Investor Presentaiton
CONSOLIDATED FINANCIAL STATEMENTS | NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS | FINANCIAL PERFORMANCE
2.2 COSTS AND EXPENSES
Costs and expenses, MEUR
Direct materials, supplies and subcontracting
Wages, salaries, and other employment expenses including pensions (note 5.7)
Other production costs
Selling, administrative and other expenses
Items impacting comparability
Depreciation and amortization (note 2.3)
Costs, expenses, depreciation and amortization
Other income
Jan 1-Dec 31, 2022
4,458.2
3,533.4
874.1
750.1
Jan 1-Dec 31, 2021
4,297.3
3,222.5
789.6
703.3
45.4
259.3
9,920.5
45.0
14.5
244.0
9,271.3
52.5
The majority of expenses of operations arise from direct
materials and supplies, as well as cost of subcontracting.
Other production costs comprise of logistics, tools and
consumables, operative car fleet and traveling as well as
other miscellaneous items of direct costs. Selling,
administrative and other expenses include costs related to
premises, consulting and external services, IT and traveling
as well as other miscellaneous administrative costs.
In 2022, items affecting comparability included charges for
the impairment of assets and recognition of provisions for
commitments in Russia and Ukraine, as well as costs for
restructuring measures. In the comparison periods, items
affecting comparability consisted of restructuring costs.
Other income comprises of rental income, received grants,
interest on late payments, gains on sale of fixed assets and
scrap as well as other miscellaneous income.
Total costs, expenses, depreciation and amortization
9,875.5
9,218.8
In 2021, other income includes EUR 19.9 million net gain from the sale of Motala Hissar AB and land area and adjacent building in India.
Expense arising from leases of low-value assets and short-term leases amounted to EUR 12.6 (11.7) million in 2022.
Research and development costs, MEUR
Jan 1-Dec 31, 2022
Jan 1-Dec 31, 2021
187.8
1.7
188.8
1.8
R&D costs included in total costs
As percentage of sales, %
Auditors' fees, MEUR
To member firms of Ernst & Young network
Auditors' statements
Tax services
Other services
Total
Jan 1-Dec 31, 2022
Jan 1-Dec 31, 2021
3.8
3.2
0.1
0.3
0.2
0.1
4.1
3.7
Accounting principles
Research and development costs
Research and development costs are expensed as they
incur, because the future economic benefits of new
products and development of existing products and
services can only be proven after their successful
introduction to the market.
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