Related Parties

Pihlajalinna Plc complies with the current regulations and the recommendations of the Finnish Corporate Governance Code 2025 for listed companies (available at www.cgfinland.fi/en) for monitoring related parties transactions. 

The purpose of Pihlajalinna Plc's Guidelines on Related Party Transactions is to ensure that any business transactions involving persons belonging to the Company's related parties are made independently and based on market terms. This also applies to business transactions that otherwise may raise suspicions on whether the transaction was made on market terms. The Company assesses and monitors that any related party transactions are overall in the best interests of the Company and that any conflicts of interest are duly taken into account when making decisions on related party transactions. The principles of the Guidelines on Related Party Transactions are observed throughout the Pihlajalinna Group and in the decision-making concerning all of the Group companies.

Pihlajalinna Plc's related parties include the Pihlajalinna Group's executives, such as the members, deputy members (if any) and secretary of the Board of Directors, the CEO, Deputy CEO and members of the Management Team, and the aforementioned persons' spouses and common-law spouses and other people living in the same household. In addition, related parties include organizations in which an above-mentioned related party, either alone or together with other related parties, exercises significant influence or control. Related parties also include the Company's subsidiaries, associated companies and joint ventures and their CEOs and Board members, as well as any organizations in which the above-mentioned parties exercise significant influence or control. Furthermore, related parties include the Company's shareholders holding at least 10 per cent of the Company's shares or votes.

Pihlajalinna Plc maintains an up-to-date register of major business transactions between the Company and its related parties and the key terms of such transactions. The information entered in the register is collected annually from the persons belonging to the Company's related parties. In addition, persons considered as the Company's related parties are obliged to notify the Company's related party administration of any related party transactions which are being planned or which have come to their knowledge. Such notification must be made without delay after receiving such information.

The Company's related party register is not public, and any information entered in it will not be disclosed to third parties, with the exception of any authorities and the auditor entitled to receive such information. Any related party transactions will be processed in accordance with the Guidelines on Related Party Transactions approved by Pihlajalinna Plc's Board of Directors. Any major transactions to be performed with Pihlajalinna's management and its related parties shall be approved by the Board of Directors.