Notes to the balance sheet

Please note that the figures are written according to Finnish standards, which means that decimals are separated through commas instead of periods.

NOTES TO THE BALANCE SHEET (€1,000)
	Group		Parent company
	2017	2016	2017	2016
9. INTANGIBLE ASSETS
Intangible rights
Acquisition cost 1 January	1 445	1 254	1 245	1 240
Increase	11	205	11	5
Decrease	-5	0	-5	0
Transfer between categories	0	-14	0	0
Acquisition cost 31 December	1 451	1 445	1 251	1 245
Accumulated depreciation
and impairment charges 1 January	-242	-180	-240	-180
Depreciation of the financial year	-80	-62	-60	-60
Book value 31 December	1 129	1 204	951	1 005
Goodwill
Acquisition cost 1 January	6 000	6 000	0	0
Acquisition cost 31 December	6 000	6 000	0	0
Accumulated depreciation
and impairment charges 1 January	-3 200	-2 800	0	0
Depreciation of the financial year	-400	-400	0	0
Book value 31 December	2 400	2 800	0	0
Emission reductions
Acquisition cost 1 January	5 241	5 717	5 241	5 717
Increase	844	1 225	844	1 225
Decrease	-1 937	-1 702	-1 937	-1 702
Acquisition cost 31 December	4 147	5 241	4 147	5 241
Book value 31 December	4 147	5 241	4 147	5 241
Other capitalised long-term expenses
Acquisition cost 1 January	17 907	13 407	4 474	3 527
Increase	652	4 486 1)	316	947
Transfer between categories	0	14	0	0
Acquisition cost 31 December	18 559	17 907	4 790	4 474
Accumulated depreciation
and impairment charges 1 January	-5 968	-4 884	-3 125	-2 729
Depreciation of the financial year	-1 227	-1 084	-434	-396
Book value 31 December	11 364	11 939	1 232	1 349
Intangible assets in total
Acquisition cost 1 January	30 593	26 378	10 960	10 485
Increase	1 507	5 916	1 171	2 177
Decrease	-1 942	-1 702	-1 942	-1 702
Acquisition cost 31 December	30 158	30 593	10 189	10 960
Accumulated depreciation
and impairment charges 1 January	-9 410	-7 864	-3 365	-2 909
Depreciation of the financial year	-1 707	-1 546	-494	-456
Book value 31 December	19 041	21 182	6 330	7 595
10. TANGIBLE ASSETS
Land areas
Acquisition cost 1 January	6 116	5 274	2 529	2 496
Increase	311	617	0	33
Decrease	-22	-3	0	0
Transfer between categories	0	228	0	0
Acquisition cost 31 December	6 405	6 116	2 529	2 529
Book value 31 December	6 405	6 116	2 529	2 529
Revaluation included in the
acquisition cost of land areas
Revaluation 1 January	1 682	1 682	1 682	1 682
Revaluation 31 December	1 682	1 682	1 682	1 682
The revaluation is based on the presumable transfer price.
Deferred tax share of the revaluation	336	336	336	336
Peat resources
Acquisition cost 1 January	1 097	977	0	0
Increase	54	121	0	0
Acquisition cost 31 December	1 151	1 097	0	0
Depreciation of the financial year	-43	-27	0	0
Book value 31 December	1 080	1 070	0	0
Buildings
Acquisition cost 1 January	48 469	35 156	5 914	5 454
Increase	862 1)	13 405 1)	163	553
Decrease	-353	-93	-353	-93
Transfer between categories	182	0	182	0
Acquisition cost 31 December	49 160	48 469	5 906	5 914
Accumulated depreciation
and impairment charges 1 January	-9 423	-7 901	-4 198	-4 156
Accumulated depreciation
from deduction	353	93	353	93
Depreciation of the financial year	-1 904	-1 614	-145	-134
Book value 31 December	38 186	39 046	1 916	1 716
Machinery and equipment
Acquisition cost 1 January	249 764	190 600	17 685	14 313
Increase	7 018	59 743 1)	3 391	3 372
Decrease	-47	-579	-47	0
Transfer between categories	-182	0	-182	0
Acquisition cost 31 December	256 552	249 764	20 846	17 685
Accumulated depreciation
and impairment charges 1 January	-51 167	-40 701	-9 004	-8 605
Accumulated depreciation
from deduction	47	27	47	0
Depreciation of the financial year	-12 322	-10 494	-592	-398
Book value 31 December	193 110	198 597	11 298	8 681
Book value share of the
machinery and equipment used for production	194 458	197 815	11 076	8 409
1) Increases mainly wind power investments
Transmission network
Acquisition cost 1 January	54 870	45 801	51 537	42 467
Increase	17 266	10 464	2 214	10 464
Decrease	0	-1 394	0	-1 394
Acquisition cost 31 December	72 136	54 870	53 751	51 537
Accumulated depreciation
and impairment charges 1 January	-17 095	-15 139	-16 029	-14 355
Accumulated depreciation
from deduction	0	32	0	32
Depreciation of the financial year	-2 326	-1 987	-1 969	-1 706
Book value 31 December	52 716	37 776	35 753	35 508
Other tangible assets
Acquisition cost 1 January	1 081	1 081	0	0
Acquisition cost 31 December	1 081	1 081	0	0
Accumulated depreciation
and impairment charges 1 January	-574	-501	0	0
Depreciation of the financial year	-72	-72	0	0
Book value 31 December	435	507	0	0
Pending peat acquisitions
Acquisition cost 1 January	4 982	4 534	0	0
Increase	759	989	0	0
Decrease	-262	-313	0	0
Transfer between categories	0	-228	0	0
Acquisition cost 31 December	5 479	4 982	0	0
Book value 31 December	5 479	4 982	0	0
Advance payments and acquisitions in progress
Acquisition cost 1 January	49 443	76 548	204	1 028
Increase	92 306	30 405	42	54
Decrease	-3 224	-57 510	-200	-878
Acquisition cost 31 December	138 526	49 443	46	204
Book value 31 December	138 526	49 443	46	204
Tangible assets in total
Acquisition cost 1 January	415 823	359 970	77 869	65 758
Increase	118 575	115 744	5 809	14 476
Decrease	-3 908	-59 891	-601	-2 365
Acquisition cost 31 December	530 490	415 823	83 078	77 869
Accumulated depreciation
and impairment charges 1 January	-78 286	-64 242	-29 231	-27 117
Accumulated depreciation
from deduction	401	152	401	124
Depreciation of the financial year	-16 668	-14 196	-2 706	-2 239
Book value 31 December	435 937	337 537	51 542	48 638
11. CAPITALISED INTEREST COSTS
Capitalised during the financial year	1 068	1 374	0	0
Including capital interest costs
Advance payments and acquisitions in progress	2 023	956	0	0
Other long-term expenses	70	73	0	0
Buildings and construction	322	336	0	0
Machinery and equipment	2 322	2 464	0	0
	4 737	3 829	0	0
12. INVESTMENTS
Interest in group companies
Acquisition cost 1 January	264	264	123 668	90 131
Increase	0	0	17 115	33 537
Acquisition cost 31 December	264	264	140 783	123 668
Book value 31 December	264	264	140 783	123 668
Interest in associated companies
Acquisition cost 1 January	166 225	171 252	155 737	159 855
Increase	30	3 532	30	3 443
Decrease	-6	-8 560	0	-7 561
Acquisition cost 31 December	166 249	166 225	155 767	155 737
Book value 31 December	166 249	166 225	155 767	155 737
Other holdings and interests
Acquisition cost 1 January	6 523	12 007	6 523	12 007
Decrease	-1 153	-5 484	-1 153	-5 484
Acquisition cost 31 December	5 370	6 523	5 370	6 523
Book value 31 December	5 370	6 523	5 370	6 523
Investments in total
Acquisition cost 1 January	173 012	183 522	285 928	261 992
Increase	30	1 714	17 145	35 162
Decrease	-1 158	-12 225	-1 153	-11 227
Acquisition cost 31 December	171 883	173 012	301 919	285 928
Book value 31 December	171 883	173 012	301 919	285 928

NOTES TO THE BALANCE SHEET (€1,000)
INVESTMENTS
Company name	Domicile	Group interest %	Group voting share %	Parent company interest %	Holdings of parent company
					Pcs.	Book value
Holdings in group companies
EPV Alueverkko Oy	Vaasa	100,0	100,0	100,0	150	3
EPV Bioturve Oy	Vaasa	100,0	100,0	100,0	1 000	6 150
EPV Tase Oy	Vaasa	100,0	100,0	100,0	500	500
EPV Tuulivoima Oy (A)	Vaasa	100,0	100,0	100,0	1 000	4 750
EPV Tuulivoima Oy (B)	Vaasa	100,0	100,0	100,0	5 200	25 933
EPV Tuulivoima Oy (C)	Vaasa	100,0	100,0	100,0	4 700	23 500
EPV Tuulivoima Oy (D)	Vaasa	100,0	100,0	100,0	8 000	40 000
Tornion Voima Oy	Tornio	100,0	100,0	100,0	7 500	15 008
Vaskiluodon Teollisuuskiinteistöt Oy	Vaasa	100,0	100,0	100,0	4 000	264
EPV Teollisuusverkot Oy (A)	Vaasa	90,0	90,0	90,0	90	3
EPV Tuotantoverkot Oy	Helsinki	100,0	100,0	100,0	16 000	17 115
Rajakiiri Oy (A)	Tornio	60,2	60,2	60,2	9 431	3 313
Rajakiiri Oy (B)	Tornio	75,2	75,2	75,2	5 762	4 246
Holdings in associated companies
EPM Metsä Oy	Vaasa	50,0	50,0	50,0	200 000	174
Rapid Power Oy	Vaasa	50,0	50,0	50,0	5 000	26 804
Suomen Merituuli Oy	Helsinki	50,0	50,0	50,0	1 000	1 000
Vaskiluodon Voima Oy	Vaasa	50,0	50,0	50,0	300	505
Raahen Voima Oy	Raahe	25,0	25,0	25,0	675 625	8 376
Voimapiha Oy (A)	Helsinki	16,7	32,7	16,7	200 000	20 000
Woodtracker Oy	Espoo	30,0	30,0	30,0	30 000	30
Pohjolan Voima Oyj (A)					692 549
Pohjolan Voima Oyj (B)					230 558
Pohjolan Voima Oy (B2)					297 418
Pohjolan Voima Oyj (C2)					11 624
Pohjolan Voima Oyj (C)					318 041
Pohjolan Voima Oyj (M)					9 355
Pohjolan Voima Oyj (V)					224 735
				5,5	1 784 280	38 087
Teollisuuden Voima Oyj (A)					44 562 213
Teollisuuden Voima Oyj (B)					44 562 203
Teollisuuden Voima Oyj (C)					2 246 704
				6,6	91 371 120	58 974
Manga LNG Oy				5,0	1 389 885	1 818
Other shares and holdings owned by the parent company
Suomen Energiavarat Oy (A)	Vaasa			100,0	4 400	3
Suomen Energiavarat Oy (B)	Vaasa			3,9	1 176	4 998
Innopower Oy (A,C)				9,8	12 580	127
Powest Oy (E)				1,0	13 206	89
Others						153
						301 919

NOTES TO THE BALANCE SHEET (€1,000)
	Group		Parent company
	2017	2016	2017	2016
13. INVENTORIES
Power plant fuels	5 825	5 563	0	0
14. NON-CURRENT RECEIVABLES
Loan receivables	38 484	31 411	38 922	31 411
Unpaid equity capital 1)	0	3 277	0	3 277
Other long-term receivables	307	567	250	328
	38 791	35 255	39 172	35 015
Receivables from group companies
Loan receivables	-	-	858	0
Receivables from associated companies
Loan receivables	37 963	31 410	37 963	31 410
15. CURRENT RECEIVABLES
Trade receivables	31 342	29 268	11 998	13 007
Loan receivables	0	0	3 823	6 489
Unpaid equity capital 1)	24 767	27 846	24 767	27 846
Prepayments and accrued income *)	10 947	10 784	2 800	2 807
Other receivables	8 019	8 138	180	2 178
	75 075	76 036	43 568	52 327
Share issue receivables concerning wind power investments and the OL3 project.
Receivables from group companies
Trade receivables	-	-	1	1
Loan receivables	-	-	3 823	6 489
Prepayments and accrued income	-	-	0	0
Other receivables	-	-	117	47
	-	-	3 941	6 537
Receivables from associated companies
Trade receivables	4 401	4 343	32	31
Prepayments and accrued income	38	0	38	0
Other receivables	474	494	34	238
	4 913	4 837	104	269
*) Constituents of prepayments and accrued income
Accrued electricity purchases	2 632	2 726	2 632	2 726
Accrued electricity and heat sales	524	821	0	0
Accrued energy support	7 033	6 299	0	0
Accured interest income	38	0	39	0
Others	539	938	130	81
	10 947	10 784	2 800	2 807
16. SHAREHOLDERS' EQUITY
Restricted shareholders' equity
Equity capital 1 January	12 961	12 459	12 961	12 459
Increase in equity capital	508	618	508	618
Returned to shareholders	0	-116	0	-116
Equity capital 31 December	13 469	12 961	13 469	12 961
Share issue 1 January	929	1 589	929	1 589
Transfer to equity capital	-508	-618	-508	-618
Expiration of underwriting	0	-42	0	-42
Share issue 31 December	421	929	421	929
Share premium reserve 1 January	51 933	57 850	51 933	57 850
Returned to shareholders	0	-5 917	0	-5 917
Share premium reserve 31 December.	51 933	51 933	51 933	51 933
Revaluation reserve 1 January	1 245	1 245	1 245	1 245
Revaluation reserve 31 December	1 245	1 245	1 245	1 245
Statutory reserve 1 January	5 273	5 273	5 273	5 273
Statutory reserve 31 December	5 273	5 273	5 273	5 273
Total restricted shareholders' equity	72 340	72 340	72 340	72 340
Unrestricted shareholders' equity
Invested unrestricted equity reserve 1 January	197 892	207 032	197 892	207 032
Returned to shareholders	0	-6 682	0	-6 682
Expiration of underwriting	0	-2 458	0	-2 458
Invested unrestricted equity reserve 31 December	197 892	197 892	197 892	197 892
Retained result 1 January	75 875	74 272	15 827	19 435
Retained result 31 December	75 875	74 272	15 827	19 435
Result of the financial year	10 304	1 603	807	-3 608
Total unrestricted shareholders' equity	284 070	273 767	214 526	213 719
TOTAL SHAREHOLDERS' EQUITY	356 410	346 107	286 866	286 059
Depreciation difference
Depreciation difference share entered under equity capital	60 605	51 061	-	-
Calculation of distributable equity 31 December
Retained result	-	-	15 827	19 435
Result of the financial year	-	-	807	-3 608
Invested unrestricted equity reserve	-	-	197 892	197 892
	-	-	214 526	213 719

NOTES TO THE BALANCE SHEET (€1,000)
Equity capital according to series of shares	pcs	1 000 €
A1-series *)
The shares in the A and B series of the company Teollisuuden Voima Oyj or other shares replacing these entitle the holder to electricity generated by means of nuclear power at the Olkiluoto 1, Olkiluoto 2 and Olkiluoto 3 nuclear power plant units	3 565 365	6 061
A2-series
The shares in the B series of the company Pohjolan Voima Oy or other shares replacing these entitle the holder to electricity generated by means of nuclear power at the Olkiluoto 1 and Olkiluoto 2 nuclear power plant units of Teollisuuden Voima Oyj	250 000	425
A3-series *)
The shares in the B2 series of the company Pohjolan Voima Oy or other shares replacing these entitle the holder to electricity generated by means of nuclear power at the Olkiluoto 3 nuclear power plant unit of Teollisuuden Voima Oyj	600 486	1 021
B-series
The shares in the C series of the company Teollisuuden Voima Oyj and the shares in the C2 series of the company Pohjolan Voima Oy or other shares replacing these entitle the holder to electricity generated mainly at the Meri-Pori coal power plant	64 653	110
C-series
The shares in the M series of the company Pohjolan Voima Oy or other shares replacing these entitle the holder to electricity generated by Mussalon Voima Oy	20 517	35
D1-series
The shares in the company Vaskiluodon Voima Oy or other shares replacing these entitle the holder to electricity generated at the thermal power plant units in Vaasa and Seinäjoki	562 500	956
D2-series
The shares in the V series of the company Pohjolan Voima Oy or other shares replacing these entitle the holder to electricity generated at the power plants of Vaskiluodon Voima Oy in Vaasa and Seinäjoki	113 091	192
E1-series
The shares in the A series of the company Pohjolan Voima Oy or other shares replacing these entitle the holder to electricity generated in Finland by means of hydropower	543 375	924
E2-series
The shares entitle the holder to the electricity supplied by the partnership company Rapid Power Oy, generated by means of hydropower in Norway and transmitted to Finland	265 440	451
E3-series
The shares in the A series of the company Voimapiha Oy or other shares replacing these entitle the holder to electricity generated mainly by means of hydropower in Sweden	110 000	187
F-series
The shares in the C series of the company Pohjolan Voima Oy or other shares replacing these entitle the holder to electricity generated at the power plants in Tahkoluoto and Kristinestad	197 964	337
G-series
-The shares entitle the holder to profits not included in the other series, and the liability to pay for the costs of these	302 400	514
M-series
The shares in the M series of the company Manga LNG Oy or other shares replacing these entitle the holder to generated liquefied natural gas (LNG)	6 000	10
P1-series
The shares entitle the holder to the emission reduction rights acquired from a third party and obligate the holder to compensate for the fixed costs of the company concerned arising from the acquisition of the rights in relation to the holder's shares in the P1 series, as well as for the variable costs in relation to the received rights	74 000	126
P2-series
The shares entitle the holder to the emission reduction rights acquired from a third party, based on acquisition decisions made in 2011 or at a later date, and obligate the holder to compensate for the fixed costs of the company concerned arising from the acquisition of the rights in relation to the holder's shares in the P2 series, as well as for the variable costs in relation to the received rights	43 800	74
T1-series
The shares in the company Tornion Voima Oy or other shares replacing these entitle the holder to electricity generated by means of thermal power at the power plant in Tornio	120 000	204
T2-series
The shares in the company Raahen Voima Oy or other shares replacing these entitle the holder to electricity generated by means of CHP at the power plant in Raahe	49 531	84
W1-series
The shares in the A and C series of the company Innopower Oy and the shares in Rajakiiri Oy or other shares replacing these entitle the holder to electricity generated by means of wind power	86 971	148
W2-series
The shares in the company EPV Tuulivoima Oy or other shares replacing these entitle the holder to electricity generated by means of wind power	47 456	81
W3-series
The shares in the company Suomen Merituuli Oy or other shares replacing these entitle the holder to electricity generated by means of wind power	4 987	8
W4-series
The shares in the B series of the company EPV Tuulivoima Oy or other shares replacing these entitle the holder to electricity generated by means of wind power	259 325	441
W5-series
The shares in the C series of the company EPV Tuulivoima Oy or other shares replacing these entitle the holder to electricity generated by means of wind power	235 000	400
W6-series *)
The shares in the D series of the company EPV Tuulivoima Oy or other shares replacing these entitle the holder to electricity generated by means of wind power	400 000	680
	7 922 861	13 469
The shareholders in each of the series are responsible for the fixed costs of the series in relation to their holdings and for the variable costs in relation to the amount of energy supplied

NOTES TO THE BALANCE SHEET (€1,000)
	Group		Parent company
	2017	2016	2017	2016
17. ACCUMULATED APPROPRIATIONS
Depreciation difference of
deferred tax liabilities	16 982	13 686	3 922	3 935
18. NON-CURRENT LIABILITIES
Bank loans	235 671	211 386	50 767	29 500
Other non-current liabilities	77 526	69 295	70 455	67 455
	313 197	280 681	121 223	96 955
Liabilities to group companies
Other non-current liabilities	-	-	250	150
Liabilities to associated companies
Other non-current liabilities	72 005	69 105	70 205	67 305
Liabilities which are due later
than after five years
Bank loans	18 127	14 396	0	0
Other non-current liabilities	70 205	67 305	70 205	67 305
	88 332	81 701	70 205	67 305
19. CURRENT LIABILITIES
Bank loans	54 969	26 469	9 000	10 000
Advances received	99	325	0	0
Trade payables	33 396	26 124	12 305	15 632
Accruals and deferred income *)	6 347	6 925	4 670	5 138
Other current liabilities	7 849	11 902	3 429	14 416
	102 660	71 745	29 405	45 186
Liabilities to group companies
Trade payables	-	-	1 454	1 448
Other current liabilities	-	-	2 625	11 406
	-	-	4 079	12 854
Liabilities to associated companies
Trade payables	10 442	13 417	9 679	12 725
Other current liabilities	351	3 011	351	3 011
	10 793	16 428	10 030	15 736
*) The constituents of prepayments and accrued income
Electricity sales	3 206	3 634	3 206	3 634
Electricity purchases	0	264	0	0
Interest expenses	1 444	1 434	851	860
Accrued personnel expenses	848	898	607	634
Others	849	695	6	10
	6 347	6 925	4 670	5 138
20. COMMITMENTS
Account limit agreements
Total amount of granted limit	46 000	37 000	13 000	13 000
Available	5 231	6 613	0	0
Leasing contract payments
Payments during the following financial year	11	29	10	21
Fees to be paid later	2	14	2	12
	14	43	12	33
Shares pledged
For associated companies' liabilities	1 818	1 818	1 818	1 818
Guarantees
For associated companies' liabilities	12 287	9 471	12 287	9 471
For other companies' liabilities	1 610	1 610	1 610	1 610
Other commitments
For the group company	41 932	110 586	41 932	110 586
Other own commitments	27 439	23 761	23 603	20 327
The parent company has a 5-year long-term rental agreement for its facilities. The rental period began on 1 January 2015. According to the agreement, the company assumes rental liability.
For wind power projects, the regular long-term rental liabilities towards landowners apply, including the liability for disassembly of the plants once generation is discontinued, as well as restoration of the site.
21. DERIVATIVE AGREEMENTS
Interest rates derivatives
In accordance with the company’s financing policy, it only concludes derivative agreements with the purpose of hedging. The interest rate risk is hedged through interest rate swap agreements by converting floating rate loans into fixed interest rate loans. The company’s hedging relationships are substantially efficient, excluding the effects of negative reference rates on contracts which will mature before 2020. The terms of the hedged risk and hedging instrument are well matched in other respects. The contracts will terminate between 2018 and 2023.
Contracts that will mature before 2020
Nominal value	57 000	67 000	51 000	61 000
Fair value	-582	-1 782	-343	-1 380
Contracts that will mature in 2020 or later
Nominal value	218 300	226 300	52 000	52 000
Fair value	-4 331	-5 742	-1 849	-2 181
Electricity derivatives
Amount GWh	0,0	43,8	0,0	0,0
Fair value (€1,000)	0	-524	0	0
The target of electricity derivatives is to hedge the cash flow created after the transfer to the feed-in tariff in 2012. The agreement has expired in 31.12.2017.
22. EMISSIONS RIGHTS
Emissions trading period	2017-2020		2016-2020
	tn CO2		tn CO2
Granted emission rights	393 051		500 161
Annual level allocation	103 510		107 110
Emission rights utilisation	2017		2016
	tn CO2		tn CO2
Emissions	269 694		252 845
Gratuitous emission rights 1 January *)	-103 510		-107 110
Purchased emission rights	-130 000		-105 000
Purchased emission right reductions (CER)	0		0
Deficit (+) / surplus (-)	36 184		40 735
Gratuitous granted emission rights available on 31 December	456 247		595 940