REPORT OF THE BOARD OF DIRECTORS
AND FINANCIAL STATEMENTS
Contents
2
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
03 Main events in 2021
05 Operating environment
05 TVO as a company
06 Financial performance
06 Financing and liquidity
07 Share capital
07 Administrative principles
07 Administrative bodies
08 Regulatory environment
09 Risk management, major risks and uncertainties
09 Risk management
09 Risk management process
09 Major risks and uncertainties
10 Risks related to OL3 plant unit
10 Majorplantmodicationsand
their implementation
10 Organisation’scapabilities
10 Financialandliquidityrisks
11 Increaseinthecostofnaldisposalofspent
nuclearfuel
11 Risksrelatedtosocialandpersonnelmatters,
respectofhumanrightsandrisksrelatedto
corruptionandbribery
11 Pending court cases and disputes
12 Olkiluoto 1 and Olkiluoto 2
13 Annual outages
13 Olkiluoto 3 EPR
14 Nuclear fuel
14 Nuclear waste management
14 Final disposal of spent nuclear fuel
15 Research and development
15 Acquisitions of tangible and intangible assets and shares
16 Responsibility
17 Safety and Occupational Safety
17 Safety
18 Occupationalsafety
18 The environment
19 Group personnel and training
19 Personnel
19 Training
20 Subsidiaries and joint ventures
20 Major Events after the End of the Year
21 Prospects for the Future
21 Proposals to the Annual General Meeting
22 Financial statements 2021
90 Proposals to the Annual General Meeting
90 Signatures for the report of the Board of Directors
91 Auditor’s report
97 Financial information in 2022
Main events in 2021
THE ROLE OF LOW-CARBON ENERGY, such as renewable energy
and nuclear power, is crucial in the mitigation of climate change. In
2021, the share of nuclear power was about 33 percent of all elec-
tricity produced in Finland. During its over 50-year history, Teollisuuden
-
able measures were continued during the year in order to prevent the
work has been able to continue under special arrangements and no
totalled 14.4 terawatt hours, which accounted for about one-sixth of
all electricity consumed and about 21 percent of all electricity produced
The electricity production of the Olkiluoto power plant units, Olkiluoto
GWh. The plant units operated safely. OL1’s net production was 7,404
The refuelling and maintenance outages carried out at the OL1 and OL2
plant units on alternating years are designed to ensure that a good level of
production and operability is maintained at all times. In 2021, the annual
outages lasted a total of eight weeks, and they proceeded well with all the
consisted of refuelling and several other tasks, some of which were post-
The tasks included a main transformer replacement and a pressure test
of the reactor primary circuit. In addition to refuelling, the main tasks of
OL2’s maintenance outage included pump and piping replacements in
the shut-down cooling system, the replacement of containment electrical
penetration modules, repair work of the seawater channel, a feed water
and the inspection and vacuum cleaning of the reactor pressure vessel
resources participated in the refuelling outage and 1,000 external people
worked in the maintenance outage. Approximately one hundred special-
ists arrived from abroad for the annual outages.
proceeded to nuclear commissioning in 2021, when fuel loading was
in December. Electricity production is to start in March 2022, once the
plant unit is connected to the national grid. Regular electricity produc-
tion starts in July 2022.
In May 2021, a consensus was reached in the negotiations with the
Areva–Siemens consortium regarding the main principles of the OL3
project completion. The agreements regarding the amendments to the
June 2021.
Report of the Board of Directors of
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REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Finnish Energy published its energy attitude survey in December 2021,
according to which the support for nuclear power in Finland reached
an all-time record. Up to half of the respondents would like to see more
nuclear power, and a quarter think the current level is appropriate.
Energy attitudes have been measured since 1983.
facility proceeded as planned, and the operating licence application was
submitted to the Finnish Government by the end of the year.
At the end of the year, the total number of personnel in the Group was
members were recruited at the Group during 2021.
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REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
THE PROCESS OF PLANNING CRITERIA for nuclear power under the
-
subsequent review process by experts, preparatory work by the Euro-
pean Commission has continued. Furthermore, Mairead McGuinness,
the Commissioner responsible for the Taxonomy, visited Olkiluoto in
November. A draft version of criteria concerning nuclear power was
published in December. Member States can comment on the criteria
during January 2022. On 2 February 2022, the European Commission
proposed the inclusion of nuclear energy in the EU Taxonomy. The
proposal still includes some unclear criteria on the taxonomy eligibility
Major Events after the End of the Year
The work on the Commission’s Fit for 55 package, unveiled in July,
continues. The package contains the measures necessary for achieving
the 55 percent greenhouse gas emissions reduction target for 2030.
The package contains a revision of the EU Emissions Trading System
and measures to kickstart the European hydrogen economy. The rest of
the Fit for 55 package was published provisionally in December 2021.
These initiatives include the gas market package expected to cover
nuclear-based hydrogen production.
Zero 2050 scenario. The aim of the scenario is to demonstrate the
necessary actions to limit global warming to 1.5 degrees Celsius. IEA
predicts that meeting the target would require the doubling of existing
nuclear capacity by 2050. According to the International Atomic Energy
reactors were under construction at the end of 2020.
TVO IS A NON-LISTED public limited-liability company owned by
transmission system construction and acquisition as well as in the gener-
ation, relay, and transfer of electricity primarily to the Company’s share-
holders in accordance with the terms set in the Articles of Association.
-
holders are charged incurred costs on the price of electricity, and thus
-
proportion to their ownership, regardless of whether they have made
any use of their share of the output or not. Because of the Company’s
The cost-price principle in the Notes to
2021, when Oy Mankala Ab purchased all the A and B series shares
-
Finnish industry and energy companies, some of which were owned by
all electricity consumed in Finland.
covers production activities at the Olkiluoto nuclear power plant, main-
taining and developing production capacity, additional construction
of production capacity, and functions required to control and resource
these activities. The system meets the requirements of international
quality control, environmental, occupational health and occupational
Finland Oy Ab. The general part of the activity-based management
system also acts as the licensee’s quality control system approved by
management system is regularly monitored with internal audits and
management reviews.
Responsibility
The goal is to maintain a competitive average electricity production
cost and to ensure that the operability of the plant units meets the
Company’s goals. Safety culture is maintained at a high level and
safety is systematically upheld and developed at all stages of the
nuclear power lifecycle.
Operating environment
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REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
THE GROUP’S CONSOLIDATED TURNOVER for 2021 was
The amount of electricity delivered to the shareholders was 14,414
compared with the previous year were due to longer annual outages.
TVO’S FINANCIAL SITUATION has developed as planned.
excluding the loan from the Finnish State Nuclear Waste Management
-
dinated shareholder loans. Repayments during the year amounted to
which matures in 2024.
bank loans totalling EUR 775 million were extended from 2022 and 2023
to 2024. Of these, a EUR 75 million loan has been repaid prematurely. At
the end of the year, the maturities of these loans were further extended
to 2025 for the amount of EUR 300 million. In addition, a new bilateral
bank loan has been made for EUR 100 million, which matures in 2025.
coupon of 1.375 percent. The bond was issued under the Company’s
holders of its outstanding EUR 500 million Notes due in January 2023 to
were announced on 22 June 2021. The aggregate principal amount
validly offered for purchase by the noteholders was EUR 177,223,000.
negative to positive. According to S&P, the completion of fuel loading
from Fitch Ratings.
Waste Management Fund within the framework of legal regulations.
million, and it has been relent to the Company’s A series shareholders.
On 31 March 2021, the loan from the Finnish State Nuclear Waste
balance sheet.
Financial performance Financing and liquidity
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REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
TVO’S SHARE CAPITAL
The A series shares entitle to electricity generated at OL1 and OL2, and
the B series shares to the electricity generated at OL3.
BECAUSE TVO is a non-listed public company applying the cost-price
principle, it observes the Corporate Governance Code for listed compa-
Governance Code nor therefore its Comply or Explain principle. According
issuer of a security subject to public trading must provide a Corporate
a separate Corporate Governance Statement which is published on the
www.tvo./nancialpublications
as this Report of the Board of Directors.
TVO’S ADMINISTRATIVE BODIES and their operations in 2021 have
been described in a separate Corporate Governance Statement to be
found on the Company’s website www.tvo./nancialpublications.
Share capital Administrative bodiesAdministrative principles
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REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Regulatory environment
THE BASIC PRINCIPLE of nuclear energy legislation is that the use of
nuclear energy must be in line with the overall good of society. The key
regulations governing the use of nuclear energy, the monitoring of its
use, and nuclear safety are included in the Nuclear Energy Act and the
Nuclear Energy Decree, as well as in subordinate regulations issued by
regulations by STUK. In addition to these, regulations applied to the use
of nuclear energy are included e.g. in the Radiation Act.
force in a staggered manner as of 1 May 2021. The amendment
reformed the regulation concerning provisions for nuclear waste
management expenses, so that the investment activities of the assets
managed by the Finnish State Nuclear Waste Management Fund allow
regulation concerning research programmes on the safe use of nuclear
power plants and nuclear waste management funded by the Finnish
State Nuclear Waste Management Fund was reformed.
a comprehensive reform of the Nuclear Energy Act. The objective is
that the production of nuclear energy is in line with the overall good of
supposed to enter the consultation phase during 2024, the government
proposal to the Parliament would then follow at the end of the next elec-
toral term, and the new Nuclear Energy act would enter into force in 2028.
at the OL1, OL2, and OL3 plant units. In 2021, STUK published two
guides into force has been delayed from STUK’s previously estimated
schedule, and all of the updates have not yet been brought into force.
be brought into force during 2022.
In 2021, STUK also initiated preparations for the reform of the nuclear
safety regulations and guidelines, in which the foundation and direc-
The Nuclear Liability Act concerns the liability the operator of a nuclear
power plant has in the event of a nuclear accident. Amendments to the
was increased to EUR 1,200 million for nuclear plants used in energy
production. For nuclear incidents in Finland, the plant operator’s liability
remains unlimited, as it already has been since 2012, when the Nuclear
Liability Act was temporarily amended as concerns this liability. For
nuclear plants used for other purposes than energy production and for
the transport of nuclear substances, the liability is EUR 80–250 million.
The use of nuclear energy is subject to licence. Applications for a deci-
sion-in-principle, construction licence and operating licence, as well
as a licence for decommissioning a nuclear power plant are made to
the Finnish Government. STUK is responsible for monitoring the safety
of nuclear energy use, and it also supervises safety and emergency
arrangements and nuclear material safeguards.
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REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Risk management
THE OBJECTIVE of risk management is to support the realisation of
-
ational preconditions are maintained. Risk management is carried out
comprehensively according to the strategic objectives set by the Board
of Directors, Group-level policies, and good governance.
Risk management is supervised by the Company’s Board of Directors,
-
The President and CEO, with the help of the Company’s Management
objectives and strategy. A risk management group operates under the
Management Group, which is in charge of ensuring adequate risk treat-
risk management measures.
and treatment of risks connected to its operations, as well as the
part of project management.
Risk management, major risks and uncertainties
Risk management process
TVO HAS A GROUP-WIDE risk management process, used to ensure
and each risk is treated according to its severity. The objective of the
risk management process is to either prevent the risk from materialising
or to reduce its likelihood or consequences. The acknowledged risks are
gathered to company-level risk registers, where all the risks and their
and likelihood. All risks are reported to the Management Group, Audit
and Finance Committee, and the Board of Directors in accordance with
the annual management programme.
The comprehensive development of risk management is evaluated with
the help of the annually prepared risk management evaluation, which
is used to set the goals for the development of risk management. Risk
management evaluation is implemented in accordance with a model
based on risk maturity levels.
continued to increase the level and effectiveness of risk management.
Risk management is a part of the Group’s strategy process and, as
such, it is being developed to help meet the Group’s objectives with an
acceptable risk level. During 2021, the understanding of the meaning of
the risk management process was strengthened in project management
procedures, and risk awareness in decision-making was increased.
Major risks and uncertainties
THE RISKS RELATED to safety and electricity production are reduced
by keeping the plant units in good condition. Safe and reliable produc-
high-quality planning and implementation of the annual outages.
The fuel used for electricity production, uranium, is procured from
global markets. Risks connected with nuclear fuel have been reduced
by purchasing the fuel from a variety of suppliers and by making long-
term contracts.
In the OL3 project, risk management is primarily a question of over-
seeing and guiding the work of the Plant Supplier according to the
terms of the turnkey contract and the settlement agreement.
Indemnity and property risks are covered with insurances. The aim of
insurance management is to keep the scope, cover, and cost of insur-
associations for nuclear insurance. Statutory liability insurance is in
force for nuclear liability.
There are no major risks or uncertainties in view concerning electricity
production at the OL1 and OL2 plant units.
Financial risk management and fuel price risks are dealt with in the
note 27
Financial Risk Management.
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REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Risks related to OL3 plant unit
Schedule and planned completion
capacity of the OL3 project. Under the plant contract, electricity produc-
tion was scheduled to start at the end of April 2009. The completion
of the project, however, has been delayed. Electricity production will
start at a 25 percent power output, which is approximately 400 MW, in
March 2022. OL3’s regular electricity production will commence in July
2022.
The risk related to the planned completion refers to a situation in
which commercial use cannot be started as planned, which leads to
additional costs.
During 2021, several risk management measures related to the OL3
closely monitors the compliance of the conditions set in the settlement
agreement in March 2018 and the amendments to the agreement in
June 2021, and ascertains that the commissioning of OL3 is executed
-
cial and technical resources are secured.
Profit-yielding capacity of OL3
If the OL3 project fails to reach the projected output level, load factor,
or operating cost structure, or if the output level is restricted by the
main grid, there is a risk that the production cost will rise in comparison
to the objective. This risk has been analysed with the help of various
utilised during the nuclear commissioning of OL3.
Major plant modications and their implementation
INCREASE OF PRODUCTION COSTS
establish and assign responsibility for requirements related to nuclear
safety and to ensure that the project parties meet these requirements in
advance to avoid unexpected costs during the project.
In risk assessment analysis, increased project costs are viewed to arise
major unpredicted technical issues, challenges in the execution of the
projects and measures that are most vital in view of the schedule and
to ensure that project suppliers have the readiness and interests to
complete the projects they are involved in.
Organisation’s capabilities
AN ORGANISATION’S COMPETENCE and ability to function as a
licensee may be compromised by dysfunctional management, failed
reaction to changes in the operational environment, or a negative atmos-
phere of the work community. In addition to the rise of immediate costs,
this may also lead to an increased likelihood of other risks being realised.
prepared for the operation phase of OL3 and for future retirements by
recruiting 70 new staff members in 2021 and by maintaining a compre-
from August to September 2021, based on which the necessary means
and procedures for promoting and supporting the supervisors’ coping
at work will be planned.
of which are used for personnel planning. OL3 trainings have continued
implements a personnel survey approximately every 18 months, and
the results of the latest survey were received in November 2021.
Financial and liquidity risks
THE FINANCING RISKS
use of interest rate and currency derivatives. According to the Compa-
hedged to the euro until the maturity date by using derivatives.
outlooks as well as market changes to interest rates and corporate loan
current level. This risk has been analysed through various scenarios
loan portfolio. If the risk is realised, the consequences include increased
the international capital market, the Company also acquires long-term
10
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
for the Company, not for separate projects.
new bond during the year.
Increase in the cost of nal disposal of
spent nuclear fuel
IF POSIVA’S FINAL
disposal project EKA is not implemented according
to plan, project costs rise, or the completion of the project is delayed, the
amount of the existing nuclear waste management liability of spent fuel.
regard to the completion of the EKA project in the planned schedule
and budget were assessed.
Risks related to social and personnel matters,
respect of human rights and risks related to
corruption and bribery
RISKS RELATED TO SOCIAL and personnel matters and respect
of human rights, as well as risks related to corruption and bribery
risks affecting the Company’s operations have been detected in the
aforementioned matters during 2021. The possible risks detected in
these areas are addressed according to the Company’s ordinary risk
management process.
Continuous risk management in these matters is executed according
by the Board of Directors, supervises the implementation of the Code
of Conduct in the Company’s operations. In addition, opportuni-
ties to report completely anonymously on incidents perceived to be
against the Code of Conduct were increased by introducing a new
Conduct was renewed. The possible risks are evaluated in projects
and investments as necessary. Furthermore, these matters are evalu-
ated when reviewing suppliers in accordance with a separate supplier
Responsibility.
Pending court cases
and disputes
TVO AND WÄRTSILÄ FINLAND OY
on the delivery of Emergency Diesel Generators and their auxiliary
exchange release announcing a major provision it has made on two
nuclear power plant projects to cover the cost exceedings and project
delays, and that the allocation of responsibility for the additional costs
-
accordance with the EDG project’s delivery agreement. The allocation
of responsibility between the parties concerning the abovementioned
additional costs and delays are to be resolved in the same proceedings.
-
claims presented in the arbitration proceedings.
11
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Taulukko 1
Pvm
OL1
1.1.2020
896,8
2.1.2020
896,6
3.1.2020
896,6
4.1.2020
896,5
5.1.2020
896,8
6.1.2020
896,8
7.1.2020
896,8
8.1.2020
897,0
9.1.2020
895,1
10.1.2020
896,1
11.1.2020
896,1
12.1.2020
896,1
13.1.2020
893,6
14.1.2020
896,9
15.1.2020
897,0
16.1.2020
897,3
17.1.2020
897,2
18.1.2020
897,2
19.1.2020
897,2
20.1.2020
897,2
21.1.2020
897,0
22.1.2020
897,2
23.1.2020
897,3
24.1.2020
897,3
25.1.2020
897,3
26.1.2020
897,1
27.1.2020
897,0
28.1.2020
896,9
29.1.2020
897,2
30.1.2020
896,9
31.1.2020
897,2
1.2.2020
897,0
2.2.2020
897,0
3.2.2020
897,1
4.2.2020
897,1
5.2.2020
896,9
6.2.2020
897,1
7.2.2020
897,1
8.2.2020
894,7
9.2.2020
895,9
10.2.2020
896,1
11.2.2020
895,9
12.2.2020
894,1
13.2.2020
897,0
14.2.2020
896,7
15.2.2020
896,9
16.2.2020
896,8
17.2.2020
895,8
18.2.2020
895,1
19.2.2020
860,4
20.2.2020
893,9
21.2.2020
897,0
22.2.2020
897,1
23.2.2020
897,0
24.2.2020
897,3
25.2.2020
897,3
26.2.2020
897,1
27.2.2020
897,1
28.2.2020
897,0
29.2.2020
896,5
1.3.2020
896,1
2.3.2020
896,3
3.3.2020
896,0
4.3.2020
896,3
5.3.2020
896,4
6.3.2020
896,4
7.3.2020
896,4
8.3.2020
896,6
9.3.2020
896,7
10.3.2020
896,9
11.3.2020
897,0
12.3.2020
897,2
13.3.2020
897,0
14.3.2020
896,9
15.3.2020
896,7
16.3.2020
896,4
17.3.2020
896,5
18.3.2020
896,2
19.3.2020
896,3
20.3.2020
896,5
21.3.2020
896,3
22.3.2020
895,9
23.3.2020
896,1
24.3.2020
895,9
25.3.2020
896,0
26.3.2020
895,3
27.3.2020
891,4
28.3.2020
888,3
29.3.2020
884,5
30.3.2020
880,3
31.3.2020
876,2
1.4.2020
871,7
2.4.2020
867,5
3.4.2020
863,0
4.4.2020
859,2
5.4.2020
856,1
6.4.2020
853,7
7.4.2020
849,6
8.4.2020
845,8
9.4.2020
842,4
10.4.2020
838,5
11.4.2020
834,9
12.4.2020
831,3
13.4.2020
827,8
14.4.2020
823,8
15.4.2020
820,2
16.4.2020
816,1
17.4.2020
812,4
18.4.2020
808,5
19.4.2020
804,7
20.4.2020
801,5
21.4.2020
796,9
22.4.2020
793,6
23.4.2020
789,0
24.4.2020
549,0
25.4.2020
0,0
26.4.2020
0,0
27.4.2020
0,0
28.4.2020
0,0
29.4.2020
0,0
30.4.2020
0,0
1.5.2020
0,0
2.5.2020
0,0
3.5.2020
0,0
4.5.2020
0,0
5.5.2020
0,0
6.5.2020
0,0
7.5.2020
0,0
8.5.2020
0,0
9.5.2020
0,0
10.5.2020
215,7
11.5.2020
718,2
12.5.2020
813,8
13.5.2020
892,8
14.5.2020
894,4
15.5.2020
894,4
16.5.2020
894,4
17.5.2020
894,9
18.5.2020
895,4
19.5.2020
894,9
20.5.2020
894,5
21.5.2020
894,3
22.5.2020
894,2
23.5.2020
894,0
24.5.2020
892,9
25.5.2020
893,5
26.5.2020
895,5
27.5.2020
895,0
28.5.2020
485,9
29.5.2020
858,4
30.5.2020
883,0
31.5.2020
882,4
1.6.2020
881,6
2.6.2020
748,4
3.6.2020
889,4
4.6.2020
888,7
5.6.2020
887,8
6.6.2020
887,4
7.6.2020
887,9
8.6.2020
886,1
Pvm
0
200
400
600
800
1000
January
February
March
April
June
July
August
September
October
November
December
May
OL1 Production
Average output
MW
1. Coast-down
2. Annual refuelling outage
3. Inspection of main condenser
4. Repair of valve in turbine side
1
2
4
3
1
Taulukko 1
Pvm
Ol2
1.1.2020
896,1
2.1.2020
895,9
3.1.2020
895,8
4.1.2020
895,6
5.1.2020
895,9
6.1.2020
896,1
7.1.2020
896,2
8.1.2020
896,0
9.1.2020
896,2
10.1.2020
896,2
11.1.2020
895,8
12.1.2020
896,1
13.1.2020
896,0
14.1.2020
895,9
15.1.2020
895,9
16.1.2020
896,2
17.1.2020
896,0
18.1.2020
895,8
19.1.2020
896,1
20.1.2020
895,9
21.1.2020
896,6
22.1.2020
872,1
23.1.2020
896,0
24.1.2020
896,1
25.1.2020
896,0
26.1.2020
895,9
27.1.2020
895,8
28.1.2020
895,8
29.1.2020
895,9
30.1.2020
895,9
31.1.2020
895,8
1.2.2020
895,9
2.2.2020
895,8
3.2.2020
895,8
4.2.2020
896,7
5.2.2020
896,5
6.2.2020
895,9
7.2.2020
896,2
8.2.2020
896,0
9.2.2020
896,0
10.2.2020
895,9
11.2.2020
896,2
12.2.2020
895,9
13.2.2020
895,8
14.2.2020
895,7
15.2.2020
895,7
16.2.2020
895,7
17.2.2020
895,6
18.2.2020
895,9
19.2.2020
895,6
20.2.2020
895,6
21.2.2020
895,5
22.2.2020
895,6
23.2.2020
895,5
24.2.2020
895,7
25.2.2020
895,6
26.2.2020
895,8
27.2.2020
895,7
28.2.2020
895,5
29.2.2020
895,6
1.3.2020
895,6
2.3.2020
895,2
3.3.2020
895,6
4.3.2020
895,3
5.3.2020
895,3
6.3.2020
895,5
7.3.2020
895,7
8.3.2020
895,6
9.3.2020
895,8
10.3.2020
895,8
11.3.2020
895,7
12.3.2020
895,8
13.3.2020
895,6
14.3.2020
895,6
15.3.2020
895,6
16.3.2020
895,5
17.3.2020
895,8
18.3.2020
862,5
19.3.2020
894,8
20.3.2020
895,7
21.3.2020
895,6
22.3.2020
895,0
23.3.2020
895,2
24.3.2020
895,3
25.3.2020
895,3
26.3.2020
895,1
27.3.2020
895,2
28.3.2020
895,3
29.3.2020
895,3
30.3.2020
895,3
31.3.2020
895,1
1.4.2020
894,7
2.4.2020
894,8
3.4.2020
894,5
4.4.2020
894,5
5.4.2020
894,7
6.4.2020
894,6
7.4.2020
894,6
8.4.2020
894,6
9.4.2020
894,6
10.4.2020
894,6
11.4.2020
894,4
12.4.2020
894,3
13.4.2020
894,5
14.4.2020
894,6
15.4.2020
894,1
16.4.2020
893,5
17.4.2020
893,5
18.4.2020
893,3
19.4.2020
893,1
20.4.2020
892,4
21.4.2020
892,3
22.4.2020
893,0
23.4.2020
893,3
24.4.2020
893,1
25.4.2020
893,2
26.4.2020
893,3
27.4.2020
893,3
28.4.2020
893,0
29.4.2020
892,8
30.4.2020
892,7
1.5.2020
892,3
2.5.2020
892,2
3.5.2020
892,2
4.5.2020
892,2
5.5.2020
892,5
6.5.2020
892,7
7.5.2020
892,3
8.5.2020
891,9
9.5.2020
891,3
10.5.2020
890,7
11.5.2020
889,5
12.5.2020
890,3
13.5.2020
889,3
14.5.2020
886,0
15.5.2020
598,3
16.5.2020
0,0
17.5.2020
0,0
18.5.2020
0,0
19.5.2020
0,0
20.5.2020
0,0
21.5.2020
0,0
22.5.2020
0,0
23.5.2020
0,0
24.5.2020
0,0
25.5.2020
0,0
26.5.2020
0,0
27.5.2020
0,0
28.5.2020
0,0
29.5.2020
0,0
30.5.2020
0,0
31.5.2020
0,0
1.6.2020
0,0
2.6.2020
0,0
3.6.2020
0,0
4.6.2020
0,0
5.6.2020
0,0
6.6.2020
0,0
7.6.2020
0,0
8.6.2020
0,0
9.6.2020
0,0
10.6.2020
0,0
11.6.2020
0,0
12.6.2020
0,0
13.6.2020
0,0
14.6.2020
0,0
15.6.2020
0,0
16.6.2020
0,0
17.6.2020
389,7
18.6.2020
729,4
19.6.2020
820,0
20.6.2020
870,1
21.6.2020
870,0
22.6.2020
864,4
23.6.2020
870,9
24.6.2020
868,5
25.6.2020
866,3
26.6.2020
864,5
27.6.2020
774,7
28.6.2020
0,0
29.6.2020
268,5
30.6.2020
794,9
1.7.2020
865,2
2.7.2020
874,6
3.7.2020
873,3
Pvm
0
200
400
600
800
1000
1. Annual maintenance outage
2. Repair of valve in reactor side
OL2 Production
Average output
MW
1
2
January February March April June July August September October November DecemberMay
1
THE ELECTRICITY PRODUCTION of
OL1 and OL2 in 2021 was 14,438
The plant units operated safely. OL1’s
Olkiluoto 1 and
Oliluoto 2
1. Annual maintenance outage 2. Repair of valve in reactor side
1. Coast-down 2. Annual refuelling outage 3. Inspection of main condenser 4. Repair of valve in turbine side
12
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Annual outages
THE REFUELLING and maintenance outages carried out at the OL1 and
OL2 plant units on alternating years are designed to ensure that a good
level of production and operability is maintained at all times.
The 2021 annual outages of the Olkiluoto nuclear power plant were
started with a refuelling outage at the OL1 plant unit on 25 April. The
refuelling outage was completed on 11 May. In addition to refuelling,
OL1’s annual outage consisted of several other tasks, some of which
pandemic. The tasks included a main transformer replacement and a
pressure test of the reactor primary circuit.
May and was completed on 18 June. In addition to refuelling, the main
tasks of OL2’s maintenance outage included pump and piping replace-
ments in the shut-down cooling system, the replacement of contain-
ment electrical penetration modules, repair work of the seawater
-
ment leak-tightness test, and the inspection and vacuum cleaning of
the reactor pressure vessel bottom.
The annual outages were carried out successfully despite special
arrangements and measures was to prevent the spread of potential
persons involved in the annual outages, as well as guarantee a safe and
high-quality annual outage.
Six occupational accidents resulting in absence occurred during the
annual outages.
resources participated in the refuelling outage and 1,000 external people
worked in the maintenance outage. Approximately one hundred special-
ists arrived from abroad for the annual outages.
Olkiluoto 3 EPR
OL3, currently under the test production phase, was procured as a
by Areva GmbH, Areva NP SAS, and Siemens AG. As stipulated in the
plant contract, the consortium companies have joint and several liability
for the contractual obligations.
the plant supplier consortium companies Areva NP, Areva GmbH, and
Siemens AG as well as with the Areva Group parent company Areva SA,
a company wholly-owned by the French State. The settlement agree-
ment concerned the completion of the OL3 project and related disputes,
and it entered into force in late March 2018. The supplier consortium
companies committed to ensuring that the funds dedicated to the
completion of the OL3 project will be adequate and will cover all appli-
cable guarantee periods, including setting up a trust mechanism funded
the OL3 EPR project. During the accounting period, replenishing the
2020 on the terms of the OL3 project completion. In addition, the Areva
-
sary funding for the companies to complete the OL3 project. The parties
reached a consensus in their negotiations regarding the main principles of
the OL3 project completion in May 2021, and the agreements regarding
the amendments to the OL3 project 2018 GSA were signed in June
•
The Areva companies’ trust mechanism, established in the GSA of 2018,
was replenished in July with EUR 432.3 million.
• Both parties are to cover their own costs as of July 2021 until the end of
February 2022.
• In the case that the plant supplier consortium companies were not to complete
the OL3 project by the end of February 2022, they would pay an additional
• In connection with the agreement entering into force, the Plant Supplier paid
the GSA 2018.
investment in the OL3 project will be approximately EUR 5.7 billion.
STUK granted a fuel loading permit for OL3 in March 2021, and the fuel
loading was completed in April 2021. The completion of fuel loading
meant that the OL3 plant unit is a nuclear power plant in use.
A turbine overhaul was carried out at OL3 from July to November 2021
because of a jammed turbine. Inspections revealed that the inner casing
and rotor in one low pressure turbine were damaged. The damages
had been caused by the rotor touching the turbine’s inner casing.
During the overhaul, the low pressure turbine’s rotor was replaced, and
low pressure turbines.
OL3 was reached on 21 December 2021. OL3’s electricity production
13
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
starts in March 2022, once the plant unit has been connected to the
national grid.
In connection with the start of fuel loading, publishing the power
at www.tvo./ol3forecast. A market message is published in NordPool
At the end of the reporting period, the workforce at the site was
the OL3 site has continued under special arrangements. The occupa-
tional safety at the site remained at a good level.
All realised costs of the OL3 project that can be recognised in the cost
of the asset have been entered as property, plant, and equipment in the
Group balance sheet.
Nuclear fuel
IN 2021
The nuclear fuel and uranium stock carrying value on 31 December
Nuclear waste management
UNDER the Finnish Nuclear Energy Act, the Company is responsible for
the measures related to nuclear waste management and the related costs.
million, calculated according to the international IFRS accounting principles.
to the IFRIC 5 interpretation. The OL3 plant unit was made critical on 21
December 2021, and a provision related to nuclear waste liability of EUR
OL2 plant units’ nuclear waste management IFRS calculation. The OL3
plant unit’s share in the Fund is in turn lower than the provision according
to IFRS, and therefore an adjustment is not recorded.
makes contributions to the Finnish State Nuclear Waste Management
Fund in accordance with the Nuclear Energy Act. In December 2021,
In March 2021, the Finnish State Nuclear Waste Management Fund
3
of low and medium level radioactive waste
has accumulated from the OL1 and OL2 plant units during their operation.
processing of low-level waste. During 2021, the amount of waste gener-
3
The total amount of spent nuclear fuel by the end of the year was
The spent fuel is stored in the fuel pools of the plant units and in an
Final disposal of spent nuclear fuel
POSIVA OY
ongoing EKA project entails the implementation of the encapsulation
disposal repository, the installation of the systems needed for the start
supply chains necessary for production operation.
submittal of the operating licence application to the Finnish Govern-
ment in December.
tory, ONKALO, progressed according to schedule during 2021 despite
encapsulation plant is mostly done, and the design and manufacturing
carried out at the end of 2021. In December 2021, the roof wetting
ceremony for the encapsulation plant was celebrated.
through the central tunnels, was started in ONKALO at a depth of
approximately 430 metres. The underground installations of civil and
building technology progressed well and on schedule.
Posiva’s owners submitted the annual report on nuclear waste
management of 2020 to the MEAE at the end of March. The updated
costs of the nuclear waste management scheme for 2021–2023 were
submitted to the MEAE at the end of June 2021. The updated costs
are based on the nuclear waste management scheme submitted to
14
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Acquisitions of tangible and
intangible assets and shares
INVESTMENTS IN 2021
value of the provision related to the OL3 plant unit’s decommissioning
in the balance sheet. Investments of the parent company were EUR
to the OL3 project. The OL3 investment is decreased by the additional
compensation in accordance with the GSA, which has been recorded as
compensation as agreed in 2018 has therefore been recorded in full by
the end of 2021.
signed a contract about delivering one of Europe’s largest battery
energy storage systems to Olkiluoto. The 90-megawatt system will
support the entire energy network in a potential production disturbance
on the grid together with Fingrid’s system protection. The battery
energy storage system will be commissioned in 2022.
Carbon dioxide emission allowances have been relinquished to the
-
for carbon dioxide emission allowances for the accounting period was
covered by acquired emission allowances.
the MEAE in June 2019, which contains an estimate of nuclear waste
Posiva’s owners submitted nuclear waste management plans for
2022–2024, as well as the nuclear waste management programme
YJH-2021, which describes preliminary plans for 2025–2027.
Research and development
THE MAIN OBJECTIVE
activities is to ensure the viability of the current business functions and
Group’s position as a pioneer within the nuclear industry.
R&D activities related to nuclear waste management.
programmes for reactor safety and nuclear waste management. In 2021,
-
of different technical options in Finnish circumstances and as part of
the Finnish energy system. The project is carried out as part of the
licensing and approval processes of systems and equipment at nuclear
power plants in Finland. In 2021, the production use of common
practices and a shared digital platform was reached in KELPO. STUK
procedure for electric automation equipment has been sent to STUK for
approval. In June 2021, the Nordic KELPO project was initiated together
with Swedish nuclear power companies, the aims of which are similar
to the national KELPO project.
15
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Responsibility
RESPONSIBILITY IS ONE OF TVO’S VALUES. The most important
the production of climate-friendly electricity, a safety culture of a high
standard, creating added economic value, a good work community and
networks, as well as being a pioneer within the nuclear industry and
Safety
The Group-level policies, approved by the Management Group, outline key
•
•
•
•
the safety of people and facilities, rescue and emergency activities,
The principles of responsible business operations are described in
-
ny’s Board of Directors and applies to the entire personnel as well as
all partners and subcontractors. The Code of Conduct was updated
during spring 2021 and introduced on 1 May 2021. The updated Code
of Conduct includes separate parts for the Group’s personnel as well
considers any non-compliance with its Code of Conduct unacceptable.
www.tvo./
codeofconduct.
Corporate Social Responsibility Report is published on the Company’s
webpage www.tvo./nancialpublications
Responsibility Report has been subjected to a limited audit by an
external party. The information in the Environmental Report included
external party.
Reputation index:
-
ed and the results are reported every two years. The next survey will be conducted in 2023.
Personnel survey: The personnel survey was conducted at the end of 2021. The survey is
conducted every 18 months. The evaluation scale from highest to lowest result is AAA-C,
where A is satisfactory.
Occupational accident frequency: per million working hours. The indicator is Group-level,
Collective radiation dose:-
Environmental incidents:
Unplanned energy unavailability factor: % of total production.
TVO’s Responsibility Objectives and Results
The responsibility objectives are based on the principle of continuous
improvement. The objectives enable the Company to monitor the
sustainability objectives are reported in the Sustainability Roadmap
Objective 2021
Actual 2021
Reputation index
> 75 82
69.8 / A+ 68.7 / A
Reports suspecting violations of
the Company’s Code of Conduct
- 6
Sick leaves, %
< 3.0 2.4
Occupational accident frequency
< 2.0 6.3
Collective radiation dose, manmSv
844.6 984
Number of environmental incidents, pcs
0 0
Unplanned energy unavailability factor, %
< 0.7 0.3
Number of unplanned automatic scrams, pcs
0 0
16
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
TVO’s position in relation to the EU Taxonomy
The decision on including nuclear power in the EU Taxonomy has been
under preparation in the European Commission during the year. The EU
-
able investments in the EU. The objective is to make it easier to identify
sustainable investment targets, thereby directing investments towards
them. As a low-emission electricity production method, nuclear power
plays an important role in achieving both national and international
climate goals. Therefore, the decision on including nuclear power in the
were directed at production and construction related to nuclear power
during the accounting period. Therefore, according to the technical
screening criteria which entered into force on 21 April 2021, the
0, capital expenditure is EUR 0, and operating expenses are EUR 0 for
the time being, since the decision-making related to nuclear power is
still ongoing.
On 2 February 2022, the European Commission proposed the inclusion
Major Events after
the End of the Year
Implementation of nuclear professionalism was strengthened
The development of management principles and working policies in
professionalism, in other words expectations for working in a nuclear
-
ty-based management system.
During 2021, nuclear professionalism was further reinforced by initi-
ating the Nuclear Professional Leader training programme for super-
visors, which includes a section dedicated to safety management. In
addition, a nuclear professionalism group was set up, which is tasked
with assessing the development of nuclear professionalism and the
safety culture survey was carried out in 2021 as part of the personnel
with the previous survey.
Results of Ethical Business
Conduct requires employees to refrain from transactions and retreat
Company and the individual. The Company maintains a register on the
-
tions regarding hospitality practices, related party transactions, and the
processing of insider information. Detailed instructions are available
-
ny’s operations and expects the same from all companies acting in its
working conditions for all employees. In accordance with its Code of
-
ment on the grounds of age, gender, ethnic origin, religion, beliefs,
and equal opportunity principle.
All personnel, partner, and subcontractor activities in Olkiluoto are
suppliers. All products and services acquired must meet the require-
as the principles of responsible business described in the Code of
and periodical reviewing of suppliers. Through supplier reviews, the
Company ensures that suppliers follow good practices on environ-
mental, personnel, and quality management related issues. During
2021, 143 suppliers were reviewed by using various methods.
Number of
notications
Number of notications
resulted in actions
1 1
5 0
possible violations against the Code of Conduct or abuses of insider
information in such a manner that the rights and the privacy of both the
person raising the concern and the alleged violator are protected under
all circumstances.
necessary actions.
Safety and Occupational Safety
Safety
The safe use of the Olkiluoto nuclear power plant relies on competent
and responsible personnel, high-quality plant technology, the principle
of continuous improvement, and independent internal and external
17
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
requirements of the ISO 9001 standard. In order to ensure safe opera-
-
points of production, nuclear safety, safety and service life management
as well as management, organisation, and personnel. The overall level of
safety is good.
The state of the safety culture is regularly assessed according to the
safety culture is estimated to be at a level at which the strategic impor-
tance of safety has been recognised and preventative practices are
develop the Company’s safety culture.
The Company regularly assesses and develops the operations of its
plant units with the help of internationally used safety indicators. Of the
safety indicators, collective radiation dose, unplanned energy unavaila-
bility factor, and unplanned automatic scrams realisation are described
Responsibility
The Olkiluoto nuclear power plant units, OL1 and OL2, operated safely
-
the News section of the Company’s website.
Occupational safety
Occupational health and safety activities are guided by an ISO 45001
also includes construction operations at the OL3 site in the areas where
The mission of the OHS organisation is to support, monitor, and
develop occupational safety activities. The Group has responsible
contractors working in Olkiluoto, who follow the Group’s expectations
and adhere to common principles. The most important safety objectives
for 2021 were clarifying the OHS responsibilities of the line organi-
sation, supporting supervisors in their work, strengthening contractor
managing risks.
-
absence occurred during the annual outages. The goal for accident
frequency was not achieved, since the accident frequency in Olkiluoto
working in Olkiluoto are included in the accident frequency calculation,
excluding the OL3 site, which is reported by the plant supplier consor-
tium Areva–Siemens.
in the Corporate Social Responsibility Report.
The environment
TVO IS COMMITTED to observing the principles of sustainable deve-
lopment, and environmental responsibility is a part of the Company’s
management systems meet the requirements of the international ISO
-
tions and works to minimise their negative impacts at all stages of the
electricity production chain. Risks related to the environment have also
detected in risk analysis. Through risk management operations, the
Company aims to foresee possible divergent situations and to mitigate
-
mental impacts of its operations.
The Company’s operations met the requirements set in legislation,
environmental permits, and the environmental management system
nuclear power plant are the production of climate-friendly electricity
and the local warming of the sea water near the plant. During the year
under review, the electricity production of the Olkiluoto nuclear power
plant was 14.4 TWh, and the temperature of cooling water remained
within the limits required by the environmental permit.
As in previous years, the environmental load caused by the Olkiluoto
nuclear power plant was minimal in 2021. Radioactive emissions into
the air and water were clearly below annual regulatory limits.
Operations were developed in accordance with the regulations of
environmental permits and the environmental management system. In
accordance with the principle of continuous improvement, the environ-
operations. The programme is regularly monitored by a team of envi-
target for the agreement period 2017–2025 is 150 GWh.
In 2021, an environmental impact assessment was carried out for building
Olkiluoto. In addition, the Olkiluoto water management security project for
securing the supply of raw water and building a transfer sewer for waste-
water progressed to the construction stage during the end of the year.
-
-
18
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
ciency programme are reported in further detail in the Corporate Social
Responsibility Report and Environmental Report. The information has
Group personnel and training
Personnel
that promotes equality and does not condone any form of discrimination.
At the year-end, the total number of personnel in the Group was 984
Veli-Pekka Nurmi was appointed in 2021
Mikko Kosonen, was appointed as
a Corporate Advisor as of 1 January 2022, and he will retire during the
summer 2022.
The collective agreements for different groups of personnel in the
energy industry are in force in accordance with the so-called framework
agreement of labour confederations until the beginning of 2022. 100
-
tions during the year, and the spread of the virus was prevented through
several measures on the Olkiluoto island. Broad measures included e.g.,
reducing travel, transitioning to remote work where possible, restricting
as well as transferring training into an online environment. Access
restrictions were implemented in the area to divide encounters into
well as cleaning operations at all sites underwent major changes, and
transmission chains were avoided in Olkiluoto.
A personnel survey is carried out in the Group approximately every
Spirit Oy were received in November 2021. The response rate was
85 percent, and the People Power Index, which represents the overall
Personnel performance and workload are monitored in navigation
discussions held three times a year. Personnel admission and exit inter-
views are held at all levels of the Group. Supervisors are instructed in
the general and professional induction training of new employees before
new recruits begin their work. Summaries are drawn of both admission
interviews of new employees and exit interviews of personnel leaving
the Group, and the results are utilised in developing operations.
The Group’s management and operational culture is developed with the
help of the Better Workplace programme. The goals of the programme
-
ditions for operations by developing issues related to the work of each
individual, the immediate work community, and the entire Group. The
progress of the programme is monitored on a regular basis, and the
effectiveness is measured with e.g., regular personnel surveys. In 2021,
the focus has been, among other things, on better and broader communi-
cation and processing of shared issues related to nuclear professionalism,
clear decision-making and improving cooperation, as well as develop-
ment activities related to a modern workplace and work methods.
The focus of occupational health care has been on preventative occu-
pational health care, which supports the employee’s health, work, and
functioning abilities, as well as their maintenance and development.
-
va’s supervisors was carried out from August to September 2021.
135 supervisors took part in the investigation, and the analysis of the
Group’s occupational health care provider, Terveystalo. The objective
was to gain an overall picture of the supervisors’ coping at work. The
necessary means and procedures for promoting and supporting the
supervisors’ coping at work will be planned based on the results.
The human resource issues and indicators for 2021 can be found in
more detail in the Corporate Social Responsibility Report.
Training
employees was implemented according to the annual training
programme as in previous years. Personnel were trained for a total
training was offered, and training was carried out in a high-quality
In 2021, OL1, OL2, and OL3 operators attended operational training
days in the spring and in the autumn as well as advanced simulator
courses according to their training programme. OL3 operators worked
in shifts in the combined operating organisation of the Plant Supplier
-
-
19
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Subsidiaries and
joint ventures
Major Events after
the End of the Year
TVO NUCLEAR SERVICES OY
nuclear safety, cost-effective operations and nuclear waste manage-
ment, and services and know-how related to building new nuclear
ary of Posiva. As stated in its Articles of Association, PSOY provides
nuclear waste management consultancy and planning, as well as
research and development activity related to the industry.
TVO ANNOUNCED
January 2022, that the OL3 plant unit’s electricity production starts
at the end of January. The main reason for the postponement of the
start of electricity production was an unplanned automatic trip, which
occurred on 14 January 2022. In a stock exchange release published on
production starts at the end of February 2022, and regular electricity
production starts in July 2022. The schedule was updated once more
on 12 February 2022, according to which electricity production starts
in March 2022, and regular electricity production starts in July 2022 as
previously communicated. During the OL3 plant unit’s test production
plant unit’s automation, especially turbine island related control func-
-
cations and the tests are taking longer than previously estimated, which
is why the schedule was updated.
On 2 February 2022, the European Commission proposed the inclusion
of nuclear energy in the EU Taxonomy. The Commission’s proposal
will next be addressed by the European Parliament and the Council of
the European Union. They have four months to review the proposal,
after which they may receive an additional two months for the review,
should they so wish. Provided that neither turns down the proposal,
it will enter into effect. The Commission’s proposal on the inclusion of
nuclear power in the Taxonomy is welcome. However, the lack of clarity
in the taxonomy criteria makes the evaluation of the taxonomy eligibility
-
tions are awaited from the Commission.
fuel loading. Training on nuclear fuel loading and handling at OL3 was
organised for recognised target groups.
prepare supervisors for their tasks within the nuclear industry in more
comprehensive ways than before. The programme consists of several
training courses, some of which apply to all supervisors while others
apply to separately appointed roles.
Analysis of detailed role-based competences was continued within
competence development. This will allow the roles within the organi-
sation to inherit the correct requirements for training, induction, and
competences.
nuclear safety and waste management training course together with
other major operators in the industry. Together with Swedish nuclear
participated in the Nordic Nuclear Trainee programme. The purpose
of the training is to raise the students’ interest towards the nuclear
industry as an employer and to help them see the opportunities
nuclear power can offer in the future.
20
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
Prospects for
the Future
Proposals to the
Annual General Meeting
ELECTRICITY PRODUCTION is expected to continue as in previous
years. The prerequisites for nuclear power production in Olkiluoto are
good. Nuclear fuel availability is guaranteed by long-term agreements.
OL3’s test production phase will be continued with the aim of starting
regular electricity production in July 2022. During the test produc-
tion phase, the plant unit’s power output will be gradually increased
amendment agreements signed in June 2021, as well as the commis-
sioning stages of OL3, so that they are carried out according to the
February 2022 according to the current schedule, as was stipulated in
the amendment agreement of June 2021, the Plant Supplier will pay
completion as of the beginning of March 2022.
Posiva will continue the implementation of the EKA project in 2022,
with the recommendations of the Finnish Government, the Regional
State Administrative Agencies and health care districts, as well as the
shall also be taken into consideration in OL3’s nuclear commissioning
and the preparations for the annual outages during the spring 2022 to
ensure employees’ safety.
TEOLLISUUDEN VOIMA OYJ’S distributable equity as of 31 December
to the Annual General Meeting that no dividend shall be paid.
21
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONREPORT OF THE BOARD OF DIRECTORS
TVO Group (IFRS) (M€) 2021 2020 2019 2018 2017
Turnover
299 275 254 350 321
-20 0 87 -18 -9
Research expenses
12 12 15 16 16
Investments
578 56 369 181 299
Equity
2,063 2,043 1,819 1,745 1,667
929 929 679 679 579
4,337 4,281 4,370 4,141 3,923
711 716 591 666 656
Provision related to nuclear waste management
1,368 1,030 1,041 952 953
Balance sheet total
8,662 8,181 7,942 7,662 7,354
Equity ratio, %
31.3 31.7 28.8 28.9 29.0
Average number of personnel
1,004 984 943 872 801
Consolidated adjusted prot/loss for the nancial year (M€) 2021 2020 2019 2018 2017
-20 0 87 -18 -9
The impact of the nuclear waste management obligation
17 6 -80 22 18
Other IFRS adjustments
0 0 -1 -1 -1
The impact of joint ventures
-1 3 -1 -1 -1
-4 9 5 2 7
-4 9 5 2 7
1)
(M€) 2021 2020 2019 2018 2017
1,451 1,479 1,514 1,480 1,437
the Finnish State Nuclear Waste Management Fund
1,436 1,451 1,471 1,506 1,471
1,010 1,030 1,041 952 953
See note 24 Assets and provisions related to the nuclear waste management obligation.
Equity ratio % = 100 x
balance sheet total - provision related to nuclear waste management - loan from the
Finnish State Nuclear Waste Management Fund
4)
changed and the loans are included in equity according to IFRS standards.
22
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONKEY FIGURES
Teollisuuden Voima Oyj (FAS) (M€)
2021 2020 2019 2018 2017
Turnover
294 271 251 346 316
-4 8 5 1 6
Fuel costs
61 64 65 72 57
Nuclear waste management costs
41 28 -5 58 64
38 34 39 53 51
Investments
220 52 278 177 298
Equity
861 861 857 857 863
Appropriations
193 197 193 187 185
Non-current and current interest-bearing liabilities
4,277 4,180 4,282 4,070 3,833
Loans from equity holders of the company
929 929 679 679 579
711 716 591 666 656
Balance sheet total
7,156 6,995 6,724 6,619 6,272
Equity ratio, %
30.8 31.7 28.2 29.0 29
Average number of personnel
1,002 983 942 871 800
Electricity delivered to equity holders of the company (GWh) 2021 2020 2019 2018 2017
Olkiluoto 1
7,393 7,299 7,531 6,742 7,144
Olkiluoto 2
7,021 7,264 7,198 7,321 6,241
Total Olkiluoto
14,414 14,563 14,729 14,063 13,385
Meri-Pori
0 82 182 660 131
Total
14,414 14,645 14,911 14,723 13,516
Capacity factors, % 2021 2020 2019 2018 2017
Olkiluoto 1
95.1 93.7 96.9 87.8 93.1
Olkiluoto 2
90.4 93.3 92.7 94.3 81.3
Total capacity factor
92.8 93.5 94.8 91.1 87.2
TVO share of the electricity used in Finland, % 2021 2020 2019 2018 2017
16.8 18.1 17.3 16.9 15.8
Equity ratio % = 100 x
balance sheet total - loan from the Finnish State Nuclear Waste Management Fund
23
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONKEY FIGURES
Consolidated income statement
EUR 1,000 Note 1 Jan-31 Dec 2021 1 Jan-31 Dec 2020
Turnover
3 298,713 275,120
Work performed for own purpose
4 25,036 21,217
Other income
5 13,446 13,253
Materials and services
6 -90,840 -78,230
Personnel expenses
7 -82,142 -72,493
Depreciation and impairment charges
3,8 -43,996 -45,461
Other expenses
9 -103,944 -86,183
Operating prot/loss
Finance income
10 4,681 11,616
Finance expenses
10 -41,887 -39,517
-37,206 -27,901
Prot/loss before income tax
-19,653 454
Income taxes
11 0 0
Prot/loss for the nancial year
-19,653 454
Prot/loss for the nancial year attributable to:
Equity holders of the company
-19,653 454
Consolidated statement of comprehensive income
EUR 1,000 Note 1 Jan-31 Dec 2021 1 Jan-31 Dec 2020
-19,653 454
Other comprehensive items
10 44,363 -21,994
Total comprehensive prot/loss for the nancial year
Total comprehensive prot/loss for the nancial year attributable to:
Equity holders of the company
24
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Consolidated balance sheet
EUR 1,000 Note 31 Dec 2021 31 Dec 2020
Assets
Non-current assets
Property, plant and equipment
12 6,177,755 5,664,650
Intangible assets
13 2,543 2,589
Loans and other receivables
16 714,027 959,286
Investments in joint ventures
14 5,516 4,236
Investments in shares
17 1,935 1,934
20 33,966 28,516
Share in the Finnish State Nuclear Waste Management Fund
24 1,010,071 1,029,522
Total non-current assets
Current assets
Inventories
19 274,489 274,215
Trade and other receivables
16 261,834 52,231
20 7,809 2,515
Cash and cash equivalents
18 172,318 161,363
Total current assets
Total assets
Equity and liabilities
Capital and reserves attributable to equity holders of the company
Share capital
21 600,365 600,365
Share premium reserve and statutory reserve
21 242,383 242,383
Fair value and other reserves
21 16,991 -27,372
21 929,300 929,300
Retained earnings
21 274,022 298,272
Total equity
EUR 1,000 Note 31 Dec 2021 31 Dec 2020
Liabilities
Non-current liabilities
Provision related to nuclear waste management
24 1,368,291 1,029,522
Loan from the Finnish State Nuclear Waste Management Fund
22 711,266 716,447
Bonds
22 2,811,264 2,720,218
22 1,065,928 1,092,051
20,22 10,740 40,413
Total non-current liabilities
Current liabilities
22 445,619 427,211
20,22 3,268 1,598
Advance payments received
23 21,218 19,789
Trade payables
23 56,672 8,330
Other current liabilities
23 104,936 82,530
Total current liabilities
Total liabilities
Total equity and liabilities
25
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Consolidated statement of changes in total equity
EUR 1,000 Share capital
Share premium reserve
and statutory reserve
Reserve for invested
non-restricted equity
Fair value and
other reserves
Subordinated shareholder
loans (hybrid equity) Retained earnings
Attributable to equity
holders of the company Total equity
Equity 1 Jan 2021
Equity 31 Dec 2021
EUR 1,000 Share capital
Share premium reserve
and statutory reserve
Reserve for invested
non-restricted equity
Fair value and
other reserves
Subordinated shareholder
loans (hybrid equity) Retained earnings
Attributable to equity
holders of the company Total equity
Equity 1 Jan 2020
Acquisition of own shares
Equity 31 Dec 2020
26
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
EUR 1,000 Note 2021 2020
Operating activities
-19,653 454
Finance income and expenses
Depreciation and impairment charges
-1,280 -1,132
-25,629 -29,268
-17,739 21,527
-376 -4,465
-4,296 -3,896
Dividend received
Interest received
Cash ow from operating activities
Investing activities
Acquisition of property, plant and equipment
-315,370 -273,590
OL3 project compensation
Proceeds from sale of property, plant and equipment
Acquisition of intangible assets
-263 -741
Acquisition of shares
-1 0
Loan receivables granted
-105 -125,138
Repayments of loans granted
Cash ow from investing activities
-103,472 -399,102
EUR 1,000 Note 2021 2020
Financing activities
Acquisition of own shares
Withdrawals of long-term loans
Repayment of long-term loans
-571,683 -255,481
Principal elements of lease payments
-2,117 -2,052
-4,673 -4,818
-198,410 -300,000
Cash ow from nancing activities
Change in cash and cash equivalents
Cash and cash equivalents 1 Jan
Cash and cash equivalents 31 Dec
18 172,318 161,363
27
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
1 General information on the Group
domiciled in Helsinki.
internet address www.tvo..
Under the Finnish Limited Liability Companies Act, the Shareholders’
Effects of making the OL3 plant unit
critical on the nancial statements
to nuclear commissioning in 2021, when fuel loading was completed in
Electricity production is to start in March 2022, once the plant unit is
connected to the national grid. Regular electricity production starts in July
2022. At the end of the accounting period for 2021, the OL3 plant unit
was in the test production phase. The plant investment is however still
incomplete, and all realised costs that can be recognised in the cost of the
asset have been entered as incomplete plant investment.
The OL3 plant unit’s nuclear waste liability calculation according to IAS 37
starts and the related provision is recorded in the balance sheet once the
plant unit is made critical and operations producing nuclear waste begin.
The OL3 plant unit was made critical on 21 December 2021, and a provi-
accounting period 2021. The accounting policies of the calculation are
consistent with the corresponding calculation for the OL1 and OL2 plant
units, and the accounting policies are presented in the paragraph Assets
and provisions related to the nuclear waste management obligation.
The effect of the COVID-19 pandemic
on the nancial statements
materially affected accounting policies nor reporting numbers.
TVO’s cost-price principle
means that it delivers the electricity it has produced or procured to its
shareholders in proportion to their shareholdings in each series. Each of
each series is responsible for the following variable annual costs of the
Company allocated to the series in proportion to the electricity it has
1. Acquisition, transport, transportation insurance, storage and
2. Taxes depending on the power production, and
3. Other costs incurred to the company directly depending on the
power volume used by the respective shareholder.
each series, irrespective of whether or not it has used its share of elec-
4.
5.
7. Installments and interest payments on the loans of the Company
falling due annually in accordance with the loan agreements of the
8.
9. Costs set out in the Nuclear Energy Act incurred by the Company’s
10. Other costs independent of power production related to the Compa-
ny’s normal business and included in the budget or approved by the
Board of Directors.
28
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
-
er’s share of the liability for the annual costs will always be limited to
the amount corresponding to the proportion of its shareholding to all
shares belonging to the same series, and another shareholder’s failure
will not increase the shareholder’s liability based on shareholding. Only
the Company will have the sole right to call upon the responsibility
-
holders shall not be liable for costs other than the costs of the Company
mentioned above, unless otherwise agreed.
A prerequisite to the shareholder’s right to receive electricity is that it
has paid its share of costs on time. If a shareholder neglects to observe
its payment obligation, the Company will have the right to immediately
cut off the distribution of electricity to the shareholder and to sell the
shareholder’s portion of electricity to a party submitting the best offer,
primarily to another shareholder of the Company.
The cost-price principle is described in detail in the Articles of Association.
2 Accounting policies
Basis of preparation
been prepared in accordance with International Financial Reporting
accordance with the IAS and IFRS standards and SIC and IFRIC inter-
pretations effective on 31 December 2021. In the Finnish Accounting
and interpretations which have been endorsed by the EU in accordance
historical cost convention, except for fund units and investments in shares
the functional and presentation currency of the Group’s parent company.
to the same accounting policies as in 2020. The Group has adopted the
•
The following amendments to existing standards issued already will be
•
The standard amendment prohibits a company from deducting from
the cost of property, plant and equipment amounts received from
selling items produced while the company is preparing the asset for
its intended use. With the amendment, profts will not be deducted
from testing costs which form a part of the asset’s acquisition cost as
before. Instead, a company will recognise such sales proceeds in the
test production electricity and variable costs will be recorded in the
income statement.
•
•
•
Leases, and IAS 41 Agriculture
The following new standards and amendments to existing standards
• IFRS 17 Insurance Contracts
•
1)
•
Estimates and Errors
1)
•
1)
The management is assessing the impact of these changes on the
1)
The standard, interpretation or amendment to published standard or interpretation is still
subject to endorsement by the European Union. Effective date will be 1 January 2023.
Companies included in the consolidated
nancial statements
Subsidiaries
are companies in which the Group has control at the end of the
of the voting rights or otherwise has control. Subsidiaries acquired
are consolidated from the date on which control is transferred to the
Group, and subsidiaries sold are no longer consolidated from the date
that control ceases.
The purchase method of accounting is used to consolidate subsidiaries
into the Group. The purchase price is determined as the aggregate of
the acquisition date fair values of the assets given as consideration and
liabilities incurred or assumed. Costs directly attributable to the acquisi-
In the consolidation, intercompany share ownership, intercompany
transactions, receivables, liabilities, unrealised gains and internal distri-
if the losses are due to impairment of the asset being transferred.
To ensure consistency, subsidiaries’ accounting policies have, in all
material respects, been changed to conform to the accounting policies
adopted by the Group.
29
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Joint ventures
The Group applies IFRS 11 to all joint arrangements. Under IFRS 11,
-
tions or joint ventures, depending on the contractual rights and obliga-
tions of each investor.
Both ventures are liable for its main activities in proportion to their own
usage. Posiva Solutions Oy is a wholly-owned subsidiary of Posiva Oy
Posiva has accumulated from its design, research and development
-
ciated consulting services. The Posiva Group is accounted for by the
equity method of accounting.
Under the equity method of accounting, interests in joint ventures are
initially recognised at cost and adjusted thereafter to recognise the
in other comprehensive income. When the Group’s share of losses in
a joint venture equals or exceeds its interests in the joint ventures, the
Group does not recognise further losses, unless it has incurred obliga-
tions or made payments on behalf of the joint ventures.
Unrealised gains on transactions between the Group and its joint
venture are eliminated to the extent of the Group’s interest in the joint
ventures. Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the asset transferred. Accounting
policies of the joint ventures have been changed where necessary to
ensure consistency with the policies adopted by the Group.
Segment reporting
Directors is the chief operation decision maker. Electricity from the coal
-
quished its share in Meri-Pori in full in July 2020.
Revenue recognition principles
on the consideration received when electricity is delivered or services
are rendered. Revenue is presented net of indirect sales taxes. Revenue
Sales of electricity and other revenue
Revenue on sales of electricity concerning variable charge is recognised
based on delivery. The recognised income for shareholders is based on
the quantities delivered. The variable charge is invoiced and recognised
in turnover monthly. These variable costs are payed retrospectively
customer contracts, are invoiced one month in advance and recognised
costs must be paid monthly in advance, and no later than the 24th day
of the preceding month.
The revenue from services is recognised on an accrual basis in the
accounting period when the services are rendered to the customer and
when the control of the service transfers to a customer.
Revenue from long-term consulting services projects that spread over
several accounting periods is recognised based on the proportion of
costs incurred from work performed up to the balance sheet date and
the estimated total expenses of the project. If it is probable that total
contract costs will exceed total contract revenue, the expected loss is
recognised as an expense immediately.
Other income
Revenue from activities outside the ordinary course of business is
reported as other income. This includes joint ventures’ revenue from
services, rental income and non-recurring items, such as gains from
sales of property, plant and equipment. Rental income is recognised
on a straight line basis over the rental period and gains from sales
of property, plant and equipment when the significant risks and
rewards of ownership, interests and control have been transferred
to the buyer.
Government grants
Grants are recognised at their fair value, when the Group meets all the
conditions attached to them, and where there is a reasonable assurance
that the grant will be received. Government grants relating to costs are
deferred on the balance sheet and recognised in the income statement
over the period in which their relevant costs are recorded. Government
grants relating to the purchase of property, plant and equipment are
deducted from the acquisition cost of the asset.
Research and development costs
incurred and included in other expenses in the income statement.
Development costs are capitalised if it is assured that they will generate
future income, in which case they are capitalised as intangible assets
and amortised over the period of the income streams. Currently, the
Group does not have any development costs that would qualify for
capitalisation.
Research costs that relate to nuclear waste management are discussed
in the paragraph Assets and provisions related to nuclear waste
management obligations.
30
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Property, plant and equipment
Property, plant and equipment of the Group are stated on the consoli-
dated balance sheet at historical cost less grants received, accumulated
depreciation and impairment charges, and compensation, if any.
Historical cost includes expenditure that is directly attributable to the
acquisition of an item.
incurred during the construction period will be included.
The historical costs of nuclear power plants include furthermore the esti-
mated costs of dismantling and removing an item and restoring the site
Land and water areas are not depreciated.
Other property, plant and equipment are depreciated using the
straight-line method over their estimated useful lives.
•
• Investments made according to the modernisation programme 17–35 years
• Automation investments associated with the modernisation 15 years
• Additional investments 10 years
Buildings and structures 10–40 years
The assets’ residual values and useful lives are reviewed, and adjusted if
Costs of renewal of an item or a part of an item of property, plant and
equipment are capitalised if the part is accounted for as a separate
item. Otherwise, the subsequent expenditure is included in the carrying
-
when they occur. Investments connected with the modernisation and
maintenance of the power plant units are capitalised.
The OL3 plant unit is under the test production phase, and all realised
costs that meet recognition criteria are shown as incomplete plant
investment. See note 12 Property, plant and Equipment.
Intangible assets
Intangible assets are shown at historical cost less grants received,
accumulated amortisation, and impairment losses if applicable. Histor-
ical cost includes costs directly attributable to the acquisition of the
particular asset.
Other long-term expenditure included in intangible assets are amortised
on a straight-line basis over their estimated useful lives. These include
computer software and certain payments made for the use of assets.
•
Computer software 10 years
• Other intangible assets 10 years.
The amortisation period of an intangible asset is changed where neces-
sary, if the estimated useful life changes from that previously estimated.
-
sion rights. Emission rights are recognised at historical cost, and are
presented under emission rights. The current liability for returning emis-
sion rights is recognised at the carrying value of possessed emission
rights. If there is a shortfall, a current liability is recognised to cover the
acquisition of the missing emission rights. This current liability is valued
at the current market value of the emission rights at the balance sheet
date. The cost of the emission rights is recognised in the income state-
ment under costs of materials and services. The gains from the sales of
emission rights are refunded to the equity holders of the company.
Impairment of property, plant
and equipment and intangible assets
The Group assesses at each balance sheet date whether there are indi-
cations that the carrying amount of an asset may not be recoverable. If
such indications exist, the recoverable amount of the asset in question
will be measured. For the purposes of assessing impairment, assets are
examined at the level of cash-generating units, that is, at the lowest
level that is mainly independent of other units and for which there are
of corresponding units.
The recoverable amount is the higher of an asset’s fair value less costs
to sell or value in use. The value in use is determined by reference to
Impairment loss is recognised when the carrying amount of the asset
is greater than its recoverable amount. Impairment loss is charged
directly to the income statement. If a cash-generating unit is subject
-
will and subsequently, to decrease the other assets of the unit. At
recognition of the impairment loss, the useful life of the reamortised
assets is reassessed. Impairment loss of other assets than goodwill is
reversed in the case that a change has occurred in the estimates used
in measuring the recoverable amount of the asset. The increased
carrying amount must not, however, exceed the carrying amount that
would have been determined had no impairment loss been recog-
nised in prior years.
31
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Inventories
Inventories are measured at acquisition cost. The acquisition cost
comprises raw materials, direct labor, and other direct costs. The
carrying amount of inventories is not reduced to a value that is less
realisable value of inventories always covers their acquisition cost.
The cost of supplies is determined by using the rolling weighted
average cost formula. The use of nuclear fuel is recognised according
to calculated consumption.
Leases
Leases are contracts that convey the right to control the use of an
Leases are recognised as right-of-use assets and lease liability.
Right-of-use assets are recognised on the commencement date and
measured at acquisition cost, which includes the amount of the initial
measurement of lease liability, any lease payments made before the
commencement date less any lease incentives received and any initial
direct costs. Lease liabilities are regonised on the commencement date,
and are measured at present value of remaining payments that will
be paid during the term of lease. The lease payments are discounted
using the interest rate implicit in the lease. If that rate cannot be readily
determined, the interest rate of additional credit, i.e. the average
interest rate on the Group’s loans and derivatives, is used. Right-of-use
and Equipment. Lease payments are apportioned during the lease
liability to produce a constant periodic rate of interest on the remaining
balance of the liability.
Lease payments associated with short-term leases and all leases of
low-value assets are recognised on a straight-line basis as an expense
months or less. Low-value assets comprise IT equipment.
Lease payments received are recognised as income on a straight-line
basis over the lease term and presented in the income statement under
other income.
Financial assets
-
-
Transaction expenses are included in the original book value of the
recognised at fair value on their trade date.
Financial assets are derecognised once the Group has lost its contrac-
risks and revenue out of the Group.
Recognised at fair value through profit or loss
accounting of the IFRS 9 standard are recognised at fair value through
they have arisen. However, if expenses or income resulting from
OL3 power plant, they are activated as part of the acquisition cost of
the asset.
Amortised cost
Amortised cost includes non-current loan and other receivables, as
well as current trade and other receivables. If an item is due in over 12
months, it is recognised as a non-current asset. After initial recognition,
all loan and other receivables are measured at amortised cost using
the effective interest method. Trade receivables are recognised on the
balance sheet at their original nominal value, which corresponds to their
fair value.
Fair value through other comprehensive income items
Share investments are included in the “Non-current asset investments
-
sive income items. Changes in fair value are entered in other compre-
hensive income items and presented in the equity fair value reserve.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances, call deposits and
equivalents have a maturity of no more than three months from the
date of acquisition.
Impairment of financial assets
must be determined using a model based on expected credit losses.
From the Group’s perspective, the impairment model applies to trade
receivables and the earlier recognition of their credit losses.
-
sion matrix for recognising the credit risks in trade receivables, on the
basis of which a deductible item is recognised for all trade receivables
based on the expected credit losses over the entire period of validity.
The Group’s annual credit losses have been very minor, and the
expected credit losses according to the new model are not expected
already taken into account in the fair value in accordance with the IFRS
cost, the Group performs active monitoring and recognises impairment
32
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
On each closing date, the Group estimates whether objective evidence
below their acquisition cost on the closing date, this is considered
Evidence of impairment may include, for example, the counterparty’s
information indicating determinable reduction of the estimated deferred
-
Financial liabilities
Financial liabilities are recognised at fair value including transaction
Financial liabilities are included in non-current and current liabilities, and
may be either interest-bearing or non-interest-bearing. An item is recog-
nised in current liabilities if it is due within 12 months of the closing date.
Derivative nancial instruments
and hedge accounting
currency risk of fuel acquisitions and currency and interest rate risk of
sheet at fair value on the day on which the Group becomes a party to
measured at fair value on the closing date.
Items covered by hedge accounting in accordance with the IFRS 9
standard include instruments used for hedging against the currency
-
loan agreements.
relationship between the hedging instruments and the hedged items,
items. In addition, the objectives of risk management and the strate-
gies according to which hedging measures are taken are documented.
divided into non-current and current assets and liabilities based on the
and fair value hedge accounting.
With the adoption of the IFRS 9 standard, the assessment of hedge
effectiveness is based on future orientation. The ineffectiveness of the
Group’s hedging relationships is expected to continue being very minor.
-
-
hedging instrument. It must be expectable that the changes in the
value of the hedging instrument and hedged item are opposite due
to the instrument or risk used as the shared basis. Secondly, the
-
tionship are not dominated by the impact of credit risk. Thirdly, the
hedging rate of the hedging relationship must equal the hedging rate
resulting from the amount of the hedged item that the organisation
actually hedges and the amount of the hedging instrument that the
organisation actually uses for hedging that amount of the hedged
item. The IFRS 9 standard requires the same hedging rate that is
actually used in risk management.
Cash flow hedging
The effective portion of the changes in fair value of the derivative
or loss relating to the ineffective portion is recognised in the income
statement, except if they are caused by the construction of the OL3
of the acquisition cost. Changes in fair value accumulated in equity are
In hedging against the currency risk of fuel acquisitions, the hedging
the cost of the inventory item in question. In the hedging of fuel
according to the inventory recognition principles to adjust fuel
When the interest rate risk hedging of loans no longer meets the
requirements for applying hedge accounting, or when a hedging
or loss during the validity of the hedged item in question. When the
loss accumulated in equity is recognised in the income statement.
When the currency risk hedging of fuel acquisitions no longer meets
the requirements for applying hedge accounting, or when a hedging
loss accumulated in equity at the time in question is recognised in
inventories at the same time as the purchase of inventories. When the
loss accumulated in equity is recognised in the income statement.
33
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Fair value hedging
The Group applies fair value hedge accounting in the interest rate
fair value of derivative instruments that meet the criteria for fair value
hedge accounting, as well as the change in fair value caused by the
values of loans and fair values of hedging instruments directed at loans
are included in interest-bearing liabilities and assets. If the criteria for
hedge accounting are no longer met, the adjustments made to the
hedged loan are released into the income statement using the effective
interest method for the remaining maturity of the loan.
Derivatives outside hedge accounting
Changes in the fair value of interest rate options, interest rate swaps,
and forward exchange contracts left outside hedge accounting are
not activated as part of the acquisition cost caused by the construction
of the OL3 power plant.
Borrowing costs
have incurred, except when they relate to the construction of a power
exceeds one year. In that case, borrowing costs are capitalised as part
of the cost of the asset.
Foreign currency items
recognised at the rates on the day when they occur. Receivables and liabil-
-
gains and losses from operating activities are included in the corresponding
Equity
Share capital
entitles the shareholder to the electricity generated by the OL1 and
OL2 nuclear power plant units. The B series entitles the shareholder to
the electricity that will be generated by the OL3 nuclear power plant
unit. The Company’s C series shares, which entitled to electricity gener-
ated at Meri-Pori, were invalidated in July 2020.
Payments received from shares in connection with founding the
Company and in the form of increases in share capital are recognised
under share capital, statutory reserve, and share premium reserve.
Subordinated shareholder loans (hybrid equity)
at fair value, including related transaction costs. There is no maturity
borrower is entitled to repay the loan in one or several installments. The
Board of Directors of the borrower has the right to decide not to pay
interest during any current interest period. Unpaid interest does not
accumulate to the following interest periods.
recognised in liabilities when the obligation to pay interest is incurred.
Interest expenses are recognised on an accrual basis in the retained
Earnings per share
The Group does not report earnings per share, as the parent company
public market.
Provisions
The Group recognises a provision for environmental restorations,
asset retirement obligations, as well as legal and other claims, when
the Group has a legal or constructive obligation, and it is likely that
the amount of the obligation can be reliably estimated. The provision
is measured at the present value of the expenditure expected to be
required to settle the obligation. The discount rate used in the measure-
ment of provisions is the estimated average risk premium of companies
is recognised as interest expense.
-
ment obligation under the Nuclear Energy Act. The provision covers all
future expenditures arising from nuclear waste management, including
the decommissioning of nuclear power plants, the disposal of spent
fuel, and a risk marginal.
Assets and provisions related to the nuclear
waste management obligation
The parent company’s nuclear waste management obligation which
is based on the Nuclear Energy Act is covered by payments made to
the Finnish State Nuclear Waste Management Fund. The obligation
covers all the future expenditures for nuclear waste management,
including the decommissioning of nuclear power plants, the disposal
of spent fuel, and a risk marginal. The amount of payments is deter-
mined by assuming that the decommissioning would start at the
beginning of the year following the assessment year. The research
arising from these activities, including the acquisition cost of property,
plant and equipment.
34
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
State Nuclear Waste Management Fund is shown as non-current
assets. It is accounted for in accordance with IFRIC 5 Rights to Interests
Arising from Decommissioning, Restoration and Environmental Reha-
bilitation Funds. It is stated that the fund assets are measured at the
does not have control or joint control over the Finnish State Nuclear
Waste Management Fund. An adjustment is only recorded if the legal
share in the Fund is higher than the provision according to IFRS.
higher than the provision according to IFRS, due to which an adjust-
-
ment IFRS calculation. The OL3 plant unit’s share in the Fund is in turn
lower than the provision according to IFRS, and therefore an adjust-
note 24 Assets and provisions related to the
The nuclear waste management obligation is shown as a provision
under non-current liabilities. The fair value of the nuclear waste manage-
ment provision has been determined by discounting the future cash
expenditure relating to it, taking into account actions already taken.
The present initial value of the provision for the decommissioning of a
be adjusted later for possible changes in the plan. The amount recog-
nised relating to decommissioning will be depreciated over the esti-
mated operating time of the nuclear power plant.
The provision for spent fuel covers the future disposal costs of fuel
used by the end of each accounting period. The costs for the disposal
are expensed during the operating time of the plant, based on fuel
usage. The impact of any changes to the plan will be recognised imme-
diately in the income statement based on fuel used by the end of each
accounting period.
The timing factor is taken into account by recognising the interest
expense related to discounting the nuclear waste management provi-
higher than the corresponding asset recognised in the balance sheet.
in the Fund, as required by the Nuclear Energy Act. The obligation
for nuclear waste management is not discounted. The amount of the
annual payment to the Finnish State Nuclear Waste Management Fund
is based on the change on the nuclear waste management obligation
and the changes resulting from actions taken.
According to the Nuclear Energy Act Section 52 c, which entered
into force on 1 May 2021, a three percent protected portion shall be
added to the Fund target of the calendar year for a party with a nuclear
waste management obligation. The protected portion shall primarily be
a party with a nuclear waste management obligation shall supply the
Finnish State Nuclear Waste Management Fund with collateral secu-
day of March, the total amount of the collateral security corresponds
with the protected portion for the part that is not covered by the trans-
supplied by the party with a nuclear waste management obligation,
which is not needed to cover the protected portion anymore, shall be
returned to the party with a nuclear waste management obligation at
Taxes
operations, and therefore there is no taxable income. The tax recog-
nised by the Group consists of tax relating to non-deductible expenses.
Employee benets
external pension insurance companies. The insurance policies relating
to earnings-based pensions, as well as some voluntary pension insur-
-
nised on an accrual basis in the income statement.
Critical accounting estimates and judgements
-
tions concerning the future. Estimates and assumptions have an effect
on the reported amounts of assets and liabilities, and expenses and
income during the accounting period. The actual results may differ from
these estimates.
The provision for future obligations for the decommissioning
of the nuclear power plant and for the disposal of spent fuel
Estimates and assumptions have been used when estimating the
assets, liabilities, expenses, and income related to the future decommis-
sioning of the nuclear power plant and the disposal of spent fuel. These
The main assumptions relate to technical plans, time factor, cost esti-
mates, and the discount rate. The technical plans are approved by State
authorities. Any changes in the assumed discount rate would change
the provision. If the discount rate used were lowered, the provision
would increase.
Any future increase in the provision would be offset by the recognition
Nuclear Waste Management Fund. According to IFRS, the carrying
35
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
does not have control in the Finnish State Nuclear Waste Management
note 24 Assets and provisions related to nuclear waste
December 2021, and a provision related to nuclear waste liability of
Olkiluoto 3 EPR
OL3 is a nuclear power plant unit currently under the test production
-
tium companies Areva NP, Areva GmbH and Siemens AG as well as
with Areva Group parent company Areva SA, a company wholly owned
by the French State, concerning the completion of the OL3 project and
related disputes entered into force late March 2018. In the GSA, the plant
supplier consortium companies committed to ensuring that the funds
all applicable guarantee periods. Consequently, a trust mechanism was
set up funded by Areva companies to secure the funds required to cover
Areva’s costs for the completion of the OL3 project. During the accounting
2018 GSA, but it was replenished according to the amendment agree-
2020 on the terms of the OL3 project completion. In addition, the Areva
-
sary funding for the companies to complete the OL3 project. The parties
reached a consensus in their negotiations regarding the main principles of
the OL3 project completion in May 2021, and the agreements regarding
the amendments to the OL3 project 2018 GSA were signed in June
•
The Areva companies’ trust mechanism, established in the GSA of 2018, was
replenished in July with EUR 432.3 million.
• Both parties are to cover their own costs as of July 2021 until the end of
February 2022.
• In the case that the plant supplier consortium companies were not to complete
the OL3 project by the end of February 2022, they would pay an additional
• In connection with the agreement entering into force, the Plant Supplier paid
the GSA 2018.
All payments related to the settlement compensations have been
recorded in the consolidated balance sheet as property, plant and
equipment. At the end of the accounting period, the current receivables
from the Plant Supplier were EUR 193.1 million.
The Radiation and Nuclear Safety Authority granted a fuel loading
permit for OL3 in March 2021, and the fuel loading was completed in
April 2021. The completion of fuel loading meant that the OL3 plant
unit was achieved on 21 December 2021. Electricity production starts
in March 2022, once the plant unit has been connected to the national
grid. Regular electricity production starts in July 2022.
investment in the OL3 project will be approximately EUR 5.7 billion.
All the realised costs of the OL3 project that meet recognition criteria
have been booked as acquisition costs of property, plant and equip-
that there are no known technical or other issues that would prevent
the completion of the OL3 project from the test production phase to
regular electricity produc-tion. The recognition criteria of the acquisition
costs of the OL3 project are realised because all the necessary actions
will be completed to prepare the asset for its intended use.
Impairment testing
Impairment testing of non-current assets is performed when there are
indications that the carrying amount of an asset may not be recover-
by use of the asset and its possible sale are used as an indicator.
documents, the shareholders are obliged to pay all the expenses of the
Company in electricity prices, including amortisation of property, plant
and equipment. When assessing by means of recoverable amounts
possible impairment of assets and subsequent need for recognition
of impairment loss, the recoverable amounts always correspond, with
some exceptions, to the carrying amount of the asset and thus, as a
rule, no need for recognition of impairment loss arises.
36
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
3 Segment reporting
Segment structure in the TVO Group
The electricity of the nuclear power segment is produced at two nuclear power plant units, Olkiluoto 1 and
the nuclear power segment.
-
quished its share in Meri-Pori in full in July 2020.
Segment calculation principles
Adjustments made under IFRS accounting policies are reported at group level.
Turnover by segments
EUR 1,000 2021 2020
Nuclear power
298,713 269,308
0 5,812
Total
298,713 275,120
Depreciation and impairment charges by segments
EUR 1,000 2021 2020
Nuclear power
-37,650 -38,627
0 0
-37,650 -38,627
The impact of the nuclear waste management obligation
-5,791 -6,372
Other IFRS adjustments
-555 -462
Total (IFRS)
-43,996 -45,461
Finance income and expenses by segments
EUR 1,000 2021 2020
Nuclear power
-11 4,261
0 0
-11 4,261
The impact of the nuclear waste management obligation
-37,262 -28,857
-514 338
The impact of joint ventures
0 -4,270
Other IFRS adjustments
581 627
Total (IFRS)
-37,206 -27,901
37
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Prot/loss for the nancial year by segments
EUR 1,000 2021 2020
Nuclear power
-3,573 8,560
0 0
-3,573 8,560
The impact of the nuclear waste management obligation
-17,424 -5,962
-514 338
Other IFRS adjustments
578 656
The impact of joint ventures
1,280 -3,138
Total (IFRS)
-19,653 454
Assets by segments
EUR 1,000 2021 2020
Nuclear power
7,155,886 6,995,740
0 0
7,155,886 6,995,740
The impact of the nuclear waste management obligation
1,478,313 1,156,968
11,113 6,586
47,953 49,701
Other IFRS adjustments
-35,506 -31,163
The impact of joint ventures
4,504 3,225
Total (IFRS)
8,662,263 8,181,057
Trade receivables by segments
EUR 1,000 2021 2020
Nuclear power
10,183 2,939
0 0
10,183 2,939
Total (IFRS)
10,183 2,939
Group-wide disclosures
Turnover shared to production of electricity and services
EUR 1,000 2021 2020
Production of electricity
293,781 271,014
Services
4,932 4,106
Total
298,713 275,120
Trade receivables shared to production of electricity and services
EUR 1,000 2021 2020
Production of electricity
9,301 1,508
Services
882 1,431
Total
10,183 2,939
Information about geographical areas
-
holders in proportion to their shareholdings in each series.
The Group assets are located in Finland except part of inventories of nuclear fuel acquisition.
38
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
EUR 1,000 2021 2020
Personnel expenses related to OL3
25,036 21,217
Total
25,036 21,217
Employee benet costs
EUR 1,000 2021 2020
Wages and salaries
69,052 62,372
10,616 8,117
Other compulsory personnel expenses
2,474 2,004
Total
82,142 72,493
Employee bonus system
remuneration systems. All permanent and long-term temporary employees are included in the employee bonus
Average number of personnel during nancial year
2021 2020
811 798
Manual workers
193 186
Total
1,004 984
Number of personnel on 31 December
2021 2020
793 793
Manual workers
191 182
Total
984 975
EUR 1,000 2021 2020
Nuclear fuel
61,757 65,588
Coal
0 1,777
Materials and supplies
5,011 5,088
CO
2
emission rights
151 1,741
Nuclear waste management services
15,018 -1,008
-964 -4,729
External services
9,867 9,773
Total
90,840 78,230
1)
See note 24 Assets and provision related to nuclear waste management obligation.
EUR 1,000 2021 2020
Rental income
1,101 1,121
0 51
Sales of services
11,144 11,340
Other income
1,201 741
Total
13,446 13,253
39
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
EUR 1,000 2021 2020
Maintenance services
24,297 15,156
Regional maintenance and service
10,428 9,285
Research services
2,416 3,323
Other external services
30,602 25,364
Real estate tax
6,034 6,306
Rents
1,397 1,324
ICT expenses
6,079 6,300
Personnel related expenses
4,005 3,537
Corporate communication expenses
837 766
Other expenses
17,849 14,822
Total
103,944 86,183
Auditors’ fees and non-audit related services
PricewaterhouseCoopers Oy
EUR 1,000 2021 2020
Auditing
267 199
Tax services
28 8
Other services
70 33
Total
365 240
EUR 1,000 2021 2020
Intangible assets
ICT software
370 366
Other intangible assets
38 47
Total
408 413
Property, plant and equipment
Buildings and construction
3,786 3,351
Machinery and equipment
33,359 34,280
Other property, plant and equipment
652 1,045
Decommissioning
5,791 6,372
Total
43,588 45,048
Total
43,996 45,461
40
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
EUR 1,000 2021 2020
0 0
Total
0 0
note 1
in taxation.
Items included in the income statement
EUR 1,000 2021 2020
Interest income from loans and other receivables
Nuclear waste management loan receivables from equity holders of the company
3,612 3,586
Other
494 127
Non-hedge accounted derivatives
Change in fair value
127 483
Interest income from assets related to nuclear waste management
448 7,420
Finance income, total
4,681 11,616
To the Finnish State Nuclear Waste Management Fund
3,612 3,586
To others
-76 -492
Hedge accounted derivatives
Ineffective portion of the change in fair value in fair value hedge relationship
0 0
Non-hedge accounted derivatives
Change in fair value
641 146
Interest expenses of provision related to nuclear waste management
37,710 36,277
Finance expenses, total
41,887 39,517
Total
-37,206 -27,901
1)
resulting from ineffectiveness is activated in the balance sheet.
Other comprehensive items
EUR 1,000 2021 2020
Changes in the fair value of which the following items have transferred
35,329 -26,261
Transfers to inventories
498 3,715
Transfers to the nuclear power plant under construction
-9,533 -7,982
Transferred items, total
-9,034 -4,267
Cash ow hedges, total
44,363 -21,994
Total other comprehensive items
44,363 -21,994
41
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
2021
EUR 1,000
Land and
water areas
Buildings and
construction
Machinery and
equipment
Other property,
plant and equipment
Construction in progress
and advance payments Decommissioning Total
Acquisition cost 1 Jan
12,054 277,891 1,393,115 54,172 5,054,334 218,551 7,010,117
Increase
0 949 23,760 150 184,937 367,919 577,715
Decrease
0 -33 -59,532 0 -9,357 -11,632 -80,554
Transfer between categories
0 15,568 15,611 0 -31,179 0 0
Acquisition cost 31 Dec
12,054 294,375 1,372,954 54,322 5,198,735 574,838 7,507,278
Accumulated depreciation and impairment charges according to plan 1 Jan
0 226,006 979,628 48,729 0 91,105 1,345,467
Accumulated depreciation from deduction
0 0 -59,532 0 0 0 -59,532
Depreciation for the period
0 3,786 33,359 652 0 5,791 43,588
Accumulated depreciation and impairment charges according to plan 31 Dec
0 229,792 953,455 49,381 0 96,896 1,329,523
Book value 31 Dec 2021
12,054 64,584 419,500 4,941 5,198,735 477,941 6,177,755
Book value 1 Jan 2021
12,054 51,886 413,488 5,443 5,054,334 127,445 5,664,650
2020
EUR 1,000
Land and
water areas
Buildings and
construction
Machinery and
equipment
Other property,
plant and equipment
Construction in progress
and advance payments Decommissioning Total
Acquisition cost 1 Jan
12,130 270,261 1,372,043 54,046 5,046,246 218,141 6,972,867
Increase
0 2,173 16,253 126 34,451 410 53,413
Decrease
-76 -2,198 -7,056 0 -6,833 0 -16,163
Transfer between categories
0 7,655 11,875 0 -19,530 0 0
Acquisition cost 31 Dec
12,054 277,891 1,393,115 54,172 5,054,334 218,551 7,010,117
Accumulated depreciation and impairment charges according to plan 1 Jan
0 224,741 952,404 47,684 0 84,733 1,309,561
Accumulated depreciation from deduction
0 -2,086 -7,056 0 0 0 -9,142
Depreciation for the period
0 3,351 34,280 1,045 0 6,372 45,048
Accumulated depreciation and impairment charges according to plan 31 Dec
0 226,006 979,628 48,729 0 91,105 1,345,467
Book value 31 Dec 2020
12,054 51,886 413,488 5,443 5,054,334 127,445 5,664,650
Book value 1 Jan 2020
12,130 45,521 419,640 6,362 5,046,246 133,407 5,663,306
when the OL3 plant unit starts commercial operation.
42
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Leases
Amounts recognised in the balance sheet
Right-of-use assets
EUR 1,000
Construction
in progress
Buildings and
construction
Machinery and
equipment
Book value 1 Jan 2021
72,741 517 310
Increase
0 162 84
Decrease
0 -197 0
Depreciation for the period
0 -209 -182
Book value 31 Dec 2021
72,741 273 212
EUR 1,000
Construction
in progress
Buildings and
construction
Machinery and
equipment
Book value 1 Jan 2020
72,741 456 352
Increase
0 313 166
Decrease
0 -111 0
Depreciation for the period
0 -141 -208
Book value 31 Dec 2020
72,741 517 310
Part of the assets acquired through lease agreements is accumulated as costs for construction in progress so
there is no accumulated depreciation.
Lease liabilities
EUR 1,000 2021 2020
Current
2,060 2,061
Non-current
47,350 49,416
Total
49,410 51,477
Amounts recognised in the statement of profit or loss
Depreciation charge of right-of-use assets
EUR 1,000 2021 2020
Buildings and construction
209 141
Machinery and equipment
182 208
Total
391 349
179 173
6 145
Expenses relating to leases of low-value assets that are not shown above as short-
704 264
43
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
The Group’s leasing activities and how these are accounted for
progress can be redeemed at the earliest in 2025.
The lease payments are discounted using the interest rate implicit in the lease, if the rate can readily be
determined. If that rate cannot be readily determined, the incremental borrowing rate or average interest rate
on the Group’s loans and derivatives is used. For the average interest rate on loans and derivatives on 31
December, see note 27. Payments associated with short-term leases of equipment and vehicles and all leases
are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment.
44
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
2021
EUR 1,000 CO
2
emission rights Computer software Other intangible assets Advance payments Total
Acquisition cost 1 Jan
59 21,597 4,117 270 26,044
Increase
151 256 -63 69 413
Decrease
-51 0 0 0 -51
Transfer between categories
0 0 63 -63 0
Acquisition cost 31 Dec
159 21,853 4,117 276 26,406
Accumulated depreciation and impairment charges according to plan 1 Jan
0 19,827 3,628 0 23,455
Accumulated depreciation from deduction
0 0 0 0 0
Depreciation for the period
0 370 38 0 408
Accumulated depreciation and impairment charges according to plan 31 Dec
0 20,197 3,666 0 23,863
Book value 31 Dec 2021
159 1,656 452 276 2,543
Book value 1 Jan 2021
59 1,770 490 270 2,589
2020
EUR 1,000 CO
2
emission rights Computer software Other intangible assets Advance payments Total
Acquisition cost 1 Jan
3,760 21,342 4,123 50 29,276
Increase
1,741 528 -6 220 2,483
Decrease
-5,442 -273 0 0 -5,715
Acquisition cost 31 Dec
59 21,597 4,117 270 26,044
Accumulated depreciation and impairment charges according to plan 1 Jan
0 19,734 3,581 0 23,315
Accumulated depreciation from deduction
0 -273 0 0 -273
Depreciation for the period
0 366 47 0 413
Accumulated depreciation and impairment charges according to plan 31 Dec
0 19,827 3,628 0 23,455
Book value 31 Dec 2020
59 1,770 490 270 2,589
Book value 1 Jan 2020
3,760 1,608 543 50 5,961
45
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Capitalised borrowing costs included in property, plant and equipment, and intangible assets
note 27.
Capitalised interest costs during construction
2021
EUR 1,000 Other intangible assets Buildings and construction Machinery and equipment
Other property,
plant and equipment Advance payments Total
Acquisition cost 1 Jan
1,167 27,122 95,394 2,402 1,548,448 1,674,533
Increase
0 0 0 0 90,049 90,049
Decrease
0 0 0 0 -2,408 -2,408
Acquisition cost 31 Dec
1,167 27,122 95,394 2,402 1,636,089 1,762,174
Accumulated depreciation and impairment charges according to plan 1 Jan
923 21,452 75,449 1,901 0 99,726
Depreciation for the period
13 283 997 25 0 1,318
Accumulated depreciation and impairment charges according to plan 31 Dec
936 21,735 76,446 1,926 0 101,044
Book value 31 Dec 2021
231 5,387 18,948 476 1,636,089 1,661,131
Book value 1 Jan 2021
244 5,670 19,945 501 1,548,448 1,574,808
2020
EUR 1,000 Other intangible assets Buildings and construction Machinery and equipment
Other property,
plant and equipment Advance payments Total
Acquisition cost 1 Jan
1,167 27,122 95,394 2,402 1,462,915 1,589,000
Increase
0 0 0 0 85,220 85,220
Decrease
0 0 0 0 313 313
Acquisition cost 31 Dec
1,167 27,122 95,394 2,402 1,548,448 1,674,533
Accumulated depreciation and impairment charges according to plan 1 Jan
911 21,168 74,452 1,875 0 98,407
Depreciation for the period
12 284 997 26 0 1,319
Accumulated depreciation and impairment charges according to plan 31 Dec
923 21,452 75,449 1,901 0 99,726
Book value 31 Dec 2020
244 5,670 19,945 501 1,548,448 1,574,808
Book value 1 Jan 2020
256 5,954 20,942 527 1,462,915 1,490,594
46
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
EUR 1,000 2021 2020
Posiva Group
5,516 4,236
31 Dec 5,516 4,236
Nature of investment in joint ventures:
Name of entity Place of incorporation Group share, % Measurement method
Posiva Oy - A series
Eurajoki 60 Equity
Posiva Oy - B series
Eurajoki 74 Equity
carried out according to the detailed plan examined by the Finnish Radiation and Nuclear Safety Authority and
approved by The Ministry of Economic Affairs and Employment.
Oy focuses on the sales of the know-how Posiva has accumulated from its design, research and development
Summarised nancial information (FAS) for the Posiva Group
Posiva Oy and Posiva Solutions Oy are private companies and there is no quoted market prices available for
their shares.
accounting.
Summarised balance sheet
EUR 1,000
Posiva Group
2021
Posiva Group
2020
Current
Cash and cash equivalents
28,383 26,383
7,599 6,545
Total current assets
35,982 32,928
-334 -378
-24,203 -23,145
Total current liabilities
-24,537 -23,523
Non-current
Assets
117 531
Financial liabilities
-3,760 -3,872
Total non-current liabilities
-3,760 -3,872
Net assets
7,802 6,064
Summarised statement of comprehensive income 2021 2020
Turnover
130,124 115,975
Depreciation and impairment charges
-25 -33
Interest income
21 3
Interest expense
-105 -69
Pre-tax prot from continuing operations
2,176 1,925
Income tax expense
-438 -388
Post-tax prot from continuing operations
1,738 1,537
Reconciliation of summarised financial information 2021 2020
Operating net assets 1 Jan
6,064 10,327
1,738 1,537
Dividend distribution
0 -5,800
Closing net assets
7,802 6,064
Interest in joint venture
5,516 4,236
Carrying value
5,516 4,236
47
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
2021
EUR 1,000
Fair value through
profit or loss
At fair value through
other comprehensive
income items Amortised cost Book value total Fair value total Note
Non-current assets
Loans and other receivables
714,027 714,027 714,027 16
Share investments
1,935 1,935 1,935 17
4,639 4,639 4,639 20
24,778 24,778 24,778 20
4,549 4,549 4,549 20
Current assets
Trade and other receivables
261,834 261,834 261,834 16
4,132 4,132 4,132 20
2,974 2,974 2,974 20
703 703 703 20
Cash and cash equivalents
172,318 172,318 172,318 18
Total by category
14,023 29,687 1,148,179 1,191,889 1,191,889
Non-current liabilities
Loan from the Finnish State Nuclear Waste Management Fund
711,266 711,266 711,266 22
3,877,192 3,877,192 3,953,937 22
3,161 3,161 3,161 20
7,580 7,580 7,580 20
Current liabilities
445,619 445,619 445,619 22
Trade payables
56,672 56,672 56,672 23
Other current liabilities
104,936 104,936 104,936 23
18 18 18 20
3,250 3,250 3,250 20
Total by category
3,179 10,829 5,195,685 5,209,693 5,286,439
48
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
2020
EUR 1,000
Fair value through
profit or loss
At fair value through
other comprehensive
income items Amortised cost Book value total Fair value total Note
Non-current assets
Loans and other receivables
959,286 959,286 959,286 16
Share investments
1,934 1,934 1,934 17
12,251 12,251 12,251 20
6,125 6,125 6,125 20
10,140 10,140 10,140 20
Current assets
Trade and other receivables
52,231 52,231 52,231 16
633 633 633 20
1,313 1,313 1,313 20
569 569 569 20
Cash and cash equivalents
161,363 161,363 161,363 18
Total by category
23,593 9,372 1,172,880 1,205,845 1,205,845
Non-current liabilities
Loan from the Finnish State Nuclear Waste Management Fund
716,447 716,447 716,447 22
3,812,269 3,812,269 3,863,422 22
6,837 6,837 6,837 20
33,576 33,576 33,576 20
Current liabilities
427,211 427,211 427,211 22
Trade payables
8,330 8,330 8,330 23
Other current liabilities
82,530 82,530 82,530 23
193 193 193 20
1,405 1,405 1,405 20
Total by category
7,030 34,981 5,046,786 5,088,797 5,139,950
49
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
through other comprehensive income.
Disclosure of fair value measurements by the level of fair value measurement hierarchy
2021
EUR 1,000 Level 1 Level 2 Level 3
Financial assets at fair value
8,771
27,752
5,252
Share investments
1,935
Total
41,775 1,935
Financial liabilities at fair value
3,179
10,829
Total
14,008
2020
EUR 1,000 Level 1 Level 2 Level 3
Financial assets at fair value
12,884
7,438
10,709
Share investments
1,934
Total
31,031 1,934
Financial liabilities at fair value
7,030
34,981
Total
42,011
Fair value estimation
entered into and are subsequently measured at fair value. The fair values are determined using a variety of
interest rate options is calculated using market quotes at the closing date and by using the Black and Scholes
option valuation model. The changes in fair value of the interest rate swaps and forward contracts are recog-
in fair value of interest rate options that do not qualify for hedge accounting are presented in the income
statement.
prices are not available for unquoted shares and therefore their fair value is determined using methods based
on management judgement.
50
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
2021
EUR 1,000 Gross amounts
Related amount
not set off Net amount
41,775 -9,977 31,798
-14,008 9,977 -4,031
2020
EUR 1,000 Gross amounts
Related amount
not set off Net amount
31,031 -18,216 12,815
-42,011 18,216 -23,795
similar arrangements above, each agreement between the Group and the counterparty allows for net
each party to the master netting agreement or similar agreement will have the option to settle all such
amounts on a net basis in the event of default of the other party. Per the terms of each agreement, an
event of default includes failure by a party to make payment when due.
Offsetting nancial assets and liabilities
51
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Trade and other receivables (current assets)
EUR 1,000 2021 2020
Trade receivables
10,183 2,939
Loan receivables
212 240
Prepayments and accrued income
240,019 46,348
Other receivables
11,420 2,704
Total
261,834 52,231
compensation from the Plant Supplier by the end of the accounting period. In connection with the agreement
compensation as agreed in the GSA 2018. All payments related to compensation according to the settlement
have been recorded in the consolidated balance sheet as property, plant and equipment. At the end of the
accounting period, the current receivables from the Plant Supplier were EUR 193.1 million, which is included
in the prepayments and accrued income. The prepayments and accrued income also include an estimate
of EUR 24.2 million for the surplus of the Finnish State Nuclear Waste Management Fund, which, after the
-
ance with Section 52 c of the Nuclear Energy Act. Other prepayments and accrued income include prepaid
interests, accrued interest income from shareholders, other accrued income and other prepaid expenses.
The maximum credit loss risk of trade and other receivables corresponds to their book value. On 31
was overdue more than six months. The overdue receivables are not expected to cause the Group credit
losses or impairments.
Loans and other receivables (non-current assets)
EUR 1,000 2021 2020
Nuclear waste management loan receivables
711,266 716,447
Loan receivables
2,761 2,839
Other receivables
0 240,000
Total
714,027 959,286
Fund. The nuclear waste management loan receivables formed by the amount loaned from the Finnish State
holders of the company and to Fortum Oyj. As a result of the amendment in the Nuclear Energy Act, which
entered into force in May 2021, a company liable for nuclear waste management or its shareholder is entitled
Nuclear waste management loan receivables are
allocated as follows:
EUR 1,000 2021 2020
71,296 72,319
Fortum Oyj
289,209 293,356
Oy Mankala Ab
761 772
350,000 350,000
Total
711,266 716,447
52
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
EUR 1,000 2021 2020
Share investments
1,935 1,934
Total
1,935 1,934
Cash and cash equivalents consist of on-hand cash, demand deposits and other current, liquid investments.
EUR 1,000 2021 2020
Raw uranium and natural uranium
,
Replacement cost
133,705 90,702
Book value
99,268 96,673
Difference
34,437 -5,971
Raw uranium and natural uranium
99,268 96,673
Nuclear fuel
166,681 168,906
Materials and supplies
8,540 8,636
Total
274,489 274,215
53
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Maturity structure
2021
EUR 1,000 < 1 year 1-3 years 3-5 years 5-7 years > 7 years Total
Interest rate swaps
359,117 265,000 400,000 220,000 700,000 1,944,117
Forward foreign exchange contracts and swaps
27,594 24,598 13,958 3,447 69,597
Cross-currency swaps
153,678 224,900 378,577
Total
386,711 443,276 638,857 223,447 700,000 2,392,291
Maturity structure
2020
EUR 1,000 < 1 year 1-3 years 3-5 years 5-7 years > 7 years Total
Interest rate swaps
380,000 624,117 300,000 90,000 630,000 2,024,117
Forward foreign exchange contracts and swaps
23,872 32,347 24,381 3,424 1,729 85,753
Cross-currency swaps
153,678 224,907 378,585
Total
403,872 810,141 549,288 93,424 631,729 2,488,455
Forward contracts are mainly used for hedging fuel purchases against currency risk. The opposite forward contracts, which have been
acquired to adjust these hedging amounts are netted in the table with each other, whereby the nominal describes the protected position.
Nominal values of the derivative nancial instruments
54
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Fair values of the derivative nancial instruments
2021
EUR 1,000 Positive Negative Total
Interest rate swaps
16,641 -10,842 5,799
Fair value hedges
5,252 5,252
Non-hedges
-3,065 -3,065
Forward foreign exchange contracts and swaps
11,111 11,111
Non-hedges
1,020 -95 925
Cross-currency swaps
Non-hedges
7,752 -7 7,745
Total
41,775 -14,008 27,767
2020
EUR 1,000 Positive Negative Total
Interest rate swaps
114 -33,763 -33,649
Fair value hedges
10,709 10,709
Non-hedges
-6,460 -6,460
Forward foreign exchange contracts and swaps
7,324 -1,218 6,106
Non-hedges
1,497 -71 1,426
Cross-currency swaps
Non-hedges
11,387 -499 10,888
Total
31,031 -42,011 -10,980
The effect of hedge accounting in nancial position and result
The interest rate hedging in fair value hedge accounting
EUR 1,000 2021 2020
5,252 10,709
Nominal value
273,000 423,000
Due date
12/2022 - 02/2025 03/2021 - 02/2025
The book value of the hedged item, liabilities
273,000 423,000
The degree of hedging
1:1 1:1
The change of the basic value in valid hedging instruments since 1.1.
-5,457 -1,613
The effectiveness of the hedge used to determine the change of
value for the hedged item
5,621 1,679
The weighted average interest rate during the year
1.51 % 1.34 %
In fair value hedge accounting, the accumulated amount of the fair value adjustment of the loan is EUR 5.4
The interest rate hedging in cash ow hedge accounting
EUR 1,000 2021 2020
5,799 33,649
Nominal value
1,521,117 1,301,117
Due date
09/2022 - 02/2031 12/2021 - 11/2030
The degree of hedging
1:1 1:1
The change of the basic value in valid hedging instruments since 1.1.
39,448 -13,051
The effectiveness of the hedge used to determine the change of value for the hedged item
-39,448 13,183
The weighted average interest rate during the year
1.21 % 1.24 %
55
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
The currency hedging in cash ow hedge accounting
EUR 1,000 2021 2020
11,111 7,324
0 1,218
Nominal value
69,597 85,753
Due date
01/2022 - 01/2028 01/2021 - 01/2028
The degree of hedging
1:1 1:1
The change of the spot value in valid hedging instruments since 1.1.
5,516 -10,278
The effectiveness of the hedge used to determine the change of value for the hedged item
-5,516 10,278
1.39 1.36
10.20 10.10
0.87 0.00
Share number reconciliations:
EUR 1,000 Number of shares Share capital
Share premium reserve
and statutory reserve
Reserve for invested
non-restricted equity
1 Jan 2020 1,394,283,730 600,365 242,383 3
31 Dec 2020 1,360,000,000 600,365 242,383 0
31 Dec 2021 1,360,000,000 600,365 242,383 0
Share capital
stipulated in the Finnish Limited Liability Companies Act.
the electricity produced or procured to its shareholders in proportion to their shareholding in each series. Each
the Articles of Association. The Company prepares annually a balance sheet divided into series of shares. The
of the different series of shares.
its share in Meri-Pori in full in July 2020. The Company’s C series shares, which entitled to electricity genera-
ted at Meri-Pori, were invalidated in July 2020.
56
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Share number
31 Dec 2021 31 Dec 2020
A series
680,000,000 680,000,000
B series
680,000,000 680,000,000
Total
1,360,000,000 1,360,000,000
Share premium reserve
The share premium reserve contains the share premiums of the share issues, EUR 232,435 thousand.
Statutory reserve
Fortum Power and Heat Oy, in 1979 when it became an equity holder in the company.
Fair value and other reserves
Subordinated shareholder loans (hybrid equity)
The carrying value of the interest-bearing subordinated shareholder loans in the balance sheet 31 December
of the borrower has the right to decide not to pay interest during any current interest period. Unpaid interest
does not accumulate to the following interest periods.
sory notes. Holders of subordinated shareholder loans have no shareholder rights, nor does the bond dilute
the ownership of the Company’s shareholders.
Retained earnings
57
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
EUR 1,000 2021 2020
Non-current interest-bearing liabilities
Loan from the Finnish State Nuclear Waste Management Fund
711,266 716,447
Bonds
2,811,264 2,720,218
962,461 983,308
Loans from others
56,117 59,326
Lease liabilities
47,350 49,416
10,740 40,413
Total
4,599,198 4,569,128
Current interest-bearing liabilities
Current portion of long-term bonds
306,675 153,781
44,698 74,698
Current portion of loans from others
3,386 0
Current portion of lease liabilities
2,060 2,061
Other interest-bearing liabilities
88,800 196,671
3,268 1,598
Total
448,887 428,809
Total
5,048,085 4,997,937
date. The Private Placements have been swapped by using cross-currency swaps. In 2021, the effect of
foreign exchange hedges was negative amounting to EUR 3.1 million and correspondingly, the effect of foreign
currency denominated loans was positive amounting to EUR 3.1 million.
EUR 1,000 2021 2020
Advances received
21,218 19,789
Trade payables
56,672 8,330
Accruals and deferred income and other liabilities
104,936 82,530
Total
182,826 110,649
Accruals and deferred income and other liabilities are allocated as follows:
EUR 1,000
Finnish State Nuclear Waste Management Fund
13,312 3,484
Accrued interests
40,481 42,868
Accrued personnel expenses
23,830 19,019
Accruals related to CO
2
emission rights
159 59
Others
27,154 17,100
Total
104,936 82,530
58
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
management obligation
Effects of making the OL3 plant unit critical on the Financial Statements
The OL3 plant unit’s nuclear waste liability calculation according to IAS 37 starts and the related provision
is recorded in the balance sheet once the plant unit is made critical and operations producing nuclear waste
begin. When the plant unit is made critical, it is contaminated, which commences a constructive obligation
unit’s decommissioning has been recorded as an investment in the balance sheet. No items recognised in
Share in the Finnish State Nuclear Waste Management Fund
waste including the decommissioning of the power plant through the Finnish State Nuclear Waste Manage-
based on the legal liability calculated according to the Nuclear Energy Act. The carrying value of the fund in
Provision related to the nuclear waste management obligation
The provision is related to future obligations for decommissioning of the power plant, management of spent
fuel and operating waste. The fair value of the provision is calculated according to IAS 37 based on discounted
waste management plan covering the management of spent nuclear fuel and operating waste and decommis-
sioning of the nuclear power plant. The new total cost estimate based on a new nuclear waste management
technical plan and schedule is updated every third year. The next update will be in 2022. The technical plans,
timing and cost estimates are approved by governmental authorities.
At the end of the year, the balance sheet contains the following assets and liabilities
concerning the nuclear waste management obligation:
EUR 1,000 2021 2020
1,010,071 1,029,522
Beginning of the year
1,029,522 1,040,826
366,354 8,899
Used provision
-65,295 -56,479
Changes due to discounting
37,710 36,276
End of the year
1,368,291 1,029,522
The discount rate %
4.0 4.0
TVO’s legal liability as stated in the Nuclear Energy Act and the Company’s share in
the Finnish State Nuclear Waste Management Fund
EUR 1,000 2021 2020
Liability for nuclear waste management according to the Nuclear Energy Act
1,816,100 1,450,600
the Finnish State Nuclear Waste Management Fund
1,436,100 1,450,600
1,450,600 1,478,800
365,500 -28,200
-
rately, as the corresponding total cost estimates are prepared separately for the plant units. The legal liability calcu-
reason for the difference between the carrying value of the provision and the legal liability is the fact that the legal
between non-discounted legal liability and the discounted provisions are remarkable. The change in the discount
rate has an effect on the provision. The provision increases, when the discount rate used is lowered.
59
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Pledged promissory notes and nancial guarantees
EUR 1,000 2021 2020
Pledged promissory notes to the Finnish State Nuclear Waste Management Fund
711,266 716,447
Guarantees given by shareholders related to the nuclear waste management obligation
480,670 95,880
The Company under the nuclear waste management obligation is entitled to borrow an amount equal to 75
from the fund to its shareholders and has pledged the receivables from the shareholders as collateral for
the loan. As a result of the amendment to the Nuclear Energy Act which entered into force in May 2021, a
percent of its share in the Nuclear Waste Management Fund as of 2022.
The absolute guarantees given by the equity holders of the Company are given to cover the unfunded portion
of the nuclear waste management obligation and unexpected events as determined in the Nuclear Energy
Act. According to Section 44 of the Nuclear Energy Act, a party with a waste management obligation shall
waste-generating operations and otherwise always by the end of June so that the total of collateral equals
the difference between the liabilities for the calendar year and the Fund target. At the start of the OL3 plant
-
lute guarantees as collateral security supplied to the State.
Commitments
Contingent liabilities given on own behalf
EUR 1,000 2021 2020
Bank guarantees
550 550
According to Section 40 Clause 1 of the Nuclear Energy Act, the Fund target for each calendar year shall be
equal to the liability of the previous calendar year. In order to balance the effects of nuclear waste manage-
ment costs on several operating years of the nuclear plant, the Fund target is however lower than the liability,
calculate the OL3 plant unit’s Fund target, according to Section 40 Clause 2 of the Nuclear Energy Act and the
control over the Finnish State Nuclear Waste Management Fund. As long as the Fund is overfunded from an
more than the Fund, and negative if the actual value of the Fund increases more than the provision. On 31
IFRS calculation. The OL3 plant unit’s share in the Fund is in turn lower than the provision according to IFRS,
and therefore above-mentioned adjustment is not recorded.
The difference between the funding target and the share in the Finnish State Nuclear Waste Management
Fund at the end of each year is due to the funding target being completed by paying the nuclear waste
but it will also be used to cover the protected portion.
The security also covers unexpected events as determined in the Nuclear Energy Act. The guarantees are
included in the nuclear waste management obligations, see note 25 Obligations and other commitments.
Finnish participants in the State Nuclear Waste Management Fund are allowed to borrow from the Fund
the shareholders as security for the loans. The loans are renewed annually. The loans are included in the
interest-bearing liabilities, see note 22 Interest-bearing liabilities.
60
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
joint ventures. The related parties also include the Board of Directors and the Executive Management
including the President and CEO.
Group’s parent company and subsidiaries
Company Home country Ownership, %
Share in voting
rights, %
Finland
Finland 100 100
Investment commitments
EUR 1,000 2021 2020
OL1 and OL2
84,700 88,600
OL3
401,500 433,900
Total
486,200 522,500
Pending Court Cases and Disputes
-
two nuclear power plant projects to cover the cost exceedings and project delays, and that the allocation of
-
allocation of responsibility between the parties concerning the abovementioned additional costs and delays
are to be resolved in the same proceedings.
CO2 emission rights
emissions are generated by the releases of the reserve boilers and the emergency diesel generators.
t CO2
2021
EUR 1,000 t CO2
2020
EUR 1,000
Total annual emissions from production facilities
2,435 74,074
Possessed emission rights
2,740 1,991
Emission rights bought
2,500 151 72,300 1,741
1)
The purchases of the emission rights are included in materials and services.
61
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
with the Finance Policy approved by the Board of Directors. Compliance with the Finance Policy is monitored
not include the receivables and obligations between the Company and its owners, as the Company operates
note 1
In accordance with the Finance Policy of the Company, derivative instruments are entered into only with
hedging purposes and they should qualify for hedge accounting under IFRS.
Liquidity risk
planned so that no more than 25 percent of the outstanding loans mature during the next rolling 12-month
period. The loans borrowed from the Finnish State Nuclear Waste Management Fund, which have been lent
further to the shareholders, form an exception.
purposes. There shall always exist committed credit lines with a minimum duration of 12 months for an
amount corresponding to the funding needs of the Company for the following 12 months.
In addition to long-term committed credit lines, the Company shall maintain liquid assets at an amount stated
papers, municipal papers, and treasury notes as well as money market funds are accepted as investments, and
they are mostly for the short-term purposes with maximum duration of 12 months.
Transactions with related parties are as follows
2021
EUR 1,000 Sales Purchases Receivables Liabilities
Posiva Group
11,835 87,865 5,144 1,018
2020
EUR 1,000 Sales Purchases Receivables Liabilities
Posiva Group
12,039 77,541 8,492 1,359
Teollisuuden Voima Oyj’s shareholders
Transactions with related parties are as follows
2021
EUR 1,000 Sales Purchases Receivables Liabilities
245,011 27,421 649,847 824,403
2020
EUR 1,000 Sales Purchases Receivables Liabilities
226,980 11,274 647,148 809,817
Senior management’s employee benets
the President and the CEO. The Group has no business transactions with senior management.
EUR 1,000
2021
Senior management
2020
Senior management
2,463 2,344
Total
2,463 2,344
62
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Undiscounted cash ows of nancial liabilities
2021
EUR 1,000 2022 2023 2024 2025 2026– Total
48,258 50,608 426,104 426,104 64,026 1,015,100
Financing costs
7,313 4,344 4,038 488 775 16,958
Loan from the Finnish State Nuclear Waste Management Fund
711,266 711,266
Financing costs
3,612 3,556 3,556 3,556 3,841 18,122
Bonds
250,561 311,777 644,900 500,000 1,413,000 3,120,238
Financing costs
55,975 52,545 43,046 32,223 59,198 242,987
Loans from others
56,117 56,117
Financing costs
577 577
Lease liabilities
2,060 1,948 1,848 43,552 1 49,410
Commercial papers
85,240 85,240
Other liabilities
107,815 107,815
Interest rate derivatives
11,211 8,234 7,618 8,089 22,536 57,687
Total
572,623 489,128 1,131,111 1,014,012 2,274,642 5,481,516
EUR 1,000 2022 2023 2024 2025 2026– Total
Forward foreign exchange contracts
72 14 2 1 0 89
1)
Repayments in 2022 are included in current liabilities in the balance sheet.
2)
3)
4)
63
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
1)
Repayments in 2021 are included in current liabilities in the balance sheet.
2)
3)
4)
Undiscounted cash ows of nancial liabilities
2020
EUR 1,000 2021 2022 2023 2024 2025– Total
79,498 223,408 650,608 26,104 90,130 1,069,748
Financing costs
9,666 6,148 3,003 912 1,485 21,215
Loan from the Finnish State Nuclear Waste Management Fund
716,447 716,447
Financing costs
3,484 3,582 3,582 3,582 3,582 17,813
Bonds
153,781 250,561 500,000 644,899 1,313,000 2,862,241
Financing costs
56,882 52,720 49,230 34,791 58,409 252,032
Loans from others
56,117 56,117
Financing costs
589 583 1,172
Lease liabilities
2,061 2,042 2,030 1,797 43,547 51,478
Commercial papers
191,870 191,870
Other liabilities
89,122 89,122
Interest rate derivatives
12,495 10,836 6,890 5,932 22,380 58,532
Total
599,449 605,997 1,215,343 718,017 2,248,980 5,387,786
EUR 1,000 2021 2022 2023 2024 2025– Yhteensä
Forward foreign exchange contracts
574 299 63 65 288 1,289
64
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Market risk
Currency risk
purchases of raw uranium and enrichment is frequently USD. Hedging of a currency denominated purchase
is commenced when an agreement is entered into and the forecasted currency risk becomes highly probable.
Both short-term and long-term loans are withdrawn mainly in euros. The loans denominated in other curren-
cies than euros are hedged latest at the withdrawal date.
Currency swaps, forward contracts, and options can be used to hedge the currency exposure.
Interest rate risk
Interest-bearing liabilities expose the Company to interest rate risk. The objective of the Company’s interest
rate risk management is to maintain the interest costs at as low level as possible and to diminish the volatility
of interest costs. In accordance with the Finance Policy, the duration of the loan portfolio of the Company can
interest rate swaps to hedge the fair value interest rate risk.
Expected cash ows from nancial instruments under cash ow hedge accounting
2021
EUR 1,000 2022 2023 2024 2025 2026– Total
Interest rate swaps
-9,604 -6,610 -6,002 -5,810 -22,536 -50,561
2020
EUR 1,000 2021 2022 2023 2024 2025- Total
Interest rate swaps
-9,593 -9,242 -5,296 -4,345 -20,117 -48,594
65
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Sensitivity to market risks
2021 2020
EUR 1,000 Income statement Equity Income statement Equity
-6,960 -8,575
6,960 8,575
1% upward parallel shift in interest rates
-7,639 66,639 -6,717 59,087
1% downward parallel shift in interest rates
7,459 -62,056 6,386 -65,093
hedges, affecting the income statement.
The variation in interest rates is assumed to be 1 percentage point parallel shift in the interest rate curve.
interest rate derivatives and cash equivalents.
interest rate derivatives, excluding those interest rate derivatives that are designated as and qualifying for
relate to the construction of OL3 and are capitalised in the balance sheet.
66
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Bonds
Euro Medium Term Note Programme EUR 4.000.000.000
EUR 1,000 2021 2020
Currency Nominal amount Carrying amount Nominal amount Carrying amount Interest rate % Maturity date
EUR
153,781 155,678 2.50 17.3.2021
EUR
30,000 29,999 30,000 29,995 3.88 9.5.2022
EUR
100,000 99,989 100,000 99,974 Euribor 6M + 1.58 12.9.2022
EUR
23,000 23,000 23,000 23,000 4.08 1.12.2022
EUR
20,000 19,984 20,000 19,977 2.80 8.5.2024
EUR
75,000 74,652 75,000 74,594 3.60 14.12.2027
EUR
23,000 23,741 23,000 24,630 3.50 3.5.2030
EUR
45,000 44,872 45,000 44,859 3.90 31.3.2032
EUR
20,000 19,830 20,000 19,815 3.88 8.11.2032
EUR
500,000 502,397 500,000 505,388 2.13 4.2.2025
EUR
311,777 311,695 500,000 499,557 2.63 13.1.2023
EUR
400,000 398,001 400,000 397,152 2.00 8.5.2024
EUR
650,000 646,577 650,000 645,759 1.13 9.3.2026
EUR
600,000 596,508 1.38 23.6.2028
SEK
1,000,000 97,555 1,000,000 99,608 Stibor 3M + 1.17 15.2.2022
SEK
500,000 48,779 500,000 49,829 Stibor 3M + 1.78 15.2.2024
SEK
850,000 82,805 850,000 84,526 2.38 15.2.2024
SEK
500,000 48,779 500,000 49,829 Stibor 3M + 1.42 29.10.2024
SEK
500,000 48,779 500,000 49,829 1.56 29.10.2024
Total
3,117,942 2,873,998
67
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
TVO Group debt structure by maturity
31 December 2021
EUR 1,000 2022 2023 2024 2025 2026 2027 2028 2029 2030– Total
48,258 50,608 426,104 426,104 26,104 26,104 11,818 1,015,100
Bonds
250,561 311,777 644,900 500,000 650,000 75,000 600,000 88,000 3,120,238
Loans from others
56,117 56,117
Lease liabilities
2,060 1,948 1,848 43,552 1 49,410
Commercial papers
85,240 85,240
Total
442,236 364,333 1,072,852 969,656 676,105 101,104 611,818 88,000 4,326,105
TVO Group credit commitment by maturity
31 December 2021
EUR 1,000 2022 2023 2024 2025 2026 2027 2028 2029 2030- Total
Syndicated revolving credit facility
1,000,000 1,000,000
Bilateral revolving credit facility
Bilateral bank loan
Total
1,000,000 1,000,000
68
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Credit risk
Credit risk arises from the potential failure of a counterparty to meet its contractual payment obligations.
deposits and derivative transactions expose the Company to credit risk. In addition to money market funds,
contract counterparties.
Fuel price risk
The fuel used for electricity production by the Group is uranium.
used to guarantee the availability of fuel and to minimise price risk. This includes storage strategy and diversi-
Capital risk management
funding sources.
The equity ratio of the Company varies along investment cycles. The Group aims to have a minimum equity
management obligation are excluded. Additionally, subordinated loans or equivalent loans from the share-
holders are regarded as equity.
According to the terms of some loan agreements, the Company is obliged to offer a repayment of the loan if
the loan contracts.
The equity ratio monitored by the TVO Group’s management
2021 2020
31.3 31.7
30.8 31.7
Equity ratio % = 100 x
equity + loans from equity holders of the company
balance sheet total - provision related to nuclear waste management - loan from
the Finnish State Nuclear Waste Management Fund
Equity ratio % = 100 x
equity + appropriations + loans from equity holders of the company
balance sheet total - loan from the Finnish State Nuclear Waste Management Fund
Net debt reconciliation
EUR 1,000 2021 2020
Cash and cash equivalents
172,318 161,363
3,877,192 3,812,269
Current interest-bearing liabilities
445,619 427,211
Net debt
4,150,493 4,078,117
Liabilities from financing activities Other assets
EUR 1,000 Liabilities Leases Sub-total Cash and cash equivalents Total
Net debt 1 Jan 2020
-4,269,169 -52,839 -4,322,008 237,832 -4,084,176
102,356 2,052 104,408 -76,469 27,939
Acquisitions - leases
0 -361 -361 0 -361
-21,189 -329 -21,518 0 -21,518
Net debt 31 Dec 2020
-4,188,002 -51,477 -4,239,479 161,363 -4,078,116
-96,717 2,117 -94,600 10,955 -83,645
Acquisitions - leases
0 -251 -251 0 -251
11,319 200 11,519 0 11,519
Net debt 31 Dec 2021
-4,273,400 -49,411 -4,322,811 172,318 -4,150,493
69
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
of February, instead of the previously estimated start at the end of January.
The main reason for the postponement of the start of electricity production
was an unplanned automatic trip, which occurred on 14 January 2022. In
that the OL3 plant unit’s electricity production starts at the end of February
2022, and regular electricity production starts in July 2022. The schedule
was updated once more on 12 February 2022, according to which electricity
production starts in March 2022, and regular electricity production starts
in July 2022 as previously communicated. During the OL3 plant unit’s test
the plant unit’s automation, especially turbine island related control functions,
and the tests are taking longer than previously estimated, which is why the
schedule was updated.
On 2 February 2022, the European Commission proposed the inclusion of
nuclear energy in the EU Taxonomy. The Commission’s proposal will next
be addressed by the European Parliament and the Council of the European
Union. They have four months to review the proposal, after which they
may receive an additional two months for the review, should they so wish.
Provided that neither turns down the proposal, it will enter into effect. The
Commission’s proposal on the inclusion of nuclear power in the Taxonomy
is welcome. However, the lack of clarity in the taxonomy criteria makes
-
lenging. Therefore, clarifying instructions are awaited from the Commission.
70
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATIONGROUP FINANCIAL STATEMENTS
Income statement
EUR 1,000 Note 1 Jan-31 Dec 2021 1 Jan-31 Dec 2020
Turnover
2 293,781 271,014
Work performed for own purpose
3 25,036 21,217
Other income
4 16,434 16,599
Materials and services
5 -115,198 -107,233
Personnel expenses
6 -81,961 -72,382
Depreciation and impairment charges
7 -37,650 -38,627
Other expenses
8 -104,509 -86,710
Operating prot/loss
-4,067 3,878
Financial income and expenses
9 -8 4,261
Prot/loss before appropriations and taxes
-4,075 8,139
Appropriations
10 4,075 -3,869
Prot/loss for the nancial year
0 4,270
71
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
EUR 1,000 Note 31 Dec 2021 31 Dec 2020
Equity and liabilities
Equity
Share capital
15 600,365 600,365
Share premium reserve
15 232,435 232,435
Statutory reserve
15 9,948 9,948
15,16 18,730 14,460
15,16 0 4,270
Total equity
861,478 861,478
Appropriations
193,326 196,898
Liabilities
Non-current liabilities
17,18 3,836,518 3,754,827
17 929,300 929,300
Loan from the Finnish State Nuclear Waste Management Fund
17 711,266 716,447
Current liabilities
19 623,741 536,270
Total liabilities
6,100,825 5,936,844
Total equity and liabilities
7,155,629 6,995,220
Balance sheet
EUR 1,000 Note 31 Dec 2021 31 Dec 2020
Assets
Non-current assets
Intangible assets
11 2,543 2,589
Tangible assets
11 5,709,057 5,527,099
Investments
Holdings in group companies
12 8 8
Holdings in joint ventures
12 1,011 1,011
Other receivables
12 718,247 719,266 963,505 964,524
Total non-current assets
6,430,866 6,494,212
Current assets
Inventories
13 274,421 274,044
Current receivables
14 278,208 66,010
Cash and cash equivalents
172,134 160,954
Total current assets
724,763 501,008
Total assets
7,155,629 6,995,220
72
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
EUR 1,000 2021 2020
Operating activities
-4,067 3,878
37,650 38,576
Changes in working capital
-4,257 7,747
-4,114 -3,723
Dividend received
0 4,270
Interest received
3,977 3,217
Cash ow from operating activities
29,189 53,965
Investing activities
Acquisition of shares
-1 0
Acquisition of non-current assets
-322,051 -280,884
OL3 project compensation
206,875 0
Proceeds from sale of intangible and tangible assets
0 127
Loan receivables granted
-105 -125,138
Repayments of loans granted
5,392 240
Cash ow from investing activities
-109,889 -405,655
Financing activities
Acquisition of own shares
0 -3
Withdrawals of long-term loans
800,000 478,715
Repayment of long-term loans
-571,683 -255,481
0 2,030
61,630 349,415
Repayment of short-term interest-bearing liabilities
-198,410 -300,000
Group contribution received
343 670
Cash ow from nancing activities
91,880 275,346
EUR 1,000 2021 2020
Change in cash and cash equivalents
11,180 -76,344
Cash and cash equivalents 1 Jan
160,954 237,298
Cash and cash equivalents 31 Dec
172,134 160,954
Depreciation and write-downs
37,650 38,627
0 -51
Total
37,650 38,576
Changes in working capital
-376 -4,465
-17,617 21,701
13,736 -9,489
Total
-4,257 7,747
73
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
1 Accounting principles
Valuation principles
Non-current assets and their depreciation
Non-current assets have been capitalised in the direct acquisition
cost less grants received, accumulated depreciation and impairment
charges, and compensation, if any. Depreciation according to plan is
calculated on a straight-line basis according to the estimated useful
economic lives.
•
• Investments made according to the modernisation programme 17–35 years
• Automation investments associated with the modernisation 15 years
• Additional investments 10 years
Buildings and structures 10–40 years
Valuation of inventories
Materials and supplies have been valued at direct acquisition cost,
nuclear fuel according to calculated fuel consumption, and supply
stocks at average acquisition cost. If the replacement value of inven-
tories on 31 December is lower than the original acquisition cost, the
difference will not be entered in the books as an expense because the
Company operates at cost price.
CO2 emission rights
assets. Emission rights are recognised at historical cost. The current
liability for returning emission rights is recognised at the carrying value
of possessed emission rights. If there is a shortfall, a current liability
is recognised to cover the acquisition of the missing emission rights.
This current liability is valued at the current market value of the emis-
sion rights at the balance sheet date. The cost of the emission rights
is recognised in the income statement under costs of materials and
services. The gains from the sales of emission rights are refunded to
the equity holders of the Company.
Research and development costs
Research and development costs associated with production activity
are entered as annual costs for the year in which they were incurred.
Items denominated in foreign currency
Transactions in foreign currency have been entered at the relevant
exchange rate or at the transaction rate for purchase and sale of foreign
currency. On the balance sheet date, exchange rate differences on
foreign currency accounts have been entered in the income statement
Money market instruments
Money market instruments comprise shares in short-term money
74
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
Derivative financial instruments
-
ments have not been entered on the balance sheet. Their nominal values
and fair values are presented in the Notes to the Financial Statements.
have been entered on accrual basis and shown in net amount under
have been accrued over the period to maturity.
Payments of foreign currency denominated inventory acquisitions have
been hedged with currency derivatives. The realised exchange rate
adjust the acquisition cost of inventories. Cross currency swaps have
been used to hedge foreign currency denominated long-term loans.
Items related to nuclear
waste management liability
The nuclear waste management obligation is provided for in the Nuclear
Energy Act. The obligation covers all future costs from nuclear waste
handling, including the decommissioning of nuclear power plant units,
-
missioning being assumed to start at the end of the year in question.
the end of the calendar year the liability for nuclear waste management
for the current year and the target reserve for the next year.
The company liable for nuclear waste management shall pay its contri-
bution to the Finnish State Nuclear Waste Management Fund, so that
the company’s share in the Fund on 31 March is equal to the company
According to the Nuclear Energy Act Section 52 c, which entered
into force on 1 May 2021, a three percent protected portion shall be
added to the Fund target of the calendar year for a party with a nuclear
waste management obligation. The protected portion shall primarily be
a party with a nuclear waste management obligation shall supply the
Finnish State Nuclear Waste Management Fund with collateral secu-
day of March, the total amount of the collateral security corresponds
with the protected portion for the part that is not covered by the trans-
supplied by the party with a nuclear waste management obligation,
which is not needed to cover the protected portion anymore, shall be
returned to the party with a nuclear waste management obligation at
The annual contribution to the Finnish State Nuclear Waste Manage-
ment Fund and costs from nuclear waste management and services
are entered as annual expenses. The nuclear waste management fee is
based on the Company’s proposal. If the nuclear waste management
fee set by the Finnish State Nuclear Waste Management Fund differs
from the amount proposed by the Company, the difference is entered in
obligation to the Finnish State Nuclear Waste Management Fund are
presented in the Notes to the Financial Statements.
The Company must supply the Ministry with guarantees to cover for the
difference between the legal nuclear waste management liability and
Fund, as well as for unforeseen expenses in nuclear waste management.
Guarantees are presented in the Notes to the Financial Statements.
A company liable for nuclear waste management,or its shareholder is
entitled to a loan from the Finnish State Nuclear Waste Management
Fund corresponding to 75 percent of the company’s share in the Fund.
its shareholders. As a result of the amendment to the Nuclear Energy
Act which entered into force in May 2021, a company liable for nuclear
waste management or its shareholder is entitled to borrow back a
Fund as of 2022.
75
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
2 Turnover 5 Materials and services
4 Other income
3 Work performed for own purpose
EUR 1,000 2021 2020
Olkiluoto 1 and Olkiluoto 2
293,781 265,202
Meri-Pori
0 5,812
Total
293,781 271,014
Electricity delivered to equity holders of the company (GWh)
Olkiluoto 1
7,393 7,299
Olkiluoto 2
7,021 7,264
Total Olkiluoto
14,414 14,563
Meri-Pori
0 82
Total
14,414 14,645
EUR 1,000 2021 2020
Purchases, accrual basis
Nuclear fuel
61,757 65,588
Coal
0 1,777
Materials and supplies
5,011 5,088
-964 -4,729
Total
65,804 67,724
CO
2
emission rights
151 1,741
Nuclear waste management
Contribution to the Finnish State Nuclear Waste Management Fund
-24,648 -28,219
Nuclear waste management services
65,295 56,479
Total
40,647 28,260
External services
8,596 9,508
Total
115,198 107,233
Consumption
Nuclear fuel
61,387 61,865
Coal
0 1,777
Materials and supplies
4,417 4,082
Total
65,804 67,724
EUR 1,000 2021 2020
Rental income
1,101 1,121
0 51
Sales of services
14,132 14,686
Other income
1,201 741
Total
16,434 16,599
EUR 1,000 2021 2020
Personnel expenses related to OL3
25,036 21,217
76
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
members of administrative bodies
7 Depreciation and impairment charges
Average number of personnel
2021 2020
809 797
Manual workers
193 186
Total
1,002 983
Number of employees 31 Dec
2021 2020
791 791
Manual workers
191 182
Total
982 973
Personnel expenses
EUR 1,000 2021 2020
Wages and salaries
68,898 62,273
Pension expenses
10,592 8,107
Other compulsory personnel expenses
2,471 2,002
Total
81,961 72,382
Salaries and fees paid to management
President and members of the Board of Directors
716 739
EUR 1,000 2021 2020
Depreciation according to plan
Other capitalised long-term expenses
408 413
Buildings and construction
3,577 3,210
Machinery and equipment
33,013 33,959
Other tangible assets
652 1,045
Total
37,650 38,627
77
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
8 Other expenses
EUR 1,000 2021 2020
Maintenance services
24,297 15,156
Regional maintenance and services
10,428 9,285
Research services
2,416 3,323
Other external services
30,638 25,410
Real estate tax
6,034 6,306
Rents
1,948 1,815
ICT expenses
6,078 6,299
Personnel related expenses
4,001 3,533
Corporate communication expenses
836 764
Other expenses
17,833 14,819
Total
104,509 86,710
Auditors’ fees and non audit-related services
PricewaterhouseCoopers Oy
EUR 1,000 2021 2020
Auditing
260 193
Tax services
28 8
Other services
70 33
Total
358 234
9 Financial income and expenses
EUR 1,000 2021 2020
Dividend Income
From joint ventures
0 4,270
Total
0 4,270
Interest income on long-term investments
From joint ventures
11 15
From others
3,612 3,586
Total
3,623 3,601
Other interest and nancial income
From others
483 112
Total
483 112
Interest income on long-term investments and other interest and nancial income, total
4,106 7,983
Interest expenses and other nancial expenses
To the Finnish State Nuclear Waste Management Fund
3,612 3,586
To others
96,321 88,758
Capitalised interest costs
-95,819 -88,622
Total
4,114 3,722
Total nancial income (+) and expenses (-)
-8 4,261
439 92
78
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
10 Appropriations
EUR 1,000 2021 2020
Group contribution
503 418
The difference between depreciation according to plan and tax depreciation,
3,572 -4,287
Total
4,075 -3,869
79
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
11 Non-current assets
EUR 1,000 Formation expenses Intangible rights
Other capitalised
long-term expenses Advance payments Total
Intangible assets
Acquisition cost
1 Jan 2021
54,011 59 26,378 270 80,718
Increase
0 151 194 69 414
Decrease
0 -51 0 0 -51
Transfer between categories
0 0 63 -63 0
Acquisition cost 31 Dec 2021
54,011 159 26,635 276 81,081
Accumulated depreciation according to plan 1 Jan
54,011 0 24,119 0 78,130
Accumulated depreciation from deduction
0 0 0 0 0
Depreciation according to plan
0 0 408 0 408
Book value 31 Dec 2021
0 159 2,108 276 2,543
Accumulated depreciation difference 1 Jan
0 0 1,594 0 1,594
Change in depreciation difference
0 0 -162 0 -162
Accumulated depreciation difference 31 Dec
0 0 1,432 0 1,432
Undepreciated acquisition cost in taxation 31 Dec 2021
0 159 676 276 1,111
80
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
EUR 1,000 Land and water areas Buildings and construction Machinery and equipment Other tangible assets
Construction in progress
and advance payments Total
Tangible assets
Acquisition cost
1 Jan 2021
12,054 274,820 1,389,486 53,506 5,049,917 6,779,783
Increase
0 949 22,500 150 195,601 219,200
Decrease
0 0 -59,532 0 0 -59,532
Transfer between categories
0 15,568 15,611 0 -31,179 0
Acquisition cost 31 Dec 2021
12,054 291,337 1,368,065 53,656 5,214,339 6,939,451
Accumulated depreciation according to plan 1 Jan
0 225,734 978,886 48,064 0 1,252,684
Accumulated depreciation from deduction
0 0 -59,532 0 0 -59,532
Depreciation according to plan
0 3,577 33,013 652 0 37,242
Book value 31 Dec 2021
12,054 62,026 415,698 4,940 5,214,339 5,709,057
Accumulated depreciation difference 1 Jan
0 -4,353 197,196 2,461 0 195,304
Change in depreciation difference
0 2,601 -5,860 -151 0 -3,410
Accumulated depreciation difference 31 Dec
0 -1,752 191,336 2,310 0 191,894
Undepreciated acquisition cost in taxation 31 Dec 2021
12,054 63,778 224,362 2,630 5,214,339 5,517,163
Share of machinery and equipment from book value 31 Dec 2021
398,574
Share of machinery and equipment from book value 31 Dec 2020
393,978
81
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
Capitalised borrowing costs included in non-current assets
EUR 1,000
Formation
expenses
Other capitalised
long-term expenses
Buildings and
construction
Machinery and
equipment Other tangible assets Construction in progress Total
Interest during construction period
Acquisition cost
1 Jan 2021
11,046 1,167 27,122 95,394 2,402 1,593,224 1,730,355
Increase
0 0 0 0 0 95,797 95,797
Acquisition cost 31 Dec 2021
11,046 1,167 27,122 95,394 2,402 1,689,021 1,826,152
Accumulated depreciation according to plan 1 Jan
11,046 924 21,452 75,449 1,900 0 110,771
Depreciation according to plan
0 12 283 997 25 0 1,317
Book value 31 Dec 2021
0 231 5,387 18,948 477 1,689,021 1,714,064
Accumulated depreciation difference 1 Jan
0 244 5,671 19,945 502 0 26,362
Change in depreciation difference
0 -13 -284 -997 -25 0 -1,319
Accumulated depreciation difference 31 Dec
0 231 5,387 18,948 477 0 25,043
Undepreciated acquisition cost in taxation 31 Dec 2021
0 0 0 0 0 1,689,021 1,689,021
82
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
EUR 1,000
Holdings in group
companies
Holdings in joint
ventures
Other stocks
and shares
Loan receivables,
joint ventures
Loan receivables,
others
Long-term
receivables Total
Acquisition cost 1 Jan 2021
8 1,011 4,218 2,335 716,951 240,000 964,523
Increase
0 0 1 134 0 0 135
Decrease
0 0 0 -212 -5,180 -240,000 -245,392
Acquisition cost 31 Dec 2021
8 1,011 4,219 2,257 711,771 0 719,266
Book value 31 Dec 2021
8 1,011 4,219 2,257 711,771 0 719,266
Loan from the Finnish State Nuclear Waste Management
Fund lent further to the equity holders of the company
711,266 711,266
Group companies Group share, %
100
Joint ventures
Holding of the parent
company, %
Posiva Oy, Eurajoki, A series
60
Posiva Oy, Eurajoki, B series
74
12 Investments
83
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
13 Inventories 14 Current receivables
EUR 1,000 2021 2020
Raw uranium and natural uranium
Replacement cost
133,705 90,702
Book value
99,268 96,673
Difference
34,437 -5,971
Raw uranium and natural uranium
99,268 96,673
Nuclear fuel
166,681 168,906
Supplies
8,472 8,465
Total
274,421 274,044
EUR 1,000 2021 2020
Receivables from group companies
Accrued income
1,245 1,588
Total
1,245 1,588
Receivables from joint ventures
Loan receivables
212 240
Prepayments and accrued income
2,669 5,893
Total
2,881 6,133
Receivables from others
Trade receivables
9,301 1,508
Other receivables
11,420 2,736
Total
20,721 4,244
Prepayments and accrued income
Prepaid interests
16,456 15,261
Accrued interest income
3,612 3,484
Other accrued income
231,141 34,168
Other prepaid expenses
2,151 1,132
Total
253,361 54,045
Total
278,208 66,010
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REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
15 Equity
EUR 1,000 2021 2020
Share capital 1 Jan
600,365 600,365
Share capital 31 Dec
600,365 600,365
Share premium reserve 1 Jan
232,435 232,435
Share premium reserve 31 Dec
232,435 232,435
Statutory reserve 1 Jan
9,948 9,948
Statutory reserve 31 Dec
9,948 9,948
1 Jan
14,460 14,460
Change
4,270 0
31 Dec
18,730 14,460
0 4,270
Total
861,478 861,478
EUR 1,000 2021 2020
Retained earnings
18,730 14,460
0 4,270
Total
18,730 18,730
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17 Non-current liabilities
EUR 1,000 2021 2020
Bonds
2,813,560 2,708,460
966,841 986,540
Other loans
56,117 59,827
3,836,518 3,754,827
929,300 929,300
Loan from the Finnish State Nuclear Waste Management Fund
711,266 716,447
Total
5,477,084 5,400,574
1
)
Subordinated loans.
2)
Lent further to the shareholders.
Bonds
Euro Medium Term Note Programme EUR 4.000.000.000
Currency
Capital
2021
EUR 1,000
2021
Capital
2020
EUR 1,000
2020
Maturity
date
EUR
153,781 153,781
17.3.2021
EUR
30,000 30,000 30,000 30,000
9.5.2022
EUR
100,000 100,000 100,000 100,000
12.9.2022
EUR
23,000 23,000 23,000 23,000
1.12.2022
EUR
75,000 75,000 75,000 75,000 14.12.2027
EUR
20,000 20,000 20,000 20,000 8.11.2032
EUR
23,000 23,000 23,000 23,000 3.5.2030
EUR
20,000 20,000 20,000 20,000 8.5.2024
EUR
45,000 45,000 45,000 45,000 31.3.2032
EUR
500,000 500,000 500,000 500,000 4.2.2025
EUR
311,777 311,777 500,000 500,000 13.1.2023
EUR
400,000 400,000 400,000 400,000 8.5.2024
EUR
650,000 650,000 650,000 650,000 9.3.2026
EUR
600,000 600,000 23.6.2028
SEK
1,000,000 97,561 1,000,000 97,561
15.2.2022
SEK
500,000 48,781 500,000 48,781 15.2.2024
SEK
850,000 82,927 850,000 82,927 15.2.2024
SEK
500,000 46,624 500,000 46,623 29.10.2024
SEK
500,000 46,568 500,000 46,568 29.10.2024
Total
3,120,238 2,862,241
Current portion of long-term bonds
306,678 153,781
Total
2,813,560 2,708,460
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
Other loans
US Private Placements
Currency
Capital
2021
EUR 1,000
2021
Capital
2020
EUR 1,000
2020
Maturity
date
GBP
0 0 50,000 56,117
15.11.2022
Total
0 50,000 56,117
Current portion of other loans
56,117 0
Total
0 56,117
Collateral received
0 3,710 17.3.2021
1)
Total
0 59,827
EUR 1,000 2021 2020
Debts due in more than 5 years
1,250,922 1,327,026
19 Current liabilities
EUR 1,000 2021 2020
Liabilities from group companies
Accruals
1 0
Total
1 0
Liabilities from joint ventures
Accruals
1,018 1,359
Total
1,018 1,359
Liabilities from others
Advances received
21,218 19,789
Trade payables
56,671 9,410
Total
77,889 29,199
Interest-bearing liabilities
Bonds
306,678 153,781
48,258 79,499
Commercial paper program
85,240 191,870
Total
440,176 425,150
Accruals and deferred income
Finnish State Nuclear Waste Management Fund
13,312 3,484
Accrued interests
40,481 42,867
Accrued personnel expenses
23,792 18,996
Accruals related to CO
2
emission rights
159 59
Other accruals and deferred income
26,913 15,156
Total
104,657 80,562
Total
623,741 536,270
87
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
20 Commitments
EUR 1,000 2021 2020
Leasing liabilities falling due in less than a year
2,466 2,511
Leasing liabilities falling due later
47,557 49,425
Total
50,023 51,936
Contingent liabilities given on own behalf
EUR 1,000 2021 2020
Bank guarantees
550 550
Nuclear waste management
EUR 1,000 2021 2020
Liability for nuclear waste management according to the Nuclear Energy Act
1,816,100 1,450,600
Management Fund
1,436,100 1,450,600
Collateral for nuclear waste management contingencies
480,670 95,880
Nuclear waste management loan receivables pledged to the Finnish State Nuclear
Waste Management Fund
711,266 716,447
1)
Based on the nuclear waste management programme and proposal for the liability made by the Company
Pending Court Cases and Disputes
See note 25
EUR 1,000 2021 2020
Interest rate derivatives
1,944,117 2,024,117
Fair value
7,987 -29,400
Forward foreign exchange contracts
69,597 85,753
Fair value
12,035 7,532
Cross-currency swaps
378,577 378,585
Fair value
7,745 10,888
Risk management principles, principles for the recognition of derivatives as well as details of derivatives are
the hedged risk and hedging instrument will perfectly match with each other. In documents regarding these
hedging relationships, the hedged risks and hedging instruments are extensively described and the effective-
ness between them is demonstrated.
Leasing liabilities
88
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
22 Series of shares 23 CO emission rights
Number
2021
Number
2020
EUR 1,000
2021
EUR 1,000
2020
A-series - OL1 and OL2
1 Jan 680,000,000 680,000,000 115,600 115,600
Change
0 0 0 0
31 Dec 680,000,000 680,000,000 115,600 115,600
B-series - OL3
1 Jan 680,000,000 680,000,000 484,765 484,765
Change
0 0 0 0
31 Dec 680,000,000 680,000,000 484,765 484,765
Total
1,360,000,000 1,360,000,000 600,365 600,365
emissions are generated by the releases of the reserve boilers and the emergency diesel generators.
emissions are. If the actual emissions exceed the amount of the emission rights that company possesses,
the company has booked the expense for exceeding emission rights at the market value on December 31.
t CO2
2021
EUR 1,000
t CO2
2020
EUR 1,000
Total annual emissions from production facilities
2,435 74,074
Possessed emission rights
2,740 1,991
Emission rights bought
2,500 151 72,300 1,741
1)
The purchases of the emission rights are included in materials and services. The emission rights that company
possesses on 31 December are included in intangible rights on the balance sheet and emission right reductions.
principle, i.e. it delivers the electricity produced or procured to its shareholders in proportion to their share-
divided into series of shares. The balance sheet, which will be presented to the Shareholders’ Meeting, speci-
Share capital and series of shares
89
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS FINANCIAL INFORMATIONPARENT COMPANY FINANCIAL STATEMENTS
Annual General Meeting that no dividend shall be paid.
Proposals to the Annual General Meeting
SIGNATURES FOR THE REPORT OF THE BOARD OF
DIRECTORS AND FINANCIAL STATEMENTS
Helsinki, February 17, 2022
Esa Kaikkonen Tapio Korpeinen Petra Lundström
Juha-Pekka Weckström Jarmo Tanhua
CEO
The auditor’s note
Our auditor’s report has been issued today.
Helsinki, February 17, 2022
PricewaterhouseCoopers Oy
Authorised Public Accountants
Authorised Public Accountant
90
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Auditor’s Report
Report on the Audit of the Financial Statements
Opinion
In our opinion
•
•
with statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited
•
the consolidated balance sheet, income statement, statement of comprehensive income, statement of changes in equity,
•
Basis for opinion
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good
auditing practice are further described in the Auditor’s Responsibilities for the Audit of the Financial State-
ments section of our report.
opinion.
Independence
We are independent of the parent company and of the group companies in accordance with the ethical
ethical responsibilities in accordance with these requirements.
To the best of our knowledge and belief, the non-audit services that we have provided to the parent company
and to the group companies are in accordance with the applicable law and regulations in Finland and we have
non-audit services that we have provided are disclosed in note 9 to the Financial Statements.
Our audit approach
Overview
• Overall group materiality is € 25 million, which represents approximately
0,3 % of balance sheet total
•
• Olkiluoto 3 EPR plant unit in the test production phase
• Assets and provisions related to the nuclear waste management obligation
91
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As part of designing our audit, we determined materiality and assessed the risks of material misstatement in
future events that are inherently uncertain.
Materiality
-
arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably
Based on our professional judgement, we determined certain quantitative thresholds for materiality, including
together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing
a whole.
Overall group materiality
How we determined it
0,3 % of balance sheet total
Rationale for the materiality
benchmark applied
We chose balance sheet total as the benchmark because the
company’s operations are very capital intensive and because, in
our view, this is the benchmark against which the performance of
the Group is commonly measured by users.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of the group, the accounting processes
and controls, and the industry in which the group operates.
Key Audit Matters
opinion on these matters.
As in all of our audits, we also addressed the risk of management override of internal controls, including
among other matters consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
92
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
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Key audit matter
Olkiluoto 3 EPR plant unit in the test production phase
Accounting policies and notes 1, 12 and 13 in the consolidated nancial statements.
Note 11 in the nancial statements of the parent company.
incomplete.
During the OL3 project, € 5,1 billion have been capitalised on Property, plant and equipment under Construc-
tion in progress and Advance payments of the consolidated and the parent company’s balance sheet.
According to the Articles of Association, each shareholder of the series of shares bears their share of the vari-
amount of borrowing costs has been capitalised on this item.
How our audit addressed the key audit matter
We reviewed the management’s procedures, records and other documentation related to the progress moni-
toring of the OL3 project. We also tested the internal controls relating to approval, monitoring and reporting
of expenses capitalised on the OL3 project.
We tested purchase invoices and company’s own expenses relating to the OL3 project to ascertain the costs
capitalised on the incomplete plant investment meet the recognition criteria.
During our audit we reviewed that the borrowing costs capitalised on the OL3 project were capitalised in
accordance with the accounting principles applied, and the capitalisation was performed consistently under
In our audit of the amount capitalised on the balance sheet, we considered the provisions regarding share-
holder responsibilities incorporated in the Articles of Association.
93
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Key audit matter
Assets and provisions related to the nuclear waste management obligation
Accounting policies and notes 1, 12 and 24 in the consolidated nancial statements.
Provision related to nuclear waste management obligation € 1,4 billion is presented in Non-current liabili-
ties and Share in The Finnish State Nuclear Waste Management Fund € 1,0 billion in Non-current assets of
management obligation increased, as the reactor criticality of the OL3 plant unit in the test production phase
was achieved in December 2021 and operations producing nuclear waste began.
The fair value of the nuclear waste management provision has been determined by discounting the future
taking into account actions already taken. The fair value of the share in The Finnish State Nuclear Waste
Management Fund is valued at the lower of fair value or the value of the provision.
-
high level of management judgement used in the calculations such as technical plans, time factor, cost esti-
mates and discount rate.
How our audit addressed the key audit matter
We assessed the company’s accounting policies for compliance with International Financial Reporting Stand-
ards. We assessed particularly the accounting principles of the provision for the OL3 plant unit in the test
production phase.
-
prepared consistently based on the best available information at the time.
We tested the mathematical accuracy of the calculations and whether the calculations are technically prepared
in line with the same principles from one accounting period to another and consistently for all the plant units.
We also assessed the adequacy of the disclosures presented in the accounting policies and notes of the
94
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Responsibilities of the Board of Directors and the Managing Director for the Financial
Statements
-
cial statements that give a true and fair view in accordance with International Financial Reporting Standards
requirements. The Board of Directors and the Managing Director are also responsible for such internal control
misstatement, whether due to fraud or error.
assessing the parent company’s and the group’s ability to continue as a going concern, disclosing, as appli-
-
ments are prepared using the going concern basis of accounting unless there is an intention to liquidate the
parent company or the group or to cease operations, or there is no realistic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Statements
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in
accordance with good auditing practice will always detect a material misstatement when it exists. Misstate-
ments can arise from fraud or error and are considered material if, individually or in the aggregate, they could
statements.
As part of an audit in accordance with good auditing practice, we exercise professional judgment and main-
•
provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for
one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override
of internal control.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the parent company’s or
the group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis
of accounting and based on the audit evidence obtained, whether a material uncertainty exists related to events or
If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related
based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may
cause the parent company or the group to cease to continue as a going concern.
•
true and fair view.
•
supervision and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
95
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From the matters communicated with those charged with governance, we determine those matters that were
audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
be communicated in our report because the adverse consequences of doing so would reasonably be expected
Other Reporting Requirements
Appointment
-
Other Information
The Board of Directors and the Managing Director are responsible for the other information. The other infor-
mation comprises the report of the Board of Directors and the information included in the Annual Report, but
the Board of Directors and Annual Report prior to the date of this auditor’s report.
With respect to the report of the Board of Directors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
In our opinion
•
• the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
If, based on the work we have performed on the other information that we obtained prior to the date of this
auditor’s report, we conclude that there is a material misstatement of this other information, we are required
to report that fact. We have nothing to report in this regard.
Other statements
should be adopted. The proposal by the Board of Directors regarding the result of the accounting period
is in compliance with the Companies Act. We support that the members of the Board of Directors and the
Managing Director of the parent company should be discharged from liability for the period audited by us.
Helsinki 17 February 2022
PricewaterhouseCoopers Oy
Authorised Public Accountants
96
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Financial information in 2022
Interim Report for January-March 2022
on April 22, 2022
Interim Report for January-June 2022
on July 14, 2022
Interim Report for January-September 2022
on October 14, 2022
97
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2021
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Name of reporting entity or other means of identification T eollisuuden V oima Oy j
Domicile of entity Finland
Legal form of entity Public Limited Compan y
Country of incorporation Finland
Address of entity's registered office T öölönkatu 4, 00100 Helsink i
Principal place of business Olkiluoto , 27160 Eur ajok i
Description of nature of entity's operations and principal activities Pr oduction of electricity with nuclear pow e r
Name of parent entity T eollisuuden V oima Oy j
Name of ultimate parent of group T eollisuuden V oima Oy j
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