077)
Net cash flow from financing
(246 800)
21 312
Net change in cash and cash equivalents
9
(9 301)
(22 376)
Cash and cash equivalents at the beginning of the period
9
45 720
68 096
Cash and cash equivalents at the end of the period
36 419
45 720
ANNUAL REPORT 2022
63
Notes to the financial statements 2022
1. ACCOUNTING POLICIES
The annual accounts have been prepared in compliance with the Accounting Act and accounting principles generally accepted in
Norway.
Operating income
Revenues from sale of services are recognised in the income statement once the delivery has taken place.
Taxes
The tax charge in the income statement includes both payable taxes for the period and changes in deferred tax. Deferred tax is
calculated as 22 % of temporary differences which exist between accounting and tax values of assets and liabilities, and any carry
forward losses for tax purposes at the year-end. Taxable and deductible temporary differences that reverse or may reverse in the same
period are offset and reported net. Deferred tax on the excess value associated with acquisitions of subsidiaries is not settled.
Classification of balance sheet items
Assets intended for long term ownership or use have been classified as fixed assets. Fixed assets are valued at cost. They are recorded
in the statement of financial position and depreciated over the estimated economic lifetime of the asset. Fixed assets are written down
to recoverable amount when decreases in value are expected to be permanent. The recoverable amount is the highest amount of net
realizable value and value in use. Value in use is the present value of future cash flows associated with the asset. Impairment losses
are reversed when the basis for impairment no longer exists. Other assets are classified as current assets. Current assets and current
liabilities are normally considered to be due within one year from the balance sheet date, as well as those connected to the trading
cycle. Current assets are valued at the lower of cost and fair value.
Debtors
Trade debtors and other debtors are recognised in the balance sheet at nominal value after provision for bad debts. The bad debts
provision is made on basis of an individual assessment of each debtor.
Investments in subsidiaries
Subsidiaries are companies in which the parent company has control, and thus the power to govern the financial and operating policies,
generally by owning more than half of the voting capital.
The cost method is applied as a principle for the investment in subsidiaries and associated companies in the company accounts. The
cost price is increased when funds are added through capital increases or when group contributions are made to subsidiaries. Dividends
received are initially taken to income. Dividends exceeding the portion of retained equity after the purchase are reflected as a reduction
in purchase cost.
Dividend/group contribution from subsidiaries are reflected in the same year as the subsidiary makes a provision for the amount.
Dividend from other companies is reflected as financial income when it has been approved.
Foreign Currencies
Conversion of foreign companies is done by translating the balance sheet to the closing rate, and the income statement to the average
exchange rate. Any significant transactions are translated at the transaction date.
Financial risk
For assessing the company's financial risks, see the discussion in the annual report.
Cash Flow statement
The cash flow statement has been prepared using the indirect method.
64
NORLANDIA HEALTH & CARE GROUP AS
2. INCOME TAXES
(NOK 1 000)
2022
2021
This year's income taxes
Payable tax
(31 405)
-
Changes in deferred taxes
-
(21 202)
Income taxes
(31 405)
(21 202)
Taxable income:
Profit/(loss) before taxes
153 450
176 538
Permanent differences
600
(145 347)
Changes temporary differences
5 979
(98 205)
Cut interest deduction
-
63 037
Provided intra-group contribution
(142 751)
-
Taxable income before losses carried forward
17 278
(3 977)
Utilised losses carried forward
(17 278)
Taxable income:
(0)
(3 977)
Payable tax in the balance:
Payable tax on this year's result
-
-
Total payable tax in the balance
-
-
Calculation of effective tax rate
Profit/(loss) before taxes
153 450
176 538
Calculated tax on profit/(loss) before taxes
33 759
38 838
Tax effect of permanent differences
132
(76)
Total
33 891
38 762
Effective tax rate
22%
22%
The tax effect of temporary differences and loss for to be carried forward that has formed the basis for deferred tax and
deferred tax and deferred tax advantages, specified on type of temporary differences:
2022
2021
Other differences
14 889
20 868
Total
14 889
20 868
Accumulated loss to be brought forward
-
(17 278)
Interest cost carried forward
(180 950)
(180 950)
Unrecognized in deferred tax
166 060
177 359
Basis for calculation of deferred tax
0
(0)
Deferred tax asset, 22%
0
(0)
ANNUAL REPORT 2022
65
3. EQUITY
(NOK 1 000)
Share capital
Share premium
Retained earnings
Total equity
Equity as of 01.01.2022
312 000
167 784
223 833
703 617
Group contribution to ultimate parent
-
-
(20 000)
(20 000)
Net income/(loss)
-
-
122 045
122 045
Equity as of 31.12.2022
312 000
167 784
325 878
805 662
(NOK 1 000)
Share capital
Share premium
Retained earnings
Total equity
Equity as of 01.01.2021
300 000
-
68 498
368 498
Capital increase
12 000
167 784
-
179 784
Net income/(loss)
-
-
155 335
155 335
Equity as of 31.12.2021
312 000
167 784
223 833
703 617
4. SHARE CAPITAL AND SHAREHOLDERS
Share capital
Number
Nominal Value
In balance
Ordinary shares
30 000 000
10,4
312 000 000
Shareholders
Number
Ownership
Nominal Value
In balance
Hospitality Invest AS
29 100 000
97,00%
10,4
302 640 000
Stork Industries AS
450 000
1,50%
10,4
4 680 000
Cowry EV AS
450 000
1,50%
10,4
4 680 000
Total
30 000 000
100,00%
10,4
312 000 000
The company has one class of shares and all shares have equal voting rights.
The shares held by the board of directors / CEO, ref. The Norwegian accounting law § 7-26:
Number
Ownership
Kristian A. Adolfsen
13 782 000
45,94%
Roger Adolfsen
13 782 000
45,94%
Yngvar Tov Herbjørnssønn
450 000
1,50%
5. INVESTMENT IN SUBSIDIARIES
Investments in subsidiaries are recognised according to the cost method.
(NOK 1 000)
Ownership/
voting right
Result (100%)
Balance
sheet value
Subsidiaries
Location
Norlandia Care Group AS
Bodø
100%
348 127
6 641
969 160
Kidsa Drift AS
Bergen
100%
208 221
(2 154)
220 446
Hero Group AS
Stavanger
100%
189 521
146 291
155 051
Aberia AS
Oslo
100%
104 601
11 652
193 952
Care Properties AS
Oslo
100%
27 396
11 136
50 000
NHC Eiendom AS
Oslo
100%
10 169
(2 248)
14 152
NHC Services AS
Moss
100%
186
959
3 968
NH Europe Holding AS
Oslo
100%
58 271
2 629
58 400
Balance sheet value 31.12.
1 665 128
66
NORLANDIA HEALTH & CARE GROUP AS
6. TRANSACTIONS WITH RELATED PARTIES
(NOK 1 000)
2022
2021
Receivables from related parties
Group contribution
327 121
45 683
Current group receivables
194 887
145 000
Non-current loans to group companies
503 501
745 552
Total receivable related parties
1 025 509
936 235
Payables to related parties
Group contribution
142 751
-
Current group liabilities
-
144 970
Total payables related parties
142 751
144 970
Income from subsidiaries
Group contribution
224 449
190 683
Interest income
37 345
34 451
Interest received from related parties
261 794
225 134
7. INTEREST-BEARING DEBT
(NOK 1 000)
2022
2021
Non-current liabilities
Bond loans
1 658 975
1 680 875
Accrued expense bond
(15 489)
(21 668)
Revolving credit facility
106 245
104 904
Total non-current liabilities
1 749 731
1 764 111
The bond is subject to Interest NIBOR/STIBOR +5.75%.
The maturity date of the bond loan is May 2025.
Balance sheet value of assets placed as security:
Subsidiaries
1 665 128
1 656 454
Total
1 665 128
1 656 454
In addition to its own subsidiaries, several of subsidiaries of the subsidiaries are placed as security for bond obligation.
ANNUAL REPORT 2022
67
8. PERSONNEL EXPENSES
(NOK 1 000)
2022
2021
Personnel expenses (including directors) comprise:
Wages and salaries
(1 525)
(2 109)
Social security contributions and similar taxes
(215)
(297)
Remuneration to Board of Directors
(600)
(600)
Total personnel expenses
(2 340)
(3 006)
Number of employees (FTE)
-
-
The company had no employees during 2022 and 2021. Wages and salary paid is for Group CEO (part of total compensation as
presented in note 5 of consolidated accounts).
Audit fees
The following amounts have been recognised as audit fees and related services during the period
(NOK 1 000)
2022
2021
Audit
(490)
(488)
Attestation services
-
(41)
Other services
(591)
(399)
Total
(1 081)
(928)
9. CASH AND CASH EQUIVALENTS
(NOK 1 000)
2022
2021
Restricted cash
3 876
3 819
Unrestricted cash
32 543
41 901
Total cash and cash equivalents
36 419
45 720
10. EVENTS AFTER THE REPORTING DATE
On 19 January 2023 the Company announced a successful placement of subsequent bond issue equivalent to NOK 522 million under
the company’s existing senior secured bond framework with ISINs NO0010997927 (the “NOK-tranche”) and NO0010997943 (the “SEK-
tranche”). The subsequent bond issue was split between a subsequent issue of NOK 180 million in the NOK-tranche of the bond and a
subsequent issue of SEK 352 million in the SEK-tranche of the bond. The net proceeds from the subsequent bond issue were utilized to
partly finance the acquisition of Frösunda Omsorg AB (“Frösunda”) including its parent company Brado AB (“Brado”). The acquisition
is in line with the previously communicated plan to combine the two groups to create a leading Nordic and North-European private
health and care provider.
In March 2023, the long-term credit facility was repaid. In replacement, the Company secured a short-term overdraft facility of NOK
350 million by DnB.
Independent auditor’s report
APRIL
2023
NHC Group