ANNUAL REPORT
2024
eQ in 2024 3
Key Figures 4
eQ in Brief 5
CEO’s Review 6
Business Areas 8
Asset Management 9
Corporate Finance 12
Investments 13
Sustainability 14
Report by the Board of Directors 32
Consolidated Key Ratios 40
Contents
Financial Statements 2024 43
Auditor’s Report 74
Auditor’s report on the ESEF financial statements 77
Corporate Governance 78
Corporate Governance Statement 79
Remuneration Report 85
Board of Directors 88
Management Team 90
Performace Fees of Private Equity Funds 92
Information about Capital Adequancy 94
Information to the Shareholders 97
2
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Key Figures
NET REVENUE
.
MEUR
: . MEUR
EARNINGS PER SHARE
.
EUR
. EUR
COST/INCOME RATIO
.%
.%
DIVIDEND
PER SHARE
.
. EUR
MARKET
CAP
.
MEUR
. MEUR
NUMBER OF
SHAREHOLDERS
,
,
NUMBER
OF PERSONNEL
ASSETS UNDER
MANAGEMENT WITHOUT
REPORTING SERVICES
.
EUR BILLION
. EUR BN
AND IN TOTAL
.
EUR BILLION
. EUR BN
OPERATING PROFIT
.
MEUR
. MEUR
4
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
eQ in Brief
eQ is a Finnish group of companies that
concentrates on asset management and corporate
finance operations. The share of the parent
company eQ Plc is listed on Nasdaq Helsinki.
The Group offers its clients services related to
mutual-, real estate- and private equity funds,
discretionary asset management, investment
insurance policies, and a large range of mutual
funds offered by international partners. The asset
management clients are institutional investors and
private individuals. In addition, Advium Corporate
Finance Ltd, which is part of the Group, offers
services related to mergers and acquisitions, real
estate transactions and equity capital markets.
80
70
60
50
40
30
20
10
0
2024202320222021202020192018201720162015
NET REVENUE DEVELOPMENT,
MEUR
Asset Management Corporate Finance
Investments Group Administration Group
30.5
35.4
40.7
45.4
50.6
56.7
78.9
77.8
70.9
65.6
60
50
40
30
20
10
0
2024202320222021202020192018201720162015
OPERATING PROFIT DEVELOPMENT,
MEUR
Asset Management Corporate Finance
Investments Group Administration Group
13.2
16.2
20.1
22.4
26.3
30.8
47.7
45.7
39.7
34.5
5eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
CEO’S REVIEW
eQ Group’s result for the financial period
fell in the challenging operating environment
eQ’s result for the financial period fell in the challenging operating environment.
The net revenue of the Group during the financial period was EUR 65.6 million
and the operating profit was EUR 34.5 million. Operating profit fell by 13 per
cent from the previous year. Profit for the financial period was EUR 27.4 million
and earnings per share 66 cents. The Group’s cost/income ratio remained at an
excellent level of 47.4%.
Last year, eQ Asset Management’s net revenue fell by 13 per cent and operating
profit by 19 per cent to EUR 33.7 million. Real estate asset management fees
fell, while traditional and Private Equity asset management fee income rose.
The cost/income ratio for the asset management segment was 42.3%. Advium’s
net revenue increased by 34 per cent from the previous year and amounted
to EUR 5.3 million. The operating profit was EUR 1.5 million compared to EUR
0.7 million in the previous year. The business operations of the Investments
segment consist of private equity and real estate fund investments made from
eQ Group’s own balance sheet. The Investment segment’s result rose from
2023. The segment’s operating profit was EUR 1.1 million compared to a loss of
EUR 0.6 million in the previous year.
eQ Asset Management is one of the leading
institutional asset managers in Finland
According to the survey SFR conducted last year, eQ is the second most used
institutional asset manager in Finland. 68 per cent of respondents say they
use eQ’s services. eQ’s usage increased in the 2024 survey. In alternative
investments – real estate and private equity in eQ’s case – eQ was by far the
most used asset manager. eQ’s quality rating declined in 2024, which the study
attributes primarily to weaker investment returns in the real estate segment.
Our goal is to rise back to the forefront of quality. Every year, SFR interviews
around 100 of the largest Finnish institutional investors.
As for sales, the year 2024 was good in private equity asset management.
In 2024, Private Equity funds were raised to the eQ PE XVI North fund
investing in Northern Europe and the eQ PE SF V and eQ VC II funds. We raised
over EUR 360 million in these three funds, which is an excellent result. In
addition, returns on eQ PE funds remained excellent. In Private Equity asset
management, eQ raises funds in alternating years for funds investing in Europe
and the US, and in 2025 it will be the turn of a US fund again.
For traditional asset management, in 2024 assets under management increased
by almost EUR 300 million, or 8 per cent, compared to the end of 2023. Of the
traditional asset management funds that eQ manages itself, 62 per cent gave
a better return than its benchmark index over the past three years.
In real estate asset management, the challenging market situation contributed
to a decrease of over EUR 200 million in assets under management. During
2023 and 2024, eQ’s real estate fund returns have been negatively affected by
the rise in real estate yields and financing costs due to the sharp rise in interest
The Group’s cost/
income ratio is still at
an outstanding 47.4% level.
6eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
rates. As a rule, yield requirements did not rise any further in the final quarter of
the year and interest rates have already fallen significantly.
We invest in sustainability
Sustainability has long been one of the pillars of our operations and it
is part of everything we do. We, the eQ Group, act in a responsible and
sustainable manner and integrate this work systematically and in practice
to eQ Asset Management’s investment operations and Advium’s corporate
finance operations.
Responsibility is a key part of our investment activities. We received excellent
results, including in the PRI assessment, where we outperformed our peer group
and received full five stars in five sections. In addition, in the GRESB survey
of the real estate sector, both our real estate funds performed better than
both the overall respondents and the eQ peer group averages. eQ Community
Properties even came out on top of its peer group. We are committed to
continuously improving our responsibility in cooperation with our customers.
We want to offer our customers concrete solutions that support their needs
also from a sustainability perspective, now and in the future.
The eQ Group’s Sustainability Report, published now for the eighth time, is part
of our Annual Report.
Advium’s profit grew
In 2024, the value of mergers and acquicitions worldwide remained at the
same level as in 2023, but below the long-term average. There were slightly
fewer mergers and acquisitions in Finland in 2024 than in 2023. Real estate
transactions in Finland remained very low during 2024, and even below the low
level of the previous year. The main factors behind the low activity were high
interest rates and poor access to finance.
During 2024, Advium acted as advisor in four published M&A transactions and
one published real estate transaction.
Consolidated balance sheet and dividend proposal
The group has no interest-bearing loans and a strong balance sheet. The Board
of Directors has decided to propose to the Annual General Meeting that a
dividend of EUR 0.66 per share be paid, which corresponds to the Group’s
earnings per share for the previous year. The dividend is proposed to be paid in
two instalments.
Thank you to customers, personnel, and partners
I would like to thank all our customers for their excellent cooperation and trust
in our services.
Market conditions have been challenging for eQ for a couple of years, including
last year. Our personnel are experienced, professional, very committed, and
motivated. In addition, the level of job satisfaction has remained extremely
high, just like in recent years. On a scale of 1 to 5, personnel rate job
satisfaction and well-being at 4.3, which is an excellent level. I would like to
thank all of our personnel for a job well done in 2024.
In addition to our customers and staff, a warm thank you also to all of eQ’s
partners for their good cooperation.
Changes in eQ’s management
Mikko Koskimies, CEO of eQ Plc and Managing Director of eQ Asset
Management Ltd, left these positions at the end of October 2024 due to
a serious illness. Koskimies passed away in November. Mikko was a valued
colleague and a dear friend. We will all miss Mikko.
Tero Estovirta, deputy Managing Director of eQ Asset Management Ltd, was
appointed Managing Director of eQ Asset Management Ltd and member of the
eQ Group’s management team at the end of October.
In 2024, Jacob af Forselles was appointed as the Managing Director of Advium
Corporate Finance Ltd and as a member to eQ Group’s Management Team. He
started in his position at the beginning of August.
2025 outlook
The difficult market situation in the Finnish real estate market continued in
2024. Our assessment is that the real estate market levelled off towards the
end of the year and that yield requirements generally stopped rising in the final
quarter of the year. However, market liquidity remained at a very low level.
The real estate market in general remains challenging. In several Finnish open-
ended real estate funds, redemptions have not been completed on time and
investors have had to wait for their money. Funds for redemption payments are
mainly raised by selling properties and, as the transaction market remains quiet,
redemption payments have had to be postponed. Lower interest rates and
economic growth are having a positive impact on the real estate market. The
market expects interest rates in Europe to continue to fall and the economy to
gradually start to recover. If these estimates materialise, we expect 2025 to be
a better year for the real estate market than 2024.
Due to the current situation, eQ’s real estate fund management fees are
expected to decrease in 2025 compared to the previous year.
Sales of eQ’s Private Equity products has continued to be strong, and we
believe that Finnish asset management clients will increase the Private Equity
allocations in their portfolios in the coming years. We estimate that eQ’s
Private Equity fees will increase in 2025 compared to last year. The exit market
for private equity funds was quieter than expected in 2024. As a result, the
timing of Private Equity performance fees accruing to eQ has moved forward.
Performance fees are expected to increase starting from 2026, with a number
of private equity products expected to move into the performance fee phase.
In traditional asset management, we believe we have a good market position.
The development of fees is largely dependent on market development.
Janne Larma
Acting CEO
7eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
eQ Asset Management aims to provide its clients with good investment returns,
innovative asset management services and excellent customer service. With its
own organisation and international partners, eQ is able to offer its clients a very
broad and international range of investment solutions.
eQ has a wide range of actively managed and successful investment funds.
Mutual funds offer diversified investments with different strategies. The range
includes 23 traditional asset management funds registered in Finland, Private
Equity and real estate funds, as well as funds from our international partners,
covering the most important asset classes and markets. At the end of the
2024 financial year, the Group had EUR 10,408 million in assets under
management, excluding assets under Private Equity reporting services, totalling
EUR 13,399 million.
eQ Asset Management is one of Finland’s leading institutional asset
managers. Every year, SFR interviews around 100 of the largest Finnish
institutional investors. According to a survey conducted by SFR in 2024, 68
per cent of the investors surveyed use eQ’s services. According to the survey,
eQ is the second most used institutional asset manager in Finland.
Asset Management
The Asset Management segment consists of eQ Plc’s subsidiary, the investment
services firm eQ Asset Management Ltd, and other Group companies engaged in asset
management, the most important of which is eQ Fund Management Company Ltd.
In eQ Asset Management, the principles of responsible investment cover all
of eQ’s investment areas. eQ Group’s responsibility and responsible investment
activities are described in more detail in a separate section as part of
the Annual Report.
Net revenue in the asset management segment fell by 13 per cent to
EUR 58.5 million in the 2024 financial year. The decrease in net revenue,
EUR 8.4 million, is explained by real estate asset management’s lower
management fees compared to the previous year. In contrast, management fee
income from both traditional and Private Equity asset management increased
from last year, by 6 per cent for traditional and 8 per cent for Private Equity.
Asset Management segment’s operating profit of the period fell by 19 per cent
to EUR 33.7 million.
As for sales, the year 2024 was good in private equity asset management.
In 2024, Private Equity funds were raised to the eQ PE XVI North fund
investing in Northern Europe and the eQ PE SF V and eQ VC II funds. We
raised over EUR 360 million in these three funds, which is an excellent result.
For traditional asset management, assets under management increased by
almost EUR 300 million compared to the end of 2023. In real estate asset
management, the challenging market situation contributed to a decrease of
over EUR 200 million in assets under management.
Key figures
Asset Management 1–12/2024 1–12/2023 Change
Net revenue, MEUR 58.5 66.9 -13%
Operating profit, MEUR 33.7 41.4 -19%
Cost/income ratio, % 42.3 37.9 12%
Number of personnel as
full-time resources 82 80 3%
Fee and commission income,
Asset Management, MEUR 1–12/2024 1–12/2023 Change
Management fees
Traditional asset management
9.4 8.8 6%
Real estate asset management 27.3 35.6 -23%
Private equity asset management 18.9 17.6 8%
Management fees, total 55.6 62.0 -10%
Performance fees
Traditional asset management
0.0 0.0 -39%
Real estate asset management 0.0 -0.7 -100%
Private Equity asset management 3.5 6.1 -42%
Performance fees, total 3.6 5.4 -35%
Other fee and commission income 0.1 0.1 -34%
Fee and commission income, total 59.3 67.5 -12%
9eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Traditional asset management mutual funds
Asset management portfolios and funds of partners
Open real estate funds
Closed real estate funds
Private equity funds
Private Equity programme funds
e
Q’S ASSETS UNDER MANAGEMENT
Without private equity reporting services EUR 10.4 bn
and in total EUR 13.4 bn
Private equity
41%
Real estate
20%
Traditional
39%
31 DEC. 2024
EUR 10.4 BN
1.0
2.2
1.9
1.7
3.3
0.3
eQ raised over EUR 360 million for private equity and VC funds
The final closing of the eQ PE XVI North fund took place in December 2024
for a total amount of EUR 227 million. The final close of the eQ PE SF V
secondary market fund was made on the same occasion for EUR 85 million
and the final close of the eQ VC II fund for USD 54 million. Fundraising
slowed globally in 2024. In such a fundraising environment, EUR 360 million
is a significant amount of capital raised. In addition, returns on eQ PE funds
remained excellent. Our investment focus on the PE side is in the SME sector,
where value creation and valuations are based on operational development and
earnings growth.
eQ PE XVI North is a fund of funds whose target funds invest in Northern
European small and medium-sized unlisted companies. eQ PE SF V is eQ’s fifth
secondary market fund. It invests with the same focus as eQ PE XVI North, but
only in funds bought on the secondary market and in continuation vehicles. eQ
VC II is eQ’s second venture capital fund, investing in US early and late stage
venture capital funds. For VC investment, eQ is partnered with TrueBridge in
the USA. TrueBridge is one of the best and most experienced VC investors in
the world.
eQ has launched its next North American fund, eQ PE XVII US, in January
2025. This is the sixth US fund in partnership with long-standing partner RCP
and is intended for professional investors only like also other PE/VC funds of
eQ. The previous five US funds have raised over USD 1 billion in client assets.
eQ will launch its next VC fund in late 2025.
10eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
eQ Asset Management’s utilisation rose in the 2024 SFR survey
eQ Asset Management’s utilisation rose in the 2024 SFR survey. The use of eQ
increased in the 2024 SFR study. The survey is conducted every year and its
participants are the 100 largest institutional investors in Finland. 68 per cent
of the survey participants say that they use eQ’s services. According to the
survey, eQ is the second most used institutional asset manager in Finland. In
alternative investments, eQ is by far the most used. eQ’s quality rating declined
in 2024, which the study attributes primarily to weaker investment returns
in the real estate segment. The differences in overall quality scores between
the major managers are however quite small. Our goal is to rise back to the
forefront of quality. eQ focuses on good investment returns, the best customer
service and long-term business development.
2024 was a challenging year for real estate funds
The difficult market situation in the Finnish real estate market continued in
2024. In 2024, there were still very low level of real estate transactions. In
several Finnish open-ended real estate funds, redemptions have not been
0 10 20 30 40 50 60 70 80
SFR RESEARCH: MOST USED
INSTITUTIONAL ASSET MANAGERS
Source: SFR research 2024
1
eQ
3
4
5
6
7
8
9
10
11
12
13
14
15
68%
60%
58%
54%
47%
39%
31%
30%
28%
22%
21%
17%
16%
11%
74%
1
2
3
4
5
6
eQ
8
SFR RESEARCH: ASSET MANAGEMENT
QUALITY REVIEW (1–5)
Source: SFR research 2024
3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 4.0 4.1 4.2
4.05
4.05
4.05
3.98
3.90
3.91
3.62
3.91
completed on time. Funds for redemption payments are mainly raised by selling
properties, and the transaction market being quiet, redemption payments have
had to be postponed.
Finance plays an important role in real estate investment and the current
interest rate cuts will in our view strengthen the real estate investment market.
Lower interest rates and economic growth are having a positive impact on the
real estate market. Future potential for value growth lies in properties that are
located in areas of population growth and also attract international investors.
During 2023 and 2024, eQ’s real estate fund returns have been negatively
affected by the rise in real estate yields and in the financing costs due to the
strong rise in interest rates. As a rule, yield requirements did not rise in the
final quarter of the year and interest rates have already fallen significantly. eQ’s
real estate fund’s properties are located in the capital region and other growth
centres and have good occupancy rates. Both the eQ Community Properties
and eQ Commercial Properties funds have maintained positive cash flow returns
throughout their life cycle. The total real estate value managed by eQ’s funds is
EUR 3.1 billion.
eQ’s funds win awards from Morningstar and Lipper
eQ Finland fund received the award for the best fund from Morningstar in 2024.
The winners were selected on the basis of returns for 1, 3 and 5 years and risks
for 3 and 5 years. eQ was also successful at the LSGE Lipper Fund Awards in
the Nordic countries. eQ Finland was the best fund over both 5 and 10 years,
eQ Europe Dividend over 10 years and eQ Nordic Small Cap over 5 years in their
respective categories. The funds are actively managed and the investment
strategies are based on stock-picking.
eQ Asset Management has a highly experienced portfolio management team,
and the awards are a great testament to the long-term and professional
work that the team does. Of the traditional asset management funds that eQ
manages itself, 62 per cent gave a better return than its benchmark index over
the past three years.
eQ’S HISTORY IN SFRRESEARCH
SFR 2023: Best quality and the second most used institutional asset manager
SFR 2022: Best quality and the second most used institutional asset manager
SFR 2021: Best quality and the most used institutional asset manager
SFR 2020: Best quality and the most used institutional asset manager
SFR 2019: Best quality and the second most used institutional asset manager
SFR 2018: Second best quality and the second most used institutional asset manager
SFR 2017: Best quality and the second most used institutional asset manager
11
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Corporate Finance
eQ’s Corporate Finance services are provided by Advium Corporate Finance Ltd, a subsidiary
of eQ Plc. Services cover mergers and acquisitions, large real estate transactions, equity
capital markets and general advice. The clients are mainly Finnish companies involved
in corporate or real estate transactions in Finland and abroad. Clients also include
international companies making corporate or real estate transactions in Finland.
Advium is one of Finland’s most respected and experienced advisors. Since its
establishment in 2000, the company has completed more than 240 corporate
and real estate transactions, many of which have involved at least one foreign
party. The total value of the arrangements has been around EUR 23 billion.
During 2024, Advium acted as advisor in four published M&A transactions
and one published real estate transaction: Advising Aspo Plc on its minority
investment in OP Suomi Infra, advising the eQ Commercial Properties fund
on the sale of the Bredis retail park, advising an acquiring consortium on the
public offer for Purmo Group, advising Innofactor’s Board on its public cash
offer for the company and advising Forcit on its agreement to acquire part of
Key figures
Corporate Finance 1–12/2024 1–12/2023 Change
Net revenue, MEUR 5.3 3.9 34%
Operating profit, MEUR 1.5 0.7 125%
Cost/income ratio, % 71.6 83.0 -14%
Number of personnel as full-time resources 17 16 6%
Orica’s Finnish and Swedish businesses. After the end of the 2024 financial
year, a transaction was announced in which Advium acted as advisor to AMF
Tjänstepension AB on the sale of its 33.3% stake in Mercada Oy to Kesko.
In 2024, Advium’s net revenue was EUR 5.3 million and operating profit EUR 1.5
million. It is typical of corporate finance that clients pay a success fee when a
deal is completed. Therefore, the timing of transactions has a significant impact
on invoicing and revenue can vary significantly.
12eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Investments
The business operations of the Investments segment consist of private equity
and real estate fund investments made from eQ Group’s own balance sheet.
During the financial year 2024, the Investment segment’s operating profit was
EUR 1.1 million. At the end of the period, the fair value of the investments was
EUR 17.0 million and the amount of the remaining investment commitments
was EUR 6.0 million. During 2024, eQ Plc made a EUR 1.0 million investment
commitment in the eQ PE XVI North fund.
During the period, the investment objects returned capital for EUR 1.2 million
and distributed a profit of EUR 1.3 million. Capital calls totalled EUR 1.6 million.
The net cash flow from investments during the period was EUR 0.8 million.
The value changes of investments recognised through profit or loss were
EUR -0.0 million during the period.
eQ’s revenue from own investment income is generated for eQ by factors
independent of the company, which means that the segment’s results can
vary significantly.
Key figures
Investments 1–12/2024 1–12/2023 Change
Operating profit, MEUR 1.1 -0.6 287%
Fair value of investments, MEUR 17.0 16.6 3%
Investment commitments, MEUR 6.0 7.2 -16%
Net cash flow of investments, MEUR 0.8 -0.1 -649%
eQ PE North -funds
eQ PE US -funds
eQ VC -funds
eQ PE Amanda East -funds
eQ Residential -funds
Funds managed by others
DISTRIBUTION OF INVESTMENTS
14%
31%
35%
3%
9%
8%
TOTAL VALUE
OF INVESTMENTS
17.0 MEUR
13eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Sustainability
Sustainability in the eQ Group 15
Sustainability Report 2024 16
Sustainability and its reporting in eQ Group 16
Responsible and sustainable investment at eQ Asset Management 18
Environmental responsibility at eQ Group 24
Social responsibility at eQ Group 26
Good governance at eQ Group 29
14
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
customers (SFR) and staff satisfaction (our own biannual survey) remained at
excellent levels in 2024.
It is also very important to us that every eQ employee has a good level of
knowledge and up-to-date information on sustainability matters. In 2024,
training topics included an update on the EU Sustainable Finance Disclosure
Regulation and EU Taxonomy Regulation, the success of eQ real estate funds
in the GRESB assessment, and the concepts of greenwashing and sustainability
risks and how to identify and monitor them.
Sustainability within the Group is at an excellent level. As a result of
the successful sustainability performance at Group level, eQ Plc has been given
the international ISS ESG Prime responsibility rating.
At the end of 2024, eQ Asset Management once again achieved excellent
results in the latest PRI assessment. We clearly outperformed the median in
all of the investment areas we report. eQ’s listed equities, corporate bonds and
real estate investments have been among the best (five stars) for some time.
Private equity investments were recognised for their excellent ESG performance
by returning a five-star rating.
In this eQ’s Sustainability Report we present the most important events
concerning ESG matters in 2024 regarding our various asset classes. More
detailed ESG information is available in our fund-specific ESG reports, and for
our portfolio clients we report the ESG performance of the entire portfolio in
aggregated form.
The theme of eQ’s fixed income and equity investment engagement work
in 2024 was human rights. eQ carried out a human rights survey for funds’
investments for which no thematic information was available through MSCI.
The answers provided important further information about the companies’
situation and future plans for the implementation and monitoring of human
rights. The human rights survey carried out in the spring shows the importance
of the portfolio manager’s own ESG activities and engagement work in
the portfolio. A new engagement theme we have planned for spring 2025 is
a survey on the implementation of biodiversity in our investments.
All in all, 2024 was an active year from the perspective of ESG activities and
a great deal of concrete development work was carried out. The real estate
investment team carried out for the first time the verification of the energy
consumption and emissions calculation of eQ’s real estate funds, performed
a Greenhouse Gas Protocol Standard (GHG) emissions calculation for all real
estate properties and conducted a CRREM (Carbon Risk Real Estate Monitor)
assessment for eQ’s real estate properties. The aim of the CRREM assessment
is to identify which properties are in line with the 1.5°C climate targets of
the Paris Agreement.
During 2024, eQ continued and deepened its strong core commitment to
sustainability also in its private equity investments. The European funds
launched in early 2024 (eQ PE XVI North and eQ PE SF V funds) will be eQ’s
first private equity funds to be classified as SFDR Article 8 funds. This is based
on a well-defined methodology, with eQ’s own ESG assessment framework at
its core. In the same context, eQ introduced a systematic due diligence process
for good governance of its investments. In late spring, eQ joined the ESG- Data
Convergence Initiative (EDCI), which aims to bring meaningful and practical
ESG metrics to the venture capital industry.
We are already looking ahead to 2025 with great interest. Our own systematic
and concrete sustainability work continues in all our investment areas. We will
also closely monitor the roll-out of the Corporate Sustainability Reporting
Directive (CSRD), which will enter into force at the beginning of 2024 for large
listed companies. eQ Plc will also be included in sustainability reporting in
2025 and will publish its first report in 2026.
It is time to thank our customers and partners. You challenge us to reflect on
topical new sustainability issues and trends and to develop our approach on this
basis. We look forward to continuing to meet this challenge.
We hope you enjoy reading our 2024 Sustainability Report.
Sanna Pietiläinen
Director, Responsible Investing
This is the eighth time we are publishing a Sustainability Report as part of
our Annual Report. It is very important for us to report transparently on the
implementation of sustainability in our business. We have also long actively
encouraged our investees to report on sustainability and to improve the content
and quality of their reports.
Our values, “honest, open, competent and efficient”, guide the work of every
eQ employee and constitute the foundation for daily co-operation with clients,
partners and other key stakeholders. Both customer satisfaction of our largest
Sustainability is
present and evolving
in everything
eQ does
15eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Sustainability and its
reporting in eQ Group
eQ Group is a Finnish group of companies that concentrates on asset
management and corporate finance business. The parent company eQ Plc’s
shares are listed on the main board of Nasdaq Helsinki.
Sustainability reporting describes eQ Group’s role as a responsible actor in
relation to its stakeholders and society at large. eQ wishes to ensure the
transparency and openness of its operations by reporting on its sustainability
work and its development regularly and extensively. Even though eQ Group,
based on its size and operations, is not obliged to draw up a non-financial
report required by the Finnish Accounting Act, since 2017 the Board of Directors
of eQ Plc has decided to voluntarily report on its sustainability to shareholders,
clients and other major stakeholders. eQ Group’s 2024 Sustainability Report has
been approved by the eQ Plc’s Board of Directors, and it is published as part of
the 2024 Annual Report.
Sustainability Report 2024
eQ Group’s responsible operations
Responsible operations are a key part of eQ’s entire business. We act in a
responsible and sustainable manner as eQ Group and integrate this work
systematically and in practice to eQ Asset Management’s investment
operations and Advium’s corporate finance operations. eQ’s values (below)
are at the core of the Group’s work culture. They guide the work of each eQ
employee and constitute the foundation for daily co-operation with clients,
partners and other key stakeholders.
eQ Group’s values
HONEST
We are honest and reliable,
true to our word. We act
correctly and responsibly. We
comply with the regulation
of the financial industry and
eQ’s joint rules.
COMPETENT
We want to understand our
clients’ needs. We constantly
develop our professional
skills and procedures. We
dare to question matters. We
share information, provide
assistance and give feedback.
OPEN
We are easily approachable
and discuss all matters
openly. We do not cover up
mistakes or problems, we
learn from them. We rejoice
successes together. We also
respect dissimilarity.
EFFICIENT
We do what we promise
briskly and carefully. We
do the work; we do not
simply talk and plan. We
work diligently and with an
uncompromising attitude
together with our clients,
colleagues and partners.
16eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
eQ encourages the companies in which it invests to provide transparent
stakeholder information and develop their sustainability reporting, regardless of
the size of the company or the regulatory requirements. More information about
sustainability, the related principles and other relevant documents can be found
on eQ’s website (https://www.eq.fi/en/about-eq-group/sijoittajat/vastuullisuus).
Sustainability themes
eQ has identified in its own business four essential areas that create the
framework for sustainability. The sustainability themes have been approved by
eQ Plc’s Board of Directors. The section below describes in detail what these
four themes mean in practice.
At Group level, the Management Team is responsible for sustainability, and
the work is conducted in close co-operation with eQ’s Director for Responsible
Investment. eQ Plc’s Board of Directors receives annual reports on how
sustainability has been carried out within the company as well as on future
development plans.
GOOD GOVERNANCE
• Adherence to the law, internal
instructions, policies (such as
the policy on conflicts of interest)
and Code of Conduct
• Transparent reporting on
costs also
• Proactive activities against
corruption, bribery and
money laundering, as well as
promoting these activities in
the entire sector
• eQ Plc publishes
a Sustainability Report
CLIENTS
• An honest, open, competent and
efficient partner to eQ’s clients
• In-depth understanding of
customer needs and meeting
these needs
• Monitoring customer satisfaction
THE ENVIRONMENT
• Green electricity in our
own premises
• Environmentally friendly
guidelines for employees
• Location of the premises, travel
ticket as employee benefit, and
bicycle storage
• Support for the Baltic Sea
Action Group (BSAG) since 2019,
average of EUR 110,000 per year
PERSONNEL
• Wellbeing at work and monitoring
of job satisfaction
• Equality and diversity
• Early support programme,
programme on substance abuse
and gaming addiction
• Training on sustainability matters
for our employees
Training related to sustainability
We provide our employees with continuous training in sustainability matters.
Items on the training agenda in 2024 included a review of the EU Sustainable
Finance Disclosure Regulation and the Taxonomy Regulation from eQ’s
perspective, the success of the real estate funds in the GRESB assessment,
the concept of greenwashing and sustainability risks, their manifestation
and monitoring.
In its induction programme, eQ commits new employees to comply with and
implement eQ’s principles and procedures on responsible investing. During
2024, four responsibility induction training sessions were held for new
employees. New employees complete e-learning on the Code of Conduct as
part of their induction.
Sustainability within the Group is at an excellent level
As a result of the successful sustainability performance at Group level, eQ
Plc has been given the international ISS ESG Prime responsibility rating. ISS
assesses how responsibility matters are carried out by a company with regard to
environmental, social responsibility and governance aspects. The ISS ESG Prime
rating is awarded to companies that reach or exceed the criteria for the best
ESG practices defined by ISS ESG. eQ Plc was among the best tenth in its
sector regarding responsible operations.
In order to promote openness and transparency eQ has already for six years
reported key ESG ratios describing operations based on sustainability reporting
to the ESG database maintained by Nasdaq. In recognition of this, Nasdaq has
awarded eQ Plc with the “Nasdaq ESG Transparency Partner” certificate.
17eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
eQ Fund Management Company Ltd has outsourced the portfolio management
and investment activities of all the funds it manages to eQ Asset Management
Ltd. eQ Asset Management has for several years acted as an active forerunner
for responsible investment. eQ signed the United Nations’ Principles for
Responsible Investment (PRI) in 2010 and has accordingly undertaken to
incorporate ESG factors (the environment, social responsibility and governance)
as part of the investment processes, to be an active owner and to promote
the development of responsible investing practices in the industry. eQ is also
an active member of Finsif (Finland’s Sustainable Investment Forum), and
Finance Finland.
Furthermore, eQ promotes the implementation of sustainability in private
equity funds at the Finnish Venture Capital Association (as the chair of the ESG
working group) and Invest Europe and the ESG Data Convergence Initiative
and, correspondingly for real estate investments, at Finnish Property Owners
Rakli, at Green Building Council Finland (FIGBC), and in the GRESB (Global
Real Estate Sustainability Benchmark) assessment. In fixed income and equity
investments eQ has signed CDP’s Climate Change programme and encourages
businesses to specify emission reduction targets for their own operation, based
on science, through the Science Based Target Initiative (SBTi) organised by
the CDP.
Responsibility and sustainability are a key part of eQ Asset Management’s
investment activities and processes. eQ Asset Management’s principles for
responsible investment form a framework for all of eQ’s investment operations
and their processes. The principles cover all asset classes, and their application
depends on the asset class and investment method. These principles have been
approved by eQ Asset Management’s Board, and they are based on policies
Responsible and sustainable investment at eQ Asset Management
on responsible investing specified by the Board. The corporate governance
principles of eQ Asset Management Ltd are available on eQ’s website.
Sustainability risks and opportunities (ESG, sustainability factors associated
with the environment, society and governance) are part of the selection,
monitoring and reporting of investments in all of eQ’s investment areas. eQ’s
goal in responsible and sustainable investing is to identify investments that
benefit from sustainable operation and their potential for return, and to reduce
the risk in investments. For the past four years, the development of the ESG
approach has been for its part steered by the EU Sustainable Finance Disclosure
Regulation (SFDR) that took effect in March 2021 and its implementation in
investment activities.
The Director for Responsible Investment is responsible for coordination of
the implementation and development of responsible investing at eQ Asset
Management for all of eQ’s funds and their investment activities. Supervisors
of investment teams (fixed income, equities, real estate investments and
private equity investments) are responsible for the implementation and
monitoring of ESG in their own investment teams. Every portfolio manager
and analyst working on investment decisions at eQ systematically takes into
account sustainability factors pertaining to investments in their own work.
Risk management & compliance and the CFO of eQ’s Group Administration
take part in the SFDR and ESG reporting of investment products, monitoring of
regulation amendments, and sustainability reporting at Group level. In addition,
eQ Fund Management Company’s risk management monitors compliance with
sustainability risk limits across all eQ’s asset classes.
ESG training of eQ’s investment teams in 2024
Implementation of the Sustainable Finance Disclosure Regulation, GRESB
results concerning real estate funds, and collection of PAI indicator data and
a review of data contents were on the agenda for training of eQ’s investment
teams in 2024. Also, eQ’s fixed income and equity investment team continued
to focus on the quality and sources of MSCI’s ESG data, and planned and sent
a human rights survey to investments of actively managed funds. The private
equity investment team classified the first SFDR Article 8 private equity funds
(eQ PE XVI North and eQ PE SF V funds), introduced a systematic due diligence
process for good governance of investment targets and collected PAI indicators
for the second time for the Northern European target funds. The real estate
investment team carried out for the first time the verification of the energy
consumption and emissions calculations of eQ’s real estate funds, performed
a Scope 3 calculation for eQ’s real estate and residential funds across the
entire supply chain and conducted a CRREM (Carbon Risk Real Estate Monitor)
assessment for eQ’s real estate assets. The aim of the CRREM assessment is
to identify which properties are in line with the 1.5°C climate targets of the
Paris Agreement.
Clients
Conversations with clients and training them when necessary are a material
part of eQ’s customer work. We listen to our clients and learn from them.
In 2024 ESG was involved in almost all meetings with clients, and meetings
exclusively focused on ESG were also held with many clients.
In 2024 eQ organised for its clients an ESG webinar whose key topics were ESG
data obtained from eQ’s investment areas, changes in the data and concrete
measures taken at investments on the basis of the data.
18eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
During the past year eQ’s ESG experts were also active in several Finnish and
international forums and ESG surveys, promoting the distribution of information
based on best practices.
Reporting on responsible investing
eQ Plc’s Board of Directors is reported once a year on implementation of
responsibility and responsible investment and on future development activities
in all of eQ’s areas of investing. Furthermore, eQ Fund Management Company’s
Board regularly discusses reports according to the Disclosure Regulation
concerning investment areas. eQ also annually reports to PRI on the company’s
practices in responsible investing and on concrete engagement activities in
the investees.
eQ Asset Management once again achieved excellent results in the 2024 PRI
(the UN Principles for Responsible Investment) assessment. The information
that was evaluated pertains to the year 2023.
The ranking areas reported by eQ received a full five stars and a high score.
eQ succeeded much better than the median in all the six sections the
company reported.
The following chapters briefly present the most important events concerning
ESG matters in 2024 in the various asset classes. The ESG reports per asset
class contain detailed information about our responsible investment operations
and the ESG matters that we monitor in our investees.
Fixed income and equity investments
Respect for human rights as an engagement theme in 2024
In spring 2023, portfolio managers conducted a climate survey to investments
of fixed income and equity funds, which have not yet used MSCI’s data to set
an emission reduction target for their own business operations (the Science
Based Target SBT or the Net Zero goal). The engagement theme for 2024 was
human rights. It is important to look at investments from a human rights
perspective. From 2027 onwards, large companies will be subject to regulation
(EU CSDDD, Corporate Sustainability Due Diligence Directive). There will also
Top scores in PRI Assessment 2024
Reported areas 2024
Score
(max. 100%) Star rating*
Customise Peer
Group median %
Customise Peer Group
median star rating
Policy Governance and Strategy 80% 65%
Direct – Listed equity – Active fundamental 95% 66%
Direct – Fixed income – Corporate 96% 57%
Direct – Real estate
96% 71%
Indirect – Private equity 99% 72%
Confidential building measures 100% 80%
• YPRI signatory since 2010
• Five stars and a high score in all ranking investment areas reported by eQ
• Performance better than the median in all areas
Source: PRI Asessment Report 2024. eQ Asset Management Ltd.
*PRI’s rating scale is based on a star grade (1 star ”poor” -> 5 stars ”best”). 2024 star rating limits: 0 ≤ 25 % (1 star), > 25 ≤ 40 % (2 stars), > 40 ≤ 65 % (3 stars), > 65 ≤ 90 % (4 stars) ja > 90 ≤ 100 % (5 stars).
be sanctions for companies in this regard: fines and civil liability for breaching
the due diligence obligation.
Active engagement – eQ’s human rights survey of actively managed funds
In spring 2024, eQ conducted a human rights survey for fixed-income and
equity funds (excluding eQ Short-Term Euro) for which no thematic data was
available through MSCI. In the survey, eQ asked portfolio companies about the
existence of human rights policies and concrete processes. The survey was sent
to over 300 companies, of which almost half (148) responded. The answers
provided important further information about the companies’ situation and
future plans for the implementation and monitoring of human rights.
Score
eQ funds Excellent At least satisfactory
Developed markets, large companies 55% 80%
Emerging markets, large companies 30% 75%
Small companies 15% 40%
Based on the survey results and MSCI data, companies’ human rights
performance was divided into three categories: commendable, satisfactory and
unknown/not managed. To receive a commendable rating, the company was
required to 1.) comply with human rights principles, 2.) have a human rights due
diligence process, and 3.) have a policy to prevent human trafficking. Meeting
one of the three criteria mentioned above was sufficient for a satisfactory mark.
Key observations of the human rights survey:
• Human rights are most comprehensively addressed by large companies in
developed and emerging markets.
• Frontier and small companies were the most lacking, especially in terms of
due diligence processes.
• In the eQ Blue Planet Fund, up to 95% of the investments were rated as
commendable.
• There is no difference between developed and emerging markets in eQ’s
small cap funds.
19eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
The human rights survey carried out in the spring shows the importance of the
portfolio manager’s own ESG activities and engagement work in the portfolio.
The survey also resulted in a direct contact with the eQ portfolio manager by
one of the investees. A Taiwanese technology company (eQ Emerging Markets
Small Cap) thanked the portfolio manager for a good survey and said in an email
that as a result of eQ’s survey, the company had gone through all its internal
policies and projects related to human rights. eQ feels that this is the kind of
active engagement that is best done with investees.
In addition to the survey, eQ regularly monitors human rights in portfolio
companies through two PAI (Principal Adverse Impact) indicators:
• Lack of due diligence
• Lack of processes and measures for preventing trafficking in human beings
Other ESG activities
eQ’s actively managed fixed income and equity funds have an emission
reduction target based on the emission reduction targets of the investee
companies. eQ accepts either SBTi or Net Zero as emission reduction targets.
eQ believes that these targets encourage companies to make concrete
emission reduction targets. The funds aim to increase the number of companies
committed to emission reduction targets each year. eQ has been encouraging
and monitoring the development of the SBT metric in particular for a few years
now. As even the very ESG ambitious companies will only set their emission
reduction targets for years 2040 to 2050, eQ’s engagement work is important.
A good example of this is the 2023 emissions reduction target survey for
investment sites.
Besides such engagement, eQ has monitored the trends in setting SBT emission
reduction targets for a few years now, and also through the joint engagement
initiative organised by the CDP. The setting of SBT targets has seen a dramatic
increase in recent years. The number of accepted targets doubled in 2024
from 4,204 to 7,085, which is a significant leap in growth. A significant growth
jump in SBT targets was also seen in 2023 from 2,079 to 4,204. eQ’s fund-
specific ESG reports show the SBTi emission reduction target distribution
of investments.
eQ started reporting PAI indicators on fixed income and equity investments
back in the summer of 2022, as one of the first asset managers. Reported
PAI indicators are available in fund-specific ESG reports on eQ’s website
(https://www.eq.fi/en/funds/fund-values). The year 2024 was also an interesting
and educational time to read up on indicators reported on investments.
However, one must point out that the information available and its quality
still involve constraints. Details relating to sustainability have not been
standardized yet, and target companies do not report on information
extensively, so some of the PAI indicator data available for use may be based on
estimates. eQ finds that interpretation of a value of an individual PAI indicator
is not yet sensible. As the data improves, PAI indicators will deepen the
information about corporate sustainability.
A new engagement theme we have planned for spring 2025 is a survey on
the implementation of biodiversity in our investments. Since summer 2022,
portfolio managers have been monitoring the biodiversity performance of
portfolio companies using the PAI indicator (PAI 7 Functions that have a
negative impact on areas with sensitive biological diversity). eQ is currently
gathering information and trying to understand what Science-Based Targets
for Nature (SBTN) means in practice and how the calculation methods are
evolving. In this context, eQ participated in a training session organised by
100
90
80
70
60
50
40
30
20
10
0
HUMAN RIGHTS CONSIDERATIONS IN PORTFOLIO COMPANIES,
%
Excellent condition (MSCI or query) Satisfactory condition (MSCI or query) Other (no information / not okay)
eQ Blue
Planet
eQ Emerging
Dividend
eQ Emerging
Markets
SmallCap
eQ Frontier
Markets
eQ Finland eQ Nordic
Small Cap
eQ Europe
Small Cap
Fund
eQ Europe
Dividend
eQ Euro
Investment
Grade
eQ Emerging
Markets
Corporate
Bond
eQ High Yield eQ Euro
Floating Rate
20
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Sitra in autumn 2024 for financial companies and operators on “How to
implement Nature-related Financial Disclosures (TNFD) reporting”. In addition,
portfolio managers monitor the launch of sustainability reporting (CSRD) for
larger investments.
Real estate investments
CRREM assessment for real estate sites and extension
of emissions calculation to Scope 3 emissions
The eQ real estate and residential funds (excluding the Special Investment
Fund eQ Residential) are sustainable financial products under Article 9. eQ is
a responsible property owner who wants sustainability measures to lead to
concrete and positive development in the energy efficiency of the properties
owned and in questions of environmental and social responsibility. eQ has set
a tough but realistic carbon neutrality target for in-use energy consumption
by 2030. The aim is to reduce carbon emissions from buildings in line with the
Paris Agreement. At the end of 2024, both eQ real estate funds were already
very close to their carbon neutrality target and the residential funds had already
met it. Progress towards the target is reported in fund-specific ESG reports.
eQ’s Article 9 classified real estate and residential funds monitor and report
also the share of properties meeting the taxonomy compliance criteria in the
funds. eQ’s real estate funds are all taxonomy-compliant real estate and the
real estate funds exceed the minimum target levels set.
The main real estate development projects for 2024 were: 1. CRREM (Carbon
Risk Real Estate Monitor) assessment for eQ’s real estate sites, 2. Performing
a Greenhouse Gas Protocol Standard (GHG) emissions calculation for all
buildings; and 3. Verification of the energy consumption and emissions
calculation of eQ’s real estate funds for the first time in spring 2024.
CRREM (Carbon Risk Real Estate Monitor) assessment for eQ’s real estate sites
eQ needed to assess whether the current energy efficiency measures in the
Article 9 funds are sufficient to meet the 1.5°C target of the Paris Agreement by
2050. In this context, during 2024, all eQ real estate assets, where applicable,
were assessed using the Carbon Risk Real Estate Monitor (CRREM) tool.
CRREM is a European Horizon 2020 research and innovation project in which
a tool has been developed for assessing transition risks in real estate. The
goal of the CRREM tool is to globally promote the reduction of carbon dioxide
emissions in the real estate sector and adaptation to climate change. The
aim of the CRREM assessment is to identify which properties are in line with
the 1.5°C climate targets of the Paris Agreement. In practice, the assessment
identifies the financial risks related to energy efficiency and quantifies the
financial effects of climate change on the real estate stock.
Based on the assessment, all real estate properties that are part of eQ’s funds
and that were included in the report are on the CRREM path until 2033 in
terms of emissions. CRREM’s scenario analysis is based on the assumption
that properties would not be developed after the CRREM review, in which
case energy efficiency would fall below the Paris climate goals in all funds as
early as 2030. eQ’s constant goal is to improve energy efficiency and reduce
environmental impacts in real estate.
Extension of emissions calculation to Scope 3 emissions
Another important development project for 2024 was related to the GHG
protocol (Greenhouse Gas Protocol Standard) emission calculation for all real
estate sites. The following emission sources were considered in the calculation:
• Scope 1
• Own heat production in buildings
• Self-generated electricity
• Scope 2
• Purchased electricity
• Purchased district heating
• Purchased district cooling
• Scope 3
• Products and services (administrative costs of funds, banking and
payment transaction costs, marketing costs, maintenance and cleaning,
damage insurance and repairs)
• Fixed assets (emissions from the construction of new sites)
• Energy upstream (indirect emissions resulting from the production of
purchased energy and transmission losses of purchased energy)
EQ COMMERCIAL
PROPERTIES FUND
Total: 23,423 tCO
2
e
Scope 1: 0 tCO
2
e
Scope 2: 8,260 tCO
2
e
Scope 3: 15,163 tCO
2
e
EQ COMMUNITY
PROPERTIES FUND
Total: 28,277 tCO
2
e
Scope 1: 0 tCO
2
e
Scope 2: 16,446 tCO
2
e
Scope 3: 11,831 tCO
2
e
EQ RESIDENTIAL FUND
Total: 23,676 tCO
2
e
Scope 1: 0 tCO
2
e
Scope 2: 296 tCO
2
e
Scope 3: 23,380 tCO
2
e
EQ RESIDENTIAL II FUND
Total: 5,748 tCO
2
e
Scope 1: 0 tCO
2
e
Scope 2: 1.2 tCO
2
e
Scope 3: 5,747 tCO
2
e
S3 – C3 Energy upstream
S2 Purchased electricity
S2 Purchased district cooling
S3 – C1 Products and services
S3 – C2 Fixed assets
The emission data for the 2024 assessment
concerns the year 2023.
GHG EMISSION CALCULATION
RESULTS FOR 2024
21
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Excellent ratings in ESG assessments
For the third time, eQ’s real estate investments segment achieved the highest
rating (five stars) in the 2024 PRI assessment (a score of 96% / 100%).
eQ’s real estate funds have participated in the Global Real Estate Sustainability
Benchmark (GRESB) assessment in the real estate sector for six years in a row.
In the 2024 assessment, with data from 2023, both eQ Community Properties
and eQ Commercial Properties each received four out of five stars and a Green
Star for their responsible work. In particular, the eQ Community Properties
fund saw a significant increase in stars and scores from three to four stars,
with a former score of 79 rising to 87. The results of both funds were better
than the group of respondents as a whole and higher than the averages in eQ’s
comparison group.
The funds’ score improvement is driven by:
• Evolution of personnel remuneration practices
• Improving the coverage of technical reviews
• Comprehensive implementation and documentation of energy, water and
waste efficiency measures; and
• Verification of consumption data by an external party.
The Building Research Establishment’s Environmental Assessment Method
(BREEAM) In Use certification is used to assess the operability of an individual
property and related maintenance functions, identify any shortcomings and
select areas of development. eQ’s real estate and residential funds intend to
obtain a BREEAM In Use certificate for all sites, with the Very Good level as
their goal.
The further improvement of results of sustainability assessments demonstrates
that eQ is on the right path in developing sustainability. eQ’s constant goal is
to improve energy efficiency and reduce environmental impacts in properties
owned by eQ’s funds, naturally in cooperation with the tenants. The key
development project for 2025 focuses on the update of the carbon neutrality
road map for real estate and residential funds.
* % of certified properties per market values at the end of December 2024
eQ Commercial Properties GRESB -assessment (2023)
eQ Community Properties GRESB -assessment (2023)
eQ Commercial Properties
BREEAM -certificate progress*
eQ Community Properties
BREEAM -certificate progress*
Private equity investments
ESG work was deepened during 2024
eQ has been doing systematic ESG work for a long time. During 2024,
eQ continued and deepened its strong core commitment to sustainability, which
was apparent in several areas.
ESG highlights 2024
The European funds launched in early 2024 (eQ PE XVI North and eQ PE SF V
funds) will be eQ’s first private equity funds to be classified as SFDR Article
8 funds. This is based on a well-defined methodology, with eQ’s own ESG
assessment framework at its core. At the same time, eQ introduced a systematic
due diligence process for good governance of its investments.
eQ has monitored the development of sustainability at private equity funds
it invests in since 2017 by means of an annual ESG survey and has reported
the results to the fund investors. ESG survey results analysed in spring 2024
indicated that the sustainability ratings of all of eQ’s Europe and US funds
had improved.
Key observations of the survey:
• European managers’ ESG performance is at a good level and the new funds to
be raised mostly comply with Article 8. Individual ‘procrastinators’ also speed
up their ESG practices at the latest in connection with fundraising.
• The responsibility ratings of North American managers have increased but are
still behind Europe. The SEC’s climate-related disclosure rules were adopted on
6 March 2024. Regulation was looser than expected but is certainly a driving
force in ESG reporting and development. At the same time, the outcome of
the presidential election may affect ESG developments in the following years.
• European Managers build and deepen their Scope 3 calculation readiness
and take the next step towards emission reduction goals – regardless of
the Manager’s size.
• Standardization is in the wishes of the industry players and joining the ESG
Data Convergence (EDCI) initiative is increasing, which can be seen in
the convergence of European and North American operating methods also in
eQ’s funds.
GRESB POINTS
GRESB respondents
avg. 76
GREEN STAR
Comparison group 75
The best in the
comparison group
GRESB POINTS
GRESB respondents
avg. 76
GREEN STAR
Comparison group 83
% %
22
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
• The amount of ESG reporting is increasing and the quality is constantly
improving, also in North America.
Based on the results of the ESG survey, eQ updated the responsibility
assessment of each target fund and reported the results and success in the
comparison group for each target fund. In addition, eQ reviewed the results
of the survey in more detail at the annual ESG-themed eQ GP event, which
was attended by 40 European small and medium-sized private equity fund
managers. Other topics of the event were: 1. Invest Europe’s representative
responsible for the regulation of sustainable finance talked about the latest
legal projects and at the same time the Invest Europe representative had
the opportunity to hear thoughts and comments from European managers.
A manager of a 2nd target fund told how they have developed their portfolio
company from a traditional waste company to a circular economy company.
ESG measurement and monitoring is growing rapidly among managers
The measurement and monitoring of responsibility aspects in the private
equity field eQ invests in is increasing rapidly. This is a fantastic achievement,
bearing in mind that eQ’s focus is on funds that invest in small and medium-
sized companies.
In spring 2024 eQ collected PAI indicators on eQ’s European private equity
target funds and reported them to investors for the second time. Data coverage
almost doubled, and 40 per cent of European managers already report the
numbers. Private equity funds are closed-end funds, and it is typical for
fund managers to start collecting PAI data from funds established after the
regulatory entry into force in 2021. Fully comprehensive information will
certainly not be available for several years, but the coverage is improving year
by year, for example with the establishment of new funds.
eQ joins the ESG Data Convergence Initiative (EDCI)
Alongside the PAI indicators, the capital investment industry’s ESG Data
Convergence initiative (EDCI) has quickly emerged. eQ also joined this initiative
in the spring of 2024.
The goal of the initiative, established in 2021, is to introduce sensible and
practical ESG metrics for the capital investment industry, which are appropriate
regardless of the company’s size or industry. At the end of 2024, +300
managers (GP) and +125 fund investors (LP) participated in the initiative. In
Europe, the EDCI initiative already includes almost half of the funds, often
alongside PAI reporting, and several in North America as well. eQ therefore sees
it as important to promote EDCI metrics among North American GP managers
in the scope of non-regulation (SFRD regulation). In addition to the practicality
of the metrics, the beauty of the initiative is that the key figures are well suited
to all companies, regardless of industry or company size. In addition, the EDCI
indicators have a lot of similarities with the PAI indicators. In the latest eQ PE
ESG survey, some North American Managers already said that they plan to join
the ESG Data Convergence initiative in the near future.
eQ has joined ESG Data Convergence Initiative
eQ did not participate in venture capital competitions during 2024, but was
recognized for its excellent ESG work by returning five stars in the 2024
PRI assessment.
The purpose of the 2025 ESG work is to focus on the systematization and
deepening of ESG data and, above all, more efficient use of the data, so that
it can be used for a wide range of purposes in the future and thus bring a
significant advantage to the customer. There are also a few new additions to
the ESG questionnaire: biodiversity and good governance. In addition, at the
end of the survey, European managers will be asked about their experiences
in implementing the new CSRD reporting framework and US managers will be
asked about their views on the much talked about anti-ESG phenomenon in the
US market. eQ is looking forward to seeing what ESG results will come out of
the 2024 survey.
GHG EMISSIONS
• Scope 1
• Scope 2
• Scope 3*
DIVERSITY
• % women on board
• % women in C-suite
• % underrepresented groups on board*
• % LGBTQ on board*
‘NET ZERO’
• Strategy*
• Target*
• Ambition*
WORK RELATED INJURIES
• Injuries
• Fatalities
• Days lost due to injury
RENEWABLE ENERGY
• % Renewable energy usage
NEW HIRES
• Net new hires (organic and total)
• Turnover
EMPLOYEE ENGAGEMENT
• Employee survey (yes/no)
• Employee survey response*
*voluntary
23
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Mitigation of climate change is an important theme both at eQ Group and in
eQ Asset Management’s investment operation. eQ Group’s own business places
a relatively minor direct burden on the environment. Energy use is primarily
related to the consumption of energy on the premises. This is why the eQ
Group has not defined an emission reduction target for its own operations. On
the other hand, eQ has an opportunity to promote sustainable development
through eQ Asset Management’s investment activities. Emission reduction
targets have been set for eQ’s real estate investments and actively managed
interest and equity funds, which are described in this report in the sections on
investment areas.
Although eQ does not operate in an “emitting industry”, the company pays
more and more attention to the environmental impacts of its own operation
and develops its procedures in an increasingly sustainable direction. In
2021, on the basis of earlier operating principles, eQ outlined and prepared
an environmental policy concerning eQ Group that consists of five themes:
1. recycling, sorting and cleaning, 2. movement, 3. food/refreshments, 4.
procurement, and 5. energy and water. In 2022 the company discussed
indicators of themes on environmental responsibility and the need to update eQ
Group’s guidelines for environmentally friendly operation.
Companies in eQ Group have used fully renewable energy in their own
electricity consumption since 2018. The premises are leased. Heat and water
consumption as well as air conditioning (district cooling) is included in the rent,
and consumption data regarding them is not available from the lessor.
eQ encourages its employees to use public transport and other alternative
ways of travelling. Employees are offered a travel ticket as employee benefit
and part of the overall salary, and they also have access to eQ’s joint public
transport travel cards when travelling in the near-by area during the working
Realisation of environmental
responsibility at eQ Group
RECYCLING, SORTING AND CLEANING
Improving recycling and guidance as well as using
environmentally friendly cleaning products
MANAGEMENT
Improving continuously environmental
matters. Internal working group
COMMUNICATION AND ENGAGEMENT
Communicating sustainable practices in the work
community and training in key environmental matters as
well as monitoring and reporting the development of these
themes with the eQ Group’s sustainability report
MOVEMENT
Location of the premises,
employee travel ticket
and bicycle storage
FOOD/CATERING
Salads, organic packaging
as well as favouring other
local food products
ENERGY AND WATER
Reducing electricity consumption
and using renewable energy
sources (hydropower)
PROCUREMENT
Giving up plastic bottled mineral
water, favouring environmentally
friendly and durable products
(including Fair Trade products,
bubble water tap) and reducing
paper consumption
24
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
day. The company prefers direct flights, and when possible, negotiations are
conducted with remote negotiation technologies. eQ also reports the total CO
2
emissions for work-connected flights of our employees and, as a new key ratio,
the amount of emissions per person.
eQ takes care of the sorting and recycling of the office waste produced on
its premises. The lessor of the premises used by eQ is responsible for waste
management. In 2024 eQ also continued the implementation of measures
on the sorting and recycling of office waste introduced in 2019. These
measures included:
• training on eQ Group’s environmentally friendly operating guidelines,
• employees have no individual waste bins for mixed waste, and
• eQ employees do not consume mineral water in plastic bottles.
eQ Group’s guidelines for environmentally friendly operation are always
presented when new employees are being trained. eQ also reports on
the consumption of paper at its premises. The company switched to double-
sided printing four years ago. eQ has not been engaged in legal proceedings or
claims concerning environmental accidents.
Own energy consumption of the organisation
2024 2023 2022 2021 2020
Electricity consumption, kWh* 151,318 131,630 103,960 106,369 89,893
Origin of electricity:
Share of renewable energy, %
100% 100% 100% 100% 100%
Share of nuclear power, % 0% 0% 0% 0% 0%
Share of fossil fuels, % 0% 0% 0% 0% 0%
Specific carbon dioxide emissions of electricity, g/kWh
0 0 0 0 0
Nuclear fuel used in electricity, mg/kWh 0.0 0.0 0.0 0.0 0.0
Carbon dioxide emissions of electricity, total, kg
0 0 0 0 0
Carbon dioxide emissions of electricity per net revenue, g/EUR 0.00 0.00 0.00 0.00 0.00
Electricity consumption per rented office square metre, kWh
70 61 55 64 54
Electricity consumption per person, kWh 1,455 1,303 1,106 1,108 956
Other environmental responsibilities**
2024 2023 2022 2021 2020
Other indirect greenhouse gas emissions
Travelling by air, CO
2
emissions, kg 48,760 43,235 51,879 4,669 3,961
Travelling by air, CO
2
emissions, kg per person 469 428 552 49 42
Use of material
Paper consumption, total, kg
1,347 1,124 631 715 1,710
Paper consumption, kg per person 13 11 7 7 18
*In 2024–2023 electricity consumption increased due to an extension of eQ’s premises.
** The table shows an estimate of carbon dioxide emissions of air travel and paper consumption. Paper consumption is reported based on paper purchased.
25
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Realisation of social responsibility
at eQ Group
eQ as employer
The aim of eQ Group is to act as a responsible employer. The personnel are eQ’s
most important resource.
Employees’ job satisfaction and commitment and the need to develop the
workplace are monitored regularly with a semi-annual survey. The results of the
2024 survey on well-being at work were excellent again. The results have been
excellent when reviewed by the five-year trend also.
The survey deals with the personnel’s commitment, well-being at work,
satisfaction with the work community and the work of the superior. On a scale
from 1 to 5, job satisfaction and well-being at work received the score 4,3
(2023: 4,4). According to the survey, employees are happy to recommend eQ
Group as an employer. The eNPS value that describes this was very high at
36 (on a scale from -100 to +100, where 0 to +20 is good, over 20 excellent
and over 40 a top result). The response rate to the 2024 survey of well-being
at work was also high, averaging at 92 % (2023: 95 %). The personnel survey
is one of eQ’s most important tools for developing internal working methods
and the quality of managerial work. At team-specific meetings, the results are
discussed in detail, and potential development measures and goals are agreed
for monitoring them.
eQ invests in the well-being of its personnel by offering extensive occupational
health care, exercise benefit vouchers and other welfare services, for instance.
Development discussions are conducted with the entire personnel in all Group
companies. The discussions are conducted at least once a year and they assess
the performance of the previous period and set targets for the following one
as well as assess, e.g. the need to develop the employee, managerial work and
the work community. Since autumn 2023, consideration of compliance and
sustainability matters in employees’ job descriptions has been incorporated
on eQ’s development discussion form as new sections. The intention is that
employees and their supervisors set goals together and evaluate afterwards
how successful the employee has been in taking account of compliance and
sustainability matters in their work and how they could improve.
eQ’s employees may participate in training offered by the employer and
partners, in other external training, or study independently. The Group is
favourably disposed to studies at the employees’ own initiative.
Calculated as full-time resources, eQ Group had 104 employees at the end of
2024 (2023: 101). When calculating full-time resources, part-time employees
and those on parental and study leave have been included. Altogether 112
persons had an employment relationship with eQ (2023: 107), and 9 of them
worked part-time (2023: 6). Part-time employees are used in seasonal tasks
or projects.
Equality, justice,
and non-discrimination
are important principles
for eQ Group.
26
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Of the personnel, 38 % were women (2023: 39 %) and 62 % men (2023: 61 %).
The average age of the personnel was 42.4 years (2023: 42,5), and the employee
turnover in 2024 was 5,8 % (2024: 3,0 %). In 2024, the average sick leave of the
personnel was 5,9 days per person (2023: 4,7) and there were no work accidents
in 2024 (2023: 0).
Equal pay between genders
eQ Group pays the same salary to employees for the same or similar
work regardless of gender. Similar in this respect means that the central
requirements, expertise, responsibility and workload are on the same level. The
job title is not decisive.
Equality
Equality, justice, and non-discrimination are important principles for eQ Group.
eQ has drawn up an equality plan, which comprises the measures for promoting
equality and the agreed follow-up measures. The plan is assessed and updated
on a regular basis and covers all Group companies. The plan is available to all
employees of eQ Group on the Group’s internal website.
Health and Safety Policy
eQ Group has drawn up a policy for promoting health and safety at work and
for maintaining the working capacity of the employees. It covers the needs to
develop working conditions as well as the impacts and development needs of
factors related to the work environment. The policy is available to all employees
of eQ Group on the Group’s internal website. eQ Group also uses the early
support method and eQ Group’s substance abuse programme that was prepared
in 2023. All eQ employees were provided internal training on the substance
abuse programme.
Personnel
2024 2023 2022 2021 2020
Personnel as full-time resources 104 101 94 96 94
Permanent employment relationship
103 101 94 91 94
Temporary employment relationship 9 6 4 11 9
Employment relationship, total 112 107 98 102 103
Share of temporary employees, %
8.0 5.6 4.1 10.8 8.7
Full-time, total
103 101 94 93 95
Part-time, total 9 6 4 9 8
Age and gender distribution, no.
18–30 years total, (F/M)
24 (5/9) 23 (6/17) 22 (8/14) 25 (10/15) 23 (9/14)
31–40 years total, (F/M) 27 (10/17) 24 (10/14) 22 (8/14) 28 (13/15) 31 (13/18)
41–50 years total, (F/M) 30 (14/16) 28 (12/16) 26 (10/16) 22 (8/14) 20 (7/13)
51–60 years total, (F/M) 26 (9/17) 30 (12/18) 26 (9/17) 26 (8/18) 27 (11/16)
61– years total, (F/M) 5 (4/1) 2 (2/0) 2 (2/0) 1 (1/0) 2 (1/1)
Total 112 (42/70) 107 (42/65) 98 (37/61) 102 (40/62) 103 (41/62)
Average age of employees, years 42.4 42.5 42.4 41.2 41.3
Employment relationships
based on gender, no. and %
Female
42 (38%) 42 (39%) 37 (38%) 40 (39%) 41 (40%)
Male 70 (62%) 65 (61%) 61 (62%) 62 (61%) 62 (60%)
Employee turnover (%) 5.8% 3.0% 11.7% 8.7% 4.2%
Sick leaves during the year, day per person
5.9 4.7 4.6 1.7 2.7
Work accidents* 2 0 4 0 0
Injury rate** 1.9 0 4.2 0 0
Lost day rate %** 0 0 0.14 0 0
Work well-being
Job satisfaction and well-being at work***
4.3 4.4 4.3 4.3 4.3
eNPS value**** 36 41 48 44 49
* A work accident is an accident that occurs at the workplace, on the way from home to work or vice versa, or during a business or other trip ordered by the employer.
** Injury rate: Accidents at work / total number of personnel. Lost Day Rate = Total number of sick days lost due to accidents at work / total number of working days of all
personnel during the year.
*** Rating scale: “poor” (1–2.4), “adequate” (2.5–2.9), “satisfactory” (3–3.4), “good” (3.5–3.9) and “excellent” (4–5).
**** Scale from -100 to +100: “Good” (0 - +20), “Excellent” (over 20) and “Top score” (over 40). eQ has monitored and reported the eNPS score since 2019.
SATISFACTION
AND WELLBEING
AT WORK
.
SCALE
NUMBER OF
PERSONNEL
27eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Principles related to human rights violations and child labour
eQ Group has not drawn up separate principles related to human rights
violations or child labour. All operations of the Group are located in Finland,
at one single office. Therefore, the Group can monitor practices related to the
employees in a reliable manner. The implementation of human rights in the
operations of the investment areas is monitored in all eQ investment areas.
Board diversity
eQ Plc’s Board of Directors aims to promote the diversity of the Board’s
composition for its part. When assessing diversity, the Board takes into
consideration, for instance, the age and gender of the directors, their education
and professional experience, individual characteristics and experience that
is essential with regard to the task and the company operations. eQ Plc has
defined as goal regarding the equal representation of genders on the Board
that there should always be representatives of both genders on eQ Plc’s Board
of Directors.
During the 2024 financial period, eQ Plc’s Board met the preconditions set for
the company diversity, including the goal of having representatives of both
genders on the Board. The following persons were on eQ Plc’s Board of Directors
during the 2024 financial period from the Annual General Meeting: Georg
Ehrnrooth (Chair from 27 October 2024), Janne Larma (Chair until 26 October
2024), Päivi Arminen, Nicolas Berner, Timo Kokkila and Tomas von Rettig. The
directors have versatile experience from sectors that are of importance to
the company, such as the investment and finance sector and the real estate
sectors, and collectively sufficient knowledge of sustainability issues. In
addition, the diverse work experience and education of the directors as well as
their international experience complement each other. eQ Plc’s Annual General
Meeting elects the directors.
The company’s Board of Directors monitored diversity issues during the 2024
financial period.
Diversity of the Board of Directors on 31 December 2024:
Directors, total 6 100%
Female 1 17%
Male 5 83%
Board members who are independent of the company 4 67%
Board members who are independent
of the major shareholders 3 50%
28eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Good governance at eQ Group
Board – separation of powers and transparent practices
In addition to acts and regulations applicable to listed companies, in 2024 eQ
Plc complied with the Finnish Corporate Governance Code 2020 published
by the Securities Market Association on 1 January 2020. The entire Code
is publicly available on the website of the Securities Market Association
at (www.cgfinland.fi). eQ Plc draws up annually a Corporate Governance
Statement required by the Corporate Governance Code. The Corporate
Governance Statement, the Remuneration Report for Governing Bodies, and
other information that shall be disclosed in accordance with the Corporate
Governance Code as well as the company’s financial statements, report by
the Board of Directors and auditors’ report are available on eQ Plc’s website
(https://www.eq.fi/en/about-eq-group).
eQ’s largest shareholders, who as a rule represent at least one-half of eQ’s
largest shareholders, who as a rule represent at least one-half of the number
of shares in the company and the votes these represent, submit a proposal
to the Annual General Meeting (AGM) on the number of Board members, the
members of the Board of Directors and their remuneration. eQ Plc’s Annual
General Meeting is ultimately responsible for the election of Board members
and preparations for the election. The company’s Articles of Association do not
include a provision on appointment of Board members in any specific order.
Each person elected as a member of the Board must have the competence
required by the task and enough time to handle it. The company contributes to
the work of the Board by providing Board members with sufficient information
about the company’s operation. Five to seven members can be elected to eQ
Plc’s Board of Directors, and the members of the Board select a chair from
among their number. Board members are elected for one year at a time. In
the Corporate Governance Report, the company states the number of Board
meetings held during the financial period and the members’ average attendance
at Board meetings.
The company discloses the following personal and ownership information on
Board members: name, gender, year of birth, education, main occupation, key
work experience, international experience, start date of Board membership,
key positions of trust, and shareholdings in the company. The statement
also includes any dependency of the company or the company’s significant
shareholders, and any grounds why the Board member is not deemed to
be independent. Members of eQ Plc’s Board of Directors must provide the
Board and the company with adequate information so their competence and
independence can be evaluated and report any changes in this information.
The Board’s charter, the minutes of meetings and other documents on Board
operations are not publicly available. The main tasks included in the charter
are listed in the Corporate Governance Statement. The company discloses
information about events that concern the Group in accordance with valid
legislation and the company’s disclosure policy. The company’s disclosure policy
is available on eQ’s website (https://www.eq.fi/en/about-eq-group).
29eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Remuneration
eQ’s remuneration system is based on the strategy and long-term goals defined
by the Board, and it is one of the major tools used for reaching the Group’s
long-term and short-term strategic goals. The remuneration system contributes
to good, efficient and comprehensive risk management within eQ Group. The
remuneration systems must also take into account sustainability risks related
to eQ Group and its business operations. Comprehensive risk management
is aimed at taking into account the goals, values and interests of group
companies, the funds managed, and the investors, among other parties.
In addition to eQ Group’s Remuneration Principles, eQ Plc has a Remuneration
Policy for Governing Bodies required by the Corporate Governance Code,
which accounts for the remuneration of the Board and the CEO. The
Remuneration Policy for Governing Bodies is presented to the Annual General
Meeting for consideration at least every four years and always when major
changes have been made in it. eQ Group’s Remuneration Principles and the
Remuneration Policy for Governing Bodies can be found on eQ’s website
(https://www.eq.fi/en/about-eq-group/hallinnointi/palkitseminen).
eQ Plc publishes an annual Remuneration Report for Governing Bodies at the
same time as the Annual Report. The 2024 Remuneration Report for Governing
Bodies was drawn up in accordance with the 2025 Corporate Governance
Code for listed companies, and eQ Plc’s Board of Directors reviewed it on
3 February 2025.
The Remuneration Report for Governing Bodies accounts for the remuneration
paid to the Board of Directors and CEO during the previous financial period,
how the Remuneration Policy for Governing Bodies has been applied during
the previous financial period and how remuneration promotes the company’s
financial success on a longer term. The Remuneration Report also compares
the development of the Board’s and CEO’s remuneration with the development
of the average remuneration of company employees and the company’s
financial development during the five previous financial periods. eQ Plc’s
Remuneration Report for Governing Bodies is available on eQ’s website
(https://www.eq.fi/en/about-eq-group/hallinnointi/palkitseminen).
eQ Group’s Code of Conduct was updated in the autumn of 2021. The themes
of eQ Group’s Code of Conduct are:
• Complying with regulation and acting correctly
• Clients’ interests, eQ’s interests, and management of conflicts of interest
• Information security and data protection
• Intervention in abuses and problems
• Trust and confidentiality
• Responsibility and responsible investment activities
• Equality, diversity and respect
• Cooperation with stakeholders
• Reputation management
• Cooperation and development of competence
• Occupational safety and wellbeing at work
• Prevention of financial crimes
• Offering and accepting gifts and hospitality
• Sponsorship, donations and partnerships
The Code of Conduct is available on eQ’s website
(https://www.eq.fi/en/about-eq-group/hallinnointi/code-of-conduct).
In addition to the Remuneration Policy and Report for Governing Bodies,
eQ presents in the remuneration section of its website information
about the remuneration principles for the Board, CEO and the rest of the
Management Team. Information about the remuneration of the Board,
CEO and the rest of the Management Team is available on eQ’s website
(https://www.eq.fi/en/about-eq-group/hallinnointi/palkitseminen).
Application of collective labour market agreements
No collective agreements are applicable to eQ Group’s employees, nor are they
covered by the universally applicable collective agreement in Finland.
Code of Conduct
eQ Group’s Code of Conduct describes joint rules based on eQ’s values and the
general principles guiding behaviour, decision-making and business operation
that every eQ employee must follow. The Code of Conduct also serves as a
top-level instruction for eQ’s other internal guidelines that contain detailed
operational instructions from various sectors. Still, the Code of Conduct cannot
cover all situations we encounter, so advice must always be asked in new and
unclear situations. By honest, open, competent and efficient action, eQ wants
to earn the trust and respect of clients, other stakeholders, the surrounding
society and the financial markets.
eQ requires its partners to act in a responsible manner. All agreements in real
estate investments (such as on building contracts and with service providers)
include eQ’s Code of Conduct for suppliers as an enclosure. eQ Group has found
other, separate Codes of Conduct concerning subcontractors unnecessary due
to the small number of direct subcontractors and their minor significance for
the business operation.
30eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Taxes, 1,000 EUR 2024 2023 2022 2021 2020
Taxes paid
Income tax, Finland 7,120 8,308 9,437 9,560 6,209
Effective tax rate 20.6% 20.9% 20.6% 20.1% 20.2%
Charges of tax-like nature payable by the employer
(employee pension, social security and unemployment charges)
3,882 4,435 4,420 3,317 2,978
Taxes remitted
Withdrawal from salaries, Finland
8,780 8,770 9,018 7,102 6,483
Charges of tax-like nature payable by the employee
(employee pension, unemployment charges)
1,801 2,032 2,163 1,529 1,405
Value-added tax paid, Finland
427 453 536 658 393
Tax withdrawn from dividend and equity repayment, Finland
1,339 2,588 1,762 1,246 1,217
As employer, eQ pays charges related to pension, unemployment and social
security and remits the withholding from the salaries to tax authorities. The
charges of tax-like nature related to the personnel that eQ Group paid in 2024
totalled EUR 3,9 million (2023: EUR 4,4 million).The withholdings that eQ made
from the salaries amounted to EUR 8,8 million (2023: EUR 8,8 million) and the
other tax-like charges totalled EUR 1,8 million (2023: EUR 2,0 million).
The value-added tax remitted by eQ Group in 2024 totalled EUR 0,4 million
(2023: EUR 0,5 million). In addition, part of the value-added tax included in
purchases is paid by eQ, as the operations are partly exempted from VAT.
The taxes withdrawn from the dividend and equity repayment that eQ Plc paid
in 2024 totalled EUR 1,3 million (2023: EUR 2,6 million).
eQ has not received any public subsidies for its operations.
Tax transparency
As part of this Sustainability Report, eQ reports its financial impact on society
in form of taxes and charges of tax-like nature. Transparent reporting is part
of responsible operations and governance. Transparent reporting is part of
responsible operations and governance. eQ Group does not have a separate tax
strategy approved by the Board. The Group pays its taxes to Finland.
eQ Group is a major taxpayer. In 2024, the income tax for eQ’s taxable profit
paid in Finland totalled EUR 7,1 million (2023: EUR 8,3 million). The Group’s
effective tax rate was 20,6 % (2023: 20,9 %).
External validation of the report
This report has not been validated by an external party.
The Firm of Authorised Public Accountants KPMG Oy Ab has audited eQ Plc’s
financial statements for the financial period 1 January to 31 December 2024.
eQ Plc’s Board and CEO are responsible for the other information in the Annual
Report. This report is included in eQ’s Annual Report and treated as ”other
information”, as defined in the Auditors’ Report. Even though the auditors
do not audit other information, they have in their report assessed whether
the other information essentially conflicts with the financial statement and
information obtained by the auditors or if it otherwise seems to be incorrect for
essential parts.
31
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Operating environment
At the beginning of 2024, there was optimism that inflation would slow down, and
central banks would lower their key interest rates in the first quarter of the year.
However, economic growth in the US in particular continued to be stronger than
expected and expectations of lower interest rates were dispelled. As usual, growth
in Europe was markedly weaker and growth forecasts were lowered. The European
Central Bank (ECB) made its first interest rate cut of 0.25 percentage points in June.
The mood in the US changed in August, when US labour market data came in well
below expectations. Panic took over the markets for a moment and, especially in
the interest rate markets, very large interest rate cuts were priced in for a while.
The US Federal Reserve (Fed) cut its interest rate by 0.5 percentage points in
September and the ECB also cut its key interest rate by 0.25 percentage points. Quite
soon, the market realised that expectations of interest rate cuts were overstated. US
economic growth remained strong, and inflation remained a concern. Despite this,
both the Fed and the ECB cut their policy rates twice more, by 0.25 percentage points
in autumn 2024.
Trump’s election as US President further strengthened growth expectations, while
markets speculated on Trump’s policies on foreign trade tariffs. China’s economic
growth remained within the central government’s targets but required stimulus
measures throughout the year. Especially after Trump’s election, the dollar started to
grow stronger against other major currencies.
Report by the Board of Directors
1 January to 31 December 2024
2024 was an excellent year for equity returns, but regional differences were
exceptionally large. The best return was achieved by US equities, which returned as
much as 32.8% in euro terms (24.5% in dollars), while in Europe the return, measured
by the MSCI Europe, was 8.6%, and the Finnish stock market returned 0.1% negative.
In emerging stock markets, the return was 14.7%, but even in emerging markets, the
differences between countries were very large.
Interest income was also clearly positive for the full year. The best return was
achieved on euro-denominated High Yield bonds, which yielded 8.6% at index level.
Euro-denominated corporate bonds from emerging countries returned 4.9%, while
European investment grade bonds almost matched this, returning 4.7%. The yield on
euro government bonds was 1.8%.
Major events during the financial period
eQ Plc’s Annual General Meeting was held on 21 March 2024. Päivi Arminen, Nicolas
Berner, Georg Ehrnrooth, Timo Kokkila, Janne Larma and Tomas von Rettig were
re-elected to the Board.
During the period under review, the number of eQ Plc’s shares increased with
new shares subscribed for with option rights. The number of shares increased by
125,000 shares on 27 February 2024, by 354,000 shares on 19 March 2024 and by
182,500 shares on 14 May 2024. After the changes, the number of eQ Plc shares
was 41,407,198.
Jacob af Forselles was appointed as the Managing Director of Advium Corporate
Finance Ltd and as a member to eQ Group’s Management Team on 3 April 2024. He
started in his position at the beginning of August.
Mikko Koskimies, CEO of eQ Plc and Managing Director of eQ Asset Management Ltd,
left these positions at the end of October 2024 due to a serious illness. Koskimies
passed away in November. eQ Plc’s Board of Directors decided that the company’s
full-time Chair of the Board Janne Larma will become Acting CEO of eQ Plc and will
chair the eQ Group’s Management Team. Georg Ehrnrooth, Vice Chair of eQ Plc’s
Board of Directors, will continue to serve as Chair of eQ Plc’s Board of Directors, and
Janne Larma will continue as a member of the Board. Tero Estovirta, deputy Managing
Director of eQ Asset Management Ltd, was appointed Managing Director of eQ Asset
Management Ltd and the Board of Directors of eQ Plc also appointed him as a member
of the eQ Group’s Management Team.
Group net revenue and result development
During the period under review, the Group’s net revenue totalled EUR 65.6 million
(EUR 70.9 million from 1 Jan. to 31 Dec. 2023). The Group’s net fee and commission
income was EUR 63.8 million (EUR 70.8 million). The Group’s net investment income
from own investment operations was EUR 1.7 million (EUR -0.1 million), including
the return from private equity and real estate fund investments and liquid fixed
income funds.
33eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
The Group’s expenses and depreciation totalled EUR 31.1 million (EUR 31.1 million).
Personnel expenses were EUR 24.8 million (EUR 25.4 million), other administrative
expenses EUR 2.9 million (EUR 2.5 million) and the other operating expenses were
EUR 2.3 million (EUR 1.9 million). The salary expenses fell from the year before due to
result-related remuneration. Depreciation was EUR 1.2 million (EUR 1.3 million).
The Group’s operating profit was EUR 34.5 million (EUR 39.7 million) and the profit for
the period was EUR 27.4 million (EUR 31.5 million).
Business Areas
Asset Management
eQ Asset Management offers versatile and innovative asset management services to
both institutions and individuals. The Asset Management segment consists of the
investment firm eQ Asset Management Ltd and other Group companies engaged in
asset management operations, the most important of which is eQ Fund Management
Company Ltd.
Responsibility and sustainability are a key part of eQ Asset Management’s investment
activities and processes. eQ Asset Management once again achieved excellent results
in the 2024 PRI (the UN Principles for Responsible Investment) assessment. eQ
succeeded much better than the median in all six sections the company reported
and obtained the highest star rating, five stars, for listed shares, corporate bonds,
real estate investments and private equity investments. eQ provides its clients with
comprehensive reports on the implementation of sustainability.
eQ Asset Management’s utilisation rose in the 2024 SFR survey. The survey is
conducted every year, and its participants are the 100 largest institutional investors
in Finland. 68 per cent of the survey participants use eQ services. In alternative
investments, eQ is by far the most used asset manager. eQ’s quality rating declined in
2024, which the study attributes primarily to weaker investment returns in the real
estate segment. The differences in overall quality scores between the major operators
are quite small.
Traditional asset management
At the end of the period, eQ had 23 traditional mutual funds registered in Finland.
eQ’s fixed income funds posted good returns in 2024. The best returns came from
the eQ High Yield and eQ Euro Investment Grade funds. Apart from eQ Government
Bond, the returns of all of our fixed income funds surpassed the return of their
comparison index. The best performing funds relative to their benchmark index were
eQ Euro Investment Grade and eQ Emerging Markets Corporate Bond funds. eQ’s
best performing equity funds were eQ Frontier Markets, eQ Global and eQ Emerging
Dividend funds. The best performing fund relative to its benchmark index during the
year was the eQ Frontier fund. The eQ Finland fund received the 2024 Best Fund
award from Morningstar. The winners were selected on the basis of returns for 1, 3
and 5 years and risks for 3 and 5 years. eQ was also successful at the LSGE Lipper
Fund Awards in the Nordic countries. eQ Finland was the best fund over both 5 and
10 years, eQ Europe Dividend over 10 years and eQ Nordic Small Cap over 5 years in
their respective categories.
Of the funds that eQ manages itself, during 2024 38 per cent gave a better return
than its benchmark index, and the figure for the last three years was 62 per cent.
The average Morningstar rating of funds managed by eQ was 2.8 stars at the end of
the quarter. The returns of the discretionary asset management portfolios that eQ
manages varied between approximately +5.9 and +13.0 per cent during the period,
based on the allocation of the investment portfolio. The return of portfolios that only
invest in Finnish shares was +0.1 per cent. The ESG ratings of the eQ funds are better
than the average, and eQ’s listed shares and corporate loans obtained the highest
rating in the latest PRI assessment.
Real estate asset management
Net subscriptions in the eQ Commercial Properties fund were EUR -24 million during
the period under review. At the end of the period, the size of the fund was EUR 561
million, and real estate property around EUR 1.0 billion. The return of the fund in
2024 period was -8.3 per cent and since establishment 4.2 per cent p.a. The fund has
approximately 2,000 unit holders. eQ Fund Management Company Ltd postponed
the payment of eQ Commercial Properties 30 June 2024 and 31 December 2024
redemptions in accordance with the Rules of the fund.
Net subscriptions in eQ Community Properties in the review period were EUR -22
million. At the end of the period, the size of the fund was EUR 1,132 million, and real
estate property around EUR 1.8 billion. The return of the fund in 2024 period was
0.8 per cent and since establishment 6.2 per cent p.a. The fund has approximately
4,100 unit holders. eQ Fund Management Company Ltd postponed the payment of eQ
Community Properties 31 December 2024 redemptions in accordance with the Rules
of the fund.
During 2023 and 2024, eQ’s real estate fund returns have been negatively affected by
the rise in real estate yield expectations due to the strong rise in interest rates. As a
rule, yield requirements did not rise in the final quarter of the year.
eQ Residential fund makes investments in the Helsinki metropolitan area, Tampere,
and Turku. The fund targets complete residential buildings, the last of which was
completed during the third quarter of 2024. During 2024, eQ Residential fund sold
approximately 500 finished homes with two transactions to lower the fund’s LTV level.
This is why the assets managed by closed real estate funds fell by around EUR 100
million during the period. The last property in eQ Residential II was completed during
the third quarter of 2024. Unlike eQ Community Properties and eQ Commercial
Properties, eQ Residential funds are intended for professional investors only, and they
have a closed-end fund structure.
In 2024, eQ’s real estate funds participated in the GRESB sustainability assessment
already for the sixth time. The results improved further in 2024 and exceed both the
average results of companies participating in the GRESB assessment and the results
of the funds’ peers. The real estate funds also obtained the highest rating in the 2024
PRI assessment.
Overall, eQ’s real estate funds had real estate property worth approximately
EUR 3.1 billion at the end of 2024, and eQ has become one of the largest Finnish
real estate investors.
Private Equity asset management
The first closing of the new eQ PE XVI North fund was held in early March 2024 at
EUR 158 million and the final closing in December at EUR 227 million. eQ PE XVI North
makes investments in private equity funds that invest in unlisted, small, and mid-sized
growth companies in Northern Europe. Simultaneously we established our fifth private
equity secondary fund, eQ PE SF V, and its first closing was at EUR 43 million and final
closing in December at EUR 85 million. The secondary market investments of eQ PE
XIV North are carried out through eQ PE SF V. The investment focus of eQ PE SF V is,
both geographically and as for the size of companies, the same as that of eQ PE XIV
34eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
North. Launched in October 2023 with an initial closing of USD 20 million, the eQ VC
II Venture Capital fund grew to USD 54 million at the final closing in December 2024.
eQ’s 2024 PRI results for private equity section were excellent. The investments
received the highest rating.
At the end of the review period, the assets in Private Equity, Venture Capital and
Private Credit funds managed by eQ totalled EUR 3,295 million (EUR 2,973 million)
and the assets managed under Private Equity programme funds were EUR 1,019
million (EUR 1,009 million).
Assets under management
The assets managed by eQ Asset Management totalled EUR 13,399 million at the end
of the period. Growth during the period was EUR 482 million (EUR 12,917 million on 31
Dec. 2023). The total assets under management of domestically registered traditional
equity, fixed income, and balanced funds, as well as asset management portfolios
and partner funds, amounted to EUR 4,058 million (EUR 3,766 million) at the end of
the review period. The assets managed by the real estate funds totalled EUR 2,036
million (EUR 2,251 million). Assets managed by the Private Equity, Venture Capital and
Private Credit funds and Private Equity programme funds totalled EUR 4,314 million
(EUR 3,982 million).
Assets under management, MEUR 1–12/2024 1–12/2023 Change
eQ mutual funds 3,848 3,843 0%
of which eQ equity, fixed income and
balanced funds 2,155 1,993 8%
of which eQ real estate funds 1,693 1,850 -8%
Closed-end real estate funds 344 401 -14%
Funds of partners and other asset management 1,903 1,773 7%
eQ private equity funds 3,295 2,973 11%
Private Equity programme funds 1,019 1,009 1%
Total excl. reporting services 10 408 10,000 4%
Private Equity reporting services 2,990 2,917 3%
Total 13,399 12,917 4%
As for eQ Residential funds, which are included in closed-end funds, the total amount
of uncalled commitments and gross asset value (GAV) is reported as assets under
management.
Result of the Asset Management segment
During the review period, the net revenue of the Asset Management segment
decreased by 13 per cent to EUR 58.5 million (EUR 66.9 million from 1 Jan. to 31 Dec.
2023) and the operating profit by 19 per cent to EUR 33.7 million (EUR 41.4 million).
The management fees fell by 10 per cent to EUR 55.6 million (EUR 62.0 million)
and the performance fees fell by 35 per cent to EUR 3.6 million (EUR 5.4 million).
Performance fees typically fluctuate strongly per quarter and financial period.
eQ accrues the catch-up share of private equity funds’ performance fee in the income
statement. The total amount of the catch-up share accrued by the end of 2024 was
EUR 15.4 million. The accrual recognised in the financial year 2024 was EUR 5.4
million. In addition, in the last quarter of the year, eQ recognised a EUR 1.8 million
write-down related to the pre-2024 accrued performance fee of the eQ PE SF II fund.
The final return on this fund is estimated to be below the benchmark rate of return
required for a performance fee. The estimated total amount of future performance
fees of private equity funds was approximately EUR 165 million at the end of 2024
(EUR 142 million on 31 Dec. 2023). More information about the estimated returns and
performance fees is available in the annual report.
The cost/income ratio of Asset Management segment was 42.3 per cent (37.9%).
Calculated as full-time resources, the segment had 82 employees at the end of 2024.
Asset Management 1–12/2024 1–12/2023 Changes
Net revenue, MEUR 58.5 66.9 -13%
Operating profit, MEUR 33.7 41.4 -19%
Cost/income ratio, % 42.3 37.9 12%
Number of personnel as full-time
resources, average 82 80 3%
Fee and commission income,
Asset Management, MEUR 1–12/2024 1–12/2023 Change
Management fees
Traditional asset management
9.4 8.8 6%
Real estate asset management 27.3 35.6 -23%
Private Equity asset management 18.9 17.6 8%
Management fees, total 55.6 62 -10%
Performance fees
Traditional asset management
0 0 -39%
Real estate asset management - -0.7 n/a
Private Equity asset management 3.5 6.1 -42%
Performance fees, total 3.6 5.4 -35%
Other fee and commission income 0.1 0.1 -34%
Fee and commission income, total 59.3 67.5 -12%
Corporate Finance
In the Corporate Finance segment, Advium Corporate Finance acts as advisor in
mergers and acquisitions, large real estate transactions and equity capital markets.
In 2024, the value of mergers and acquisitions worldwide remained at the same level
as in 2023, but below the long-term average. There were slightly fewer mergers and
acquisitions in Finland in 2024 than in 2023. Real estate transactions in Finland
remained very low during 2024, and even below the low level of the previous year.
The main factors contributing to low activity in real estate transactions were
persistently high interest rates and limited availability of finance.
During 2024, Advium acted as advisor in four published M&A transactions and one
published real estate transaction: Advising Aspo Plc on its minority investment in OP
Suomi Infra, advising the eQ Commercial Properties fund on the sale of the Bredis
retail park, advising an acquiring consortium on the public offer for Purmo Group,
advising Innofactor’s Board on its public cash offer for the company and advising
Forcit on its agreement to acquire part of Orica’s Finnish and Swedish businesses.
During the review period, Jacob af Forselles was appointed as the Managing Director
of Advium Corporate Finance Ltd and as a member to eQ Group’s Management Team.
He started in his position at the beginning of August.
35eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Result of the Corporate Finance segment
During the period under review, Advium’s net revenue totalled EUR 5.3 million
(EUR 3.9 million 1 Jan. to 31 Dec. 2023). Operating profit was EUR 1.5 million
(EUR 0.7 million). The segment had 17 employees at the end of the period.
It is typical of corporate finance business that success fees have a considerable
impact on invoicing, due to which the result pf the segment varies considerably from
quarter to quarter.
Corporate Finance 1–12/2024 1–12/2023 Change
Net revenue, MEUR 5.3 3.9 34%
Operating profit, MEUR 1.5 0.7 125%
Cost/income ratio, % 71.6 83 -14%
Number of personnel as full-time
resources, average 17 16 6%
Investments
The business operations of the Investments segment consist of private equity and real
estate fund investments made from eQ Group’s own balance sheet.
During the period, the operating profit of the Investments segment was EUR 1.1 million
(EUR -0.6 million 1 Jan. to 31 Dec. 2023). At the end of the period, the fair value of the
investments was EUR 17.0 million (EUR 16.6 million on 31 Dec. 2023) and the amount of
the remaining investment commitments was EUR 6.0 million (EUR 7.2 million). During
the period under review, eQ Plc made a EUR 1.0 million investment commitment in
the eQ PE XVI North fund.
During the period, the investment objects returned capital for EUR 1.2 million (EUR 1.4
million from 1 Jan. to 31 Dec. 2023) and distributed a profit of EUR 1.3 million (EUR 0.8
million). Capital calls totalled EUR 1.6 million (EUR 2.3 million). The net cash flow from
investments during the period was EUR 0.8 million (EUR -0.1 million). The value changes
of investments recognised through profit or loss were EUR -0.0 million during the period
(EUR -1.2 million).
The income of eQ’s Investments segment is recognised due to factors independent of
the company. Due to this, the segment’s result may vary considerably.
Investments 1–12/2024 1–12/2023 Change
Operating profit, MEUR 1.1 -0.6 287%
Fair value of investments, MEUR 17.0 16.6 3%
Investment commitments, MEUR 6.0 7.2 -16%
Net cash flow of investments, MEUR 0.8 -0.1 649%
Balance sheet, financial position, and capital adequacy
At the end of the period, the consolidated balance sheet total was EUR 95.1 million
(EUR 100.3 million on 31 Dec. 2023). Equity at the end of the period was EUR 73.3
million (EUR 75.4 million). During the period, the shareholders’ equity was influenced
by the profit for the period of EUR 27.4 million, the dividend distribution of EUR -33.1
million, the subscription for new shares with option rights of EUR 2.6 million and
the accrued expense of EUR 1.0 million related to an option scheme and entered in
shareholders’ equity.
At the end of the period, liquid assets totalled EUR 8.0 million (EUR 22.9 million) and
liquid investments in mutual funds EUR 9.0 million (EUR 10.5 million).
The lease liability related to premises and entered in the balance sheet was EUR 4.0
million (EUR 5.0 million) at the end of the period, the share of short-term liabilities
being EUR 1.3 million (EUR 1.2 million).
Short-term interest-free debt was EUR 17.8 million (EUR 19.9 million). The Group had
no interest-bearing loans at the end of the period (EUR - million). eQ’s equity to assets
ratio was 77.1% (75.2%).
The ratio between total capital and the capital requirement according to eQ Group’s
capital adequacy calculations was 295.6% (252.8%on 31 Dec. 2023). eQ Asset
Management Ltd as the investment firm and eQ Plc as the holding company apply the
IFD/IFR regime. The most restrictive capital requirement for eQ is defined on the basis
of fixed overheads at the end of the period. The minimum capital requirement based
on fixed overheads was EUR 5.7 million. At the end of the period, the Group’s total
capital based on capital adequacy calculations totalled EUR 16.7 million (EUR 13.6
million). Detailed information on capital adequacy is available in the annual report.
Capital adequacy
EUR 1,000
IFR
31 Dec. 2024
eQ Group
IFR
31 Dec. 2023
eQ Group
Equity 73,330 75,436
Common equity tier 1 (CET 1) before deductions 73,330 75,436
Deductions from CET 1
Intangible assets
-29,218 -29,251
Unconfirmed profit for the period -27,405 -31,524
Dividend proposal by the Board* 0 -1,073
Common equity tier 1 (CET 1) 16,707 13,588
Additional tier 1 (AT1) 0 0
Tier 1 (T1 = CET1 + AT1) 16,707 13,588
Tier 2 (T2) 0 0
Total capital (TC = T1 + T2) 16,707 13,588
Own funds requirement according
to the most restrictive requirement (IFR) 5,652 5,375
Fixed overhead requirement 5,652 5,375
K-factor requirement 398 371
Absolute minimum requirement 150 150
Risk-weighted items total (Total risk exposure) 70,655 67,188
Common equity tier (CET1) / own funds requirement, % 295.60% 252.80%
Tier 1 (T1) / own funds requirement, % 295.60% 252.80%
Total capital (TC) / own funds requirement, % 295.60% 252.80%
Common equity tier 1 (CET1) / risk weights, % 23.60% 20.20%
Tier 1 (T1) / risk weights, % 23.60% 20.20%
Total capital (TC) / risk weights, % 23.60% 20.20%
Excess of total capital compared with the minimum level 11,055 8,213
Total capital compared with the target level (incl. a 25%
risk buffer for the requirement) Total capital compared
with the target level (incl. a 25% risk buffer for the
requirement) 9,642 6,869
*The dividend and equity repayment proposed by the Board exceeding the profit for the period.
36eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Major risks and uncertainties related to the operations
The Group’s major single risk is the dependence of the result on changes in the
external operating environment. The result of the Asset Management segment
depends on the development of the assets under management, which is dependent
of the development of the capital market, for instance. On the other hand, the
management fees of private equity funds and closed real estate funds are based
on long-term agreements that produce a stable cash flow. The realisation of the
performance fee income that is dependent on the success of the investment
operations also influences result development. The performance fees of the asset
management operations may consist of performance fees paid by mutual funds and
real estate funds, profit shares that private equity funds pay to the management
company, and performance fees from asset management portfolios. Performance fees
may vary considerably by quarter and financial period.
Success fees, which depend on the number of mergers and acquisitions and real
estate transactions, have a considerable impact on the result of the Corporate
Finance segment. These vary considerably within one year and are dependent on
economic trends.
The risks associated with eQ Group’ own investment operations are the market risk
and currency risk, for instance. Of said risks, the market risk has the greater impact on
investments. The company’s own investments are well diversified, which means that
the impact of one investment made by one individual fund in one single investment
object on the return of investments is often small. The income from eQ Group’s own
investment operations is recognised in different quarters due to factors independent
of the company, depending on the exits and value changes of the funds. The income
from investment operations and changes in value may vary considerably by quarter
and financial period.
The Group’s liquidity is monitored continuously, and good liquidity is maintained by
only investing the surplus liquidity in objects with a low risk, which can be turned into
cash rapidly and at a clear market price. The liquidity is influenced by the capital calls
and returns of the own private equity and real estate fund investments.
Board of Directors, Management Team, CEO and auditor
At the Annual General Meeting of eQ Plc on 21 March 2024, Päivi Arminen, Nicholas
Berner, Georg Ehrnrooth, Timo Kokkila, Janne Larma and Tomas von Rettig were
re-elected for a term of office that will end at the close of the next Annual General
Meeting. At its constituent meeting immediately after the Annual General Meeting,
the Board elected Janne Larma Chair of the Board and George Ehrnrooth Deputy Chair
of the Board.
eQ Plc’s Board had 14 meetings during the financial period 2024, average attendance
being 99%.
On 31 December 2024, eQ Group’s Management Team has consisted of
the following persons:
• Janne Larma, Acting CEO of eQ Plc
• Tero Estovirta, eQ Asset Management Ltd, CEO
• Jacob af Forselles, Advium Corporate Finance Oy, CEO
• Staffan Jåfs, eQ Asset Management Ltd, Director, Head of Private Equity
• Antti Lyytikäinen, eQ Plc, CFO
• Juha Surve, eQ Asset Management Ltd, Director, Group General Counsel
Mikko Koskimies served as the CEO until 27 October 2024, when he had to leave
his position due to serious illness. Janne Larma, who has been the full-time Chair
of the Board since 27 October 2024, has been appointed Acting CEO and Chair of
the Management Team. Janne Larma will also continue as a member of the Board of
Directors. Georg Ehrnrooth will serve as Chair of eQ Plc’s Board of Directors.
The company auditor was KPMG Oy Ab, a firm of authorized public accountants,
with Tuomas Ilveskoski, APA, as auditor with main responsibility.
Personnel
The Group had 104 employees at the end of the period (101 employees on 31 Dec.
2023), calculated as full-time resources. Calculated as full-time resources, the Asset
Management segment had 82 (80) employees and the Corporate Finance segment 17
(16) employees. Group administration had 5 (5) employees.
The overall salaries paid to the employees of eQ Group during the period totalled
EUR 24.8 million (EUR 25.4 million from 1 Jan. to 31 Dec. 2023). The salary expenses
fell from the year before due to result-related remuneration.
Loans to related parties
eQ Plc’s receivables from related parties have been described in further detail in
Note 32 to the Financial Statements.
eQ Plc’s share
Authorisations
The AGM authorised the Board of Directors to decide on a share issue and/or
the issuance of special rights entitling to shares referred to in Chapter 10 Section
1 of the Limited Liability Companies Act, in one or several transactions, comprising
a maximum total of 3,500,000 new shares. The amount of the authorisation
corresponded to approximately 8.59 per cent of all shares in the company on
the date of the notice of the AGM.
The authorisation can be used in order to finance or carry out potential acquisitions
or other business transactions, to strengthen the balance sheet and the financial
position of the company, to carry out the company’s incentive schemes or for any
other purposes decided by the Board. Based on the authorisation, the Board shall
decide on all matters related to the issuance of shares and special rights entitling
to shares referred to in Chapter 10 Section 1 of the Limited Liability Companies Act,
including the recipients of the shares or the special rights entitling to shares and
the amount of the consideration to be paid. Therefore, based on the authorisation,
shares or special rights entitling to shares may also be issued to certain persons, i.e.
in deviation of the shareholders’ pre-emptive rights as described in said Act. A share
issue may also be executed without payment in accordance with the preconditions
set out in the Limited Liability Companies Act. The authorisation cancels all previous
corresponding authorisations and is effective until the next AGM, no longer than 18
months, however.
37eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Shares and share capital
At the end of the period on 31 December 2024, the number of eQ Plc’s shares was
41,407,198 and the share capital was EUR 11,383,873.00.
During the period under review, the number of eQ Plc’s shares increased by new
shares subscribed for with option rights 2018. The number of shares increased by
125,000 shares on 27 February 2024, by 354,000 shares on 19 March 2024 and by
182,500 shares on 14 May 2024. The subscription price of the new shares totalled
EUR 2,586,230.00. The entire subscription was entered in the reserve for invested
unrestricted equity.
The closing price of eQ Plc’s share on 31 December 2024 was EUR 12.95 (EUR 15.58 on
31 Dec. 2023). The market capitalisation of the company was thus EUR 536.2 million
(EUR 634.8 million) at the end of the period. During the review period, 929,522 shares
were traded on Nasdaq Helsinki (1,113,557 shares from 1 Jan. to 31 Dec. 2023). In
euros, the turnover was EUR 12.8 million (EUR 21.2 million).
Option schemes
At the end of the period, eQ Plc had one valid option scheme - option scheme 2022.
The option scheme is intended as part of the commitment system of the Group’s
key personnel.
The 2018 option scheme that was valid at the beginning of the year ended during the
period, and all outstanding options of the 2018 option scheme were exercised as a
result of the share subscriptions made.
Option scheme 2022:
At the end of the period, altogether 830,000 options had been allocated from option
scheme 2022. During the review period, 80,000 options were returned to eQ Plc due
to end of employment relationships. The subscription period of shares with option
rights 2022 will begin on 1 April 2025 and end on 30 April 2027.
The terms and conditions of the option scheme have been published in a stock
exchange release of 4 February 2022, and they can be found in their entirety on the
company website at www.eQ.fi/en.
Own shares
At the end of the financial period, on 31 December 2024, eQ Plc held no own shares.
Shareholders
Major shareholders Number of shares
% of votes
and shares
Fennogens Investments S.A. 8,087,605 19.53%
Rettig Oy Ab 6,331,706 15.29%
Chilla Capital S.A. 6,215,904 15.01%
Teamet Oy 4,250,000 10.26%
Oy Cevante Ab 1,419,063 3.43%
Fazer Jan 1,314,185 3.17%
Procurator-Holding Oy 793,892 1.92%
Lavventura Oy 700,000 1.69%
Ilmarinen Mutual Pension Insurance Company 697,500 1.68%
Linnalex Ab 631,652 1.53%
Pinomonte Ab 529,981 1.28%
Umo Invest Oy 414,240 1.00%
Leppä Jukka-Pekka 400,000 0.97%
Elo Mutual Pension Insurance Company 393,564 0.95%
Pohjolan Kiinteistökehitys Oy 387,000 0.93%
Danske Invest Finnish Equity Fund 295,750 0.71%
Sever Match Oy 290,000 0.70%
Mononen Matti 180,000 0.43%
Nacawi Ab 150,000 0.36%
Viskari Jyri 150,000 0.36%
Others 7 775,156 18.78%
Total 41,407,198 100.00%
The information is based on the situation in the share register maintained by Euroclear
Finland Ltd on 31 December 2024.
Ownership structure by sector on 31 December 2024:
Number
of shares
% of votes
and shares
Corporations 17,075,093 41.24%
Financial and insurance institutions 918,104 2.22%
Public sector entities 1,155,456 2.79%
Households 7,517,634 18.16%
Foreign 14,405,389 34.79%
Other
1)
335,522 0.81%
Total 41,407,198 100.00%
1)
The item Others comprises non-profit organisations .
Ownership structure according to number of shares held:
Number of shares per shareholder
Number of
shareholders
% of
shareholders
1–100 3,872 47.96%
101–500 2,561 31.72%
501–1,000 745 9.23%
1,001–5,000 688 8.52%
5,001–10,000 94 1.16%
10,001–50,000 68 0.84%
50,001–100,000 14 0.17%
100,001–500,000 20 0.25%
500,001– 11 0.14%
Total 8,073 100.00%
Number of shares per shareholder Number of shares % of shares
1–100 158,705 0.38%
101–500 659,426 1.59%
501–1,000 575,293 1.39%
1,001–5,000 1,490,841 3.60%
5,001–10,000 693,863 1.68%
10,001–50,000 1,625,783 3.93%
50,001–100,000 1,048,510 2.53%
100,001–500,000 4,183,289 10.10%
500,001– 30,971,488 74.80%
Total 41,407,198 100.00%
38eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Nominee registered shares:
Of the company shares, 354,866 were nominee-registered, representing 0.86% of
the votes and shares.
Other information on the share
The following information on the company share is found in the Notes to the Financial
Statements: holdings of the company management and directors and the number of
company shares and share types.
Corporate governance
In addition to acts and regulations applicable to listed companies, in 2024 eQ
Plc complied with the Finnish Corporate Governance Code 2020 published by
the Securities Market Association on 1 January 2020. The Corporate Governance
Statement has also been prepared in accordance with the Finnish Corporate
Governance Code 2025 published by the Securities Market Association on 1 January
2025. The entire Code is available on the website of the Securities Market Association
at www.cgfinland.fi/en.
The Board of Directors of eQ Plc has discussed the Corporate Governance Statement
on 3 February 2025. The Corporate Governance Statement has been published on the
company’s website and as part of the Annual Report.
Proposal for the distribution of profit
The distributable means of the parent company on 31 December 2024 totalled
EUR 57,409,143.02. The sum consisted of retained earnings of EUR 31,984,573.28 and
the means in the reserve of invested unrestricted equity of EUR 25,424,569.74.
The Board of Directors proposes to the Annual General Meeting that a dividend of
EUR 0.66 per share be paid out. The proposal corresponds to a dividend totalling
EUR 27,328,750.68 calculated with the number of shares at the close of the financial
period. The dividend is paid in two instalments.
The first instalment, EUR 0.33 per share, is paid to those who are registered as
shareholders in the company’s shareholder register maintained by Euroclear Finland
Ltd on the record date 27 March 2025. The Board proposes that the first instalment of
the dividend be paid out on 3 April 2025.
The second instalment, EUR 0.33 per share, is paid in October 2025. The second
instalment is paid to those who are registered as shareholders in the company’s
shareholder register maintained by Euroclear Finland Ltd on the record date. The Board
of Directors will decide the record date and payment date of the second instalment of
the dividend payment at its meeting in September 2025. The planned record date is 7
October 2025 and the dividend payment date 14 October 2025.
After the end of the financial period, no essential changes have taken place in
the financial position of the company. The Board of Directors feel that the proposed
distribution of dividend does not endanger the liquidity of the company.
Events after the end of the financial year
eQ Plc’s shareholders with more than 60 per cent of the company shares and
votes have made a proposal to the Annual General Meeting to be held on 25 March
2025 regarding the number of directors, their remuneration and the principles for
compensation expenses as well as the election of the directors. The shareholders
propose that Päivi Arminen, Nicolas Berner, Georg Ehrnrooth, Janne Larma and Tomas
von Rettig be re-elected and Caroline Bertlin elected as a new member to the Board of
Directors for a term of office ending at the close of the next Annual General Meeting.
At the end of January 2025, the first closing of the eQ PE XVII US capital fund of USD
115 million took place. eQ Plc made an investment commitment of USD 1.0 million to
the fund.
Outlook
The difficult market situation in the Finnish real estate market continued in 2024.
Our assessment is that the real estate market levelled off towards the end of the
year and that yield requirements generally stopped rising in the final quarter of the
year. However, market liquidity remained at a very low level. The real estate market
in general remains challenging. In several Finnish open-ended real estate funds,
redemptions have not been completed on time and investors have had to wait for
their money. Funds for redemption payments are mainly raised by selling properties
and, as the transaction market remains quiet, redemption payments have had to be
postponed. Lower interest rates and economic growth are having a positive impact
on the real estate market. The market expects interest rates in Europe to continue to
fall and the economy to gradually start to recover. If these estimates materialise, we
expect 2025 to be a better year for the real estate market than 2024.
Due to the current situation, eQ’s real estate fund management fees are expected to
decrease in 2025 compared to the previous year.
Sales of eQ’s Private Equity products has continued to be strong, and we believe
that Finnish asset management clients will increase the Private Equity allocations in
their portfolios in the coming years. We estimate that eQ’s Private Equity fees will
increase in 2025 compared to last year. The exit market for private equity funds was
quieter than expected in 2024. As a result, the timing of Private Equity performance
fees accruing to eQ has moved forward. Performance fees are expected to increase
from 2026 onwards, with a number of private equity products expected to move into
the performance fee phase.
In traditional asset management, we believe we have a good market position.
The development of fees is largely dependent on market development.
Helsinki, 3 February 2025
eQ Plc
Board of Directors
39
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Consolidated key ratios
EUR 1,000 2024 2023 2022 2021 2020
INCOME STATEMENT
Fee and commission income, net
63,831 70,815 77,129 71,578 56,734
Net income from financial assets 1,708 -52 709 7,314 32
Net revenue 65,649 70,853 77,781 78,880 56,744
Operating profit (loss) 34,535 39,749 45,735 47,660 30,757
% of net revenue 52.6 56.1 58.8 60.4 54.2
Profit (loss) for the period 27,405 31,524 36,322 38,078 24,610
BALANCE SHEET
Claims on credit institutions and liquid assets
7,982 22,911 23,688 35,141 21,453
Financial assets 25,998 27,111 36,956 39,760 30,576
Intangible and tangible assets 32,856 33,891 35,186 30,819 31,812
Other assets and receivables 28,235 16,357 15,027 5,123 7,636
Total assets 95,071 100,270 110,858 110,842 91,476
Equity 73,330 75,436 81,779 79,955 67,545
Liabilities 21,742 24,834 29,079 30,887 23,931
Total liabilities and equity 95,071 100,270 110,858 110,842 91,476
EUR 1,000 2024 2023 2022 2021 2020
PROFITABILITY AND OTHER KEY RATIOS
Return on investment, ROI % p.a.
35.0 37.8 43.2 50.6 35.9
Return on equity, ROE % p.a. 36.8 40.1 44.9 51.6 37.1
Equity to assets ratio, % 77.1 75.2 73.8 72.1 73.8
Gearing, % -17.8 -37.8 -46.7 -68.7 -50.8
Cost/income ratio, %
Group 47.4 43.8 41.1 39.5 45.6
Asset Management 42.3 37.9 36.0 37.7 39.0
Corporate Finance 71.6 83.0 67.7 60.0 72.3
Number of personnel as full-time resources
at the end of the period 104 101 94 96 94
Number of personnel as full-time resources, average 103 101 96 95 92
40eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
EUR 1,000 2024 2023 2022 2021 2020
SHARE-RELATED KEY RATIOS
Earnings per average share, EUR
0.66 0.78 0.91 0.97 0.64
Diluted earnings per average share, EUR 0.65 0.75 0.87 0.93 0.60
Equity per share, EUR 1.77 1.85 2.02 2.02 1.74
Equity per share, EUR
1)
1.78 1.86 2.04 2.03 1.76
Dividend, EUR 1,000
2)
27,329 32,597 36,791 38,443 24,878
Dividend per share
2)
0.66 0.80 0.91 0.97 0.64
Dividend per earnings, %
2)
100.0 102.6 100.0 100.0 100.0
Repayment of equity, EUR 1,000
3)
0 0 3,639 1,189 2,332
Repayment of equity per share
3)
0.00 0 0.09 0.03 0.06
Dividend and repayment of equity, total, EUR 1,000 27,329 32,597 40,430 39,632 27,211
Dividend and repayment of equity, total per share 0.66 0.80 1.00 1.00 0.70
Effective dividend and equity repayment yield, % 5.1 5.1 3.9 3.9 4.2
Price/earnings ratio, P/E 19.6 20.0 28.0 26.5 26.2
Adjusted share price development, EUR
Average price
13.81 19.02 23.54 23.26 13.43
Highest price 15.98 25.70 27.95 30.65 17.05
Lowest price 12.05 13.90 20.10 16.50 9.54
Closing price 12.95 15.58 25.45 25.75 16.75
Market capitalisation, EUR 1,000 536,223 634,818 1,028,936 1,020,529 651,109
Share turnover, 1,000 shares 930 1,114 1,948 2,090 2,722
% of total number of shares 2.3 2.7 4.9 5.3 7.1
Share turnover, EUR 1,000 12,836 21,184 45,853 48,909 35,793
Adjusted number of shares, 1,000 shares
Average during the year
41,245 40,592 40,082 39,353 38,448
At the end of the year 41,407 40,746 40,430 39,632 38,872
1)
Weighted average number of shares outstanding during the period
2)
The Board’s dividend proposal
3)
The Board’s proposal for repayment of equity from the reserve for invested unrestricted equity
41eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
RETURN ON INVESTMENT, ROI (%)
profit or loss + interest expenses
x 100
equity + interest-bearing financial liabilities (average)
RETURN ON EQUITY, ROE (%)
profit or loss
x 100
equity (average)
EQUITY TO ASSETS RATIO (%)
equity
x 100
balance sheet total - advances received
GEARING (%)
interest-bearing liabilities - financial assets - cash in hand and at bank
x 100
equity
COST/INCOME RATIO (%)
administrative expenses + other operating expenses
+ depreciation (excl. agreement depreciation)
x 100
net revenue
EARNINGS PER SHARE, EPS
profit or loss for the period attributable to equity
holders of the parent company
adjusted average number of shares during the period
EQUITY PER SHARE
equity
adjusted number of shares at the balance sheet date
DIVIDEND PER SHARE
dividend
adjusted number of shares at the balance sheet date
DIVIDEND PER EARNINGS (%)
dividend per share
x 100
earnings per share
REPAYMENT OF EQUITY PER SHARE
repayment of equity from the reserve for invested unrestricted equity
adjusted number of shares at the balance sheet date
EFFECTIVE DIVIDEND AND EQUITY REPAYMENT YIELD (%)
dividend and equity repayment per share
x 100
adjusted share price at the balance sheet date
PRICE/EARNINGS RATIO, P/E
adjusted share price at the balance sheet date
earnings per share
MARKET CAPITALISATION
number of shares on 31. Dec. x closing price on 31. Dec
SHARE TURNOVER (%)
number of shares traded during the period
x 100
average number of shares during the period
Calculation of Key Ratios
42eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Financial Statements 2024
Consolidated Income Statement 44
Consolidated Balance Sheet 45
Consolidated Cash Flow Statement 46
Change in Consolidated Shareholders’ Equity 46
Principles for preparing
the Consolidated Financial Statements 47
Notes to the Consolidated Financial Statements 56
Parent Company Financial Statements 65
Income Statement 65
Balance Sheet 65
Cash Flow Statement 66
Notes to the Financial Statements 67
Proposal for the Distribution of Profits 72
Signatures and Auditors’ Note 73
In line with the ESEF requirements, the consolidated financial statements have been labelled with XBRL tags in the XHTML-file. Non-official version, translation.
43
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Consolidated Income Statement
EUR 1,000 Note no. 2024 2023
Fee and commission income 5 64,449 71,361
Interest income 6 337 275
Net income from financial assets 7 1,708 -52
Operating income, total 66,494 71,584
Fee and commission expenses 8 -618 -546
Interest expenses 9 -227 -185
NET REVENUE 65,649 70,853
Administrative expenses 10
Personnel expenses
-24,762 -25,415
Other administrative expenses -2,863 -2,532
Depreciation on tangible and intangible assets 11 -1,153 -1,272
Other operating expenses 12 -2,336 -1,885
OPERATING PROFIT (LOSS) 34,535 39,749
PROFIT BEFORE TAXES 34,535 39,749
Income taxes 13 -7,131 -8,225
PROFIT (LOSS) FOR THE FINANCIAL PERIOD 27,405 31,524
Consolidated statement of comprehensive income
EUR 1,000 Note no. 2024 2023
Other comprehensive income: - -
Other comprehensive income after taxes - -
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 27,405 31,524
Profit for the period attributable to:
Equity holders of the parent company
Non-controlling interests - -
Comprehensive income for the period attributable to:
Equity holders of the parent company
Non-controlling interests - -
Earnings per share calculated from the profit
of equity holders of the parent company: 14
Earnings per average share, EUR
Diluted earnings per average share, EUR 0.65 0.75
44eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Consolidated Balance Sheet
EUR 1,000 Note no. 31 Dec. 2024 31 Dec. 2023
ASSETS
Liquid assets
Claims on credit institutions 15 7,874 22,841
Financial assets 16, 26–29
Financial securities
Private equity and real estate fund investments 16,971 16,556
Intangible assets 17
Goodwill and brands
Client agreements - 8
Other intangible assets 5 30
Tangible assets 18
Right-of-use assets
Other tangible assets 389 425
Other assets 19 27,537 15,657
Accruals and prepaid expenditure 20 549 414
Income tax receivables 7 133
Deferred tax assets 21 143 153
TOTAL ASSETS 95,071 100,270
EUR 1,000 Note no. 31 Dec. 2024 31 Dec. 2023
LIABILITIES AND EQUITY
LIABILITIES
Other liabilities 22
Accruals and deferred income 23 10,923 12,871
Lease liabilities 24 3,963 4,980
Income tax liabilities 30 49
TOTAL LIABILITIES 21,742 24,834
EQUITY 30
Attributable to equity holders of the parent company:
Share capital
Reserve for invested unrestricted equity 27,279 24,693
Retained earnings 7,262 7,836
Profit (loss) for the period 27,405 31,524
TOTAL EQUITY 73,330 75,436
TOTAL LIABILITIES AND EQUITY 95,071 100,270
45eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Consolidated Cash Flow Statement
EUR 1,000 2024 2023
Cash flow from operations
Operating profit 34,535 39,749
Depreciation and write-downs 1,153 1,272
Interest income and expenses -110 -90
Transactions with no related payment transactions 637 2,312
Financial assets – private equity funds -444 -940
Change in working capital
Business receivables, increase (-) decrease (+) -11,882 -1,113
Interest-free debt, increase (+) decrease (-) -2,105 -3,654
Total change in working capital -13,987 -4,767
Cash flow from operations before financial items and taxes 21,784 37,536
Interests received 337 275
Interests paid -227 -185
Income taxes -7,097 -8,392
Cash flow from operations 14,797 29,234
Cash flow from investments
Investments in tangible and intangible assets -110 -52
Investments in other investments - liquid mutual funds 1,876 9,766
Cash flow from investments 1,765 9,713
Cash flow from financing
Dividends/equity repayments paid
-33,052 -40,430
Subscription of new shares 2,586 1,270
Deduction of lease liability capital -1,025 -565
Cash flow from financing -31,491 -39,725
Increase/decrease in liquid assets -14,929 -777
Liquid assets on 1 Jan. 22,911 23,688
Liquid assets on 31 Dec. 7,982 22,911
Change in Consolidated Shareholders’ Equity
EUR 1,000 Equity attributable to equity holders of the parent company
Share
capital
Reserve
for invested
unrestricted
fund
Retained
earnings Total
Total
equity
Shareholders’ equity on 1 Jan. 2024 11,384 24,693 39,359 75,436 75,436
Comprehensive income
Profit (loss) for the period
Other comprehensive income items - - -
Total comprehensive income 27,405 27,405 27,405
Dividend/equity repayment - -33,053 -33,053 -33,053
Subscription of new shares 2,586 2,586 2,586
Options granted 956 956 956
Shareholders’ equity on 31 Dec. 2024 11,384 27,279 34,667 73,330 73,330
Shareholders’ equity on 1 Jan. 2023 11,384 27,061 43,334 81,779 81,779
Comprehensive income
Profit (loss) for the period
Other comprehensive income items - - -
Total comprehensive income 31,524 31,524 31,524
Dividend/equity repayment -3,639 -36,791 -40,430 -40,430
Subscription of new shares 1,270 1,270 1,270
Options granted 1,293 1,293 1,293
Shareholders’ equity on 31 Dec. 2023 11,384 24,693 39,359 75,436 75,436
46eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
1 Principles for preparing the Consolidated Financial Statements
Notes to the Consolidated Financial Statements
47eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
48eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
49eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
50eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
51eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
52eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
53eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
54eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
55eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Notes to the Income Statement
56eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Notes to the Consolidated
Balance Sheet
57eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
58
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
59
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
60eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
61eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
62eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
63eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
64eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Parent Company Income Statement (FAS)
EUR Note no. 2024 2023
Fee and commission income 2 76,800.00 76,800.00
Net gains from financial instruments
entered at fair value through profit or loss 3 442,727.58 -841,847.85
Income from equity investments 4
From other companies
1,265,633.00 790,155.87
Interest income 5 330,366.72 273,876.20
INVESTMENT FIRM INCOME 2,115,527.30 298,984.22
Fee and commission expenses 6 -150,000.00 -150,000.00
Interest expenses 7 -282,135.43 -307,116.42
Personnel and administrative expenses
Personnel expenses 8
Salaries and remuneration
-1,474,434.05 -1,365,900.31
Indirect employee costs
Pension costs
-205,667.58 -204,551.60
Other indirect employee costs -22,620.40 -30,068.35
Other administrative expenses 9 -405,024.92 -340,231.88
Depreciation and impairment on tangible and
intangible assets as well as shares and participations 10 -4,266.63 -4,699.67
Other operating expenses 11 -439,428.62 -376,173.20
OPERATING PROFIT (LOSS) -868,050.33 -2,479,757.21
Appropriations 12 36,058,684.47 43,644,829.49
Income taxes 13 -7,047,368.42 -8,221,174.10
PROFIT (LOSS) FOR THE FINANCIAL PERIOD 28,143,265.72 32,943,898.18
Parent Company Balance Sheet (FAS)
EUR Note no. 31 Dec. 2024 31 Dec. 2023
ASSETS
Liquid assets
4,110.00 -
Claims on credit institutions
Repayable on demand 14 1,277,614.14 7,884,736.81
Shares and participations 15, 23 25,995,302.27 27,108,424.53
Shares and participations in Group undertakings 15 29,154,321.94 29,154,321.94
Intangible assets 16
Other intangible assets
- 585.23
Tangible assets 16
Other tangible assets
15,033.31 18,714.71
Other assets 17 13,785,639.51 8,665,222.97
Accruals and prepaid expenditure 18 57,446.92 191,751.15
TOTAL ASSETS 70,289,468.09 73,023,757.34
LIABILITIES AND EQUITY
LIABILITIES
Liabilities to the public and public sector entities
Other 1,000,000.00 1,000,000.00
Other liabilities 19
Other liabilities 123,306.57 419,431.58
Accruals and deferred income 20 373,145.50 488,047.06
TOTAL LIABILITIES 1,496,452.07 1,907,478.64
EQUITY 24
Share capital
11,383,873.00 11,383,873.00
Unrestricted equity
Reserve for invested unrestricted equity 25,424,569.74 22,838,339.74
Retained earnings (loss) 3,841,307.56 3,950,167.78
Profit (loss) for the period 28,143,265.72 32,943,898.18
TOTAL EQUITY 68,793,016.02 71,116,278.70
TOTAL LIABILITIES AND EQUITY 70,289,468.09 73,023,757.34
65eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Parent Company Cash Flow Statement (FAS)
EUR 1,000 2024 2023
Cash flow from operations
Operating profit
35,191 41,165
Adjustments:
Depreciation and write-downs
4 5
Interests received -330 -274
Interests paid 282 307
Transactions with no related payment transactions -318 1,019
Financial assets – private equity funds -444 -940
Change in working capital
Business receivables, increase (-) decrease (+)
-4,986 2,141
Interest-free debt, increase (+) decrease (-) -414 65
Total change in working capital -5,400 2,205
Cash flow from operations before financial items and taxes 28,984 43,488
Interests received 330 274
Interests paid -282 -307
Taxes -7,045 -8,354
Cash flow from operations 21,988 35,100
EUR 1,000 2024 2023
Cash flow from investments
Investments in tangible and intangible assets
- -5
Investing activities in investments - -10
Investments in other investments – liquid mutual funds 1,876 9,766
Cash flow from investments 1,876 9,751
Cash flow from financing
Dividends paid
-33,053 -40,430
Subscription of new shares 2,586 1,270
Cash flow from financing -30,467 -39,159
Increase/decrease in liquid assets -6,603 5,692
Liquid assets on 1 Jan. 7,885 2,193
Liquid assets on 31 Dec. 1,282 7,885
66eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
1 Principles for preparing the Financial Statements
General
When preparing the financial statements, the company has followed the Ministry
of Finance Decree on financial statements and consolidated financial statements
of credit institutions and investment firms (76/2018) and the Financial Supervision
Authority’s regulations and guidelines on accounting, finan-cial statements, and
report by the Board of Directors for the financial sector (2/2016).
Valuation principles and methods as well as periodization principles and methods
Fee and commission income is recorded when the income can be defined in a reliable
manner and it is likely that the company benefits from the financial advantage related
to the transaction. Dividend in-come is recorded when the right to the dividend
has arisen.
Interest income and expenses are recorded based on time by using the effective
interest method and taking into account all contractual terms of the financial
instrument. Interests that have not been re-ceived on the closing date are recorded
as interest income and receivable and the unpaid interests as interest expenses
and liabilities.
The profit shares from the private equity and real estate fund investments made from
eQ Plc’s own balance sheet are entered as income from equity investments. The value
changes of private equity fund and real estate fund investments recorded through
profit or loss are entered among the net gains from financial instruments entered at
fair value through profit or loss. The value changes through profit or loss as well as
sales profits and losses of investments in mutual funds are also entered among the net
gains from financial instruments entered at fair value through profit or loss.
Financial assets are classified into the following groups in accordance with the IFRS 9
standard Finan-cial Instruments:
a) valued at amortised acquisition cost,
b) entered at fair value through profit or loss
c) valued at fair value with other items of comprehensive income.
eQ Plc’s private equity and real estate fund investments and investments in mutual
funds are classi-fied among financial assets at fair value through profit or loss.
Financial liabilities as classified as follows:
a) valued at amortised acquisition cost
b) valued at fair value through profit or loss
eQ Plc had no financial liabilities valued at fair value through profit or loss at
the reporting moment.
Depreciation principles
Tangible and intangible assets are entered in the balance sheet at acquisition cost
less depreciation according to plan and impairment. The depreciation according to
plan is calculated as straight-line depreciation based on the useful life of tangible and
intangible assets. Depreciation has been calcu-lated from the month the assets were
taken into use. The depreciation period of intangible assets is 3 to 5 years and that of
machinery and equipment 3 to 10 years.
Foreign currency items
The receivables and debts in foreign currencies have been translated to euros
according to the rate prevailing on the balance sheet day.
2 Fee and commission income
EUR 1,000 2024 2023
From other operations 77 77
3 Net gains from financial instruments entered
at fair value through profit or loss
EUR 1,000 2024 2023
From shares and participations
Changes in fair value
1,147 -1,019
Sales profits/losses -704 178
Total 443 -842
4 Income from equity investments
EUR 1,000 2024 2023
Dividend income from financial assets
valued at fair value 1,266 790
Total 1,266 790
Notes to the Parent Company Financial Statements
67eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
5 Interest income
EUR 1,000 2024 2023
From Group companies 0 8
From credit institutions 329 265
Other interest income 1 1
Total 330 274
6 Fee and commission expenses
EUR 1,000 2024 2023
Other fees – management of
investments eQ Asset Management -150 -150
Total -150 -150
7 Interest expenses
EUR 1,000 2024 2023
To Group undertakings -282 -307
Other interest expenses 0 0
Total -282 -307
8 Personnel expenses
EUR 1,000 2024 2023
Salaries and remuneration -1,474 -1,366
Pension costs -206 -205
Other indirect employee costs -23 -30
Total -1,703 -1,601
Average number of personnel
during the period – permanent 5 5
Change during the financial period - -
9 Other administrative expenses
EUR 1,000 2024 2023
Other personnel expenses -27 -29
IT and connection expenses -109 -99
Other administrative expenses -269 -212
Total -405 -340
10 Depreciation and impairment on tangible and
intangible assets as well as shares and participations
EUR 1,000 2024 2023
Depreciation on intangible and tangible assets -4 -5
A depreciation specification per balance sheet item is presented under intangible and
tangible assets.
11 Other operating expenses
EUR 1,000 2024 2023
Expert fees -14 -4
Fees to the auditor
Audit fees
-33 -22
Other services -9 -4
Total -41 -27
Leases on premises and other rental expenses -107 -74
Other expenses -278 -272
Total -439 -376
12 Appropriations
EUR 1,000 2024 2023
Group subsidies received 36,060 43,645
Group subsidies issued -1 0
Total 36,059 43,645
13 Income taxes
EUR 1,000 2024 2023
Income tax for the period
Income taxes for operations
-7,045 -8,354
Deferred taxes -3 133
Total -7,047 -8,221
14 Claims on credit institutions
EUR 1,000 2024 2023
Repayable on demand
From domestic credit institutions
1 278 7 885
15 Shares and participations
EUR 1,000 2024 2023
Shares and participations
Financial assets: Private equity
and real estate fund investments
16,971 16,556
Financial assets: Units in investment funds 9,004 10,532
Other participations 20 20
Shares and participations in Group undertakings 29,154 29,154
Total 55,150 56,263
– of which at acquisition cost 29,174 29,174
68eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
16 Intangible and tangible assets
EUR 1,000 2024 2023
Other intangible assets
Acquisition cost on 1 Jan.
237 237
Increases - -
Acquisition cost on 31 Dec. 237 237
Accumulated depreciation on 1 Jan. -236 -235
Depreciation for the period -1 -1
Accumulated depreciation on 31 Dec. -237 -236
Book value on 31 Dec. 0 1
Other tangible assets
Acquisition cost on 1 Jan.
246 242
Increases - 5
Acquisition cost on 31 Dec. 246 246
Accumulated depreciation on 1 Jan. -228 -224
Depreciation for the period -4 -3
Accumulated depreciation on 31 Dec. -231 -228
Book value on 31 Dec. 15 19
17 Other assets
EUR 1,000 2024 2023
Receivables from Group undertakings 13,560 8,645
Other receivables 226 20
Total 13,786 8,665
18 Accruals and prepaid expenditure
EUR 1,000 2024 2023
Other accruals 57 192
Total 57 192
19 Other liabilities
EUR 1,000 2024 2023
Accounts payable 27 62
Liabilities to Group undertakings 49 38
Other liabilities 47 319
Total 123 419
20 Accruals
EUR 1,000 2024 2023
Other accruals 373 488
21 Items denominated in domestic and
foreign currencies and Group items
31 Dec. 2024
EUR 1,000 EUR
Other than
EUR Total
From
Group
undertakings
Balance sheet items
Claims on credit institutions
1,278 - 1,278 -
Other assets 61,355 7,657 69,012 13,560
Total 62,633 7,657 70,289 13,560
Liabilities to the public and
public sector entities 1,000 - 1,000 1,000
Other liabilities 496 - 496 49
Total 1,496 - 1,496 1,049
31 Dec. 2023
EUR 1,000 EUR
Other than
EUR Total
From
Group
undertakings
Balance sheet items
Claims on credit institutions
7,885 - 7,885 -
Other assets 58,235 6,904 65,139 8,645
Total 66,120 6,904 73,024 8,645
Liabilities to the public and
public sector entities 1,000 - 1,000 1,000
Other liabilities 907 - 907 38
Total 1,907 - 1,907 1,038
69eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
22 Fair values of financial assets and liabilities
2024 2023
EUR 1,000
Fair
value
Book
value
Fair
value
Book
value
Financial assets
Claims on credit institutions
1,278 1,278 7,885 7,885
Shares and participations 25,995 25,995 27,108 27,108
Shares and participations in
Group undertakings 29,154 29,154 29,154 29,154
Total 56,427 56,427 64,147 64,147
Financial liabilities
Liabilities to the public and
public sector entities
1,000 1,000 1,000 1,000
Total 1,000 1,000 1,000 1,000
The table shows the fair values and book values of financial assets and liabilities per
balance sheet item. The assessment principles of fair values are presented in principles
for preparing the financial statements.
23 Value of financial assets across the three
levels of the fair value hierarchy
31 Dec. 2024
EUR 1,000 Level 1 Level 3
Financial assets at fair value through profit or loss
Private equity and real estate fund investments
- 16,971
Financial securities 9,024 -
Total 9,024 16,971
Level 3 reconciliation – Financial assets at fair value through profit or loss
Private equity and
real estate funds
Opening balance 16,556
Calls and returns 444
Impairment loss 799
Sales profits/losses -828
Closing balance 16,971
31 Dec. 2023
EUR 1,000 Level 1 Level 3
Financial assets at fair value through profit or loss
Private equity and real estate fund investments
- 16,556
Financial securities 10,552 -
Total 10,552 16,556
Level 3 reconciliation – Financial assets at fair value through profit or loss
Private equity and
real estate funds
Opening balance 16,837
Calls and returns 940
Impairment loss -1,221
Closing balance 16,556
Level 1 comprises liquid assets the value of which is based on quotes in the liquid
market. A market where the price is easily available on a regular basis is regarded as
a liquid market.
The fair values of level 3 private equity funds are based on the value of the fund
according to the management company of the private equity fund and their use
in widely used valuation models. Private equity fund investments are valued in
accordance with a practice widely used in the sector, International Private Equity and
Venture Capital Guidelines. The fair values of level 3 real estate fund investments are
based on the value of the fund according to the management company. The valuation
of real estate owned by a fund is based on a value defined by an external valuer.
70eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Other notes
25 Pledges, mortgages and obligations
EUR 1,000 2024 2023
eQ Plc’s investment commitments in
private equity funds, remaining commitment 6,033 7,153
Leasing agreements and leases less than one year 1,242 1,250
Leasing agreements and leases exceeding one year
but less than five years 3,017 4,373
Total 10,292 12,776
24 Equity
EUR 1,000 2024 2023
Share capital on 1 Jan. 11,384 11,384
Share capital on 31 Dec. 11,384 11,384
Restricted equity, total 11,384 11,384
Reserve for invested unrestricted equity on 1 Jan. 22,838 25,207
Increases/decreases 2,586 -2,368
Reserve for invested unrestricted equity on 31 Dec. 25,425 22,838
Retained earnings
Retained earnings on 1 Jan.
36,894 40,741
Dividend -33,053 -36,791
Other changes - -
Retained earnings on 31 Dec. 3,841 3,950
Profit (loss) for the period 28,143 32,944
Non-restricted equity, total 57,409 59,732
Equity on 31 Dec. 68,793 71,116
Calculation of distributable assets on 31 Dec.
Retained earnings
3,841 3,950
Profit for the period 28,143 32,944
Reserve for invested unrestricted equity 25,425 22,838
Distributable assets 57,409 59,732
The share capital of the company consists of 41,407,198 shares.
All shares carry one vote.
71eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Proposal for the distribution of profit
The distributable means of the parent company on 31 December 2024
totalled EUR 57,409,143.02. The sum consisted of retained earnings of
EUR 31,984,573.28 and the means in the reserve of invested unrestricted
equity of EUR 25,424,569.74.
The Board of Directors proposes to the Annual General Meeting that a dividend
of EUR 0.66 per share be paid out. The proposal corresponds to a dividend
totalling EUR 27,328,750.68 calculated with the number of shares at the close of
the financial period. The dividend is paid in two instalments.
The first instalment, EUR 0.33 per share, is paid to those who are registered
as shareholders in the company’s shareholder register maintained by Euroclear
Finland Ltd on the record date 27 March 2025. The Board proposes that the first
instalment of the dividend be paid out on 3 April 2025.
The second instalment, EUR 0.33 per share, is paid in October 2025. The second
instalment is paid to those who are registered as shareholders in the company’s
shareholder register maintained by Euroclear Finland Ltd on the record date.
The Board of Directors will decide the record date and payment date of the
second instalment of the dividend payment at its meeting in September 2025.
The planned record date is 7 October 2025 and the dividend payment date 14
October 2025.
After the end of the financial period, no essential changes have taken place
in the financial position of the company. The Board of Directors feel that the
proposed distribution of dividend does not endanger the liquidity of the company.
72eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Signatures to the Report by the Board of
Directors and Financial Statements
Helsinki, 3 February 2025
Auditor’s note
The auditors’ report over the audit has been issued today.
Helsinki, 3 February 2025
KPMG Oy Ab
Firm of Authorised Public Accountants
Tuomas Ilveskoski
APATimo Kokkila
Member of the Board
Tomas von Rettig
Member of the Board
Janne Larma
Acting CEO, Member of the Board
Georg Ehrnrooth
Chair of the Board
Päivi Arminen
Member of the Board
Nicolas Berner
Member of the Board
73eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Auditor’s Report
To the Annual General Meeting of eQ Plc
Report on the Audit of the Financial Statements
Opinion
We have audited the financial statements of eQ Plc (business identity code 1625441-9) for the year ended 31 December, 2024. The
financial statements comprise the consolidated balance sheet, income statement, statement of comprehensive income, statement
of changes in equity, statement of cash flows and notes, including material accounting policy information, as well as the parent
company’s balance sheet, income statement, statement of cash flows and notes.
In our opinion
— the consolidated financial statements give a true and fair view of the group’s financial position, financial performance and cash
flows in accordance with IFRS Accounting Standards as adopted by the EU
— the financial statements give a true and fair view of the parent company’s financial performance and financial position in
accordance with the laws and regulations governing the preparation of financial statements in Finland and comply with
statutory requirements.
Our opinion is consistent with the additional report submitted to the Board of Directors.
Basis for Opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good auditing practice are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of the parent company and of the group companies in accordance with the ethical requirements that are
applicable in Finland and are relevant to our audit, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
In our best knowledge and understanding, the non-audit services that we have provided to the parent company and group companies
are in compliance with laws and regulations applicable in Finland regarding these services, and we have not provided any prohibited
non-audit services referred to in Article 5(1) of regulation (EU) 537/2014. The non-audit services that we have provided have been
disclosed in note 12 to the consolidated financial statements
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Materiality
The scope of our audit was influenced by our application of materiality. The materiality is determined based on our professional
judgement and is used to determine the nature, timing and extent of our audit procedures and to evaluate the effect of identified
misstatements on the financial statements as a whole. The level of materiality we set is based on our assessment of the magnitude
of misstatements that, individually or in aggregate, could reasonably be expected to have influence on the economic decisions of the
users of the financial statements. We have also taken into account misstatements and/or possible misstatements that in our opinion
are material for qualitative reasons for the users of the financial statements.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial
statements of the current period. These matters were addressed in the context of our audit of the financial statements as a whole,
and in forming our opinion thereon, and we do not provide a separate opinion on these matters. The significant risks of material
misstatement referred to in the EU Regulation No 537/2014 point (c) of Article 10(2) are included in the description of key audit
matters below.
We have also addressed the risk of management override of internal controls. This includes consideration of whether there was
evidence of management bias that represented a risk of material misstatement due to fraud.
This document is an English translation of the Finnish auditor’s report. Only the Finnish version of the report is legally binding.
74eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
THE KEY AUDIT MATTER HOW THE MATTER WAS ADDRESSED IN THE AUDIT
Recognition of fee and commission income (Principles for preparing the consolidated financial statements and Note 5)
— The assets managed by eQ Group entitle to management
fees on the grounds of agreements with customers.
Management fees make up a significant item in the Group’s
income statement.
— Performance fees and fees from the corporate finance segment
also make up a substantial part in the formation of the Group’s
result and may vary considerably from year to year.
— Calculation of fee and commission income relying on fee
agreements and other source data.
— Appropriate timing of the recognition of fee and commission
income at correct amount is relevant in respect to the accuracy
of the financial statements.
— We evaluated the business processes related to fee and
commission income. Our audit procedures also included
comparing the accounting data kept in subledgers to that in the
general ledger, and substantive procedures performed in respect
of fee income. In addition, we have evaluated the accuracy of
the timing and the amount of revenue recognition.
— Regarding corporate finance fees, we assessed the monitoring
procedures used as the well as timing and the amount of
revenue recognition under projects by reference to the terms of
customer contracts.
— We inspected the calculation model of performance fees and
compared the parameters used to individual fund agreements
and the rules of investment funds.
— We inspected the accounting treatment of fees and
commissions and the appropriateness of the notes in relation to
the requirements of the IFRS 15 standard.
Valuation of private equity fund investments (Principles for preparing the consolidated financial statements and Notes 16, 26–29)
— The determination of fair values for investments is based
on the valuation principles as described in the principles for
preparing the consolidated financial statements of eQ Group.
With respect to illiquid assets in eQ’s investment portfolio, fair
values are provided by fund managers. In accordance with the
IFRS 9 standard, changes in the value of equity investments are
recognized in profit or loss.
— Private equity fund investments is a significant item in eQ
Group’s financial statements, and therefore the valuation of said
assets is considered a key audit matter.
— We assessed eQ Group’s valuation process as well as the
compliance with the principles for preparing the consolidated
financial statements. In addition, we inspected the consistency
of the accounting treatment in relation to the requirements of
the IFRS 9 standard.
— As part of our year-end audit procedures, we compared the fair
values used in the financial statements with the valuations
provided by fund managers. In addition, we reconciled the
balance sheet values of private equity funds with separate
monitoring of the funds.
— We also assessed the appropriateness of the disclosures made in
relation to investment assets.
Responsibilities of the Board of Directors and the Managing Director for the Financial Statements
The Board of Directors and the Managing Director are responsible for the preparation of consolidated financial statements that give
a true and fair view in accordance with IFRS Accounting Standards as adopted by the EU, and of financial statements that give a true
and fair view in accordance with the laws and regulations governing the preparation of financial statements in Finland and comply
with statutory requirements. The Board of Directors and the Managing Director are also responsible for such internal control as they
determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to
fraud or error.
In preparing the financial statements, the Board of Directors and the Managing Director are responsible for assessing the parent
company’s and the group’s ability to continue as a going concern, disclosing, as applicable, matters relating to going concern and using
the going concern basis of accounting. The financial statements are prepared using the going concern basis of accounting unless there
is an intention to liquidate the parent company or the group or cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is
a high level of assurance, but is not a guarantee that an audit conducted in accordance with good auditing practice will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if,
individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis
of the financial statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and maintain professional skepticism
throughout the audit. We also:
— Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and
perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis
for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control.
— Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company’s or the group’s
internal control.
— Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures
made by management.
75eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
— Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis of
accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that
may cast significant doubt on the parent company’s or the group’s ability to continue as a going concern. If we conclude that a
material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the parent company or the group to cease
to continue as a going concern.
— Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the
financial statements represent the underlying transactions and events so that the financial statements give a true and fair view.
— Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities
or business units within the group as a basis for forming an opinion on the group financial statements. We are responsible for the
direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our
audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and
significant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical requirements regarding
independence, and communicate with them all relationships and other matters that may reasonably be thought to bear on our
independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were of most significance in
the audit of the financial statements of the current period and are therefore the key audit matters. We describe these matters in our
auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
Other Reporting Requirements
Information on our audit engagement
We were first appointed as auditors by the Annual General Meeting on 1.1.2014, and our appointment represents a total period of
uninterrupted engagement of 11 years.
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other information comprises the
report of the Board of Directors and the information included in the Annual Report, but does not include the financial statements or
our auditor’s report thereon. We have obtained the report of the Board of Directors prior to the date of this auditor’s report, and the
Annual Report is expected to be made available to us after that date. Our opinion on the financial statements does not cover the
other information.
In connection with our audit of the financial statements, our responsibility is to read the other information identified above and, in
doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit, or otherwise appears to be materially misstated. With respect to the report of the Board of Directors, our responsibility also
includes considering whether the report of the Board of Directors has been prepared in compliance with the applicable provisions.
In our opinion, the information in the report of the Board of Directors is consistent with the information in the financial statements
and the report of the Board of Directors has been prepared in compliance with the applicable provisions.
If, based on the work we have performed on the other information that we obtained prior to the date of this auditor’s report,
we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing
to report in this regard.
Other opinions
We support that the financial statements should be adopted. The proposal by the Board of Directors regarding the use of the result and
other free equity shown in the balance sheet is in compliance with the Limited Liability Companies Act. We support that the Members
of the Board of Directors of the parent company and the Managing Director should be discharged from liability for the financial period
audited by us.
Helsinki, 3 February 2025
KPMG OY AB
Tuomas Ilveskoski
Authorised Public Accountant, KHT
76eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Independent auditor’s report on the ESEF
financial statements of eQ Plc
To the Board of Directors of eQ Plc
We have performed a reasonable assurance engagement on the financial statements
743700R4FA6AVH5J3D68-2024-12-31-0-en.zip of eQ Plc (Business ID 1625441-9)
that have been prepared in accordance with the Commission’s regulatory technical
standard for the financial year ended 31.12.2024.
Responsibilities of the Board of Directors and the Managing Director
The Board of Directors and the Managing Director are responsible for the preparation
of the company’s report of the Board of Directors and financial statements (the ESEF
financial statements) in such a way that they comply with the requirements of the
Commission’s regulatory technical standard. This responsibility includes:
— preparing the ESEF financial statements in XHTML format in accordance with
Article 3 of the Commission’s regulatory technical standard
— tagging the primary financial statements, notes and company’s identification data
in the consolidated financial statements that are included in the ESEF financial
statements with iXBRL tags in accordance with Article 4 of the Commission’s
regulatory technical standard and
— ensuring the consistency between the ESEF financial statements and the audited
financial statements.
The Board of Directors and the Managing Director are also responsible for such internal
control as they determine is necessary to enable the preparation of ESEF financial
statements in accordance with the requirements of the Commission’s regulatory
technical standard.
Auditor’s independence and quality management
We are independent of the company in accordance with the ethical requirements
that are applicable in Finland and are relevant to the engagement we have
performed, and we have fulfilled our other ethical responsibilities in accordance with
these requirements.
The auditor applies International Standard on Quality Management (ISQM) 1, which
requires the firm to design, implement and operate a system of quality management
including policies or procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory requirements.
Auditor’s responsibilities
Our responsibility is to, in accordance with Chapter 7, Section 8 of the Securities
Markets Act, provide assurance on the financial statements that have been prepared
in accordance with the Commission’s regulatory technical standard. We express an
opinion on whether the consolidated financial statements that are included in the
ESEF financial statements have been tagged, in all material respects, in accordance
with the requirements of Article 4 of the Commission’s regulatory technical standard.
Our responsibility is to indicate in our opinion to what extent the assurance has been
provided. We conducted a reasonable assurance engagement in accordance with
International Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
— whether the primary financial statements in the consolidated financial statements
that are included in the ESEF financial statements have been tagged, in all
material respects, with iXBRL tags in accordance with the requirements of Article
4 of the Commission’s regulatory technical standard and
— whether the notes and company’s identification data in the consolidated financial
statements that are included in the ESEF financial statements have been tagged,
in all material respects, with iXBRL tags in accordance with the requirements of
Article 4 of the Commission’s regulatory technical standard and
— whether there is consistency between the ESEF financial statements and
the audited financial statements.
The nature, timing and extent of the selected procedures depend on the auditor’s
judgment
. This includes an assessment of the risk of a material deviation due to fraud
or error from the requirements of the Commission’s regulatory technical standard.
W
e believe that the evidence we have obtained is sufficient and appropriate to provide
a basis for our opinion.
Opinion
Our opinion pursuant to Chapter 7, Section 8 of the Securities Markets Act is that
the primary financial statements, notes and company’s identification data in the
consolidated financial statements that are included in the ESEF financial statements
of eQ Plc 7743700R4FA6AVH5J3D68-2024-12-31-0-en.zip for the financial year
ended 31.12.2024 have been tagged, in all material respects, in accordance with
the requirements of the Commission’s regulatory technical standard.
Our opinion on the audit of the consolidated financial statements of eQ Plc for
the financial year ended 31.12.2024 has been expressed in our auditor’s report
dated 3.2.2025. With this report we do not express an opinion on the audit of
the consolidated financial statements nor express another assurance conclusion.
Helsinki 28 February 2025
KPMG OY AB
Tuomas Ilveskoski
Authorised Public Accountant, KHT
77
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Corporate
Governance
Corporate Governance Statement 2024 79
Remuneration Report for Governing Bodies 2024 85
Board of Directors 88
Management Team 90
Performance based fees of private equity funds managed by eQ 92
Information about capital adequacy 94
78
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Corporate Governance Statement 2024
Introduction
eQ Plc (the company) is a Finnish public limited liability company the shares of which
are listed on Nasdaq Helsinki Ltd (Helsinki Stock Exchange).
This Corporate Governance Statement has been drawn up separately from the report
by the Board of Directors. eQ Plc’s Board of Directors has reviewed this Corporate
Governance Statement on 3 February 2025. This statement and other information that
shall be provided in accordance with the Corporate Governance Code as well as the
company’s financial statements, report by the Board of Directors and auditors’ report
are available on eQ Plc’s website (www.eQ.fi/en). The statement is not part of the
official financial statements.
In addition to acts and regulations applicable to listed companies, in 2024 eQ
Plc complied with the Finnish Corporate Governance Code 2020 published by
the Securities Market Association that entered into force on 1 January 2020.
The entire Code is available on the website of the Securities Market Association at
www.cgfinland.fi/en.
This report has also been prepared in accordance with the Finnish Corporate
Governance Code 2025 of the Securities Market Association which entered into
force on 1 January 2025. The entire new Code is also available on the website of the
Securities Market Association at www.cgfinland.fi/en.
In 2024, eQ Plc complied with the Finnish Corporate Governance Code 2020 without
any departures.
Descriptions Concerning Corporate Governance
General Meeting of Shareholders
The General Meeting is eQ Plc’s highest decision-making body, at which the
shareholders participate in the supervision and control of the company. eQ
Plc convenes one Annual General Meeting (AGM) during each financial period.
Extraordinary General Meetings may be convened when necessary. Shareholders
exercise their right to vote and voice their views at the General Meeting.
eQ Plc provides shareholders with sufficient information about the agenda of the
General Meeting in advance. The advance information is provided in the notice of the
General Meeting, other releases and on the company website. The General Meeting
is organised in such a way that shareholders can effectively exercise their ownership
rights. The goal is that the CEO, Chair of the Board, and a sufficient number of
directors attend the General Meeting. A person proposed as director for the first time
shall participate in the General Meeting that decides on his or her election, unless
there are well-founded reasons for the absence.
eQ Plc’s Annual General Meeting was held on 21 March 2024.
Board of Directors
Composition of the Board
The General Meeting elects the directors. The director candidates put forward to the
Board shall be mentioned in the notice of the General Meeting if the candidate is
supported by shareholders holding at least 10 per cent of the total votes carried by all
the shares of the company, provided that the candidate has given his or her consent to
the election. The candidates proposed after the delivery of the notice of the meeting
will be disclosed separately. In its Corporate Governance Statement, the company
states the number of Board meetings held during the financial period as well as the
average attendance of the directors. The directors are elected for one year at a time.
The company’s Articles of Association do not contain any provisions on the manner of
proposing prospective directors. eQ Plc’s major shareholders, who as a rule represent
at least one half of the number of shares and votes in the company, make a proposal
on the number of directors, the directors and their remuneration to the AGM.
A person elected director must have the qualifications required by the work of a
director and sufficient time for taking care of the duties. The company facilitates
the work of the Board by providing the directors with sufficient information on
the company’s operations. eQ Plc’s Board of Directors consists of 5 to 7 members.
The Board elects a Chair from among its members. The election of the members of
the Board of Directors and the preparation of the election are ultimately the sole
responsibility of the General Meeting of eQ Plc. eQ Plc’s Board of Directors had a
full-time Chair until 27 October 2024. As of 27 October 2024, the position of Chair of
the Board has not been full-time since Janne Larma became the Acting CEO.
The company reports the following biographical details and holdings of the directors:
name, gender, year of birth, education, main occupation, primary work experience,
international experience, date of inception of Board membership, key positions
of trust, and shareholdings in the company. In addition, eQ reports the directors’
independence of the company or its major shareholders together with the reasoning
for determining that a board member is not independent.
79eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
The Annual General Meeting held on 21 March 2024 elected the following persons to
the Board:
Janne Larma, born 1965, man, member of the Board since 2021, Chair of the Board
until 27 October 2024, M. Sc. (Econ)
Key positions of trust: Notalar Oy, Chair of the Board of Directors, 1995-; Inkoo
Shipping Oy, Member of the Board, 2014–; Rettig Oy Ab, member of the Board,
2020–; Meripuolustussäätiö SR, Member of the Board 2017–.
Primary work experience: eQ Plc, Acting CEO since 27 October 2024 and CEO,
2011–2021; Advium Corporate Finance Oy, Managing Director, 2000-; eQ Pankki Oy,
member of Management Team, 2004-2009; Enskilda Securities, management position
in investment banking, 1998–2000; Alfred Berg, investment banking, 1993–1998;
Kansallis-Osake-Pankki, investment banking, 1988–1992.
Janne Larma is not independent of the company, as he has a permanent employment
relationship with the company. Larma has served as full-time and tenured Chair of the Board of
Directors from 27 October 2024 onwards and will serve as Acting CEO of the company from 27
October 2024. He is also involved in the same stock option program as the company’s current
management He has also previously served as the company’s acting CEO from 2011 to 2021.
Janne Larma is not independent of the company’s major shareholder Chilla Capital S.A., where
he is a significant shareholder.
Georg Ehrnrooth, born 1966, man, member of the Board since 2011, Chair of the
Board of Directors since 27 October 2024 and Vice Chair of the Board until 27 October
2024, studies in agriculture and forestry
Key positions of trust: Byggmästare Anders J Ahlström Holding AB (publ), member
of the Board, 2023–; Sampo Plc, member of the Board, 2020–; Louise and Göran
Ehrnrooth Foundation, Chair of the Board, 2012–; Fennogens Investments S. A,
Member of the Board 2009–; Anders Wall Foundation, member of the Board, 2008–;
Paavo Nurmi Foundation, member of the Board, 2009–; Topsin Investments S.A.,
Member of the board, 1998–.
Primary work experience: Management positions in family owned companies
with responsibility for finance and investments, 2008-; eQ Plc and eQ Bank Ltd,
CEO, 2005.
Georg Ehrnrooth is not independent of the company on the basis that he has served for more
than ten consecutive years on the Board of the company, including six years as Chair and two
years as the Vice Chair. In addition, Georg Ehrnrooth is not independent of the company’s major
shareholder Fennogens Investments S.A, where he is a significant shareholder.
Päivi Arminen, born 1978, woman, member of the Board since 2023, M. Sc. (Econ)
Key positions of trust: Interogo Holding AG, Infrastructure investments, Investment
Committee Member, 2023–.
Primary work experience: EQT Partners AB, Infrastructure investment, Managing
Director, Director, Associate 2008–2021; Danske Bank A/S / Sampo Bank Plc, Debt
Capital Markets, Vice President, Assistant Vice President 2005–2008; Evli Plc, Equity
Analyst, 2004–2005.
Independent of the company and significant shareholders.
Nicolas Berner, born 1972, man, member of the Board since 2013, Master of Laws
Key positions of trust: Berner Ltd, Chair of the Board of Directors, 2006–.
Primary work experience: Berner Ltd, CFO, 2011–; Hannes Snellman Attorneys Ltd,
partner, 1998–2011.
Independent of the company and significant shareholders.
Timo Kokkila, born 1979, man, member of the Board since 2016, M.Sc. (Eng.)
Key positions of trust: Valmet Automotive Plc, Member of the Board, 2016–; Pontos
Ltd, member of the Board, 2007–.
Primary work experience: Pontos Group, CEO, 2016–2024; Pontos Group,
Investment Director, 2011–2015; SRV Group Plc, Manager, Project Development,
2008–2011; SRV Group Plc, Project Development Engineer, 2006–2008; Kampin
Keskus Oy, Development Engineer, 2004–2006.
Independent of the company and significant shareholders.
Tomas von Rettig, born 1980, man, member of the Board since 2019, BBA,
CEFA certificate
Key positions of trust: Rettig Capital Oy Ab, member of the Board, 2014–.
Primary work experience: Rettig Oy Ab, CEO, 2016–2019; Rettig Oy Ab, vice
president business development, vice president corporate finance and development,
2011–2015; Rettig Asset Management Oy Ab, portfolio manager, senior portfolio
manager, 2008–2011; Skandinaviska Enskilda Banken, Middle Office, 2006–2008.
Independent of the company, but not independent of its significant shareholders. Tomas von
Rettig is a shareholder and member of the Board of Rettig Capital Oy Ab, an indirect parent
company of Rettig Oy Ab, which is a significant shareholder of eQ Plc.
Independence of Board Members
The members of eQ’s Board of Directors shall provide the Board and the company
with sufficient information for the evaluation of their qualifications and independence
and notify of any changes in such information. The majority of the members of the
Board must be independent from the company, and at least two Board members who
are independent from the company must also be independent from the company’s
significant shareholders. The Board of Directors assesses the independence of the
directors. When evaluating independence, the circumstances of private individuals
or legal entities regarded as related parties will be taken into consideration in all
situations. Companies belonging to the same group as a company are comparable with
that company.
eQ Plc’s Board member Nicolas Berner has been a member of the Board continuously
for over ten years. Based on the Board’s overall assessment, the Board member’s
independence is not considered to have been compromised due to his long board
membership, and no other such circumstances have been found that would weaken
the Board member’s independence.
Of the company’s six Board members, four (Päivi Arminen, Nicolas Berner, Timo
Kokkila and Tomas von Rettig) are independent from the company and three Board
members (Päivi Arminen, Nicolas Berner and Timo Kokkila) who are independent
from the company are also independent from the company’s significant shareholders.
An assessment of the independence of each Board member and the reasons why
the Board member is not considered independent can be found in the information on
each Board member above and from the company’s website.
Board Members’ holdings in the company
Shares and share-related rights of the Board members and entities that they control in
the company at the end of the financial period on 31 December 2024:
Member of the Board Security Holding
Päivi Arminen Share
3,550
Nicolas Berner
Share
90,000
Georg Ehrnrooth
Share
75,000
Timo Kokkila
Share
4,142
Janne Larma 2022 Option righ
Share
50,000
6,215,904
Tomas von Rettig
Share
5,000
80eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Operations of the Board of Directors
eQ Plc’s Board of Directors has drawn up a written charter covering its operations.
Below is a list of the most important principles and duties presented in the charter.
In order to carry out its duties, the Board of Directors:
• confirms the company values and manners of operating and monitors their
implementation
• confirms the company’s basic strategy and continuously monitors that it is
up-to-date
• based on the strategy, approves the annual plan of operation and budget and
supervises their outcome
• reviews and approves the interim reports, report by the Board of Directors and
financial statements
• defines the company’s dividend policy and makes a proposal on dividend distribution
to the AGM
• convenes General Meetings
• makes proposals to the General Meeting, when necessary
• decides on major investments, corporate acquisitions and divestments and on
investments that exceed two million euros
• confirms the organisation structure
• appoints and dismisses the CEO
• sets personal targets for the CEO annually and assesses their outcome
• appoints and dismisses the members of the Management Team, defines their areas
of responsibility and decides on the terms of their employment
• decides on so called unconventional related party transactions that are not
conducted in the ordinary course of eQ’s operation and which are not made on
ordinary commercial terms
• monitors and assesses related party transactions at least once a year
• reviews the Remuneration Policy for Governing Bodies of eQ at least once a year
and presents the policy to the General Meeting of the company for consideration at
least every four years
• reviews eQ Group’s remuneration principles at least once a year
• decides on the incentive schemes and annual bonuses of the CEO and the personnel
• regularly processes and reports on the eQ Group’s sustainability data as required
by regulation, and ensures that it is appropriately reflected in the eQ Group’s
remuneration policy.
• goes through the major risks related to the company’s operations and their
management at least once a year and gives instructions on them to the CEO,
when necessary
• meets the auditors at least once a year
• convenes at least once a year without the executive management
• assesses its own operations at least once a year
• assesses the independence of its members
• confirms its own charter, which is reviewed annually
• handles other matters that the Chair of the Board or the CEO has proposed to
the agenda of a Board meeting; the directors also have the right to put matters on
the Board agenda by informing the Chair of this.
eQ Plc’s Board had fourteen (14) meetings in total during the financial period 2024,
average attendance being 99%. Attendance at the Board meetings 2024:
Member of the Board
Päivi Arminen 14/14
Nicolas Berner 13/14
Georg Ehrnrooth 14/14
Timo Kokkila 14/14
Janne Larma 14/14
Tomas von Rettig 14/14
Principles on the diversity of the Board of Directors
The Board’s aim is to promote, for its part, the diversity of the Board’s composition.
When assessing diversity, the Board takes into consideration, for instance, the age and
gender of the directors, their education and professional experience, personal qualities
and experience that is essential with regard to the task and the company operations.
Regarding the equal representation of genders on the Board, eQ Plc has defined as
its goal that there should always be representatives of both genders on eQ Plc’s
Board of Directors. The Board aims at reaching this goal and maintaining it primarily
by informing eQ Plc’s owners actively about it. During the financial period 2024, eQ
Plc’s Board met the preconditions of diversity set by the company, including the goal
of having representatives of both genders on the Board. At the end of 2024, 17% of
the Board were women and 83% were men. The directors have versatile experience
from sectors that are of importance to the company, such as the investment and
finance sector and the real estate sectors, and collectively sufficient knowledge
of sustainability issues. In addition, the Board members’ different professional and
educational backgrounds, their international experience and their experience in areas
of specialisation important to the company complement each other. The directors are
elected by eQ Plc’s AGM.
The company’s Board of Directors monitored diversity issues during the 2024
financial period.
CEO and his duties
The CEO oversees the day-to-day administration of the company in accordance
with the rules and regulations of the Finnish Limited Liability Companies Act and
instructions and orders issued by the Board of Directors. The CEO may take measures
that, considering the scope and nature of the operations of the company, are unusual
or extensive with the authorisation of the Board. The CEO ensures that the accounting
practices of the company comply with the law and that finances are organised
in a reliable manner. eQ Plc’s Board of Directors appoints the CEO. The company
discloses the same biographical details and information on the holdings of the CEO as
of the directors. eQ Plc does not have substitute for the CEO.
Janne Larma took over as Acting CEO and Chair of the Management Team of eQ Plc
on 27 October 2024. Before that, he served as the full-time Chair of the Board of
Directors. Janne Larma will also continue as a member of the Board of Directors, and
his personal details can be found in the Board of Directors section above.
Mikko Koskimies, M. Sc. (Econ) (born 1967), man, served as the company’s CEO
until 27 October 2024, when he had to leave his position due to serious illness.
Koskimies was appointed CEO of eQ Plc on 1 April 2021 and was also CEO of eQ Asset
Management Ltd from 2012.
Key positions of trust held by Mikko Koskimies: St1 Nordic Corporation, member of
the Board, 2007–2024; Urlus-Säätiö Sr, Chair of the Board, 2012–2024.
Primary work experience: eQ Asset Management Ltd, CEO, 2012–2024; Pohjola
Bank, member of the Executive Committee and Executive Director responsible for
asset management business unit and Pohjola Asset Management Ltd, Managing
Director, 2005–2012; Alfred Berg Asset Management Ltd, Managing Director,
1998–2005; Nordea Group, several positions in senior management, 1989–1997, of
which Merita Bank Luxembourg S.A., 1993–1997.
81eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Shares and share-related rights of the CEO and entities that he controls in eQ Plc at
the end of the financial period on 31 December 2024:
Name Task in the organisation Security Holding
Janne Larma Acting CEO
(27 October 2024–)
2022 Option right
Share
50,000
6,215,904
Other Management Team members
eQ Group has a Management Team that convenes regularly. The status of the
Management Team is not based on company law, but in practice it has a significant
role in the organisation of the company management. The Management Team consists
of the persons heading the company’s operative business, the CFO and Group General
Counsel. The main duty of the Management Team is to assist the CEO.
eQ Group’s Management Team on 31 December 2024:
Janne Larma, born 1965, man, M. Sc. (Econ), Chair of the Management Team,
Acting CEO of eQ Plc
Tero Estovirta, born 1971, man, M.Sc. (Eng.), eQ Asset Management Ltd,
Managing Director
Jacob af Forselles, born 1973, man, M. Sc. (Econ), Master of Laws, Advium Corporate
Finance, Managing Director
Staffan Jåfs, born 1974, man, M.Sc. (Econ), eQ Asset Management Ltd, Head of
Private Equity
Antti Lyytikäinen, born 1981, man, M.Sc. (Econ), eQ Plc, CFO
Juha Surve, born 1980, man, Master of Laws, M.Sc. (Econ), eQ Asset Management
Ltd, Group General Counsel
Shares and share-related rights of the other Management Team members and entities
that they control in eQ Plc at the end of the financial period on 31 December 2024:
Name Task in the organisation Security Holding
Tero Estovirta Managing Director, eQ
Asset Management Ltd
Share
140,000
Jacob af
Forselles
Managing Director, Advium
Corporate Finance Ltd
Share
0
Staffan Jåfs Director, Private Equity,
eQ Asset Management Ltd
2022 Option right
Share
50,000
131,778
Antti
Lyytikäinen
CFO, eQ Plc 2022 Option right
Share
30,000
45,000
Juha Surve Group General Counsel,
eQ Asset Management Ltd
2022 Option right
Share
30,000
51,500
Descriptions of Internal Control Procedures and
the Main Features of Risk Management Systems
Control and risk management related to the financial reporting process
The objective of the financial reporting process is to produce timely financial
information and to ensure that decision-making is based on reliable information.
The aim is to ensure that the financial statements and interim reports are prepared
according to applicable laws, generally accepted accounting principles and other
requirements on listed companies.
The financial reporting process produces eQ Group’s monthly and quarterly reports.
The Management Team of the Group reviews eQ Group’s result and financial
performance monthly. The Group management presents the result and financial
position of the Group quarterly to the Board of Directors. The Board of Directors of
eQ Plc supervises that the financial reporting process produces high-quality financial
information. The CEO is responsible for eQ Group’s internal risk management.
The Group’s subsidiaries report their results monthly to the parent company. The
financial administration of the Group takes care of the bookkeeping of the subsidiaries.
At Group level, this will make it easier to ensure that the financial reporting of the
subsidiaries is reliable. The Group’s interim reports and financial statements are
prepared in accordance with the IFRS reporting standards. The financial administration
of the Group monitors the changes that take place in IFRS standards.
Based on risk assessments, the company has developed measures for controlling
the risks pertaining to financial reporting, which make sure that financial reporting is
reliable. The companies use various reconciliations, checks and analytical measures,
for instance. The financial administration of the Group prepares monthly analyses of
income statement and balance sheet items, both at company and segment level. In
addition, tasks related to risk-exposed work combinations are separated, and there
are appropriate approval procedures and internal guidelines. The reliability of financial
reporting is also supported by various system controls in the reporting systems. Other
basic principles of control are a clear division of responsibility and clear roles as well as
regular reporting routines.
Risk management overview
The purpose of the Group’s risk management is to make sure that the risks associated
with the company’s operations are identified, assessed and that measures are taken
regarding them. eQ Plc’s Board supervises that the CEO takes care of eQ Plc’s day-
to-day administration according to the instructions and orders issued by the Board.
The Board also supervises that risk management and control are organised in a proper
manner. The executive management is responsible for the practical implementation of
the risk management process and control.
eQ Group comprises a fully owned subsidiary of eQ Plc, eQ Asset Management Ltd,
which is an investment firm, and its wholly owned subsidiary eQ Fund Management
Company Ltd. A risk officer is responsible for risk management at eQ Asset
Management Ltd. At eQ Fund Management Company Ltd, the risk management
function, which is independent of the other operations, consists of risk experts
and is led by the Chief Risk Officer. A Risk Management Committee, chaired by
the Chief Risk Officer of eQ Fund Management Ltd, meets regularly in the Asset
Management segment.
General description of internal control
eQ Plc’s Board of Directors is responsible for arranging sufficient and well-functioning
internal control. Internal control covers all functions within eQ Group, which means
that eQ Plc steers and controls the operations of the subsidiaries in order to make sure
that the result of its operations is reliable. The business operations are steered by the
Group’s operating principles, decision-making powers and company values that cover
the entire Group. eQ Plc takes into account the Group structure and the nature and
extent of the operations when arranging internal control.
82eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
eQ Group’s internal control system covers financial and other control. Internal control
is carried out by the Board, CEO and other superior management as well as the persons
responsible for control functions and tasks and the entire personnel. The aim of internal
control is to make sure that the operations of the entire Group are efficient and
contribute to the achievement of the goals and targets, reporting is reliable and that
the Group follows laws and other regulations. In addition, the aim of internal control is
to ensure that information, eQ Plc’s assets and client assets are secured in a sufficient
manner and that internal procedures and information systems are arranged properly and
in order to support operations.
eQ Group has a notification channel through which an employee, clients and other
stakeholders can report misdemeanours or other misconduct within the eQ Group
anonymously and confidentially (eQ Whistleblower). Authorized persons process
notifications and only they have access to the information in the notifications. The
notification channel is entirely on a server outside the company and allows for discussions
with an anonymous notifier.
Internal control is above all based on financial reports, management reports, risk reports
and reports of internal control. The company’s central operations are steered according to
internal operating policies and practices.
Other Information to be Provided in the CG Statement
Internal audit
Internal audit is a support function of the Board and management that is independent of
eQ Group’s business operations. The internal auditor inspects on a risk-based assessment
the operations, internal control, risk management and management and administration
processes of especially such group companies that hold authorisations by focusing on
yearly set targets; in addition, the internal auditor inspects how the companies comply
with internal guidelines and the requirements and obligations that arise from regulation
concerning the companies. The internal auditor reports to the management and the
Board and the audit reports are discussed in the Board, who decide on the corrective
measures to be taken based on the audit report’s recommendations and monitor their
implementation. The internal audit function has been outsourced to an external service
provider, Oy Tuokko Ltd.
Principles concerning related party transactions
eQ’s Group Administration is responsible for managing related party matters at Group
level and for maintaining the related party register, in accordance with principles on
the management of related party matters approved by eQ Plc’s Board of Directors.
The management of each company that is a member of the Group is responsible for
ensuring that any related party transactions at the Group are made in accordance with
the approved principles. At eQ Group, all business transactions within the Group and
related party transactions are always made on arm’s-length terms and as part of the
company’s normal business operations. Group companies can offer their services to
related party individuals or organisations under their control or influence on market
terms, and ordinary assignments are implemented in the ordinary course of business of
the company. Related party transactions are allowed, provided that they promote the
purpose and interest of the company and are commercially justified.
The Board of Directors regularly monitors and evaluates transactions between eQ
Plc and the company’s related parties, and assesses how contracts and other legal
transactions made between the company and its related parties meet the requirements
on the ordinary course of business and arm’s-length terms. Primarily, all related
parties are personally responsible for ensuring that eQ is informed of any related party
transactions they make. eQ also monitors related party transactions on a business
segment basis, and eQ Plc’s CFO is responsible for reporting related party transactions
to the Board of Directors annually. Related party transactions that are not conducted in
the ordinary course of eQ’s operation and which are not made on ordinary commercial
terms are “unconventional business transactions”. Only eQ Plc’s Board of Directors can
make decisions on implementation of unconventional business transactions. The Board
of eQ Group’s parent company always decides on all related party loans to related
parties or entities outside the eQ Group.
eQ complies with the obligations of the Finnish Corporate Governance Code 2020
for listed companies and the IFRS standards (IAS 24) on related party disclosures.
As required by the standard, eQ discloses, in the consolidated financial statements
or separate financial statements, the related party relationships and transactions
and outstanding balances of the parent company or an investor with joint control
or significant control over the investment target with related parties, which are
presented in accordance with the IFRS. eQ also discloses in the company’s annual
report information to be presented on the basis of the Finnish Limited Liability
Companies Act, concerning loans, liabilities and commitments to related parties and
the main terms thereof, if the business transactions are material and implemented on
unconventional terms.
eQ Plc publishes, by a stock release, related party transactions that are significant for
the company’s shareholders.
Central procedures of insider administration
In its insider administration, eQ Plc complies with the applicable Finnish and EU
legislation (including the Market Abuse Regulation 596/2014), rules and regulations issued
by the Finnish Financial Supervisory Authority as well as the Guidelines for Insiders issued
by the Helsinki Stock Exchange (insider regulations). eQ Plc has drawn up guidelines on
insider issues and trading. The company has informed the company management, insiders
and persons covered by the trading restriction of the insider guidelines.
Managers and persons closely associated with them are obliged to inform the company
and the Financial Supervisory Authority of their trading in company shares or other
financial instruments. The company discloses the information that it has received without
delay with a stock exchange release. At eQ, such managers (covered by the disclosure
obligation) are the CEO and directors as well at the members of the Management Team
appointed by the Board. eQ maintains a list of managers and persons closely associated
with them. This list is not an insider list.
The company maintains insider lists required by insider regulations of persons who have
access to inside information. These lists are not public. The information on eQ Plc’s
managers required by regulations and the insider lists are maintained by Euroclear Finland
Ltd. The information in the insider lists is available to the Financial Supervisory Authority
for the supervision of the securities market.
eQ Plc’s permanent insiders are only persons who, due to their tasks or position, have
permanent access to all inside information in the listed company and who have the right
to make decisions on the company’s future development and the arrangement of business.
eQ’s permanent insiders comprise the directors, CEO and the members of the Group’s
Management Team appointed by the Board of Directors. In addition to insider lists, eQ
maintains a list of persons covered by the so-called extended trading restriction.
83eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
eQ Plc’s closed period commences 30 days prior to the disclosure of an interim report
(first and third quarter), half-yearly report or financial statements report and ends at the
end of the day of the disclosure.
The company has informed the company management, insiders and persons covered by
the extended trading restriction of the insider guidelines. The company has a designated
person in charge of insider issues, who carries out tasks related to the management
of insider issues, training in insider matters, maintenance of the insider lists and the
supervision of trading. The knowledge of other employees about insider matters is
maintained and their need of training assessed continuously.
Audit
Election of the Auditors
The proposal for the election of an auditor prepared by the Board of Directors of the
company is disclosed in the notice of the General Meeting. If the Board has not arrived
at a decision on the prospective auditor by the time the notice is sent, the candidacy
will be disclosed separately.
In 2024, the company auditor was KPMG Oy Ab, a firm of authorized public
accountants, with Tuomas Ilveskoski, APA, as auditor with main responsibility.
KPMG Oy Ab has acted as eQ Plc’s auditor since 2014 and Tuomas Ilveskoski, APA, has
acted as auditor with main responsibility since the Annual General Meeting 2021. The
decision on continuing with the period of the auditor with main responsibility and the
auditing firm is made annually at the AGM, and the auditor with main responsibility
and the auditing firm are changed at least in accordance with the valid regulations.
The Board of eQ Plc organized a statutory audit firm appointment procedure in
accordance with the EU Audit Regulation (537/2014) for the audit of the financial year
2021 and the company’s Annual General Meeting elected KPMG Oy Ab as auditor in
accordance with the Board’s recommendation.
Auditors’ fees
The independent auditors have been paid the following fees in 2024: for the audit
and closely related services a total of EUR 119,643 (2023: EUR 93,258) and for other
services than audit a total of EUR 18,595 (2023: EUR 14,348).
84
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Introduction
This Remuneration Report for Governing Bodies was drawn up in accordance with the
guidelines on remuneration in the 2020 Corporate Governance Code for Finnish listed
companies. In 2024, the remuneration of the Board of Directors and the CEO of eQ Plc
followed the existing remuneration policy of the company.
eQ’s remuneration system is based on the strategy and long-term goals defined by
the Board, and it is one of the major tools used for reaching the Group’s long-term
and short-term strategic goals. The remuneration systems support good, efficient and
comprehensive risk management at the eQ Group, preventing harmful risk-taking, in
particular. The remuneration systems must also take into account sustainability risks
related to eQ Group and its business operations. Comprehensive risk management is
aimed at taking into account the goals and interests of group companies, the funds
managed, and the investors, among other parties.
The following table shows the evolution of the remuneration of the Board of Directors
and the CEO compared to the evolution of the average remuneration of the Group’s
employees and the Group’s financial performance over the last five financial years.
Remuneration Report for Governing Bodies 2024
Salaries and remuneration
– EUR
1)
2024 2023 2022 2021 2020
CEO
2)
1,968,833 1,755,389 1,944,133 1,034,689 851,669
change, % 12% -10% 88% 21% 9%
Chair of the Board
3)
599,660 679,421 702,106 549,489 51,000
change, % -12% -3% 28% 977% 10%
Other Members of
the Board
4)
238,000 218,750 212,000 199,500 131,500
change, % 9% 3% 6% 52% 17%
Board of Directors
in total 837,660 898,171 914,106 748,989 182,500
change, % -7% -2% 22% 310% 15%
Employee on average
5)
176,637 185,836 207,953 218,726 185,653
change, % -5% -11% -5% 18% 5%
Operating profit – MEUR
34.5 39.7 45.7 47.7 30.8
change, % -13% -13% -4% 55% 17%
1)
Salaries and remuneration paid. Due to a change in the remuneration regulation, variable bonuses were no
longer deferred in the 2022 bonus payment. All reported figures include salary paid, fringe benefits and annual
bonus (excluding stock options and incidental expenses).
2)
The year 2021 includes Janne Larma, CEO for the period 1 Jan.–31 March 2021 and Mikko Koskimies, CEO for
the period 1 April–31 Dec. 2021. The year 2024 includes Mikko Koskimies, CEO for the period 1 January to 27
October 2024 (including the one-off payment paid in connection with the termination of his employment) and
Janne Larma, Acting CEO, for the period 28 October to 31 December 2024.
3)
The remuneration of the Chair of the Board of Directors includes the salary and fringe benefits based on the
employment contract of the full-time Chair of the Board of Directors, Janne Larma, from 1 April 2021 to 27
October 2024.
4)
The number of Board members increased by one (from five to six) in 2021.
5)
Total salaries, fees, fringe benefits and annual bonuses for the financial period (excluding the CEO) divided by
the average number of employees.
Remuneration of the Board of Directors
Salaries and fees of the members of the Board of Directors
The General Meeting decides on the remuneration of the Board of Directors.
In accordance with the decision of the Annual General Meeting of 2024, the
remuneration of the members of the Board of Directors will be as follows: EUR 5,000
for the Chair of the Board, EUR 4,000 for the Vice Chair and EUR 3,000 for the
members per month. The AGM also decided to pay the Directors EUR 750 for each
Board meeting that they attend. Travel and lodging costs of the Directors will be
compensated in accordance with the company’s expense policy. Fees are paid in cash.
Janne Larma, who served as the full-time Chair of the Board of Directors until
27 October 2024, was employed by the company and was paid a fixed salary
(monthly salary plus fringe benefits) in addition to the fees payable on the basis of
his membership of the Board of Directors. As the full-time Chair of the Board, Mr
Larma was not covered by eQ Group’s annual performance-based bonus scheme.
Georg Ehrnrooth, who was elected Chair of the Board on 27 October 2024, has no
employment relationship with the company.
85eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
In 2024, the remuneration of the members of the Board of Directors has been paid
as follows:
Fees – EUR
Annual fee
based on
membership
Meeting fees,
total
Other
salaries and
remuneration Total
Päivi Arminen 36,000 9,750 0 45,750
Nicolas Berner 36,000 9,000 0 45,000
Georg Ehrnrooth 50,000 9,750 0 59,750
Timo Kokkila 36,000 9,750 0 45,750
Janne Larma* 56,000 9,750 529,910 595,660
Tomas von Rettig 36,000 9,750 0 45,750
Total 250,000 57,750 529,910 837,660
*
Other salaries and remuneration include the salary and benefits of the full-time Chair of the Board Janne
Larma until 27 October 2024.
Full-time Chair of the Board’s participation in stock option plans
Janne Larma, who has served as the full-time Chair of the Board until 27 October
2024, has been granted stock options as part of the long-term commitment
programme for the full-time Chair of the Board. The role of the full-time Chair of
the Board of Directors has ended on 27 October 2024. Other than Janne Larma, the
members of the Board of Directors of eQ Plc do not have share-based or other types of
remuneration schemes.
In 2024, the eQ Group had two stock option plans: Option Scheme 2018 and Option
Scheme 2022, under which stock options and stock subscription rights have been
granted for the long-term commitment of key employees. eQ’s Chair of the Board
of Directors, Janne Larma, who was the full-time Chair, is covered by both option
schemes. Under the terms of the 2018 and 2022 option schemes, the options have
a holding period of approximately three years, after which the options will vest. There
are no other specific conditions relating to the ownership of options.
Option scheme 2018
Janne Larma is a member of the Option Scheme 2018 and has initially been granted
100,000 stock options as part of the commitment system. Janne Larma has exercised
all stock options granted under the 2018 Option Scheme before 2024.
The subscription period of shares with option rights 2018 began on 1 April 2022 and
ended on 1 April 2024.
Option scheme 2022
Based on the Option Scheme 2022, 50 000 stock options have been granted to Janne
Larma in 2022 as part of a commitment system. The subscription price of options on
31 December 2024 was EUR 21.45.
The subscription period of shares with option rights 2022 will begin on 1 April 2025
and end on 30 April 2027.
CEO’s remuneration
CEO’s salary and other benefits
The Board of Directors appoints the CEO and decides on their salary, benefits and
other terms of employment. It is important for the company that the CEO’s salary
is competitive, as the CEO’s commitment and adequate incentives are key to the
company’s success.
The CEO’s remuneration system consists of a fixed salary (monthly salary plus benefits
in kind) and an annual bonus linked to performance. The amount of the annual
bonus is based on the achievement of the personal targets set for the CEO for each
year, as well as on the performance of the Asset Management segment. Rewards
are not based on the achievement of certain indicators but on the Board’s overall
assessment. eQ Plc’s Board of Directors decides on the amount and distribution of
annual bonuses, taking into account, among other things, the criteria for remuneration
described above.
In 2024, the CEO has been paid the following salary and remuneration:
Total fees paid in 2024 – EUR
Fixed fees Variable fees Total
Annual salary
(incl. fringe benefits) Share of total salary Yearly bonuses
1)
One-off payments Share of total salary
CEO Mikko Koskimies 1 Jan. to 27 Oct. 509,783 27.4% 752,592 600,000
2)
72.6% 1,862,375
Acting CEO Janne Larma 28 Oct. to 31 Dec. 106,458 100% 0 0 0% 106,458
Total 616,240 752,592 600,000 1,968,833
1)
Total annual bonuses paid in 2024. The table below details the vesting periods for which bonuses paid in 2024 have been earned. The annual bonus paid to the CEO each year is always based on the performance of the previous year.
2)
In connection with the termination of Mikko Koskimies’ contract as CEO, Mr Koskimies was paid a one-off payment of EUR 600,000.
86eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
For variable remuneration accrued before 2020 and paid in 2021, under the rules in
force at the time of payment, 50 per cent of the variable remuneration had to be
deferred over the next three years (for each year of the equalizer) if the CEO’s variable
remuneration exceeded EUR 50,000 per year. 50 per cent of the deferral fee was to
be linked to the performance of eQ Plc’s share price during the deferral period. The
Board of Directors of eQ Plc decides annually on the interest that may accrue on
the remaining balance. With the change in the remuneration regulation, from 2021
onwards, for accrued variable remuneration, the part of the variable remuneration
exceeding EUR 50 000 will no longer be deferred and amortised.
The table below shows the vesting periods of the variable remuneration paid to CEO
Mikko Koskimies in 2024 (including deferred remuneration due from previous years):
Breakdown of variable fees paid in 2024 – EUR
Year 2023
1)
Year 2020
1)
Total
CEO Mikko Koskimies
1 Jan. to 27 Oct.
2)
631,739 120,854 752,593
1)
The annual bonus earned by the CEO is always based on the performance of the previous year.
2)
Some of the reported bonuses were earned before Mikko Koskimies replaced CEO Janne Larma on 1
April 2021.
The terms and conditions of the CEO’s employment are set out in the CEO contract.
The CEO’s contract may be terminated by either party giving six months’ notice.
If the CEO’s contract is terminated by the company for any reason, or if the contract
is terminated by mutual agreement between the company and the CEO, the CEO
is entitled to a severance payment equal to their total salary for the six months
preceding the termination of the contract, payable on the date of termination. In
connection with the termination of Mikko Koskimies’ contract as CEO, Mr Koskimies
was paid a one-off payment of EUR 600,000.
The retirement age and pension amount of the CEO are determined according to
the Finnish Employees Pensions Act. The CEO does not have any supplementary
pension scheme.
CEO’s participation in stock option plans
In 2024, the eQ Group had two stock option plans: Option Scheme 2018 and Option
Scheme 2022, under which stock options and stock subscription rights were granted
for the long-term commitment of key employees. Mikko Koskimies, who has served
as CEO of eQ Plc, and Janne Larma, the current acting CEO and full-time Chair of
the Board, have been covered by both option schemes. The options granted to Janne
Larma are also described above in the section on the remuneration of the Chair of the
Board. Under the terms of the 2018 and 2022 option schemes, the options have a
holding period of approximately three years, after which the options will vest. There
are no other specific conditions relating to the ownership of options.
Option scheme 2018
Mikko Koskimies and Janne Larma have been covered by the Option Scheme 2018 and
were both initially granted 100,000 stock options as part of the commitment system.
Mikko Koskimies and Janne Larma had exercised all the stock options granted under
the Option Scheme 2018 before the expiry of the Option Scheme.
The subscription period of shares with option rights 2018 began on 1 April 2022 and
ended on 1 April 2024.
Option scheme 2022
Mikko Koskimies and Janne Larma were both granted stock options 2022 as part of
the 2022 commitment system.
The subscription price of 2022 options on 31 December 2024 were EUR 21.45.
In connection with the termination of Mikko Koskimies’ employment, all options
granted to him under the Option Scheme 2022, 50,000 options in total, were returned
to the company as a result of the termination of his employment.
Based on the Option Scheme 2022, 50,000 stock options have been granted to Janne
Larma in 2022 as part of a commitment system.
The subscription period of shares with option rights 2022 will begin on 1 April 2025
and end on 30 April 2027.
87
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Board of Directors
eQ Plc Board of Directors 31 December 2024:
Georg Ehrnrooth
Chair of the Board
Member of the Board since 2011
Born: 1966
Education:
Studies in agriculture and forestry,
Högre Svenska Läroverket, Åbo
Primary working experience:
2008– Management positions in family-owned companies
responsible for finance and investments
2005 eQ Corporation and eQ Bank Ltd, Chief Executive Officer
Primary positions of trust:
Sampo Plc, Member of the Board; Paavo Nurmi Foundation, Member
of the Board; Anders Wall Foundation, Member of the Board;
Louise and Göran Ehrnrooth Foundation, Chair of the Board; Topsin
Investments S.A., Member of the Board; Fennogens Investments
S.A., Member of the Board; Byggmästare Anders J Ahlström Holding
AB, Member of the Board
Not independent of the company and not independent of its
significant shareholders.
Päivi Arminen
Member of the Board since 2023
Born: 1978
Education:
M.Sc. (Econ.), HSE
Primary working experience:
2008–2021 EQT Partners AB, Infrastructure investment,
Managing Director, Director, Associate
2005-2008 Danske Bank A/S / Sampo Bank Plc, Debt Capital
Markets, Vice President, Assistant Vice President
2004–2005 Evli Plc, Equity Analyst
Primary positions of trust:
2023– Interogo Holding AG, Infrastructure investments,
Investment Committee Member
Independent of the company and significant shareholders.
88eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Nicolas Berner
Member of the Board since 2013
Born: 1972
Education:
LL.B, University of Helsinki
Primary working experience:
2011– Berner Ltd, Chief Financial Officer,
1998–2011 Hannes Snellman Attorneys Ltd, Partner
Primary positions of trust:
Berner Ltd, Chair of the Board
Independent of the company and significant shareholders.
Timo Kokkila
Member of the Board since 2016
Born: 1979
Education:
M.Sc. (Eng.), University of Technology Espoo
Primary working experience:
2016–2024 Pontos Group, CEO
2011–2015 Pontos Group, Investment Director
2008–2011 SRV Group Plc, Manager, Project Development
2006–2008 SRV Group Plc, Project Development Engineer
2004–2006 Kampin Keskus Oy, Development Engineer
Primary positions of trust:
Valmet Automotive Ltd, Member of the Board; Pontos Ltd,
Member of the Board
Independent of the company and significant shareholders.
Janne Larma
Member of the Board since 2021
Born: 1965
Education:
M.Sc. (Econ.), Hanken Svenska handelshögskolan
Primary working experience:
2024– eQ Plc, Acting CEO
2011–2021 eQ Plc, CEO
2004–2009 eQ Bank, Member of Management Team
2000– Advium Corporate Finance Ltd, Managing Director
1998–2000 Enskilda Securities, management position in
investment banking
1993–1998 Alfred Berg, investment banking
1988–1992 Kansallis-Osake-Pankki, investment banking
Primary positions of trust:
Notalar Oy, Chair of the Board; Inkoo Shipping Oy, Member of the
Board; Rettig Oy Ab, Member of the Board; Meripuolustussäätiö SR,
Member of the Board
Not independent of the company and not independent of its
significant shareholders.
Tomas von Rettig
Member of the Board since 2019
Born: 1980
Education:
BBA (Bachelor of Business Administration),
Arcada University of Applied Sciences
CEFA -degree, Hanken Svenska handelshögskolan
Primary working experience:
2016–2019 Rettig Oy Ab, CEO
2011–2015 Rettig Oy Ab, vice president business development,
vice president corporate finance and development
2008–2011 Rettig Asset Management Oy Ab, portfolio manager,
senior portfolio manager
2006–2008 Skandinaviska Enskilda Banken, Middle Office function
Primary positions of trust:
Rettig Capital Oy Ab, Member of the Board
Independent of the company, but not independent of its
significant shareholders.
89
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Management Team
eQ Group’s Management Team 31 December 2024:
Janne Larma, Chair
Janne Larma, M.Sc. (Econ), (born 1965) is acting CEO of eQ Plc and
has worked with eQ since 2011. Janne founded Advium Corporate
Finance Ltd in 2000, prior to which he had gained more than ten
years of experience within investment banking. In addition, he has
experience in the asset management business, as Board member
of the parent company of eQ Asset Management Group and as
member of eQ Bank’s management team from 2004 to 2009. Janne
Larma is Member of the Board of eQ Plc.
Tero Estovirta
Tero Estovirta, M.Sc. (Eng.), (born 1971) is Managing Director of eQ
Asset Management Ltd and has worked with eQ since 2014. He
has previously almost 20 years of experience from various positions
in NCC. Most recently he acted as a Managing Director of NCC
Property Development Ltd and as a country manager in Finland.
Jacob af Forselles
Jacob af Forselles, M.Sc. (Econ.), LL.M, (born 1973) is Managing
Director of Advium Corporate Finance Ltd has worked with eQ
since 2024. He previously worked as a Chief Strategy Officer at
Konecranes Plc. Previously in 2008–2018 he worked as Chief
Investment Officer at Ahlström Capital and in various roles at
Mandatum Investment Bank during 1998–2005.
Staffan Jåfs
Staffan Jåfs, M.Sc. (Econ), (born 1974) is responsible for the
private equity asset management and group’s own private equity
investment operations. Staffan has worked in the private equity
business since 2000 and with eQ since 2007. Previously in
2000–2007 he worked at Proventure Ltd as CFO, responsible for
the group’s financial administration.
90eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Antti Lyytikäinen
Antti Lyytikäinen, M.Sc. (Econ.), (born 1981) is CFO of eQ Group.
Antti has worked among financial sector since 2004 and with
eQ since 2011. From 2008 to 2011 he worked at Aberdeen Asset
Management and was responsible for the financial management of
group’s property funds. Prior to that he worked as an Auditor e.g. in
the Financial Services -division of KPMG.
Juha Surve
Juha Surve, LL.M and M.Sc. (Econ.), (born 1980) is Group General
Counsel of eQ Plc, and he also acts as a secretary of the Board
of eQ Plc. Juha has worked among financial sector and capital
markets since 2003 and with eQ since the beginning of year 2012.
From 2008 to 2012 he worked at Castrén & Snellman Attorneys
Ltd expertising in M&A transactions, capital markets and corporate
law. Prior to that he gained over five years’ experience in various
asset management related duties e.g. in OP-Pohjola Group and
Nordea Bank.
91
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Performance based fees of private equity
funds managed by eQ
It is possible for eQ Group to obtain a performance based fee (carried interest) based
on the return of the private equity fund or PE programme fund that eQ manages.
The performance based fee, which is based of fund agreements and belongs to
the management company, is not paid until the return late defined by the hurdle
rate (IRR) has been achieved at cash flow level. Typically, the performance fee will
become payable first towards the end of a fund’s life cycle. If the return from the fund
remains below the hurdle rate, the management company receives no performance
fee. When the hurdle rate has been reached, the management company will receive
the coming cash flow until the entire performance fee accumulated this far has been
obtained (catch up stage, catch up share 100%). After the catch up stage, the cash
flows distributed by the fund will be divided between the management company and
investors according to the fund agreement (e.g. 7.5% / 92.5%).
eQ Group accrues the catch up share of private equity funds’ performance fee
in the income statement. eQ Group will begin to accrue the catch up share of
performance fees when the Group has assessed that it will not be necessary to later
make any considerable cancellations in the accrued and recognised income. Accruals
will be recognised for the funds that fulfil the requirements and that are assessed,
based on cash flows, to pay carried interest in the following five years, the investment
period of which has ended, and regarding which eQ has received return assessments
of the final returns from the targets funds’ management companies. After the catch
up stage, the performance fees will be booked in the income statement according to
the cash flow distributed by the fund and divided between the management company
and investors (e.g. 7.5% / 92.5%).
The estimated returns and performance fees for each separate fund have been
presented on the following page. The catch up share to be recognised in the 2025
income statement is estimated to be around EUR 4.4 million.
92eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Funds – 31 December 2024
Fund Fund size Vintage year Hurdle rate Performance fees
eQ’s share of
the performance fee Present TVPI Estimated TVPI
Estimate on
reaching the hurdle
rate (cash flow)
Estimated catch up
share, total MEUR
(those in accrual)
Estimated future
performance fees,
total MEUR
Performance fees
accrued presently
in the fund’s value,
MEUR
1)
Amanda III MEUR 110 2006 6.00% 10.00% 100% 1.1x 1.1x Will not reach n/a n/a n/a
Amanda V MEUR 50 2011 6.00% 10.00% 100% 1.4x 1.4x Will not reach n/a n/a n/a
eQ PE VI MEUR 100 2013 7.00% 7.50% 100% 1.5x 1.6x 2026 2.3 5.3 4.1
eQ PE VII MUSD 80 2015 7.00% 7.50% 45% 1.8x 2.1x 2026 1.0 3.4 2.4
eQ PE VIII MEUR 160 2016 7.00% 7.50% 100% 1.6x 1.9x 2026 3.1 11.9 7.6
eQ PE IX MUSD 105 2017 7.00% 7.50% 45% 1.8x 2.1x 2026 1.0 4.6 2.9
eQ PE X MEUR 175 2018 7.00% 7.50% 100% 1.3x 1.9x 2028 4.6 14.1 4.3
eQ PE XI MUSD 217 2019 7.00% 7.50% 45% 1.3x 2.1x 2028 2.2 9.2 2.4
eQ PE XII MEUR 205 2020 7.00% 7.50% 100% 1.2x 1.8x 2029 n/a 14.4 3.2
eQ PE XIII MUSD 318 2021 7.00% 7.50% 45% 1.1x 1.8x After 2029 n/a 9.7 n/a
eQ PE XIV MEUR 288 2022 7.00% 7.50% 100% 1.1x 1.8x After 2029 n/a 19.7 n/a
eQ PE XV MUSD 283 2023 7.00% 7.50% 45% n/a 1.8x After 2029 n/a 8.5 n/a
eQ PE XVI MEUR 227 2024 7.00% 7.50% 100% n/a 1.8x After 2029 n/a 16.4 n/a
eQ PE SF II
MEUR 135
2)
2018 10.00% 10.00% 100% 1.3x 1.4x Will not reach n/a n/a n/a
eQ PE SF III MEUR 170
3)
2020 10.00% 10.00% 100% 1.5x 1.8x 2028 3.7 9.3 5.0
eQ PE SF IV MEUR 151
4)
2022 10.00% 10.00% 100% 1.2x 1.8x 2029 n/a 6 1.4
eQ PE SF V MEUR 85
5)
2024 10.00% 10.00% 100% n/a 1.6x After 2029 n/a 1.6 n/a
PE programme funds
MEUR 198 2013–16 8%/12% 7.5%/12% 100% n/a n/a 2026–2028 10.2 24.9 14.4
eQ VC
MUSD 77 2021 7.00% 7.50% 45% 1.0x 2.3x After 2029 n/a 3.4 n/a
eQ VC II MUSD 54 2023 7.00% 7.50% 45% n/a 2.3x After 2029 n/a 2.4 n/a
Total 28.2 164.9 47.6
(31 Dec 23: 26.0) (31 Dec 23: 141.5) (31 Dec 23: 38.4)
of which covered by the catch up accrual 28.2 82.8 43.1
catch up share accrued cumulatively by 31 December 2024 15.4
estimated accrual for 2025 4.4
The return estimates that eQ has presented are based on assessments obtained from the target funds’ management companies regarding the funds that are fully invested and where the investment periods of the target funds have ended. Otherwise, the estimates are based on eQ’s own assessment model.
1)
The amount of the performance fee that eQ would receive, if the investments of the funds were sold at present market value.
2)
Capital covered by the performance fee MEUR 75.
3)
Capital covered by the performance fee MEUR 104.
4)
Capital covered by the performance fee MEUR 71.
5)
Capital covered by the performance fee MEUR 28.
93eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Information about capital adequacy
Capital adequacy management
eQ Group comprises a fully owned subsidiary of eQ Plc, eQ Asset Management Ltd,
which is an investment firm. eQ Asset Management Ltd, as investment firm, and
eQ Plc as the holding company, apply the IFD/IFR regime for in-vestments firms.
This section presents information about the capital adequacy management and
calculations of eQ Group (Pillar III).
Capital adequacy management is a central part of pillar 2 of the capital adequacy
regulations. According to them, investment firms are obliged to consider their capital
adequacy in relation to risks in a more extensive manner than just fulfilling the
calculated capital adequacy requirements set out in the first pillar. In the capital
adequacy manage-ment process, the company builds a motivated view of essential
risks and the risk-based capital need required by them, which is not the same as
the capital adequacy requirement of pillar 1 and may deviate from it. The capital
ad-equacy management process deals with risks that are not taken into consideration
in pillar 1 capital adequacy re-quirements, including qualitative risks. The capital
adequacy management process also takes a stand on the suffi-cient level of risk
management and internal control regarding each separate risk. The capital adequacy
management process is carried out at least once a year and a capital plan describing
the capital need, the sufficiency of capital and capital adequacy is drawn up based on
the process.
The goals and practises of risk management at eQ Group have been presented in
the Notes to the Financial State-ments. Information about the corporate governance
and remuneration in eQ Group can be found as part of the An-nual Report and on
eQ’s website.
Capital adequacy
According to the IFR-regulations, the most restrictive capital requirement for eQ
at the end of the financial period 2024 is defined on the basis of fixed overheads.
The minimum capital requirement based on fixed overheads was EUR 5.7 million.
At the end of the period, the Group’s own funds based on capital adequacy
calculations totalled EUR 16.7 million. Detailed information on the Group’s capital
adequacy can be found in the following section.
Capital adequacy
EUR 1,000
IFR
31 Dec. 2024
eQ Group
IFR
31 Dec. 2023
eQ Group
Equity
73,330 75,436
Common equity tier 1 (CET 1) before deductions
73,330 75,436
Deductions from CET 1
Intangible assets
-29,218 -29,251
Unconfirmed profit for the period
-27,405 -31,524
Dividend proposal by the Board*
0 -1,073
Common equity tier 1 (CET1)
16,707 13,588
Additional tier 1 (AT1)
0 0
Tier 1 (T1 = CET1 + AT1)
16,707 13,588
Tier 2 (T2)
0 0
Total capital (TC = T1 + T2)
16,707 13,588
Own funds requirement according to the most
restrictive requirement (IFR) 5,652 5,375
Fixed overhead requirement
5,652 5,375
K-factor requirement
398 371
Absolute minimum requirement
150 150
EUR 1,000
IFR
31 Dec. 2024
eQ Group
IFR
31 Dec. 2023
eQ Group
Risk-weighted items total – Total risk exposure
70,655 67,188
Common equity tier (CET1) / own funds
requirement, % 295.6% 252.8%
Tier 1 (T1) / own funds requirement, %
295.6% 252.8%
Total capital (TC) / own funds requirement, %
295.6% 252.8%
Common equity tier 1 (CET1) / risk weights, %
23.6% 20.2%
Tier 1 (T1) / risk weights, %
23.6% 20.2%
Total capital (TC) / risk weights, %
23.6% 20.2%
Excess of total capital compared with
the minimum level 11,055 8,213
Total capital compared with the target level
(incl. a 25% risk buffer for the requirement) 9,642 6,869
*The dividend and equity repayment proposed by the Board exceeding the profit for the period.
94eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Composition of regulatory own funds (EU IF CC1)
EUR 1,000
(a) (b)
Amounts
Source based on
reference num-bers/
letters of the balance
sheet in the audited
financial statements
Common Equity Tier 1 (CET1) capital: instruments and reserves
1
Own funds
16,707
2
Tier 1 capital
16,707
3
Common equity tier 1 capital
45,925
4
Paid up capital instruments
11,384 Row 23, CC2
5
Share premium
27,279 Row 24, CC2
6
Retained earnings
7,262 Row 25, CC2
11
(-) Total deductions from common equity tier 1
-29,218
17
(-) Goodwill
-25,212 Row 7, CC2
18
(-) Other intangible assets
-4,005 Rows 7, 8 and 9, CC2
25
(-) Other deductions
0
Own funds: reconciliation of regulatory own funds to balance sheet in the audited fi-nancial statements (EU IF CC2)
(a) (b) (c)
Balance sheet as in audited financial
statements
Under regulatory scope of
consolidation Cross refer-ence to EU IFCC 1
As at period end, EUR 1,000 As at period end, EUR 1,000
Assets – Breakdown by asset classes according to the balance sheet in the audited financial statements
1
Liquid assets
109
2
Claims on credit institutions
7,874
3
Financial assets
4
Financial securities
9,026
5
Private equity and real estate fund investments
16,971
6
Intangible assets
7
Fair value and brands
29,212 Row 17, CC1
8
Client agreements
0 Row 17 and 18, CC1
9
Other intangible assets
5 Row 17 and 18, CC1
10
Tangible assets
11
Right-of-use assets
3,250
12
Tangible assets
389
13
Other assets
27,537
14
Accruals and prepaid expenditure
549
15
Income tax receivables
7
16
Deferred tax assets
143
17
Total Assets
95,071
Liabilities – Breakdown by liability classes according to the balance sheet in the audited financial statements
18
Other liabilities
6,826
19
Accruals and deferred income
10,923
20
Lease liabilities
3,963
21
Income tax liabilities
30
22
Total Liabilities
21,742
Shareholders’ Equity
23
Share capital
11,384 Row 4, CC1
24
Reserve for invested unrestricted equity
27,279 Row 5, CC1
25
Retained earnings
7,262 Row 6, CC1
26
Profit (loss) for the period
27,405
27
Total Shareholders' equity
73,330
Audited consolidated balance sheet and regulatory own funds under regulatory scope of consolidation are equal.
95
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Own funds: main features of own instruments (EU IF CCA)
1 Issuer eQ Plc
2 Unique identifier ISIN: FI0009009617
3 Public or private placement Public
4 Governing law(s) of the instrument Finnish law, EU's IFR regulation 2019/2033,
EU's CRR regulation 575/2013
5 Instrument type CET1
6 Amount recognised in regulatory capital (MEUR) 11,4
7 Nominal amount of instrument n/a
8 Issue price n/a
9 Redemption price n/a
10 Accounting classification Shareholders' equity
11 Original date of issuance 1 Nov 2000
12 Perpetual or dated Perpetual
13 Original maturity date No maturity
14 Issuer call subject to prior supervisory approval n/a
15 Optional call date, contingent call dates
and redemption amount
n/a
16 Subsequent call dates, if applicable n/a
Coupons / dividends
17 Fixed or floating dividend/coupon Floating
18 Coupon rate and any related index n/a
19 Existence of a dividend stopper No
20 Fully discretionary, partially discretionary
or mandatory (in terms of timing)
Fully discretionary
21 Fully discretionary, partially discretionary
or mandatory (in terms of amount)
Fully discretionary
22 Existence of step up or other incentive to redeem No
23 Noncumulative or cumulative Non-cumulative
24 Convertible or non-convertible Non-convertible
25 If convertible, conversion trigger(s) n/a
26 If convertible, fully or partially n/a
27 If convertible, conversion rate n/a
28 If convertible, mandatory or optional conversion n/a
29 If convertible, specify instrument type convertible into n/a
30 If convertible, specify issuer of instrument it converts into n/a
31 Write-down features n/a
32 If write-down, write-down trigger(s) n/a
33 If write-down, full or partial n/a
34 If write-down, permanent or temporary n/a
35 If temporary write-down, description of write-up mechanism n/a
36 Non-compliant transitioned features No
37 If yes, specify non-compliant features n/a
38 Link to the full term and conditions of the instrument (signposting) See equity note of the consolidated financial statement
96eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Information to the shareholders
eQ Plc’s share
eQ Plc’s share is traded on Nasdaq Helsinki. At the end of 2024, the company had had
8,073 shareholders (8,376 shareholders on 31 Dec. 2023). The largest shareholders
have been presented in the Report by the Board of Directors.
• Symbol: EQV1V
• Sector: Financial Services
• Market capitalisation classification: Mid Cap companies
Why to invest in eQ’s share
eQ Plc aims in a strong growth, constant cost-efficiency and to pay competitive
dividend. eQ Plc aims at creating value for its shareholders through profitable and
growing business areas. eQ Asset Management has a strong position as a service
provider for the most professional investors in Finland. According to annual SFR-survey
about 68 per cent of 100 largest institutional investors in Finland use eQ Asset
Management’s services. (SFR-survey 2024). In alternative investments eQ was by far
the most used asset manager. We estimate that the long-term outlook for growth in
the asset management market and for eQ in Finland is still good.
eQ also has committed personnel. Personnel owns over 20 per cent of eQ Plc and
personnel’s satisfaction is at an excellent level according to the personnel surveys.
Professional and committed employees are the key to good customer services,
investment operations and advisory.
20242023202220212020
NUMBER OF SHAREHOLDERS
9,000
8,000
7,000
6,000
5,000
4,000
3,000
2,000
1,000
0
8,376
8,277
7,883
7,261
8,073
35
30
25
20
15
10
5
0
2023 202420222021202020192018201720162015
SHARE PRICE DEVELOPMENT 2015 TO 2024,
EUR
eQ Plc
98eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
Calendar in 2025
In connection with the publication of
the financial reports, eQ will arrange
a result presentation for investors,
analysts and representatives of
the media. The interim and half
year reports will be available on
eQ’s website at www.eQ.fi/en.
Annual General Meeting
eQ Plc’s Annual General Meeting (AGM) will be held on Tuesday 25 March 2025.
Detailed information and instructions for participation can be found on the company
website at www.eQ.fi/en.
Dividend distribution
The Board of Directors proposes to the Annual General Meeting that a dividend of
EUR 0.66 per share be paid out. The dividend is paid in two instalments. The first
instalment, EUR 0.33 per share, is paid to those who are registered as shareholders in
the company’s shareholder register maintained by Euroclear Finland Ltd on the record
date 27 March 2025. The Board proposes that the first instalment of the dividend be
paid out on 3 April 2025.
The second instalment, EUR 0.33 per share, is paid in October 2025. The second
instalment is paid to those who are registered as shareholders in the company’s
shareholder register maintained by Euroclear Finland Ltd on the record date. The Board
of Directors will decide the record date and payment date of the second instalment of
the dividend payment at its meeting in September 2025. The planned record date is 7
October 2025 and the dividend payment date 14 October 2025.
Analysts following eQ Plc
The analysts mentioned below follow eQ Plc. eQ is not responsible for their comments
or assessments.
• Inderes Oy, Sauli Vilén, +358 44 025 8908, sauli.vilen@inderes.fi
• OP Corporate Bank Plc, Antti Saari, +358 10 252 4359, antti.saari@op.fi
Investor relations, contact information
CFO
Antti Lyytikäinen
+358 40 709 2847
antti.lyytikainen@eQ.fi
ANNUAL REPORT:
WEEK
ANNUAL GENERAL
MEETING:
MARCH
RECORD DATE OF THE FIRST
INSTALMENT OF THE DIVIDEND:
MARCH
RECORD DATE OF
THE SECOND INSTALMENT
OF THE DIVIDEND
PRELIMINARY:
OCTOBER
PAYMENT DATE OF
THE FIRST INSTALMENT
OF THE DIVIDEND:
APRIL
PAYMENT DATE OF
THE SECOND INSTALMENT
OF THE DIVIDEND
PRELIMINARY:
OCTOBER
Q INTERIM REPORT:
APRIL
HALF YEAR
FINANCIAL REPORT:
AUGUST
Q INTERIM REPORT:
OCTOBER
99
eQ in 2024 Business Areas Sustainability Report by the Board of Directors Financial Statement Corporate Governance To the Shareholders
