City Service : Consolidated Annual Report and Financial Statements 2022 (2 MB)

CONSOLIDATED

ANNUAL REPORT

CONSOLIDATED

ANNUAL REPORT

FOR 2022

Beginning of the reporting period	1 January 2022
End of the reporting period	31 December 2022
Business name	City Service SE
Registration number	12827710
Legal address	Narva mnt. 5, 10117 Tallinn,
	the Republic of Estonia
Telephone	[phone]
Fax	[phone]
E-mail	[e-mail]
Website	http://www.cityservice.eu
Auditor	Ernst & Young Baltic AS

CONTENTS

1. Corporate profile	6
1.1.	City Service Group	6
1.2.	Strategy and objectives	7
1.3.	Mission and vision	7
1.4. Structure of the Group	8
1.5.	Employees	9

2. Management and Corporate	10
	Governance report
2.1.	Main areas of activity	10
2.1.1.	Administration of apartment buildings	10
2.1.2.	Management of commercial building facilities	14
2.1.3.	Maintenance and cleaning of territories	16
2.1.4.	Other activities	17
2.2.	Performance improvement	18
2.3.	The most significant investments and events	19
2.4.	Key risk activity types and uncertainties	22
2.5.	The main financial ratios concerning the financial year	23
2.6.	The structure of the Company's share capital	25
2.7.	The shareholders of the Company	26
2.8.	Restrictions on the transfer of securities and restrictions on voting rights	26
2.9.	Company's supervisory board and management board	27
2.9.1.	Company's supervisory board	27
2.9.2.	Company's management board	30
2.10.	Dividend policy	32
2.11.	Procedure of amendment of the Statutes of the Company	32
2.12.	Material agreements concluded by the Company which may be important	32
	after change of control of the Company
2.13.	Auditing system and description of the main features of internal audit	33
	and risk management systems in connection with the process of the preparation
	of the annual accounts
2.14.	Information on compliance with the corporate governance code	35
2.15.	Remuneration report	37

3. Social responsibility report	38
3.1.	Overview	38
3.2.	Market	39
3.3.	Relations with employees	40
3.4. Social initiatives for communities	42
3.5. Environmental issues / Energy saving	43
3.6.	Taxonomy overview	44

4. Consolidated financial statements

Consolidated statement of financial position	46
Consolidated statement of comprehensive income	48
Consolidated statement of changes in equity	49
Consolidated statement of cash flows	50
Notes to the financial statements	52
Note 1 General information	52
Note 2 Accounting policies	63
Note 3 Use of judgements and estimates in preparation of financial statements	80
Note 4 Segment information	83
Note 5 Goodwill	86
Note 6 Other intangible assets	96
Note 7 Property, plant and equipment	98
Note 8 Discontinued operations and assets held for sale	100
Note 9 Material partly-owned subsidiaries	104
Note 10 Inventories	105
Note 11 Prepayments	105
Note 12 Non-current receivables	105
Note 13 Trade receivables	105
Note 14 Cash and cash equivalents	106
Note 15 Reserves and share premium	107
Note 16 Borrowings	108
Note 17 Provisions	110
Note 18 Lease	110
Note 19 Provision for employee benefits	111
Note 20 Trade payables and payables to related parties	112
Note 21 Contract liabilities - advances received	112
Note 22 Other current liabilities	112
Note 23 Cost of sales	113
Note 24 General and administrative expenses	113
Note 25 Other operating income and expenses	114
Note 26 Other finance income and (expenses)	114
Note 27 Income tax	114
Note 28 Basic and diluted earnings per share (EUR)	118
Note 29 Dividends per share	118
Note 30 Financial assets and liabilities and risk management	118
Note 31 Commitments and contingencies	123
Note 32 Related party transactions	124
Note 33 Capital management	126
Note 34 Subsequent events	127
Note 35 Parent company's unconsolidated financial statements	127

2 May 2023

DECLARATION

OF THE MANAGEMENT

According to Management Board Regulations of City Service SE, Chairman of the Management Board hereby declares and confirms that according to his best knowledge, the financial state- ments, prepared according to the accounting standards in force, present a correct and fair view of the assets, liabilities, financial situation and loss or profit of the issuer and the undertakings involved in the consolidation as a whole, and the management report gives a correct and fair view of the development and results of the business activities and financial status of the issuer and the undertakings involved in the consolidation as a whole and contains a description of the main risks and doubts.

Chairman of the Management Board

Artūras Gudelis