ANNUAL REPORT 2024
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2024
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2024
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2024
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2024
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NORLANDIA HEALTH & CARE GROUP AS
ANNUAL REPORT 2024
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NORLANDIA HEALTH & CARE GROUP AS
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NORLANDIA HEALTH & CARE GROUP AS
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NORLANDIA HEALTH & CARE GROUP AS
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NORLANDIA HEALTH & CARE GROUP AS
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NORLANDIA HEALTH & CARE GROUP AS
The board of directors’ report 2024
COMPANY
Norlandia Health & Care Group AS
(“NHC”) is a leading Nordic provider of
care services operating within the five
segments; Preschools, Care, Integration
Services, Individual & Family and Real
Estate. The parent company is
headquartered in Oslo, Norway.
OPERATIONS
Preschools
The Preschools segment operates 431
preschool units in Norway, Sweden,
Finland, Netherlands, Poland and
Germany. 32 of the units are owned 50%
and operated by Wekita (Germany) and
consolidated as an associated company.
The demographic development in
population varies within each country,
and our operations are mainly centrally
located within urban areas.
Care
Norlandia Care provides services within
institutional elderly care, patient hotels
and home care services in Norway,
Sweden and Finland. As of year-end
2024, 61 elderly care homes were
operated by Norlandia, of which 51 were
in Sweden, 2 were in Norway and 7 was
in Finland. 18 of the homes were own-
management projects, including
generation concepts (preschool and
elderly care). Norlandia also operates 1
patient hotel in Norway and 1 in Finland.
Additionally, Norlandia has 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 near 40 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
succeeded 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 number of
long-term contracts.
Individual & Family
The services within the Individual &
Family segment are provided by Aberia
and as from February 2023 Frösunda
Omsorg and Frösunda Personlig
Assistans. The division is a leading 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
NHC Property is a real estate developer
for Norlandia Health & Care Group (NHC).
As part of NHC’s business model, NHC
Property 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 10,696.4 million in 2023 to NOK
11,700.1 million in 2024.
Operating profit came in at NOK 515.0
million in 2024, up from NOK
434.2million in 2023. Net finance
amounted to NOK -568.6 million for the
year, influenced by net unrealized
currency gain of NOK 7.0 million and
interest expense on lease liabilities of
NOK 242 million.
Consequently, net profit decreased from
NOK -34.5 million in 2023 to NOK -36.2
million in 2024.
IFRS-16 was adopted on 1st January
2019, and had a net effect on profit
before tax, of NOK -81.4 million in 2024.
This is explained by increased
depreciation charges of NOK 923.7
million, finance charges of NOK 242.4
million and a reduction of real estate
gains of NOK 10.7 million, partially offset
by reduced leasing expenses of NOK
1,095.4 million.
The Group generated cash flow from
operating activities of NOK 1,570.2
million in 2024 up from NOK 1,313.1
million in 2023, positively affected by
change in working capital. Net cash flow
from investing activities amounted to
NOK -225.8 million, down from NOK -98.4
million in 2023, explained by investment
of shares in subsidiaries. Financing cash
flows amounted to NOK -1,250.0 million,
up from NOK -1,154.7 million in 2023, the
difference mainly explained by
repayment of debt and increased lease in
2024.
As of 31.12.2024, the Group had a cash
balance of NOK 440.2 million, up from
NOK 346.0 million one year prior. In
addition, the Group has a revolving credit
facility of NOK 500 million with DNB. As
of 31
st
million was drawn.
The Group had total assets of NOK
13,707.1 million per year-end 2024,
compared to NOK 13,133.4 million in
2023. Total non-current liabilities
amounted to 9,727.1 million, up from
2023, with the increase reflecting lease
liabilities.
Per 31
st
total equity amounted to NOK 899.7
million, down from NOK 943.5 million in
2023.
ANNUAL REPORT 2024
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The Group’s financial position is sound
and adequate to settle short-term
obligations with the Group’s liquid assets.
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 -11.2 million in 2024,
up from NOK -15.0 million in 2023. Net
financial items decreased from NOK 76.3
million in 2023, to NOK -77.6 million in
2024, reflecting interest paid on the bond
partly offset by less received group
contributions. Net income amounted to
NOK -88.8 million in 2024, down from
NOK 47.3 million in 2023.
Total assets per 31.12.2024 were NOK
4,034.1 million mainly consisting of
shares in subsidiaries which account for
50%.
Total liabilities per 31.12.2024 were NOK
2,894.0 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 75.4 million.
Total equity per 31.12.2024 amounted to
NOK 1,140.1 million, down from NOK
1,251.4 million in 2023.
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 2025 and the Group’s long-
term strategic forecasts. The Group’s
economic and financial position is sound.
Future challenges and market outlook
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.
Municipalities are experiencing
increasing financial pressures, driven by
tight budgets, rising costs of social
services and change in demography.
These constraints are making it more
challenging for municipalities to meet
growing service demands, particularly
within the healthcare and care sectors.
As a result, we believe there will be a
growing openness to involving private
operators who can offer both financial
flexibility and operational efficiency.
Where Private operators are involved as
strategic partners, and capable of
delivering quality services, contributing
capital, and sharing operational risk,
these municipalities have higher quality
and lower total cost for services. The
current economic landscape is creating a
window of opportunity for private
operators to position themselves as
reliable and value-adding partners to the
public sector.
In December 2023, 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.
The workforce is our highest valuable
asset. The availability of remains
challenging, with demographic trends,
competition for labor, and shifting
expectations placing increasing pressure
on recruitment and retention. An aging
population is not only driving higher
demand for healthcare services but also
reducing the available pool of working-
age individuals, particularly in rural and
smaller municipalities. At the same time,
high levels of sick leave are straining
operational capacity and increasing the
burden on remaining staff. These
dynamics underscore the importance of
proactive workforce strategies, including
investment in leadership, training, work
environment improvements, and more
flexible employment models to ensure
stable service delivery in the years ahead.
Within Preschools our revenue continued
the strong growth as units are maturing.
At the same time the demographic
development has an impact and the
volatility during the year has increased.
Combined with too low financing from
municipalities and high sick leave the
need for excellence in staffing is
essential. Our Scandinavian operation are
delivering healthy margins despite cost
for municipality preschools are
significantly higher than at private
operations.
Our other international operations
continue to perform well, with solid
growth in revenues and profitability,
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NORLANDIA HEALTH & CARE GROUP AS
despite inflation and tight labor market.
The ramp-up phase in Poland is ongoing
and occupancy is showing steady growth
and reported profit for 2024. 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 deliver
improvements as expected with maturing
own management units and stronger
operational performance. Combined with
catch-up on price levels Care has
delivered improvements of more than
NOK 40 million compared to 2023. The
long-term fundamentals for Care remain
strong, and 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 care
services need to adopt these trends and
need innovations.
Our operation in Norway is limited due to
the low number of tender contracts.
However, we expect an increase in the
number of tenders and the need for
innovative deliverables. In 2025
Norlandia were awarded two new tender
contracts in Oslo, which demonstrate
municipalities being more open to new
business models to have better use of
staff.
In Finland, our operations continue our
steady growth with several new openings
during 2024. We will have some start -up
cost for the new openings, but remain
confident that these units will contribute
positively, once matured.
In Sweden, competition is intense and
profit margins are thin. Although efficient
operations and normalized occupancy
will enable positive profitability, the shift
towards own management operations,
improved operation we see a strong
development in profit margins.
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 Ukrainian
refugees. The work is continuing with
intense focus and Hero aims to adapt to
meet the current need.
Hero currently operates multiple ordinary
reception centers in Norway and is the
only company with frame-agreements in
all regions. Our Norwegian operation for
accommodation now accounts for 70% of
the Integration Service. Germany have
experienced a significant inflow of
refugees during 2023 and 2024, 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 are
growing and still reaching new record
high levels in numbers of assignments
and solid profitability.
Hero is positioned to deliver solid
revenues and healthy profitability also
when the Ukrainian crisis ends. Hero will
remain a mobilized tool for immigration
authorities to host asylum seekers and
migrants in a respectful and dignified
way.
In Norway, Aberia and continue the
strong development, both in terms of
revenue and profitability. The majority of
the growth has been achieved organically
through tender wins within our core
operations. The operations are strong on
quality and reputation, demonstrating
the increase volume.
Following the acquisition of Frösunda in
Sweden, our Individual & Family segment
significantly increasing the segment’s
turnover and providing more stability in
terms of profitability and diversification.
The consolidation was 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. Individual & Family segment has
now become one of the main pillars of
the operations in NHC and a solid
contributor to the higher diversification.
2024 was another solid year for the Real
Estate segment. During 2024 we have
continued to develop our portfolio of
properties and successfully secured
financing for further growth and
successfully closed transactions to secure
further growth. 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.
With a growing need for services within
welfare, we observe a strong demand for
social infrastructure that we provide
within our Real Estate division. The
number of elderly people is increasing,
and the current capacity is significantly
lower than the future requirements.
Existing infrastructure especially within
Care and Preschools in the mature
markets is aging and needs to be
replaced by new modern
buildings suited to provide high quality
welfare services. With the future lack of
personnel, new innovations are needed,
to provide better and more efficient
infrastructure and social meeting points.
NHC Property has a well-diversified
pipeline with both long- and short-term
projects, including existing concepts and
innovative property projects. The overall
market for commercial real estate has
been heavily challenged throughout the
last years with significant yield increases
across real estate segments. Increasing
interest rates and unstable economic
conditions globally have dried up both
ANNUAL REPORT 2024
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the transaction and development
markets in general. Although we have
seen a slight softening in yields in our
sales processes, we note that we
outperform the overall markets
significantly in terms of yield increase.
NHC is regarded as a solid lease
counterpart with a healthy portfolio and
good diversification. Furthermore, we
still experience high demand for our
properties and healthy returns on
investments. We believe this is a result of
our companies being perceived as solid
long-term tenants, strong company
history, rational investment strategy and
long-term collaborations.
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, and the 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
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 earnings.
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 more than 40%
of revenues are generated in SEK.
However, the Group has a corresponding
share of costs in SEK and about 50% 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
four directors, including the two largest
shareholders and two independent
directors. 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
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NORLANDIA HEALTH & CARE GROUP AS
monthly to the Group Management.
These monthly reports also include
financials per segment, which are
analyzed and addressed against set
budgets.
In connection with the 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 ~19,000 in 2024. 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.
In 2024, there is still a high level of leave
of absence, as reflected in the overall
market.
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=8): 37% women;
country managers (n=14): 57% women;
extended management group (n=56):
43% women. In sum, we are doing quite
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 formal Transparency Act statement,
with results from the risk assessments
and gap analysis, were made available on
www.nhcgroup.no
. The statement for
2024 will be published on
NHC’s website
before 30 June 2025 and can then be
downloaded from
www.nhcgroup.no
.
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 for all resources that fall 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 2024 our divisions – Preschools,
Care and Hero Tolk (a part of Hero group)
– are partly or fully certified on ISO
14001:2015 and/or ISO 9001:2015
certified. See also our CSRD-chapter 1.1.1
where we document our deep and wide
range of environmental and sustainability
actions.
ALLOCATION OF INCOME IN THE
PARENT COMPANY
Norlandia Health & Care Group AS’ result
for 2024 ended at NOK -88.8 million. The
Board of Directors has proposed the net
loss of Norlandia Health & Care Group AS
to be covered by follows: NOK -88.8
million from 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 Group.
ANNUAL REPORT 2024
23
Oslo, 25 April 2025
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
Linda Hofstad Helleland
Member of the Board
Yngvar Tov Herbjørnssønn
CEO
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NORLANDIA HEALTH & CARE GROUP AS
Statement from the Board of Directors
Norlandia Health & Care Group AS’
consolidated financial statements have
been prepared in accordance with IFRS®
Accounting Standards as issued by the
International Accounting Standards
Board (IASB®) and endorsed by the
European Union (EU),
and the additional
Norwegian disclosure requirements
following the Norwegian Accounting Act
as of 31.12.2024. 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 31.12.2024.
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
31.12.2024.
We confirm to the best of our knowledge
that:
●
The consolidated and separate annual
financial statements for 2024 have
been prepared in accordance with
applicable accounting standards, and
that
●
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 31.12.2024, for the Group
and the Parent company, and that
●
The Board of Directors’ report gives a
true and fair view of the development,
performance, financial position,
principal risks and uncertainties of the
company and the Group, and that
●
The Board of Directors’ report, where
required and in all material respects,
have been prepared in accordance with
sustainability related disclosure
standards laid down pursuant to the
Norwegian Accounting Act section 2-6,
including implementation of the
Corporate Sustainability Reporting
Directive (CSRD), and compliance with
the European Sustainability Reporting
Standards (ESRS) and Article 8 of EU
regulation 202/852 (the “Taxonomy
Regulation”).
Oslo, 25 April 2025
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
Linda Hofstad Helleland
Member of the Board
Yngvar Tov Herbjørnssønn
CEO
ANNUAL REPORT 2024
25
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NORLANDIA HEALTH & CARE GROUP AS
NHC Group Sustainability Statement
1.
General Information [ESRS 2]
NHC Group’s sustainability statement has been prepared in compliance with the Corporate Sustainability Reporting
Directive (“CSRD”) and the European Sustainability Reporting Standards (“ESRS”), as implemented in the Norwegian
Accounting Act (“NAA”). NHC Group has conducted a double materiality assessment as required by the NAA and as
further specified in the ESRS. The results of the double materiality assessment will be considered and reflected in
the Company’s governance, strategy, risk, performance measurement, and external reporting.
This marks the first instance of NHC Group reporting in alignment with CSRD and ESRS. Comprehensive efforts have
been undertaken to translate the quantitative and qualitative disclosure requirements into pertinent descriptions
and data points. As a guiding tool, NHC Group has utilized the implementation guides provided by the European
Financial Reporting Advisory Group (EFRAG), particularly the 'Implementation guide 3': List of ESRS Data Points (IG-
3). The quantitative ESRS data points in this report are identified with the ESRS ID number as per IG-3.
Only ESRS data points identified as material under the double materiality assessment and mandatory under the
ESRS are reported. Voluntary data points are excluded. Furthermore, NHC Group adheres to ESRS recommendations
regarding one- or three-year phase-in periods, with these data points to be reported in 2025 and 2027,
respectively.
All data points in this sustainability statement are subject to limited assurance. The quantitative data points
included in the scope of limited assurance for 2024 are specifically marked (n) in the ESG tables.
Going forward, NHC Group will continue to evaluate and enhance its disclosures in accordance with the ESRS
requirements.
1.1 BASIS FOR PREPARATION
1.1.1 General basis for preparation of the sustainability statement [BP-1]
The sustainability statement has been prepared on a consolidated basis with the same scope of consolidation as
the financial statements for the fiscal year from 1 January 2024 to 31 December 2024, in accordance with the
applicable regulatory framework.
No subsidiary undertakings included in the consolidation are exempted from consolidated sustainability reporting
pursuant to Articles 19a (9) or 29a (8) of Directive 2013/34/EU.
The sustainability statement outlines the impacts, risks, and opportunities of NHC’s own operations, as well as
those within the value chain where they are material both upstream and downstream. The inclusion of policies,
actions, targets, and metrics related to the value chain varies and is specified accordingly. This report provides an
overview of relevant activities, impacts, and dependencies within the value chain to reflect NHC’s sustainability
performance.
NHC Group has not used the option to omit classified or sensitive information or specific pieces of information
corresponding to intellectual property, know-how, or the results of innovation as per ESRS 1 section 7.7.
NHC Group has not used the exemption for impending developments or matters in the course of negotiation
allowed under the Norwegian Accounting Act section 2.4.4.
ANNUAL REPORT 2024
27
1.1.2 Disclosures in relation to specific circumstances [BP-2]
Sources of estimation and outcome uncertainty
As part of the double materiality assessment, NHC has assessed financial materiality. The thresholds for assessing
low, medium and high, the financial annual EBIT effect is defined as follows: up to 40 million NOK (low), 40-80
million NOK (medium), and over 80 million NOK (high). The categorization of the financial effect of risks and
opportunities is based on management’s best estimate. However, these assessments are forward-looking and
based on discretion, hence related to uncertainty. NHC will aim to reduce this uncertainty in future assessments.
NHC Group aims to disclose data as correctly and accurately as possible using primary data. The Group has not
reported metrics that include upstream or downstream value chain data that are estimated using indirect sources.
Any potential sources of uncertainty, assumptions, or estimates are described in the relevant disclosure point.
Other legislation
NHC Group's statutory reporting on gender representation is conducted in accordance with the requirements set
forth in Norwegian law, including the Norwegian Equality and Anti-Discrimination Act, as well as European Union
regulations, such as Directive 2013/34/EU and the CSRD. This ensures compliance with both national and EU-level
obligations regarding gender diversity disclosure.
NHC Group also adheres to the obligations in the Norwegian Transparency Act.
Use of Phase in provisions in Accordance with Appendix C of ESRS 1.
This use of phase-in in accordance with ESRS 1 Appendix C is not applicable to NHC Group as a company with over
750 employees
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NORLANDIA HEALTH & CARE GROUP AS
1.2 GOVERNANCE
1.2.1 The role of the administrative, management and supervisory bodies [GOV-1]
Members
Executive
members
Non-
executive
members
Experience
relevant to
sectors/locations
of NHC Group
Gender
Other
diversity
aspects
Independent
board
members
M
F
O
NHC Board
Kristian
Adolfsen
X
Hotel, Care,
Staffing, Education,
Real estate
X
Roger
Adolfsen
X
Hotel, Care,
Staffing, Education,
Real estate
X
Linda
Hofstad
Helleland
X
Minister Norwegian
Government,
WADA
X
X
Ingvild
Ragna
Myhre
X
Telecom,
Engineering,
Technology
X
X
Total
2
2
50%
50%
0%
50%
The board of directors of NHC Group comprise of the following board members:
Kristian Arne Adolfsen, founder and chairman of the board of directors
Kristian has an MBA from the University of Wisconsin and a Master of Science in Business Administration from the
Norwegian Business School, BI (siviløkonom). He has more than 30 years of business experience. He has founded
several companies within the Adolfsen Group and holds several directorships.
Roger Adolfsen, founder and board member
Roger has an MBA from the University of Wisconsin and a Master of Science in Business Administration from the
Norwegian Business School, BI (siviløkonom). He has more than 30 years of business experience. He has founded
several companies within the Adolfsen Group and holds several directorships.
Ingvild Ragna Myhre, board member
Ingvild qualified as a Chartered Electro Engineer at the Norwegian University of Science and Technology (NTNU).
She was formerly the Managing Director of Alcatel Telecom, Telenor Mobile and Network Norway. Ingvild is
currently self-employed. She has had, and continues to hold, several directorships in public and private enterprises.
Linda Hofstad Helleland, board member
Linda holds an education from the Norwegian University of Science and Technology (NTNU) and the Norwegian
Business School (BI).She is currently a member of the Norwegian Parliament, and she has previously held several
ministerial positions; she was Minister of Culture from 2015 to 2018, Minister of Children and Equality from 2018 to
2019, and Minister of Districts and Digitalization from 2020 to 2021.
As follows from the composition of the board, there is no representation of employees or other workers.
ANNUAL REPORT 2024
29
Board of Directors
The Board of Directors has the overall responsibility for the group’s sustainability matters and handles this
collectively. Specific sustainability related topics of interest to the board include employee satisfaction, sick leave,
work-related injuries, customer satisfaction, and business conduct.
NHC Group hold a minimum of four board meetings per calendar year. The dates of the Company’s board meetings
and the planned topics for each meeting are outlined in the board’s annual plan, which is approved in September
each year. The annual plan covers topics such as financial performance, liquidity, market developments, strategy,
sustainability matters, and compliance. The plan is structured so that four board meetings approve the company’s
quarterly reports and annual report before they are published on the Oslo Stock Exchange website due to a listed
bond. The board also convenes for additional meetings when significant decisions need to be made, including
major investments or refinancing.
The board’s responsibilities, including the division of duties between the board and management, are outlined in
the Company’s Corporate Governance Handbook. The Handbook is approved by the board and updated as needed.
Sustainability matters, including following up on main impacts, risks and opportunities, is organized through the
administration and the board is updated on such matters at least annually.
The board has decided that it will also function as the company’s audit committee. Procedures and guidelines have
been established for the audit committee’s work, including an annual plan with recurring topics to ensure
continuous improvement and oversight.
Company Management
The company’s management consists of Yngvar Tov Herbjørnssønn (CEO NHC Group), Roger Larsen (CFO NHC
Group), Linn Therese Greaker Bjørndal (CoS NHC Group), Kristin Voldsnes (CEO, Preschool Scandinavia), Trine
Bakkeli (CEO, Individual & Family), Tor Brekke (CEO, Integrations services), Erlend Haugseth (CEO, NHC Property)
and Olli Lethisalo (CEO, Preschool International). The NHC Group CEO is ultimately responsible for sustainability
matters, and this topic is currently delegated to the Director for Quality, Sustainability and Organization.
NHC Group is organized in six different segments: Preschool Scandinavia, Preschool International, Individual and
Family, Integrations services, and Property. Management and the CFO holds monthly Business reviews the status
and key developments in the different segments of the NHC Group, including managing and overseeing main
impacts, risks, and opportunities.
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NORLANDIA HEALTH & CARE GROUP AS
NHC Group applies controls and procedures for the management of impacts, risks, and opportunities through
broader risk management frameworks, internal policies, or general business processes rather than creating
separate frameworks.
While these functions are not formally integrated as a standalone system, NHC Group continuously evaluates its
internal processes and will consider developing dedicated controls in the future to enhance management of
impacts, risk and opportunities across internal functions. The oversight of targets related to target setting is
managed through a governance framework that involves the executive management team. The board of directors
provides strategic oversight, ensuring that targets align with corporate objectives, regulatory requirements, and
stakeholder expectations. Executive management team is responsible for setting these targets, defining key
performance indicators, and overseeing their implementation across the operating segments. Monitoring progress
towards these targets is an ongoing process, with regular business reviews. Segments report on their progress
monthly, allowing leadership to assess performance, address challenges, and implement corrective actions when
necessary. Internal reporting mechanisms support this oversight, while external disclosures through annual reports
or sustainability statements enhance transparency and accountability.
Data-driven insights and monitoring tools help track progress, while stakeholder engagement provides valuable
input for continuous improvement.
Financial Reporting
NHC Group publishes quarterly interim financial statements in addition to annual financial statements. The reports
comply with legal and regulatory requirements and are prepared in accordance with adopted accounting principles,
following the timeline set by the board. The financial close process, financial reporting, and key risk analysis are
reported monthly to the group management of each portfolio company and consolidated on a quarterly basis. The
finance function of each segment is responsible for reporting financial figures through the group’s consolidation
system, Cognos.
The board reports, including financial and qualitative data for each segment, are reviewed by the board. The
reports include sustainability indicators that the Group use for decision-making, including sick leave, employee
satisfaction, and customer satisfaction. The respective reports will be updated in 2025 to reflect all topics defined
as material to the group.
NHC Group has reporting routines and risk management processes in place within each segment, these routines
focus on identifying and managing impacts, risks as well as capturing opportunities.
ANNUAL REPORT 2024
31
Corporate governance and sustainability
Responsibility for corporate governance oversight, including sustainability-related efforts, is delegated to the Chief
of Staff. The group’s principles and procedures for corporate governance are documented in a Corporate
Governance Handbook, approved by the Board of Directors of NHC Group. The governance principles and
procedures are implemented across all segments, with necessary adjustments based on the nature, size, and risk
profile of each business.
NHC Group has established an ESG committee, led by the Group Director of Sustainability and Organization,
consisting of the following members:
●
Dag Rune Gabrielsen, Group Director Quality Sustainability & Organization
●
Jonas Jarborn, Strategy & Development director Norlandia Care
●
Elisabeth Eggan, Strategy & Development director Preschool Scandinavia
●
Jonas B Jonas, Chief of Staff, Individual & Family
●
Jorien Blesgraaf-Coops, Country Manager Preschool Netherlands
●
Venla Lampu, Business Controller NHC Group
●
Terje Sandaa, Project Manager, NHC Property
●
Tellef Grønlie, Head of HR and Development, Hero Group
To ensure competence in sustainability reporting and compliance, the NHC Group sustainability team has engaged
consultants from Deloitte and Æra Strategic Innovation throughout 2024. Group Director Quality Sustainability &
Organization, Dag Rune Gabrielsen, has attended courses to develop relevant knowledge and competence related
to CSRD in general as well as material impacts and risks specifically.
Segment organization
The NHC Group is divided into six segments: Care, Integration Services, Individual and Family, Preschools
International, Preschools Scandinavia and Property. The segmental CEOs report to the NHC CEO.
Each segment operates independently with highly competent management teams. The CEO of each segment is
responsible for corporate governance oversight, including sustainability efforts, within their respective company.
Each CEO builds their leadership team and ensures that it possesses the necessary competence to manage all
aspects of the business, including sustainability-related responsibilities. CEOs have appointed sustainability
representatives within their companies to oversee sustainability work in daily operations and to report to the group
Management Team at NHC Group. Each segment’s CEO is responsible for ensuring that the appointed sustainability
representative has the necessary competence to fulfill this role. At the same time, the sustainability team at NHC
Group provides additional expertise across the Group’s companies—both through internal resources and external
support.
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NORLANDIA HEALTH & CARE GROUP AS
Follow-up of segments
In addition to financial reporting through the group’s consolidation system, operational follow-ups of subsidiaries
are conducted regularly. The responsibility for overseeing various segments and their business units is divided
among the CEO, CFO and CoS of NHC Group. Group management is actively involved in monitoring each segment.
Sustainability integration
Activities related to sustainability is part of the strategy. For many years, we have expressed our desire to be a
welfare innovator. Sustainability is therefore anchored within senior management and from there, throughout our
corporate governance structures.
1.2.2 Information provided to and sustainability matters addressed by NHC Group’s administrative, management
and supervisory bodies
List of the material impacts, risks and opportunities addressed by NHC Group’ administrative, management and
supervisory bodies, or their relevant committees, and presented the Groups board of Directors during FY 2024.
Description of the impact risk or opportunity
Impact
Classification
(I, R or O)
Where it was addressed
(administrative, management,
supervisory body or other
committee)
Own workforce, working conditions, secure
employment,
use of temporary contracts, part-time
contracts and hired personnel. Secure employment
relates to job security and contract types. The use of
temporary contracts, part-time contracts and hired
personnel as opposed to permanent full-time employees
might represent a negative impact for people.
Negative
I
ESG Committee
Group Management team
Board of directors
Own workforce, working conditions, secure
employment, i
nsufficient access to qualified personnel
leading to delivery failure or increased costs from temp
hire. The staffing norm is contractually defined, but there
is a risk of insufficient access to qualified personnel. This
could lead to service delivery failures and penalties, or
increased costs from hiring temporary staff.
Negative
R
ESG Committee
Group Management
Team
Board of directors
Own workforce, working conditions,
employees can be injured at work and get work-related
diseases. Unhealthy and unsafe workplaces can lead to
increased injuries and work-related diseases among
employees, resulting in higher sick leave ratios, and
negative impact on their health. The nature of the
industry in which NHC operates implies that there is for
example heavy lifting, risk of injuries and work-related
diseases. This may cause that we loose trust and loyalty
from our staff, that again turns to high sick leave and
turnover.
Negative
I
ESG Committee
Group Management team
Board of directors
Consumers and end-users, personal safety of consumers
and/or end-users, health and safety.
the personal safety of consumers and/or end-users (for
example, health and safety, security of a person, and
protection of children) through inadequate service
offerings, poor solution design, and ineffective lifecycle
management can lead to serious harm. This neglect can
result in health risks, security breaches, and
Negative
I
ESG Committee
Group Management team
Board of directors
ANNUAL REPORT 2024
33
endangerment of vulnerable groups ,as patients and
children.
Business conduct, corporate culture,
ethical corporate culture for the company and
stakeholders. As a value-driven organization, NHC has
established a foundation for fostering a healthy culture
across the organization. This positive culture enhances
service quality and also positively influences other
activities, leading to overall organizational success.
Positive
I
ESG Committee
Group Management team
Compliance team
Board of directors
Risk management is generally integrated in the NHC Group’s business planning process and performance review. As
part of the business plan process, the segments perform a risk assessment with the aim of identifying risks and
opportunities for each segment. Based on this assessment, the segments define risk mitigating measures and
opportunity enhancing measures as an integrated part of the business plan.
NHC also performs due diligence in accordance with the Norwegian Transparency Act. This due diligence process
follows the OECD Guidelines for Multinational Enterprises and focus on human rights and decent working
conditions. The segments provide their input to the assessment which is then consolidated for the Group and
accounted for in an annual public statement which is approved by the Board of Directors.
The NHC Group’s consolidated risk and opportunities picture is made based on reported mapping from the
segments. This consolidated picture is reported to the Board of Directors and to the Group Management Team an
annual basis, or if any changes in the risk and opportunities picture occurs during the year.
As part of following up the business plan, monthly business reviews (BR) are held with each of the segments.
Extended business reviews are conducted quarterly, in which the segments also report on business plan progress,
and in 2025 the plan is to start reporting any changes in material impacts, risk and opportunities.
Following the methodology arising from CSRD, the NHC Group has during the reporting period conducted a double
materiality assessment (DMA), in which it has identified specific material impacts, risks and opportunities. These
have been presented and addressed by both the Group Management Team and the Board of Directors.
The results and effectiveness of policies, metrics, actions and targets adopted to address the material impacts, risks
and opportunities will also be considered and followed up as part of the extended business reviews.
1.2.3 Integration of sustainability-related performance in incentive schemes [GOV-3]
NHC does not offer incentive schemes to members of the administrative, management and supervisory bodies that
are linked to sustainability matters.
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NORLANDIA HEALTH & CARE GROUP AS
1.2.4 Statement on due diligence [GOV-4]
In the following table a mapping that explains how and where NHC Group has applied the main aspects and steps of
its due diligence process (as per ESRS 1 chapter 4) in this sustainability statement.
Core elements of due
diligence
Paragraphs in sustainability statement
Page
a.
Embedding due
diligence in
governance,
strategy, and
business model
This is addressed under:
●
ESRS 2 GOV-2: Information provided to and sustainability matters
addressed by the undertaking’s administrative, management and
supervisory bodies
●
ESRS 2 SBM-3: Material impacts, risks and opportunities and their
interaction with strategy and business model
●
ESRS S1 S1-1: Policies related to own workforce
●
ESRS S4 S4-1: Policies related to consumers and end-users
33
48
65
78
b.
Engaging with
affected
stakeholders in
all key steps of
the due
diligence
This is addressed under:
●
ESRS 2 SBM-2: Interests and views of stakeholders
●
ESRS 2 IRO-1: Process to identify and assess material impacts, risks and
opportunities
●
ESRS S4 S4-1: Policies related to consumers and end-users
43
48
78
c.
Identifying and
assessing
adverse
impacts
This is addressed under:
●
ESRS 2 SBM-3: Disclosure of material impacts, risks and opportunities
●
ESRS 2 IRO-1: Process to identify and assess material impacts, risks and
opportunities
45
48
d.
Taking actions
to address
those adverse
impacts
This is addressed under:
●
ESRS S1 S1-1: Processes for identifying actions
●
ESRS S4 S4-3: Process to remediate negative impacts and channels for
consumers and end-users to raise concerns
65
82
e.
Tracking the
effectiveness of
these efforts
and
communicating
This is addressed under:
●
ESRS 2 GOV-2: Information provided to and sustainability matters
addressed by the undertaking’s administrative, management and
supervisory bodies
●
ESRS S1 S1-1: Policies related to own workforce
●
ESRS S1 S1-3: Processes to remediate negative impacts and channels
for own workers to raise concerns
●
ESRS S4 S4-2: Processes for engaging with consumers and end-users
about impacts
●
ESRS S4 S4-3: Process to remediate negative impacts and channels for
consumers and end-users to raise concerns
●
ESRS S4 S4-4: Taking action on material impacts on consumers and
end-users, and approaches to managing material risks and
opportunities related to consumers and end-users, and effectiveness
of those actions [S4-4]
●
ESRS S4 S4-5: Targets related to managing material negative impacts,
advancing positive impacts and managing material risks and
opportunities
●
ESRS G1 G1-1: Business Conduct Metrics and Targets
33
65
68
81
82
83
85
87
1.2.5 Risk management and internal controls over sustainability reporting [GOV-5]
The data collection process related to the DMA and the preparation of a final CSRD report was subject to risk
management as further described below and will be assessed on an annual basis. The Group assesses risks
associated with incomplete or inconsistent sustainability reporting, including risks related to the accuracy of data
and manual errors when consolidating data from different systems and from different countries.
ANNUAL REPORT 2024
35
The Board of Directors oversees financial and sustainability reporting and is informed about actions and progress
on essential sustainability metrics and targets on a regular basis, at least once per year.
As this is the first year of sustainability reporting according to CSRD, the risk management and internal controls
process have been implemented at a best effort basis.
NHC Group plans to improve the process for risk
management and internal controls for sustainability reporting in 2025 based on the lessons learned from this first
year of reporting. This will include data collection, validation, review, and reporting. The aim is to create a system
that ensures sustainability data is complete and reliable, thereby supporting informed decision-making and
transparent reporting.
Based on this year’s best effort basis,
NHC Group will further develop the risk assessment approach for
sustainability-related risks. This process will consider both the likelihood and impact of potential risks. Risks will be
categorized and ranked using a defined methodology, allowing the company to focus on the most critical areas
effectively. This approach is intended to ensure that significant risks are addressed efficiently and effectively.
Key risks identified and mitigation strategies
NHC Group has preliminarily identified several key risks related to the sustainability reporting.
●
Data inaccuracy risk
●
Data integrity and quality risk
●
Supply chain data reliability risk
●
Compliance and regulatory risk
●
Data accessibility and system failure risk
To address identified risks related to data integrity and accuracy, NHC Group is in the process of improving specific
control measures. These measures aim to include validation steps within our reporting systems.
In the 2024 sustainability reporting, we have not implemented specific control mechanisms to address inherent
risks in the reporting process, but the materiality analysis—including the identification of material topics and the
overall outcomes—has been reviewed and validated by members of the executive management team as well as the
ESG committee. To ensure completeness and relevance, we conducted sector benchmarking by comparing our
identified material topics with those of peers in the same industry, allowing us to detect potential gaps or outliers.
Additionally, we engaged the external consultancy Æra Strategic innovation to provide guidance and assurance.
Their third-party review covered our methodology, the stakeholder engagement process, and the results of the
materiality analysis.
In relation to the DMA analysis, we have identified and addressed several specific risks. One such risk is insufficient
stakeholder engagement, which could lead to materiality results that do not accurately reflect stakeholder
concerns. To mitigate this, we applied structured and well-documented engagement methods, including interviews,
and ensured that a diverse stakeholder group was involved. Another identified risk relates to poor documentation
of the assessment process, potentially undermining the transparency and traceability of results. This has been
addressed through documentation of the methodology, stakeholder input, decision-making processes, and the
criteria used for determining materiality. Finally, we acknowledged the risk of inconsistent application of the double
materiality principle, where environmental, social, and financial impacts might not be properly assessed. To
manage this, we used standardized criteria for both impact materiality and financial materiality and engaged cross-
functional teams throughout the process to ensure consistency and relevance.
Risk management and internal control is primarily handled within each segment and each segment is obligated to
report on risk associated with their respective business, including risk associated with sustainability data specific for
the segment, and implement appropriate controls. Any development in risk will be reported to the Management
Team as needed. The Director Quality, Sustainability and Organization maintains an overall risk assessment of
sustainability reporting and determines the level of internal controls required for each process, depending on the
materiality of the risks, strategy, business model and value chain [SBM-1].
36
NORLANDIA HEALTH & CARE GROUP AS
1.3 STRATEGY
1.3.1 Strategy, business model and value chain [SBM-1]
NHC Group sustainability strategy and business model disclosure
NHC Group’s aspiration is to be a welfare innovator, delivering high-impact services for children, patients, elderly
people, and immigrants, designed to support confident, active individuals and communities. NHC Group operates in
the welfare sector, providing care services for the elderly, preschool operations, individual and family services,
integration services and property management.
Sustainability is anchored within our Board of Directors throughout our corporate governance structures.
The NHC Group also has a sustainability-linked financing agreement, which incentives the achievement of specific
ESG KPIs.
Our success is driven by a workforce where secure employment as well as the health and safety of our employees
and end-users are key to individual and societal wellbeing.
We extend our commitment to sustainability through our value chain, to protect workers' rights and balancing
environmental and societal goals.
Our governance framework promotes a responsible company culture through clear policies, routines, and
transparent reporting, fostering continuous improvement and ethical conduct.
NHC Group offers a diverse range of services across various welfare sectors. NHC Group is also present in different
countries within the Nordics as well as in northern Europe. The company operates in a personnel-intensive industry
and holds a large customer base with approximately 33 000 users receiving various welfare services. The company's
core services include elderly care (residential facilities and home care services), preschool education, and individual
and family support services. During the reporting period, no major changes have occurred to the service offering of
the Group although we continue to develop our offerings. Examples of this development include introducing new
digital home care solutions aimed at enhancing service delivery efficiency and accessibility and opening new units
in several of the operational segments within the group. These changes reflect the company’s strategic focus on
optimizing resources and meeting demographic needs.
Integration Services
Hero provides services for refugees and immigrants in Norway and Germany. Our services include reception
centers, interpretation services and integration services. Our goal is to enable a new future for newcomers and help
them become contributors to the highly developed welfare systems of the Scandinavian countries. These systems
are based on high employment rates for both men and women and require effective integration of new citizens.
The business model is centered around providing integration services to refugees and asylum seekers, primarily
through procured contracts with public authorities. These contracts define the scope and quality standards of the
services delivered, forming the foundation of the organization’s revenue stream.
The organization operates mainly in Norway and with activities in Germany concentrated in the Berlin area. While
operations in Germany are regionally focused, the presence in Norway spans a widespread and often rural
geography, requiring a flexible and scalable operational setup.
A key component of the business model is the use of properties adapted to meet the specific needs of refugee
populations. These facilities are often relatively large buildings that are leased rather than owned, enabling rapid
deployment and adjustments to change volumes and demands. The properties are tailored to support the social
ANNUAL REPORT 2024
37
and practical needs of residents, including communal spaces and facilities for activities, education, and basic
healthcare.
The upstream part of the value chain plays a critical role in ensuring consistent service delivery. Key suppliers
include those providing food and other essential consumables required for daily life at the facilities. Strong
relationships and efficient logistics with these suppliers are essential to maintain quality and cost control.
Overall, the organization creates value by combining public sector partnerships, localized service delivery, tailored
infrastructure, and an efficient supply chain to support the integration journey of refugees and asylum seekers.
Education and sustainability are essential ingredients for our vision of enabling a new future. Our key sustainability
priorities are educating our employees and residents. All our work in Hero has to do with integration and inclusion.
We accommodate newly arrived asylum seekers, teach language skills and support immigrants struggling to enter
the labor market. We are aware that our effort can be crucial for individuals and of great importance for the society
at large.
Care
Norlandia Care operates nursing homes, home care services and patient hotels, in Norway, Sweden, and Finland.
Our services are a supplement to the offerings of municipalities and the public health care sector, and we operate
within the framework of the welfare model.
The business model for Care is built on the provision of high-quality services through long-term contracts procured
from municipalities in Sweden and Norway, as well as welfare areas in Finland. These contracts form the basis for
predictable revenue streams and define the service requirements and regulatory frameworks within which the
organization operates.
With approximately 65 care units across Norway, Finland, and Sweden, the organization has a strong presence in
the Nordics. The service portfolio includes nursing homes, home care services, and patient hotels, allowing for a
broad offering tailored to the varying needs of elderly individuals across the care continuum.
The upstream part of the value chain involves key suppliers of food, consumables, uniforms, linen, clothing and
healthcare materials. These suppliers play a critical role in enabling day-to-day operations and ensuring that care
units have access to the necessary resources to meet both clinical and everyday needs efficiently and reliably.
By combining strong local presence, contractual stability, diversified care offerings, and an efficient supply chain,
the organization is well-positioned to meet the growing demand for elderly care in the Nordic region.
Sustainability in elderly care is about ensuring a safe and secure environment for both clients and employees.
Providing high-quality care requires not only physical safety but also emotional well-being, dignity, and respect.
A sustainable workplace means offering Secure employment, fair working conditions, and a healthy work
environment where employees feel valued and supported. Since elderly care relies heavily on human interaction,
company values and organizational culture play a crucial role in delivering compassionate and professional services
focusing on health and safety of our end users by fostering a strong and ethical workplace culture, we ensure high
standards of care and long-term sustainability in the sector.
Preschool
Norlandia Preschools operates preschools and after school care. Our aim is to teach the children in our preschools
to be curious, to explore the world and to develop their own ideas. Through our preschool operations, we can
impact the behavior of future generations.
The business model for preschool services is centered on delivering high-quality early childhood education and care
through a network of more than 400 locations across six European countries: Norway, Sweden, Finland, the
Netherlands, Poland, and, through part-ownership, Germany.
38
NORLANDIA HEALTH & CARE GROUP AS
In the larger markets, such as Norway and Sweden, the business is structured into regional organizations to ensure
strong local anchoring, operational efficiency, and responsiveness to municipal requirements and parental
expectations. The organization operates mainly through publicly funded contracts depending on the country-
specific regulatory framework. To be allowed to run a preschool, and thus provide preschool services, each unit
needs applicable approval from the relevant municipality.
The premises used for childcare are primarily leased properties.
Upstream in the value chain, the organization relies on key suppliers for food and consumables, which are essential
for the day-to-day operations and for maintaining high standards of health& safety, care and hygiene.
In Norlandia Preschools, our greatest impact on society is via the education and experiences we provide for the
children in our preschools. The children learn to take care of themselves, each other, and nature. Preschools have
an important task in promoting values, attitudes, and practices for future sustainable societies.
Individual & Family
The Individual & Family segment offers high-quality services to individuals with functional variations, as well as
young people and families in need of special support.
The Individual & Family business segment is focused on supporting persons with functional disabilities as well as
socially vulnerable children and young people. The service offering is broad and specialized, including personal
assistance, group homes, child welfare services, specialized foster homes, emergency placements, and home-based
interventions. These services are designed to meet complex and varying individual needs, often over extended
periods of care and support.
The organization operates in both Norway and Sweden, where the wide geographic distribution of clients
necessitates a regionally organized structure. This regional model enables close collaboration with local
municipalities and ensures service delivery that is both flexible and responsive to local conditions and regulatory
requirements.
Services are delivered under established and trusted brand names such as Aberia, Frösunda and Aurora. The
business model includes both operations based on procured contracts through public tenders, as well as businesses
run under own management agreements. This dual approach provides a balanced portfolio with both contractual
stability and operational autonomy.
Upstream, the value chain includes suppliers of consumables and daily living supplies essential for supporting
residents in group homes, foster care settings, and personal assistance environments.
Individual & Family is dedicated to creating an inclusive and equitable environment where everyone feels welcome
and respected – a prerequisite for customers to have a good quality of life. Individual & Family takes its social
responsibility seriously. By collaborating with community organizations and contributing to local communities, the
company strives to provide individuals with disabilities with the same opportunities as everyone else.
Property
NHC Property uses experienced expertise in real estate development to realize a range of projects. NHC Property
develops both existing and new real estate projects, as well as work to manage and maintain properties in NHC.
NHC Property is a relevant and current partner for private developers, municipal authorities and other actors who
are concerned with creating quality of life in good buildings and residential environments. NHC Property develops
and manages nursing homes, patient hotels, health houses, kindergartens, refugee reception centers, child welfare
housing, care housing and senior housing.
ANNUAL REPORT 2024
39
Real estate development and management is value creation in a bigger picture, and for NHC Property it is about
how to develop and manage properties for the weakest groups in society from functional preschools, safe concept
housing for children, young people and the elderly, care housing and nursing homes.
Markets
NHC Group primarily serves municipalities and/or similar governmental entities in Sweden, Norway, Finland,
Poland, Germany, and the Netherlands. Key customer groups include elderly individuals requiring residential or in-
home care services, families seeking high-quality preschool education, vulnerable individuals requiring support
under individual and family care programs, and refugees in integration services programs. During the reporting
period, no new markets were introduced.
The headcount of employees by geographical areas is as follows:
Country
Number of employees (head count)
Norway
8857
Sweden
18160
Finland
1381
Poland
380
Netherlands
720
Germany
146
NHC Group operates across various sectors, including elderly care, preschool, property management, and
integration services, with operations spanning multiple geographies such as Norway, Sweden, Finland, the
Netherlands, Germany, and Poland. The company's key inputs include contracts with public authorities,
consumables (food, hygiene products, medicines), facility management services, and human resources. These
resources are sourced through strategic procurement processes that prioritize sustainability—such as ensuring no
human rights violations—and strict compliance with local regulations. The company also focuses on hiring
competent personnel and maintaining relationships with suppliers and local communities to ensure a steady supply
of necessary resources.
The outputs of NHC Group's operations include the provision of welfare services to municipalities, educational
services, residential care, and property management. These services are designed to meet the needs of a diverse
customer base, including the public, municipalities, and other public institutions. The expected outcomes of these
services are improved quality of life for end-users, satisfaction among stakeholders, and compliance with national
standards for care and service provision. These outcomes are measured through customer surveys and
performance metrics to ensure value delivery to customers and investors.
NHC Group's value chain encompasses a wide range of activities from upstream procurement of materials and
services to downstream delivery of end-user services. Upstream activities include contracts from public authorities
when outsourcing welfare services (e.g. tenders), purchasing consumables, and securing facility management
services. Key suppliers are food wholesalers, equipment suppliers, and service providers such as cleaning and
transport services. The company maintains relationships with these business actors to ensure the quality and
reliability of the inputs.
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NORLANDIA HEALTH & CARE GROUP AS
The company's own operations involve the management of preschools, care centers, and building and managing
property facilities, including the preparation of food and the management of residential arrangements. The focus is
on efficient operational practices, compliance with health and safety standards, and the development of personnel.
Downstream activities involve delivering tailored services to end-users, municipalities and other public institution
NHC Group's position within these value chains is as a central coordinator and service provider, ensuring all aspects
from input procurement to service delivery are aligned.
NHC Group does not offer any products or services that are banned in certain markets.
Sustainability strategy and challenges
NHC Group’s sustainability strategy was revised in 2024 as part of the re-financing process and is structured around
several key pillars listed below. The double materiality assessment was performed subsequently. The strategy has
not yet been updated to reflect the outcome of the DMA but will be done in 2025.
Consumer and end-user welfare:
safe environment. A key challenge lies in balancing innovation with regulatory requirements and ensuring
accessibility for all user groups.
Workforce and working conditions:
security and professional development. However, maintaining a motivated workforce can be challenging in
industries with high turnover rates and demanding work environments.
Value chain and ethical business conduct:
frameworks to mitigate corruption risks and ensure compliance. Managing supplier accountability across complex
global supply chains remains a persistent challenge.
Workforce sustainability:
well-being, while labor shortages risk increased costs and service delivery failures. Ensuring fair treatment and
career progression for non-permanent staff can be difficult in highly competitive labor markets.
ANNUAL REPORT 2024
41
Consumer and end-user safety:
the safety of vulnerable groups. Adapting safety protocols to evolving risks and technological advancements
requires continuous oversight and investment.
Through these strategic priorities, NHC Group aims to drive sustainable welfare services while mitigating risks,
ensuring regulatory compliance, and fostering long-term stakeholder trust.
The company confirms that it is not engaged in any of the following activities: fossil fuel sector, chemicals
production under Division 20.2, controversial weapons, or the cultivation and production of tobacco.
Sustainability-related goals
NHC Group has not set overall sustainability-related goals although the Group has defined its ambition in several
sustainability areas. These ambitions are formulated and based on the NHC Group sustainability strategy. These
ambitions were set prior to the double materiality assessment performed in 2024 and the goal is to align the
sustainability strategy, sustainability-related goals, ambitions and targets going forward.
Consumer and end-users: Innovation for better welfare services
●
Develop and provide high-impact welfare services for children, patients, elderly people, and immigrants.
●
Foster confident and active individuals and communities.
●
Safeguarding health and safety of our customers.
Own workforce: Employee engagement
●
Increase employee engagement.
●
Develop the knowledge, skills, and competencies of employees.
●
Promote long-term conditions for secure employments.
●
Safeguarding the wellbeing of our employees by implementing working conditions characterized by health and
safety
Value chain partners: Ethical and sustainable operations
●
Ensure workers' rights are respected throughout the value chain.
●
Promote environmental and societal goals in partnership with value chain partners.
●
Balance business sensibility with social and environmental responsibilities.
Governance and organizational structures: Responsible company culture
●
Cultivate the company culture based on values and ethical conduct.
●
Develop and maintain effective routines, policies, and reporting structures.
●
Foster continuous improvement and organizational learning.
●
Promote dialogue on operations and societal roles.
Environment: Emission reduction and resource efficiency
●
Minimize resource use to lower the environmental footprint.
●
Collaborate with value chain partners to achieve environmental goals.
●
Promote sustainable practices throughout operations.
NHC Group serves public institutions, healthcare providers, and individuals who demand high-quality, ethical, and
sustainable services. Through these efforts, the company strengthens its position as a leader in welfare innovation.
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NORLANDIA HEALTH & CARE GROUP AS
1.3.2 Interests and views of stakeholders [SBM-2]
Stakeholder
Category
Key
Stake-
holders
Interests
Does
engage
ment
occur?
How is
engagement
organized?
Purpose of
engagement
How the outcome is
taken into account by
NHC Group
Customers
Customers
Demand for high-quality
and sustainable services,
particularly with an
emphasis on health and
safety as well as privacy
Yes
Customer surveys
National customer
surveys
Websites
Email
Phone
Social media
Open house meetings
Satisfaction
Information
Guidance
By each Segment for action
planning
Group Management
Yearly report to Board of
Directors
Relatives
Relatives
Demand for high-quality
and sustainable services
including health and
safety in welfare service
delivery
Yes
Open houses
Letters
Meetings/seminars
Satisfaction
Information
Guidance
By each Segment for action
planning
Yearly report to Board of
Directors
Municipality or
similar
Politicians
Quality of welfare
services, satisfied
customers and decent
working conditions for
the employees including
a healthy and safe
working environment
Yes
Meetings/seminars/co
nferences
Tenders
Negotiations and
agreements
Working
conditions
Quality of
welfare service
Satisfaction
By each Segment for action
planning
Yearly report to Board of
Directors
Employees
Union
Employees
Focus on a safe working
environment, fair
working conditions, and
opportunities for skills
development. These
aspects are essential for
maintaining engagement
and long-term workforce
sustainability.
Yes
Negotiations
Annual and pulse
engagement surveys
Workplace meetings
Intranet
Performance
dialogues
Work environment
surveys incl. HMS
Development plan and
training
Work
environment
Training
Equal
opportunities
Decent working
conditions
Job security
By each Segment for action
planning
Group Management
Yearly report to Board of
Directors
Suppliers
Key
suppliers
Transparency and fair
business practice, long
term business
relationship and
financial/operational
impact
Yes
Supplier self-
assessment surveys
Tenders
Negotiations and
agreements
Expectations
and
requirements
Group Management
By each Segment
Shareholders/i
nvestors
Financial performance,
risk management and
shareholder value
Yes
Investor
conferences/meetings
Communication and
meetings with
analysts
Roadshow meetings
investors
Long term
financial
performance
Risk
management
Sustainability
impact
Group Management and
Board of Directors
Regulators/Sup
er visionary
Authorities
Expectations of
compliance with laws
and regulations,
including requirements
related to sustainability
reporting including
transparency and
whistleblowing options
Yes
Approval processes
Inspections
Visits and meetings
Input and
feedback on
changes in
regulation
By each Segment
NGOs/civil
society org.
Volunteers
Interests linked to the
company’s social impact,
such as employment
opportunities and
contributions to
community
development.
Yes
Meetings
Local happenings in
units
Satisfaction
ANNUAL REPORT 2024
43
NHC Group recognizes the importance of understanding the interests and views of its key stakeholders as a critical
component of its strategic and business model alignment. Through its due diligence process and materiality
assessment, NHC Group has engaged with key stakeholders to identify and evaluate their priorities, concerns, and
expectations, in the context of sustainability.
S2 Value chain workers
We acknowledge that value chain workers, including those employed by our suppliers and contractors, may face
challenges related to working conditions, fair wages, job security and human rights. Value chain workers, their
interests, views, and rights are partly considered in the due diligence process under the Norwegian Transparency
Act. The risk of human rights and decent working conditions being violated are identified and scored based on the
scope, scale, irremediability and likeliness, and NHC creates an action plan to address the highest risks. Additionally,
supplier questionnaires are sent to the most significant suppliers, through which their interests—such as workers'
rights, freedom of association, and more—are assessed. The results are reviewed annually and actions taken to
address any identified risks.
While NHC Group has not yet conducted a structured process to collect information about the views, interest and
rights of value chain workers and apply this information to our strategy and business model, we recognize that our
business model and sourcing decisions may have material impacts on value chain workers. We understand the
growing importance of addressing these issues in line with the ESRS and international human rights frameworks.
As part of our commitment to responsible business practices, we are in the early stages of evaluating how we can
integrate value chain worker considerations into our strategy. Over the next 24 months we intend to assess in more
detail the value chain worker impacts in collaboration with key stakeholders. Explore engagement mechanisms such
as supplier dialogues or third-party audits to better understand worker perspectives. Develop a roadmap to
enhance human rights due diligence in our supply chain management processes.
As NHC Group progresses in this area, we will refine our approach and establish measurable goals. Future
sustainability reports will provide updates on our actions and findings.
S3 Affected communities
Further, we acknowledge that NHC Group business activities—such as land use, environmental impact,
employment policies, and supply chain decisions—may have implications for affected communities. This includes
considerations related to environmental sustainability, economic inclusion and respect for human rights. Our
impact on affected communities is partly assessed during the due diligence process under the Norwegian
Transparency Act. This assessment focused on actual and potential violations of human rights and decent working
conditions which we cause or are directly linked to. In case such risks are significant, actions are implemented as set
out above.
In some cases, affected communities are heard and consulted when new business opportunities are assessed.
Property projects, construction, and various businesses such as daycare centers and nursing homes require a range
of permits in advance, both for building planning and for extensive applications to document the planned
operations. In some cases, such as the establishment of refugee reception centers or childcare institutions, which
may have impact on local communities, local information meetings with residents have been organized. This
process ensures that the views, interests, and rights of affected communities, including respect for their human
rights (and rights as indigenous peoples, where applicable), are taken into account when shaping the company's
strategy and business model.
We are committed to understanding and addressing our potential impacts on communities in more detail and plan
to take the following steps over the 24 months: Conduct an initial assessment to identify key affected communities
linked to our operations and supply chain. Develop engagement mechanisms, such as community consultations or
partnerships with local organizations, to better understand stakeholder concerns. Establish an internal roadmap for
integrating community-related considerations into our strategy and business model, including potential policies on
land use, social impact, and indigenous rights. As NHC Group progress in this area, we will update our reporting to
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NORLANDIA HEALTH & CARE GROUP AS
reflect our actions and findings, ensuring that affected communities are considered in our long-term business
decisions.
Stakeholder dialogue and engagement
●
NHC Group conducts on occasions stakeholder dialogues to maintain an open and transparent exchange with
its key stakeholders, including employees, customers, suppliers, and local communities.
●
These interactions aim to ensure that stakeholder perspectives are integrated into the company’s strategic
decision-making and sustainability reporting processes.
●
During these dialogues, topics such as environmental impact, social responsibility, and governance practices are
explored to align with stakeholder expectations and the organization’s long -term goals.
The outcomes of these engagements have confirmed NHC Group’s understanding of stakeholder priorities,
particularly those related to:
●
Environmental concerns, including climate change and resource efficiency.
●
Social priorities, such as employee well-being and community impacts.
●
Governance practices, including transparency and ethical business conduct.
These insights have confirmed the design and implementation of NHC Group’s strategy and business model,
ensuring that they address stakeholder expectations while aligning with regulatory and sustainability standards.
Understanding key stakeholders’ interests and perspectives
NHC Group has identified and analyzed the interests and perspectives of its key stakeholders as part of the
company’s due diligence process and materiality assessment. This analysis ensures that the company’s strategy and
business model align with the expectations and requirements of stakeholders who are affected by or influence NHC
Group’s operations.
Key stakeholders and their interests
How stakeholder perspectives were analyzed and integrated
●
Through regular dialogues, insight interviews, and surveys with key stakeholders, NHC Group has mapped
relevant interests and perspectives. This analysis has ensured that both inside -out and outside-in perspectives
are considered, in line with the double materiality approach.
●
Stakeholder priorities have been considered into the company’s strategic planning and business model. For
example, insights from customer dialogues have contributed to development of new services, while feedback
from employees has influenced activities in workplace safety and skills development programs.
Ongoing dialogue and follow-up
NHC Group engages with its key stakeholders on a regular basis to ensure that new and evolving interests are
identified and implemented. The outcomes of these dialogues are used to continuously improve the company’s
sustainability efforts.
Through this process, NHC Group ensures that stakeholders’ perspectives and interests are not only identified but
also actively used to shape the company’s future direction.
(45d) For our consumers and end users, feedback mechanisms allow us to address concerns and continuously
improve. The operational segments/segments yearly reports on customer satisfaction to group management, and
this is also presented to the Board of Directors.
1.3.3 Material impacts, risks and opportunities and how they interact with its strategy and
business model [SBM-3]
Disclosure of material impacts, risks, and opportunities
NHC Group has conducted a materiality assessment to identify and evaluate the material impacts, risks, and
opportunities across its business model, including its own operations and its upstream and downstream value
ANNUAL REPORT 2024
45
chain. The impacts and risks identified in the due diligence process according to the OECD Guidelines for
Multinational Enterprises has informed the materiality assessment.
Material impacts
Our materiality assessment has highlighted these key areas where material impacts and risks are concentrated:
Impact
Own workforce, working conditions, secure employment, (Negative)
use of temporary contracts, part-time
contracts and hired personnel. Secure employment relates to job security and contract types. The use of temporary
contracts, part-time contracts and hired personnel as opposed to permanent full-time employees might represent a
negative impact for people. The negative impact of temporary contracts may include the stress of an insecure job
situation for the temporary employees, financial insecurity, less rights with regards to employee rights (training
etc.), more difficult to raise concerns etc. It may also have a negative impact on employees as it leads to higher
turnover, increased workload for the permanent employees. In some countries the social protection for non-
employees is less favorable than for employees. This impact relates to NHC’s own operations and is an integral part
of the care industry’s nature requiring a flexible workforce. The impact is accordingly linked to our business model
and strategy of as a care service provider. The impact is expected to remain stable across all time horizons.
Own workforce, working conditions,
health and safety
,
(Negative)
increased injuries and work-related diseases among employees, resulting in higher sick leave ratios, and negative
impact on their health. The nature of the industries in which NHC operates implies that there is for example heavy
lifting, risk of injuries and work-related diseases. This impact relates to NHC’s own operations. Because of the
nature of the work, the impact is expected to be stable over time. This impact is also closely linked to our business
model and strategy as care services are personnel intensive and demanding.
Consumers and end-users, personal safety of consumers and/or end-users, health and safety,
(Negative)
failure
to protect personal safety of consumers and end-users. Failing to protect the personal safety of consumers and/or
end-users (for example, health and safety, security of a person, and protection of children) through inadequate
service offerings, poor solution design, and ineffective lifecycle management can lead to serious harm. This neglect
can result in health risks, security breaches, and endangerment of vulnerable groups. This impact is mainly related
to our downstream value chain. Providing safe care services is at the core of our business model and strategy,
however the nature of care services implies that there may be negative impact for users. For the same reasons, the
impact is assessed as stable across the different time horizons.
Business conduct, corporate culture,
(Positive)
stakeholders. As a value-driven organization, NHC has already established a foundation for fostering a healthy
culture across the organization. This positive culture not only enhances service quality but also positively influences
other activities, leading to overall organizational success. This impact mainly relates to our own operations
although there might be a positive impact also downstream and upstream in our value chain. The positive impact is
expected to remain stable. The impact originates from our business model and strategy to be a trustworthy welfare
provider.
Risk
Own workforce, working conditions, secure employment,
delivery failure or increased costs from temp hire. The staffing norm is contractually defined, but there is a risk of
insufficient access to qualified personnel. This could lead to service delivery failures and penalties, or increased
costs from hiring temporary staff. This risk does not link as closely to our business model and strategy as to the
nature of the care industry, and the increasing aging population expecting continuously improved services. This risk
is expected to decrease in the medium to long term as innovation for example within technical solutions and health
tech will compensate for lack of qualified personnel.
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NORLANDIA HEALTH & CARE GROUP AS
The risks are predominantly concentrated in Europe, where NHC Group operates extensively. Our business model is
integrated within the European healthcare and service sectors, making it subject to regional regulatory changes and
workforce availability.
Our facilities and assets, including healthcare centers and operational offices, are pivotal areas where risks related
to health and safety, and employment practices are managed. These facilities are equipped with systems to ensure
compliance with health and safety.
The inputs into our business primarily involve skilled labor and compliance with healthcare regulations, which are
critical to maintaining our service quality and operational license. The outputs include healthcare services provided
to end-users, which must align with safety and quality standards to mitigate risks associated with service delivery.
The current and anticipated effects of NHC Group's material impacts and risks on its business model, value chain,
strategy, and decision-making are significant. The company has responded to these effects by implementing
changes to its strategy and business model. For example, NHC Group provides relevant training to temporary
employees to prevent the risk of failures in the services provided. Conducting risk assessments as part of our
ordinary business cycle has always been part of NHC Group business planning and strategy development processes.
NHC Group's material impacts, both negative and positive, affect people in various ways. The company's activities,
such as providing elderly care, preschool education, and integration services, have a direct impact on the well-being
of individuals and communities. The nature of our services implies both positive and negative impacts for end-users
as well as our own workforce, for example the use of part-time employment is an inherent part of the health care
industries.
Current financial effects on financial position, performance, and cash flows
The current financial effects of NHC Group's material risks and opportunities on its financial position, financial
performance, and cash flows are monitored closely. For 2024, the cost of hired personnel amounted to a total of
NOK 271 million. This cost is partly related to lack of personnel, and partly to regular replacements which is not
related to lack of personnel such as short-term leave, vacations etc. The company has not identified material risks
and opportunities that could lead to adjustments within the next annual reporting period.
The anticipated financial effects of the material risk have not been quantified in any detail beyond the scoring in
the double materiality assessment. This will be assessed in more detail in 2025.
Resilience of strategy and business model
NHC Group is committed to ensuring the resilience of its strategy and business model by effectively managing
material impacts, risks, and opportunities. The company conducts both qualitative and quantitative analyses of its
resilience, considering various time horizons as defined in ESRS 1. This includes assessing the capacity to adapt to
changing conditions and implementing measures to enhance sustainability.
Qualitative analysis of resilience
Workforce resilience
●
Job security and employment stability:
potential negative impact of temporary contracts, part-time contracts, and hired personnel. To strengthen
resilience, we focus on workforce stability, competitive employment conditions, and career development
opportunities to reduce turnover and enhance service quality.
●
Access to qualified personnel:
service delivery failures or increased reliance on temporary hires. To mitigate this, NHC invests in recruitment
strategies, employee training, and long-term workforce planning to ensure a stable and skilled workforce.
●
Health and safety in the workplace
: Employees may be negatively impacted by workplace injuries and work-
related diseases, especially in physically demanding roles. NHC mitigates these risks through comprehensive
health and safety programs, ergonomic training, and well-being initiatives to foster a safe and sustainable work
environment.
ANNUAL REPORT 2024
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Consumer and end-user protection
●
Personal safety of consumers and end-users:
risks, security breaches, or inadequate service design) may represent a negative impact for these individuals.
NHC mitigates this through strict quality control, regulatory compliance, and ongoing service improvements to
ensure high standards of care and safety.
Governance and ethical business conduct
●
Commitment to ethical corporate culture
: As a value-driven organization, NHC fosters an ethical culture that
enhances service quality and strengthens resilience across its operations.
●
Regulatory compliance and corporate governance:
governance frameworks, and stakeholder engagement strategies to align with evolving regulations and ethical
standards.
●
Whistleblowing and ethical safeguards:
system is essential for good governance. This promotes accountability and protects stakeholders from unethical
behavior or regulatory violations.
Quantitative analysis of resilience
Where applicable, NHC Group assesses the financial impact and likelihood of material risks:
●
Increased costs from temporary workforce:
under MNOK 40. The likelihood of this risk is high (3) due to labor market conditions.
●
Workplace injuries and sick leave:
injuries or fatalities can have significant financial implications for the company. Higher rates of sick leave and
turnover can lead to increased costs related to temporary staffing, recruitment, and training of new employees.
Additionally, personal injuries or fatalities can result in substantial legal liabilities, including compensation
claims and legal fees, which can strain NHC's financial resources. However, the significance of this risk is
assessed low (1), as NHC has robust health and safety protocols in place, effectively minimizing the likelihood of
such incidents occurring.
●
Consumer safety and service risks:
considered low, but the potential impact could be significant. Compliance with industry regulations ensures
that these risks are continuously monitored and minimized.
NHC Group assesses resilience across different time horizons:
●
Short-term (0 -1 years): Addressing immediate workforce shortages, ensuring compliance with regulatory
frameworks, and enhancing whistleblower protection mechanisms.
●
Medium-term (1 -5 years): Strengthening workforce retention, improving workplace safety initiatives, and
expanding governance frameworks to adapt to industry changes.
●
Long-term (5+ years): Enhancing corporate culture, ensuring sustainable workforce planning, and embedding
resilience into NHC’s strategic growth and service innovation.
NHC Group has not identified additional entity-specific disclosures beyond the standardized ESRS disclosure
requirements.
1.4 IMPACT RISK AND OPPORTUNITY MANAGEMENT
1.4.1 Process to identify and assess material impacts, risks and opportunities [IRO-1]
NHC Group, in collaboration with ÆRA Strategic Innovation, and Deloitte, has conducted a DMA to prepare for the
CSRD. The double materiality analysis is based on the methodology from the ESRS and is essential for identifying
which sustainability topics to report on under the directive. Double materiality means that a topic is material either
from an impact perspective, a financial perspective, or both. Impact (I) refers to NHC group's impact on people and
nature through its activities or value chain. Financial risks (R) and opportunities (O) pertain to how NHC group is
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NORLANDIA HEALTH & CARE GROUP AS
financially affected by sustainability topics. The analysis was conducted based on regulatory -, peer -, and media
analysis, stakeholder engagement, internal workshops, and validation of the results with the project team, the
steering committee, and Deloitte.
Preparation
Competence and ownership
NHC Group management initiated the project to prepare for CSRD and set up the project organization. Competence
was built by up-skilling project members attending relevant training and engaging Æra and Deloitte as external
advisors. The Management team was informed of the progress on a continuous basis.
Organizing the double materiality assessment
Careful consideration was given as to how to organize the double materiality assessment. An interactive bottom-up
and top-down and process was combined to ensure relevant input and engage representatives from the different
segments without requiring extensive time and resources from the subsidiaries.
Introduction to the methodology
Æra Strategic Innovation was engaged to facilitate introductory workshops to the extended ESG committee
including representatives from all segments. Workshops were held for general introduction to CSRD, value chain
analyses, impact- and risk and opportunity assessments respectively. Deloitte templates were used for value chain
analysis, long-list of sustainability topics and the assessments. The scoring scale and thresholds was proposed by
the project group and were aligned with Hopitality Invest, owner of NHC Group.
Long-list of sustainability topics
Based on the business context of NHC Group, the internal project group prepared the long list of sustainability
topics by review of relevant peers and competitor analysis as well as a media analysis for peers of both the area to
identify whether there were any other sustainability themes, beyond those covered in the ESRS, that should be
considered. It was concluded that the ESRS covers the sustainability themes that are relevant for all segments.
Alignment with due diligence process on human rights and decent working conditions
NHC Group has performed due diligence on human rights and decent working conditions since the Norwegian
Transparency Act entered into force in 2022. The result of the double materiality assessment was quality-assured
against the risks identified in due diligence work to ensure that the most important risks were taken into account in
the materiality assessment.
NHC Group's approach to determining material information involved both qualitative and quantitative analyses.
The process included in-depth and semi-structured interviews with identified stakeholders, within senior
management, operations and the ESG committee members which were conducted in June and August 2024. These
interviews aimed to capture information on material topics and IROs (Impacts, Risks, and Opportunities) of the
business model, as well as data relevant for strategy calibration.
The qualitative methodology consisted of 15 interviews, each lasting 45-60 minutes, structured around a prepared
interview guide with specific thematic questions. The findings from these interviews were triangulated with data
from desktop research and other relevant information from NHC Group. This data was then summarized into a
structured template in Miro. The preliminary findings were assessed, scored and validated through multiple
workshops with the project owner, CFO, and ESG committee in June and September 2024. This process ensured
that the most important data were structured and translated in line with requirements.
In terms of thresholds and criteria implementation, NHC Group followed the guidelines provided in ESRS 1 Section
3.2, specifically paragraphs 31, 34, and 36. These paragraphs emphasize the importance of considering both
qualitative and quantitative factors when determining materiality. NHC Group used these criteria to ensure that the
disclosed information was relevant and significant to their stakeholders.
ANNUAL REPORT 2024
49
Examples of qualitative factors include stakeholder interviews, workshops, and desktop research. In-depth and
semi-structured interviews were conducted with identified stakeholders to capture information on material topics
and IROs. Multiple workshops were held with the project owner, CFO, and ESG Taskforce to validate preliminary
findings. Data from desktop research and other relevant information from NHC Group were triangulated with
interview findings to provide a comprehensive understanding of material topics.
Quantitative factors included a scoring methodology, thresholds for impact assessment, and evaluation metrics.
The scoring of impacts, risks, and opportunities was based on a methodology that considered the significance of
each factor. Appropriate thresholds were used to determine which impacts, risks, and opportunities were identified
and addressed as material. The evaluation of material topics included metrics such as scale, scope, and
irremediability to assess the severity of impacts. Financial risks and opportunities were also evaluated based on the
likelihood and severity of their potential financial effects.
The thresholds for impact assessment were determined through a consolidation process that merged individual
materiality assessments from NHC’s subsidiaries into a single DMA model for the Group, as well as recalibration of
scales and thresholds to ensure uniform scoring across different business units. For example, financial materiality
was set at a threshold of >3, while impact materiality was set at a threshold of >7.6 on a scale from 1 to 9. These
thresholds were necessary to determine which impacts, risks, and opportunities were identified and addressed as
material for reporting purpose (IRO-2 59)
These factors helped NHC Group ensure that the disclosed information was relevant and significant to their
stakeholders, in line with the guidelines provided in ESRS 1 Section 3.2.
Analysis
Assessments by the segments
A value chain analysis was prepared for each segment together with a consolidated value chain for NHC.
An overarching assessment was done of all ESRS topics, sub-topics, and sub-sub-topics. The topics that were
deemed not relevant to the NHC and its value chain were not assessed in any further detail.
The ESRS topics, sub-topics, and sub-sub-topics were then assessed in detail and scored. First, the impacts on
people and the environment were considered, both positive and negative, potential and actual. Then the financial
risks and opportunities were assessed.
The Project Group interacted with the ESG committee throughout the project for support and discussions. Æra
Strategic Innovation and Deloitte provided training models, example models, actual and practical clarifications
along the way, and were consulted regarding scaling, scope, and threshold values.
Consolidation of input
NHC Project Group consolidated the input. This process included weighted integration of subsidiary data and
recalibration of scoring models.
Assumptions
NHC Group has focused primarily on its own operations in the double materiality analysis. It has considered the
value chain both downstream and upstream to identify and assess material impacts, risks and opportunities,
however it acknowledges that a more granular and data-based approach to identify and assess the value chain
impacts, risks and opportunities will be required in coming years.
Double materiality for NHC Group
With input from the relevant segments of the Group, stakeholders in the segments, ESG committee members and
management team NHC prepared its double materiality assessment
50
NORLANDIA HEALTH & CARE GROUP AS
Impact materiality
NHC Group has identified impacts by considering products and activities in our own business operations and the
value chain that affect the sustainability topic in question. Both negative and positive impacts are considered. We
have based our assessment of actual and potential impacts on the three elements scale, scope and irremediability
as set out in the table below. Irremediability is not considered for positive impact. We have then calculated
severity- the average of multiplied scale, scope and irremediability. This is then multiplied with likelihood which
gives a final significance score. For actual impact, the likelihood score is always 3. It has also been considered
whether the impact will or is expected to increase or decrease in the medium- or long-term horizon.
Financial materiality
Risks and opportunities were assessed in terms of their potential financial effect on annual EBIT. Financial
thresholds were determined based on annual EBIT impact as set out below. This tiered approach ensures
proportionality in how risks and opportunities are prioritized and managed across the Group. NHC has mapped
dependencies as part of its value chain mapping and considered this as part of the assessment of financial
materiality. The key dependency related to financial materiality from a Group perspective is access to qualified
personnel.
NHC has carefully considered the threshold for scoring of impact, risks and opportunities. NHC chose a 1-3 scale for
materiality assessments in 2024, considering it appropriate and sufficient for the group’s current needs. The 1-3
scale is applied per component of the significance score, resulting in significance scores in an interval of 1-9.
Consistent thresholds are applied throughout the group to ensure standardized and comparable input across all
entities.
Sustainability related risks are managed and prioritized in the same manner as other risks. Risk assessments follow
general methodology and industry specific where applicable. NHC does not have one generic system for risk
assessment but use different approaches for different types for risk and local requirements.
Impact materiality
Financial materiality
Scale
(negative/positive)
Scope
Irremediability
Likelihood
Financial effect
Annual EBIT effect
(NOK 400m)
Likelihood
3
High
Serious /
Significant
Extensive scope
Impossible or very
difficult to reverse
Certain or very likely
(66-100%)
>20%
(NOK 80m)
Certain or very likely
(66-100%)
2
Medium
Moderately Serious /
Moderately
Significant
Moderate scope
Can be reversed by
effort (time and cost)
Likely
(33-65%)
10-20%
(NOK 40-80m)
Likely
(33-65%)
1
Low
A little serious /
A little significant
Small scope
Relatively easy to
reverse
Rare or unlikely
(0-32%)
<10%
(NOK 40m)
Rare or unlikely
(0-32%)
Climate Change: The below topics were found not to be material to NHC Group as they either were not seen as
material or were scored below the threshold value.
Pollution and Water Consumption: Various segments contributed to identifying impacts, risks, and opportunities
related to pollution and water consumption. For NHC Group's operations, the focus was on premises to what may
adversely affect air, soil, and water through pollution. Water consumption was also recognized as a potential
impact, particularly in the Care and Preschool segment. Key activities in the value chain could include road
transportation (impacting air quality with NOx, SOx, and particulates), agriculture related to food production, and
water usage in the textile industry, all relevant components of the Group’s value chain. The potential mishandling of
waste, such as plastic, leading to pollution was also considered but not very likely. This assessment was based on
the Group's internal expertise; there was no specific screening of locations or activities, nor were any consultations
conducted, and overall evaluated little to no impact and therefore not material.
ANNUAL REPORT 2024
51
Biodiversity: Input regarding the identification of impacts, risks, and opportunities related to biodiversity and
ecosystems was evaluated and no IRO was identified.
Resource Use and Circular Economy: Input was given to identify impacts, risks, and opportunities related to
resource use and the circular economy. NHC Group examined impacts, risks, and opportunities tied to
subsidiaries/associated companies engaged in constructing new buildings, refurbishing and maintaining facilities
such as preschools, and property development. These activities came up as areas concerning resource use and the
circular economy. Waste generation potential impact across all segments, pertinent to both the Group's activities
and its value chain, especially downstream. In the value chain, several waste-related negative impacts were noted
but did not meet the materiality threshold. Notable resource inflows included the usage of scarce resources such as
construction materials for the real estate business. A positive impact was identified due to the Group's purchasing
power, enabling stricter environmental requirements for suppliers, like waste reduction and recycling, thus
positively influencing resource use and the circular economy. The financial risk of stringent legal requirements
related to waste generation and handling was also identified, particularly relevant to the Group's real estate
business. Stricter regulations regarding recycling were seen as an opportunity since it might reduce operational
expenditures (purchasing reduction). This assessment was grounded in the Group's internal knowledge; no
consultations were conducted and came below the threshold.
The ESG committee prepared a recommendation based on the DMA process and stakeholder input, including the
parent company; Hospitality Invest, of relevant material topics and presented it to the Management team. The
Management team made the final decision on relevant material topics for the NHC Group.
The process to identify, assess and manage opportunities is integrated into NHC’s management process and is
largely covered thru business reviews, management meetings and board meetings that are carried out on a regular
basis.
1.4.2 Disclosure requirements in ESRS covered by NHC Group’s sustainability statement
NHC Group’s DMA on E1 – Climate Change involved workshops with various parties to identify significant climate-
related topics. The focus was on the most relevant climate impacts and risks affecting NHC’s operations and
broader value chain. Multiple rounds of reviews refined the initial assessments, ensuring alignment with NHC’s
strategic objectives. The key outcome was that climate change was initially identified as a potentially material topic;
however, further analysis refined its final classification.
The DMA project was led by NHC in close collaboration with ÆRA Strategic Innovation and Deloitte. Their collective
roles included facilitating the double materiality assessment through workshops, scoring methodologies, and
stakeholder engagement. They also focused on knowledge building, equipping NHC staff with the necessary skills
and ownership over the DMA process and providing methodological guidance to ensure adherence to CSRD
guidelines.
Following the individual materiality assessments from NHC’s subsidiaries, a consolidation process merged these
findings into a single DMA model for the Group. Subsidiary data was weighted by relative size and influence within
the Group, and scales and thresholds were reviewed and refined to achieve uniform scoring across different
business units. Initially, all ESRS topics were categorized as potentially material or non-material. Climate change was
initially flagged as potentially material due to certain value chain considerations, such as food preparation.
However, after recalibrating scoring models, E1 was ultimately assessed as non-material for the Group, given
limited direct climate impacts and low financial exposure to climate risks. Climate change was assigned to a
watchlist for future reassessment, recognizing that regulatory changes and stakeholder priorities could elevate its
importance over time.
The impacts, risks, and opportunities related to E1 were thoroughly evaluated. The direct emissions of NHC are
relatively low due to its service-based operations, though upstream and downstream value chain activities, such as
52
NORLANDIA HEALTH & CARE GROUP AS
food production and logistics, remain areas of indirect impact. Extreme weather events and evolving regulations
pose some climate-related risks, though they are currently deemed low in scope for NHC’s service model.
Transitioning to energy-efficient solutions and electric vehicles presents opportunities for cost savings and potential
new revenue avenues.
NHC’s sustainability-linked bonds underscore its commitment to emission reductions and net zero goals. Despite
the Group’s limited direct climate footprint, value chain emissions represent a bigger potential impact. These
sustainability objectives, while not immediately material to financial performance, remain part of NHC’s long-term
strategic planning.
Workshops and consultations with internal stakeholders informed NHC’s approach to E1. Feedback highlighted the
need to monitor evolving climate regulations and the opportunity to leverage sustainable practices to meet
increasing ESG expectations. NHC has minimal engagement in High Climate Impact Sectors (HCIS), with the
property management segment making up only a small portion of the Group’s total revenue. This low exposure
supports the non-material classification for E1, though strategic oversight continues for potential future growth or
regulatory shifts.
While climate change remains relevant to NHC, the short-term material impact on the Group’s financial
performance and operational risks appears limited. The organization is proactively implementing energy
conservation measures and monitoring value chain impacts. However, given the nature of NHC’s services, climate
change does not currently pose a significant threat to immediate financial stability. Regulatory developments and
evolving stakeholder expectations warrant regular re-evaluation. By maintaining a watchlist approach, NHC stays
prepared to pivot strategy as climate dynamics and ESG frameworks continue to evolve.
1.4.2.1 List of disclosure requirements complied with in preparing the sustainability statement
Table. ESRS2-IRO2-1. List of disclosure requirements complied with in preparing the sustainability statement
ESRS
DR
Name of DR
Page
General information
ESRS 2
BP-1
General Basis for preparation of sustainability statements
27
ESRS 2
BP-2
Disclosures in relation to specific circumstances
28
ESRS 2
GOV-1
The role of the administrative, management and supervisory
bodies
29
ESRS 2
GOV-2
Information provided to and sustainability matters addressed by
the undertaking’s administrative, management and supervisory
bodies
33
ESRS 2
GOV-3
Integration of sustainability -related performance in incentive
schemes
34
ESRS 2
GOV-4
Statement on due diligence
35
ESRS 2
GOV-5
Risk management and internal controls over sustainability
reporting
36
ESRS 2
SBM-1
Strategy, business model and value chain
37
ESRS 2
SBM-2
Interests and views of stakeholders
43
ESRS 2
SBM-3
Material impacts, risks and opportunities and their interaction with
strategy and business model
45
ESRS 2
IRO-1
Description of the process to identify and assess material impacts,
risks and opportunities
48
ESRS 2
IRO-2
Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement
52
Environmental information
ESRS E
N/A
Disclosures pursuant to Article 8 of Regulation (EU) 2020/852
(Taxonomy regulation)
ANNUAL REPORT 2024
53
Social information
ESRS S1
S1-1
Policies related to own workforce
65
ESRS S1
S1-2
Process for engaging with own workforce and workers’
representatives about impacts
68
ESRS S1
S1-3
Process to remediate negative impacts and channels for own
workforce to raise concerns
68
ESRS S1
S1-4
Taking action on material impacts on own workforce and
approaches to managing material risks and pursuing material
opportunities related to own workforce, and effectiveness of those
actions
69
ESRS S1
S1-5
Targets related to managing material negative impacts, advancing
positive impacts and managing material risks and opportunities
71
ESRS S1
S1-6
Characteristics of the undertaking’s employees
72
ESRS S1
S1-14
Health and safety metrics
74
ESRS S1
S1-17
Incidents, complaints and human rights impacts
74
ESRS S4
S4-1
Policies related to consumers and end-users
78
ESRS S4
S4-2
Process for engaging with consumers and end-users about impacts
81
ESRS S4
S4-3
Process to remediate negative impacts and channels for consumers
and end-users to raise concerns
82
ESRS S4
S4-4
Taking action on material impacts on own workforce and
approaches to managing material risks and pursuing material
opportunities related to own workforce, and effectiveness of those
actions
83
ESRS S4
S4-5
Targets related to managing material negative impacts, advancing
positive impacts and managing material risks and opportunities
85
Governance information
ESRS G1
G1-1
Business conduct policies and corporate culture
87
1.4.2.2 Summary of ESRS datapoints that derive from other EU legislation and their materiality [ESRS 1,
paragraph 35, see 5 Appendices.
54
NORLANDIA HEALTH & CARE GROUP AS
2.
Environmental Information
2.1 EU TAXONOMY [ARTICLE 8 OF REGULATION (EU) 2020/852 (TAXONOMY REGULATION)]
All of NHC Group (the “Group”) consolidated companies (the “Companies”) have been considered for reporting on
the EU Taxonomy for 2024. For the reporting year 2023 NHC Group reported thru parent company Hospitaltiy
Invests Taconomy report. The KPI tables disclosing the distribution of turnover, OpEx and CapEx per environmental
objective are not included in the report as the Group do not carry out economic activities eligible under more than
one environmental objective.
2.2 SCOPE
We have not included joint ventures and associated companies, as they are not consolidated in the Group’s
financial statements. The Group have assessed how and to what extent the activites of the Companies qualify as
sustainable according to Regulation (EU) 2020/852 of the European Parliament and of the Council of 18 June 2020
on the establishment of a framework to facilitate sustainable investment, and amending Regulation (EU) 2019/2088
(the “EU Taxonomy”).
NHC Group has conducted an EU Taxonomy assessment for all activities carried out by the Companies in 2024,
primarily based on the EU Taxonomy including its delegated acts, as well as the FAQs by the EU Commission.
Changes in legal and regulatory environments may alter the future assessment of our activities under the EU
Taxonomy.
NHC Group operates as a diversified family-owned private company, conducting its own taxonomy assessment,
supported by NHC Group's ESG team.
The EU Taxonomy assessment was carried out in three steps which can be illustrated as follows:
2.3 [TAXONOMY ACCOUNTING POLICY]
KPI disclosure requirements
The three performance indicators, net revenue, CapEx and OpEx, are determined in accordance with the standards
applied in the financial statements. For each KPI the financial figures are determined at the lowest level for which
ANNUAL REPORT 2024
55
separate cash flows can be identified for assets or groups of assets (cash-generating unit), considering them on a
standalone basis. The figures presented are totals for each activity after elimination of intracompany transactions.
Turnover
The EU Taxonomy KPI on net revenue has the same definition as operating revenues in NHC’s statement of
comprehensive income. In 2024 the Group’s operating revenues were NOK 11 700 million, of which 42 per cent
derived from taxonomy eligible activities.
CapEx
The EU Taxonomy KPI on CapEx includes all investments included in Note 8 (Property, Plant and Equipment), Note 9
(Immaterial assets excluding Goodwill) and Note 12 (Leases) to the financial statements. The capex to be reported
as part of the taxonomy is additions to property, plant and equipment of NOK 311.1 million (note 8 Property, plant
and equipment), additions arising from acquisitions through business combinations of NOK 44.6 million (note 8
Property, Plant and equipment), immaterial assets excluding Goodwill of NOK 16.8 million (note 9 Immaterial
assets) and new right-of-use assets arising from lease contracts of NOK 762.6 million (note 12 Right-of-use assets)
during the financial year.
OpEx
The OpEx to be reported as part of the taxonomy is non-capitalised costs that relate to lease of short-term assets,
maintenance and repair, and any other direct expenditures related to the day-to-day servicing of the assets. The
operating costs for NHC that are included in the denominator for the calculation of the taxonomy opex are short-
term leases of NOK 69.0 million, maintenance and repair costs of NOK 74.5 million and other direct expenditures
related to day-to-day servicing of assets of NOK 323.8 million. In determining the classification of the OpEx cost
within the taxonomy framework, the Group have not distinguished the cost directly related to acquisition and
ownership of buildings versus renovation of existing buildings, as this is not something that is followed up on a
detailed level within the management group. NHC have therefore allocated all the above-mentioned cost to the
category renovation of existing buildings.
2.4 TAXONOMY RELATED ACTIVITIES
NHC Group has considered five activities carried out by the Companies as eligible under the EU Taxonomy
according to the delegated acts and across the delegated acts. None of the eligible activities have been considered
to be aligned. The subsequent section presents the proportion of NHC Group’s consolidated turnover, capital
expenditure (CapEx), and operational expenses (OpEx) linked to EU Taxonomy-eligible and aligned activities for the
2024 financial year.
The following figure outlines NHC Group’s economic activities within the EU taxonomy. Currently, a minimal
proportion of the Groups’ activities align with the taxonomy, primarily due to the Company’s core business
activities.
NHC Group has not been able to conduct a climate risk and vulnerability assessment across the Group's activities.
As a result, certain activities that may have qualified for alignment are currently categorized only as eligible
Activity
Economic activity
Company
Eligible
Aligned
7.1
Construction of new buildings
Norlandia Health & Care Group
ü
x
7.2
Renovation of existing buildings
Norlandia Health & Care Group
ü
x
7.7
Acquisition and ownership of buildings
Norlandia Health & Care Group
ü
x
11
Education
Norlandia Health & Care Group
ü
x
12
Residential Care Activities
Norlandia Health & Care Group
ü
x
56
NORLANDIA HEALTH & CARE GROUP AS
Taxonomy-alignment – Substantial contribution and Do no Significant Harm (“DNSH”)
NHC Group has assessed the eligible activities listed above against the criteria of substantial contribution. As none
of the activities fulfil the substantial contribution criteria, the DNSH-criteria has not been considered.
7.1 Construction of new buildings
In 2024, NHC Group executed several new building projects.
Alignment review:
emission standards, consequently, further assessments to determine if the activities meet the DNSH criteria have
not been conducted. Therefore, these activities are not included in the reporting of taxonomy-aligned activities.
7.2 Renovation of existing buildings
NHC Group's companies have facilitated renovations of buildings and other facilities, including the replacement of
floors, doors, roofs, windows, and other upgrades.
Alignment review:
Consequently, further assessments to determine if the activities meet the DNSH criteria have not been conducted.
Therefore, these activities are not included in the reporting of taxonomy-aligned activities.
7.7 Acquisition and ownership of buildings
NHC Group engages in purchasing real estate and maintaining ownership of such real estate, making the activities
eligible.
Alignment review:
contributing significantly to climate change mitigation. The criteria for assessing a building's Primary Energy
Demand (PED) vary depending on the construction date. There is a distinction between buildings constructed
before and after December 31, 2020. It has been determined that buildings from both periods fail to meet the
substantial contribution criteria. Consequently, further assessments to determine if the activities meet the DNSH
criteria have not been conducted. Therefore, these activities are not included in the reporting of taxonomy-aligned
activities.
11. Education
NHC Group operates a network of high-quality childcare centers across multiple countries, including Norway,
Finland, Sweden, Poland, and the Netherlands. These centers are dedicated to fostering the overall development of
children through a comprehensive educational program that emphasizes play, learning, and physical activity. For
instance, Norlandia Förskolor in Sweden aims to ignite children's interest in play and learning, as well as promote
the joy of movement.
Alignment review:
scenario analyses and direct property-specific sustainability measures is limited. Consequently, the responsibility
for such environmental assessments and adaptations primarily resides with the property owners. As a result, the
Do No Significant Harm (DNSH) criteria and minimum safeguards stipulated by the EU Taxonomy are not directly
applicable to NHC Group’s operations. This delineation underscores the necessity for collaborative efforts between
NHC Group and property owners to ensure that the facilities meet the EU's sustainability standards.
In conclusion, NHC Group’s Norlandia brand meets the eligibility criteria for EU Taxonomy Category 11 (Education).
At the same time, DNSH and minimum safeguard requirements are not relevant to these specific operations, given
NHC Group’s role as a service provider without direct ownership of the physical properties.
12.1 Residential care activities
NHC Group is a key provider of residential care services, offering comprehensive support to individuals requiring
assistance with daily activities and medical needs. These services encompass 24-hour nursing care, supervision, and
rehabilitative therapies, all aimed at enhancing residents' quality of life. The services provided by NHC Group align
ANNUAL REPORT 2024
57
with the EU Taxonomy under section 12.1 Residential care activities, which include facilities offering long-term care,
assisted living, and nursing home services.
Alignment review:
the majority of the facilities are owned by municipalities, with NHC Group acting as the operator under contractual
agreements.
As a result, the Do No Significant Harm (DNSH) criteria and minimum safeguards under the EU Taxonomy are not
directly applicable to NHC Group’s operations.
While NHC Group’s residential care activities fall within the EU Taxonomy’s 12.1 Residential Care Activities category,
the company does not own the facilities and primarily operates within municipally owned properties. This means
that environmental responsibility for the buildings, including compliance with DNSH and minimum safeguards,
remains with the municipal property owners.
Minimum social safeguards
The minimum safeguards assessment has been conducted on group level, based on existing policies and procedures
covering the Group. NHC Group is comply with the OECD Guidelines for Multinational Enterprises and The UN
Guiding Principles on Business and Human Rights.
Please refer to the following sections for information on NHC Group’s processes and outcomes related to minimum
safeguards:
●
Human rights, including workers’ rights: Refers to the Policy for Human Rights and decent working conditions
sections 2.
●
Anti -corruption: Refers to the principles in code of conduct under the Anti -corruption section
There have not been any reported incidents where breach of human rights nor any cases of corruption have been
registered in 2024.
The information referred to in Article 8(6) and (7) shall be presented as follows, for each applicable key
performance indicator (KPI).
Row
Nuclear energy related activities
1
The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
No
2
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well as their safety upgrades, using best available technologies.
No
3
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that
produce electricity or process heat, including for the purposes of district heating or industrial processes such
as hydrogen production from nuclear energy, as well as their safety upgrades.
No
Fossil gas related activities
4
The undertaking carries out, funds or has exposures to construction or operation of electricity generation
facilities that produce electricity using fossil gaseous fuels.
No
5
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
combined heat/cool and power generation facilities using fossil gaseous fuels.
No
6
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat
generation facilities that produce heat/cool using fossil gaseous fuels
No
58
NORLANDIA HEALTH & CARE GROUP AS
Turnover
* For the purposes of this illustrative template, this figure shows the: Taxonomy-aligned turnover of the activity / Total Taxonomy eligible turnover of the
activity.
** Taxonomy-aligned turnover of the activity/ Total turnover of undertaking
Legal Disclaimer
The content of the tool does not extend or alter in any way the rights and obligations deriving from the EU legislation nor does it introduce any additional
requirements on the concerned operators and competent authorities. It does not substitute the provisions under the EU Taxonomy Regulation ((EU) 2020/852)
and its Delegated Acts that the undertaking should follow. The purpose of the output of the tool (Excel file) is merely to give an instructive example for some
undertakings on how to implement the relevant legal provisions. It cannot be excluded that the Excel Sheet does not include all information that an
undertaking may need to report under the EU Taxonomy Regulation ((EU) 2020/852). It should be noted that the current template does not yet refer to the
updated reporting templates included in Annex V to Delegated Regulation (EU) 2023/2486 (‘Environmental Delegated Act’), which amends Delegated
Regulation (EU) 2021/2178.
For more information on the qualitative reporting requirements under the EU Taxonomy, please refer to Delegated Regulation (EU) 2021/2178 (‘Disclosures
Delegated Act’).
ANNUAL REPORT 2024
59
CapEx
* For the purposes of this illustrative template, this figure shows the: Taxonomy-aligned turnover of the activity / Total Taxonomy eligible turnover of the
activity.
** Taxonomy-aligned CapEx of the activity/ Total CapEx of undertaking
Legal Disclaimer
The content of the tool does not extend or alter in any way the rights and obligations deriving from the EU legislation nor does it introduce any additional
requirements on the concerned operators and competent authorities. It does not substitute the provisions under the EU Taxonomy Regulation ((EU) 2020/852)
and its Delegated Acts that the undertaking should follow. The purpose of the output of the tool (Excel file) is merely to give an instructive example for some
undertakings on how to implement the relevant legal provisions. It cannot be excluded that the Excel Sheet does not include all information that an
undertaking may need to report under the EU Taxonomy Regulation ((EU) 2020/852). It should be noted that the current template does not yet refer to the
updated reporting templates included in Annex V to Delegated Regulation (EU) 2023/2486 (‘Environmental Delegated Act’), which amends Delegated
Regulation (EU) 2021/2178.
For more information on the qualitative reporting requirements under the EU Taxonomy, please refer to Delegated Regulation (EU) 2021/2178 (‘Disclosures
Delegated Act’).
60
NORLANDIA HEALTH & CARE GROUP AS
OpEx
* For the purposes of this illustrative template, this figure shows the: Taxonomy-aligned turnover of the activity / Total Taxonomy eligible turnover of the
activity.
** Taxonomy-aligned OpEx of the activity/ Total OpEx of undertaking
Legal Disclaimer
The content of the tool does not extend or alter in any way the rights and obligations deriving from the EU legislation nor does it introduce any additional
requirements on the concerned operators and competent authorities. It does not substitute the provisions under the EU Taxonomy Regulation ((EU) 2020/852)
and its Delegated Acts that the undertaking should follow. The purpose of the output of the tool (Excel file) is merely to give an instructive example for some
undertakings on how to implement the relevant legal provisions. It cannot be excluded that the Excel Sheet does not include all information that an
undertaking may need to report under the EU Taxonomy Regulation ((EU) 2020/852). It should be noted that the current template does not yet refer to the
updated reporting templates included in Annex V to Delegated Regulation (EU) 2023/2486 (‘Environmental Delegated Act’), which amends Delegated
Regulation (EU) 2021/2178.
For more information on the qualitative reporting requirements under the EU Taxonomy, please refer to Delegated Regulation (EU) 2021/2178 (‘Disclosures
Delegated Act’).
ANNUAL REPORT 2024
61
3.
Social Information
3.1 OWN WORKFORCE [ESRS S1]
3.1.1 Strategy [SBM 3]
Efforts linked to impact on working conditions, secure employment
Ensuring secure employment is directly impacting employee satisfaction and retention. By fostering stable
employment conditions NHC Group can enhance workforce stability and overall performance. The following efforts
are linked to secure employment:
●
Regularly assess the types of employment contracts offered —such as temporary, part-time, and full-time —to
maintain a balanced mix that supports both organizational flexibility and job security for employees.
●
Provide opportunities for temporary or part-time employees to transition into full-time roles whenever
possible, reinforcing long-term job security.
●
Establish clear guidelines for outsourcing practices, ensuring that external personnel are utilized in a way that
safeguards job security and preserves the quality of work life for employees.
Efforts linked to working conditions, secure employment as a risk
A strong internal workforce is crucial for ensuring reliable service delivery. Insufficient access to qualified personnel
increases the risk of delivery failures and overreliance on costly temporary solutions. By investing in stable,
attractive working conditions and secure employment, NHC Group can enhance employee retention, attract skilled
professionals, and reduce dependence on external staffing. The following efforts support this goal:
●
Enhance the attractiveness of internal roles by ensuring competitive and stable employment terms, helping to
retain qualified staff and minimize knowledge loss.
●
Actively invest in the development and upskilling of the current workforce to meet evolving service demands
and reduce the need for temporary staffing.
●
Monitor staffing patterns to identify gaps early and address them through targeted recruitment, internal
mobility, and structured succession planning.
●
Foster a work environment that supports long-term commitment through fair scheduling, manageable
workloads, and clear development pathways.
Efforts linked to impacts in working conditions, health and safety
Health and safety focusing on minimizing negative impacts and promoting a safe and healthy working environment,
particularly in welfare industry with physically and mentally demanding jobs.
The following efforts are linked to health and safety in employment:
●
Conduct regular risk assessments to identify potential hazards related to tasks such as heavy lifting. Implement
appropriate risk management strategies including the use of safety equipment and training.
●
Establish routine health monitoring for employees to early detect and manage work-related illnesses, reducing
the incidence of long-term health issues by for example work environment surveys.
●
Foster a culture of safety through continuous education, training, and engagement initiatives that encourage
employees to take an active role in maintaining a safe workplace.
The table shows how each segment and specific employee group look at health and safety aspects and secure and
illustrated in the employment categories.
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NORLANDIA HEALTH & CARE GROUP AS
Segment
Specific
employee
group
Health and safety aspects
Secure employment aspects
Preschools
Permanent
Ergonomic work environment
Stress management
Long-term contracts
Predictable schedules
Benefits (e.g. retirement plans)
Temporary
Same level of safety training as permanent
staff, focus on child safety and emergency
procedures.
Short-term contracts, often without
benefits, less job security.
Non-
guaranteed
Basic safety training, often less access to
in-depth safety resources compared to
permanent staff.
Highly variable hours, no long-term job
security, often no benefits.
Integration
Services
Permanent
Regular training on cultural sensitivity,
conflict resolution, and personal safety.
Stable employment, opportunities for
advancement, full employee benefits.
Temporary
Safety training relevant to current social
and cultural climates, temporary access to
support resources.
Often project-based with end-date,
limited benefits.
Non-
guaranteed
Basic training focused on immediate tasks,
limited ongoing support.
Irregular work without guarantees of
hours or continuation, minimal
benefits.
Care
Permanent
Extensive training in patient handling,
emergency responses, and personal
health, shift work, heavy lifting
Secure positions with contracts, regular
hours, predictable schedules
Temporary
Required health and safety training, but
less focus on long-term health
management.
Contractual work that may end with
project or need, often without full
benefits.
Non-
guaranteed
Basic safety protocols, often less formal
training due to irregular nature of job.
No guaranteed hours, often called in as
needed, usually without benefits.
Individual and
Family Services
Permanent
Regular training in handling sensitive
situations, self-care, and safety, shift work
Long-term employment, predictable
schedules, full benefits package.
Temporary
Similar safety training as permanent staff
but tailored to shorter engagement
periods.
Temporary contracts, often limited to
specific periods, fewer benefits.
Non-
guaranteed
Often minimal training, focused on
immediate task safety and compliance.
Work based on demand, no
guaranteed hours or long-term
employment, typically no benefits.
3.1.2 Own workforce IRO Management
Material impacts, risks and opportunities related to own workforce
Secure employment
various contract types such as temporary and part-time contracts, as well as outsourced personnel. Secure
employment is fundamentally about providing job security and the nature of employment contracts. Relying
heavily on non-permanent employment options—like temporary or part-time contracts and hired personnel—can
negatively impact employees, potentially leading to job insecurity and instability. This impact is considered to be
specific and not widespread or systemic.
Secure employment also includes a financial materiality risk related to insufficient access to qualified personnel,
which may lead to service delivery failures or increased reliance on temporary staff. Although staffing levels are
contractually defined, challenges in recruitment and retention—particularly in the context of an ageing
population—could result in non-compliance with service agreements, potential penalties, or elevated operational
costs. The financial impact of reduced margins due to the use of temporary hires is estimated to be below MNOK
40, resulting in a severity score of 1. However, given demographic trends and increasing long-term demand for
ANNUAL REPORT 2024
63
qualified staff, the likelihood of this risk occurring is assessed at a level 3. These negative impacts and risks relate to
all segments, ref tab above.
Health and safety
illnesses due to unsafe or unhealthy work environments. Such conditions can increase the incidence of employee
injuries and work-related diseases, which in turn can lead to higher rates of sick leave and adversely affect
employee health. In the context of NHC's industry, which involves activities like heavy lifting, there is a heightened
risk of injuries and work-related illnesses. These health and safety challenges can erode trust and loyalty among
staff, potentially leading to increased sick leave and employee turnover.
Identified IRO
(Impact, Risk, Opportunity)
Category
Value chain
Secure employment
Negative impact
Own operations
Secure employment
Risk
NHC Group
Health and safety
Negative impact
Own operations
Table: Identified IRO S1, secure employment and health and safety
NHC Group recognizes that our own workforce is a key driver of both our operational and strategic decisions. NHC
Group has identified and assessed the actual and potential impacts, risks and opportunities related to our own
workforce through a structured process, which includes engagement with the employees.
NHC Group has evaluated the impacts on our own workforce, considering both direct and indirect effects arising
from our business model and strategic direction. These impacts include e.g., health and safety concerns, changes in
working conditions, job security, etc. The workforce's well-being and development are integral to ensuring the
sustainability of our operations, and we have implemented proactive measures to mitigate negative effects and
enhancing positive outcomes. Example of this is a project that is proposed and originated in dialogue with the
establishment of EWC (European Works Council, Union and regulations), where several aspects of own workforce
such as recruit and retain activities and employee satisfaction measuring via pulse surveys are proposed to be
included.
The findings related to own workforce have contributed to adapting NHC Group's strategy. NHC Group has
integrated sustainability goals and workforce considerations into the business model, ensuring that growth and
operational decisions account for the evolving needs of the workforce. This includes e.g. investment in employee
training programs, workforce restructuring, adoption of more sustainable technologies, etc.
NHC Group recognizes that its strategy and business model both influence and are influenced by the actual and
potential impacts on its Own workforce. Through a structured process aligned with ESRS 2 IRO-1, we have identified
and assessed these impacts to ensure our strategic direction fosters long-term workforce resilience, well-being, and
operational sustainability.
How workforce impacts originate from or are connected to NHC Group’s strategy and business model
NHC Group’s business model and strategic priorities create both risks and opportunities for its workforce. Key
connections include:
●
Job security and employment structures
-
NHC’s operating model requires a balance between permanent and temporary contracts to maintain
operational flexibility. However, reliance on temporary and part-time contracts can lead to concerns
about job security.
-
To mitigate negative impacts, NHC continuously adapts hiring prosesses, ensuring that business growth
aligns with stable employment conditions.
●
Workforce availability and service continuity
-
The demand for qualified personnel in healthcare and care services is rising due to demographic shifts
and an aging population.
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NORLANDIA HEALTH & CARE GROUP AS
-
Labor shortages impact service delivery, operational costs, and workforce well-being, making workforce
planning a strategic priority.
-
NHC integrates long-term workforce planning and skills development programs into its business model
to maintain service excellence.
●
Workplace health and safety impacts
-
The nature of NHC’s operations (e.g., heavy lifting, high-pressure environments) increases the risk of
injuries and work-related illnesses.
-
To reduce these impacts, operation procedures incorporates targeted safety measures, ergonomic
workplace solutions and enhanced employee well-being initiatives.
Insights from workforce impact assessments directly inform and shape NHC operational processes and operational
decisions. Key adaptations could be for example:
●
Strategic workforce investments
-
Increased focus on recruitment and retention processes, including targeted hiring campaigns and
competitive employment packages.
-
Expansion of employee training and professional development programs to build workforce resilience
and meet evolving skill demands.
●
Operational adjustments for workforce stability.
-
Adoption of sustainable employment models that balance operational flexibility with job security.
-
Implementation of employee engagement initiatives to strengthen workplace satisfaction, retention,
and overall well-being.
●
Workplace safety enhancements
-
Strengthened health and safety policies, including proactive risk management and well-being programs
to reduce workplace injuries and sick leave rates.
The relationship between material risks and opportunities arising from impacts and dependencies on the workforce
and NHC Group's strategy and business model. For example, the risk of employee burnout due to high workloads is
mitigated by introducing flexible working hours and wellness programs, aligning business objectives with
sustainability goals.
The types of employees and non-employees in NHC Group's workforce subject to material impacts by its operations
include employees, self-employed people, and people provided by third-party undertakings primarily engaged in
employment activities. For example, the company may employ a number of contractors for its IT projects, who are
also included in the scope of disclosure.
Operations at significant risk of incidents of forced labor or child labor, either by type of operation or geographic
area, are monitored and addressed through compliance and ethical standards. For example, the company in some
markets has implemented routines for monitoring employees with temporary working permits in Individual &
Family, such as asylum seekers or other foreign workers as they are waiting for permanent work permissions.
NHC Group's understanding of how people with characteristics, those working in particular contexts, or those
undertaking particular activities may be at greater risk of harm is developed through detailed materiality
assessments. For example, hourly workers, employees with temporary working permits or hired staff are at greater
risk of harm.
3.1.2.1 Policies related to own workforce [S1-1]
NHC has several policies related to its workforce, reviewed annually and approved by the Group Management
Team. It varies from policy to policy whether the specific impact of health and safety is addressed explicitly or
indirectly, for example by our commitment to create safe and healthy working environments. The policies do not
directly address the impact and risk related to secure employment, but reduces the negative impact and risk
indirectly, for example by focusing on reducing turnover.
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65
NHC HR Policy
NHC Groups HR Policy is all about welfare to the people and their wellbeing. Enabling our employees and managers
to deliver high quality, sustainable services is key to our operations. By focusing on the best possible working
environment, adhere to requirements and routines we aim to progress standards. Our systematic work is aimed at
the psychosocial and physical working environment to be perceived as safe, predictable and health promoting.
We start with our employees but understand our responsibility in a broader sense: End users, next of kin, suppliers,
neighbours or visitors are influenced by our operations.
The policy emphasizes on fair working conditions to ensure secure employment for the workforce. We create equal
opportunities and a good work environment for all groups. We work continuously to break down gender and other
segregation throughout our organisation. We stay below average industry turnover. All of the above addresses the
impact and risk of secure employment.
The policy emphasizes on maintaining healthy and safe workplace conditions, with provisions for preventing
accidents and promoting a safe working environment and to operate with respect for and promote human rights
and aim to progress standards further. Ensure psychosocial and physical safe, predictable and health promoting
work environment
Quality Health Security Environment (QHSE) Policy
NHC Group's QHSE policy underscores its commitment to delivering high-quality and sustainable welfare services
while ensuring the safety and well-being of its workforce and minimizing environmental impact. This policy is
important to NHC Group's operations as it addresses the impact related to healthy and safe workplace conditions.
The QHSE policy addresses critical areas such as workplace safety, environmental impact, and health standards. It
includes commitments to risk reduction measures, systematic improvement practices through incident reporting
and analysis, and active employee involvement in sustaining a safe and healthy working environment. Compliance
and effectiveness are monitored through mechanisms like annual reviews, ensuring ongoing adherence and
continuous improvement in QHSE performance.
ESG Policy
NHC Group's ESG policy reflects its commitment to progressive, sustainable welfare and fostering a more
sustainable society. The ESG policy addresses the impacts related to healthy and safe workplace conditions through
sustainable environmental and social practices that enhance employee well-being.
Senior management at NHC Group holds accountability for implementing and adhering to the ESG policy, ensuring
it is integrated into strategic decision-making processes and daily operational practices, reinforcing its importance
across all levels of the organization.
Policy for Human Rights and Decent Working Conditions
NHC Group is committed to respect human rights within all aspects of our operations and business relationships.
NHC Group's human rights policy commitments include processes to monitor compliance with the Norwegian
Transparency Act. The policies focus on respecting human rights and decent working conditions, engaging with the
workforce, and providing remedies for negative impacts. For instance, NHC Group has established a grievance
mechanism for anonymously reporting human rights violations. The policy aligns with internationally recognized
instruments such as the UN Guiding Principles on Business and Human Rights, the ILO Declaration on Fundamental
Principles and Rights at Work, and the OECD Guidelines for Multinational Enterprises, ensuring consistency with
global standards and best practices.
This policy includes measures to prevent or mitigate negative impacts on human rights and decent working
conditions, encompassing health and safety concerns. NHC commits to maintaining a safe working environment by
identifying risks and taking action against negative impacts.
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NORLANDIA HEALTH & CARE GROUP AS
The policy covers all employees, including those on temporary or part-time contracts and hired personnel. It
emphasizes NHC's responsibility to respect and promote decent working conditions, aligning with concerns about
job security and employment contracts. The policy for human rights and decent working conditions addresses the
impacts and risks related to secure employment and health and safety.
NHC Group commits to respecting the Norwegian Transparency Act, ensuring transparent and responsible
operations concerning human rights and decent working conditions.
The policies cover all workforce groups, with particular attention to vulnerable groups. NHC Group has specific
initiatives to support employees with disabilities, ensuring equal opportunities and access to resources.
The following specific issues addressed in the policy
●
Trafficking in human beings: Measures are in place to prevent and respond to such incidents.
●
Forced labor: Ensuring all employees work voluntarily and under fair conditions.
●
Child labor: Prohibiting the employment of individuals below the legal working age.
●
Workplace accidents: Regular safety training and risk assessments are conducted to prevent accidents.
●
Equal opportunities and diversity: Promoting diversity and inclusion, addressing discrimination based on
various factors such as racial and ethnic origin, color, sex, sexual orientation, gender identity, disability, age,
religion, political opinion, nation al extraction, or social origin.
NHC uses the Ethics Board to monitor and respond to incidents of discrimination. In Norway, this is covered by the
Equality and Anti-Discrimination Law, which obligates the company to prevent discrimination and issue an annual
report on this work. NHC also performs due diligence focused on human rights and decent working conditions, with
discrimination being a key topic.
Scope of the policies
value chain in all geographies where NHC Group operates. These policies apply to all employees, leaders, hired
personnel, consultants, company representatives, and anyone working on behalf of NHC Group. Exclusions, if any,
are explicitly stated in specific policy documents, primarily concerning areas where local regulations or market
conditions necessitate differentiated approaches. Currently there are no examples where exclusions apply.
Accountability
The Management team in NHC holds the primary responsibility for the implementation of these policies. The Board
is dedicated to ensuring that management at all levels is in alignment with the objectives of the policy. They also
ensure that adequate resources are provided to support effective implementation and ongoing monitoring.
Third-party standards and initiatives
NHC Group commits to respecting several third-party standards and initiatives through the implementation of
these policies. These include among others ISO standards for quality and safety such as for example ISO 9001 and
ISO 14001, guiding its approach to quality and environmental management for some of our segements
Addressing health and safety in relation to the UN Sustainable Development Goals (SDGs), particularly SDG 3 (Good
Health and Well-being) and SDG 8 (Decent work and economic growth), emphasizes the critical importance of
ensuring the personal safety, health and security of own workforce.
Consideration of stakeholder interests
In setting its policies, NHC Group has engaged with key stakeholders such as management in each segment,
workgroups consisting of selected employees to ensure that their interests are considered and addressed. This
engagement includes several iterations and workshops on multiple levels of the organization and management
teams. The aim was to create policies that not only comply with legal standards but also resonate with the needs
and expectations of our employees.
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67
NHC Group are making the policies available on relevant forums, such as internal communications channels.
3.1.2.2 Processes for engaging with own workers and workers’ representatives about impacts [S1-2]
NHC Group actively engages with its workforce to inform decisions and manage the actual and potential impacts on
its employees. This engagement occurs both directly with the workforce and through workers' representatives. The
engagement process includes various stages and types, such as information sharing, consultation, and participation,
and occurs at different frequencies depending on the context, such as ongoing, quarterly, annually, or in response
to specific legal or stakeholder requirements.
The most senior role within NHC Group responsible for ensuring that this engagement happens and that the results
inform the company's approach is the Group Director for Quality, Sustainability and Organization. This role oversees
the operational responsibility for workforce engagement and ensures that feedback is integrated into decision-
making processes.
NHC Group has established a Global Framework Agreement with workers' representatives to respect the human
rights of its workforce. This agreement enables the company to gain insights into the perspectives of its employees,
particularly those who may be vulnerable or marginalized, such as women, migrants, and people with disabilities.
To gain insights into the perspectives of its workforce, NHC Group takes several steps, including:
●
Conducting regular surveys and feedback sessions to gather input from employees.
●
Holding meetings and consultations with workers' representatives to discuss issues and concerns.
●
Implementing specific programs and initiatives aimed at supporting vulnerable and marginalized groups within
the workforce.
When fulfilling the disclosure requirement, NHC Group considers the following:
●
The type of engagement (information, consultation, participation) and how it is conducted.
●
How feedback is recorded and integrated into decision-making processes, and how employees are informed
about the impact of their feedback on decisions.
●
Whether engagement activities occur at the organizational level or at lower levels, such as site or project levels,
and how information from these activities is centralized.
●
The resources allocated to engagement, including financial and human resources.
●
How the company engages with its workforce and workers' representatives on the impacts of reducing carbon
emissions and transitioning to greener operations, including aspects such as restructuring, employment loss or
creation, training and upskilling, gender and social equity, and health and safety.
This approach ensures that NHC Group effectively manages the impacts on its workforce and incorporates their
perspectives into its decision-making processes.
3.1.2.3 Processes to remediate negative impacts and channels for own workers to raise concerns [S1-3]
NHC Group has an approach to addressing and remedying negative impacts on its workforce on a case by case
basis. There are different arenas such as AMU (works council in Norway) and occupational health where necessary,
assessing and providing remedies when the company has caused or contributed to material negative impacts. The
effectiveness of these remedies is regularly assessed to ensure they meet the needs of the affected individuals.
NHC Group has established internal channels for its workforce to raise concerns or needs directly with the
company. These channels are designed to be accessible and effective, allowing employees to voice their issues and
have them addressed promptly. Employees can report concerns via email at
. There is also a
possibility for external employees to use a form on websites in operations in Sweden.
NHC Group has a grievance and complaints handling mechanism in place related to employee matters. This
mechanism is designed to handle complaints efficiently and fairly, ensuring that all employee concerns are
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NORLANDIA HEALTH & CARE GROUP AS
addressed in a timely manner. The complaints are monitored on a regular basis by the ethics committee, and alert
is set on e-mails if complaints are registered.
The company supports the availability of these channels in the workplace through various processes. This includes
regular communication with employees about the available channels and ensuring that these channels are
accessible to all employees, regardless of their location or role within the company.
The company tracks and monitors issues raised through these channels and ensures their effectiveness. This
includes involving stakeholders who are intended users of these channels to provide feedback and ensure
continuous improvement by using employee surveys and pulse surveys.
Taking action on material impacts on own workforce, and approaches to mitigating material risks and pursuing
material opportunities related to own workforce, and effectiveness of those actions [S1-4]
3.1.2.4 Processes for identifying actions [S1-4]
NHC Group follows an approach to identify necessary actions in response to actual or potential negative impacts on
its workforce. This process ensures that relevant factors are considered and that the company can effectively
address issues that arise.
NHC Group intent that its practices do not cause or contribute to material negative impacts on its workforce by
adhering to international guidelines such as the UN Guiding Principles on Business and Human Rights and the OECD
Guidelines for multinational enterprises. The company is particularly attentive to rights where there is the greatest
risk of negative impact and to vulnerable groups. When tensions arise between the prevention or mitigation of
material negative impacts and other business pressures, the company prioritizes the well-being of its workforce.
NHC Group are looking into several actions to prevent or mitigate material negative impacts on its workforce
presented in the table below. Some of these initiatives are implemented in various degrees in some segments, but
not on a group level with specific timelines and targets.
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69
Key
action
Description and year
of completion
Scope of
action
Expected outcome
Policy objective
contribution
Target in
place
Secure employment
Flexible
working
hours
Implementing more
flexible working
hours to address
employee well-being.
On-going and varies
in the segments and
countries.
All
segments
This action directly
addresses working
conditions by providing
employees with more
control over their work
schedules, which can lead
to improved job
satisfaction and work-life
balance, potentially
reducing turnover and
absenteeism.
Supports the goal of secure
employment by enhancing
employee well-being and
fosters a supportive work
environment that can lead
to increased employee
retention and reduced
absenteeism, aligning with
the policy’s emphasis on fair
and stable working
conditions
No
Training
Establishing training
and development
program to enhance
employee’s skills and
knowledge. Ongoing,
and is addressed with
different actions in
the segments. An
example is Aberia
they are supporting
selected staff to get a
formal education.
All
segments
Enhancing employees' skills
and knowledge can lead to
better job performance and
security, reducing the need
for temporary contracts and
improving overall workforce
stability.
Improves job performance
but also increases job
security, reducing the
necessity for temporary
contracts and contributing
to a more stable and well-
prepared workforce. This
aligns with the policy's focus
on continuous improvement
and workforce stability.
No
Health and safety
Training
Establishing training
and development
program to enhance
employee’s skills and
knowledge. Ongoing
and have different
approach and targets
in segments. As an
example in Norlandia
Preschool they
provide training to
address sickleave
trends and risk
assessment to all
managers
All
segments
Enhancing employees' skills
and knowledge fosters a
safer work environment by
equipping staff with the
necessary competencies to
prevent accidents, mitigate
risks, and reduce work-
related injuries and sick
leave
By equipping staff with the
knowledge to manage
workplace risks and prevent
accidents, this training
reduces the incidence of
work-related injuries and
illnesses, promoting a
healthier work environment
and adhering to the
commitment of maintaining
high standards of workplace
safety and employee well-
being.
No
The company has processes in place to provide or enable remedies for actual material impacts. This includes a
structured approach to addressing grievances and ensuring that affected individuals receive appropriate support by
the company, employee representatives or external service from occupational health. There has not been reported
any cases in the reporting year.
NHC Group has initiatives aimed at delivering positive impacts for its workforce. These initiatives focus on areas
such as training and other programs designed to enhance the well-being and capabilities of employees.
The effectiveness of actions and initiatives is tracked through monitoring and evaluation. For example, the company
may conduct surveys to gather feedback from employees and measure the success of its initiatives.
NHC Group is committed to transparency in reporting its initiatives. We focus on documenting specific activities,
such as the number of employees trained. However, it is important to note that while we can quantify participation
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NORLANDIA HEALTH & CARE GROUP AS
in training programs, assessing the direct effects of these trainings on for example employees’ health is more
complex and not explicitly measured.
There is no formalized process for NHC Group, while segments are seen as autonomous identifying and setting
actions in response to either own management initiative or with input and suggestions from employee’s various
channels, such as employee works council or through union work.
The company may set targets for reducing workplace accidents and track progress through regular safety audits and
work to reduce overall sick leave that would remedy the need to hire personnel due to lack of qualified personnel.
Mitigating actions for negative impacts on own workforce that are being used are:
1.
Transitioning towards more secure employment options where feasible, such as converting part-time or
temporary roles to full-time positions to enhance job security and employee satisfaction.
2.
Implementing stricter health and safety protocols, regular training sessions, and providing the equipment to
reduce the risk of injuries and illnesses.
3.
Establishing regular feedback mechanisms where employees can voice their concerns and suggestions related
to their working conditions and employment terms.
The above is all part of the business planning process involving the different segments within NHC Group. The
business planning process includes a yearly update of the strategy as well as the development of the business plan
for the up-coming year. As part of the annual business planning process a yearly strategy session with the
Management team is also conducted where the actions plans and resources to manage material impacts, risk and
opportunities to its workforce are reported. Actions implemented as part of the due diligence process according to
the Norwegian Transparency Act are followed up by Management and by the Board of Directors at least annually.
Each segment ensures that its own practice do not negatively impact its own workforce by working with union
representatives, works councils and other relevant bodies consisting of representatives from employees and
management.
Avoiding negative impact on our workforce is an integral part of how we operate. If tension arise between negative
impact and business pressure, careful consideration is done by management and if necessary reported and
addressed in monthly business reviews.
Available resources managing material impacts related to own workforce are internal HR resources, specialist and
external parties such as occupation health.
3.1.3 Own workforce Metrics and targets
Targets related to managing material negative impacts, advancing positive impacts, and managing material risks
and opportunities [S1-5]
3.1.3.1 Reducing negative impacts on workforce [S1-5]
NHC Group have an ambition to reduce negative impacts on its workforce by adhering to international human
rights standards and ensuring decent working conditions. For instance, the group aims to ensure that all employees
have access to safe and healthy working conditions, with a particular focus on vulnerable groups. In relation to
health and safety a KPI measuring fatal injuries and major accidents is in place and the goal is to have zero fatal
injuries and major accidents but has yet to be set as a target.
NHC Group is committed to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities related to our own workforce. However, as of the current reporting period, NHC
Group has not established measurable outcome-oriented targets in these areas.
Reasons for not having adopted targets: This is due to the ongoing development of our sustainability strategy,
which requires thorough analysis and stakeholder engagement to ensure alignment with our long-term goals. We
ANNUAL REPORT 2024
71
are in the process of enhancing our data collection and analysis capabilities to ensure that any targets set are
informed, realistic, and aligned with both our strategic objectives and sustainability commitments.
Future plans for setting targets: NHC Group intends to establish measurable outcome-oriented targets. We are
currently projecting to set these targets within the next two fiscal years. This timeframe will allow us to complete
the necessary groundwork in enhancing our data systems and ensure that our targets are based on metrics that
reflect our material impacts, risks, and opportunities.
Level of ambition and indicators used: While specific quantitative targets are not yet defined, NHC Group maintains
a high level of ambition to enhance workforce well-being and ensure a safe working environment.
3.1.3.2 Characteristics of the company’s employees [S1-6]
NHC Group's workforce includes all employees who perform work for any of the undertaking’s entities included in
its sustainability reporting. This encompasses a diverse range of roles and responsibilities across various
departments and locations.
Where segments are used, Property has been combined with NHC, i.e., administration for these employee-related
tables, as there are few employees and it represents a small part of the business.
Methodologies and assumptions
Employees are individuals who are in an employment relationship with the undertaking (‘employees’) and non-
employees who are either individual contractors supplying labor to the undertaking (‘self-employed people’) or
people provided by undertakings primarily engaged in ‘employment activities’ (NACE Code N78).
The data is reported in head count accounting for part-time and full-time employees. The data is gathered based on
best effort,
By “best effort,” we mean that we strive to collect and reconcile data as accurately as possible despite
operating under various reporting frameworks collected from different ERP, HR and quality systems used in the
segments and countries. However, due to these differences, a degree of uncertainty remains until our systems are
fully harmonized at a Group level.
consistent data.
The numbers are reported at the year end of the reporting period. This approach helps to smooth out any
fluctuations in employee numbers due to seasonal variations, project-based hiring, or other temporary changes.
Measurement uncertainty in tables under:
can be attributed to several factors, including project-based hiring, seasonal variations, and strategic initiatives such
as mergers and acquisitions. For example, the implementation of new digital solutions and sustainability initiatives
may require temporary increases in workforce size.
There is uncertainty associated with the measurement and counting of employees, as the company operates in
multiple countries with varying regulations, labor laws, and reporting requirements. The guidelines for calculating
Headcounts, full-time equivalents (FTEs), part-time employees, and other workforce metrics differ across these
jurisdictions. Individuals who were engaged on a temporary or hourly basis without a permanent employment
contract during the year has also been included in the calculations presented in the tables below.
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NORLANDIA HEALTH & CARE GROUP AS
Table
[S1-6-1],
Gender
Number of employees (head count)
Male
698
2
Female
22662
Other*
Not reported
Total employees
29
644
Table
[S1-6-2]
employees representing at least 10% of its total number of employees.
Country
Number of employees (head count)
Norway
8
857
Sweden
1
8160
Finland
1381
Poland
380
Netherlands
720
Germany
146
Split of gender pr country is currently not available.
Table
[S1-6-1]
, total number of employees by contract type, broken down by gender (head count or FTE)*.
2024
Female
Male
Other**
Not disclosed
Total
Number of permanent employees (head count)
9
092
2140
0
0
11
232
Number of temporary employees (head count)
4078
15
77
0
0
5
655
Number of non-guaranteed hours employees (head count)
9
492
3
265
0
0
12
757
*Reporting on full-time and part-time employees are voluntary
**Gender as specified by the employees themselves
Employee Turnover
Table [
S1-6-3
], number of employees who have left the undertaking during the period and rate of turnover in the
period (Headcount).
2024
Segment
Number of employees who have left
undertaking
Percentage of employee turnover
NHC
33
12,8
Preschool Scandinavia
835
11,6
Preschool International
315
16,4
Individual & Family
695
6,14%
Hero
131
7%
Care
450
6,4%
NHC Property
0
0%
ANNUAL REPORT 2024
73
The turnover calculation is based on the aggregated number of employees who leave voluntarily or due to
dismissal, retirement, or death in service.
3.1.3.3 Health and safety metrics [S1-14]
Table [
S1-14-1
] presents percentage of people in its own workforce who are covered by health and safety
management system based on legal requirements, number of recordable work-related accidents for own
workforce, percentage of recordable work-related accidents for own workforce
2024
Segment
Percentage of people
in its own workforce
who are covered by
health and safety
management system
based on legal
requirements
Number of
recordable work-
related accidents for
own workforce
Percentage of
recordable work-
related accidents for
own workforce
in own workforce as
result of work-related
injuries and work-
related ill health
CARE
100%
5
1,011490532
0
Preschools
Scandinavia
100%
1
0,137892995
0
Preschool
International
100%
0
0
0
Individual &
family
100%
4
1,055227995
0
Integration
services
100%
0
0
0
NHC
Property
100%
0
0
0
The number and percentage who are covered by the undertaking’s health and safety management
system is disclosed and calculated on a head count basis.
In computing the rate of work-related injuries the respective number of cases is divided by the
number of total hours worked by people in NHC’s
own workforce
and multiplied by 1 000 000. The
total number of hours worked is estimated on the basis of one FTE working 1850 hours annually.
Thereby, these rates represent the number of respective cases per one million hours worked. A
rate based on 1 000 000 hours worked indicates the number of work-related injuries per 500 full-
time people in the workforce over a 1-year timeframe.
3.1.3.4 Incidents, complaints and severe human rights impacts [S1-17]
The table presents the number of incidents of discrimination, number of complaints filed through channels for
people in own workforce to raise concerns, number of severe human rights issues and incidents connected to own
workforce and amount of fines and penalties related to these incidents. All data in the table are sourced and
verified according to standardized accounting principles, which define how discrimination cases are identified and
reported, ensuring transparency and comparability over time. Discrimination refers to any unfair or prejudicial
treatment of individuals or groups based on protected characteristics such as race, gender, religion, sexual
orientation, or disability.
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NORLANDIA HEALTH & CARE GROUP AS
2024
Segment
Care
Preschool
Scandinavia
Preschool
International
Individual
& family
Integration
services
NHC
Property
NHC
Group
Number of incidents of
discrimination reported
1
1
0
2
0
0
0
Number of complaints
filed through channels
for people in own
workforce to raise
concerns
1
6
0
2
0
0
0
Number of complaints
filed to National Contact
Points for OECD
Multinational
Enterprises
0
0
0
0
0
0
0
Amount of fines,
penalties, and
compensation for
damages as result of
incidents of
discrimination, including
harassment and
complaints filed
0
0
0
0
0
0
0
Number of identified
severe human rights
issues and incidents
connected to own
workforce
0
0
0
0
0
0
0
Number of identified
severe human rights
issues and incidents
connected to own
workforce that are cases
of non respect of UN
Guiding Principles and
OECD Guidelines for
Multinational
Enterprises
0
0
0
0
0
0
0
Amount of fines,
penalties, and
compensation for severe
human rights issues and
incidents connected to
own workforce (include
currency)
0
0
0
0
0
0
0
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75
3.2 CONSUMERS AND END-USERS [ESRS S4]
3.2.1 Strategy [SBM-3]
IRO Health & Safety
Failure to protect personal safety of consumers and end-users
Neglecting to safeguard the personal safety of consumers and end-users can have severe consequences. This
includes failing to address health and safety, ensuring personal security, and protecting children through service
offerings. Poor solution design and ineffective lifecycle management can lead to health risks, security breaches, and
the endangerment of vulnerable groups. It is crucial to recognize the significance of prioritizing and delivering
services that consider the health and safety of these individuals. End-users often represent a diverse group with
varying needs, and it is essential that service quality and the specific dynamics of the user group in a particular
location and business unit are considered. This comprehensive approach is vital to prevent serious harm and ensure
the well-being of consumers and end-users at NHC group. This impact is considered to be specific and not
widespread or systemic.
Identified IRO
(Impact, Risk, Opportunity)
Category
Value chain
Health and safety
Negative impact
Own operations and down stream
Table: Identified IRO, health and safety of consumers and end-users
NHC Group's strategy and business model revolves the impacts on consumers and/or end-users. NHC Group and its
segments covers several different customer groups/groups of end-users:
●
Integrational services: Refugees and immigrants
●
Preschool: Children
●
Individual & Family: Individuals with functional variations, as well as young people and families in need of
special support
●
Care: Seniors and elderly with somatic and dementia deceases
●
Next of kin: Parents, family members, emergency contacts
For instance, the company's focus has led to the development of parent webinars in the preschools, development
of the Norlandia bread that is now made and sold in the preschools. Several projects to get customer insights have
been done in 2024 to understand and enhance customer experience and further strengthening the company as a
welfare innovator. These impacts inform and contribute to adapting the strategy and business model going forward.
NHC Group ensures its sustainability reporting includes all consumers and end-users who are likely to be materially
impacted by its operations and value chain. This includes:
1.
Direct operations: Impacts arising from the company's own activities, such as service delivery or marketing
practices.
2.
Products and services: Any potential harm or benefit caused by the products or services NHC Group offers, such
as services that could increase health risks, affect privacy, or require accurate usage information to prevent
misuse.
3.
Value chain: Impacts stemming from the company's supply chain and business relationships, including
suppliers, distributors, and partners. This covers both upstream (suppliers) and downstream (customers)
activities.
Essentially, NHC Group must not only consider the immediate users of its products and services but also those
indirectly affected through the entire value chain such as next of kin.
Material risks and opportunities for NHC Group arising from impacts and dependencies on consumers/end-users
are managed through strategic planning and stakeholder engagement. Failing to protect the personal safety of
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NORLANDIA HEALTH & CARE GROUP AS
HSEstandards
and
requirements
Continuous
Evaluationand
Assessment
Trainingand
Competence
Development
User
Participation
Risk
Management
and Incident
Handling
Follow-Upand
Improvement
Leadershipand
Culture
Customer
communication
Health and safety
HSE
National and local regulations,
ethical guidelines, as well as
specific objectives for care
and services.
Internal and external reviews,
including inspections, user
and staff surveys, and quality
checks.
Ensuring that all staff
have the right
competencies and
education to perform
their jobs to the highest
standards.
Incorporating the perspectives
and experiences of service
users and their families.
Preventive measures and
effective processes for
reporting and learning from
incidents
Continuous
improvement
through cycles of
measurement,
analysis, and
action
Management must
demonstrate
commitment to
quality by setting
clear goals,
ensuring resources,
and leading by
example in quality
practices.
Initiate transparent dialogue
and cooperation with
clients/customers for
development of welfare
services
consumers and/or end-users (for example, health and safety, security of a person, and protection of children)
through inadequate service offerings, poor solution design, and ineffective lifecycle management can lead to
serious harm. This neglect can result in health risks, security breaches, and endangerment of vulnerable groups.
Such material negative impact is considered to be individual incidents and not systemic.
NHC Group's understanding of how consumers/end-users with characteristics or those using particular
products/services may be at greater risk of harm is developed through comprehensive assessments and feedback
mechanisms. For instance, the company conducts regular surveys to gather feedback from consumers on potential
risks associated with its services. On a yearly basis customer survey results/end user satisfaction results are
gathered and reported to NHC group management.
Efforts linked to ensuring the health and safety of consumers and end-users
To be able to deliver health and safety for the end-user in all NHC Group welfare services offered our starting point
is the regulation on the markets respectively as this lays the foundation for our services and how they are to be
delivered. NHC Group is having several different customer groups where the health and safety aspects also differ,
see table below. Essential parts of the delivery are quality checks where the health and safety of the end-user is in
focus such as in the own control programs where several questions address these aspects. Training and
competence development ensures that health and safety is up to date among the employees. The quality
management systems in use are also focusing on regular risk assessments as well as on a structured approach for
continuous improvements and taking care of non-conformity incidents and reporting. Health and safety aspects for
our end-users are also vital in the culture we nurture why the local leadership at the units is critical. A transparent
and continuous dialogue and communication with our customers is also essential in securing the best possible
welfare services.
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77
Customer groups and overall health and safety aspects
Segment
Specific customer groups
Health and safety aspects
Preschool
Scandinavia
Children 1-6 years old
Hygiene and infection control, safe play environments,
supervision to prevent accidents, nutritious meals, fire
safety.
Preschool
International
Children 1-6 years old
Hygiene and infection control, safe play environments,
supervision to prevent accidents, nutritious meals, fire
safety.
Integration
services
Refugees, children and
adults
Mental health support, safe housing and living conditions,
access to healthcare, integration and language barriers,
trauma-informed care.
Care
Seniors / elderly with
somatic and/or dementia
diseases
Fall prevention, medication safety, staff training in
dementia care, emergency response readiness, proper
nutrition and hydration.
Individual and
Family
Persons with functional
variations
Socially vulnerable people
Accessible environments, personal assistance and adapted
equipment, emergency evacuation support, mental health
considerations.
Safe housing and shelter, substance abuse support,
violence prevention, mental health resources, social
reintegration support.
Table: Customer groups and overall health and safety aspects
3.2.2 Consumers and end-users IRO Management
3.2.2.1 Policies related to consumers and end-users [S4-1]
NHC Group has adopted several policies aimed at managing the material impacts of its products and services on
consumers and end-users such as the children in the preschools and the elderly at the care homes. These policies
are designed to ensure that all operations and services provided by NHC Group positively influence consumer
welfare and end-user satisfaction while mitigating associated risks and seizing potential opportunities. The general
objectives include enhancing customer satisfaction and protecting and improving health and safety of persons in
NHC’s care. Each segment have individual policies addressing matters of specific relevance for their services, for
example instructions to medical dispensing in Care, ensuring safe outdoor play areas in Preschools, fire safety in the
asylum centers and secure housing for protective childcare in Individual and Family to mention some. Each segment
operates in a very regulated environment where legal and governmental requirements apply. Monitoring processes
are in place to ensure adherence to these policies. It varies from policy to policy whether the specific impact on
consumers and end-users' health and safety is addressed explicitly or indirectly, for example by our commitment to
prioritize health and safety.
The following policies are relevant in relation to consumers and end-users:
NHC overall policy:
Code of Conduct: NHC has established a comprehensive Code of Conduct that serves as the cornerstone of our
policies to manage material impacts, risks, and opportunities related to our operations. This policy is designed to
uphold the highest standards of ethical behavior and integrity, ensuring that all actions taken on behalf of NHC align
with our core values and legal obligations.
The Code of Conduct outlines NHC’s commitment to prioritizing health and safety. The policy aims to create an
inclusive, safe, and respectful environment free from discrimination and harassment. It addresses material impacts
such as workforce diversity, employee well-being, and ethical business practices.
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NORLANDIA HEALTH & CARE GROUP AS
The policy applies to all employees, board members, consultants, agents, and lobbyists across all NHC operations,
including activities within our direct operations and interactions with our upstream and downstream value chain.
Geographically, the policy is implemented in all regions where NHC operates.
This policy underlines NHC's commitment to inspiring and raising benchmarks in progressive, sustainable welfare
within communities. By focusing on being a driver of positive change and setting high standards, NHC ensures that
the personal safety and health of consumers and end-users are prioritized in all service offerings. This commitment
helps prevent inadequate service offerings and poor solution design that could lead to serious harm, health risks, or
endangerment of vulnerable groups.
NHC Quality, Health, Security and Environment Policy:
For a general introduction to the policy, we refer to section [3.1.2.1] above. The QHSE policy is central to ensuring
the personal safety of consumers and end-users. It commits to systematic improvements in quality and consistency
in operations, managing risks, and learning from incidents to prevent harm to human health and the environment.
By resolving working environment issues and defining incidents broadly to include non-conformances and areas for
improvement, NHC actively works to enhance consumer and end-user safety, thus addressing potential failures in
protecting personal safety through effective lifecycle management and risk reduction measures.
NHC ESG Policy:
For a general introduction to the policy, we refer to section [3.1.2.1] above. The ESG policy integrates sustainability
as a core responsibility of top management and emphasizes the importance of understanding impacts on all
stakeholders, including end-users. This approach helps mitigate risks associated with health, security breaches, and
the endangerment of vulnerable groups through continuous improvement and alignment of operations.
Human Rights Policy:
For a general introduction to the policy, we refer to section [3.1.2.1] above.
Our Human Rights policy and guidelines emphasize the importance of respecting human rights in all our operations.
This includes ensuring a safe and healthy environment, promoting equal opportunities and preventing any form of
discrimination or harassment, all of which are incremental to the health and safety of the users of care services.
The Group's human rights policy includes:
●
Ensuring that all business operations and services are conducted in a manner that respects the rights and
dignity of consumers and end-users. This includes privacy, security, and the right to be free from discrimination.
●
Regularly engaging with consumers and end-users to understand their needs, expectations and any concerns
regarding human rights impacts. This engagement is facilitated through multiple channels, ensuring
accessibility and responsiveness.
●
Establishing effective mechanisms for addressing and remedying any adverse human rights impacts that
consumers and end-users might experience. This includes grievance mechanisms and clear procedures for
redress.
To monitor compliance with these commitments, NHC Group employs a variety of mechanisms including audits,
compliance reviews, and stakeholder feedback. The Group also conducts training for employees to ensure they
understand and can implement these human rights principles effectively.
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79
Monitoring and compliance mechanisms:
●
The Ethics Committee at NHC is responsible for overseeing the implementation of our ethical guidelines,
ensuring that our business practices align with our human rights commitments.
●
NHC encourages transparency and accountability through established reporting mechanisms. Employees and
other stakeholders are encouraged to report any concerns or breaches of our ethical guidelines to the Ethics
Committee.
●
We provide regular training to our employees to ensure they understand and can effectively implement our
human rights policies. This training includes awareness of our ethical guidelines and the importance of
maintaining a respectful and inclusive workplace.
In 2024, no cases of non-compliance with the UN Guiding Principles, OECD Guidelines or ILO Declaration involving
consumers and end-users have been identified in NHC Groups downstream value chain. Should such cases arise,
they will be documented, reported, and remediated in alignment with established frameworks. The responsibility
for overseeing potential cases of non-compliance rests with the Management team and is executed through NHC
Group compliance and sustainability functions. NHC Group remains committed to ongoing evaluation and
enhancement of its policies, particularly in areas such as consumer safety and data protection and ensure
continued compliance with international human rights standards.
Scope of the policies
The scope of NHC Group's policies encompasses all operational activities, both upstream and downstream in the
value chain. This includes service design, marketing, delivery, and post-delivery support across all geographies
where NHC Group operates. The policies are inclusive of all affected stakeholder groups, particularly focusing on
consumers, end-users, and their families. Exclusions, if any, are explicitly stated in specific policy documents,
primarily concerning areas where local regulations or market conditions necessitate differentiated approaches.
Currently there are no examples where exclusions apply.
Accountability
The Management team in NHC holds the primary responsibility for the implementation of these policies. The Board
is dedicated to ensuring that management at all levels is in alignment with the objectives of the policy. They also
ensure that adequate resources are provided to support effective implementation and ongoing monitoring.
Third-party standards and initiatives
NHC Group commits to respecting several third-party standards and initiatives through the implementation of
these policies. These include among others ISO standards for quality and safety.
Where applicable ISO 9001 provides a quality management framework that enhances customer satisfaction and
safety, emphasizing risk-based thinking, customer focus and continuous improvement. These elements are critical
for ensuring the personal safety of consumers and end-users. Risk-based thinking helps identify and mitigate risks
associated with health, safety, and security, preventing potential harm to consumers and vulnerable groups. The
standard ensures that products and services are designed with consumer safety in mind, addressing potential
failures in service offerings and solution design through stringent design and development controls. Regular
evaluations foster improvements in safety measures, crucial for maintaining compliance and preventing security
breaches and health risks. By integrating ISO 9001 principles with the requirements regarding health and safety, the
organization can effectively manage quality and safety, thereby protecting consumers and enhancing overall
satisfaction.
Addressing health and safety in relation to the UN Sustainable Development Goals (SDGs), particularly SDG 3 (Good
Health and Well-being) and SDG 11 (Sustainable Cities and Communities), emphasizes the critical importance of
ensuring the personal safety, health and security of consumers and end-users. Failure to protect these aspects
through adequate service offerings, solution design and effective lifecycle management can lead to significant
health risks, security breaches and endangerment, particularly of vulnerable groups. This neglect not only
undermines individual well-being but also hampers progress towards achieving these global goals aimed at
promoting well-being for all.
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NORLANDIA HEALTH & CARE GROUP AS
Consideration of stakeholder interests
In setting its policies, NHC Group has engaged with key stakeholders to ensure that their interests are considered
and addressed. This engagement includes consultations with consumers, end-users, employees, community
representatives and regulatory bodies as well as dialogues with main suppliers. The aim is to create policies that
not only comply with legal standards but also resonate with the needs and expectations of these stakeholders.
Feedback mechanisms such as surveys, focus groups, and public forums are utilized to gather diverse inputs, which
are then analyzed and incorporated into policy frameworks. This inclusive approach ensures that the policies are
culturally sensitive and aligned with stakeholder expectations, thereby enhancing their effectiveness and
acceptance.
NHC Group are making the policies available for some of the main suppliers by integrating them into the
agreements and part of what should be delivered upon. This is relevant for example with the Code of conduct. By
doing this the supplier will get full copies of the relevant policies to comply. Also, in many tenders applicable
policies are mandatory to send in to the municipality when delivering on the final tender or when the tender is
formally awarded.
Specific groups covered
NHC Group's policies are designed to inclusively address the needs of all consumers and end-users, ensuring
equitable and respectful treatment without discrimination. Implicit in NHC Group's operations is the coverage of
several vulnerable groups, including the elderly, children, refugees, and individuals with disabilities. While not
explicitly stated, these policies are crafted to cater to the diverse customer base of the NHC Group, aiming to meet
the specific requirements of these varied groups and guaranteeing that every individual receives fair and dignified
interactions with the company.
3.2.2.2 Processes for engaging with consumers and end-users about impacts [S4-2]
NHC Group actively engages with consumers and end-users to inform its decisions and manage the actual and
potential impacts on them. This engagement occurs through various methods and at different stages of the
decision-making process.
NHC Group engages directly with affected consumers and end-users, as well as their legitimate representatives,
including national consumer protection bodies that have insight into their situation. The engagement methods
include participation, consultation and information sharing, ensuring that the perspectives of consumers and end-
users are considered in the decision-making process. For example, in Preschools there are yearly surveys of
satisfaction as well as different types of meetings with parents to the children. Another example from Care where
the nursing homes invites for open houses where legitimate representatives/next of kin are invited for a dialogue
around the care at the home.
Engagement occurs at multiple stages, including determining the approach to mitigation and evaluating the
effectiveness of mitigation. The frequency of engagement varies, with some interactions happening regularly, at
certain points in a project, or in response to legal or stakeholder requirements. Additionally, NHC Group uses
engagement surveys to measure satisfaction and assess the effectiveness of its engagement with consumers and
end-users.
The function and the most senior roles within NHC Group responsible for ensuring this engagement happens is the
executive management team. These functions ensures that the results of the engagement inform NHC Group's
approach and decision-making processes.
NHC Group assesses the effectiveness of its engagement with consumers and end-users through various methods.
This includes evaluating the outcomes of the engagement and any agreements or results that stem from such
interactions. The company also takes steps to gain insight into the perspectives of particularly vulnerable or
marginalized consumers end-users, such as elderly, migrants and persons with functional variations/disabilities. An
example of this is in Care where in-depth interviews are conducted to seek answers to the question of which
ANNUAL REPORT 2024
81
dimensions are most important to the elderly person as well as to the relative. This is part of the ongoing service
development process. Another example is from the Norwegian and Swedish preschool operations where a process
is implemented based on CLASS (Classroom Scoring Assessment System), a research-based model that creates a
safe and stimulating environment where the child can grow and develop. The model aims to strengthen the
interaction between educators and children, so that every child is seen, encouraged and involved.
Segment
Stakeholder engagement
Additional Engagement Methods
Preschools
Usage of class for involvement of
children
Parent committees
Satisfaction surveys
Observation-based assessments, digital
feedback tools for parents
Surveys & structured feedback meetings
Preschool
International
Usage of class for involvement of
children
Parent committees
Satisfaction surveys
Observation-based assessments, digital
feedback tools for parents
Surveys & structured feedback meetings
Care
In depth interviews
Satisfaction surveys
Complaint & incident reporting systems
Individual & Family
Customer meetings
Customer days
Surveys & feedback loops
Integration
Services
Customer forum
Case-based evaluations & one-on-one
consultations
3.2.2.3 Process to remediate negative impacts and channels for consumers and end-users to raise concerns [S4-3]
General approach to remedy negative impact
NHC Group has a structured approach to addressing and remedying material negative impacts on consumers and
end-users. This involves a due diligence process that includes identification of potential negative impacts,
assessment and prioritization of issues, implementation of remediation measures, feedback mechanisms (user
friendly websites, e-mail addresses, forms) where end-users can raise concerns and/or complaints and monitoring
and reporting in quality and sustainability reporting. This process is designed to ensure that any adverse impacts
are identified, assessed, and addressed effectively. The effectiveness of the remedies provided is assessed through
continuous monitoring and stakeholder engagement and non-conformity reports managed in our quality systems
and can results in for example reporting about incidents according to local legislation such as Lex Sarah and Lex
Maria in Care in Sweden and reporting to municipalities in Preschools. Since NHC Group is present on several
markets the approach differs between the countries.
In Care services, this includes handling incidents under Lex Sarah and Lex Maria in Sweden. When an incident
occurs, employees are required to report it through internal systems, anonymous channels, or direct
communication. Serious cases are escalated for investigation, assessed based on severity, and prioritized
accordingly. In cases involving Lex Sarah or Lex Maria, formal investigations ensure that corrective measures are
taken to prevent recurrence. Remedial actions are then implemented, which may include staff training, process
improvements and routines, additional safety measures, or systemic changes in methodology.
Actions taken to provide or enable remedy
in relation to an actual material impact are:
●
Staff training
●
Process improvements and routines
●
Additional safety measures
●
Methodology updates
Further planned measures to provide and/or enable remedy for human rights impacts from NHC Group are:
●
Ensuring mechanisms are available in multiple languages and accessible to people with disabilities.
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NORLANDIA HEALTH & CARE GROUP AS
●
Implementing independent oversight to ensure complaints are addressed fairly and promptly.
●
Implement supplier accountability programs to address human rights violations linked to products or services.
●
Termination of contracts with suppliers who repeatedly fail to comply with human rights standards.
To ensure accountability, user-friendly feedback mechanisms—such as websites, emails, and reporting forms—
allow end-users, relatives, and staff to raise concerns. All non-conformities and corrective actions are tracked
through quality management systems and internal audits. For example, in Sweden serious cases are reported to
IVO (Health and Social Care Inspectorate) for healthcare and social services.
Channels for raising concerns
NHC Group has established several channels for consumers and end-users to raise their concerns or needs. These
include grievance mechanisms, hotlines and dialogue processes. These channels are designed to be easily
accessible and are established both by NHC Group itself and through participation in third-party mechanisms.
Some examples of these mechanisms in place are:
●
Complaints system by own forms and/or municipal forms available
●
E-mail functionality at homepages
In some parts of the organization, user advisory boards are also in place to facilitate direct communication and
feedback from consumers and end-users. These meetings are often physical meetings between users and
representatives from the company to navigate positive, negative and improvement proposals that can have a direct
impact on how services are provided. The effectiveness of these channels is ensured through regular monitoring
and feedback from stakeholders.
NHC Group supports the availability of channels through its business relationships by ensuring that all customers
are informed of how to raise concerns and/or file a complaint. All complaints are handled by the quality
management system. Complaints can also be filed through phone and/or email.
NHC Group tracks and monitors issues raised and addressed through information management system. This system
ensures that issues are documented, tracked, and resolved in a timely manner. The effectiveness of the channels is
monitored through regular reviews and stakeholder feedback to ensure continuous improvement.
NHC Group assesses whether consumers and end-users are aware of and trust these structures or processes
through regular surveys and feedback mechanisms. This helps ensure that the channels are effective and trusted by
the intended users.
Policies to protect against retaliation
NHC Group has a process in place to protect individuals from retaliation and are often regulated by law or operating
contracts in order to ensure that all reports are handled confidentially and that no negative consequences befall
those who raise concerns.
3.2.2.4 Taking action on material impacts on consumers and end-users, and approaches to managing material
risks and opportunities related to consumers and end-users, and effectiveness of those actions [S4-4]
NHC Group and its segments implement action plans and allocate resources to address material impacts related to
consumers and end-users where relevant. These plans are integrated into segment-specific strategies, ensuring
alignment with NHC Group’s overall sustainability objectives and operational frameworks. Health and safety are key
focus areas, with significant efforts directed at ensuring secure environments for consumers and end-users.
Policies are either available through agreements or accessible to customers via dedicated systems. For example, in
preschools, parents have access to a dedicated communication system, MyKid, where they can find relevant
information
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83
Key action
Description and year of
completion
Scope of
action
Expected outcome
Policy objective
contribution
Strengthening
health and
safety
protocols
Ongoing implementation of
risk assessments and
employee training aimed at
safeguarding residents,
particularly children and
elderly individuals
Segment
Preschools
and Care
Reduced incidents and
hazards, improved safety
for residents, increased
staff preparedness
Supports policy goals of
resident safety, regulatory
compliance, and improved
quality of care
Safety
measures
Ongoing implementation of
fire preventive protocols,
security systems, digital
enhancements and
competence development
All segments
Enhanced fire
prevention, stronger
security, improved crisis
response, increased
technological efficiency
in safety measures
Aligns with national safety
regulations, enhances
emergency preparedness,
and ensures a safer living
and working environment
The effectiveness of these actions and initiatives in delivering intended outcomes for consumers and/or end-users
are followed by registration of participation by employees in mandatory training such as fire prevention training
sessions. For example, tracking and assessment of health and safety protocols effectiveness is in Care done by
quality department.
NHC has not had any cases where it had to provide or enable remedy for actual negative impact on consumers or
end-users in 2024.
Addressing material negative impacts on the health and safety of consumers and end-users, examples of
approaches include:
●
Service design by enhancing patient and resident safety in elderly and disability care by providing increased
staff training in handling vulnerable individuals, such as dementia care techniques and de-escalation strategies
for behavioral challenges.
●
Service delivery by strengthening complaint mechanisms or increase frequency of audits and surprise
inspections to identify and correct safety issues proactively.
NHC Group identifies required actions through stakeholder engagement and risk assessments at the segment
level. These assessments inform decisions on mitigating potential negative impacts and enhancing positive
contributions to consumer well-being. Segments assess potential negative impacts and define appropriate
mitigation strategies in alignment with best practices and any regulatory requirements. Collaborative industry
initiatives are pursued where relevant. For instance, the Care segment regularly engages with healthcare
professionals and regulatory bodies to refine safety protocols. In some cases, additional safety measures are
implemented in response to findings, such as increasing the frequency of audits or surprise inspections.
NHC Group promotes responsible business practices to avoid contributing to material negative impacts on
consumers and end-users. The group enforces ethical guidelines from its Code of Conduct across all segments to
ensure alignment with consumer protection standards. Segments implement various measures such as quality
systems, supervision, and internal and external audits; registers incidents in its health and safety system, proposing
actions to reduce recurrence risks; annual risk assessments to review potential negative impacts; provide ongoing
training and orientation to employees on requirements and roles. Where business pressures create tensions with
consumer protection priorities, policies are reviewed to balance responsible consumer engagement and ethical
considerations with commercial interests.
Resources allocated to managing material impacts on consumers and end-users include personnel training, safety
measures, and facility improvements. Each segment allocates resources appropriate to its operational scope, with
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NHC Group providing strategic oversight and continuous improvement support through board representation and
reporting.
3.2.3 Consumers and end-users Metrics and targets
3.2.3.1 Targets related to managing material negative impacts, advancing positive impacts, and managing
material risks and opportunities [S4-5]
NHC is committed to ensuring the personal safety and health of consumers and end-users across all operational
activities. Over the years, certain targets and metrics have been developed in practice to address this commitment.
The overview below describes this practice which is not yet formalized but which we operate by.
NHC Group policies aim to prevent inadequate service offerings and poor solution design that could lead to serious
harm, health risks, or endangerment of vulnerable groups.
Description of Target
Metrics
No serious incidents caused by NHC Group
Number of serious incidents
0
No fatalities caused by NHC Group
Number of deaths
0
End-user and customer satisfaction shall
improve year by year
Customer satisfaction score
Data not available on
Group level for 2024
Since NHC Group operates in multiple markets, the regulations differ between countries. Additionally, no data are
currently available for some of the metrics. The scope of these targets is limited to the company's own operations
in relation to the value chain.
●
Serious incidents: Covers accidents, injuries, or critical safety events
●
Fatalities: Ensures a focus on maintaining zero deaths in operations.
●
End-user & consumer satisfaction: Measures overall satisfaction from all customer groups such as patients,
residents, preschool children (parents) and stakeholders, ensuring high service quality.
Baseline data for serious incidents and fatalities are collected from 2024, data for end-user and customer
satisfaction will be collected from 2025. The target period extend to 2028, with annually assessment to measure
progress.
As a general there is no external validation of metrics other than in segments using ISO9001 standard (Care,
Integration Services)
There is no general practice where consumers and end-users are involved in setting targets, tracking performance
and identify lessons learned or improvements.
Methodology
The methodology for tracking serious incidents involves an incident reporting system where accidents, injuries, or
critical safety events are documented. The target for this metric is to keep the number of serious incidents as low as
possible. This system assumes complete and accurate reporting from all operational areas, which is important for
effective monitoring and response. However, the definition of what constitutes a "serious incident" can vary
between different segments and jurisdictions, leading to potential inconsistencies in data collection and
interpretation across different markets.
For the fatality’s metric, the NHC Group has set a target of zero deaths within its operations. This is monitored
through immediate reporting of any fatalities. Each segment have tailer-made routines and procedures for handling
and reporting of fatalities. In some of the segments, such as elderly care in particular, people naturally pass away
whilst in our care. In cases of fatalities, the relevant segment considers whether the fatality may be caused or
contributed by omissions or errors of NHC in which cases it is reported internally in the monthly Business Review.
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85
Such cases are also reported to relevant public authorities which may include municipalities, police and supervisory
authorities.
To gauge customer satisfaction, NHC Group utilizes surveys and feedback mechanisms that involve various
customer groups such as patients, residents and parents of preschool children. The goal is to ensure continuous
improvements in service quality. This methodology assumes that the feedback collected represents a wide and
comprehensive range of experiences from all relevant stakeholders. Nonetheless, customer satisfaction is
inherently subjective and influenced by numerous external factors, making it difficult to standardize measurement
and improvement strategies across diverse service settings.
No changes have been made to the targets or metrics since their initial definition in 2024. Any future changes will
be documented, including the rationale for such changes and their effect on comparability.
Performance against targets:
●
Regular monitoring through feedback mechanisms.
●
Annual reviews to assess whether progress is in line with planned objectives. Trends and significant changes in
performance are analyzed to ensure continuous improvement.
NHC Group tracks the effectiveness of its policies and actions through:
●
To measure satisfaction and assess the effectiveness of engagement with consumers and end-users.
●
To monitor reductions in serious incidents and improvements in safety protocols.
●
Assessment of effectiveness is based on response rate in for example surveys and customer feedback loops.
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4.
Governance Information
4.1 BUSINESS CONDUCT [ESRS G1]
Administrative, management and supervisory bodies related to business conduct
NHC has established an Ethics Committee that includes Director Quality, Sustainability & Organization and the Chief
of Staff. The Ethics Committee is responsible for update, communication and monitoring of operational
effectiveness of the Code of Conduct and led by the Group Director:
●
Dag Rune Gabrielsen, Group Director Quality, Sustainability & Organization with several years of experience in
international businesses as an HR professional
●
Linn- Therese Greaker Bjørndal; Chief of Staff, with several years of experience as legal advisor in Norway.
4.1.1 Business Conduct IRO Management
Business conduct, corporate culture
NHC is committed to fostering an ethical and value-driven corporate culture that guides both internal operations
and stakeholder relationships. By upholding strong ethical standards, the organization creates a foundation of trust,
integrity, and accountability, ensuring that employees, partners, and stakeholders align with its core values. A
positive corporate culture not only enhances the quality of services provided but also strengthens employee
engagement, collaboration, and overall job satisfaction.
Identified IRO
(Impact, Risk, Opportunity)
Category
Value chain
Corporate culture
Positive impact
Own operations
Table: Identified IRO, business conduct
4.1.1.1 Business conduct policies and corporate culture [G1-1]
NHC Group is committed to fostering a corporate culture that emphasizes ethical behavior and responsible business
conduct. Our policies, in particular the Code of Conduct and Whistleblowing Policy, are designed to identify, assess,
manage, and remediate material impacts, risks, and opportunities related to business conduct. This includes
promoting a corporate culture of integrity and compliance throughout our operations.
The corporate culture is established by embedding our core values into policies, leadership principles and
operational frameworks, ensuring a foundation of integrity, inclusivity and employee well-being. NHC Group has
integrated this work into the culture program called iLead. The culture is developed through leadership training,
continuous professional development programs, and active employee engagement initiatives (e.g. culture
workshops), all aimed at reinforcing our commitment to high ethical and service standards.
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Application of the Principles in Daily Work
Our principles are an integral part of the work in our companies. The significance of these principles may vary
depending on the type of position an employee holds and the company they work for. Below is a description of
how Aberia formulates the five principles with regard to the workday of its employees. Furthermore, these
principles are used in reflection work, so that each employee can understand what they mean for their work.
Respect for All
about the recipients of our services and their relatives, our colleagues (subordinates and superiors), and partners.
We are curious about others and recognize diversity.
Never Give Up
colleagues and partners. This is reflected in a fundamental attitude that we do not give up. We look for
opportunities and are persistent.
Informal, Yet Professional
contact with the recipients of our services, their relatives, our colleagues, and clients/partners. This is reflected in
our accessibility. We adapt to the situation we are in and are conscious of how we communicate, our demeanor,
attitudes, and dress code. We have the ability to create contact, show trust and credibility. We are clear adults and
mentors, with an empathetic approach.
See Solutions - Not Problems
courage. This is reflected in our positivity, action orientation, and focus on resources when meeting the recipients
of our services, their relatives, our colleagues, and partners. It is also expressed in planning documents and other
documentation such as reports and evaluations.
Trust Others - Be Trustworthy
expressed by following the four principles above. We do what we say we will and follow decisions – towards the
recipients of our services, colleagues, and partners. This forms a good basis for psychological safety and room for
action.
The corporate culture is evaluated through regular employee surveys, structured feedback mechanisms, and
performance assessments to ensure alignment with our organizational values and objectives. Insights from these
evaluations inform continuous improvements.
Our Code of Conduct establishes expectations for ethical behavior and compliance with legal standards by all
employees and representatives of NHC Group. It addresses risks related to unethical behavior, legal non-compliance
and reputational damage, with regular audits and reviews conducted by the Ethics Committee to ensure
adherence. This includes strict adherence to laws and regulations, fair competition, anti-corruption practices, and
respectful interactions with clients, suppliers, and partners. By establishing these guidelines, NHC promotes a
culture of integrity and accountability. This culture ensures that all business operations are conducted without
compromise to ethical standards, thereby reinforcing trust and reliability in our services.
Also, the whistleblowing Policy and procedures for reporting misconduct or unethical behavior are critical
components of the ethical framework. These policies empower employees to voice concerns without fear of
retaliation, fostering an atmosphere of openness and transparency. By encouraging honest and open
communication, NHC strengthens its corporate culture.
Our Whistleblower Policy provides mechanisms for reporting and investigating unethical or illegal behavior,
protecting whistleblowers from retaliation. This policy ensures early detection and remediation of unethical
practices, fostering a transparent work environment. The Ethics Committee manages this process with confidential
reporting channels.
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Employees and external stakeholders can report concerns via dedicated email addresses (
) or
directly to members of the Ethics Committee. Reports of unethical behavior are investigated promptly,
independently and objectively by the Ethics Committee.
The purpose of such an investigation is to clarify the facts, evaluate and appropriately document the matter.
Following such an investigation, the matter will be brought to the attention of executive management or as
appropriate the board of directors of NHC Group. Depending on the nature of the report, corrective measures
and/or reporting to the appropriate authorities will be made. However, the Ethics Committee has the discretionary
authority to, at any stage, choose not to pursue a report further, e.g. where there is insufficient information to
conduct an investigation, or it is concluded that the report was made in bad faith.
Training is provided to employees on how to report concerns and to designated staff on handling these reports.
Reporting in accordance with the standard set out in the Code-of-Conduct and Whistleblower Policy, in good faith
and on reasonable grounds, will not in any way negatively affect a reporting person and NHC Group will do its
utmost to take the necessary steps to ensure that no retaliation will take place and that there will be no negative
impact on the professional career of a reporting person. Anyone who experiences retaliation must report this to the
Ethics Committee.
The anti-corruption and bribery policy is integrated into the Code-of-conduct policy and maintains a zero-tolerance
stance towards corruption and bribery. The policy statement is not consistent with the United Nations Convention
against Corruption but is planned to be following a time plan at the latest in 2026. The Group considers that
functions with purchasing authority are at most risk in relation to corruption.
These policies apply to all business activities of NHC Group, including subsidiaries and third-party representatives,
across all geographies where the Group operates. There are no exclusions; all employees and stakeholders are
expected to adhere to these standards.
The CEO of NHC Group, supported by the Ethics Committee and respective country managers and/or Segmental
CEOs, are accountable for the implementation of these policies. Stakeholder interests, including those of
employees, customers, and partners, are considered in setting these policies, ensuring alignment with broader
corporate responsibility goals.
These policies are made available to all employees through internal communication channels and training sessions.
4.1.2 Business Conduct Metrics and targets
NHC Group is dedicated to fostering an ethical corporate culture and ensuring responsible business conduct across
all its operations.
Our business conduct policies, including the Code of Conduct also containing the Anti-Corruption and Bribery Policy
and Whistleblower Policy, establish clear expectations for ethical behavior and compliance with legal standards.
NHC Group has not set any measurable outcome-oriented targets currently. However, we are committed to
establishing these targets in the future and will disclose the timeframe for setting them or the reasons for not doing
so.
●
Currently, we do not have formal measurement processes in place. We plan to develop and implement
methods to track the effectiveness of our policies and actions related to material sustainability impacts, risks,
and opportunities.
We involve stakeholders, including employees, customers, and partners, in our policy development through
consultations and feedback mechanisms.
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89
NHC Group remains dedicated to maintaining high standards of ethical behavior and responsible business conduct.
By setting future targets, developing measurement methods, and involving stakeholders, we aim to foster a
transparent and accountable corporate culture.
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NORLANDIA HEALTH & CARE GROUP AS
5.
Appendices
Disclosure Requirement and related
datapoint
SFDR reference
Pillar 3 reference
Benchmark
Regulation
reference
EU Climate
Law
reference
Materiality
(material/ non-
material /
phase in used)
Page
&/or
para.
ESRS 2 GOV-1
Board's gender diversity paragraph 21
(d)
Indicator number 13
of Table #1 of Annex
1
Commission
Delegated
Regulation
(EU) 2020/1816
(
5
)
, Annex II
Material
29
ESRS 2 GOV-1
Percentage of board members who are
independent paragraph 21 (e)
Delegated
Regulation
(EU) 2020/1816
, Annex II
Material
29
ESRS 2 GOV-4
Statement on due diligence paragraph
30
Indicator number 10
Table #3 of Annex 1
Material
35
ESRS 2 SBM-1
Involvement in activities related to
fossil fuel activities paragraph 40 (d) i
Indicators number 4
Table #1 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
(
6
)
Tabl
e 1: Qualitative
information on
Environmental risk
and Table 2:
Qualitative
information on Social
risk
Delegated
Regulation
(EU) 2020/1816
, Annex II
Material
42
ESRS 2 SBM-1
Involvement in activities related to
chemical production paragraph 40 (d) ii
Indicator number 9
Table #2 of Annex 1
Delegated
Regulation
(EU) 2020/1816
, Annex II
Non-material
ESRS 2 SBM-1
Involvement in activities related to
controversial weapons paragraph 40
(d) iii
Indicator number 14
Table #1 of Annex 1
Delegated
Regulation
(EU) 2020/1818
(
7
)
,
Article 12(1)
Delegated
Regulation
(EU) 2020/1816
, Annex II
Non-material
ESRS 2 SBM-1
Involvement in activities related to
cultivation and production of tobacco
paragraph 40 (d) iv
Delegated
Regulation
(EU) 2020/1818
, Article 12(1)
Delegated
Regulation
(EU) 2020/1816
, Annex II
Non-material
ESRS E1-1
Transition plan to reach climate
neutrality by 2050 paragraph 14
Regulation
(EU) 2021/
1119,
Article 2(1)
Nonmaterial
ESRS E1-1
Undertakings excluded from Paris-
aligned Benchmarks paragraph 16 (g)
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
Template 1: Banking
book-Climate Change
transition risk: Credit
quality of exposures
by sector, emissions
and residual maturity
Delegated
Regulation
(EU) 2020/1818
, Article12.1 (d)
to (g), and
Article 12.2
Non-material
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91
ESRS E1-4
GHG emission reduction targets
paragraph 34
Indicator number 4
Table #2 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
Template 3: Banking
book – Climate change
transition risk:
alignment metrics
Delegated
Regulation
(EU) 2020/1818
, Article 6
Non-material
ESRS E1-5
Energy consumption from fossil
sources disaggregated by sources (only
high climate impact sectors) paragraph
38
Indicator number 5
Table #1 and
Indicator n. 5 Table
#2 of Annex 1
Non-material
ESRS E1-5 Energy consumption and mix
paragraph 37
Indicator number 5
Table #1 of Annex 1
Non-material
ESRS E1-5
Energy intensity associated with
activities in high climate impact sectors
paragraphs 40 to 43
Indicator number 6
Table #1 of Annex 1
Non-material
ESRS E1-6
Gross Scope 1, 2, 3 and Total GHG
emissions paragraph 44
Indicators number 1
and 2 Table #1 of
Annex 1
Article 449a;
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
Template 1: Banking
book – Climate change
transition risk: Credit
quality of exposures
by sector, emissions
and residual maturity
Delegated
Regulation
(EU) 2020/1818
, Article 5(1), 6
and 8(1)
Non-material
ESRS E1-6
Gross GHG emissions intensity
paragraphs 53 to 55
Indicators number 3
Table #1 of Annex 1
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
Template 3: Banking
book – Climate change
transition risk:
alignment metrics
Delegated
Regulation
(EU) 2020/1818
, Article 8(1)
Non-material
ESRS E1-7
GHG removals and carbon credits
paragraph 56
Regulation
(EU) 2021/
1119,
Article 2(1)
Non-material
ESRS E1-9
Exposure of the benchmark portfolio
to climate-related physical risks
paragraph 66
Delegated
Regulation
(EU) 2020/1818
, Annex II
Delegated
Regulation
(EU) 2020/1816
, Annex II
Non-material
ESRS E1-9
Disaggregation of monetary amounts
by acute and chronic physical risk
paragraph 66 (a)
ESRS E1-9
Location of significant assets at
material physical risk paragraph 66 (c).
Article 449a
Regulation (EU)
No 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
paragraphs 46 and 47;
Template 5: Banking
book - Climate change
physical risk:
Exposures subject to
physical risk.
Non-material
ESRS E1-9 Breakdown of the carrying
value of its real estate assets by
Article 449a
Regulation (EU)
Non-material
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NORLANDIA HEALTH & CARE GROUP AS
energy-efficiency classes paragraph 67
(c).
No 575/2013;
Commission
Implementing
Regulation
(EU) 2022/2453
paragraph
34;Template
2:Banking book -
Climate change
transition risk: Loans
collateralised by
immovable property -
Energy efficiency of
the collateral
ESRS E1-9
Degree of exposure of the portfolio to
climate- related opportunities
paragraph 69
Delegated
Regulation
(EU) 2020/1818
, Annex II
Non-material
ESRS E2-4
Amount of each pollutant listed in
Annex II of the E-PRTR Regulation
(European Pollutant Release and
Transfer Register) emitted to air, water
and soil, paragraph 28
Indicator number 8
Table #1 of Annex 1
Indicator number 2
Table #2 of Annex 1
Indicator number 1
Table #2 of Annex 1
Indicator number 3
Table #2 of Annex 1
Non-material
ESRS E3-1
Water and marine resources paragraph
9
Indicator number 7
Table #2 of Annex 1
Non-material
ESRS E3-1
Dedicated policy paragraph 13
Indicator number 8
Table 2 of Annex 1
Non-material
ESRS E3-1
Sustainable oceans and seas paragraph
14
Indicator number 12
Table #2 of Annex 1
Non-material
ESRS E3-4
Total water recycled and reused
paragraph 28 (c)
Indicator number
6.2 Table #2 of
Annex 1
Non-material
ESRS E3-4
Total water consumption in m
3
revenue on own operations paragraph
29
Indicator number
6.1 Table #2 of
Annex 1
Non-material
ESRS 2- SBM 3 - E4 paragraph 16 (a) i
Indicator number 7
Table #1 of Annex 1
Material
52
ESRS 2- SBM 3 - E4 paragraph 16 (b)
Indicator number 10
Table #2 of Annex 1
Material
52
ESRS 2- SBM 3 - E4 paragraph 16 (c)
Indicator number 14
Table #2 of Annex 1
Material
52
ESRS E4-2
Sustainable land / agriculture practices
or policies paragraph 24 (b)
Indicator number 11
Table #2 of Annex 1
Non-material
ESRS E4-2
Sustainable oceans / seas practices or
policies paragraph 24 (c)
Indicator number 12
Table #2 of Annex 1
Non-material
ESRS E4-2
Policies to address deforestation
paragraph 24 (d)
Indicator number 15
Table #2 of Annex 1
Non-material
ESRS E5-5
Non-recycled waste paragraph 37 (d)
Indicator number 13
Table #2 of Annex 1
Non-material
ESRS E5-5
Hazardous waste and radioactive
waste paragraph 39
Indicator number 9
Table #1 of Annex 1
Non-material
ESRS 2- SBM3 - S1
Risk of incidents of forced labour
paragraph 14 (f)
Indicator number 13
Table #3 of Annex I
Material
65
ESRS 2- SBM3 - S1
Risk of incidents of child labour
paragraph 14 (g)
Indicator number 12
Table #3 of Annex I
Material
65
ESRS S1-1
Human rights policy commitments
paragraph 20
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex I
Material
66
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93
ESRS S1-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 21
Delegated
Regulation
(EU) 2020/1816
, Annex II
Material
66
ESRS S1-1
processes and measures for preventing
trafficking in human beings paragraph
22
Indicator number 11
Table #3 of Annex I
Material
67
ESRS S1-1
workplace accident prevention policy
or management system paragraph 23
Indicator number 1
Table #3 of Annex I
Material
67
ESRS S1-3
grievance/complaints handling
mechanisms paragraph 32 (c)
Indicator number 5
Table #3 of Annex I
Material
69
ESRS S1-14
Number of fatalities and number and
rate of work-related accidents
paragraph 88 (b) and (c)
Indicator number 2
Table #3 of Annex I
Delegated
Regulation
(EU) 2020/1816
, Annex II
Material
74
ESRS S1-14
Number of days lost to injuries,
accidents, fatalities or illness
paragraph 88 (e)
Indicator number 3
Table #3 of Annex I
Non-material
ESRS S1-16
Unadjusted gender pay gap paragraph
97 (a)
Indicator number 12
Table #1 of Annex I
Delegated
Regulation
(EU) 2020/1816
, Annex II
Non-material
ESRS S1-16
Excessive CEO pay ratio paragraph 97
(b)
Indicator number 8
Table #3 of Annex I
Non-material
ESRS S1-17
Incidents of discrimination paragraph
103 (a)
Indicator number 7
Table #3 of Annex I
Material
75
ESRS S1-17 Non-respect of UNGPs on
Business and Human Rights and OECD
Guidelines paragraph 104 (a)
Indicator number 10
Table #1 and
Indicator n. 14 Table
#3 of Annex I
Delegated
Regulation
(EU) 2020/1816
, Annex II
Delegated
Regulation
(EU) 2020/1818
Art 12 (1)
Material
75
ESRS 2- SBM3 – S2
Significant risk of child labour or forced
labour in the value chain paragraph 11
(b)
Indicators number
12 and n. 13 Table
#3 of Annex I
Material
65
ESRS S2-1
Human rights policy commitments
paragraph 17
Indicator number 9
Table #3 and
Indicator n. 11 Table
#1 of Annex 1
Non-material
ESRS S2-1 Policies related to value
chain workers paragraph 18
Indicator number 11
and n. 4 Table #3 of
Annex 1
Non-material
ESRS S2-1Non-respect of UNGPs on
Business and Human Rights principles
and OECD guidelines paragraph 19
Indicator number 10
Table #1 of Annex 1
Delegated
Regulation
(EU) 2020/1816
, Annex II
Delegated
Regulation
(EU) 2020/1818
, Art 12 (1)
Non-material
ESRS S2-1
Due diligence policies on issues
addressed by the fundamental
International Labor Organisation
Conventions 1 to 8, paragraph 19
Delegated
Regulation
(EU) 2020/1816
, Annex II
Non-material
ESRS S2-4
Human rights issues and incidents
connected to its upstream and
downstream value chain paragraph 36
Indicator number 14
Table #3 of Annex 1
Non-material
ESRS S3-1
Human rights policy commitments
paragraph 16
Indicator number 9
Table #3 of Annex 1
and Indicator
Non-material
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NORLANDIA HEALTH & CARE GROUP AS
number 11 Table #1
of Annex 1
ESRS S3-1 non-respect of UNGPs on
Business and Human Rights, ILO
principles or OECD guidelines
paragraph 17
Indicator number 10
Table #1 Annex 1
Delegated
Regulation
(EU) 2020/1816
, Annex II
Delegated
Regulation
(EU) 2020/1818
, Art 12 (1)
Non-material
ESRS S3-4
Human rights issues and incidents
paragraph 36
Indicator number 14
Table #3 of Annex 1
Non-material
ESRS S4-1 Policies related to
consumers and end-users paragraph 16
Indicator number 9
Table #3 and
Indicator number 11
Table #1 of Annex 1
Material
78
ESRS S4-1
Non-respect of UNGPs on Business and
Human Rights and OECD guidelines
paragraph 17
Indicator number 10
Table #1 of Annex 1
Delegated
Regulation
(EU) 2020/1816
, Annex II
Delegated
Regulation
(EU) 2020/1818
, Art 12 (1)
Material
80
ESRS S4-4
Human rights issues and incidents
paragraph 35
Indicator number 14
Table #3 of Annex 1
Material
85
ESRS G1-1
United Nations Convention against
Corruption paragraph 10 (b)
Indicator number 15
Table #3 of Annex 1
Material
89
ESRS G1-1
Protection of whistle- blowers
paragraph 10 (d)
Indicator number 6
Table #3 of Annex 1
Non-material
ESRS G1-4
Fines for violation of anti-corruption
and anti-bribery laws paragraph 24 (a)
Indicator number 17
Table #3 of Annex 1
Delegated
Regulation
(EU) 2020/1816
, Annex II)
Non-material
ESRS G1-4
Standards of anti- corruption and anti-
bribery paragraph 24 (b)
Indicator number 16
Table #3 of Annex 1
Non-material
(
1
) Regulation (EU) 2019/2088 of the European Parliament and of the Council of 27 November 2019 on sustainability-related disclosures in the financial
services sector (Sustainable Finance Disclosures Regulation) (OJ L 317, 9.12.2019, p. 1).
(
2
) Regulation (EU) No 575/2013 of the European Parliament and of the Council of 26 June 2013 on prudential requirements for credit institutions and
investment firms and amending Regulation (EU) No 648/2012 (Capital Requirements Regulation ‘CRR’) (OJ L 176, 27.6.2013, p. 1).
(
3
) Regulation (EU) 2016/1011 of the European Parliament and of the Council of 8 June 2016 on indices used as benchmarks in financial instruments and
financial contracts or to measure the performance of investment funds and amending Directives 2008/48/EC and 2014/17/EU and Regulation (EU)
No 596/2014 (OJ L 171, 29.6.2016, p. 1).
(
4
) Regulation (EU) 2021/1119 of the European Parliament and of the Council of 30 June 2021 establishing the framework for achieving climate neutrality and
amending Regulations (EC) No 401/2009 and (EU) 2018/1999 (‘European Climate Law’) (OJ L 243, 9.7.2021, p. 1).
(
5
) Commission Delegated Regulation (EU) 2020/1816 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the
Council as regards the explanation in the benchmark statement of how environmental, social and governance factors are reflected in each benchmark provided
and published (OJ L 406, 3.12.2020, p. 1).
(
6
) Commission Implementing Regulation (EU) 2022/2453 of 30 November 2022 amending the implementing technical standards laid down in Implementing
Regulation (EU) 2021/637 as regards the disclosure of environmental, social and governance risks (OJ L 324,19.12.2022, p.1.).
(
7
) Commission Delegated Regulation (EU) 2020/1818 of 17 July 2020 supplementing Regulation (EU) 2016/1011 of the European Parliament and of the Council
as regards minimum standards for EU Climate Transition Benchmarks and EU Paris-aligned Benchmarks (OJ L 406, 3.12.2020, p. 17).
ANNUAL REPORT 2024
95
96
NORLANDIA HEALTH & CARE GROUP AS
Consolidated Statement of Comprehensive Income
Norlandia Health & Care Group - for the year ended 31 December 2024
(NOK 1 000)
Note
2024
2023
Operating revenues
4
Other income
4
Total operating revenues and other income
Cost of goods and services sold
(459 671 )
(351 190 )
Personnel expenses
5, 21
(8 435 576 )
(7 639 998 )
Depreciation, amortisation and impairment losses
8, 9, 12
(1 061 211 )
(932 055 )
Other operating expenses
24
(1 309 025 )
(1 414 750 )
Operating profit/(loss)
Finance income
6
Finance expense
6, 12
(587 112 )
(486 349 )
Net foreign exchange gains/(losses)
6
(6 974 )
Net financial items
(568 555 )
(482 022 )
Share of net income from associated companies
11, 12
(1 645 )
Profit/(loss) before taxes
(55 169 )
(47 043 )
Income taxes
7
Net income
(36 199 )
(34 543 )
Other comprehensive income
Net income
(36 199 )
(34 543 )
Items that may be subsequently reclassified to profit or loss
Currency translation differences
Items that will not be subsequently reclassified to profit or loss
Remeasurements of defined benefit pension plans
19
(5 718 )
Income taxes related to defined benefit pension plans
16
(3 016 )
Total other comprehensive income, net of taxes
Total comprehensive income
(29 388 )
Net income attributable to:
Equity holders of the parent company
(27 900 )
(39 047 )
Non-controlling interests
(8 299 )
Total comprehensive income attributable to:
Equity holders of the parent company
(17 494 )
Non-controlling interests
(11 893 )
(1 792 )
ANNUAL REPORT 2024
97
Consolidated Statement of Financial Position
Norlandia Health & Care Group - for the year ended 31 December 2024
ASSETS
(NOK 1 000)
Note
2024
2023
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, 19, 21
Total non-current assets
Current assets
Inventories
Trade receivables
13
Other current receivables
13, 21
Cash and cash equivalents
22
Total current assets
Total assets
98
NORLANDIA HEALTH & CARE GROUP AS
Consolidated Statement of Financial Position
Norlandia Health & Care Group - for the year ended 31 December 2024
EQUITY AND LIABILITIES
(NOK 1 000)
Note
2024
2023
Equity
Share capital
14
Other equity
Total equity attributable to owners of the parent
Non-controlling interest
(10 962 )
(1 160 )
Total equity
Liabilities
Pension liabilities
19
Borrowings
15, 23
Lease liabilities
12
Deferred tax liabilities
16
Other non-current liabilities
20, 21
Total non-current liabilities
Trade payables
17
Current borrowings
15, 23
Current lease liabilities
12
Taxes payable
16
Other current liabilities
17, 21
Total current liabilities
Total liabilities
Total equity and liabilities
Oslo, 25 April 2025
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
Linda Hofstad Helleland
Member of the Board
Yngvar Tov Herbjørnssønn
CEO
ANNUAL REPORT 2024
99
Consolidated Statement of Changes in Equity
Norlandia Health & Care Group - for the year ended 31 December 2024
Attributable to equity holders of the parent
(NOK 1 000)
Share
capital
Share
premium
Other paid
in equity
Retained
earnings
Translation
differences
Total equity
to holders of
the parent
Non-
controlling
interests
Total equity
Equity as of 1 January 2023
Net income
(39 047 )
(39 047 )
(34 543 )
Other comprehensive income
(6 296 )
Total comprehensive income
(31 421 )
(1 792 )
Contributions by and distributions
to owners
Capital increase
Group contribution from owner
Effect of business combination
under common control
(74 214 )
(74 214 )
(74 214 )
Distribution to non-controlling
interests
(144 )
(144 )
Transactions with non-controlling
interests
Equity 31 December 2023
(1 160 )
Equity 1 January 2024
(1 160 )
Net income
(27 900 )
(27 900 )
(8 299 )
(36 199 )
Other comprehensive Income
(4 460 )
(3 594 )
Total comprehensive Income
(32 359 )
(17 494 )
(11 893 )
(29 388 )
Contributions by and distributions
to owners
Distribution to owners
(22 500 )
(22 500 )
(22 500 )
Effect of business combination
under common control
Distribution to non-controlling
interests
(153 )
(153 )
Transactions with non-controlling
interests
(1 319 )
(1 319 )
Equity 31 December 2024
(46 191 )
(10 962 )
100
NORLANDIA HEALTH & CARE GROUP AS
Consolidated Statement of Cash Flow
Norlandia Health & Care Group - for the year ended 31 December 2024
(NOK 1 000)
Note
2024
2023
Cash flows from operating activities
Profit/(loss) before taxes
(55 169 )
(47 043 )
Adjustments for:
Depreciation and amortisation
8, 9, 12
Share of net income from associated companies
11
(806 )
Gain/(loss) on sale of real estate and business
(80 383 )
(74 709 )
Net financial items
Changes in working capital
Increase/(decrease) in trade and other receivables
(212 170 )
Increase/(decrease) in inventories
(648 )
(2 190 )
Increase/(decrease) in trade and other payables
(32 241 )
Increase((decrease) in provisions and employee benefits
Cash generated from operations
Income taxes paid
(6 686 )
(33 169 )
Net cash flows from operating activities
Investing activities
Net investment in property, plant and equipment and intangible assets
8
(327 868 )
(244 341 )
Net investment in shares in subsidiaries
20
(59 943 )
Net investment in shares in associates and other investments
11, 20
(10 805 )
(8 011 )
Proceeds from sale of assets
Net changes in financial receivables
(4 829 )
Interest received
Net cash flows from investing activities
(225 826 )
(98 449 )
Financing activities
Repayments of non-current borrowings to finance institutions
15, 23, 18
(49 889 )
(144 855 )
Proceeds of current borrowings to finance institutions
15, 18
Proceeds from non-current borrowings from finance institutions
15, 18
Repayment of current bond
15, 18
(2 238 303 )
(657 043 )
Proceeds from non-current bonds
15, 18
Net interest paid and other financial items
6
(548 251 )
(462 408 )
Repayment of lease liabilities
(855 270 )
(724 033 )
Distributions to/from owner
(45 000 )
Net cash flows from financing activities
(1 250 005 )
(1 154 665 )
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of year
22
Exchange (losses)/gains on cash and cash equivalents
(96 )
Cash and cash equivalents at end of year
ANNUAL REPORT 2024
101
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
and its subsidiaries.
,
.
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
, 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,
.
The consolidated financial statements of Norlandia Health & Care Group AS were authorised for issue in accordance with the Board
of Directors’ resolution on 29 April 2024 and can be downloaded from Norlandia Health & Care Groups’ website
www.nhcgroup.no
.
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 IFRS® Accounting Standards as issued by the International Accounting Standards Board (IASB®) and endorsed by the European
Union (EU),
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 2024.
Applied principles for the Group
Basis of consolidation
Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or has rights to, variable returns
from its involvement with the entity and has the ability to affect those returns. 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.
Business Combinations
102
NORLANDIA HEALTH & CARE GROUP AS
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. Any goodwill that arises is tested annually for impairment.
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.
Business combinations under common control
There is currently no specific guidance on accounting for common control transactions that involve the transfer of control over one
or more businesses under IFRS Standards, as IFRS 3 Business Combinations does not address the appropriate accounting for business
combinations under common control. In the absence of specific guidance, the Group has developed and selected an appropriate
accounting policy using the hierarchy described in IAS 8 Accounting Policies, Changes in Accounting Estimates and Errors as used in
earlier years as well when this was relevant.
Considering relevant facts and circumstances for common control transactions, the principles used and assessed by the management
is broadly described as predecessor accounting. The principles of predecessor accounting are that assets and liabilities of the
acquired entity are stated at predecessor carrying values, and fair value measurement is not required. No new goodwill arises in
predecessor accounting. Any difference between the consideration given and the aggregate carrying value of the assets and liabilities
of the acquired entity at the date of the transaction is included in equity in retained earnings.
A prospective presentation method is applied, where the acquired entity’s results and balance sheet are incorporated prospectively
from the date on which the business combination between entities under common control occurred.
Non-controlling interests
Non-controlling interests are measured initially at their proportionate share of the acquiree’s identifiable nets assets at the date of
acquisition. Changes in the Group’s interest in a subsidiary that do not result in a loss of control are accounted for as equity
transactions.
Investment in associates
NHC Group has investments in associates, which are entities in which the Group has significant influence but no control or joint
control. 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.
Cash and cash equivalents
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.
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’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:
Preschools
This is the operation of kindergartens and accounts for over 40% of the revenue for the Group. 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.
ANNUAL REPORT 2024
103
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 hotels 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 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
104
NORLANDIA HEALTH & CARE GROUP AS
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 the operation of the asylum centers, 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 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 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 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 and goodwill
A significant part of the intangible assets in the Group relates to goodwill. Intangible assets also include customer contracts and
trademarks in addition to other intangible assets.
Goodwill represents the excess of the cost of an acquisition over the fair value of the Group’s share of the net identifiable assets in
the acquired subsidiary at the date of acquisition. Goodwill is classified as an intangible asset. 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 and trademarks are not amortized. At the acquisition date, goodwill and trademarks are allocated to each group of cash
generating units expected to benefit from the synergies. Impairment is determined by assessing the recoverable amounts of the
group of cash generating unit’s which the goodwill and trademarks relates. Please refer to note 10 for further information about
impairment.
Intangible assets with definitive lifetime acquired individually are measured initially at cost and recognised as an intangible asset
when the Group has control over the asset, future economic benefits are expected to flow to the Group and the cost can be
measured reliably. The cost to be capitalised as part of the assets includes direct and incremental costs. The cost of intangible assets
required in a business combination is the fair value at the date of acquisition. Following that initial recognition, intangible assets are
carried at cost less accumulated amortisation and any impairment losses. The straight-line amortisation method is used for the
intangible assets with definitive lifetime as this best reflects the consumption of the assets. The useful lives and amortisation
methods are reviewed at least annually.
ANNUAL REPORT 2024
105
Segment reporting
The Group has five strategic divisions, which are its reportable segments: Preschools, Care, Integration Services, Individual & Family
and Real Estate. Activities that do not fall naturally within these segments are bundled in Other/Eliminations.
The segment reporting is consistent with the financial information which is regularly reviewed by the Group management and the
Board of Directors. The ultimate decision maker is the Board of Directors, including the CEO. The Board and the CEO is responsible for
allocating resources to each segment as well as monitor the performance within each segment.
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.
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.
106
NORLANDIA HEALTH & CARE GROUP AS
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.
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.
ANNUAL REPORT 2024
107
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 to write off their carrying value over
their expected useful economic lives. Expected useful economic is as follows:
Land and buildings 20 - 30 years
Furniture, fixtures and equipment 3 - 20 years
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, potential earn-outs, 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.
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 corresponding 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.
108
NORLANDIA HEALTH & CARE GROUP AS
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
The Group regularly transfer properties to third parties and lease it back. The Group has for all such transactions so far determined
that the transfers shall be accounted for as sales according to the requirements in IFRS 15. The Group consequently measures the
right-of-use asset arising from the leaseback at the proportion of the previous carrying amount of the asset that relates to the right of
use retained by the Group. Accordingly, the Group recognises only the amount of any gain or loss that relates to the rights
transferred to the buyer -lessor.
See note 4 for further information.
Transactions with related parties
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
identified to be the key management personnel for the Group, shareholders, and associates
.
Cash flow statement
The cash flow statement is derived using the indirect method. Cash flows from investing and financing activities are presented
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 assumptions 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.
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.
Key sources of estimation uncertainty – critical accounting estimates
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in the period
in which the estimates are revised. The estimates considered to be most significant for the Group are set out below:
(a)
Goodwill and trademarks
Carrying values of goodwill and trademarks with indefinite useful lives are reviewed for impairment annually or more frequently if
there are indicators of a decrease in value below carrying amounts. 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.
ANNUAL REPORT 2024
109
Regarding the Care segment where the estimate shows most uncertainty, the Group have visibility on improved profitability from 2025
and onwards through multiple factors:
i.
Occupancy has within own management units in Sweden and Finland, that combined represents a material part of Care’s
turnover, steadily increased throughout 2024 and the Group expects the trend to continue based on growing demand backed
by demographics. At normalized occupancy levels these units should generate higher profits than ordinary tender contracts
and in 2024 they were slightly loss making, hence representing a great upside potential.
ii.
The Group have discontinued certain loss-making operations and have exit options on other areas that are currently loss
making but for now kept on the premise of need for immediate improvement.
iii.
The historically high-cost inflation recent years will to a greater extent be accounted for in 2025 and future price levels,
resulting in improved profitability given lower inflation rates.
iv.
Along with these effects the Group have through an internally established program initiated multiple measures to improve
operational efficiency and reducing sick leave.
(b)
Useful lives of property, plant and equipment and intangible assets
Depreciation expenses are based on management’s estimates of depreciation method, useful life and residual value. Estimates may
change due to competition, changes in market conditions, geopolitical developments, climate change and other factors. Property, plant
and equipment are depreciated to residual value over the asset’s expected useful life on a straight-line basis. Useful life period for fixed
assets is between 3 – 30 years. The Group amortizes intangible assets with a limited useful life using the straight-line method over the
periods 3 – 20 years. More information is included in note 8 and note 9.
(c)
Right-of-use-assets (ROU) and lease liability
Recognition of both ROU and lease liability require the choice of a discount rate in order to calculate the present value of the cash
flows. More information on how the interest rate is estimated is included in note 12.
(d)
Deferred tax assets
Deferred tax assets related to tax losses carried forward are recognised to the extent that expected future income for the respective
company will be sufficient over the medium term to utilize those losses. This requires an estimate to be made of the expected future
income of the company concerned. Estimates of future income tax may change over time, and this could result in changes to the
carrying value of deferred tax assets. Further details of the recognised deferred tax assets are given in note 16.
Critical judgements in applying the Group’s accounting policies
(a)
Right-of-use-assets (ROU) and lease liability: lease term
Determining the lease term can involve significant judgement for lease contracts with extension or termination options, as an
assessment of whether or not it is reasonably certain that the lease period will be extended is required. The broader economics of the
contract and not only contractual termination payments are basis for such assessment. The Group leases most of its offices, hotels,
preschools, nursing homes and houses. Lease agreements typically run for 10+ years within preschools and Care and less for the other
segments. Preschools represent around 57% of the total right-of-use assets in the Group, while Care represents around 21%. Contracts
normally include an option to prolong the lease. The Group does not include extension options in the length of the lease term due to
the uncertainty related to the long remaining lease. Further details are given in note 12.
110
NORLANDIA HEALTH & CARE GROUP AS
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
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
Non-financial assets
(NOK 1 000)
2024
2023
2024
2023
2024
2023
Cash and cash equivalents
-
-
440 229
345 984
-
-
Trade receivables
-
-
683 171
746 772
-
-
Other current receivables (note 13)
-
-
162 108
303 865
229 300
226 568
Other non-current receivables
-
-
110 989
17 687
-
-
Other investments
32 994
21 346
-
-
-
-
Total financial assets
32 994
21 346
1 396 497
1 414 307
229 300
226 568
Financial liabilities
Financial liabilities at fair value
through profit or loss
Financial liabilities
at amortised cost
Non-financial liabilities
(NOK 1 000)
2024
2023
2024
2023
2024
2023
Trade and other current payables
-
-
1 711 908
1 755 033
-
-
Borrowings
-
-
3 143 018
2 999 347
-
-
Lease liabilities
-
-
7 638 814
7 061 914
-
-
Total financial liabilities
-
-
12 493 741
11 816 294
-
-
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 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.
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:
ANNUAL REPORT 2024
111
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
Market risk can be defined as the risk that the Group’s income and expenses, future cash flows or fair value of financial instruments
will fluctuate because of changes in market prices of financial instruments.
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 2024 and 2023, 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.
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
15 715
12 258
12 258
Effect of a 0.5% decrease
(15 715)
(12 258)
(12 258)
Foreign exchange risk
The Group has operations in Norway, Sweden, Finland, Netherland and Poland, and is therefore exposed to fluctuations of foreign
currency rates.
With regards to translational exposure, NHC Group faces risk arising from the translation of subsidiaries whose functional currency
differs from the presentation currency of the Group. Translational exposure does not give rise to an immediate cash effect, however
as it may impact the Group’s financials, it is closely monitored. The Group seeks to mitigate balance sheet exposure by funding assets
with borrowing denominated in the same currency. The exposure related to equity of foreign subsidiaries is generally not hedged.
The Group is predominantly exposed to the SEK/NOK exchange rate as around 42% of revenues are generated in SEK. However, the
Group has a corresponding share of costs in SEK and about 46% 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 currency protections measures may be allowed to prevent situations of financial distress, in those cases where the
exposure cannot be effectively reduced by use of operational hedges.
The effect from the bond issued if the NOK/SEK currency change is presented below.
112
NORLANDIA HEALTH & CARE GROUP AS
(NOK 1 000)
Currency effect
Effect on
P&L
Effect on Equity
Effect of SEK weakens of 1.0% toward
NOK
10 500
8 190
8 190
Effect of SEK strengthen of 1.0%
toward NOK
(10 500)
(8 190)
(8 190)
The Group is further exposed to the risk that medium/long-term trend shifts in exchange rates might affect its competitive position.
This strategic currency exposure is regularly monitored, but as the exposure is currently relatively limited it is not actively hedged.
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
Total
At 31 December 2024
Trade and other current payables
1 711 908
-
-
-
-
1 711 908
Borrowings
534 196
49 943
49 943
2 352 316
156 619
3 143 018
Lease liabilities
1 144 484
1 201 369
1 201 369
1 201 406
4 320 693
9 069 321
Total
3 390 588
1 251 313
1 251 313
3 553 722
4 477 312
13 924 248
(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
Total
At 31 December 2023
Trade and other current payables
1 755 033
-
-
-
-
1 755 033
Borrowings
292 997
2 367 877
31 228
62 559
402 756
3 157 418
Lease liabilities
971 264
801 545
801 545
1 603 090
4 200 262
8 377 707
Total
3 019 294
3 169 422
832 773
1 665 649
4 603 019
13 290 157
ANNUAL REPORT 2024
113
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 ratio of approximately 10% and maintain net interest-
bearing debt below 4x adjusted EBITDA. As per end of 2024 and 2023 the equity ratio was above the target. The net interest -bearing
debt ratio was above target mainly due to an increased property portfolio and growth costs within the Preschool and Care segments
negatively affecting the Group’s overall profitability . The objective of this strategy is to secure access to financ ing at reasonable cost
by maintaining a high credit rating. The ratios on 31 December 2024 and on 31 December 2023 were as follows:
(NOK 1 000)
2024
2023
Borrowings, including real estate debt
3 143 018
2 999 347
Less: cash and cash equivalents
440 229
345 984
Net interest-bearing debt excl lease liabilities
2 702 790
2 653 363
Total equity
899 657
943 519
EBITDA (adjusted) *
491 507
457 463
Total capital (excluding IFRS 16 leasing)
6 068 283
6 071 524
Equity ratio (%)
14,8 %
15,5 %
Net interest bearing debt/EBITDA
5,5
5,8
EBITDA (adjusted) is defined as EBITDA adjusted for IFRS 16 effects. A reconciliation is shown in note 4.
The Net interest bearing debt/EBITDA calculation in the table above represents the Group's total leverage ratio. In the event of an
incurrence test, adjustments will be made according to the definition in the bond agreement.
Total capital is defined as total equity and liabilities, adjusted for leasing liabilities. A reconciliation is presented below:
(NOK 1 000)
2024
2023
Total equity and liabilities
13 707 097
13 133 439
Non-current leasing liabilities
6 730 711
6 297 807
Current lease liabilities
908 103
764 107
Total capital (excluding IFRS 16 effects)
6 068 283
6 071 524
114
NORLANDIA HEALTH & CARE GROUP AS
4. SEGMENT INFORMATION, REVENUE AND OTHER OPERATING INCOME
The Group has five strategic divisions, which are its reportable and operating segments. 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
segment within the Group. The Group has long history within the Nordic markets with Norway and Sweden representing more than
half of the revenue.
Care
and patient hotels in the Nordics. In addition, the Group has in recent years entered the home care market. After the acquisition of
Brado Group in January 2023, the Swedish operations is now one of the largest private operators with Sweden representing more than
half of the revenue.
Integration
services
operators. Main services are Reception centres, Education and Interpretation services. Norway is the largest operation representing
more than half of revenue.
Individual
&
family
Nordics. Services included are childcare institutions and foster homes, assisted living and user controlled personal assistance (BPA).
The segment has become a significant player in the Nordics.
Real
Estate
develops and divests properties to support the operations and growth of the Group.
The segments result is defined as operating result adjusted for IFRS 16. The chief operating decision maker is the Board of Directors,
including the CEO. The Board and the CEO is responsible for allocating resources to each segment as well as monitor the performance
within each segment. Other activities/eliminations consist of activities in the holding companies, group eliminations and IFRS 16 effects,
presented in separate table below. A measure of total assets and liabilities for each reportable segment is not regularly provided to
the chief operating decision maker and as a consequence only the statement of income are included in the figures below.
2024
Preschools
Care
Integration
services
Individual &
Family
Real Estate
Other /
Eliminations
Total
Operating revenues
4 842 035
2 186 425
1 008 266
3 556 238
29 181
77 987
11 700 132
Other income
80
103
-
86
88 086
(7 972)
80 383
Total
4 842 115
2 186 528
1 008 266
3 556 324
117 267
70 015
11 780 515
Cost of goods and services sold
(137 149)
(32 311)
(119 176)
(69 610)
(674)
(100 751)
(459 671)
Personnel expenses
(3 292 865)
(1 669 361)
(482 509)
(2 768 880)
(13 633)
(208 330)
(8 435 576)
Depreciation and amortisation
(79 835)
(14 497)
(17 526)
(21 692)
(15 050)
(912 612)
(1 061 211)
Other operating expenses
(1 198 543)
(526 010)
(310 382)
(531 733)
(38 569)
1 296 213
(1 309 025)
Operating profit/(loss)
133 723
(55 651)
78 673
164 409
49 341
144 535
515 031
-
Net financial items
(29 878)
65 069
(2 486)
(178 183)
2 841
(425 918)
(568 555)
Share of net income from associated
companies
(1 645)
-
-
-
-
-
(1 645)
Profit/(loss) before taxes
102 200
9 417
76 188
(13 774)
52 182
(281 382)
(55 169)
ANNUAL REPORT 2024
115
Specification of Other / Eliminations
2024
Other
IFRS 16
Eliminations
Total
Operating revenues
493 541
-
(415 554)
77 987
Other income
-
(10 705)
2 733
(7 972)
Total
493 541
(10 705)
(412 820)
70 015
Cost of goods and services sold
(104 464)
-
3 714
(100 751)
Personnel expenses
(228 138)
-
19 808
(208 330)
Depreciation and amortisation
3 923
(923 686)
7 151
(912 612)
Other operating expenses
(191 050)
1 095 440
391 823
1 296 213
Operating profit/(loss)
(26 188)
161 049
9 675
144 535
Net financial items
(110 465)
(242 408)
(73 045)
(425 918)
Share of net income from associated
companies
-
-
-
-
Profit/(loss) before taxes
(136 653)
(81 359)
(63 370)
(281 382)
2023
Preschools
Care
Integration
services
Individual &
Family
Real Estate
Other /
Eliminations
Total
Operating revenues
4 440 035
2 122 042
1 164 690
3 066 781
23 975
(121 098)
10 696 424
Other income
647
13
10
1 007
98 813
(24 748)
75 742
Total
4 440 681
2 122 055
1 164 700
3 067 788
122 788
(145 846)
10 772 166
Direct cost of goods and services
(132 952)
(26 418)
(122 238)
(58 368)
(212)
(11 002)
(351 190)
Personell expenses
(3 007 377)
(1 689 662)
(376 779)
(2 430 548)
(12 882)
(122 749)
(7 639 998)
Depreciation and amortisation
(74 943)
(22 214)
(10 462)
(18 249)
(6 732)
(799 455)
(932 055)
Other operating expenses
(1 095 789)
(489 262)
(483 138)
(455 766)
(46 195)
1 155 400
(1 414 750)
Operating profit/(loss)
129 620
(105 502)
172 083
104 856
56 767
76 348
434 173
Net financial items
(16 818)
34 973
(9 354)
(92 083)
(13 804)
(384 937)
(482 022)
Share of net income from associated
companies
806
-
-
-
-
-
806
Profit/(loss) before taxes
113 608
(70 529)
162 729
12 773
42 963
(308 589)
(47 043)
Specification of Other / Eliminations
2023
Other
IFRS 16
Eliminations
Total
Operating revenues
188 024
-
(309 122)
(121 098)
Other income
7
(24 755)
-
(24 748)
Total
188 031
(24 755)
(309 122)
(145 846)
Direct cost of goods and services
(10 950)
-
(52)
(11 002)
Personell expenses
(126 443)
-
3 693
(122 749)
Depreciation and amortisation
3 854
(798 095)
(5 215)
(799 455)
Other operating expenses
(83 427)
933 520
305 307
1 155 400
Operating profit/(loss)
(28 934)
110 670
(5 388)
76 348
Net financial items
70 048
(209 487)
(245 498)
(384 937)
Share of net income from associated
companies
-
-
-
-
Profit/(loss) before taxes
41 114
(98 817)
(250 887)
(308 589)
116
NORLANDIA HEALTH & CARE GROUP AS
Operating revenues by geography
2024
2023
Norway
4 951 327
4 682 762
Sweden
4 902 641
4 567 198
International
1 738 995
1 543 588
Real Estate/Other/Elimination
107 168
(97 124)
Total revenues by geography
11 700 132
10 696 424
2024
Preschools
Care
Integration
services
Individual &
Family
Other /
Eliminations
Norway
48%
13%
88%
41%
0%
Sweden
24%
74%
0%
59%
0%
International
28%
13%
12%
0%
0%
Real Estate/Other/Elimination
0%
0%
0%
0%
100%
Total revenues by geography
100%
100%
100%
100%
100%
2023
Preschools
Care
Integration
services
Individual &
Family
Other /
Eliminations
Norway
48%
14%
89%
39%
0%
Sweden
24%
76%
1%
61%
0%
International
28%
10%
10%
0%
0%
Real Estate/Other/Elimination
0%
0%
0%
0%
100%
Total revenues by geography
100%
100%
100%
100%
100%
Other income
2024
2023
Gain on sale of assets
88 086
98 813
Deferred gain from sale leaseback and booked as reduced ROU
(10 705)
(24 755)
Gain on sale of business
-
-
Other
3 003
1 684
Total other income
80 383
75 742
Sale leaseback transactions
Gain on sale of assets in 2024 and 2023 relates to sale and leaseback transactions of property acquired or developed. The assets subject
to the transactions were buildings used in the Preschool reporting segment. In connection with the transactions a lease contract was
entered into. The lease term was 10 years, with an option for an extension of 10 more years in most cases.
IFRS 16 adjustments
The segments result is defined as operating result adjusted for IFRS 16. The table below specify the IFRS 16 adjustment per accounting
line 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)
2024
IFRS 16
effects
2024
Adjusted
2023
IFRS 16
effects
2023
Adjusted
Operating revenues
11 700 132
-
11 700 132
10 696 424
-
10 696 424
Other income
80 383
10 705
91 088
75 742
24 755
100 497
Total
11 780 515
10 705
11 791 220
10 772 166
24 755
10 796 921
Direct cost of goods and services
(459 671)
-
(459 671)
(351 190)
-
(351 190)
Personell expenses
(8 435 576)
-
(8 435 576)
(7 639 998)
-
(7 639 998)
Depreciation and amortisation
(1 061 211)
923 686
(137 525)
(932 055)
798 095
(133 961)
Other operating expenses
(1 309 025)
(1 095 440)
(2 404 465)
(1 414 750)
(933 520)
(2 348 270)
Operating profit/(loss)
515 031
(161 049)
353 982
434 173
(110 671)
323 502
Net financial items
(568 555)
242 408
(326 147)
(482 022)
209 487
(272 535)
Share of net income from associated comp
(1 645)
-
(1 645)
806
-
806
Profit/(loss) before taxes
(55 169)
81 359
26 190
(47 043)
98 816
51 773
ANNUAL REPORT 2024
117
5. PERSONNEL EXPENSES
(NOK 1 000)
Note
2024
2023
Personnel expenses (including directors) comprise:
Wages and salaries
(6 541 526)
(5 944 027)
Pension cost
19
(463 159)
(402 617)
Other benefits
(125 306)
(96 102)
Social security contributions and similar taxes
(1 304 986)
(1 196 651)
Remuneration to Board of Directors
(600)
(600)
Total personnel expenses
(8 435 576)
(7 639 998)
Number of employees (FTE)
11 818
12 024
Name
2024
2023
Yngvar Tov Herbjørnssønn (CEO)
5 317
4 943
Total compensation
5 317
4 943
The group was established in December 2016 and no key management group has been identified for the years 2024 and 2023.
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
2024
2023
Audit
(18 335)
(16 145)
Tax services
(66)
(288)
Attestation services
(2 812)
(1 990)
Other services
(1 520)
(1 119)
Total
(22 733)
(19 543)
6. NET FINANCIAL ITEMS
(NOK 1 000)
2024
2023
Interest received on bank deposits and receivables
6 342
11 618
Other finance income
5 269
(317)
Total finance income
11 610
11 301
Interest expense on financial liabilities measured at amortised cost
(332 437)
(273 535)
Interest expense on lease liability
(242 408)
(209 487)
Other financial expenses
(12 266)
(3 327)
Total finance expense
(587 112)
(486 349)
Net foreign exchange gains/(losses)
6 946
(6 974)
Net financial items
(568 555)
(482 022)
118
NORLANDIA HEALTH & CARE GROUP AS
7. TAX EXPENSE
(NOK 1 000)
Note
2024
2023
Current tax expense
Current tax on profits for the year
(39 956)
(30 221)
Adjustment of prior year's income taxes
1 712
(1 077)
Total current tax expense
(38 244)
(31 298)
Deferred tax expense/(income)
Changes in deferred taxes
16
57 214
43 799
Total deferred tax income/(expense)
57 214
43 799
Total income tax
18 970
12 500
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:
2024
2023
Profit/(loss) for the year
(36 199)
(34 543)
Income tax expense
18 970
12 500
Profit/(loss) before income taxes
(55 169)
(47 043)
Expected tax charge based on the standard rate of Norwegian corporation tax at the
domestic rate of 22 %
12 137
10 350
Tax rates outside of Norway different from 22%
13 995
(3 570)
Change in tax rate for deferred tax
11 741
-
Permanent differences
16 107
3 045
Adjustment of prior's years tax
(256)
Effect of unrecognised deferred tax assets
(34 755)
2 676
Total tax expense
18 970
12 500
ANNUAL REPORT 2024
119
8. PROPERTY, PLANT AND EQUIPMENT
Land and
buildings
Work in
progress
Furniture,
fixtures and
equipment
(NOK 1 000)
Total
Historical cost
Historical cost at 1 January 2023
682 129
46 027
648 424
1 376 581
Acquisitions through business combinations
273 213
-
10 910
284 123
Additions
94 370
36 115
113 856
244 341
Disposals
(253 870)
(18 131)
(1 944)
(273 945)
Reclassification/transfer
(27 524)
2 779
24 745
(0)
Effect of movement in exchange rates
11 251
84
11 111
22 446
Balance at 31 December 2023
779 571
66 874
807 102
1 653 546
Accumulated depreciation and impairment losses
Acc. depreciation and impairment at 1 January 2023
(182 824)
-
(401 769)
(584 593)
Depreciation
(22 708)
-
(69 852)
(92 560)
Impairment loss / reversal of impairment loss
-
-
(31)
(31)
Disposals
4 062
(8 383)
930
(3 390)
Reclassification/transfer
18 043
(15 344)
(2 700)
(0)
Effect of movement in exchange rates
(5 442)
(239)
(9 423)
(15 104)
Balance at 31 December 2023
(188 869)
(23 965)
(482 844)
(695 679)
Closing balance at 1 January 2023
499 306
46 027
246 655
791 988
Closing balance at 31 December 2023
590 702
42 909
324 257
957 868
Historical cost
Historical cost at 1 January 2024
779 571
66 874
807 102
1 653 546
Acquisitions through business combinations
44 692
-
-
44 692
Additions
153 542
72 001
85 540
311 083
Disposals
(191 323)
(55 367)
(17 220)
(263 909)
Reclassification/transfer
9 368
(7 821)
(1 546)
0
Effect of movement in exchange rates
16 106
1 365
17 600
35 071
Balance at 31 December 2024
811 955
77 052
891 476
1 780 483
Accumulated depreciation and impairment losses
Acc. depreciation and impairment at 1 January 2024
(188 869)
(23 965)
(482 844)
(695 679)
Depreciation
(17 334)
-
(80 485)
(97 819)
Impairment loss / reversal of impairment loss
-
(3 006)
-
(3 006)
Disposals
12 373
3 006
13 652
29 031
Effect of movement in exchange rates
(11 889)
(562)
(16 633)
(29 084)
Balance at 31 December 2024
(205 718)
(24 527)
(566 309)
(796 555)
Closing balance at 1 January 2024
590 702
42 909
324 257
957 868
Closing balance at 31 December 2024
606 237
52 525
325 167
983 928
Property, plant and equipment pledged as security for liabilities.
2024
2023
Land and buildings, including work in progress
658 762
633 610
Current estimates of useful economic life of fixed assets are as follows:
Land
Indefinite
Building
20 - 30 years
Work in progress
Not applicable
Furniture, fixtures and equipment
3 -20 years
120
NORLANDIA HEALTH & CARE GROUP AS
9. GOODWILL AND INTANGIBLE ASSETS
Goodwill
Other
intangible
assets
(NOK 1 000)
Customer
contracts
Trademarks
Total
Historical cost
Historical cost at 1 January 2023
1 949 359
532 625
173 196
64 902
2 720 083
Acquisitions through business combinations
1 110 840
-
-
6 390
1 117 230
Additions
5 365
-
-
17 702
23 067
Disposals
-
-
-
(3 579)
(3 579)
Effect of movement in exchange rates
73 429
6 327
-
3 733
83 489
Balance at 31 December 2023
3 138 994
538 953
173 196
89 148
3 940 290
Accumulated amortisation and impairment losses
Acc. amortisation and impairment at 1 January 2023
45 239
(209 202)
-
(31 805)
(195 767)
Amortisation
(0)
(24 092)
-
(8 119)
(32 211)
Impairment loss / reversal of impairment loss
(9 185)
-
-
-
(9 185)
Disposals
-
-
-
2 022
2 022
Effect of movement in exchange rates
177
(5 953)
-
(1 406)
(7 182)
Balance at 31 December 2023
36 231
(239 247)
-
(39 307)
(242 324)
Closing balance at 1 January 2023
1 994 598
323 424
173 196
33 098
2 524 316
Closing balance at 31 December 2023
3 175 224
299 705
173 196
49 841
3 697 966
Historical cost
Historical cost at 1 January 2024
3 138 994
538 953
173 196
89 148
3 940 290
Acquisitions through business combinations
-
-
-
-
-
Additions
556
-
-
16 785
17 342
Disposals
(30)
-
-
-
(30)
Effect of movement in exchange rates
41 477
1 523
-
1 870
44 870
Balance at 31 December 2024
3 180 997
540 476
173 196
107 803
4 002 472
Accumulated amortisation and impairment losses
Acc. amortisation and impairment at 1 January 2024
36 231
(239 247)
-
(39 307)
(242 324)
Amortisation
-
(24 147)
-
(12 554)
(36 701)
Effect of movement in exchange rates
430
(1 497)
-
(1 043)
(2 110)
Balance at 31 December 2024
36 661
(264 892)
-
(52 904)
(281 135)
Closing balance at 1 January 2024
3 175 224
299 705
173 196
49 841
3 697 966
Closing balance at 31 December 2024
3 217 658
275 584
173 196
54 899
3 721 338
The Group has no contractual commitments for development costs.
Impairment losses in 2023 relates to dissolved companies, where the booked goodwill was taken as an impairment loss following
the dissolvement.
Current estimates of useful economic life of intangible assets are as follows:
Goodwill
Indefinite
Customer contracts
3 -20 years
Trademarks
Indefinite
Other intangible assets
3 -7 years
ANNUAL REPORT 2024
121
10. IMPAIRMENT TESTING OF GOODWILL AND TRADEMARKS
At acquisition, goodwill and trademarks are allocated to the operating segments they belong to, as specified below. The operating
segments are the same as the reporting segments, as described in note 4. The managing directors within a segment operate across
countries to provide synergies and provide business opportunities between countries. Hence, the Group performs the impairment
testing on a group of cash generating units that comprise the operating segments below.
Goodwill and trademarks are allocated as follows between four operating and reporting segments:
Specification of goodwill
(NOK 1 000)
2024
2023
Preschools
1 208 025
1 187 427
Care
582 470
579 270
Integration services
128 979
128 653
Individual & family
1 298 185
1 279 875
Total goodwill
3 217 658
3 175 224
Specification of trademarks
(NOK 1 000)
2024
2023
Preschools
118 463
118 463
Care
29 616
29 616
Integration services
-
-
Individual & family
25 117
25 117
Total trademarks
173 196
173 196
Impairment testing for reporting and operating segments containing goodwill and trademarks
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.
The majority of the Groups revenues are tightly linked with development in the general cost inflation and wage settlements in the
countries we operate, although with a lag effect as prices normally are adjusted 1-2 years after the cost increases occur.
Consequentially, EBITDA can fluctuate in periods with unstable inflation, but over time we regard these effects to be neutralized to a
great extent. Further, most of our operations have price models depending on occupancy, and based on thorough demographical
analysis in all areas, we see an overall great demand for our services. Personnel costs account for the majority of the Groups cost base,
and usually contractually fixed with our counterparties. Through frequent reviews, we monitor that both staffing ratios and salary
levels are in accordance with contractual requirements to deliver high quality and sustainable profitability. Maintenance related capital
expenditure is constantly monitored and through systematically follow -up, we have a strong understanding on future needs in terms
of capital expenditure related to our lease contracts.
For the fiscal years 2024 and 2023 the value in use for the cash generating units are based on the following key assumptions :
122
NORLANDIA HEALTH & CARE GROUP AS
2024
Preschools
Care
Integration
Services
Individual &
Family
Growth rate
2,0 %
2,0 %
2,0 %
2,0 %
Discount rate after tax
7,3 %
7,3 %
7,3 %
7,3 %
2023
Preschools
Care
Integration
Services
Individual &
Family
Growth rate
2,0 %
2,0 %
2,0 %
2,0 %
Discount rate after tax
6,8 %
6,8 %
6,8 %
6,8 %
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 2024. 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):
2024
Preschools
Care
Integration
Services
Individual &
Family
Changes in cash flows
46,0 %
22,0 %
62,0 %
100,0 %
Changes in discount rates
4,8 %
1,6 %
11,5 %
6,5 %
2023
Preschools
Care
Integration
Services
Individual &
Family
Changes in cash flows
56,9 %
25,7 %
83,3 %
99,9 %
Changes in discount rates
6,6 %
1,5 %
32,7 %
3,5 %
The sensitivity analysis shows that the reporting segment Care is somewhat sensitive for changes in the parameters, and 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 582.5 million on 31 December 2024 (NOK 579.3 million 31 December 2023).
Based the impairment testing, management believes that there is no need for impairment of the carrying value of goodwill and
trademarks as of 31 December 2024.
ANNUAL REPORT 2024
123
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
2024
2023
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%
Brado AB
Sweden
Tanumshede
100%
100%
Material operating companies
Norlandia Förskolor AB
Sweden
Stockholm
100%
100%
Kids2Home Förskolor AB (former: Kids2Home AB)
Sweden
100%
100%
Norlandia Päiväkodit Oy
Finland
100%
100%
Norlandia Care Norge AS
Norway
100%
100%
Norlandia Hjemmeomsorg AS
Norway
100%
100%
Norlandia Care AB
Sweden
100%
100%
Hero Norge AS
Norway
100%
100%
Aberia Ung AS
Norway
100%
100%
Aberia Omsorg AS
Norway
100%
100%
Aurora Omsorg AS
Norway
100%
100%
Frösunda Omsorg AB
Sweden
100%
100%
Norlandia Äldreomsorg AB
Sweden
100%
100%
Svenska Kunskapsförskolan Koncept AB
Sweden
100%
100%
Hero Tolk AS
Norway
100%
100%
Norlandia Kinderopvang Zuid B.V.
Netherlands
Utrecht
100%
100%
Agito Sverige AB
Sweden
100%
100%
Norlandia Preschools AS
Norway
100%
100%
Norlandia Kinderopvang Rotterdam BV
Netherlands
Rotterdam
100%
100%
Norlandia Health & Care Group Services AB
Sweden
100%
100%
Norlandia Polska Sp. z.o.o
Poland
100%
100%
Hero Services gGmbH
Germany
Berlin
100%
100%
Frösunda Omsorg i Uppland AB
Sweden
100%
100%
Norlandia Care Kuopio OY
Finland
100%
100%
Frösunda LSS AB
Sweden
100%
100%
Norlandia Care Malminkartano OY
Finland
100%
100%
Aberia Personlig Assistans AB
Sweden
100%
100%
Enskilda Sjukhemmet Solliden AB
Sweden
Skene
100%
100%
Norlandia Päiväkodit Jyvässeutu Oy
Finland
100%
100%
Hero Zukunft GmbH
Germany
Berlin
100%
100%
Frösunda Personlig Assistans AB
Sweden
Malmö
100%
100%
124
NORLANDIA HEALTH & CARE GROUP AS
The table below shows the material associated companies held by the Group, which is accounted for using the equity method. As of
31 December 2024, Norlandia Preschools AS holds a 50% ownership in Wekita GmbH, which is a German company operating in the
Preschool segment. In addition, the Group sold approximately 51% of it’s shares in Glittre Invest AS in December 2024, giving away
control of that company, leaving approximately 49% shares held by NHC Omsorgsbygg AS. Hence, the company was deconsolidated
as a subsidiary in the Group as of December, and will be treated as an associated company (equity method) going forward.
(NOK 1 000)
2024
2023
Investment in associates as of 01.01
34 471
25 613
Share of net income from associated companies
(1 645)
806
New investment in associates
43 756
8 052
Investment in associates as of 31.12
76 582
34 471
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 around 57% of the total right-of-use assets in the Group, while Care
represents around 21%. 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. To determine the discount rate, the Group have considered three key
components: reference rate, financing spread adjustment and lease specific adjustment. The interest rate is estimated per country and
varies between 2.5-6.9%, depending on duration in years. 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)
2024
2023
Right of use asset
Balance at 1 January
6 548 205
5 171 842
New contracts
762 591
770 506
Acquired through business combinations
-
830 199
Remeasurement or amendments
514 215
315 364
Depreciation
(923 686)
(798 095)
Exchange differences
124 922
258 389
Year ended 31 December
7 026 247
6 548 205
Maturity analysis lease liabilities - undiscounted cash flows
Less than one year
1 144 484
971 264
One to five years
3 600 971
3 206 180
More than five years
4 323 866
4 200 262
Total undiscounted lease liabilities 31 December
9 069 321
8 377 707
Classification of lease liabilities in the statement of financial position
Non-current
6 730 711
6 297 807
Current
908 103
764 107
Total lease liabilities
7 638 814
7 061 914
Lease expenses not included in lease liabilities
Short-term lease expenses
(72 777)
(256 260)
Payments for short term leases are mainly related to the rental of refugee centers for the operating segment Integration Services.
Nearly all the acute centers opened in 2022 were replaced by long-term ordinary centers during 2023 and 2024. The Group had some
active acute centers open during the first part of the year where the rent expense was treated as an operational lease. By the end of
2024, only one center was based on a short-term contract, and going forward we expect most of refugee centers to be treated as a
financial lease.
ANNUAL REPORT 2024
125
Variable lease expenses and lease expenses related to leases of low value assets are not significant for the Group.
Acquisition of subsidiary in 2023 relates to the acquisition of Frösunda. The majority of these contracts concern rents for nursing homes
for the elderly and for people with disabilities. The lease agreements typically run for 10-15 years.
13. TRADE AND OTHER RECEIVABLES
(NOK 1 000)
Note
2024
2023
Trade receivables
703 686
766 491
Less: provision for impairment of trade receivables
(20 515)
(19 719)
Trade receivables - net
683 171
746 772
Prepaid expenses
217 654
210 915
Prepaid public duties
11 646
15 653
Other current receivables
162 108
303 865
Total other current receivables
391 408
530 433
Other non-current receivables
110 989
17 687
Total receivables classified as loans and receivables
1 185 569
1 294 892
The fair values of trade and other receivables classified as loans and receivables are not materially different to their carrying
values.
The Group does not hold any collateral as security.
The increase in other non-current receivables from last year is mainly due to increased loans to group companies and related
parties.
Movements on the Group provision for impairment of trade receivables are as follows:
(NOK 1 000)
2024
2023
At 1 January
(19 720)
(10 756)
Provided during the year
(8 852)
(12 723)
Receivable written off during the year as uncollectible
10 000
-
Reversal of provisions prior years
(1 944)
3 760
At 31 December
(20 515)
(19 719)
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
2024
703 686
633 424
8 476
5 421
56 366
2023
766 491
676 692
47 695
3 535
38 569
126
NORLANDIA HEALTH & CARE GROUP AS
14. SHARE CAPITAL, SHAREHOLDERS, DIVIDENDS AND RESERVES
Share capital
2024
2024
2023
2023
(Amounts in NOK)
Number
NOK
Number
NOK
Ordinary shares of NOK 10.4 each
47 697 448
496 053 459
47 697 448
496 053 459
Total
47 697 448
496 053 459
47 697 448
496 053 459
Shareholders
Each share gives the shareholder one voting right.
Hospitality Invest AS
46 266 525
97,00%
Stork Industries AS
715 462
1,50%
Cowry EV AS
715 462
1,50%
Total
47 697 448
100,00%
Kristian A. Adolfsen holds, directly and indirectly, 46.64 % of the shares in Hospitality Invest AS
Roger Adolfsen holds, directly and indirectly, 46.63% 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.
ANNUAL REPORT 2024
127
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)
2024
2024
2023
2023
Non-Current
Interest-bearing debt
2 687 874
2 687 874
2 617 746
2 617 746
Total non-current interest-bearing debt
2 687 874
2 687 874
2 617 746
2 617 746
Current
Interest-bearing debt
455 144
455 144
381 600
381 600
Total current interest-bearing debt
455 144
455 144
381 600
381 600
The currency profile of the Group's loans and borrowings is as follows:
(Currency in 1 000 NOK)
2024
2023
NOK
2 068 688
1 891 344
SEK
1 074 331
1 108 003
Total
3 143 018
2 999 347
Borrowings as of 31.12.2024
Interest
Amount
Due date
Bond loans
NIBOR/STIBOR +5.50%
2 352 984
2028
Current overdraft facilities
NOWA + margin
392 807
Property debt outside ringfence structure
2.42%-7.48%
384 121
2023-2050
Other debt/property debt
13 106
3 143 018
Borrowings as of 31.12.2023
Interest
Amount
Due date
Bond loans
NIBOR/STIBOR +5.75%
2 271 536
2025
Current overdraft facilities
NOWA + margin
289 687
Property debt outside ringfence structure
2.42%-5.76%
394 288
2023-2050
Other debt/property debt
43 836
2 999 347
128
NORLANDIA HEALTH & CARE GROUP AS
Bond
In June 2024, the Group successfully placed a senior secured sustainability -linked bond. The bond consists of a NOK and SEK tranche
with a total amount of NOK 2,300 million, and it has a minimum liquidity covenant of NOK 125 million. The bond is due in July 2028.
The bond issue is split in a subsequent issue of NOK 1 250 million in the NOK-tranche (ISINs NO0013266676), and a subsequent issue
of SEK 1 050 million in the SEK-tranche of the bond (ISINs NO0013266684)
The previous senior secured bond was fully repaid in in July 2024.
As per December 2024 MNOK 31.1 were unamortised borrowing costs (31 December 2023 MNOK 14.1). 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.
Overdraft facilities
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. This was increased to NOK 500 million in July 2024. NOK 392.8 million was drawn as per 31 December 2024
(MNOK 289.7 as of 31 December 2023).
Property debt outside ringfence structure
The majority of the property debt outside 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 allowed 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 2024, the amount totaled to MNOK 384.1 (NOK 394.3 as of 31 December
2023).
ANNUAL REPORT 2024
129
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)
2024
2023
At 1 January
6 652
(36 878)
Change in deferred taxes
57 214
43 799
Currency effects
(448)
-
Recognised in other comprehensive income
1 258
(3 016)
Sum
64 676
3 905
Net aquisition/(disposal) from business combinations
(12 780)
2 748
At 31 December
51 897
6 652
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 table below outlines the Group's net deferred tax liability, amounts recognised in profit or loss and amounts
recognised in other comprehensive income:
(Charged)/
(Charged)/
(Charged)/
(Charged)/
credited
credited to
credited
credited to
Net
to profit
equity or
Net
to profit
equity or
DTA/(DT)
or loss
DTA/(DT)
or loss
(NOK 1 000)
Tax effect of temporary differences
2024
2024
2024
2023
2023
2023
Fixed and intangible assets
110 829
64 547
(12 780)
59 062
107 226
2 748
Accounts receivable
1 680
1 230
-
450
(924)
-
Inventory
(1 426)
(1 290)
-
(136)
(136)
-
Pensions
(425)
828
1 258
(2 511)
(675)
(3 016)
Gain and loss account (NO Tax Act only)
(60 565)
14 656
-
(75 221)
(73 364)
-
Other differences
36 191
(11 642)
-
47 833
2 607
-
Tax loss carried forward
45 198
31 438
-
13 760
8 350
-
Deferred tax assets/(liabilities)
131 482
99 767
(11 522)
43 237
43 084
(268)
Unrecognised deferred tax asset
(79 585)
(43 001)
-
(36 584)
715
-
Net deferred tax assets/(liabilities)
51 897
56 766
(11 522)
6 652
43 799
(268)
(NOK 1 000)
Net deferred tax assets/(liabilities)
2024
2023
Deferred tax assets
231 821
224 964
Deferred tax liabilities
179 924
218 311
Net deferred tax assets/(liabilities)
51 897
6 652
The majority of the unused tax losses and deductible temporary differences can be carried forward indefinitely. Deferred tax assets
are recognized as an asset where the Group expects to utilize these with expected profit in the coming years. The Group has decided
not to recognize a tax asset related to the deferred interest charges in most companies, as these may only be carried forward for 10
years and it is uncertain that these may be utilized. Other differences in the table above are mainly related to interest carry
forwards. The unrecognised deferred tax assets mainly relate to interest and tax losses carried forward.
130
NORLANDIA HEALTH & CARE GROUP AS
17. TRADE AND OTHER CURRENT LIABILITIES
(NOK 1 000)
2024
2023
Trade payables
245 021
347 000
Tax and social security payments
487 717
505 053
Other current liabilities
979 170
902 979
Total trade and other current liabilities, excluding borrowings,
classified as financial liabilities measured at amortised cost
1 711 908
1 755 033
Book values approximate to fair value at 31 December 2024 and 2023.
18. SUPPORTING STATEMENT OF CASH FLOWS
Non-current
loans and
borrowings
Current loans
and borrowings
Lease liabilities
Total
At 1 January 2023
2 115 610
71 388
5 527 482
7 714 480
Cash flows
390 652
(358 876)
(724 033)
(692 257)
Net amounts from purchase and sale of companies
27 404
648 487
895 001
1 570 892
Effects of foreign exchange
84 080
-
255 752
339 833
Interests accrued in period
-
20 601
-
20 601
Addition/remeasurements
-
-
1 107 712
1 107 712
At 31 December 2023
2 617 746
381 600
7 061 914
10 061 261
Cash flows
2 333 699
(2 135 183)
(855 270)
(656 754)
Net amounts from purchase and sale of companies
(55 285)
(26 971)
-
(82 256)
Effects of foreign exchange
16 172
19
135 747
151 938
Interests accrued in period
-
(2 624)
-
(2 624)
Addition/remeasurements
-
-
1 288 509
1 288 509
Reclassifications
(7 914)
-
7 914
-
Amortisation finance fees bond
21 760
-
-
21 760
Re-financed bond
(2 238 303)
2 238 303
-
-
At 31 December 2024
2 687 874
455 144
7 638 814
10 781 833
19. RETIREMENT BENEFITS
At 31.12.2024, a total of 18,143 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.
ANNUAL REPORT 2024
131
20. BUSINESS COMBINATIONS
Business combinations during 2024
The Group acquired control over the shares in some small Swedish companies during 2024, mainly real estate companies to be used
for the Preschool segment. None of these acquisitions were material for the Group, hence the purchase price allocation is not
presented for these.
In addition, the Group sold some companies both in Norway, Sweden and Finland during 2024, mainly within the Real Estate and
Preschool segments. In most cases, the building related to the sale was transferred back as a sale/leaseback transaction. Tot al gain
recognized in the Income Statement adjusted for the sale/lease back effect was NOK 80.4 million.
Acquisitions under common control during 2023
In Q1 23 NHC Group acquired control over Frösunda Omsorg AB (“Frösunda”) including its parent company Brado AB (“Brado”), which
was defined as a business combination under common control as the ultimate owners of both NHC Group and Brado Group are the
same.
Frösunda was founded in 1994 and have become a leading supplier of private care services in Sweden. The Group is a diversified care
operator within Disability, Personal Assistance and Elderly Care, which significantly strengthens NHC’s operations within the Individual
and Family and Care segments.
In addition, the Group acquired control over the shares in Agito Norway, Agito Sverige AB and Agito Nordic AB as of late December
2023. This transaction was also defined as a business combination under common control and resulted in a net effect booked against
retained earnings of NOK 31.4 million. As this transaction was not material for the Group, the carrying values are not shown below.
The table below shows the carrying values of assets and liabilities from Brado Group included in NHC Group from the acquisiti on date:
Allocation of purchase value of Brado AB Group
(NOK million)
Book value
Goodwill
1 108,4
Other intangible assets
6,5
Deferred tax asset
16,1
Property plant and equipment
21,5
Right-of-use-assets
838,8
Total non-current assets
1 991,2
Receivables
294,2
Cash and cash equivalents
129,9
Total current assets
424,1
Deferred tax liability
5,0
Non-current lease liability
766,3
Other non-current liabilities
19,1
Total non-current liabilities
790,3
Current interest-bearing debt
688,1
Current lease liability
128,7
Other current liabilities
339,3
Total non-current liabilities
1 156,2
Total net assets purchased
468,8
Total consideration*
511,6
Effect of business combination under common control, equity
(42,8)
*Part of the consideration was settled as a way of a seller’s credit of NOK 388.5 million which were transported to the ultimate parent
company Hospitality Invest AS, and then converted to equity in NHC as shown in the statement of equity. In addition, an earn-out
element of NOK 102 524 680 was recognized as a non-current liability at the time of the acquisition. The future payment is dependent
on the future performance of the Brado Group up until 2025.
132
NORLANDIA HEALTH & CARE GROUP AS
Other acquisitions during 2023
The Group acquired control over the shares in some small Norwegian companies during 2023, mainly preschools. None of these
acquisitions were material for the Group, hence the purchase price allocation is not presented for these.
21. TRANSACTIONS WITH RELATED PARTIES
In addition to the transactions described in note 11, the financial statements include the following transactions with relate d 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
Personalhuset Staffing Group AS Significant ownership interest from the same shareholders
Personalhuset Danmark A/S Significant ownership interest from the same shareholders
Personalhuset Staffing Group OY Significant ownership interest from the same shareholders
Norlandia Drift AB Significant ownership interest from the same shareholders
Clockwork Management AB Significant ownership interest from the same shareholders
Clockwork Stockholm AB Significant ownership interest from the same shareholders
Älvbäck Fastighets AB Significant ownership interest from the same shareholders
Abros Invest AB Significant ownership interest from the same shareholders
Otiga Group AS Significant ownership interest from the same shareholders
Otiga Group Management AS Significant ownership interest from the same shareholders
(NOK 1 000)
Transaction with related parties
2024
2023
Receivables from related parties
Hospitality Invest AS
1 999
-
Älvbäck Fastighets AB
3 792
4 048
Personalhuset Staffing Group AS
25 541
-
Personalhuset Danmark A/S
5 868
-
Otiga Group Management AS
15
5
Norlandia Drift AB
3 099
-
Liabilities to related parties
Hospitality Invest AS
8 235
29 833
Clockwork Management AB
874
-
Clockwork Stockholm AB
1 567
-
Abros Invest AB
68 881
102 525
Otiga Group AS
620
18 747
Personalhuset Staffing Group OY
1 418
-
Personalhuset Staffing Group AS
18 708
14 787
Interest received
Otiga Group AS
551
-
Älvbäck Fastighets AB
(17)
128
Rent of properties from related parties
Rent of properties from Pioneer Property Group ASA
7 473
7 517
Purchase of personnel services from related parties
Purchase of personnel services from Personalhuset Staffing Group AS
13 056
17 925
ANNUAL REPORT 2024
133
22. CASH AND CASH EQUIVALENTS
(NOK 1 000)
2024
2023
Cash related to payroll tax withholding
4 652
3 198
Unrestricted cash
435 577
342 786
Total cash and cash equivalents
440 229
345 984
23. DESCRIPTION OF INCURRENCE COVENANT AND FINANCIAL COVENANT
The senior secured bond issued in July 2024 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 times satisfy a minimum liquidity of NOK 125 million, including not utilized overdraft
credit facilities.
24. OTHER OPERATING EXPENSES
(NOK 1 000)
2024
2023
Lease expense and cost related to premises
(471 114)
(664 654)
Rental of office machinery
(43 767)
(43 282)
Software and operating materials
(369 234)
(334 799)
Professional fees
(131 719)
(123 749)
Office cost and travelling expenses
(147 800)
(147 387)
Sales and administrative cost
(49 837)
(40 286)
Other expenses
(95 555)
(60 594)
Other operating expenses
(1 309 025)
(1 414 750)
25. EVENTS AFTER THE REPORTING DATE
No known material events have occurred after the balance sheet date which would have had any effect on the reported figures as of
31 December 2024.
134
NORLANDIA HEALTH & CARE GROUP AS
Income statement
Norlandia Health & Care Group AS - for the year ended 31 December 2024
NOK 1 000
Note
2024
2023
Operating revenues
4 702
4 712
Personnel expenses
8
(2 853)
(2 578)
Other operating expenses
8
(13 019)
(17 150)
Operating profit/(loss)
(11 170)
(15 017)
Finance income
6, 10
199 631
335 320
Finance expense
10
(264 929)
(209 527)
Net foreign exchange gains/(losses)
10
(12 346)
(49 505)
Net financial items
(77 645)
76 289
Profit/(loss) before taxes
(88 815)
61 272
Income taxes
2
-
(13 991)
Net income/(loss)
(88 815)
47 281
Allocated to other equity
3
(88 815)
47 281
Total allocation of net income/(loss) for the period
(88 815)
47 281
ANNUAL REPORT 2024
135
Statement of financial position
Norlandia Health & Care Group AS - for the year ended 31 December 2024
(NOK 1 000)
Note
31.12.2024
31.12.2023
ASSETS
Investment in subsidiaries
5
2 213 920
2 165 402
Loans to group companies
6
1 192 268
1 073 279
Total non-current assets
3 406 188
3 238 681
Current group receivables
6
527 106
689 975
Other current receivables
522
127
Cash and cash equivalents
9
100 261
37 667
Total current assets
627 889
727 768
Total assets
4 034 077
3 966 450
EQUITY AND LIABILITIES
Share capital
3, 4
496 053
496 053
Share premium reserve
3
372 190
372 190
Other paid-in capital
3
10 005
10 005
Total restricted equity
878 248
878 248
Retained earnings
3
261 844
373 159
Total equity
1 140 092
1 251 407
Bond loans
7
2 299 688
2 220 187
Non-current non-interest-bearing debt
11
68 881
102 525
Total non-current liabilities
2 368 570
2 322 712
Trade payables
153
263
Current liabilities to group companies
6
75 354
48 679
Current overdraft facilities
7
392 807
289 687
Other current liabilities
57 101
53 702
Total current liabilities
525 415
392 331
Total liabilities
2 893 985
2 715 043
Total equity and liabilities
4 034 077
3 966 450
Oslo, 25 April 2025
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
Linda Hofstad Helleland
Member of the Board
Yngvar Tov Herbjørnssønn
CEO
136
NORLANDIA HEALTH & CARE GROUP AS
Cash flow statement
Norlandia Health & Care Group AS - for the year ended 31 December 2024
(NOK 1 000)
Note
2024
2023
Cash flow from operations
Profit/(loss) before taxes
(88 815)
61 272
Net financial items
7
77 645
(76 289)
Change in trade creditors
(110)
263
Paid in group contributions from subsidiaries
225 260
Effect of exchange fluctuations
(1 226)
Change in other provisions
12 971
40 079
Net cash flow from operations
225 725
25 325
Interest received
219 061
Net loans to subsidiaries
6
(118 989)
(569 778)
Net cash flow from investments
100 072
(569 778)
Cash flow from financing
Proceeds from current borrowings
103 120
289 687
Repayment of non-current borrowings
(25 000)
(106 245)
Repayment of current bond
(2 238 303)
-
Proceeds from non-current bonds
2 278 512
501 371
Interest received
7
-
93 976
Interest paid
7
(333 633)
(206 678)
Distributions to/from owner
3
(45 000)
-
Net group receivables
6
(2 899)
(26 410)
Net cash flow from financing
(263 203)
545 701
Net change in cash and cash equivalents
9
62 594
1 248
Cash and cash equivalents at the beginning of the period
9
37 667
36 419
Cash and cash equivalents at the end of the period
100 261
37 667
ANNUAL REPORT 2024
137
Notes to the financial statements 2024
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 losses and
interest carried forward for tax purposes at 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.
Interest deduction and tax losses carried forward are booked as a deferred tax asset to the extent it is expected to be utilised.
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.
138
NORLANDIA HEALTH & CARE GROUP AS
2. INCOME TAXES
(NOK 1 000)
2024
2023
This year's income taxes
Taxes payable
-
(13 991)
Change in deferred taxes
-
-
Income taxes
-
(13 991)
Taxable income:
Profit/(loss) before taxes
(88 815)
61 272
Permanent differences
(9 942)
429
Changes temporary differences
(18 811)
2 624
Provided intra-group contribution to subsidiaries
-
(64 324)
Taxable income before losses carried forward
(117 567)
0
Valuation allowance not booked as DTA
117 567
-
Taxable income:
-
0
1)
Recognised income related to group contribution for 2024 is NOK 76.7 million.
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
(88 815)
61 272
Calculated tax on profit/(loss) before taxes
19 539
(13 480)
Tax effect of permanent differences
2 187
94
Tax effect of not booked deferred tax asset
(21 726)
-
Tax on prior year's result
-
(606)
Total
0
(13 991)
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:
2024
2023
Other differences
31 077
12 266
Total
31 077
12 266
Accumulated loss to be brought forward
(117 567)
-
Interest cost carried forward
(180 950)
(180 950)
Unrecognized in deferred tax
267 441
168 684
Basis for calculation of deferred tax
0
0
Deferred tax asset, 22%
0
0
ANNUAL REPORT 2024
139
3. EQUITY
Other paid-in
capital
Retained
earnings
(NOK 1 000)
Share capital
Share premium
Total equity
Equity as of 01.01.2024
496 053
372 190
10 005
373 159
1 251 407
Distribution to owners
-
-
-
(22 500)
(22 500)
Net income/(loss)
-
-
-
(88 815)
(88 815)
Equity as of 31.12.2024
496 053
372 190
10 005
261 844
1 140 092
Other paid-in
capital
Retained
earnings
(NOK 1 000)
Share capital
Share premium
Total equity
Equity as of 01.01.2023
312 000
167 784
-
325 878
805 662
Capital increase
184 053
204 406
-
-
388 459
Group contribution from ultimate parent
-
-
10 005
10 005
Net income/(loss)
-
-
-
47 281
47 281
Equity as of 31.12.2023
496 053
372 190
10 005
373 159
1 251 407
4. SHARE CAPITAL AND SHAREHOLDERS
Share capital
2024
2024
2023
2023
(Amounts in NOK)
Number
NOK
Number
NOK
Ordinary shares of NOK 10.4 each
47 697 448
496 053 459
47 697 448
496 053 459
Shareholders
Each share gives the shareholder one voting right
Number
Ownership
Nominal Value
In balance
Hospitality Invest AS
46 266 524
97,00%
10,4
481 171 850
Stork Industries AS
715 462
1,50%
10,4
7 440 805
Cowry EV AS
715 462
1,50%
10,4
7 440 805
Total
47 697 448
100,00%
10,4
496 053 459
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 (through Hospitality Invest)
22 246 090
46,64%
Roger Adolfsen (through Hospitality Invest)
22 241 320
46,63%
Yngvar Tov Herbjørnssønn (through Cowry EV AS)
715 462
1,50%
140
NORLANDIA HEALTH & CARE GROUP AS
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%
434 022
38 622
969 160
Kidsa Drift AS
Bergen
100%
208 034
7 747
220 446
Hero Group AS
Stavanger
100%
162 168
40 893
155 051
Aberia AS
Oslo
100%
40 988
50 072
242 470
Care Properties AS
Oslo
100%
13 652
(8 099)
61 508
NHC Eiendom AS
Oslo
100%
10 170
(3 032)
17 344
NHC Services AS
Moss
100%
2 280
(4 911)
3 968
NH Europe Holding AS
Oslo
100%
58 400
3 024
58 400
Brado AB
Tanumshede, Sweden
100%
179 648
(8 586)
485 574
Balance sheet value 31.12.
2 213 920
6. TRANSACTIONS WITH RELATED PARTIES
(NOK 1 000)
2024
2023
Receivables from related parties
Group contribution
66 236
241 345
Current group receivables
460 870
448 630
Non-current loans to group companies
1 192 268
1 073 279
Total receivable related parties
1 719 374
1 763 254
Payables to related parties and subsidiaries
Group contribution
52 617
18 847
Current group liabilities to ultimate parent
8 208
29 833
Total payables related parties
60 825
48 679
Income from subsidiaries
Group contribution
76 732
241 345
Interest income
111 873
93 976
Interest received from related parties
188 605
335 320
ANNUAL REPORT 2024
141
7. INTEREST-BEARING DEBT
(NOK 1 000)
2024
2023
Non-current liabilities
Bond loans
2 330 765
2 234 253
Prepaid finance fee bond
(31 077)
(14 066)
Total non-current liabilities
2 299 688
2 220 187
Current liabilities
Current overdraft facilities
392 807
289 687
The bond is subject to Interest NIBOR/STIBOR +5.55%.
The bond consists of a NOK and SEK tranche with a total amount of NOK 2,300 million, and it has a minimum liquidity covenant of
NOK 125 million. The bond is due in July 2028.
The bond issue is split in a subsequent issue of NOK 1 250 million in the NOK-tranche, and a subsequent issue of SEK 1 050 million in
the SEK-tranche of the bond.
Balance sheet value of assets placed as security:
Subsidiaries
2 213 920
2 165 402
Total
2 213 920
2 165 402
In addition to its own subsidiaries, several of subsidiaries of the subsidiaries are placed as security for bond obligation.
8. PERSONNEL EXPENSES
(NOK 1 000)
2024
2023
Personnel expenses (including directors) comprise:
Wages and salaries
(1 805)
(1 693)
Social security contributions and similar taxes
(302)
(285)
Remuneration to Board of Directors
(600)
(600)
Total personnel expenses
(2 853)
(2 578)
Number of employees (FTE)
-
-
The company had no employees during 2024 and 2023. 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)
2024
2023
Audit
(1 265)
(868)
Attestation services
-
(87)
Other services
(906)
(597)
Total
(2 170)
(1 552)
9. CASH AND CASH EQUIVALENTS
(NOK 1 000)
2024
2023
Restricted cash
4 174
4 017
Unrestricted cash
96 087
33 650
Total cash and cash equivalents
100 261
37 667
142
NORLANDIA HEALTH & CARE GROUP AS
10. NET FINANCIAL ITEMS
(NOK 1000)
2024
2023
Interest income
112 932
93 976
Other financial income
9 967
-
Income from investment
76 732
241 345
Total finance income
199 631
335 320
Interest expenses
(260 852)
(206 678)
Other financial expenses
(4 078)
(2 849)
Total finance expense
(264 929)
(209 527)
Net foreign exchange gains/(losses)
(12 346)
(49 505)
Net financial items
(77 645)
76 289
11. OTHER NON-CURRENT LIABILITIES
In Q1 23 the company acquired Brado Group. The purchase price consisted of an earn-out element of NOK 102.5 million, where the
payment was dependent on the future performance of the Brado Group up until the end of 2025. Advance payments and subsequent
measurements of the contingent liability in 2024 have reduced the liability to NOK 68.9 million as of 31.12.2024.
12. EVENTS AFTER THE REPORTING DATE
No known material events have occurred after the balance sheet date which would have had any effect on the reported figures as of
31 December 2024.
Financial statements auditor's report
Sustainability auditor's report
APRIL 202
5
NHC Group
Norway