Auditor’s report To the general meeting of the shareholders of Hemnet Group AB (publ), corporate identity number 559088-4440
Report on the annual accounts and consolidated accounts Opinions We have audited the annual accounts and consolidated accounts of Hemnet Group AB (publ) except for the corporate governance statement on pages 30-35 for the year 2021. The annual accounts and consolidated accounts of the company are included on pages 27-68 in this document. In our opinion, the annual accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the parent company as of 31 December 2021 and its financial performance and cash flow for the year then ended in accordance with the Annual Accounts Act. The consolidated accounts have been prepared in accordance with the Annual Accounts Act and present fairly, in all material respects, the financial position of the group as of 31 December 2021 and their financial performance and cash flow for the year then ended in accordance with International Financial Reporting Standards (IFRS), as adopted by the EU, and the Annual Accounts Act. Our opinions do not cover the corporate governance statement on pages 30-35. The statutory administration report is consistent with the other parts of the annual accounts and consolidated accounts. We therefore recommend that the general meeting of shareholders adopts the income statement and balance sheet for the parent company and the group. Our opinions in this report on the annual accounts and consolidated accounts are consistent with the content of the additional report that has been submitted to the parent company's audit committee in accordance with the Audit Regulation (537/2014) Article 11.
Basis for Opinions We conducted our audit in accordancewith International Standards on Auditing (ISA) and generally accepted auditing standards in Sweden. Our responsibilities under those standards are further described in the Auditor’s Responsibilities section. We are independent of the parent company and the group in accordance with professional ethics for accountants in Sweden and have otherwise fulfilled our ethical responsibilities in accordancewith these requirements. This includes that, based on the best of our knowledge and belief, no prohibited services referred to in the Audit Regulation (537/2014) Article 5.1 have been provided to the audited company or, where applicable, its parent company or its controlled companieswithin the EU.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinions.
Key Audit Matters Särskilt betydelsefulla områden för revisionen är de områden somenligt vår Key audit matters of the audit are thosematters that, in our professional judgment, were of most significance in our audit of the annual accounts and consolidated accounts of the current period. Thesematterswere addressed in the context of our audit of, and in forming our opinion thereon, the annual accounts and consolidated accounts as awhole, but we do not provide a separate opinion on thesematters. For eachmatter below, our description of howour audit addressed thematter is provided in that context. We have fulfilled the responsibilities described in the Auditor’s responsibilities for the audit of the financial statements section of our report, including in relation to thesematters. Accordingly, our audit included the performance of procedures designed to respond to our assessment of the risks of material misstatement of the financial statements. The results of our audit procedures, including the procedures performed to address thematters below, provide the basis for our audit opinion on the accompanying financial statements.
Valuation goodwill and other intangible assets with an indefinite useful life
DESCRIPTION
HOW OUR AUDIT ADDRESSED THIS KEY AUDIT MATTER
In our audit, we have evaluated and reviewed key assumptions, application of valuation theory, used valuation model, discount rate and other source data used by the company. For example, we have compared external data sources, such as assumptions of future market growth and assessed the sensitivity of the company's valuation model. We have used our valuation specialists in this work. In particular, we have focused on the sensitivity of the calculations and have assessed whether there is a risk that reasonably probable course of events would give rise to a situation where the recoverable amount would be less than carrying amounts. We have also assessed the company's historical forecasting ability. Finally, we have audited the disclosures made in Note K13 (Intangible Assets).
As of December 31, 2021, the value of goodwill and other intangible assetswith an indefinite useful life amounts to SEK 1,144million and represents 54%of the Group's assets. Goodwill is reviewed for potential impairment whenever there is an indication that the current valuemay be impaired, or at least annually. The recoverable amount is determined as the value-in-use, which is calculated based on the discounted present value of future cash flows. Key assumptions in this calculation include future growth, EBITDAmargin and applied discount rate. Goodwill and other intangible assets with an indefinite useful life constitute a key audit matter as the process of calculating the value-in-use is based on judgments and assumptions of how the Group's operations will be affected by future development in the market and other economic events, and that the underlying calculations are complex. See Note K1 for accounting principles regarding the valuation of goodwill and other intangible assets with an indefinite useful life and Note K2 and K13 for the company's description of the assumptions and judgments made in connection with the execution of the impairment test.
AUDIT REPORT
HEMNET GROUP | ANNUAL AND SUSTAINABILITY REPORT 2021· 69
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