Betolar Plc: Transition to IFRS reporting
Betolar Plc
Company release
21 December 2022 at 4:30 PM EET
Betolar Plc: Transition to IFRS reporting
The Finnish materials technology company Betolar Plc (the parent company or the company, together with its subsidiaries Betolar or the Group) will transition from the Finnish Accounting Standards (FAS) to International Financial Reporting Standards (IFRS). Betolar estimates that the transition to IFRS reporting will support the company’s growth strategy, increase the comparability of financial figures and increase the interest of international investors in the company. The IFRS transition date was 1 January 2021.
Betolar has prepared the following unaudited IFRS financial information to provide investors with comparative information about the Group’s comprehensive income statement and consolidated balance sheet for the financial period ending 31 December 2021. In addition, the consolidated balance sheet of the IFRS transition date 1 January 2021, is presented. The key differences resulting from the transition to IFRS reporting compared to FAS, the effects of the IFRS transition and the applicable reliefs are described in the transition report attached to this release.
The most significant effects caused by the transition to IFRS reporting:
- IFRS 16 Leases – In accordance with IFRS, a right-of-use asset and a lease liability will be recorded on the balance sheet. These increase the balance sheet's long-term assets and financial liabilities. The increase in financial liabilities affects both the net debt and the equity ratio. According to FAS, rental payments are recorded in other business expenses for the rental period, and rental payments are at the end of the financial year presented as off-balance sheet liabilities. In the IFRS financial statements, rental expenses are adjusted from other business expenses to amortization of lease debt and interest expense. Depreciation of right-of-use assets recorded in the balance sheet is recorded in the income statement. These have an impact on the EBITDA indicator.
- IFRS 2 Share-based payments – The Group has option-based incentive and commitment plans, aimed to encourage the management and key persons and employees to work to increase shareholder value in the long term. In the FAS financial statements, option programs are not recorded in the income statement. According to IFRS, the fair value of stock options must be amortized as an expense in the income statement during the period in which the stock options are created. This has an impact on the EBITDA indicator.
- IAS 32 Listing costs – According to IFRS, transaction costs arising from equity transactions (e.g. initial public offering) should be treated as a reduction of equity in accounting to the extent that they are additional costs that directly result from equity transactions and which would otherwise have been avoided. The Group has transaction costs that are directly related to the issuance of new shares. In accordance with FAS, these are recorded as expenses in the income statement. With the application of IFRS, the expenses have been recorded to reserve for invested unrestricted equity.
Key Figures
| (EUR thousand, unless otherwise specified) | 1.1.2021-31.12.2021 |
| Financial indicators (IFRS) | |
| Net sales | 10 |
| Gross margin1 | 7 |
| EBITDA1 | -4 777 |
| Operating profit (loss) | -5 513 |
| Profit before appropriations and taxes | -5 587 |
| Profit for the financial period | -4 124 |
| Earnings per share, adjusted and unadjusted for dilution, EUR1,2 | -0.39 |
| Cash and cash equivalents (at the end of the period) | 37 355 |
| Operational indicators | |
| Personnel (average number during the financial period) | 23 |
| Number of pilot customers1 | 12 |
- Betolar uses certain alternative performance measures (gross margin, EBITDA, EPS and number of pilot customers) as indicators of operational profitability and performance. The definitions and calculation formulas of these measures are enclosed to the report.
- The weighted average used in the calculation of earnings per share is as follows: 31 December 2021: 10,448,522 shares.
The definitions of the key figures are presented in the attachment of this release.
During the first quarter of 2023, Betolar will publish an annual report with IFRS financial statements for the financial period ending 31 December 2022, with IFRS comparison figures for the financial period ending 31 December 2021 and the opening balance sheet of 1 January 2021.
For more information about historical financial information prepared in accordance with FAS, please visit Betolar’s website www.betolar.com/investors
Betolar Plc
Further enquiries
Riikka Ylikoski, CFO, Betolar Plc, +358 40 828 2632
Certified Adviser:
Aktia Alexander Corporate Finance Oy, +358 50 520 4098
About Betolar
Betolar Plc is a Finnish materials technology company that offers the production of sustainable and low-carbon concrete with the Geoprime® solution. The solution converts several previously unused, massive industrial by-products into a cement substitute.
Betolar's innovation can significantly reduce CO2 emissions compared to traditional cement-based concrete production by optimizing existing manufacturing processes. Betolar's mission is to reduce CO2 emissions and the use of virgin natural resources in construction.
Betolar was founded in 2016 and is headquartered in Kannonkoski, Finland. For more information, visit www.betolar.com/