REPORT OF THE
BOARD OF DIRECTORS
AND FINANCIAL
STATEMENTS
Contents
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Report of the Board of Directors of Teollisuuden Voima Oyj
Main events in 2022
The role of low-carbon energy, such as renewable
energy and nuclear power, is crucial in the mitigation
of climate change. In 2022, the share of nuclear
power was approximately 35 percent of all electricity
produced in Finland. During its over 50-year history,
Teollisuuden Voima Oyj (TVO) has produced more
than 550 terawatt hours (billion kilowatt hours) of
climate-friendly electricity in total.
The electricity generation at TVO’s Olkiluoto nuclear
power plant totalled 16.35 terawatt hours in 2022,
consumed and about 24 percent of all electricity
produced in Finland. The combined load factor of
the Olkiluoto 1 (OL1) and Olkiluoto 2 (OL2) plant
units was 93.0 percent. The Olkiluoto 3 (OL3) plant
unit’s load factor during test production was 16.9
percent. The consolidated turnover was EUR 358.2
(298.7) million.
Finland was produced at the Olkiluoto nuclear power
plant during all of 2022. The OL1 plant unit produced
6.9 (7.4) TWh of electricity, and its load factor was
89.1 (95.1) percent. The OL2 plant unit reached a
record production result, as electricity production
rose to 7.5 (7.0) TWh, and the load factor was 96.8
(90.4) percent. The OL3 plant unit was connected to
the national grid on 12 March 2022 and reached its
2022. During the test production in 2022, OL3
produced 1.9 TWh of electricity.
The OL1 plant unit underwent a maintenance
outage of 33 days, which was longer than usual, and
therefore had an impact on the amount of electricity
production. A refuelling outage lasting nine days
took place at the OL2 plant unit. The annual outages
were carried out successfully together with a broad
network of partners. Both plant units have been
modernised throughout their history, and annual
investments amounting to tens of millions of euros
continue to this day. An I&C modernisation project
part of the plant units’ reactor and operating I&C
will be updated. In addition to TVO’s own personnel,
approximately 490 external resources participated in
the refuelling outage and approximately 830 external
resources worked in the maintenance outage.
Around 190 specialists arrived from abroad for the
annual outages.
During 2022, the OL3 plant unit’s test production
gradually proceeded to tests at full reactor capacity.
OL3’s regular electricity production starts in March
2023.
ONKALO site during 2022. The excavation of the
in June. Civil works at the encapsulation plant were
completed at the end of May. Thereafter, work has
continued with different equipment and system
is to start in Olkiluoto in the mid-2020s.
At the end of the year, the total number of personnel in
the Group was 1,007 (984). The number of personnel
Oy was 90 (93). A total of 95 (71) new staff members
were recruited at the TVO Group during 2022.
Operating environment
During 2022, nuclear power was included in the
Commission’s proposal included technical screening
criteria for existing nuclear power plants as well as
new nuclear power plants. The application of the
taxonomy criteria enters into force on 1 January 2023.
plan after Russia’s attack on Ukraine. The plan aimed
at cutting the use of Russian natural gas by two
thirds by the end of 2022, as well as discontinuing
imports completely by 2027. As a result of the
attack, the prices of different energy sources rose.
measures, such as a revenue cap on so-called infra
-
marginal electricity production methods (including
nuclear power). The energy crisis is also leading to
changes in the EU’s electricity market rules – the
Commission’s aim is to accept a legislation proposal
The TVO Group closely follows the situation in
Ukraine and its impact on the Group’s operations. The
TVO Group condemns Russia’s attack on Ukraine.
During the accounting period, the Ukrainian situation
has not had an immediate or direct effect on the
Group’s operations or the production of electricity.
However, cost increases are being prepared for in
the TVO Group. Market interest rates have strongly
central banks.
The processing of the Commission’s Fit for 55
package, unveiled in July 2021, is nearing an end.
The objective of the package is to update the instru
-
ments of the EU’s energy and climate policies, so that
they correspond with the goal to cut the EU’s green
-
house gas emissions by 55 percent compared to the
plan, the Commission published updates to proposals
in the package, including an increase to the goal
suggested that the goal could also be reached by
using hydrogen produced with low-emission elec
-
tricity, including nuclear power.
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
In spring 2022, the International Energy Agency
Energy Transitions”, in which it examines the role of
nuclear power as a solution to climate and energy
crises. The report repeated the estimate in the IEA’s
“Net Zero 2050” report, in which nuclear energy
capacity needs to almost double from 400 GW
e
to 800
GW
e
by 2050 in order to achieve carbon neutrality.
The harmonisation of the nuclear industry has
progressed during the year. The International Atomic
Energy Agency (IAEA) started its Nuclear Harmoni
-
which aims at accelerating the safe and widescale
deployment of advanced reactor types, especially
partnership programme.
The construction of nuclear power is speeding up in
Europe. For example, France declared in February
2022 that it will build six new large reactors as of
2028, with an option to build eight more by 2050.
decided in its government programme to request
Vattenfall to analyse additional construction of
nuclear power.
In an energy attitude survey published by Finnish
Energy twice a year, the total support for nuclear power
was 83 percent in December 2022, as 65 percent of
Finns want to increase nuclear power and 18 percent
think that the current amount is suitable. The support
for nuclear power has risen in all citizen groups regard-
less of gender, municipality, age, or political views.
Finland is preparing for the parliamentary election in
spring 2023 and the work of the new government.
started by the current government will be carried out
TVO as a company
TVO is a non-listed public limited-liability company
owned by Finnish industrial and energy companies.
According to TVO’s Articles of Association, the
transmission system construction and acquisition
as well as in the generation, relay, and transfer of
electricity primarily to the Company’s shareholders
in accordance with the terms set in the Articles of
Association.
TVO operates on a cost-price principle (Mankala prin
-
ciple). The shareholders are charged incurred costs in
circumstances dictate otherwise. According to the
Articles of Association, the shareholders pay variable
costs based on the volumes of energy supplied and
-
less of whether they have made any use of their
share of the output or not. Due to the Company’s
performance will not be presented (see chapter: The
cost-price principle in the Notes to the consolidated
like TVO, operate based on the Mankala principle.
Electricity generated by TVO serves the needs of
numerous Finnish industry and energy companies,
some of which were owned by 131 Finnish munici
-
palities in 2022. TVO generates about 20 percent of
all electricity consumed in Finland.
TVO’s operations are founded on a strong safety
culture and securing the safety of production. TVO’s
activity-based management system covers produc
-
tion activities at the Olkiluoto nuclear power plant,
maintaining 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, occu
-
pational health and occupational safety standards,
Finland Oy Ab. The general part of the activity-based
management system also acts as the licensee’s
quality control system approved by the Radiation
activity-based management system is regularly moni
-
tored with internal audits and management reviews.
TVO’s corporate governance system is described in
a separate report. TVO’s principles of responsible
operating practices are described in the TVO Group’s
Code of Conduct (see chapter: Responsibility).
The objectives of TVO’s strategy include a strong
safety brand, the competitive and predictable price
goal is to maintain a competitive average electricity
production cost and to ensure that the operability of
culture is maintained at a high level, and safety is
systematically upheld and developed at all stages of
the nuclear power lifecycle.
Financial performance
The Group’s consolidated turnover for 2022 was EUR
358.2 (298.7) million.
The amount of electricity delivered to the shareholders
was 16,316 (14,414) GWh. The higher delivery
volume of electricity compared to the previous year is
due to the OL3 plant unit’s test production.
million. Updated cost estimates based on a new
nuclear waste management technical plan and
schedule and the changes of the provision regarding
the nuclear waste management obligation had an
chapter: Nuclear waste management).
Financing and liquidity
TVO’s liabilities (non-current and current) at the
end of the year, excluding the loan from the Finnish
shareholders, totalled EUR 5,727.1 (5,206.0) million,
of which EUR 929.3 (929.3) million were subordi
-
nated shareholder loans. During 2022, TVO raised a
total of EUR 1,050.0 (800.0) million in non-current
liabilities, of which none were subordinated share
-
holder loans (no subordinated shareholder loans).
Repayments during the year amounted to EUR 457.5
(566.5) million.
year bond with an annual coupon of 2.625 percent.
The bond was issued under the Company’s EMTN
programme. TVO also announced that it has made an
invitation to holders of its outstanding EUR 311.77
million Notes due in January 2023 to tender their Notes
for purchase by TVO for cash. The tender offer results
were announced on 31 March 2022. The aggregate
principal amount validly offered for purchase by the
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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noteholders was EUR 106.1 million. TVO accepted all
valid instructions pursuant to the tender offer.
In June 2022, TVO signed a new three-year revolving
credit facility of EUR 1,000 million. The facility includes
TVO’s existing revolving credit facility signed in February
2016 and will be used for general corporate purposes.
A one-year extension was made to TVO’s shareholder
loan commitment of EUR 400 million agreed upon in
December 2020, when TVO’s shareholders signed the
extension in November 2022. The extended share
-
holder loan commitment is valid until the end of 2023.
At the end of the year, TVO agreed on new bilateral
bank loans totalling EUR 300 million.
long-term credit rating BBB- for TVO and changed
the outlook from negative to stable. In March 2022,
outlook. According to both credit rating agencies, the
changes to the credit ratings are mainly due to the
start of the OL3 plant unit’s electricity production in
March 2022. Japan Credit Rating Agency (JCR) kept
its existing A+ rating (Negative Outlook).
TVO uses its right to borrow funds back from the
within the framework of legal regulations. On 31
December 2022, the amount of the loan was EUR
651.3 (711.3) million, and it has been relent to the
Company’s A series shareholders. On 31 March
Management Fund decreased by EUR 59.9 (31
March 2021: decreased by EUR 5.1) million.
capitalised in the balance sheet.
Share capital
TVO’s share capital on 31 December 2022 was EUR
600.4 (600.4) million.
The Company has 1,360,000,000 (1,360,000,000)
shares, of which 680,000,000 belong to the A series
and 680,000,000 to the B series. The A series shares
entitle to electricity generated at OL1 and OL2, and
the B series shares to the electricity generated at OL3.
Administrative principles
Because TVO is a non-listed public company
applying the cost-price principle, it observes the
Corporate Governance Code for listed companies
where applicable. TVO is not obligated to observe
the Corporate Governance Code nor therefore its
-
ment in its Annual Report or separately. TVO has
-
ment, which is published on the Company’s website
() at the same time
as this Report of the Board of Directors.
Administrative bodies
TVO’s administrative bodies and their operations in
2022 have been described in a separate Corporate
-
ny’s website .
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
them, such as Regulatory Guides on nuclear safety
to these, regulations applied to the use of nuclear
energy are included e.g. in the Radiation Act.
Work on the comprehensive reform of the Nuclear
Energy Act, initiated by the Ministry of Economic
Affairs and Employment (MEAE), has continued during
2022. The objective is that the production of nuclear
energy is in line with the overall good of society,
legislation draft is supposed to enter the consulta
-
tion phase during 2024, followed by a government
-
toral term, after which the new Nuclear Energy Act
would enter into force in 2028. TVO has participated
in the preparatory work of different working groups.
introduced at the OL1, OL2, and OL3 plant units.
The last updated guide (YVL E.6) will be introduced
during 2023.
regulations and guidelines, initiated in 2021, have
also continued during 2022. The aim is to lay down
the foundation and direction for the reform of regula
-
tions and guidelines, including the new YVL Guides.
TVO has participated in the preparatory work of
The Nuclear Liability Act concerns the liability the
operator of a nuclear power plant has in the event
of a nuclear incident. Amendments to the Nuclear
Liability Act entered into force with a Government
Decree as of the beginning of 2022. In the amend
-
in the Nuclear Liability Act) for a nuclear incident
outside of Finland 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 purposes other than
energy production and for the transport of nuclear
substances, the liability is EUR 80–250 million.
The amendment to the Nuclear Energy Act
concerning the investment activities of the Finnish
into force on 1 January 2022. With the amendment,
the amount of relending available to a party with a
nuclear waste management obligation was limited
to 60 percent, and the investment activities were
expanded to also include other asset classes than
Finnish government bonds.
The use of nuclear energy is subject to licence.
Applications for a decision-in-principle, construction
licence and operating licence, as well as a licence for
decommissioning a nuclear power plant, are made
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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monitoring the safety of nuclear energy use, and it
also supervises safety and emergency arrangements
and nuclear material safeguards.
Risk management, major risks and
uncertainties
RISK MANAGEMENT
The objective of risk management is to support the
realisation of TVO’s strategy and business objectives,
and to ensure that TVO’s operational 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
Group’s risk management policy. The Board of
that the company’s risk management is in line with
the TVO Group’s risk management policy. The
Group, is in charge of risk management in accordance
with TVO’s objectives and strategy. A Risk Manage
-
ment Group operates under the Management Group
and is in charge of ensuring adequate risk treatment
of risk management measures.
-
cation, analysis, and treatment of risks connected to
its operations, as well as the follow-up of measures.
strategic and operational planning and follow-up, and
also as part of project management.
RISK MANAGEMENT PROCESS
TVO has a Group-wide risk management process,
used to ensure that risks facing the Company’s
risk is treated according to its severity. The objec
-
tive of the risk management process is to manage
risks to an appropriate level set by the risk appetite.
Risks can be managed by reducing, avoiding,
sharing, moving, or accepting the realisation of
the risk. The acknowledged risks are gathered to
company-level risk registers, where all the risks
with each risk’s consequence and likelihood. The
Management Group, Audit and Finance Committee,
and the Board of Directors in accordance with the
annual management programme. Other risks are
reported to the necessary parties according to the
risk management process.
The comprehensive development of risk manage
-
ment is evaluated annually with a pre-set evaluation
form. The results from the evaluation are used to set
the goals for the development of risk management.
Risk management evaluation is performed with a
model based on risk maturity levels.
In 2022, TVO’s management and operational plan
-
ning process continued to increase the level and
effectiveness of risk management. Risk management
is a part of the Group’s strategy and, as such, it
is continuously being developed to help meet the
Group’s objectives within the Company’s risk appe
-
tite. During 2022, the role of risk management was
strengthened in operations through continuous
communication and collaboration, as well as empha-
sising the importance of risk management in project
management procedures. The risk management
process has also been updated during the year to
better support the Group’s needs. In 2022, a new
chapter on risk appetite was added to the risk
management policy.
MAJOR RISKS AND UNCERTAINTIES
Risks related to safety and electricity production
are reduced by keeping the plant units in good
and high-quality planning and implementation of the
annual outages.
Uranium, which is the fuel used for electricity
production, is procured from global markets. Risks
connected with nuclear fuel have been reduced by
procuring the fuel from a variety of suppliers and by
making long-term contracts.
In the OL3 project, risk management has primarily
been a question of overseeing and guiding the
of the turnkey contract and the settlement agree
-
ment, as well as enhancing TVO’s preparedness.
The focus of risk management has shifted to
operation phase.
Indemnity and property risks are covered with
insurances. The aim of insurance management is
to keep the scope, cover, and cost of insurance at
a reasonable level. TVO is a member of European
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
statements, Note 27: Financial risk management.
RISKS RELATED TO OL3 PLANT UNIT
Schedule and planned completion
TVO’s major risks are related to the schedule of the
-
capacity of the plant unit. Under the plant contract,
electricity production was scheduled to start at the
end of April 2009. The completion of the project,
however, has been delayed. OL3’s regular electricity
production will commence in March 2023.
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 2022, several risk management measures
related to the OL3 project have been executed to
improve TVO’s readiness to commission the plant unit
as well as to operate three nuclear power plant units.
TVO 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
If OL3 fails to reach the projected output level, load
factor, or operating cost structure, or if the output
level is restricted by Finland’s main grid or it is not
to TVO from the system protection, there is a risk
that the production cost will rise in comparison to the
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objective. This risk has been analysed with the help
capacity. The risk has also been analysed as regards
the related costs resulting to TVO.
TVO implements several risk management meas
-
Examples of risk management measures include the
utilisation of the experiences from the Flamanville
and Taishan sister plants during the nuclear
commissioning of OL3.
MAJOR PLANT MODIFICATIONS AND THEIR
IMPLEMENTATION
Increase of production costs and deterioration of
-
and assign responsibility for requirements related to
nuclear safety and to ensure that the project parties
meet these requirements in advance to avoid unex
-
pected costs during the project.
In risk assessment, increased project costs are viewed
to arise either from inadequate preparation and require
-
challenges in the execution of the licensing process, or
As risk management measures, TVO has in 2022
continued to prioritise projects and measures that are
most vital in view of the schedule and costs in order
to secure adequate resourcing for them. Furthermore,
TVO aims to ensure that project suppliers have the
readiness and interests to complete the projects they
are involved in, especially considering the effects of
the war in Ukraine.
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 atmosphere
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.
In order to maintain its capability to function as a
licensee, TVO has prepared for the operation phase
of OL3 and for future retirements by recruiting 87
new staff members in 2022 and by maintaining
a comprehensive supplier chain. TVO’s sick leave
percentage was 3.8 and the outgoing turnover rate
was 6.7 percent. To support supervisors’ leadership
on safety leadership has been organised.
Furthermore, TVO has also executed a competence
survey, the results of which are used for personnel
planning. OL3 trainings have continued during 2022.
TVO has undertaken measures to further develop its
work community culture and to strengthen its safety
culture. TVO conducts a personnel survey approxi
-
mately every 18 months, and the next survey is to be
conducted in the beginning of 2023.
FINANCIAL AND LIQUIDITY RISKS
liquidity, market, and credit risks. By diversifying
-
reorganising bilateral bank loans and issuing a new
bond. TVO has reduced market risks by making use
of interest rate and currency derivatives. According
-
nated in foreign currencies will be hedged to the euro
until the maturity date by using derivatives.
Financing costs are impacted by the changes in TVO’s
credit rating and outlooks as well as market changes
to interest rates and corporate loan margins. There is a
This risk has been analysed through various scenarios
based on the changes in the average interest rate and
margin of TVO’s loan portfolio. If the risk is realised,
the consequences include an increased cost of
sources in diverse ways. In addition to the interna
-
tional capital market, the Company also acquires
institutions. Credit ratings play a major role in capital
Financing is used to secure TVO’s liquidity under
all circumstances. For this purpose, the Company
various revolving credit facilities and liquid assets.
It is TVO’s basic principle to acquire about three
market and one quarter from its shareholders. TVO
separate projects.
TVO’s operations has remained strong also in 2022.
-
of a new bond, and the extension of the shareholder
loan commitment during the year.
INCREASE IN THE COST OF FINAL DISPOSAL OF
SPENT NUCLEAR FUEL
-
mented according to plan, project costs rise, or
the completion of the project is delayed, the cost
management liability of spent fuel.
As risk management measures in 2022, the cost
and commenced, and contracts for the production
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
the respect of human rights, as well as risks related
to corruption and bribery constitute one area of the
-
cant risks affecting the Company’s operations have
been detected in the aforementioned matters during
2022. 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 to the TVO Group’s Code of
Conduct. The internal auditor supervises the imple
-
mentation of the Code of Conduct in the Company’s
operations. The TVO Group has a whistleblower
channel in place, through which incidents perceived
to be against the Code of Conduct can be reported
also completely anonymously. The possible risks are
evaluated in projects and investments where neces
-
sary. Furthermore, the matters are evaluated when
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reviewing suppliers in accordance with
a separate supplier review procedure.
TVO’s principles and results of ethical
business are described in more detail in
the chapter on Responsibility.
Pending court cases and
disputes
In August 2022, the arbitral tribunal
resolved all the claims presented to each
other by TVO and Wärtsilä Finland Oy
concerning the delivery schedules, addi
-
tional costs, and delay liquidated damages
of the diesel generators at the Olkiluoto
nuclear power plant. Therefore, at the end
of the accounting period 2022, TVO has
no pending court cases or disputes.
Electricity production
The electricity production of OL1, OL2,
and OL3 in 2022 was 16,351 (14,438)
GWh, and the total load factor of OL1
and OL2 was 93.0 (92.8) percent.
The plant units operated safely. OL3
was connected to the national grid for
plant unit’s test production phase is
currently ongoing. OL1’s net production
was 6,932 (7,404) GWh and load
factor 89.1 (95.1) percent. OL2’s net
production was 7,532 (7,033) GWh and
load factor 96.8 (90.4) percent. A record
production result was reached at OL2.
OL3’s net production was 1,887 GWh
and load factor 16.9 percent.
Taulukko 1
Pvm
OL1
1.1.2022
899,5
2.1.2022
899,4
3.1.2022
899,2
4.1.2022
899,4
5.1.2022
899,3
6.1.2022
899,6
7.1.2022
899,4
8.1.2022
899,4
9.1.2022
899,4
10.1.2022
899,1
11.1.2022
899,1
12.1.2022
899,4
Pvm
January
1. Annual outage
2. Cold shutdown to remove damaged fuel
1
OL1 Production
Average output
MW
1,000
750
500
250
0
February
March
April
May
June
July
August
September
October
November
December
2
1
Taulukko 1
Pvm
OL2
1.1.2022
894,4
2.1.2022
894,8
3.1.2022
894,7
4.1.2022
894,5
5.1.2022
894,7
6.1.2022
894,6
7.1.2022
894,5
8.1.2022
894,3
9.1.2022
894,5
10.1.2022
894,4
11.1.2022
894,5
12.1.2022
894,3
Pvm
1. Annual outage
1
OL2 Production
Average output
MW
1,000
750
500
250
0
January
February
March
April
May
June
July
August
September
October
November
December
1
Taulukko 1
Pvm
OL3
1.1.2022
0,0
2.1.2022
0,0
3.1.2022
0,0
4.1.2022
0,0
5.1.2022
0,0
6.1.2022
0,0
7.1.2022
0,0
8.1.2022
0,0
9.1.2022
0,0
10.1.2022
0,0
11.1.2022
0,0
12.1.2022
0,0
Pvm
OL3 Production
Average output
MW
1,700
1,275
850
425
0
January
February
March
April
May
June
July
August
September
October
November
December
1. Generator and turbine island repair works
2. Automation updates at the turbine island
3. Turbine island maintenance outage
1
2
3
1
Generator and turbine
island repair works
Automation updates
at the turbine island
Turbine island
maintenance outage
Annual outage
Annual outage
Cold shutdown to remove damaged fuel
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OL3’s power output during the test production phase
is published on TVO’s website at
ol3forecast. An Urgent Market Message is published
SIGNIFICANT PLANT EVENTS AT OL1 AND OL2
As a result of the transfer of spent fuel on 22 October
2021 and the return of the empty transfer cask to
the OL1 plant unit on 8 November 2021, radioactive
particles ended up on the transfer cask’s transport
equipment, in the transport corridor of the spent fuel
storage non-radioactive controlled area, and two
particles on the transport route in the plant yard area.
-
tions was completed in spring 2022. The incident did
not result in radiation doses to people, and radiation
safety was not endangered. However, the incident
2022. Based on the related incident investigation,
-
neglect of inspection rounds, related registrations into
information systems, as well as non-interference into
measures have been carried out during 2022.
Indications of damaged fuel were detected at the OL1
plant unit at the end of June 2022. As a result, the
power level of the plant unit had to be reduced in July
fuel element, and thereafter an approximately
week-long maintenance was started to remove the
damaged fuel element and replace it with a new one.
Annual outages
The refuelling and maintenance outages carried out
at the plant units on alternating years are designed
to ensure that a good level of operability and produc
-
tion is maintained at the Olkiluoto nuclear power
plant at all times.
The annual outages in 2022 of the OL1 and OL2
plant units started on 24 April with the refuelling
outage at the OL2 plant unit. In addition to refuel
-
ling, various annual preventive maintenance activi-
ties, inspections, repairs, and tests were carried out
at OL2. The plant unit continued electricity produc
-
tion on 3 May.
A maintenance outage was carried out at the OL1
plant unit, which started on 8 May and ended on
-
cant tasks of the maintenance outage included the
replacement of pumps and valves in the shutdown
cooling system, inspection of the reactor pressure
vessel’s bottom, renewal of electrical bushing
assemblies in the containment, maintenance acti-
vities in the service water channel and concreting
one of the service water channels, replacement of
impellers in feedwater pumps, installation of a new
recirculation line, and a pressure test of the reactor
containment.
The annual outages were carried out successfully
despite special arrangements due to COVID-19.
The aim of the extensive special arrangements and
measures was to prevent the spread of potential
COVID-19 infections in Olkiluoto, ensure the health
and safety of the persons involved in the annual
outages, as well as guarantee a safe and high-quality
annual outage.
Two accidents at work resulting in absence occurred
during the annual outages.
In addition to TVO’s own personnel, approximately
490 external resources participated in the refuelling
outage and approximately 830 external resources
worked in the maintenance outage. Around 190
specialists arrived from abroad for the annual outages.
Olkiluoto 3 EPR
OL3, currently under the test production phase, was
and several liability for the contractual obligations.
In March 2018, TVO signed a comprehensive Global
-
tion of the OL3 project and related disputes with
amended with agreements signed in June 2021.
committed to ensuring that the funds dedicated to
the completion of the OL3 project will be adequate
and will cover all applicable guarantee periods,
including setting up a trust mechanism funded by
costs for completing the OL3 project. During the
accounting period, the fund, which was previously
replenished by Areva in July 2021, has been used to
cover costs incurred to the Areva companies for the
completion of the OL3 project in accordance with
additional delay compensation accumulated by the
end of the accounting period in accordance with the
amended settlement agreement.
2023. In addition, the payment of approximately EUR
193 million of the delay compensation agreed upon
-
tion of OL3, up to 31 March 2023 at the latest.
schedule, TVO’s current cost estimate, and the
investment in the OL3 project will be approximately
EUR 5.8 billion.
-
er’s workforce at OL3 was approximately 900
people. The occupational 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.
SIGNIFICANT EVENTS AT OL3
On 12 March 2022, OL3 was connected to the
national grid and electricity production started. The
electricity power level was gradually increased to
approximately 850 megawatts, until the production
tests were interrupted on 26 April 2022 due to the
-
ously, a leak in the generator’s cooling system was
observed. Foreign material detached from the steam
guide plates was found in the turbine’s steam reheater
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in May 2022, which required repair work. The work
was completed on 8 August 2022. TVO communi
-
cated on 11 August 2022 that a turbine automation
update of approximately two weeks would be carried
out. The test production continued on 28 August
2022 with tests at a 60 percent power level.
increase OL3’s power level to over 60 percent and
the production tests and investigations conducted
so far showed that OL3 has worked safely, and
that increasing the plant unit’s power level can be
continued. Tests at an 80 percent power level were
approximately 1,600 megawatts, were started on 30
on 18 October 2022 due to damage detected in
the internals of the feedwater pumps at the turbine
island. Test production was continued on 27
December 2022 after investigations into the damage
were mainly completed.
agreements.
Nuclear fuel
In 2022, nuclear fuel purchases amounted to EUR
60.8 (61.8) million and the amount consumed to EUR
69.7 (61.4) million.
The nuclear fuel and uranium stock carrying value on
31 December 2022 was EUR 262.4 (265.9) million.
Once the OL3 plant unit proceeds to commercial
operation, approximately EUR 250 million will be
transferred from the OL3 investment to the value of
the nuclear fuel and uranium stock.
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.
-
ment show a provision related to nuclear waste
management liability of EUR 1,294.3 (1,368.3)
accounting principles. TVO’s share in the Finnish
(1,010.1) million, is presented under assets, calcu
-
lated according to the IFRIC 5 interpretation. The
total cost estimate based on a new nuclear waste
management technical plan and schedule has been
updated in June 2022.
The cost estimate of nuclear waste management for
-
ment scheme for 2022–2024, the preliminary nuclear
waste management scheme for 2025–2026, as
well as total costs for 2027–2028 were submitted
to the MEAE at the end of June. The amount of the
nuclear waste management fee to be collected from
a company liable for nuclear waste management is
based on the nuclear waste management scheme.
In order to cover the future costs of nuclear waste
management, TVO makes contributions to the Finnish
dance with the Nuclear Energy Act. In December
2022, the MEAE set TVO’s liability for nuclear waste
management at EUR 1,839.6 (1,816.1) million for the
end of 2022 and the Company’s funding target for
2023 at EUR 1,457.9 (1,436.1) million.
management fee refund for 2020 at EUR 28.7 million,
which the Fund reimbursed to TVO on 31 March
2021. As for 2021, no surplus was reimbursed to
TVO from the Nuclear Waste Management Fund
after the amendment to the Nuclear Energy Act
waste management in 2022 was lower than the share
in the Fund in 2021. The refund for 2021, EUR 14.5
million, was used to cover the protected portion in
In accordance with the implementing provision of the
was not used to refund TVO’s nuclear waste manage
-
ment fee, but it was also used to cover the protected
portion. In order to supplement the legal protected
portion, TVO provided the Nuclear Waste Manage
-
ment Fund with a separate cash security of EUR 7.4
the Nuclear Waste Management Fund started invest
-
ment activities in accordance with new legislation.
The Nuclear Waste Management Fund made a loss,
which raised TVO’s nuclear waste management fee
for 2022, as well as required the Company to provide
additional securities to cover the legal protected
portion. The nuclear waste management fee for 2022
A total of approximately 8,400 (8,165) m
3
of low and
medium level radioactive waste has accumulated
from the OL1 and OL2 plant units during their ope-
for low and medium level waste (VLJ repository) in
Olkiluoto.
The total amount of spent nuclear fuel by the end of
the year was 1,661 (1,630) tonnes, of which 32 (33)
tonnes accumulated in 2022. The spent fuel is stored
in the fuel pools of the plant units and in an interim
FINAL DISPOSAL OF SPENT NUCLEAR FUEL
spent nuclear fuel generated at the power plants of
Heat Oy (Fortum) in Loviisa.
building phase of the encapsulation plant and the
ongoing EKA project entails the implementation of
the encapsulation plant as a whole, the additional
the installation of the systems needed for the start
setting up the supply chains necessary for produc
-
tion operations.
-
cation was submitted to the Finnish Government in
December 2021, and its processing has advanced
according to plan. In 2022, the construction of the
nuclear facilities proceeded to the installation and
commissioning phase, and operations at the encap
-
sulation plant are in accordance with its practices.
completion of the encapsulation plant’s construction
work ready for installations, as well as the completion
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in June at a depth of 430 metres. The underground
installations of civil and building technology also
progressed well and on schedule.
The manufacture of the encapsulation plant’s central
systems is under way. In 2022, installations included
the handling cell’s drying station and the canister’s
welding station. A disposal hole drilling rig has been
fuel element copies) planned for the end of 2023 was
postponed by six months.
The preparation of supply chains for the canister
and bentonite components needed in production
activities progressed. The equipment installations of
were completed, and more supplier options were
sought for the canister components. The operators of
-
tory were also recruited during 2022.
nuclear waste management for 2021 to the MEAE
at the end of March 2022. In June 2022, the nuclear
waste management scheme for 2022–2026 was
submitted to the MEAE, which contains an estimate
provision.
Research and development
The main objective of TVO’s research and develop-
ment (R&D) activities is to ensure the viability of
the existing business functions and to create new
business opportunities for the TVO Group. The TVO
Group’s R&D activities were reorganised during
2022. The objective of the reorganisation is to
create a clear process and basic principles for R&D
activities, so that they more clearly serve the needs
emerging from within the Group.
The main subject areas of R&D activities include the
operation and lifecycle management of nuclear power
waste and spent nuclear fuel, and the creation of
new business opportunities for the TVO Group.
R&D costs were EUR 10.3 (11.5) million, most of
which were used for R&D activities related to nuclear
waste management.
research programmes for reactor safety and nuclear
waste management. In 2022, TVO’s contribution to
5.4 (5.1) million.
Acquisitions of tangible and intangible
assets and shares
Investments in 2022 were EUR 311.8 (578.1) million.
In 2021, the current value of the provision related to
the OL3 plant unit’s decommissioning, a total of EUR
367.9 million, was recorded as an investment in the
balance sheet.
Investments of the parent company were EUR 339.0
(219.6) million, of which EUR 276.0 (163.6) million
were allocated to the OL3 project, and EUR 63.0
(56.0) million were allocated to the OL1 and OL2
plant units and the general infrastructure of the
area. The OL3 investment is decreased by the delay
compensation and additional delay compensation in
-
sation has been recorded as EUR 56.7 million for the
accounting period.
Hitachi Energy and TVO have signed a contract in
2021 about delivering one of Europe’s largest battery
energy storage systems to Olkiluoto. The 90-mega
-
watt system will support the entire energy network
in a potential production disturbance of the OL3 plant
on the grid as part of Fingrid’s system protection. The
battery energy storage system is in the deployment
Carbon dioxide emission allowances have been relin
-
quished to the Energy Authority worth EUR 0.1 (0.1)
million. In 2022, emission allowances were acquired
worth EUR 0.1 (0.2) million. The Company’s need for
carbon dioxide emission allowances for the accounting
period was covered by acquired emission allowances.
Responsibility
Responsibility is one of TVO’s values. The TVO
environment, people, and the economy through
a materiality analysis updated during 2022. The
material impacts include:
1.
2.
competence
3. Transparent and ethical business
4. Responsibility in the supply chains and partnerships
5. Creation of added economic value
6. The support and development of employees’
competence
7. Healthy and equal work community
8. Biodiversity and sustainable land use
9. Minimising releases into the air, water, and soil
10.
The TVO Group and its entire personnel are committed
to a high-standard safety culture (see chapter: Safety).
The Group-level policies, approved by the Manage
-
ment Group, outline key objectives related to respon-
sible operations. Group-level policies include:
»
Nuclear safety and quality policy (nuclear safety, radiation
protection, nuclear material safeguards, and quality)
»
Corporate social responsibility policy (environment and
safety, and communications)
»
well as increasing the production capacity)
»
Corporate safety policy (safety of production and
activities as well as the safety of people and facilities,
rescue and emergency activities, and data security).
The principles of responsible business operations
are described in the TVO Group’s Code of Conduct,
which is approved by the Company’s Board of
Directors and applies to the entire personnel as
well as all partners and subcontractors. The Code
of Conduct includes separate parts for the Group’s
personnel as well as partners and subcontractors.
The TVO Group’s Code of Conduct complies with
OECD’s Guidelines for Multinational Enterprises.
TVO considers any non-compliance with its Code
of Conduct unacceptable. The Code of Conduct
is published on TVO’s website at
code-of-conduct.
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The TVO Group is committed to promoting the
-
ment Goals in its operations:
NUCLEAR PROFESSIONALISM
The development of management principles and
working policies in a nuclear power plant has been
in other words expectations for working in a nuclear
expectations. The expectations for a nuclear profes
-
sional are a part of TVO’s activity-based manage-
ment system.
During 2022, measures aimed at developing
nuclear professionalism were continued. A training
programme for safety management (Nuclear
was expanded with in-depth sections in 2022. In
with coaching discussions that particularly aimed at
reinforcing the consideration of human and organisa
-
tional factors in the conversations that take place in
management was developed further by clarifying
supervisor level roles and describing the essential
cross-organisational processes in more detail. The
-
oping nuclear professionalism and thinking of ways
in which human factors could be taken into consider
-
ation even better in everyday life.
RESULTS OF ETHICAL BUSINESS
TVO does not tolerate any kind of corruption or
bribery. The Code of Conduct requires employees to
refrain from transactions and retreat from situations
of the Company and the individual. The Company
maintains a register on the engagements of speci
-
regarding hospitality practices, related party trans
-
actions, and the processing of insider information,
as well as compliance principles and procedure
accepted by the Board of Directors. Detailed instruc
-
tions are available regarding the approval procedure
of TVO’s commitments (procurement agreements,
orders, invoices, etc.).
TVO respects the human rights of all people affected
by the Company’s operations and expects the same
from all companies acting in its supply and subcon
-
tracting chains. TVO’s objective is to guarantee good
working conditions for all employees. In accordance
with its Code of Conduct, TVO does not condone any
kind of discrimination or harassment on the grounds
of age, gender, ethnic origin, religion, beliefs, opin
-
ions, or other personal characteristics. TVO observes
an equality plan.
All personnel, partner, and subcontractor activities
in Olkiluoto are supervised by TVO. TVO only trades
with evaluated and approved suppliers. All products
and services acquired must meet the require
-
ments of TVO’s safety, quality, and environmental
standards as well as the principles of responsible
business described in the Code of Conduct. TVO’s
supplier review process also includes active
monitoring and periodical reviewing of suppliers.
Through supplier reviews, the Company ensures
that suppliers follow good practices related to
environmental, personnel, and quality management
issues. During 2022, 111 suppliers were reviewed
by using various methods.
TVO has a procedure for reporting suspected viola
-
tions of the Code of Conduct and abuses of insider
-
mously. TVO’s internal audit processes all concerns
regarding possible violations against the Code of
Conduct or abuses of insider information in such a
Reputation index > 75 82
category
69.8/A+ 68.7/A
Reports suspecting violations of
the Company’s Code of Conduct
- 6
- 3.8
Occupational accident
frequency
1.6 4.8
Collective radiation dose,
992 789
Number of environmental
incidents, pcs
0 0
Unplanned energy unavailability
< 0.6 1.0
Number of unplanned automatic
scrams, pcs
0 1
Reputation index: The TVO Group stakeholder survey, average
of respondent groups 0–100; under 50=Weak, 50–62=Moderate,
62–70=Good, over 70=Excellent. The survey is conducted 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
subcontractors.
Collective radiation dose: World Association of Nuclear Operators
Goal: the best quarter.
Environmental incidents:
Unplanned energy unavailability factor:
TVO reports on its corporate responsibility in
accordance with the Global Reporting Initiative (GRI)
published on the Company’s webpage
. TVO’s sustainability reporting
has been subjected to a limited audit by an external
party. The information in the Environmental Report,
external party.
RESPONSIBILITY OBJECTIVES AND RESULTS
The responsibility objectives are based on the
principle of continuous improvement. The objectives
enable the Company to monitor the realisation of
material responsibility issues. The TVO Group’s
broader sustainability objectives are reported in
-
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manner that the rights and the privacy of both the
person raising the concern and the alleged violator
are protected under all circumstances.
possible violations against the TVO Group’s Code
of Conduct in 2022 and implemented necessary
audit reports to the Audit and and Finance
Committee and the Board of Directors.
organisation, and personnel. The overall level of
safety is good.
The state of the safety culture is regularly assessed
according to the International Atomic Energy Agency
(IAEA) procedure. TVO’s safety culture is estimated
to be at a level at which the strategic importance of
safety has been recognised and preventative prac
-
tices are observed. TVO aims at reaching the highest
possible level of safety culture. TVO has continued
to employ various measures to maintain and 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 unavailability factor, and unplanned auto
-
matic scrams realisation are described in the table
“Responsibility objectives and results” (see chapter:
Responsibility).
The Olkiluoto nuclear power plant units, OL1, OL2,
and OL3, operated safely throughout the year. TVO
with safety effects). TVO investigates all events with
-
tive measures for their causes. TVO publishes infor-
in the News section of the Company’s website.
Occupational health and safety activities are guided
construction operations at the OL3 site in the areas
where TVO is responsible.
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
responsibilities of the line organisation, supporting
supervisors in their work, strengthening contractor
cooperation, and developing the processes for
identifying hazards and managing risks so that they
include psychosocial risk factors. During 2022, a
foundation and steps for progress were created for
the long-term development of occupational safety
with an occupational safety development programme.
The TVO Group’s goal for accident frequency in
2022 was 1.6 (accidents per million work hours).
Two occupational accidents resulting in absence
occurred during the annual outages. The goal for
accident frequency was not achieved since the
accident frequency in Olkiluoto was 4.8 in 2022.
working in Olkiluoto are included in the accident
frequency calculation, excluding the OL3 site,
which is reported by the plant supplier consortium
THE ENVIRONMENT
TVO is committed to observing the principles of
sustainable development, and environmental respon
-
sibility is a part of the Company’s management
management systems meet the requirements of
improvement and raising the level of environmental
protection. TVO’s system is also Eco-Management
TVO recognises the environmental and energy
aspects of its operations and works to minimise
their negative impacts at all stages of the electricity
production chain. Risks related to the environment
Through risk management, the Company aims to
foresee possible divergent situations and to mitigate
their negative consequences on the environment.
TVO constantly monitors the environmental impacts
of its operations.
The Company’s operations met the requirements set
in legislation, environmental permits, and the envi
-
ronmental management system in 2022. The most
nuclear power plant are the production of climate-
friendly electricity and the local warming of the sea
water near the plant. During the reporting period, the
electricity production of the Olkiluoto nuclear power
plant was 16.35 TWh. The amount of cooling water
increased in 2022 due to the commissioning of OL3,
but 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
2022. A report was provided to the environmental
authority regarding malfunctions at the debris
handling building for the OL1 and OL2 plant units.
the Code of Conduct
to corruption, bribery, extortion,
inappropriate behaviour)
6 6
Others
(not related to the Code of Conduct) 0 0
SAFETY AND OCCUPATIONAL 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
supervision. TVO’s activity-based management
standard. In order to ensure safe operation, TVO
systematically assesses the level of safety and safety
culture, and all TVO employees are committed to a
high-quality safety culture.
TVO regularly assesses the state of its overall safety
from the viewpoints of production, nuclear safety,
safety and service life management, leadership,
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handling building during spring 2023. Radioactive
emissions into the air and water were clearly below
annual regulatory limits.
Low levels of tritium were observed in water and air
samples taken from the VLJ repository in May 2022.
The tritium amounts detected in the repository were
low and estimated to be comparable to the amount
of background radiation in nature.
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
goals for the Company’s operations. The programme
is regularly monitored by a team of environmental
experts from various organisational units. TVO is also
-
ny’s total energy savings target for the agreement
period 2017–2025 is 150 GWh. The target was
already reached in 2019. Therefore, an additional
target of 500 MWh was set for 2022–2023.
In 2022, the Olkiluoto water management security
project for securing the supply of raw water and
building a transfer sewer for wastewater progressed
according to plan. At the end of the year, extension
work of the district heating network was started.
to the environment, as well as the results of the
reported in further detail in the Environmental Report
published separately. The information has been
GROUP PERSONNEL AND TRAINING
Personnel
The TVO Group’s Code of Conduct and policies lay
down the principles of the personnel policy. TVO
aims to provide a healthy, equal work community that
promotes equality and does not condone any form of
discrimination.
At the year-end, the total number of personnel in the
Group was 1,007 (984), and the average during the
year was 1,031 (1,004). The year-end total number of
personnel in TVO was 1,005 (982), and the average
during the year was 1,029 (1,002). The year-end total
for TVO’s permanent personnel was 984 (963).
TVO recruited 87 (70) employees in 2022. During
the year, 66 (61) permanent employees left the
Company, including 16 (5) who retired. TVO’s sick
leave percentage was 3.8 (2.4).
Veli-Pekka Nurmi
Mikko Lampinen was appointed as
Sami
Jakonen, was appointed as a Corporate Advisor
with responsibility for the Company’s separate
technical projects.
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 2023.
100 percent of TVO employees are working under
collective agreement.
The TVO Group continued preparations for possible
COVID-19 infections during the year, and the spread
of the virus was prevented through several measures
on the Olkiluoto island. The effectiveness of the
measures was deemed successful, since COVID-19
transmission chains were avoided in Olkiluoto. The
restrictions were lifted during the summer, and
national and regional instructions are followed in the
COVID-19 guidelines.
A personnel survey is carried out in the Group
approximately every 18 months. The results of the
received in November 2021. The response rate was
represents the overall result, was 68.7 (2020: 66.0).
The result clearly increased from the previous survey,
although the rating remained in category A (satisfac
-
tory). The next personnel survey will be conducted in
the beginning of 2023.
monitored in navigation discussions held three times
instructed in the general and professional induction
training of new employees before new recruits begin
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
preconditions 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 2022, one of the themes of the
programme has been working together, which has
included building the Group’s guidelines for a new
model of working, increasing collaboration between
the different organisational units, and involving the
personnel in the strategy process. Another theme has
been smooth everyday work, which included exami-
ning the key decision-making forums, considering
culture, as well as the use of new digital tools as part
of a new way of working.
The focus of occupational health care has continued
to be on preventative occupational health care,
which supports the employee’s health, work and
functioning abilities, as well as their maintenance and
development.
The human resource issues and indicators for 2022
can be found in more detail in the Annual and
An annual training programme is implemented in
the TVO Group as a tool for personnel develop
-
ment and the planning of trainings. The annual
training programme includes trainings organised
by the Group which are planned to be implemented
during the next calendar year. The annual training
programme is drawn up to correspond with the
strategic focus areas and goals for operations deter
-
mined by the Group’s management.
The basic, continuing, and further training of the TVO
Group employees was implemented according to the
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annual training programme as in previous years. The
personnel were trained for a total of 11,680 (10,608)
days, on average 11.6 (10.8) days per each TVO
In 2022, OL1, OL2, and OL3 operators attended
operational training days and advanced simulator
courses in the spring and in the autumn according to
their training programme. OL3 operators worked in
shifts in the combined operating organisation of the
-
tion and monitoring tasks.
initiated in 2021 to develop supervisor skills, was
continued. The aim of the programme is to prepare
supervisors for their tasks within the nuclear industry
in more comprehensive ways than before.
Cooperation with educational institutions was
deepened with several actors. The goal is to create
even closer ties between the Company and students
and to offer students diverse thesis opportunities and
trainee positions.
TVO participated in the implementation of a national
nuclear safety and waste management training course
together with other major operators in the industry.
power plants, TVO also participated in the Nordic
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.
Key issues and indicators for 2022 related to compe
-
tence management are reported in more detail in the
EU TAXONOMY REPORTING
its delegated acts formulate a robust and science-
based framework for companies and investors that
provides environmental criteria for determining which
-
mentally sustainable in the EU. The aim is to make
it easier and more uniform to identify sustainable
investment targets and direct investments to these
»
climate change mitigation
»
climate change adaptation
»
the sustainable use and protection of water and marine
resources
»
the transition to a circular economy
»
pollution prevention and control
»
the protection and restoration of biodiversity and ecosystems.
To qualify as environmentally sustainable, compa-
nies need to ensure that their economic activities
substantially contribute to one of the environmental
harm to any of the other (technical screening criteria).
To be aligned, companies also need to run their
operations according to a set of minimum safeguards
aimed to ensure companies follow the most impor
-
tant human rights related principles.
The technical screening criteria are currently
available for two objectives: climate change miti
-
by including technical screening criteria for certain
activities related to nuclear energy production.
Nuclear energy and activities related to nuclear
energy are low-carbon activities that can substan
-
tially contribute to climate change mitigation. Nuclear
energy generation has near to zero greenhouse
gas emissions in the energy generation phase. In
the EU Taxonomy, nuclear energy related economic
activities. Nuclear energy facilitates the deployment
of renewable energy sources and does not hamper
the development of low carbon alternatives.
-
-
tion on how and to what extent their activities asso-
ciate with economic activities that qualify as environ-
mentally sustainable. TVO is in the scope of the NFRD
related to the production of nuclear energy. TVO is
related to its eligible and aligned activities.
Nuclear and fossil gas related activities as required by
the Disclosures Delegated Act Article 8 (6–8)
1. The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes
with minimal waste from the fuel cycle. NO
2. The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production, as well as their safety upgrades, using best available technologies. YES
3. The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations
that produce electricity or process heat, including for the purposes of district heating or industrial
processes such as hydrogen production from nuclear energy, as well as their safety upgrades. YES
4. The undertaking carries out, funds or has exposures to construction or operation of electricity generation
facilities that produce electricity using fossil gaseous fuels. NO
5. The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
NO
6. The undertaking carries out, funds or has exposures to construction, refurbishment and operation of
NO
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
TVO’s EU Taxonomy disclosure was prepared in
accordance with the EU Taxonomy Regulation
screening criteria in the consolidated Climate Dele
-
gated Act of 1 January 2023 (Commission Delegated
requirements in the consolidated Disclosures Dele
-
gated Act of 1 January 2023 (Commission Delegated
calculation methods
The TVO Group reports the proportion of the taxo-
nomy-eligible, non-eligible and taxonomy-aligned
economic activities in relation to the following key
-
forms using the mandatory templates.
on the same data and accounting principles as the
statements).
Group are prepared in accordance with the Inter
-
ensured that no double accounting has occurred.
-
Delegated Act.
The TVO Group examined its business operations
associated with the Olkiluoto nuclear power plant
units, OL1, OL2, and OL3, for taxonomy eligibility.
The relevant and taxonomy-eligible economic activi
-
»
the electricity production in OL1, OL2, and OL3
»
including investments
»
including investments.
correspond to the economic activities in the consoli
-
dated Climate Delegated Act (Commission Delegated
done by comparing the operations and activities to
the descriptions of the economic activities listed in
the Annex I and Annex II in the Climate Delegated
Act and to the related NACE codes. All of the TVO
Group’s nuclear-related operations fall under the
climate change mitigation objective.
The TVO Group’s taxonomy-eligible activities are the
OL3 and the electricity production and plant modi
-
OL3 fall under taxonomy activity 4.27: Construction
and safe operation of new nuclear power plants, for
the generation of electricity or heat, including for
hydrogen production, using best-available techno-
logies, while operations at OL1 and OL2 fall under
taxonomy activity 4.28: Electricity generation from
nuclear energy in existing installations. All activities
-
tion Article 10 (2).
The TVO Group assessed how the activities at OL1,
OL2, and OL3 comply with the relevant technical
screening criteria for contributing substantially
to the climate change mitigation objective and
avoiding harm to the other environmental objec
-
tives. The screening criteria for nuclear and gas
activities include a considerable amount of legal
compliance both at the operational and national
level, and operational compliance with certain
guidelines and standards. Operational compliance
was determined by checking that all relevant docu
-
mentation was available and included the required
in dialogue with the Ministry of Economic Affairs
and Employment.
TVO’s activities on water quality and temperature
are monitored and are well below allowed thresh
-
olds. TVO also monitors other aspects of environ-
of raw materials, emissions to air, water and soil, and
waste management. Details on how TVO manages
environmental impacts can be found in the Envi
-
physical risks to activities at OL1, OL2, and OL3
-
management is described further in TVO’s Annual
An important aspect of compliance with the
screening criteria is radioactive waste management
and disposal, including availability of approved
nuclear waste facilities that can manage low-level
waste already now and high-level radioactive waste
latest by 2050. Final disposal of TVO’s spent nuclear
-
active waste management and disposal can be found
in the chapter: Nuclear waste management.
For nuclear energy activities, there is a requirement
that the lifecycle greenhouse gas (GHG) emissions
from the energy production facilities are below 100
gCO
2
emissions from operations at all three plant units fall
well below this threshold. In a transitional phase,
TVO used existing lifecycle assessments (LCA) on
nuclear power plants for estimating its lifecycle GHG
emissions level. The lifecycle GHG emissions at
OL1 and OL2 were estimated to be 4–5 gCO
2
based on an existing LCA analysis of the sister units
operated by Vattenfall (Forsmark 1 and 2 plant units
where emissions are 4.1 gCO
2
GHG emissions at OL3 was estimated to be 4–4.5
gCO
2
First, a lifecycle GHG emissions analysis carried out
of the LCA is 4 gCO
2
study by the European Commission’s Joint Research
Centre that estimated lifecycle GHG emissions for a
the centrifuge enrichment process, to be at 4.25
gCO
2
stated that the lifecycle GHG emissions from nuclear
electricity generation are comfortably within the 100
gCO
2
TVO will verify the alignment by assessing its own
lifecycle GHG emissions level during 2023, and will
use the result in the next EU Taxonomy disclosures
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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Based on these assumptions, 98.7 percent of the TVO
Group’s consolidated turnover is taxonomy-aligned
and 100 percent of the taxonomy-relevant CapEx and
OpEx is taxonomy-aligned. The operations at OL1
and OL2 constitute 96.8 percent of the aligned turn
-
over, 23.4 percent of aligned CapEx, and all aligned
OpEx. Operations at OL3 constitute 1.9 percent of
ongoing operational development of OL3.
The taxonomy-aligned turnover consists of the sales
of electricity to shareholders. Non-taxonomy-aligned
perty, plant and equipment, intangible assets, and
right-of-use assets. More detailed information on
capital expenditure can be found in Note 13: Property,
plant and equipment and Note 14: Intangible assets.
which are necessary to ensure the continued and
effective functioning of property, plant and equipment.
These expenses include costs related to research and
development, repairs and maintenance, and nuclear
waste management, as well as all other costs which
are related to day-to-day servicing and maintenance
of property, plant and equipment and which are
necessary to ensure continued and effective activities
by the Company or outsourced to a third party.
In the table below, are the proportions of aligned and
non-eligible activities of the TVO Group’s turnover,
Key performance indicators.
Turnover 358,208 99% 1%
Operating expenditure 122,928 100% 0%
Capital expenditure 311,840 100% 0%
The OpEx numerator includes maintenance costs,
management.
All activities are related to the climate change mitiga
-
tion objective, and there is no eligible but not aligned
activities recorded within the activities 4.27 and
4.28. All applicable CapEx and OpEx for calculations
are taxonomy-aligned, for turnover the non-eligible
proportion is 1 percent.
TVO is committed to respecting internationally
recognised human rights and principles and rights
at work, in particular the International Bill of Human
-
ness and Human Rights, in addition to the OECD
Guidelines for Multinational Enterprises and the
ensures its compliance with the minimum safeguards
as required in Article 18 of the Taxonomy Regulation
through the Group-level policies and compliance with
national labour legislation.
Taxonomy-aligned economic activities for the turnover KPI (denominator)
1. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
2. Amount and proportion of taxonomy-aligned economic
6,658,979 2% 6,658,979 2% 0 0%
3. Amount and proportion of taxonomy-aligned economic
346,790,909 97% 346,790,909 97% 0 0%
4. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
5. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
6. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
7. Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above
0 0% 0 0% 0 0%
8.
358,208,243 99% 358,208,243 99% 0 0%
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Taxonomy-aligned economic activities for the CapEx KPI (denominator)
1. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
2. Amount and proportion of taxonomy-aligned economic
244,342,727 78% 244,342,727 78% 0 0%
3. Amount and proportion of taxonomy-aligned economic
67,497,510 22% 67,497,510 22% 0 0%
4. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
5. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
6. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
7. Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above
0 0% 0 0% 0 0%
8.
311,840,237 100% 311,840,237 100% 0 0%
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Taxonomy-aligned economic activities for the OpEx KPI (denominator)
1. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
2. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
3. Amount and proportion of taxonomy-aligned economic
122,927,947 100% 122,927,947 100% 0 0%
4. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
5. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
6. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
7. Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above
0 0% 0 0% 0 0%
8.
122,927,947 100% 122,927,947 100% 0 0%
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Taxonomy-aligned economic activities for the turnover KPI (numerator)
1. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
2. Amount and proportion of taxonomy-aligned economic
6,658,979 2% 6,658,979 2% 0 0%
3. Amount and proportion of taxonomy-aligned economic
346,790,909 98% 346,790,909 98% 0 0%
4. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
5. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
6. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
7. Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above
0 0% 0 0% 0 0%
8. Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the applicable
353,449,887 100% 353,449,887 100% 0 0%
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Taxonomy-aligned economic activities for the CapEx KPI (numerator)
1. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
2. Amount and proportion of taxonomy-aligned economic
244,342,727 78% 244,342,727 78% 0 0%
3. Amount and proportion of taxonomy-aligned economic
67,497,510 22% 67,497,510 22% 0 0%
4. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
5. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
6. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
7. Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above
0 0% 0 0% 0 0%
8. Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the applicable
311,840,237 100% 311,840,237 0% 0 0%
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Taxonomy-aligned economic activities for the OpEx KPI (numerator)
1. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
2. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
3. Amount and proportion of taxonomy-aligned economic
122,927,947 100% 122,927,947 100% 0 0%
4. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
5. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
6. Amount and proportion of taxonomy-aligned economic
0 0% 0 0% 0 0%
7. Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above
0 0% 0 0% 0 0%
8. Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the applicable
122,927,947 100% 122,927,947 100% 0 0%
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Taxonomy non-eligible economic activities
1. Amount and proportion of economic activity referred to in row 1 of Template 1 that
0 0%
2. Amount and proportion of economic activity referred to in row 2 of Template 1 that
0 0%
3. Amount and proportion of economic activity referred to in row 3 of Template 1 that
0 0%
4. Amount and proportion of economic activity referred to in row 4 of Template 1 that
0 0%
5. Amount and proportion of economic activity referred to in row 5 of Template 1 that
0 0%
6. Amount and proportion of economic activity referred to in row 6 of Template 1 that
0 0%
7. Amount and proportion of other taxonomy-non-eligible economic activities not
4,758,356 1%
8. Total amount and proportion of taxonomy-non-eligible economic activities in the
4,758,356 1%
Taxonomy-eligible but not taxonomy-aligned economic activities
1. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
0 0% 0 0% 0 0%
2. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
0 0% 0 0% 0 0%
3. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
0 0% 0 0% 0 0%
4. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
0 0% 0 0% 0 0%
5. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
0 0% 0 0% 0 0%
6. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
0 0% 0 0% 0 0%
7. Amount and proportion of other taxonomy-eligible but not
taxonomy-aligned economic activities not referred to in
0 0% 0 0% 0 0%
8. Total amount and proportion of taxonomy eligible but not
taxonomy-aligned economic activities in the denominator of
0 0% 0 0% 0 0%
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
23
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Subsidiaries and joint ventures
customers with services and expertise related to
high-level nuclear safety, cost-effective operations
and nuclear waste management, and building new
nuclear power plants. The specialised expertise and
disposal.
disposal of spent nuclear fuel from its shareholders’
provides nuclear waste management consultancy
services, as well as related planning and research
and development activities.
Major events after the end of the year
After tests at full reactor capacity, the OL3 plant
unit’s production was interrupted according to plan
in January 2023 in order to replace the impellers of
the feedwater pumps. Thereafter, before the start
of regular electricity production, an approximately
month-long production phase will still follow in the
test production, where OL3 will produce electricity at
starts in March 2023.
Prospects for the future
Electricity production is expected to increase as OL3
starts regular electricity production. The prerequisites
for nuclear power production in Olkiluoto are good.
Nuclear fuel availability is guaranteed by long-term
agreements.
OL3’s regular electricity production in March 2023,
as well as the provisional takeover of the plant unit in
-
signed in June 2021, which continue until the end of
the guarantee periods.
project in 2023, which encompasses the entirety of
Proposals to the Annual General Meeting
Teollisuuden Voima Oyj’s distributable equity as of 31
December 2022 amounted to EUR 20,938,560.00,
EUR 2,208,600.00. The Board of Directors proposes
account of previous accounting periods and that no
dividend shall be paid.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
24
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Turnover 358 299 275 254 350
-48 -20 0 87 -18
Research expenses 10 12 12 15 16
Investments 312 578 56 369 181
Equity 2,218 2,063 2,043 1,819 1,745
2)
4)
929 929 929 679 679
Non-current and current interest-bearing liabilities (excluding loan from VYR)
1)
4,831 4,337 4,281 4,370 4,141
Loan from VYR 651 711 716 591 666
1,294 1,368 1,030 1,041 952
Balance sheet total 9,171 8,662 8,181 7,942 7,662
3)
30.7 31.3 31.7 28.8 28.9
Average number of personnel 1,031 1,004 984 943 872
1)
2)
3)
Management Fund
4)
-48 -20 0 87 -18
The impact of the nuclear waste management obligation
1)
36 17 6 -80 22
0 0 0 -1 -1
The impact of joint ventures 2 -1 3 -1 -1
-10 -4 9 5 2
-10 -4 9 5 2
1)
1,436 1,451 1,479 1,514 1,480
TVO's funding target obligation to
1,458 1,436 1,451 1,471 1,506
The carrying value of TVO's share in
1,000 1,010 1,030 1,041 952
Assets and provisions related to the nuclear waste management obligation.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
25
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Turnover 353 294 271 251 346
-10 -4 8 5 1
Fuel costs 70 61 64 65 72
Nuclear waste management costs 100 41 28 -5 58
37 38 34 39 53
Investments 339 220 52 278 177
Equity 864 861 861 857 857
Appropriations 181 193 197 193 187
Non-current and current interest-bearing liabilities (excluding loan from
VYR and loans from equity holders of the company)
1)
2)
4,798 4,277 4,180 4,282 4,070
Loans from equity holders of the company
2)
929 929 929 679 679
Loan from VYR 651 711 716 591 666
Balance sheet total 7,602 7,156 6,995 6,724 6,619
3)
28.4 30.8 31.7 28.2 29.0
Average number of personnel 1,029 1,002 983 942 871
1)
2)
3)
Olkiluoto 1 6,918 7,393 7,299 7,531 6,742
Olkiluoto 2 7,522 7,021 7,264 7,198 7,321
Olkiluoto 3 1,876 0 0 0 0
Total Olkiluoto 16 316 14,414 14,563 14,729 14,063
0 0 82 182 660
Total
Olkiluoto 1 89.1 95.1 93.7 96.9 87.8
Olkiluoto 2 96.8 90.4 93.3 92.7 94.3
Olkiluoto 3 16.9 - - - -
Total capacity factor
19.9 16.8 18.1 17.3 16.9
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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Consolidated income statement
EUR 1,000 | Note | 1 Jan-31 Dec 2022 | 1 Jan-31 Dec 2021 |
Turnover | 3,4 | ||
Work performed for own purpose | 5 | ||
Other income | 6 | ||
Materials and services | 7 | - | - |
Personnel expenses | 8 | - | - |
Depreciation and impairment charges | 4,9 | - | - |
Other expenses | 10 | - | - |
| |||
Finance income | 11 | ||
Finance expenses | 11 | - | - |
| - | - | |
| |||
| - | - | |
Income taxes | 12 | - | |
| - | - | |
| | |||
| Equity holders of the company | - | - |
Consolidated statement of comprehensive income
EUR 1,000 | Note | 1 Jan-31 Dec 2022 | 1 Jan-31 Dec 2021 |
| - | - | |
| Other comprehensive items | |||
| | |||
| | 11 | ||
| |||
| |||
| | |||
| Equity holders of the company |
TVO Group
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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Consolidated balance sheet
EUR 1,000 | Note | 31 Dec 2022 | 31 Dec 2021 |
| | |||
| | |||
| Property, plant and equipment | 13 | ||
Intangible assets | 14 | ||
Loans and other receivables | 17 | ||
| 15 | ||
Investments in shares | 18 | ||
| 20 | ||
Share in the Finnish State Nuclear Waste Management Fund | 24 | ||
| |||
| | |||
| Inventories | 19 | ||
Trade and other receivables | 3,17 | ||
| 20 | ||
Cash and cash equivalents | |||
| |||
| |||
| | |||
| | |||
| Share capital | 21 | ||
Share premium reserve and statutory reserve | 21 | ||
Fair value and other reserves | 21 | ||
Subordinated shareholder loans (hybrid equity) | 21 | ||
Retained earnings | 21 | ||
|
EUR 1,000 | Note | 31 Dec 2022 | 31 Dec 2021 |
| | |||
| | |||
| Provision related to nuclear waste management | 24 | ||
Loan from the Finnish State Nuclear Waste Management Fund | 22 | ||
Bonds | 22 | ||
| 22 | ||
| 20,22 | ||
| |||
| | |||
| | 22 | ||
| 20,22 | ||
Advance payments received | 3,23 | ||
Trade payables | 23 | ||
Other current liabilities | 23 | ||
| |||
| |||
|
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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Consolidated statement of changes in total equity
| Share premium reserve | Fair value and | Subordinated shareholder | | |||||
EUR 1,000 | Note | Share capital | and statutory reserve | other reserves | loans (hybrid equity) | Retained earnings | holders of the company | Total equity |
1 Jan 2022 | ||||||||
| - | - | - | |||||
| | ||||||||
| | ||||||||
Interest paid of subordinated shareholder loans (hybrid equity) | - | - | - | |||||
312022 | 21 | |||||||
| Share premium reserve | Fair value and | Subordinated shareholder | | |||||
EUR 1,000 | Note | Share capital | and statutory reserve | other reserves | loans (hybrid equity) | Retained earnings | holders of the company | Total equity |
1 Jan 2021 | - | |||||||
| - | - | - | |||||
| | ||||||||
| | ||||||||
Interest paid of subordinated shareholder loans (hybrid equity) | - | - | - | |||||
312021 | 21 | |||||||
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2022
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EUR 1,000 | Note | 2022 | 2021 |
| | |||
| | - | - | |
| | |||
| Taxes | |||
Finance income and expenses | |||
Depreciation and impairment charges | |||
| - | - | |
| | - | - | |
| | |||
| Increase (-) or decrease (+) in non-interest-bearing receivables | - | ||
Increase (-) or decrease (+) in inventories | - | ||
Increase (+) or decrease (-) in short-term non-interest-bearing liabilities | |||
| - | - | |
Dividend received | |||
Interest received | |||
Taxes paid | - | ||
| |||
| | |||
| Acquisition of property, plant and equipment | - | - | |
| |||
Acquisition of intangible assets | - | - | |
Acquisition of shares | - | ||
Loan receivables granted | - | - | |
Repayments of loans granted | |||
| - | - |
1)
EUR 1,000 | Note | 2022 | 2021 |
| | |||
| Withdrawals of long-term loans | |||
Repayment of long-term loans | - | - | |
Principal elements of lease payments | - | - | |
Interest paid of subordinated shareholder loans (hybrid equity) | - | - | |
| |||
| - | - | |
| |||
| |||
Cash and cash equivalents 1 Jan | |||
31 | 18 |
1)
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Income statement
EUR 1,000 Note 1 Jan-31 Dec 2022 1 Jan-31 Dec 2021
Turnover 2 353,479 293,781
Work performed for own purpose 3 21,310 25,036
Other income 4 17,047 16,434
Materials and services 5 -183,929 -115,198
Personnel expenses 6 -80,139 -81,961
Depreciation and impairment charges 7 -40,690 -37,650
Other expenses 8 -101,203 -104,509
-14,125 -4,067
Financial income and expenses 9 3,823 -8
-10,302 -4,075
Appropriations 10 12,511 4,075
2,209 0
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Balance sheet
EUR 1,000 Note 31 Dec 2022 31 Dec 2021
Intangible assets
11 2,476 2,543
Tangible assets 11 6,007,324 5,709,057
Investments
Holdings in group companies
12 8 8
Holdings in joint ventures 12 1,011 1,011
Other shares 12 4,219 4,219
Other receivables 12 710,964 716,202 714,028 719,266
6,726,002 6,430,866
Inventories
13 272,283 274,421
Current receivables 14 250,876 278,208
Cash and cash equivalents 352,359 172,134
875,518 724,763
7,601,520 7,155,629
EUR 1,000 Note 31 Dec 2022 31 Dec 2021
Share capital
15 600,365 600,365
Share premium reserve 15 232,435 232,435
Statutory reserve 15 9,948 9,948
Retained earnings (loss) 15,16 18,730 18,730
15,16 2,209 0
863,687 861,478
181,207 193,326
Non-current liabilities
17,18 4,541,483 3,836,518
Shareholders' loans 17 929,300 929,300
Loan from the Finnish State Nuclear Waste Management
Fund
17 651,339 711,266
Current liabilities 19 434,504 623,741
6,556,626 6,100,825
7,601,520 7,155,629
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EUR 1,000 2022 2021
-14,125 -4,067
1)
40,690 37,650
Changes in working capital
2)
61,608 -4,257
-4,337 -4,114
Dividend received 2,209 0
Interest received 6,277 3,977
92,322 29,189
Acquisition of shares
0 -1
Acquisition of non-current assets -433,656 -322,051
OL3 project compensation 0 206,875
Loan receivables granted -15,831 -105
Repayments of loans granted 75,837 5,392
-373,650 -109,889
Withdrawals of long-term loans
1,050,000 800,000
Repayment of long-term loans -517,415 -571,683
Increase (+) or decrease (-) in short-term interest-bearing liabilities 62,740 61,630
Repayment of short-term interest-bearing liabilities -134,190 -198,410
Group contribution received 418 343
461,553 91,880
EUR 1,000 2022 2021
180,225 11,180
Cash and cash equivalents 1 Jan 172,134 160,954
31 352,359 172,134
1)
Depreciation and write-downs
40,690 37,650
40,690 37,650
2)
Changes in working capital
Increase (-) or decrease (+) in inventories
2,137 -376
Increase (-) or decrease (+) in non-interest-bearing receivables 27,535 -17,617
Increase (+) or decrease (-) in short-term non-interest-bearing liabilities 31,936 13,736
61,608 -4,257
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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, accu
-
mulated 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.
The depreciation periods are as follows:
»
OL1 and OL2 nuclear power plant units:
-
Basic investment 61 years
-
Investments made according to the modernisation
programme 16–35 years
-
Automation investments
associated with the modernisation 15 years
-
Additional investments 10 years
»
Buildings and structures 10–40 years
»
TVO’s share in the Olkiluoto
gas turbine power plant 30 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.
CO
2
emission rights
Carbon dioxide (CO
2
) emission rights are included in
the intangible 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 emission
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
expenses.
Money market instruments
Money market instruments comprise shares in short-
They are valued in the balance sheet at their original
-
The Company applies hedge accounting. Derivative
the balance sheet. Their nominal values and fair
values are presented in the Notes to the Financial
Statements.
managed with interest rate swaps. Interest costs of
these instruments have been entered on an accrual
income and expenses.
Payments of foreign currency denominated inven
-
tory acquisitions have been hedged with currency
derivatives. The realised exchange rate differences
to 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
and the risk margin, decommissioning being assumed
to start at the end of the year in question.
The Ministry of Economic Affairs and Employment
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 contribution to the Finnish State Nuclear
Waste Management Fund, so that the company’s
share in the Fund on 31 March is equal to the
calendar year in question.
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
in the Nuclear Energy Act Section 42 and the Fund’s
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must supplement the shares in the Fund by paying more nuclear waste management fee for the part that the
party with a nuclear waste management obligation in the nuclear waste management fee for the part that the
In addition, a party with a nuclear waste management obligation shall supply the Finnish State Nuclear Waste
day of March, the total amount of the collateral security corresponds with the protected portion for the part
by the party with a nuclear waste management obligation, which is not needed to cover the protected portion
business day of April in the same calendar year.
The annual contribution to the Finnish State Nuclear Waste Management 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 the
The nuclear waste management liability and TVO’s funding target 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 the Company´s share in the Finnish State Nuclear Waste Management Fund,
as well as for unforeseen expenses in nuclear waste management. Guarantees are presented in the Notes to
the Financial Statements.
The amendment to the Nuclear Energy Act concerning the investment activities of the Finnish State Nuclear
Waste Management Fund entered into force on 1 January 2022. With the amendment, the amount of
relending available to a party with a nuclear waste management obligation was limited to 60 percent, and the
investment activities were expanded to also include other asset classes than Finnish government bonds. TVO
uses the right to borrow funds back, and lends them further to its shareholders.
EUR 1,000 2022 2021
Olkiluoto 1 and Olkiluoto 2 346,820 293,781
Olkiluoto 3 6,659 0
353,479 293,781
Olkiluoto 1
6,918 7,393
Olkiluoto 2 7,522 7,021
Olkiluoto 3 1,876 0
16,316 14,414
EUR 1,000 2022 2021
Personnel expenses related to OL3 21,310 25,036
4 Other income
EUR 1,000 2022 2021
Rental income 1,144 1,101
Sales of services 14,543 14,132
Other income 1,360 1,201
17,047 16,434
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EUR 1,000 2022 2021
Purchases, accrual basis
Nuclear fuel
60,845 61,757
Materials and supplies 6,084 5,011
Increase (-) or decrease (+) in inventories 6,948 -964
73,877 65,804
CO
2
emission rights 110 151
Nuclear waste management
Contribution to the Finnish State Nuclear Waste Management Fund
1)
40,849 -24,648
Nuclear waste management services 59,554 65,295
100,403 40,647
External services 9,539 8,596
183,929 115,198
Consumption
Nuclear fuel
69,672 61,387
Materials and supplies 4,205 4,417
73,877 65,804
1)
2022 2021
834 809
Manual workers 195 193
1,029 1,002
2022 2021
816 791
Manual workers 189 191
1,005 982
Personnel expenses
EUR 1,000 2022 2021
Wages and salaries 67,247 68,898
Pension expenses 10,645 10,592
Other compulsory personnel expenses 2,247 2,471
80,139 81,961
Key management compensations are presented in Note 26 in
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EUR 1,000 2022 2021
Depreciation according to plan
Other capitalised long-term expenses
410 408
Buildings and construction 4,493 3,577
Machinery and equipment 35,377 33,013
Other tangible assets 410 652
40,690 37,650
8 Other expenses
EUR 1,000 2022 2021
Maintenance services 21,365 24,297
Regional maintenance and services 9,651 10,428
Research services 2,338 2,416
Other external services 26,283 30,638
Real estate tax 6,489 6,034
Rents 2,043 1,948
ICT expenses 6,206 6,078
Personnel related expenses 4,216 4,001
Corporate communication expenses 862 836
Other expenses 21,750 17,833
101,203 104,509
PricewaterhouseCoopers Oy (EUR 1,000) 2022 2021
Auditing 231 260
Tax services 13 28
Other services 65 70
309 358
EUR 1,000 2022 2021
From joint ventures
2 209 0
2 209 0
From joint ventures
13 11
From others 3,377 3,612
3,390 3,623
From others
2,652 483
2,652 483
8,251 4,106
To the Finnish State Nuclear Waste Management Fund
3,377 3,612
To others 103,628 96,321
Capitalised interest costs -102,577 -95,819
4,428 4,114
3,823 -8
Financial income and expenses include exchange rate gains (+) and losses (-) (net) 505 439
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10 Appropriations
EUR 1,000 2022 2021
Group contribution 393 503
The difference between depreciation according to plan and tax depreciation, increase (-) or
decrease (+)
12,118 3,572
12,511 4,075
EUR 1,000
expenses
Intangible
rights
Other capitalised
long-term expenses
Advance
payments Total
Acquisition cost
1 Jan 2022 54,011 159 26,635 276 81,081
Increase 0 110 296 76 482
Decrease 0 -140 -275 0 -415
Transfer between categories 0 0 0 0 0
Acquisition cost 31 Dec 2022 54,011 129 26,656 352 81,148
Accumulated depreciation according to plan 1 Jan 54,011 0 24,526 0 78,537
Accumulated depreciation from deduction 0 0 -275 0 -275
Depreciation according to plan 0 0 410 0 410
312022 0 129 1,995 352 2,476
Accumulated depreciation difference 1 Jan 0 0 1,432 0 1,432
Change in depreciation difference 0 0 -134 0 -134
Accumulated depreciation difference 31 Dec 0 0 1,298 0 1,298
Undepreciated acquisition cost in taxation 31 Dec 2022 0 129 697 352 1,178
EUR 1,000
Land
and water
areas
Building and
Machinery
and
equipment
Other
tangible
assets
progress and
avance payments Total
Acquisition cost
1 Jan 2022 12,054 291,337 1,368,065 53,656 5,214,339 6,939,451
Increase 21 1,498 19,021 880 317,126 338,546
Decrease 0 -1,623 -8,344 -12 0 -9,979
Transfer between categories 0 4,443 34,181 0 -38,624 0
Acquisition cost 31 Dec 2022 12,075 295,655 1,412,923 54,524 5,492,841 7,268,018
Accumulated depreciation according to plan 1 Jan 0 229,311 952,366 48,716 0 1,230,393
Accumulated depreciation from deduction 0 -1,623 -8,344 -12 0 -9,979
Depreciation according to plan 0 4,493 35,377 410 0 40,280
312022 12,075 63,474 433,524 5,410 5,492,841 6,007,324
Accumulated depreciation difference 1 Jan 0 -1,752 191,336 2,310 0 191,894
Change in depreciation difference 0 1,961 -13,875 -70 0 -11,984
Accumulated depreciation difference 31 Dec 0 208 177,461 2,240 0 179,909
Undepreciated acquisition cost in taxation 31 Dec 2022 12,075 63,265 256,063 3,170 5,492,841 5,827,414
Share of machinery and equipment from book value
31 Dec 2022 413,503
Share of machinery and equipment from book value
31 Dec 2021 398,574
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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 2022 8 1,011 4,219 2,257 711,771 0 719,266
Increase 0 0 0 133 15,910 56,730 72,773
Decrease 0 0 0 0 -75,837 0 -75,837
Acquisition cost 31 Dec 2022 8 1,011 4,219 2,390 651,844 56,730 716,202
312022 8 1,011 4,219 2,390 651,844 56,730 716,202
651,339 651,339
Group companies Group share, %
TVO Nuclear Services Oy, Eurajoki 100
Joint ventures Holding of the parent company, %
Posiva Oy, Eurajoki, A series 60
Posiva Oy, Eurajoki, B series 74
EUR 1,000 2022 2021
Replacement cost
159,407 133,705
Book value 92,740 99,268
66,667 34,437
Raw uranium and natural uranium 92,740 99,268
Nuclear fuel 169,684 166,681
Supplies 9,859 8,472
272,283 274,421
EUR 1,000
expenses
Other
capitalised
long-term
expenses
Buildings and
Machinery
and
equipment
Other
tangible
assets
in progress Total
Acquisition cost
1 Jan 2022 11,046 1,167 27,122 95,394 2,402 1,689,021 1,826,152
Increase 0 0 0 0 0 102,489 102,489
Acquisition cost 31 Dec 2022 11,046 1,167 27,122 95,394 2,402 1,791,510 1,928,641
Accumulated depreciation according
to plan
1 Jan 11,046 936 21,735 76,446 1,925 0 112,088
Depreciation according to plan 0 12 284 997 25 0 1,318
312022 0 219 5,103 17,951 452 1,791,510 1,815,235
Accumulated depreciation difference
1 Jan 0 231 5,387 18,948 477 0 25,043
Change in depreciation difference 0 -12 -284 -997 -25 0 -1,318
Accumulated depreciation difference
31 Dec 0 219 5,103 17,951 452 0 23,725
Undepreciated acquisition cost in
taxation
31 Dec 2022 0 0 0 0 0 1,791,510 1,791,510
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EUR 1,000 2022 2021
Accrued income
1,487 1,245
1,487 1,245
Interest receivables
2 0
Loan receivables 0 212
Prepayments and accrued income 3,816 2,669
3,818 2,881
Trade receivables
9,780 9,301
Other receivables
1)
207,059 204,545
216,839 213,846
1)
Accrued interest costs 20,535 20,069
Accrued insurance costs 2,511 2,265
Collateral received 4,690 2,160
Other prepaid expenses 996 35,742
28,732 60,236
250,876 278,208
1)
EUR 193.1 million have been transferred to the other receivables from prepayments and accrued income.
EUR 1,000 2022 2021
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 18,730 14,460
Change 0 4,270
31 Dec 18,730 18,730
2,209 0
863,687 861,478
EUR 1,000 2022 2021
Retained earnings 18,730 18,730
2,209 0
Total 20,939 18,730
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EUR 1,000 2022 2021
Bonds 3,307,900 2,813,560
1,216,233 966,841
Other loans 17,350 56,117
4,541,483 3,836,518
Shareholders' loans
1)
929,300 929,300
Loan from the Finnish State Nuclear Waste Management Fund
2)
651,339 711,266
6,122,122 5,477,084
1)
Subordinated loans
2)
Lent further to the shareholders.
Currency
Capital
2022
EUR 1,000
2022
Capital
2021
EUR 1,000
2021
Maturity
date
EUR 30,000 30,000 9.5.2022
1)
EUR 100,000 100,000 12.9.2022
1)
EUR 23,000 23,000 1.12.2022
1)
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 205,665 205,665 311,777 311,777 13.1.2023
1)
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 600,000 600,000 600,000 600,000 23.6.2028
EUR 600,000 600,000 31.3.2027
EUR 150,000 150,000 13.9.2032
SEK 1,000,000 97,561 15.2.2022
1)
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
3,513,565 3,120,237
Current portion of long-term bonds
1)
205,665 306,678
3,307,900 2,813,559
BONDS
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Currency
Capital
2022
EUR 1,000
2022
Capital
2021
EUR 1,000
2021
Maturity
date
GBP 0 0 0 0
0 0 0 0
Current portion of other loans
1)
0 0 0 56,117 15.11.2022
1)
Total 0 0 0 56,117
Collateral received 17,350 17,350 0 0 30.11.2030
17,350 17,350 0 56,117
EUR 1,000 2022 2021
Debts due in more than 5 years 1,217,168 1,250,922
EUR 1,000 2022 2021
Accruals
1 1
1 1
Accruals
3,031 1,018
3,031 1,018
Advances received
23,064 21,218
Trade payables 17,819 56,671
40,883 77,889
Bonds
205,665 306,678
50,608 48,258
Commercial paper program 0 85,240
256,273 440,176
Finnish State Nuclear Waste Management Fund
40,227 13,312
Accrued interests 50,316 40,481
Accrued personnel expenses 22,742 23,792
Accruals related to CO
2
emission rights 129 159
Other accruals and deferred income 20,902 26,913
134,316 104,657
434,504 623,741
OTHER LOANS
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EUR 1,000 2022 2021
Leasing liabilities falling due in less than a year 2,814 2,466
Leasing liabilities falling due later 47,462 47,557
50,276 50,023
EUR 1,000 2022 2021
Bank guarantees 550 550
EUR 1,000 2022 2021
Liability for nuclear waste management according to the Nuclear Energy Act
1)
1,839,600 1,816,100
TVO's funding target obligation 2023 (2022) to
the Finnish State Nuclear Waste Management Fund 1,457,900 1,436,100
Collateral for nuclear waste management contingencies 534,990 480,670
Nuclear waste management loan receivables pledged to
the Finnish State Nuclear Waste Management Fund 651,339 711,266
1)
Based on the nuclear waste management programme and the proposal for the liability made by
20 Commitments
TVO has the right to redeem the lease object for EUR 42.7 million in 2025.
PENDING COURT CASES AND DISPUTES
See Note 25
EUR 1,000 2022 2021
Interest rate swaps (nominal value)
2,185,000 1,944,117
Fair value 191,156 7,987
Forward foreign exchange contracts (nominal value)
44,127 69,597
Fair value 11,482 12,035
Cross-currency swaps (nominal value)
224,873 378,577
Fair value 13,576 7,745
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.
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Number
2022
Number
2021
EUR 1,000
2022
EUR 1,000
2021
12
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
3
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
1,360,000,000 1,360,000,000 600,365 600,365
According to the Articles of Association, TVO delivers electricity to its shareholders on the so-called Mankala
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
-
t CO
2
2022
EUR 1,000 t CO
2
2021
EUR 1,000
Total annual emissions from production facilities 1,449 2,435
Possessed emission rights 1,604 2,740
Emission rights bought
1)
1,300 110 2,500 151
1)
The purchases of the emission rights are included in materials and services. The emission rights that the Company
possesses on 31 December are included in intangible rights on the balance sheet and emission right reductions.
23 CO
2
emission rights
TVO’s CO
2
emissions are generated by the releases of the reserve boilers and the emergency diesel gener-
ators. In principle TVO has, on December 31, emission rights at least the same amount as the actual annual
emissions are. If the actual emissions exceed the amount of the emission rights that the Company possesses,
the Company has booked the expense for exceeding emission rights at the market value on December 31.
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Proposals to the Annual General Meeting
Teollisuuden Voima Oyj’s distributable equity as of 31
December 2022 amounted to EUR 20,938,560.00, of
EUR 2,208,600.00. The Board of Directors proposes
dividend shall be paid. Ilkka Tykkyläinen
Tapio Korpeinen
Timo Rajala
Jarmo Tanhua
CEO
Hannu Jokinen
Petra Lundström
Anders Renvall
Tiina Tuomela
Esa Kaikkonen
Seppo Parvi
Rami Vuola
Helsinki, February 15, 2023
The auditor’s note
Our auditor’s report has been issued today.
Helsinki, February 15, 2023
PricewaterhouseCoopers Oy
Authorised Public Accountants
Niina Vilske
Authorised Public Accountant
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Auditor’s Report (Translation of the Finnish Original)
OPINION
In our opinion
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with statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited
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BASIS FOR OPINION
ments section of our report.
opinion.
Independence
responsibilities in accordance with these requirements.
OUR AUDIT APPROACH
Overview
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€ 25 million
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of the parent company Teollisuuden Voima Oyj.
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Olkiluoto 3 EPR plant unit in the test production phase
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future events that are inherently uncertain.
Materiality
a whole.
Overall group materiality
How we determined it
Rationale for the materiality benchmark applied
0.3 % of balance sheet total
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
Group is commonly measured by users.
How we tailored our group audit scope
parent company Teollisuuden Voima Oyj.
KEY AUDIT MATTERS
opinion on these matters.
misstatement due to fraud.
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OLKILUOTO 3 EPR PLANT UNIT IN THE TEST PRODUCTION PHASE
test production phase continued and electricity production started in 2022, but the plant investment is
still incomplete.
sheet.
holder responsibilities incorporated in the Articles of Association.
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ASSETS AND PROVISIONS RELATED TO THE NUCLEAR WASTE MANAGEMENT OBLIGATION
factor, cost estimates and discount rate.
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
determined.
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RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE MANAGING DIRECTOR FOR THE
FINANCIAL STATEMENTS
misstatement, whether due to fraud or error.
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
statements.
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internal control.
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conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclo
on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
»
fair view.
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disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not
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APPOINTMENT
Teollisuuden Voima Oyj became a public interest entity in June 2009. We have been the auditors of Teol
lisuuden Voima Oyj all that time it has been a public interest entity.
OTHER INFORMATION
mation comprises the report of the Board of Directors and the information included in the Annual Report, but
Board of Directors and Annual Report prior to the date of this auditor’s report.
In our opinion
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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
OTHER STATEMENTS
is in compliance with the Companies Act. We support that the members of the Board of Directors and the
Helsinki 15 February 2023
PricewaterhouseCoopers Oy
Authorised Public Accountants
Niina Vilske
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Financial information in 2023
INTERIM REPORT FOR JANUARY-MARCH 2023
on April 20, 2023
INTERIM REPORT FOR JANUARY-JUNE 2023
INTERIM REPORT FOR JANUARY-SEPTEMBER 2023
on October 20, 2023
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ESEF-report
T eollisuuden V oima Oy
Finland
Public Limited Compan
Finland
T öölönkatu 4, 00100 Helsinki
Olkiluoto, 27160 EURAJOK
Production of electricity with nuclear power
T eollisuuden V oima Oyj
T eollisuuden V oima Oyj
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