FINANCIAL STATEMENTS 31.12

FINANCIAL STATEMENTS

31.12.2020

03 REPORTOFTHEBOARDOFDIRECTORS

05 INCOMESTATEMENT

06 BALANCESHEET

07 CASHFLOWSTATEMENT

08 NOTESTOTHEFINANCIALSTATEMENTS

14 SIGNATURESANDAUDITOR’SREPORT

CONTENTS

3RAONordicOy|+358977381000|Tammasaarenkatu1,FI-00180Helsinki|[email protected]|CompanyID:FI17849377

REPORT OF THE BOARD OF DIRECTORS

1. DEVELOPMENT OF OPERATIONS DURING THE YEAR 2020

ThemainpartsofRAONordic’sbusinessoperationsin2020havebeenelectricityimportsfromRussiaandsellingittoNordicelectricitymarketinFinlandandinNorway.

In2020RAONordichasdeliveredtoNordicmarket in total2,8TWhofphysicalelectricity(7,3TWhin2019).ThegrosssalesfigurewasEUR100million(EUR322millionin2019)andtheoperatinglossisEUR0,9million(operatingprofitwasEUR3,9millionin2019).

2. MAJOR EVENTS AFTER THE BALANCE SHEET DATE

Therehavebeennoeventsafterthe31December2020thatmayinfluenceorhaveanymaterialimpactontheactivitiesofRAONordicoritsfinancialposition.

3. Estimate of the future development

ThebusinessstrategyofRAONordicOyhasnotbeenchangedduring2020.Thefocusofthecompanyisoncross-bordertradingandbusinessactivitiesrelatedtopowerinterchangeacrosstheborderconnectionsbetweenRussiaandNordiccountries.

4. Estimation of major risks

RAONordic’sbusinessriskscanbesummarizedasfollows:1. Operating risk:Operatingriskrefers to the inherentorgeneralbusinessriskofacompanysuchascountry risk, political risk and economic risk. General business risk refers to risks related to generalbusinessconcernsofregimestability,turmoil,corruption,financialtransfer,loandefault,directinvestmentandexportmarkets.Duetothenatureofthebusinessi.e.tradingelectricitywhichismainlypurchasedfromRussia,RAONordic´soperatingriskcanbeseenhigherthanmoderate.

2. Market risk: Marketriskistheriskthatisincurredduetouncertaintiesinthemarket.Uncertaintiesmayincludefluctuationsinrawmaterialandproductioncosts,demand,andpricing.Marketriskisastandardrisk borne by any firm involved inmarket driven transactions.Due to the fact thatRAONordic tradeselectricitywhichisrathervolatilecommodity,RAONordicsmarketriskcanbeseenhigh.

3. Product liability/Warranty risk: Productliabilityriskarisesfromthesaleofdefectiveproducts.Warrantyrisk refers to the risk that companies facewhencustomersmakeclaimsagainst them ifproductsand/orservicesarenotofferedaccordingtotheagreedupontermsandconditions.Duetothenatureoftheproductandthefactthattheelectricity

4. Bad debt risk: Baddebtriskistheriskthatasupplierwillnotreceivepaymentfromacustomer.WhentradingviaNordPoolSpotASandNASDAQOMXexchangesisconcerned,thebaddebtriskisregardedlow.AsRAONordic’sclientsarewellestablishedbusinesses,thebaddebtriskcanbeseenasmoderate.

5. Foreign exchange risk: Foreignexchangeriskarisesfromfluctuationsincurrencieswhereacompanybearscostsinonecurrencyandreceivesrevenueinadifferentcurrency.Duetothefactthatthephysicalelectricityisalmostpurelypurchasedandsoldineuroandfinancial tradingiscarriedoutineuro,RAONordic’sforeignexchangeriskcanbeseenasratherlow.

5. Development and research activities

RAONordicdoesnothavemajordevelopmentandresearchactivitiesduetothenatureofitsbusiness.

6. Valuation of financial instruments

ThefinancialinstrumentsarerecognizedatfairvalueaccordingtotheAccountingAct5:2a§.

Commodity risk hedging

Commodityriskhedginghasbeenappliedsincethefinancialyear2010.TheCompanyhaspartlyappliedhedgeaccountinginaccordancewithIFRS9asso-calledcashflowhedge.Achangeinthefairvalueofelectricityderivativehedgecontractproveneffectiveisentereddirectlyinshareholders’equityinfairval-uereserve,andonlyaftertherealizationoftheforecastelectricitypurchasesitisenteredintheincomestatementasanadjustmentofthehedgedpurchasesorsales.Asat31.12.2020thehedgereservefairvalueisEUR-3,2million.

Report of the Board of Directors

https://www.raonordic.com/

https://www.google.com/maps/place/Tammasaarenkatu+1,+00180+Helsinki/@60.1609522,24.9016604,599m/data=!3m2!1e3!4b1!4m5!3m4!1s0x46920a4f4239eb1f:0x39d4e097edff9b97!8m2!3d60.1609495!4d24.9038491

mailto:office%40raonordic.com?subject=

7. Key figures of the parent company RAO Nordic Oy business and its financial position. Personnel key figures of the parent company RAO Nordic Oy.

8. RAO Nordic Group

TherewerenochangesintheGroupstructurein2020.

9. Environmental issues

InthepasttheenvironmentalissueshavehadnomaterialimpactonthebusinessasRAONordicanditssubsidiarieshavebeenmainlyinvolvedintheenergytradingbusiness.ButbeingengagedinpurelytradingbusinessRAONordichascontinuouslylookedforpotentialinvestmentprojectsinEUcountries.NowadaysthedevelopmentstrategyoftheGroupemphasizesthegreenpowerprojectdevelopment,technologiesthatprovidethehighestenvironmentalbenefit.


10. Shares

Thesharecapitalissplitasfollows:

11. The proposal of the Board of Directors of the profit distribution

DistributableprofitisEUR42096750,77.Profitfortheyear2020isEUR6225448,48.BoardofDirectorsproposethatdividendEUR8000000,00willbepaidandremainingpartoftheprofitEUR34096750,77willbetransferredtoretainedearnings(loss)account.Nomaterialchangeshavetakenplacein thecompany’sfinancialpositionafter theendof thefinancialyear.Thecompany’sliquidityisgood,andintheviewoftheBoardofDirectorstheproposeddistributionofprofitsdoesnotendangerthefinancialstability

12. Board of Directors, Managing Directors and Auditors

ThefollowingpersonsincludedtotheBoardofthecompanyduring2020.

AlexandraPanina,ActingHeadoftheTradingUnitofPJSC“InterRAOTatianaZaltsman,HeadofCorporateEconomicPlanningDepartmentofPJSC“InterRAO”GennadyBinko,AdvisortotheChairmanoftheManagementBoardofPJSC“InterRAO”EvgenySarymsakov,HeadofInternationalLawDepartmentofPJSC“InterRAO”OlegZakataev,ManagingDirectorofRAONordicOy

AuditorhasbeenErnst&YoungOyandPasiPekkarinenasachiefauditor.

2020inthousandsofEUR



Staffcost 2684 2651 2259

Averagenumberofemployees 11 11 11

2020 2019

TheCompanyhasoneseriesofshares(1vote/share) 1305shares 1305shares

Allsharesareequallyentitledtodistributionofdividend

REPORT OF THE BOARD OF DIRECTORS




Netturnover 100047 322206 332508

Operatingprofit -871 3914 3871

Netprofit 6225 9711 6866

Operatingprofit% -0,9 1,2 1,2

Returnonequity% 15,5 17,9 18,7

Equitytoassetsratio% 60,9 86,1 54,8





INCOME STATEMENT

CurrencyEUR Note1.1.2020-31.12.2020

1.1.2019-31.12.2019

NET TURNOVER 3.1 100 046 560.45 322 201 734.41

Otheroperatingincome 0.00 4304.68

RawmaterialsandservicesRawmaterialsandconsumablesPurchasesduringthefinancialyear -97113573.55 -314458096.68

-97 113 573.55 -314 458 096.68

StaffexpensesWagesandsalaries

3.2-2683891.60 -2651160.34

SocialsecurityexpensesPensionexpenses -373978.26 -432681.87

Othersocialsecurityexpenses -69058.02 -63564.40

-3 126 927.88 -3 147 406.61

Depreciationandreductioninvalue 3.3

Depreciationaccordingtoplan -6578.52 -8771.36

-6 578.52 -8 771.36

Otheroperatingcharges 3.4 -670800.77 -677774.27

CurrencyEUR Note1.1.2020-31.12.2020

1.1.2019-31.12.2019

OPERATING PROFIT (LOSS) -871 320.27 3 913 990.17

FinancialincomeandexpensesIncomefromgroupundertakings 3.5 7140000.00 5916000.00

Otherinterestandfinancialincome

Fromothers 122970.33 177555.46

InterestandotherfinancialexpensesForgroupcompanies 3.5 -50814.20 -180712.33

Forothers -115387.38 -115656.28

7 096 768.75 5 797 186.85

PROFIT(LOSS)BEFOREAPPROPRIATIONSANDTAXES

6225448.48 9711177.02

PROFIT (LOSS) FOR THE FINANCIAL YEAR 6 225 448.48 9 711 177.02

Income statement





AssetsCurrencyEUR Note

31.12.2020 31.12.2019

NON-CURRENT ASSETS Tangibleassets 4.1

Machineryandequipment 19735.48 26314.00

Othertangibleassets 3800.00 3800.00

23 535.48 30 114.00

Investments 4.2

Holdingsingroupundertakings 34678980.12 34678980.12

34 678 980.12 34 678 980.12

34702515.60 34709094.12

CURRENT ASSETS Debtors

Long-term

Deferredtaxassets 794135.64 0.00

794135.64 0.00

Short-term 4.3

Tradedebtors 437701.46 1245778.47

Otherdebtors 14257806.74 11589769.18

Prepaymentsandaccruedincome 1892991.78 5712817.19

16 588 499.98 18 548 364.84

Cashinhandandatbanks 13932805.42 9910104.36

31315441.04 28458469.20

ASSETS TOTAL 66 017 956.64 63 167 563.32

LiabilitiesCurrencyEUR Note

31.12.2020 31.12.2019

CAPITAL AND RESERVES 5.1

Subscribedcapital

Subscribedcapital 1305000.00 1305000.00

1 305 000.00 1 305 000.00

Fairvaluereserve -3176542.56 5211302.74

Legalreserve 396.63 396.63

Retainedearnings(loss) 35871302.29 38166125.27

Profit(loss)forthefinancialyear 6225448.48 9711177.02

40 225 604.84 54 394 001.66

CREDITORS

Short-term

Tradecreditors 1834743.74 2026281.29

Amountsowedtogroupundertakings 5.2 22000371.58 5000000.00

Deferredtaxliabilities 0.00 1302825.68

Othercreditors 69816.84 241628.34

Accrualsanddeferredincome 5.3 1887419.64 202826.35

25 792 351.80 8 773 561.66

25792351.80 8773561.66

LIABILITIES TOTAL 66 017 956.64 63 167 563.32

Balance sheetBALANCE SHEET





CASH FLOW STATEMENT

Cash flow statement

CurrencyTEUR1.1.2020-31.12.2020

1.1.2019-31.12.2019

Profitbeforetax 6225 9711

Depreciation 7 9

Financialitems -7097 -5797

-865 3 923

Decreaseinreceivable 1166 2361

Decreaseinpayable 18 -1438

Increaseinfairvaluehedgereserve -8388 8022

-8 069 12 868

Interestpaid -138 -291

Interestreceived 0 0

Dividendsreceived 7140 5916

Incometaxpaid 0 0

Net cash from operating -1 067 18 493

Short-termborrowings 22000 25000

Loanrepaid -5000 -45000

Dividendspaid -12006 0

Defaultfundloss/profit 123 177

Exchangerate -27 -10

Net cash from financial 5 090 -19 833

CurrencyEUR1.1.2020-31.12.2020

1.1.2019-31.12.2019

Net increase in cash 4 023 -1 340

Balance 31.12.2019 9 910 11 250

Balance 31.12.2020 13 933 9 910





Notes to the preparation of the financial statements:

Valuation and periodization principles and methods:

Thenon-currentassetshavebeenstatedatcostandinventoriesarestatedatthelowerofcostandrealisablevalueby following thefifoprincipleand the lowestvalueprincipleof the5paragraph6§1moment.

Theacquisitioncostofthenon-currentpropertywillbedepreciatedaccordingtoplan.Thedepreciationplanisdeterminedbyexperience.Theremainderoftheacquisitioncostandresidualvaluewillbedepreciatedduringtheestimatedusefullife. Derivativesareinitiallyrecognisedatfairvalueonthedateaderivativecontractisenteredintoandaresubsequentlyremeasuredattheirfairvalue.Thefairvalueofelectricityderivativesisbasedonquotedelectricitymarketpricesattheclosingdate.Fairvaluesofoptionsaredeterminedbyusingoptionvalu-ationmodels.Themethodofrecognisingtheresultinggainorlossdependsonwhetherthederivativeisdesignatedasahedginginstrument.

Cash flow hedge

Theeffectiveportionofchangesinthefairvalueofelectricityderivativesthataredesignatedandqualifyascashflowhedgesarerecognisedinequity.Thegainorlossrelatingtotheineffectiveportionisrecognisedimmediatelyintheincomestatement.

Derivatives that are not accounted for under hedge accounting

Fairvaluechangesoftheseelectricityderivativeinstrumentsarerecognizedintheincomestatement.

Commodity risk hedging

Commodityriskhedginghasbeenappliedduringthefinancialyear2010.ThecompanyhaspartlyappliedhedgeaccountinginaccordancewithIFRS9asso-calledcashflowhedge.

Derivatives

RAONordictradesderivativesforthehedgingofsellingpricesofphysicalimportfromRussia.ThehedgereservewasvaluedatthenetamountofEUR-3176542,56asat31.12.2020.

Deferred tax

Thedeferredtaxamountisrecognisedonthefairvalueofgrosshedgereserveacknowledgedtobeeffec-tiveattheendofeachreportingperiod.ThetaxrateisFinnishcorporateincometaxrate20%.

Notes to the company which is member of the Group:

Mother company:

PJSC“INTERRAOUES”,BolshayaPirogovskayastr.,27/3,119435Moscow,RussiaistheMotherCompanyofRAONordicOy.

ThecopyoftheGroupFinancialStatementoftheMotherCompanyisavailableattheabovementionedaddress.

RAONordicOyhasnotpreparedtheGroupFinancialStatementduetotheaccountinglaw(changed30.12.2015)chapter6§1.5.

Notes to the financial statements of 31.12.2020NOTES TO THE FINANCIAL STATEMENTS






3.1 Notes to the revenue:

3.2 Notes to the personnel:

3.3 The basis of the depreciation according to plan and changes:

3.4 Other operating charges

3.5 Total income and costs from the investments in the group and affiliated companies:

Revenuesbysegmentofbusiness: 31.12.2020

31.12.2019

Electricitytrading 80360198.75 302292748.22

Profitfromfinancialtrading 19686361.70 19908986.19

100 046 560.45 322 201 734.41

Numberofemployees: 31.12.2020

31.12.2019

Numberofpersonsthecompanyhasemployedduringthefinancialyearontheaverage.

11 11

Item:Useful

lifeyearsDepreciationpercentage

Depreciationmethod

Machineryandequip. 25% residualvaluedepr.

Revenuesbygeographicalmarket: 31.12.2020

31.12.2019

Russia 201029.75

Finland 110598.15 183187.08

Norway 80928306.15 302985063.46

Sweden 18806626.40 19033483.87

100 046 560.45 322 201 734.41

31.12.2020

31.12.2019

Optionalsocialexpenses 46992.22 79705.30

Expensesofpremises 87418.49 92733.24

Expensesofuseofsoftware,machineryandequipment 139182.85 128971.08

Travelexpenses 13494.05 18011.82

Entertainmentcost 4416.73 13558.77

Marketingexpenses 4189.32 5392.27

Administrationexpenses 375107.11 339401.79

670 800.77 677 774.27

31.12.2020

31.12.2019

Financialincome 7140000.00 5916000.00

Interestincome 0.00 0.00

Interestexpenses -50814.20 -180712.33

7 089 185.80 5 735 287.67

Staffcosts: 31.12.2020

31.12.2019

Wagesandsalaries 2683891.60 2651160.34

Pensioncosts 373978.26 432681.87

Othersocialsecuritycosts 69058.02 63564.40

Total 3 126 927.88 3 147 406.61

Notes to the income statement:





Notes to the balance sheet assets:

TangibleassetsMachineryandequipment

Acquisitioncost1.1.2020 588199.78

Additions 0.00

Disposals 0.00

Acquisition cost 31.12.2020 588 199.78

Accdepratthebeginningofthefiscalyear 561885.78

Depreciationsofthefiscalyear 6578.52

Depreciationsofthedisposeditems 0.00

Accumulated Depreciation at the end of the fiscal year 568 464.30

Costattheendofthefiscalyear 588199.78

Accdeprattheendofthefiscalyear -568464.30

Book value 31.12.2020 19 735.48

Book value 31.12.2019 26 314.00

31.12.2020

31.12.2019

Pieceofart 3800.00 3800.00

Expensedsmallacquisitions 9831.31 9759.73

Thetotalresidualvalueofthemachineryandequipment: 31.12.2020

31.12.2019

Machineryandequipmentinbalancesheetintotal, 19735.48 26314.00

ofwhichtheresidualvalueis: 19735.48 26314.00

Thedepreciationsofthenon-currentassetsandothertangibleassets: 31.12.2020

31.12.2019

Machineryandequipment 6578.52 8771.36

Otherintangibleassets 0.00 0.00

Depreciationstotal 6 578.52 8 771.36

4.2 Investments

4.1 Intangible and tangible assets

Groupcompanies


Disposals


Reductioninvalue

Book value 31.12.2020 34 678 980.12

31.12.2020 31.12.2019

Nameofsubsidiary UABInterRAOLietuva UABInterRAOLietuva

Shareholding% 51.00% 51.00%

Equity 15412780.00 20716126.00

Netresultofthereportingperiod 11043340.00 13633369.00

NOTES TO THE FINANCIAL STATEMENTS

Notes to the financial statements of 31.12.2020





31.12.2020

31.12.2019

Nasdaqfuturessettlement 0,00 2231025,30

VATreceivables 416510,96 457426,73

Securitydeposits 13841295,78 8901317,15

14 257 806,74 11 589 769,18

31.12.2020

31.12.2019

Accruedinterestreceivables 0.00 0.00

Hedgingassets 0.00 302891.25

Prepayments 1892991.78 5409925.94

Otherreceivables 0.00 0.00

1 892 991.78 5 712 817.19

31.12.2020

31.12.2019

Electricitytradingreceivable 1892991,78 5409925,94

Loanreceivables 0,00 0,00

Accruedincome 0,00 0,00

1 892 991,78 5 409 925,94

4.3 Receivables from group companies


Notes to the hedged financial instrumentsDerivatives

Fairvalue31.12

AdjusmentsinIncomeStatement

Adjustmentsinfairvaluereserve

Electricityderivatives(1000e) -451 -451

Thefairvaluereserveinequityon31December2020alsoincludessettlementsofthenetvalueofelectricity futurescontracts included inhedgeaccounting totalingEUR-3.5million (31December2019:EUR6.2million).

Other debtors:

The material items in accrued short-term receivables:

Fairvalue31.12

AdjusmentsinIncomeStatement

Adjustmentsinfairvaluereserve

Electricityderivatives(1000e) 303 303

Electricity derivatives 2020

Electricity derivatives 2019





Distributableprofit 31.12.2020

31.12.2019

Retainedearnings 35871302.29 38166125.27

Profit/lossforthefiscalyear 6225448.48 9711177.02

Total 42 096 750.77 47 877 302.29

5.1 Notes to the liabilities:

Equity: 31.12.2020

31.12.2019

Subscribedcapital

Sharecapital1.1 1305000.00 1305000.00

Share capital 31.12 1 305 000.00 1 305 000.00

Legalreserve1.1 396.63 396.63

Legal reserve 31.12 396.63 396.63

Subscribed capital at the end of the fiscal year 1 305 396.63 1 305 396.63

Fair value reserve 1.1 5211302.74 -2810619.07

Additions 8021921.81

Decrease -8387845.30

Fair value reserve 31.12 -3 176 542.56 5 211 302.74

Retainedearnings1.1 47877302.29 38166125.27

Profitdistribution -12006000.00

Retainedearnings31.12 35871302.29 38166125.27

Profit/lossforthefiscalyear 6225448.48 9711177.02

Retained earnings at the end of the fiscal year 42 096 750.77 47 877 302.29

Total equity 40 225 604.84 54 394 001.66


31.12.2020

31.12.2019

Purchasepayables 0.00 0.00

Accruals 0.00 0.00

Loans 22000000.00 5000000.00

22 000 000.00 5 000 000.00

5.2 Amounts owed to group undertakings






31.12.2020

31.12.2019

Hedgingliabilities 1710566.50 0.00

Salaryaccrualsincludingsocialcosts 176853.14 202826.35

Total 1 887 419.64 202 826.35

31.12.2020

31.12.2019

VATliability 23178.06 180095.26

Payrolltaxliabilities 46638.78 61533.08

Total 69 816.84 241 628.34

Liabilities 31.12.2020

31.12.2019

Rentofpremises Rentofpremises

Tobepaidduringthenextfiscalyear 45100.02 44873.54

Tobepaidwithin2-5years 0.00 0.00

45 100.02 44 873.54

5.3 The material items in accrued payables

Rentofmachineryandit-programs

Rentofmachineryandit-programs

Tobepaidduringthenextfiscalyear 31695.11 32424.26

Tobepaidwithin2-5years 35146.56 17077.40

66 841.67 49 501.67

Total 111 941.68 94 375.21

TheMembersoftheBoardandtheManagingDirectordonothaveaseparatepensionplan.TheywillretireaccordingtothepensionlawofFinland.

Salariesandothercompensationofmanagingdirectorandmembersoftheboard: 31.12.2020

31.12.2019

976915.00 937820.97

Auditors’fee: 31.12.2020

31.12.2019

Feeforannualaudit,Ernst&YoungOyCharteredAccountants

16400.00 33050.00

Receiptcode Storage

BankreceiptsNordea 11 paperreceiptsinfolders

Salesreceipts 30 paperreceiptsinfolders

Purchasereceipts 55 paperreceiptsinfolders

AutomaticVAT-postings 99 paperreceiptsinfolders

Memorandums 90 paperreceiptsinfolders

List of book-keeping files and storage method:

Dailybook ADP-reports

Generalledger ADP-reports

Accountsreceivable ADP-subaccounting

Accountspayable ADP-subaccounting

Payrollaccounting ADP-subaccounting

Financialstatements Bindedbook

SpecificationstoFinancialStatements Bindedbook





Report on the Audit of Financial Statements

TotheAnnualGeneralMeetingofRAONordicOy

Opinion

WehaveauditedthefinancialstatementsofRAONordicOy(businessidentitycode1784937-7)fortheyearended31December,2020.Thefinancialstatementscomprisethebalancesheet,incomestatement,cashflowstatementandnotes.

Inouropinion,thefinancialstatementsgiveatrueandfairviewofthecompany’sfinancialperformanceandfinancialpositioninaccordancewiththelawsandregulationsgoverningthepreparationoffinancialstatementsinFinlandandcomplywithstatutoryrequirements.

Basis for Opinion

WeconductedourauditinaccordancewithgoodauditingpracticeinFinland.OurresponsibilitiesundergoodauditingpracticearefurtherdescribedintheAuditor’sResponsibilitiesfortheAuditofFinancialStatementssectionofourreport.WeareindependentofthecompanyinaccordancewiththeethicalrequirementsthatareapplicableinFinlandandarerelevanttoouraudit,andwehavefulfilledourotherethicalresponsibilitiesinaccordancewiththeserequirements.Webelievethattheauditevidencewehaveobtainedissufficientandappropriatetoprovideabasisforouropinion.

Responsibilities of the Board of Directors and the Managing Director for the Financial Statements

TheBoardofDirectorsandtheManagingDirectorareresponsibleforthepreparationoffinancialstatementsthatgiveatrueandfairviewinaccordancewiththelawsandregulationsgoverningthepreparationof financialstatementsinFinlandandcomplywithstatutoryrequirements.TheBoardofDirectorsandtheManagingDirectorarealsoresponsibleforsuchinternalcontrolastheydetermineisnecessarytoenablethepreparationoffinancialstatementsthatarefreefrommaterialmisstatement,whetherduetofraudorerror.

Inpreparingthefinancialstatements,theBoardofDirectorsandtheManagingDirectorareresponsibleforassessingthecompany’sabilitytocontinueasgoingconcern,disclosing,asapplicable,mattersrelatingtogoingconcernandusingthegoingconcembasisofaccounting.Thefinancialstatementsarepreparedusingthegoingconcernbasisofaccountingunlessthereisanintentiontoliquidatethecompanyorceaseoperations,orthereisnorealisticalternativebuttodoso.

Auditor’s Responsibilities for the Audit of Financial Statements

Ourobjectivesaretoobtainreasonableassuranceonwhetherthefinancialstatementsasawholearefreefrommaterialmisstatement,whetherduetofraudorerror,andtoissueanauditor’sreportthatincludesouropinion.Reasonableassuranceisahighlevelofassurance,butisnotaguaranteethatanauditconductedinaccordancewithgoodauditingpracticewillalwaysdetectamaterialmisstatementwhenitexists.Misstatementscanarisefromfraudorerrorandareconsideredmaterialif,individuallyorinaggregate,theycouldreasonablybeexpectedtoinfluencetheeconomicdecisionsofuserstakenonthebasisofthefinancialstatements.

Aspartofanauditinaccordancewithgoodauditingpractice,weexerciseprofessionaljudgmentandmaintainprofessionalskepticismthroughouttheaudit.Wealso:

• Identifyandassesstherisksofmaterialmisstatementofthefinancialstatements,whetherduetofraudorerror,designandperformauditproceduresresponsivetothoserisks,andobtainauditevidencethatissufficientandappropriatetoprovideabasisforouropinion.Theriskofnotdetectingamaterialmisstatementresultingfromfraudishigherthanforoneresultingfromerror,asfraudmayinvolvecollusion,forgery,intentionalomissions,misrepresentations,ortheoverrideofinternalcontrol.

• Obtainanunderstandingofinternalcontrolrelevanttotheauditinordertodesignauditproceduresthatareappropriateinthecircumstances,butnotforthepurposeofexpressinganopinionontheeffectivenessofthecompany’sinternalcontrol.

• Evaluatetheappropriatenessofaccountingpoliciesusedandthereasonablenessofaccountingestimatesandrelateddisclosuresmadebymanagement.

• ConcludeontheappropriatenessoftheBoardofDirectors’andtheManagingDirector’suseofthegoingconcernbasisofaccountingandbasedontheauditevidenceobtained,whetheramaterialuncertaintyexistsrelatedtoeventsorconditionsthatmaycastsignificantdoubtonthecompany’sabilitytocontinueasagoingconcern.Ifweconcludethatamaterialuncertaintyexists,wearerequiredtodrawattentioninourauditor’sreporttotherelateddisclosuresinthefinancialstatementsor,ifsuchdisclosuresareinadequate,tomodifyouropinion.Ourconclusionsarebasedontheauditevidenceobtaineduptothedateofourauditor’sreport.However,futureeventsorconditionsmaycausethecompanytoceasetocontinueasagoingconcern.

• Evaluatetheoverallpresentation,structureandcontentofthefinancialstatements,includingthedisclosures,andwhetherthefinancialstatementsrepresenttheunderlyingtransactionsandeventssothatthefinancialstatementsgiveatrueandfairview.

Auditor’s report (Translation of the Finnish original)AUDITOR’S REPORT





AUDITOR’S REPORT

Wecommunicatewiththosechargedwithgovernanceregarding,amongothermatters,theplannedscopeandtimingoftheauditandsignificantauditfindings,includinganysignificantdeficienciesininternalcontrolthatweidentifyduringouraudit.

Other reporting requirements

Otherinformation

TheBoardofDirectorsandtheManagingDirectorareresponsiblefortheotherinformation.Theother informationcomprisesthereportoftheBoardofDirectors.

Ouropiniononthefinancialstatementsdoesnotcovertheotherinformation.

Inconnectionwithourauditofthefinancialstatements,ourresponsibilityistoreadtheotherinformationand,indoingso,considerwhethertheotherinformationismateriallyinconsistentwiththefinancialstatementsorourknowledgeobtainedintheaudit,orotherwiseappearstobemateriallymisstated.OurresponsibilityalsoincludesconsideringwhetherthereportoftheBoardofDirectorshasbeenpreparedinaccordancewiththeapplicablelawsandregulations.

Inouropinion,theinformationinthereportoftheBoardofDirectorsisconsistentwiththeinformationinthefinancialstatementsandthereportoftheBoardofDirectorshasbeenpreparedinaccordancewiththeapplicablelawsandregulations.

If,basedontheworkwehaveperformed,weconcludethatthereisamaterialmisstatementofthereportoftheBoardofDirectors,wearerequiredtoreportthatfact.Wehavenothingtoreportinthisregard.

Helsinki8.2.2021

Ernst&YoungOyAuthorizedPublicAccountantFirm

PASI PEKKARINEN

PasiPekkarinenAuthorizedPublicAccountant




RAO Nordic OyTammasaarenkatu 100180 HELSINKIRegistration number: 1784937-7

Editor: Evgenia KhashchanskayaDesign: idmgroup.fi

https://www.idmgroup.fi/

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FINANCIAL STATEMENTS 31.12