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REPORT OF THE
BOARD OF DIRECTORS
AND FINANCIAL
STATEMENTS
Contents
3 Main events in 2023
3 Operating environment
4 TVO as a company
4 Financial performance
4 Financing and liquidity
5 Share capital
5 Administrative principles
5 Administrative bodies
5 Regulatory environment
5 Risk management, major risks and
uncertainties
Risk management .................................................... 6
Risk management process ....................................... 6
Major risks and uncertainties ................................... 6
Risks related to OL3 ................................................. 6

implementation ........................................................ 7
 .................................. 7
Financial and liquidity risks ........................................ 7

 .....................................................7
-

.............................................. 8
8 Pending court cases and disputes
8 Electricity production
 .................. 9
9 Annual outages
9 Olkiluoto 3
 .......................................... 9
10 Nuclear fuel
10 Nuclear waste management
 ......................... 11
11 Research and development
11 Acquisitions of tangible and intangible
assets and shares
11 Responsibility
 ....................... 12
 .......................................... 12
 ......................................
12
 ..................................................................... 13
 .................................................... 13
Group personnel and training ..................................
14
EU Taxonomy reporting .......................................... 15
30 Subsidiaries and joint ventures
30 
the end of the year
30 Prospects for the Future
30 Proposals to the Annual General Meeting
31 Financial statements 2023
 ....................................... 31
 ...............................
32
 .............................
33
...................... 73
 ............... 87

 .........................................
87
 ......................................................
88
 .................................. 94
TVO’s Annual Report 2023
TVO’s Annual Report includes the Annual and Sustainability
Report, the Corporate Governance Statement, as well as
the Report of the Board of Directors and Financial Statements.

.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
2
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 2023
The role of low-carbon energy, such as renew-
able energy and nuclear power, is crucial in the
mitigation of climate change. In 2023, the share
of nuclear power was about 41 per cent of all the
electricity produced in Finland. In 2023, Teollisuuden
Voima Oyj’s (TVO) Olkiluoto nuclear power plant
produced approximately 31 per cent of the elec
-
tricity consumed and produced in Finland, which

terms of electricity and helps to achieve the carbon
neutrality targets. Over the course of the company’s
history, which spans more than 50 years, Olkiluoto
has generated more than 580 terawatt hours (billion
kilowatt hours) of climate-friendly electricity.
In 2023, TVO’s electricity production amounted to
24.67 terawatt hours (TWh). The Olkiluoto 1 plant
unit (OL1) generated 7.4 (6.9) TWh of electricity
and had a load factor of 95.4 (89.1) per cent. The
Olkiluoto 2 plant unit (OL2) generated 6.9 (7.5) TWh
of electricity and had a load factor of 88.3 (96.8) per
cent. The combined load factor for the OL1 and OL2
plant units was 91.9 (93.0) per cent. During 2023,
the Olkiluoto 3 plant unit (OL3) generated 10.4 (1.9)
TWh of electricity and had a load factor of 75.2
(16.9) per cent. The Groups turnover was EUR 876
(358) million.
A failed rotor was replaced at OL2 in August 2023,
the replacement outage for which lasted 17 days.
Electricity generation at OL3 continued without inter
-
ruption from the provisional takeover of the plant unit
in April 2023 and the start of commercial operation
in May 2023 until mid-November. In late November,
production was interrupted on two occasions. The
unplanned production interruptions were caused by
turbine trips; one was due to an instrument defect in
the protection system, while the other resulted from
the fault ride-through test.
For the time being, the grid operator Fingrid Oyj has
limited OL3’s production to a maximum of 1,570
MW. Furthermore, output at all three Olkiluoto
plant units has been reduced in situations where
electricity generation has been high in the Nordic
countries.
TVO started preparations for an environmental
impact assessment (EIA) procedure concerning the
possible service life extension and potential power
uprating of OL1 and OL2. At the moment, the plant
units are licensed until 2038.
The processing of Posiva’s operating licence has
progressed at the Radiation and Nuclear Safety
Authority (STUK), and Posiva submitted responses to
the requests for additional information. In September
2023, the Radiation and Nuclear Safety Authority
reported that the safety assessment and statement

disposal facility for spent nuclear fuel will not be
completed in 2023. Work with the installation and
commissioning of systems at the encapsulation plant

tunnel, investigations relating to verifying the suita
-



fuel is to start at Olkiluoto in the mid-2020s.
At the end of the year, the total number of personnel in
the Group was 1,045 (1,007). The number of personnel
working for Posiva and its subsidiary Posiva Solutions
Oy was 89 (90). A total of 69 (95) new staff members
were recruited at the TVO Group during 2023.
Operating environment
The Finnish Government led by Petteri Orpo that

nuclear power capacity in Finland. Orpo’s govern
-
ment is promising to approve all applications for deci-
sions-in-principle for nuclear power plants that meet

Energy Act in order to allow projects to proceed

-
ness as an investment target. The work started by
the Ministry of Economic Affairs and Employment
(MEAE) that aims at a comprehensive reform of the
Nuclear Energy Act continued during 2023.
The renewal of the EU’s electricity market rules is
in the trilogue negotiation stage. According to the
compromise achieved between the Member States,
governments will be allowed to use Contracts for
Difference (CfD) towards new nuclear power invest
-
ments as well as for the service life extension and
power uprating of nuclear reactors. The European
Parliament, however, would not allow the use of

-
sion on the matter is expected in early 2024.

on the Net-Zero Industry Act (NZIA) which aims
at increasing the production capacity required for
Europe’s green transition. In the Parliament’s position,

list of technological solutions receiving support. The
trilogue negotiations may begin once the Member

The European Commission has decided to establish
an industry alliance around SMR technology (small
modular reactor). Industry alliances bring together
public and private actors, governments, researchers
and civil society. Their aim is to help the EU achieve
its key goals, such as those related to the mitigation
of climate change.
The European Commission will publish a commu
-
niqué on the emission reduction targets for 2040

regarding the target and the actions taken in order to
achieve it will be issued during the term of the next
Commission.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
3
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
In Finnish Energy’s “Energy Attitudes” survey, which
is carried out each year, the overall support for
nuclear power in November 2023 was 82%, with
54% of Finns wanting to increase the amount of
nuclear power and 28% considering that the current
amount is appropriate.
The United Nations’ COP28 climate summit was
held in Dubai in the United Arab Emirates at the end
of 2023. The summit’s resolution calls for discon
-
tinuing the use of fossil fuels and replacing them
with zero-emission or low-emission energy sources.
The resolution aims at global climate neutrality by
2050 and lists technologies, such as nuclear power,
whose production must be accelerated. This is the

mentioned as one solution for the climate crisis in a
COP resolution.
22 countries, Finland included, declared within the
context of the COP conference that they will be
tripling the production of nuclear energy by 2050
in order to achieve climate neutrality. The Net Zero
Nuclear Industry Pledge states that the IAEA plays a
key role in its member states including nuclear power
in their national energy plans and that it is important

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, its line
of business is the construction and procurement of
power plants and power transmission equipment
as well as the production, supply, and transmission
of electricity primarily to its shareholders under the

TVO operates on a cost-price principle (Mankala prin
-
ciple). The shareholders are charged incurred costs
in the price of electricity and thus, in principle, the

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 used their share of the
output or not. Because of this operating principle, key

Cost-price principle in the notes to
).

like TVO, operate according to the Mankala principle.
The electricity generated by TVO serves the needs
of Finnish industrial and energy companies, some of
which were owned by a total of 131 Finnish munic
-
ipalities in 2023. TVO generates approximately one
third of the electricity consumed in Finland.
All of TVO’s operations are based on a strong safety
culture and ensuring the safety of production. TVO’s
activity-based management system covers the
production operations at the Olkiluoto nuclear power
plant, maintenance and development of production
capacity, construction of additional production
capacity and the related steering and resourcing func
-
tions. The system meets the requirements of interna-
tional standards related to quality management, the
environment and health and safety, and it has been

The general part of the activity-based management
system also acts as the licensee’s quality manage
-
ment system that has been approved by STUK. The
implementation, functionality and effectiveness of
the activity-based management system is regularly
tracked through internal audits and management
reviews.
TVO’s corporate governance system is described in
a separate report. TVO’s principles for sustainable
business are described in the TVO Group’s Code of
Sustainability).
The objectives of TVO’s strategy include a strong

production assets, competitive and predictable price
of electricity and the responsible maximisation of
shareholder value. The strategy aims to ensure the
long-term operation of the plant units, achieving
availability according to the set goals and achieving
a competitive average generation cost for electricity
produced by TVO. The safety culture is maintained at
a high level and safety is systematically upheld and
developed further at all stages of the nuclear power
life cycle.
Financial performance
The Group’s turnover in 2023 was EUR 876 (358)
million. The higher turnover compared to the previous
year is due to OL3’s electricity production.
The amount of electricity delivered to shareholders
was 24,634 GWh (16,316 GWh). The higher delivery
volume compared to the previous year is due to
OL3’s electricity production.


affected in particular by the costs charged from
shareholders, which were higher than the incurred


loss is also affected by the treatment of interest on
equity shareholder loans in accordance with the
IAS32 standard, which states that interest paid is


Updated cost estimates based on a new technical
plan and schedule for nuclear waste management
and changes to the provision regarding the nuclear
waste management obligation had an effect on the
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 State
Nuclear Waste Management Fund re-lent to share
-
holders, amounted to EUR 5,539 (5,727) million,
of which EUR 929 (929) million were subordinated
shareholder loans. TVO raised a total of EUR 1,174
(1,050) million in new non-current liabilities during
2023. No subordinated shareholder loans were
raised during the period in review (no subordinated
shareholder loans were raised). Repayments of
non-current liabilities amounted to EUR 1,352 (458)
million during the year.
TVO has a revolving credit facility of EUR 1,000
million, which was extended until 2026 during the
period in review. The shareholder loan commitment

needs of the OL3 project, matured at the end of
2023, and the loan pursuant to the commitment was
not raised.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
4
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
In May 2023, TVO issued a bond of EUR 600
million and announced a tender offer for its bond
maturing in May 2024, of which EUR 208 million was
repurchased.
In late June 2023, TVO established a Green Bond
Framework that is based on TVO’s environmentally
friendly electricity generation at its three nuclear
power plant units at Olkiluoto and on responsible
nuclear waste management. Danske Bank acted as
an adviser on the establishment of the Green Bond
Framework. ISS ESG, a service provider specialising
in assessments for green funding, provided an inde
-
pendent assessment according to which the frame-
work is aligned with the Green Bond Principles. ISS
ESG further assessed that the framework is aligned
with the EU taxonomy.
In August 2023, TVO took out Private Placement
loans totalling SEK 2,300 million. At the same time,
TVO bought back a total of SEK 900 million in SEK
denominated loans maturing in February 2024.
In December 2023, TVO issued EUR 280 million in
directed Green Notes (US Private Placement). The

years (EUR 105 million), 12 years (EUR 85 million)
and 15 years (EUR 90 million).
TVO uses its right to borrow funds back from the
Finnish State Nuclear Waste Management Fund
within the provisions of the Nuclear Energy Act. On
31 December 2023, the amount of the loan was
EUR 728 (651) million, and it has been re-lent to the
Company’s shareholders. On 31 March 2023, the
loan from the Finnish State Nuclear Waste Manage
-
ment Fund increased by EUR 77 million (31 March

In April 2023, S&P Global Ratings (S&P) upgraded
its long-term credit rating from BB+ to BBB- and

Service (Moody’s) provided a long-term credit rating
of Baa3 in May 2023 and estimated TVO’s outlook
as stable. TVO also has a long-term credit rating of
BBB- from Fitch Ratings (Fitch) with a stable outlook.
In March 2023, Japan Credit Rating Agency (JCR)

previous level of A+ and changed the outlook from
negative to stable.

-
ised in the balance sheet up to 30 April 2023.
Share capital
TVO’s share capital on 31 December 2023 was EUR
600 (600) 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 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
Comply or Explain principle. According to Chapter 7,

the issuer of a security subject to public trading
must provide a corporate governance statement in
its annual report or in a separate report. TVO has
provided a separate Corporate Governance State
-
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 opera-
tions in 2023 have been described in a separate
Corporate Governance Statement which can be
found on the Company’s website at 
.
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 based
on them, such as the Regulatory Guides on nuclear
safety (YVL Guides) and regulations by STUK. In
addition to these, regulations applied to the use of
nuclear energy are included e.g. in the Radiation Act.
The work started by MEAE that aims at a compre
-
hensive reform of the Nuclear Energy Act continued
during 2023. The objective is that the production of
nuclear energy will continue to be in line with the

-
able. The draft legislation is supposed to enter the
consultation phase in the spring of 2025, followed
by a government proposal to the Parliament in early
2026, after which the new Nuclear Energy Act would
enter into force in 2028. TVO has participated in the
preparatory work of different working groups.
During 2023, the updated YVL Guide B.8 was

Guide (YVL E.6) will be introduced at the OL1, OL2
and OL3 plant units in the near future.
STUK’s preparations for the reform of nuclear safety
regulations and guidelines, initiated in 2021, have
also continued during 2023. 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
STUK’s working groups.
The Nuclear Liability Act concerns the liability the
operator of a nuclear facility has in the event of
nuclear damage; according to the Act, the liability
of a facility’s operator for nuclear damage occurring
outside of Finland is EUR 1,200 million for nuclear
facilities used in energy production. For nuclear
damage in Finland, the operator’s liability is unlimited.
For nuclear facilities used for purposes other than
energy production and for the transport of nuclear
materials, the liability is EUR 80–250 million.
The use of nuclear energy is subject to a licence.
Applications for a decision-in-principle, construction
licence and operating licence, as well as a licence for
the decommissioning of a nuclear facility, are made
to the Finnish Government STUK is responsible for
monitoring the safety of the use of nuclear energy,
and it also supervises security and emergency
arrangements and nuclear material safeguards.
Risk management, major risks and
uncertainties
RISK MANAGEMENT
The objective of risk management is to support the
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
5
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
implementation of TVO’s strategy and business
targets as well as to ensure that TVO’s operational
prerequisites are maintained. Risk management is
carried out comprehensively in line with 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 Presi
-
dent and CEO, supported by the Management Group,
is responsible for risk management in accordance
with TVO’s targets and strategy. A Risk Management
Group operates under the Management Group and is
in charge of ensuring adequate risk treatment in the

management measures.

-
cation, analysis and treatment of risks connected to
its operations, as well as for the follow-up of meas
-

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

is treated according to its severity. The objective of
the risk management process is to manage risks to
an appropriate level set by the risk-bearing capacity.
Risks can be managed by reducing, avoiding, sharing
or moving them or by accepting the realisation of the
risk. The acknowledged risks are gathered to compa
-
ny-level risk registers, where all the risks and their

risk’s consequence and likelihood. The Company’s

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 risk management
level evaluation, the results of which are used to set
the goals for the development of risk management.
Risk management level evaluation is performed in
accordance with a model based on risk management
maturity levels.
In 2023, the role of risk management in the process of
management and operational planning was reinforced
further. Risk management is part of the Group’s
strategy, and it is continuously being developed in
order to support meeting the Group’s objectives at the
approved risk level. In 2023, the role of risk manage
-
ment in operations was strengthened through new
trainings and continuous communication. In terms
of communication, the key themes were continuity
management and risk-bearing capacity. Work was
also continued in order to emphasise the importance
of risk management within operating processes.
MAJOR RISKS AND UNCERTAINTIES
Risks related to safety and electricity production are
reduced by keeping the plant units in good condition.

service life management of the plant units 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
signing long-term contracts.
In the OL3 project, risk management was primarily a
question of overseeing and guiding the work of the
Plant Supplier according to the terms of the turnkey
contract and the settlement agreement, as well as
enhancing TVO’s own preparedness. Following the
start of regular electricity production at OL3 in April
2023, the focus of risk management shifted from

to managing the warranty period.
Insurance has been taken out in order to prepare for
indemnity and property risks. The aim is to manage
insurance in a manner where their scope, coverage
and cost are at an appropriate level. TVO is a
member of European mutual associations for nuclear
insurance. Statutory liability is in force for nuclear
liability.
No major risks or uncertainties can be foreseen as
regards electricity production at OL1 and OL2. The
risks and uncertainties related to OL3’s electricity
production are explained in more detail under “Prof
-
it-yielding capacity of OL3” below.
Financial risk management and fuel price risks are

Financial risk management.
RISKS RELATED TO OL3
Management of warranty period
Regular electricity production, which started after the
conclusion of the test operation programme in April
2023, and commercial operation, which started in
May 2023, transferred the responsibility for OL3 to
TVO. The Plant Supplier retains the responsibilities
according to the Plant Contract for warranty periods

to be done later at the Plant Suppliers expense.
During 2023, several risk management measures
have been taken in relation to the warranty period

warranty period and ensure that the prerequisites
for the warranty period under the Plant Contract are
met. TVO is closely monitoring compliance with the
conditions set in the Settlement Agreement signed
in March 2018 and supplemented in June 2021 and
the progress of the OL3 warranty period and ascer
-
taining that actions are taken in accordance with the

and technical resources.

Even though there have been few interruptions to
electricity generation at OL3 following the conclusion
of the test operation programme, there are uncer
-
tainties related to the availability of OL3 during the

events. These uncertainties are managed by means of
systematic maintenance and monitoring of the plant
unit. If OL3 fails to achieve the planned load factor
or operating cost structure, the Finnish national grid
limits its power level or costs incurred by TVO due to

full power, there is a risk of production costs exceeding
the target. This risk has been examined with the help

capacity. The risk has also been examined from the
point of view of the adequacy of Fingrid Oyj’s grid load
limitation and the resulting costs to TVO.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
6
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
TVO is implementing several risk management

capacity. Examples of these include careful prepara
-

that affect availability and utilising experience from
the sister plants at Flamanville and Taishan in prepa
-
ration for OL3’s annual outage.
MAJOR PLANT MODIFICATIONS AND THEIR
IMPLEMENTATION
Increases in production costs and degradation of

-


and assign responsibility for the requirements related
to nuclear safety and meeting them between the
project parties in advance in order to avoid unex
-
pected costs during the project.
In a risk review, cost increases in projects are seen
to be due either to shortcomings in preparation and

technical problems, challenges in the execution of the

and management.
As risk management measures, TVO has in 2023
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. TVO is also
continuing to secure the preparedness and interests
of project suppliers while considering the uncertain
-
ties of the geopolitical situation.
THE ORGANISATION’S CAPABILITIES
An organisations competence and ability to func-
tion as a licensee may be degraded as a result of
dysfunctional management, unsuccessful reaction to
changes in the operating environment or a negative
atmosphere in the work community. In addition to an
increase in 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 prepared for the operating phase of
OL3 and future retirements by recruiting 64 new
persons in 2023 and by maintaining comprehensive
supplier networks. TVO’s sick leave percentage was
2.8 and the outgoing turnover rate was 3.9 per cent.
To support supervisors’ leadership skills at TVO and
Posiva, separate training focused on safety leader
-
ship has been organised.
Furthermore, results from a competence survey
implemented earlier will be utilised in personnel plan
-
ning. TVO has taken measures to develop the work
community culture and to reinforce the safety culture.
TVO conducts a personnel survey every one and a
half years, and the next survey is to be conducted in
autumn 2024.
FINANCIAL AND LIQUIDITY RISKS



means of long-term credit commitments and liquid

issuing a new long-term bond as well as Private Place
-
ment credit notes. Market risks have been reduced
with the use of interest rate and currency derivatives.

denominated 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 outlook as well as market
changes to interest rates and corporate loan margins.

current level. This risk has been analysed through
various scenarios based on the changes in the
average interest rate and margin of TVO’s loan port
-
folio. If the risk is realised, the consequences include

production costs.


in various ways. In addition to the international capital



Financing is used to secure TVO’s liquidity under all
circumstances. For this purpose, the Company main
-

revolving credit facilities and liquid assets. It is TVO’s
basic principle to acquire about three quarters of its

one quarter from its shareholders. TVO aims to main
-

is arranged for the Company, not for separate projects.
The trust of shareholders, banks and investors in
TVO’s operations has remained strong also in 2023.

-

during the year, such as the issue of a new public
bond and the Private Placement credit notes.
INCREASE IN THE COST OF FINAL DISPOSAL OF
SPENT NUCLEAR FUEL

(EKA) is not implemented according to plan, project
costs rise or the completion of the project is delayed,


waste management liability for spent fuel.
In September 2023, the Radiation and Nuclear Safety
Authority reported that the safety assessment and
statement on the operating licence application for the
disposal facility for spent nuclear fuel will be post
-
poned until 2024. This will delay the processing of
the operating licence application by the Government

for spent nuclear fuel.
As risk management measures in 2023, industri
-

continued, contracts for the production components

-
sation of the production stage was planned.
RISKS RELATED TO SOCIAL RESPONSIBILITY AND
PERSONNEL MATTERS, THE RESPECT OF HUMAN
RIGHTS AND THE PREVENTION OF CORRUPTION
AND BRIBERY
Risks related to social responsibility and personnel
matters, the respect of human rights and the
prevention of corruption and bribery are a part of the
assessment of sustainability risks. In relation to the

detected during 2023. The possible risks detected in
these areas are addressed according to the Compa
-
ny’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, for their
part, the implementation of the Code of Conduct
in the Company’s operations. The TVO Group has
a whistleblower channel in place, through which
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
7
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
incidents perceived to be against the
Code of Conduct can be reported even
completely anonymously. For projects
and investments, the possible risks are
evaluated where necessary. In addition,
these matters are evaluated according
to a separate process during supplier
evaluations. TVO’s principles for ethical
business and its results are described in
more detail in the chapter Sustainability.
Pending court cases and
disputes
TVO is party to an arbitration procedure
related to the condenser replacement
at OL1 and OL2 that was carried out in
2017 and 2018. The counterparty to
the arbitration is Balcke-Dürr GmbH.
TVO considers the claims presented by
the counterparty in the arbitration to be
unfounded and demands that they be
rejected and that TVO’s legal expenses
be compensated for.

had no other pending court cases or
disputes.
Electricity production
In 2023, the total electricity production
for OL1, OL2 and OL3 amounted to
24,671 (16,351) gigawatt hours.
The plant units operated safely. Regular
electricity production for OL3 started,

Taulukko 1
Pvm
OL1
1.1.2023
897,2
2.1.2023
897,1
3.1.2023
897,4
4.1.2023
896,9
5.1.2023
897,0
6.1.2023
897,0
7.1.2023
897,1
8.1.2023
897,2
9.1.2023
897,2
10.1.2023
897,3
11.1.2023
897,4
12.1.2023
897,3
Pvm
January
1. Annual outage
1
OL1 Production
Average output
MW
1,000
750
500
250
0
May
July
August
October
December
1
Taulukko 1
Pvm
OL2
1.1.2023
892,4
2.1.2023
892,5
3.1.2023
892,5
4.1.2023
892,5
5.1.2023
892,5
6.1.2023
892,4
7.1.2023
892,6
8.1.2023
892,6
9.1.2023
892,5
10.1.2023
892,7
11.1.2023
892,7
12.1.2023
892,4
Pvm
1. Cold shutdown for repair of
the main steam valve
2. Annual outage
3. Cold shutdown, a failed
rotor replacement
1
OL2 Production
Average output
MW
1,000
750
500
250
0
January
May
July
August
October
December
2
3
1
Taulukko 1
Pvm
OL3
1.1.2023

2.1.2023

3.1.2023

4.1.2023

5.1.2023

6.1.2023

7.1.2023

8.1.2023

9.1.2023

10.1.2023

11.1.2023

12.1.2023

Pvm
OL3 Production
Average output
MW
1,700
1,275
850
425
0
January
May
July
August
October
December
1. Maintenance outage for inspections of
feedwater pumps and repairs of impellers
2. Inspection and maintenance outage related
to the pressurizer safety relief valves safety
valve units (PSRV)
3. Warranty test
4. Repairing of the failed temperature
measurement in the generator cooling
system
5. The fault ride-through test
1
2
3
4
5
1
Maintenance outage
for inspections of
feedwater pumps
and repairs of
impellers
Inspection and maintenance
outage related to the
pressurizer safety relief
valves safety valve units
(PSRV Warranty test
Repairing of the failed temperature measure
-
ment in the generator cooling system
The fault ride-
through test
Annual outage
Cold shutdown for repair
of the main steam valve
Cold shutdown, a failed rotor
replacementAnnual outage
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
8
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
takeover of the plant unit for the warranty period in
April 2023. The net production for OL1 was 7,428
(6,932) GWh and the load factor was 95.4 (89.1) per
cent. The net production for OL2 was 6,871 (7,532)
GWh and the load factor was 88.3 (96.8) per cent.
The total load factor for OL1 and OL2 was 91.9
(93.0) per cent.
The net production for OL3 was 10,372 (1,887) GWh
and the load factor was 75.2 (16.9) per cent. The net

after a full year of electricity production.
SIGNIFICANT PLANT EVENTS AT OL1 AND OL2
In August 2023, the authority supervising the
environmental permit issued a comment and inves
-
tigation request regarding a malfunction at OL1’s
and OL2’s debris handling building. Solid material
is extracted from the cooling water at the debris

at the building which were completed in June 2023.
The actions aiming at improving the debris handling
building will continue in 2024, and debris is handled
using temporary arrangements in the meantime.
An unplanned reactor scram occurred at OL2 in
connection with plant unit ramp-up following the
annual outage in May 2023; it was caused by a leak
observed in the condenser. The plant’s safety func
-
tions operated as planned during the situation. The
event did not affect nuclear safety.
A leak was observed in OL2’s water cooled generator in
August 2023, at which time electricity generation was
stopped at the plant unit. The production outage lasted
for 17 days. The failed rotor was replaced and OL2 was
resynchronised with the national grid in September
2023. The event did not affect nuclear safety.

higher on the International Nuclear Event Scale (INES
scale) occurred at OL1 and OL2 in 2023.
Annual outages
The Olkiluoto nuclear power plant is continuously
kept in good condition in terms of production and
functionality through alternating refuelling and
service outages at the plant units.
The 2023 annual outages for the OL1 and OL2 plant
units started on 16 April with a refuelling outage
for the OL1 plant unit. In addition to the refuelling,
various annual preventive maintenance tasks, inspec
-
tions and a modernisation of the turbine hall crane
as well as repairs and tests were performed at OL1.
OL1 resumed electricity production on 26 April 2023.
OL2 underwent a service outage that started on 1
May and ended on 19 May. In addition to the refuel
-
ling, major tasks during the service outage included
turbine I&C renovation, replacement of the contain
-

reactor water level measurement and the replace
-
ment of the off-gas venting system emergency fans.
The annual outages for 2023 were successfully
implemented in adherence to administrative plans
and procedures and pursuant to the Technical

accidents occurred during the annual outages.
In addition to TVO’s in-house personnel, approxi
-
mately 790 subcontractor employees participated in
the annual outage work. Approximately 170 special
-
ists arrived from abroad for the annual outages.
Olkiluoto 3

from a consortium (Plant Supplier) formed by Areva
GmbH, Areva NP SAS and Siemens AG. As stipulated
in the Plant Contract, the consortium companies have
joint and several liability for the contractual obligations.
Test operation for OL3 concluded in April 2023, when
regular electricity production at the plant unit started.

plant unit for the warranty period by submitting the


will take place after the conclusion of the two-year
warranty period. Even after this, the Plant Supplier’s
liabilities under the warranty will remain in force up
to a maximum of eight (8) years to a certain extent.
Commercial operation for OL3 started in May 2023;
among other things, this meant that the capitalisation
of project costs was stopped and amortisation was
started. The charging of shareholders for the variable

was also started on 1 May 2023. The shareholders’
right to electricity generated by OL3 and their
liability for the annual costs incurred from electricity
generation are determined in accordance with TVO’s
Articles of Association.
A Global Settlement Agreement (GSA) was signed in
March 2018 and amended in June 2021 concerning
the completion of the OL3 project and related
disputes. During 2023, the fund established in
accordance with the GSA and funded by the Areva
companies has been used to cover costs incurred to
the Areva companies for the completion of the OL3
project in accordance with the GSA.

in delay compensation agreed upon in 2018 was set

companies under the Plant Contract in May 2023.
Long-term receivables include the additional delay
compensation of EUR 56.7 million to TVO, agreed

takeover of OL3 in April 2025 at the earliest.
Total investment in OL3 was approximately EUR
5.8 billion. EUR 250.0 million was transferred from
the OL3 investment to operating-time fuel (current
assets) when the OL3 plant unit entered commercial
operation.
All realised costs of the OL3 project that can be
recognised in the cost of the asset, including

plant and equipment in the Group balance sheet up
to 30 April 2023. The capitalisation of costs was
discontinued at the start of OL3’s commercial oper
-
ation, which affects the comparability of the Group’s
income statement and balance sheet.

changes can be seen under turnover, materials and
services, depreciation and impairment charges,


can be seen under property, plant and equipment,
inventories and trade and other receivables as well as
deferred income.
SIGNIFICANT EVENTS AT OL3
During 2020–2023, several signal failures were

-
urements at OL3, which resulted in more extensive
inspections being performed. In February 2023, it
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
9
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
was observed that some of the QDC connectors for
temperature measurements were missing either one
or both of the required seals. Shortcomings in seals
were observed in 29 of the 108 QDC connectors that
were inspected. Since the event involved
shortcomings in instructions and the occurrence of
the defect at several locations, the event was esti
-
mated to be at level 1 on the INES scale. According

with an impact on safety. An extended inspection

for safety has been drawn up as a result of this event,
and it will be completed in its entirety by June 2024.
A warranty test measuring different power levels
was started at OL3 in May 2023. During the
warranty test, measurements were performed at
power levels of 100 per cent, 90 per cent and 50 per
cent. The measurements for the test were success
-
fully performed at different power levels, and they
were concluded in June 2023. The analysis of the
results calculated on the basis of these measure
-
ments has been completed as regards the plants
net electrical power and average net electricity

investigations and certain technical measures were
performed at the plant, and a new test at the 100%
power level was performed in December 2023.
At OL3, a deviation occurred from the minimum

in June 2023 when a substitute was not obtained
on time for the night shift. The deviation from

less than two hours until a substitute arrived on


(TechSpecs). Immediately after the event occurred,
TVO initiated actions in order to prevent similar
events. The shortcomings in ways of working that
were revealed during the event are analysed in more
detail in a separate root cause analysis. The event did
not directly affect nuclear safety. According to the

as 1. Even though the basic rating for the event was
0, TVO decided to uprate the class by one due to
factors involving safety culture. TVO submitted an
operational event report concerning the matter to
STUK for approval in August 2023.
Electricity production at OL3 was interrupted for
slightly more than two days in November 2023 due
to a defect observed at the turbine island. During
the fault situation, the plant operated as planned.
The cause of the defect was revealed to be a failed
temperature measurement in the generator cooling
system.
In November 2023, electricity production at OL3
was interrupted for slightly more than 24 hours as a
result of the fault ride-through test. The fault ride-
through test implemented in collaboration with the
grid operator Fingrid involved causing an intentional
grid fault, due to which the plant unit’s protection
functions started and production was automatically
interrupted. The aim of the test was for the grid fault
to not interrupt electricity production at OL3.
Nuclear fuel
In 2023, nuclear fuel purchases amounted to EUR 70
(61) million and the amount consumed to EUR 111
(70) million.
The nuclear fuel and uranium stock carrying value
on 31 December 2023 was EUR 476 (262) million.
Approximately EUR 250 million was transferred from
the OL3 investment to the value of the nuclear fuel
and uranium stock when OL3 entered commercial
operation.
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.

show a provision related to nuclear waste manage
-
ment liability of EUR 1,289 (1,294) million, calculated
according to the international IFRS accounting
principles. TVO’s share in the Finnish State Nuclear
Waste Management Fund, EUR 1,035 (1,000) million,
is presented under assets in accordance with 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.
In order to cover the future costs of nuclear waste
management, the Company makes contributions to
the Finnish State Nuclear Waste Management Fund
in accordance with the Finnish Nuclear Energy Act.
In December 2023, the MEAE set TVO’s liability for
nuclear waste management at EUR 1,918 (1,840)
million for the end of 2023 and the Company’s funding
target in the Finnish State Nuclear Waste Manage
-
ment Fund for 2024 at EUR 1,525 (1,458) million.
In March 2023, the Finnish State Nuclear Waste

management fee for 2022 at EUR 39 million, which
TVO paid on 31 March 2023. In order to supplement
the statutory protected portion, TVO provided the
Nuclear Waste Management Fund with a cash
security of approximately EUR 44 million. The nuclear

March 2024.
In 2023, the investment activities of the Finnish State
Nuclear Waste Management Fund were positive;

from 2023 will be allocated in order to cover the

exceeding that portion will reduce TVO’s nuclear
waste management fee for 2023. In this case, the
cash security for the protected portion that was
submitted to the Fund in 2023 will be returned to
TVO in March 2024.
In June 2023, the MEAE issued a preliminary decision

radioactive waste generated in connection with or as
a result of the operation of Posiva Oy’s encapsulation
plant and disposal facility. According to the decision,
waste may be placed in TVO’s disposal facility for
low and intermediate level waste at Olkiluoto (VLJ
repository). This does not require an amendment
of the terms of the operating licence according to
Section 25 of the Nuclear Energy Act.
In September 2023, STUK issued its decision on the
periodic safety assessment of the VLJ repository.
The decision stated that the level of safety in the VLJ
repository is good in terms of both operational safety
and long-term safety. Furthermore, STUK stated
that TVO has the necessary practices and resources
in place for continuing the operation of the VLJ
repository.
Approximately 8,600 (8,400) m
3
of low and inter-
mediate level operating waste has been generated
during the operation of OL1 and OL2. The waste will
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
10
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
be placed in the repository for low and intermediate
level waste (VLJ repository) at Olkiluoto.
Correspondingly, 1,695 (1,661) tonnes of spent
nuclear fuel has been generated by the end of the year,
of which 34 (32) tonnes in 2023. The spent nuclear
fuel is stored in the fuel pools of the plant units and in
the interim storage for spent nuclear fuel at Olkiluoto.
FINAL DISPOSAL OF SPENT NUCLEAR FUEL

spent nuclear fuel generated at the nuclear power
plants of its owners, TVO at Olkiluoto and Fortum
Power and Heat Oy (Fortum) in Loviisa.

building phase of the encapsulation plant and the

disposal of spent nuclear fuel. The currently ongoing
EKA project entails the implementation of the

tunnels and other additional facilities required for
the disposal facility, the installation of the systems

licence process, and setting up the supply chains
necessary for production operations.
The processing of Posiva’s operating licence
progressed at STUK, and Posiva is submitting
responses to the requests for additional information.
In September 2023, STUK reported that the safety
assessment and statement on the operating licence
application for the disposal facility for spent nuclear
fuel will not be completed in 2023. Work with the
installation and commissioning of systems at the
encapsulation plant progressed as planned. In 2023,
a personnel lift was commissioned between the lifting
equipment building and the underground facilities.

relating to verifying the suitability of the tunnel and


Due to delays in the delivery of certain systems,

disposal using non-irradiated dummy fuel elements),
was postponed until late 2024. The joint functional
test was previously scheduled for late 2023.
Posiva’s owners submitted the annual report for
nuclear waste management in 2022 to the Ministry
of Economic Affairs and Employment at the end of
March 2023.
Research and development activities
A key target of TVO’s research and development (R&D)
activities is to ensure the viability of the current business
functions and to create new business opportunities. The
key focus areas include nuclear power plant operation

disposal of nuclear waste and spent nuclear fuel and
creating new business opportunities for the TVO Group.
The total R&D expenses were EUR 14 (10) million,
of which most were used for R&D related to nuclear
waste management.

of Finnish public research programmes on nuclear
power plant safety and nuclear waste management.

research programmes by the Finnish State Nuclear
Waste Management Fund amounted to a total of
EUR 6 (5) million.
Acquisitions of tangible and intangible
assets and shares
Investments in 2023 amounted to EUR 461 (312)
million.
The parent company’s investments amounted to EUR
449 (339) million. EUR 370 (276) million was allocated
to the OL3 project. EUR 79 (63) million was allocated
to OL1, OL2, the operating period of OL3 (during
2023) and the general infrastructure of the area.
Hitachi Energy and TVO signed a turnkey contract in
the summer of 2021 about delivering one of Europe’s
largest battery energy storage systems to Olkiluoto.
The 90-megawatt system will support the entire
energy network in a potential production disturbance
of the OL3 plant unit, thus minimising the effect of

grid load limitation. The battery energy storage

acceptance was postponed to 2024.
Carbon credits worth EUR 0.1 (0.1) million have been
relinquished to the Energy Authority. In 2023, carbon
credits worth EUR 0.1 (0.1) million were acquired.
The carbon credits acquired covered the Company’s

Sustainability
Sustainability is one of TVO’s values. The TVO Group

-
ment, people and the economy through a materiality

 Safe, climate-friendly and stable electricity production
 
competence
3. Transparent and ethical business
 Responsibility in the supply chains and partnerships
5. Creation of added economic value
6. The development and support of employees’
competence
7. Fair and healthy work community
8. Biodiversity and sustainable land use
9. Minimising releases into the air, water and soil
 
The TVO Group and its entire personnel are committed
Safety).
The Group-level policies, approved by the Manage
-
ment Group, outline key objectives related to respon-

»
Nuclear safety and quality policy
»
Sustainability policy
»
Production policy
»
Corporate safety and security policy.
The principles of sustainable business 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 personnel as well as
partners and subcontractors. The TVO Group’s Code
of Conduct complies with the OECD Guidelines
for Multinational Enterprises. TVO considers any
non-compliance with its Code of Conduct unaccept
-
able. The Code of Conduct is published on TVO’s
website at .
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
11
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Through its actions, the TVO Group is committed to
advancing the following sustainable development

TVO has an ESG risk assessment implemented
by Sustainanalytics. In the assessment, TVO has
a risk level of 20.5, which is at the lower end of
Sustainanalytics’ Medium Risk category (20–30,
Medium ESG risk).
NUCLEAR PROFESSIONALISM
The development of management principles and
working policies in a nuclear power plant has been

is, expectations for working at a nuclear facility, and
taking action in order to reinforce these expectations.
The expectations for a nuclear professional are part
of TVO’s activity-based management system.
Nuclear professionalism and leadership are system
-
atically developed at the TVO Group. The Nuclear
Professionalism Group is tasked with developing
nuclear professionalism and thinking of ways in
which human factors could be considered in the
everyday work even better. The group’s long-term
plan takes into account the areas for improvement
and leverages the entire organisation to work
towards them. In 2023, for example, the organisation
had extensive discussions on safety culture based
on World Nuclear Association of Nuclear Operator’s
(WANO) educational narrative concerning safety
culture. Nuclear professionalism is also developed in
connection with regular plant walkdowns.
Development of leadership is also performed
systematically. Annually, areas for improvement are

self-assessments and the needs of the organisation.
Development in 2023 was related to the leadership
of cross-organisational processes and harmonising
practices across the three plant units.
are broken down in the Sustainability Roadmap for
2030 that is available as part of TVO’s Annual and
Sustainability Report.
TVO reports on its corporate responsibility in
accordance with the Global Reporting Initiative (GRI)
standards. TVO’s Annual and Sustainability Report
2023 is published on the Company’s website at
. The information
in the sustainability report has been subjected to a
limited audit by an external party. The information
in the Environmental Report, which is published

TVO is preparing for reporting pursuant to the CSRD
standard from 2024 onwards. According to the
double materiality analysis, the sustainability topics


SUSTAINABILITY OBJECTIVES AND RESULTS
The objectives for sustainability are based on
continuous improvement of operations. The
objectives are used to monitor the implementation

broader sustainability objectives for the TVO Group
 
Reputation index >75 84

category
A+ A
Reports suspecting violations of
the Company’s Code of Conduct
0 3
Sick leaves, % Less than 3% 2.8%
Occupational accident
frequency
3.5 3.9
Collective radiation dose,
manmSv
648.5 597.7
Environmental damage, pcs 0 0
Unplanned energy unavailability
(OL1 and OL2), %
<0.4 2.9

trips (OL1 and OL2), 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 2025.
Personnel survey: The personnel survey was conducted in the
beginning of 2023. The survey is conducted every 18 months. The
evaluation scale from highest to lowest result is AAA–C, where A is
satisfactory.
Occupational accident frequency: per million working hours. The
indicator is Group-level, including Posiva and TVO’s and Posiva’s
subcontractors.
Collective radiation dose: World Association of Nuclear Operators


Environmental incidents:
Unplanned energy unavailability factor: % of total production.
RESULTS OF ETHICAL BUSINESS
TVO does not tolerate any kind of corruption, bribery
or extortion. The TVO Group’s Code of Conduct
approved by the Board of Directors requires 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 aims to guarantee good, safe
working conditions for everyone. In accordance with
its Code of Conduct, TVO will not tolerate discrimi
-
nation or harassment based on age, gender, ethnic
background, religion, life philosophy, opinion or other
personal characteristic. TVO observes an equality
and equal opportunity plan.
All personnel, partner and subcontractor activities
at Olkiluoto are supervised by TVO. TVO only
purchases products and services from evaluated
and approved suppliers. All products and services
acquired must meet the requirements for safety,
quality and the environment as well as the principles
of sustainable business described in the Code of
Conduct. TVO’s supplier evaluation also includes

Supplier evaluations are used to ensure that suppliers
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
12
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
pay appropriate attention to environmental issues,
the well-being of personnel and quality management.
During 2023, 140 suppliers were reviewed by using
various methods.
The TVO Group has in place a whistleblowing
channel for reporting any Code of Conduct violations
and suspicions of the misuse of insider information,
which can also be used anonymously. All reports of
possible Code of Conduct violations are processed
by TVO’s Internal Audit in a manner that guarantees
under all conditions the rights and privacy of the
person making the report and the person suspected
of a possible Code of Conduct violation or misuse of
insider information.
During 2023, Internal Audit investigated three
reports of possible violations of the TVO Group’s
Code of Conduct. These reports have been investi
-
gated and the necessary actions have been taken.
The reports are included in Internal Audit’s reports to
the Audit and Finance Committee and the Board of
Directors.
SAFETY

The safe operation of the Olkiluoto nuclear power
plant relies on competent and responsible personnel,
high-quality plant technology, the principle of contin
-
uous improvement and independent internal and
external supervision. TVO’s activity-based manage
-
ment system meets the requirements of the ISO
9001 standard. In order to ensure safe operations,
TVO systematically assesses the level of its safety
and safety culture, and all of TVO’s employees are
committed to a strong safety culture.
TVO regularly assesses the state of overall safety in
terms of production, nuclear safety, security and service
life management as well as leadership, the organisation
and personnel. The overall level of safety is good.
The state of the safety culture is regularly assessed
according to the IAEA’s procedure. TVO’s safety
culture is estimated to be at a level where the stra
-
tegic importance of safety has been recognised and
proactive practices are employed. TVO aims to reach
the highest possible level of safety culture. TVO has
continued to employ various measures to maintain
and develop the safety culture.
TVO regularly assesses and develops the operation
of its plant units with the help of internationally used
safety indicators. The results for the safety indicators
collective radiation dose, unplanned energy unavail
-

described in the table “Sustainability objectives and
Sustainability).
The Olkiluoto nuclear power plant units, OL1, OL2
and OL3, operated safely throughout the year.

accordance with the INES scale. In 2023, 10 events
rated as INES level 0 (no nuclear or radiation safety

(anomaly, exceptional incident with safety effects)
took place at the Olkiluoto plant. TVO analyses
and investigates all events that may have affected


events of public interest on its website.

The occupational health and safety operations are

and safety system (OHS system). The system also
covers TVO’s share of the OL3 construction phase.
In 2023, the TVO Group’s vital industrial safety princi
-

 Safety is your responsibility
 Identify hazards and manage risks
3. Take care of your wellbeing
 Safe movement and transportation
5. Wear required personal protective equipment.
The TVO Group’s goal for accident frequency in 2023
was 3.5 (accidents per one million work-hours). The
goal was not achieved for accident frequency, as
the accident frequency at Olkiluoto in 2023 was 3.8.
The accident frequency considers TVO’s personnel,
Posiva’s personnel and all subcontractors working at
Olkiluoto, with the exception of the OL3 worksite until
May 2023, which was reported by the Areva–Siemens
plant supplier consortium. No lost time occupational
accidents occurred during the annual outages.

in more detail in the Annual and Sustainability Report
.
THE ENVIRONMENT
TVO is committed to observing the principles
of sustainable development, and environmental
responsibility is a part of the Company’s manage
-
-
mental management systems meet the requirements
of the international ISO 14001 standard and the

improvement and raising the level of environmental
protection.
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. Environmental risks have also been

impact on operations were detected. 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.

Olkiluoto nuclear power plant are the production of
climate-friendly electricity and the local warming
of the sea water near the plant. The cooling water
temperature remained within the limits required by
the environmental permit.
As in previous years, the environmental load caused
by the Olkiluoto nuclear power plant was minor in
2023. The environmental authorities are informed of


»

OL2 screening recovery plant, and of the completion of

Reports of potential violations of the Code of
Conduct





Reports related to the Code of
Conduct (corruption, bribery,
extortion) 0 0
Reports related to the Code of

0 0
Reports related to the Code of
Conduct (inappropriate behaviour)
2 2
Others (matters not in the scope of
the Code of Conduct)
1 1
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
13
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
»
abnormal conditions occurring in the operation of the
wastewater treatment plant in the spring of 2023 and
»
the higher than planned consumption of hydrazine at
OL3 and the one-off discharge into sea in December
2023.
The impacts on water systems of the debris handling
bypasses have been monitored according to a plan
approved by the authority, and the results will be
reported during spring 2024. Radioactive releases
into the air and water were clearly below the annual
regulatory limits.
Operations were developed in accordance with the
requirements of the environmental permits and the
environmental management system. According to
the principle of continuous improvement, goals are
set for operations in the Environment and Energy

in the Environment Group consisting of experts


2017–2025, the savings target is 150 GWh.
This target was already achieved in 2019, so an
additional savings target of 500 MWh was set for
2022–2023.
The Olkiluoto water management project for securing
the supply of raw water and building a transfer
sewer for wastewater was completed during 2023.
Going forward, municipal wastewater from Olkiluoto
will be routed via the transfer sewer to the Rauma
wastewater treatment plant for processing. The
processing of wastewater in a larger unit allows for

caused on the water systems. Expansion work for the
regional heating network continued.
On 10 October 2023, the Regional State Administra
-
tive Agency for Southern Finland granted an environ-
mental permit for the construction of a near-surface

TVO started preparations for an environmental
impact assessment (EIA) procedure concerning the
possible service life extension and power uprating of
the OL1 and OL2 plant units.

to the environment and the results from the Envi
-

reported in more detail in the Environmental Report
that is published separately. The information is

GROUP PERSONNEL AND TRAINING

The TVO Group’s Code of Conduct and policies lay
down the principles of personnel policy. The objective
of the TVO Group is to provide a fair and healthy
work community that promotes equality and does not
condone any form of discrimination.
At the end of the year, the total number of personnel in
the Group was 1,045 (1,007) and the average during
the year was 1,057 (1,031) persons. At the end of the
year, the total number of personnel at TVO was 1,043
(1,005) and the average during the year was 1,055
(1,029) persons. At the end of the year, the total number
of permanent personnel at TVO was 1,009 (984).
TVO recruited 64 (87) new employees. During
the year, 39 (66) permanent employees left TVO,
including 7 (16) who retired. TVO’s sick leave
percentage was 2.8 (3.8).
The collective labour agreements for various
personnel groups in the energy industry are in force
in accordance with agreements between the central
organisations until early 2025. 100 per cent of
TVO’s personnel (senior management excluded) are
working under collective labour agreements.
The Group carries out a personnel survey approxi
-
mately every 18 months. The results of the survey,
performed by Eezy Spirit Oy, were received in
February 2023. The response rate was 94 per cent,
and the People Power index representing the overall

improved from the previous survey, even though the
rating remained in category A (satisfactory). The next
personnel survey will be conducted in late 2024.
Personnel performance, workload and coping at
work are monitored through navigation discussions
arranged three times a year. Personnel admission
and exit interviews are held at all levels of the Group.
Supervisors are instructed in the general and profes
-
sional induction training of new employees before
new recruits begin their work. Summaries are drawn
of both admission interviews of new employees and
exit interviews of personnel leaving the Group, and
the results are utilised in developing operations.
The Group’s management and operational culture
is developed with the help of the Better Workplace
Programme. The goals of the programme include

good preconditions for operations by developing
matters 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 2023, the
goals of the programme have included increasing
transparency in decision-making by, among other
things, describing the key decision-making forums;
the involvement of personnel in the strategy process
has also been continued. Other goals have included
communicating on the Group’s various development
projects and brainstorming common rules and

The focus of occupational health care has continued
to be on preventative occupational health care, which
supports the employees’ health and ability to work and
function, as well as their maintenance and development.
The matters concerning personnel in 2023 and the

detail in the Annual and Sustainability Report.

An annual training programme is implemented
in the TVO Group as a tool for personnel devel
-
opment and the planning of training. 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.
As in previous years, basic training, supplementary
training and continuing training for the Groups
personnel were arranged according to the annual
training programme. The personnel received a total of
10,511 (11,680) days of training, equalling on average
9.9 (11.6) days per TVO employee (incl. TVONS).
Persons managing tasks that directly or indirectly
impact the safety of a nuclear facility are required
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
14
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

requirements and nuclear power technology and the

-
sible tasks within their task area.
In 2023, operators of OL1, OL2 and OL3 participated
in operations training days and advanced simulator
courses in the spring and autumn as required by their
refresher training programme.
The Nuclear Professional Leader (NPL) training
programme launched in 2021 for the further devel
-
opment of supervisor skills was continued. The aim
of the training 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.
The TVO Group participated in the implementation
of a national nuclear safety and waste management
training course (YJK) together with other major actors
in the industry. The Group also implemented the
Nordic Nuclear Trainee programme together with
Swedish nuclear power plants and Fortum’s nuclear
power plants in Loviisa. The purpose of the training
is to raise the students’ interest towards the nuclear
industry as an employer and to help them see the
opportunities nuclear power can offer in the future.
The matters concerning competence management

reported in more detail in the Annual and Sustaina
-
bility Report.
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 in according to a set of minimum social
safeguards aimed to ensure companies follow the
most important human rights related principles.

The technical screening criteria are available for



protection of water and marine resources, transition
to a circular economy, pollution prevention and
control and the protection and restoration of biodi
-



screening criteria for certain activities related to
nuclear energy production and energy production
from natural gas. Nuclear energy and activities
related to nuclear energy are low-carbon activities
that can substantially contribute to climate change
mitigation. Nuclear energy generation has near to
zero greenhouse gas emissions in the energy gener
-
ation phase
1
. In the EU Taxonomy, nuclear energy

transitional activities. Nuclear energy facilitates
the deployment of renewable energy sources and
does not hamper the development of low carbon
alternatives.


2023, the reporting requirements are governed by the

and the reporting requirements set in the corporate


starting 01.01.2024 and onwards. Companies

need to disclose information on how and to what
extent their activities associate with economic activi
-
ties that qualify as environmentally sustainable. TVO


activities related to the production of nuclear energy.
TVO is therefore required to publish information on
KPIs related to their eligible and aligned activities.
1)

and the Final Report of the Technical Expert Group on
Sustainable Finance from March 2020
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
15
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 2024 (Commission Delegated

requirements in the consolidated Disclosures Dele
-
gated Act of 1 January 2024 (Commission Delegated


screening criteria for the remaining environmental
objectives was also reviewed to assess eligibility, but

were found relevant for TVO’s operations.


The TVO Group reports the proportion of the Taxon-
omy-eligible, non-eligible and Taxonomy-aligned
economic activities in relation to the following key

capital expenditure KPI and the operating expendi
-
ture KPI. The KPI information is presented in tabular
forms using the mandatory templates.
The EU Taxonomy KPIs are calculated from data

the same data and accounting principles as the TVO


in Notes to the Consolidated Financial Statements).
The Consolidated Financial Statements of the TVO
Group have been prepared in accordance with
International Financial Reporting Standards (IFRS)
which have been approved in the European Union.

accordance with the IAS and International Financial
Reporting Standards and SIC and IFRIC interpreta
-
tions effective on 31 December 2023. In the Finnish
Accounting Act and regulations issued by virtue of
it, “IFRS” refers to the standards and interpretations
which have been endorsed by the EU in accordance



Financial Statements 2023 and ensured that no


set out in the Disclosures Delegated Act.
The turnover KPI is based on the TVO Group’s
turnover in the Consolidated Financial Statements.
The taxonomy-aligned turnover consists of the sales
of electricity to shareholders. Non-taxonomy-aligned

subsidiary TVO Nuclear Services Oy’s turnover.
The CapEx KPI is based on additions made to
property, plant and equipment, intangible assets and
right-of-use assets. More detailed information on


The OpEx KPI is based on direct non-capitalised
costs 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. The OpEx numerator includes mainte
-
nance costs and nuclear waste management costs.
Green Bond Framework
TVO established a Green Bond Framework in
summer 2023 to integrate sustainability into its

the Green Bond Framework was done in December
2023 when TVO issued a green private placement of
EUR 280 million of Green Notes. The funds obtained
from the issue have been 100% allocated to EU

OL3 EPR Nuclear Power Plant construction Capital
Expenditure. Allocation of the funds comply with the
Green Bond Framework of TVO, based on environ
-
mentally friendly electricity production at the TVO’s
three nuclear power plant units in Olkiluoto, as well
as on the responsible arrangement of nuclear waste
management.

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.
Nuclear and fossil gas related activities as required by

2
 
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
2)

REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
16
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

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

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 most relevant Taxonomy-eligible

electricity production at OL3 and the electricity

and OL2. The operations at OL3 fall under Taxonomy

nuclear power plants, for the generation of electricity
or heat, including for hydrogen production, using
best-available technologies, while operations at OL1

generation from nuclear energy in existing installa
-

Taxonomy regulation Article 10 (2)
3
.
3)


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 objectives (DNSH). 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 documentation was available and
included the required information. Member State
compliance was checked in dialogue with the Ministry
of Economic Affairs and Employment. The assessment
procedure and results of compliance with the substan
-
tial contribution criteria are presented in Table 2 and
of compliance with the DNSH criteria in Table 3.
Based on the alignment assessments and KPI alloca
-
tion, 99.6% of the TVO Group’s consolidated turn-
over is taxonomy-aligned and 100% of the taxono-
my-relevant CapEx and OpEx is taxonomy-aligned.
The operations at OL1 and OL2 constitute 40.3%
percent of the aligned turnover, 15.0% percent of
aligned CapEx and 70.1% percent of the aligned
OpEx. Operations at OL3 constitute 59.3% percent of
turnover, 85.0% percent of the CapEx and 29.9% of

development of OL3. Commercial electricity produc
-
tion started at OL3 and affected to turnover, Capex
and OpEx KPI’s. During the OL3 project, all realised

that can be recognised in the cost of the asset have
been entered as property, plant and equipment in
the Group’s balance sheet. The capitalisation of costs
was discontinued at the start of OL3’s commercial
operation, which affects the comparability of the
Group’s income statement and balance sheet.

In the table below, are the proportions of aligned and
non-eligible activities of the TVO Group’s turnover,

31 December 2023. Detailed information on the KPIs
Key performance indica
-
tors. The OpEx numerator includes maintenance
costs and nuclear waste management costs. All







Turnover EUR 876,204 99,6% 0,4%
Operating expenditure EUR 177,234 100% 0,0%
Capital expenditure EUR 460,614 100% 0,0%
activities are related to the climate change mitigation
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 0.4 percent.

Regarding the minimum safeguards, TVO is
committed to respecting internationally recognised
human rights and principles and rights at work, in
particular the International Bill of Human Rights
and the UN Guiding Principles on Business and
Human Rights, in addition to the OECD Guidelines
for Multinational Enterprises and the fundamental
ILO Principles and Rights at Work. TVO ensures its
compliance with the minimum social safeguards as
required in Article 18 of the Taxonomy Regulation
through company policies and compliance with
national labour legislation. TVO’s principles for ethical
business and its results are described in more detail
in the chapter Sustainability.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
17
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

 
Climate change adaptation 
described in the chapter Risk management, major risks and uncertainties
low sea water levels and other meteorological variables. The relevant legislation, the Nuclear Energy Act and the Radiation and Nuclear Safety Authority in Finland (STUK) regulatory guides, also ensure compliance with Article 6(b), Article

Sustainable use and protection of water
and marine resources
Environmental impacts of TVO’s activities on water quality and temperature are monitored as required by the environmental permit, is part of the environmental management system (EMAS, ISO 14001) and ensures compliance with
relevant regulations and guidelines constituting the criteria. TVO also monitors other aspects of environmental impacts of operations related to water use and impact. Details on how TVO manages environmental impacts can be found in
the Annual and Sustainability Report.
Transition to a circular economy TVO has plans in place to manage radioactive and non-radioactive waste as part of waste management procedures and the environmental management system (EMAS, ISO 14001). Environmental impact assessments (EIA) are in place


Pollution prevention and control 

relevant chemical legislation and effects are monitored.
Protection and restoration of biodiversity
and ecosystems
Environmental Impact Assessments for all sites are in place and address impacts on biodiversity. All environmental impacts are monitored through the environmental management system (EMAS, ISO 14001).
Description of how alignment with substantial contribution criteria was ensured. The assessment description is common for both activities as the requirements are almost identical.
 

 CapEx OpEx
4.27
Construction and safe operation of
new nuclear power plants, for the
generation of electricity or heat, in-
cluding for hydrogen production, us-
ing best-available technologies
Construction and safe operation of new nuclear installations for which the construc-
tion permit has been issued by 2045 by Member States’ competent authorities, in
accordance with applicable national law, to produce electricity or process heat, in
-
cluding for the purposes of district heating or industrial processes such as hydrogen
production (new nuclear installations), as well as their safety upgrades.
TVO recognises the activity relates to operations at Olkiluoto 3.
Legal compliance on national level was checked in dialogue with the Finnish Ministry of Economic
Affairs and Employment.
Legal compliance on operational level was determined by checking that all relevant documentation
was available and included the required information.

-
aged by Posiva Oy. Information on radioactive waste management and disposal can be found in

Lifecycle GHG emissions were calculated for all plants collectively with a GWP-total without down-
stream infra 9.1 g CO
2

2

100 g CO
2

2

to OL3 test phase and are estimated to decrease in future years.
4.28 Electricity generation from nuclear
energy in existing installations

authorised by Member States’ competent authorities by 2040 in accordance with
applicable national law, of the service time of safe operation of nuclear installations
that produce electricity or heat from nuclear energy (‘nuclear power plants).
TVO recognises that the activity relates to operations at Olkiluoto 1 and Olkiluoto 2.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
18
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

Key performance indicatorsTVO’s Taxonomy-aligned turnover 2023
   
  









 Water

  





 Water

  













EUR
1,000 %
Y; N;

Y; N;

Y; N;

Y; N;

Y; N;

Y; N;
        % E T

A.1 Environmentally sustainable activities (Taxonomy-aligned)
Construction and safe operation of new
nuclear power plants, for the generation
of electricity or heat, including for
hydrogen production, using best-available
technologies
CCM 4.27
CCA 4.27 519,393 59.3% Y N     Y Y Y Y Y Y Y 2% T
Electricity generation from nuclear energy
in existing installations
CCM 4.28
CCA 4.28 353,476 40.3% Y N     Y Y Y Y Y Y Y 97% T
Turnover of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 872,868 99.6% 99.6% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 99%
Of which enabling 0 0.0% 0.0% 0.0% 0.0% 0.0 % 0.0% 0.0% Y Y Y Y Y Y Y 0%
Of which transitional 872,868 99.6% 99.6% Y Y Y Y Y Y Y 99% T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
EL;

EL;

EL;

EL;
  
Turnover of Taxonomy-eligible but not
environmentally sustainable activities
(not-Taxonomy-aligned activities) (A.2) 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0%
A. Turnover of Taxonomy-eligible activities
(A.1 + A.2) 872,868 99.6 99.6% 0.0% 0.0% 0.0% 0.0% 0.0% 99%

Turnover of Taxonomy-non-eligible
activities 3,336 0.4%
TOTAL 876,204 100.0%
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
19
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
TVO’s Taxonomy-aligned CapEx 2023
   
  CapEx









 Water

  





 Water

  













EUR
1,000 %
Y; N;

Y; N;

Y; N;

Y; N;

Y; N;

Y; N;
        % E T

A.1 Environmentally sustainable activities (Taxonomy-aligned)
Construction and safe operation of new
nuclear power plants, for the generation
of electricity or heat, including for
hydrogen production, using best-available
technologies
CCM 4.27
CCA 4.27 391,557 85.0% Y N     Y Y Y Y Y Y Y 78% T
Electricity generation from nuclear energy
in existing installations
CCM 4.28
CCA 4.28 69,058 15.0% Y N     Y Y Y Y Y Y Y 22% T
CapEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 460,614 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 100%
Of which enabling 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 0%
Of which transitional 460,614 100.0% 100.0% Y Y Y Y Y Y Y 100% T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
 

EL   
CapEx of Taxonomy-eligible but not
environmentally sustainable activities
(not-Taxonomy-aligned activities) (A.2) 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0%
CapEx of Taxonomy-eligible activities
(A.1 + A.2) 460,614 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%

CapEx of Taxonomy-non-eligible activities 0 0.0%
TOTAL 460,614 100.0%
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
20
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
TVO’s Taxonomy-aligned OpEx in 2023
   
  OpEx









 Water

  





 Water

  













EUR
1,000 %
Y; N;

Y; N;

Y; N;

Y; N;

Y; N;

Y; N;
        % E T

A.1 Environmentally sustainable activities (Taxonomy-aligned)
Construction and safe operation of new
nuclear power plants, for the generation
of electricity or heat, including for
hydrogen production, using best-available
technologies
CCM 4.27
CCA 4.27 52,970 29.9% Y N     Y Y Y Y Y Y Y 0% T
Electricity generation from nuclear energy
in existing installations
CCM 4.28
CCA 4.28 124,263 70.1% Y N     Y Y Y Y Y Y Y 100% T
OpEx of environmentally sustainable
activities (Taxonomy-aligned) (A.1) 177,234 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 100%
Of which enabling 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% Y Y Y Y Y Y Y 0%
Of which transitional 177,234 100.0% 100.0% Y Y Y Y Y Y Y 100% T
A.2 Taxonomy-eligible but not environmentally sustainable activities (not Taxonomy-aligned activities)
 

EL   
OpEx of Taxonomy-eligible but not
environmentally sustainable activities
(not-Taxonomy-aligned activities) (A.2) 0 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 0%
OpEx of Taxonomy-eligible activities
(A.1 + A.2) 177,234 100.0% 100.0% 0.0% 0.0% 0.0% 0.0% 0.0% 100%

OpEx of Taxonomy-non-eligible activities 0 0.0%
TOTAL 177,234 100.0%
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
21
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION










    
1. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to

the applicable KPI
0 0.0% 0 0.0% 0 0.0%
2. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to

the applicable KPI
519,393 59.3% 519,393 59.3% 0 0.0%
3. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to

the applicable KPI
353,476 40.3% 353,476 40.3% 0 0.0%
4. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to

the applicable KPI
0 0.0% 0 0.0% 0 0.0%
5. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to

the applicable KPI
0 0.0% 0 0.0% 0 0.0%
6. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to

the applicable KPI
0 0.0% 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 in
the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0%
8.
Total applicable KPI
     









    
1. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to

the applicable KPI
0 0.0% 0 0.0% 0 0.0%
2. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to

the applicable KPI
391,557 85.0% 391,557 85.0% 0 0.0%
3. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to

the applicable KPI
69,058 15.0% 69,058 15.0% 0 0.0%
4. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to

the applicable KPI
0 0.0% 0 0.0% 0 0.0%
5. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to

the applicable KPI
0 0.0% 0 0.0% 0 0.0%
6. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to

the applicable KPI
0 0.0% 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 in
the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0%
8.
Total applicable KPI
    
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
22
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION









    
1. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to

the applicable KPI
0 0.0% 0 0.0% 0 0.0%
2. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to

the applicable KPI
52,970 29.9% 52,970 29.9% 0 0.0%
3. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to

the applicable KPI
124,263 70.1% 124,263 70.1% 0 0.0%
4. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to

the applicable KPI
0 0.0% 0 0.0% 0 0.0%
5. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to

the applicable KPI
0 0.0% 0 0.0% 0 0.0%
6. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to

the applicable KPI
0 0.0% 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 in
the denominator of the applicable KPI
0 0.0% 0 0.0% 0 0.0%
8.
Total applicable KPI
    
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
23
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION









    
1. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
2. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to

applicable KPI
519,393 59.5% 519,393 59.5% 0 0%
3. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to

applicable KPI
353,476 40.5% 353,476 40.5% 0 0%
4. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
5. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
6. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
7. Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above in
the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0%
8. Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the applicable
KPI
    









    
1. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
2. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to

applicable KPI
391,557 85.0% 391,557 85.0% 0 0%
3. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to

applicable KPI
69,058 15.0% 69,058 15.0% 0 0%
4. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
5. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
6. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
7. Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above in
the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0%
8. Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the applicable
KPI
    

REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
24
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION









    
1. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.26 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
2. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.27 of Annexes I and II to

applicable KPI
52,970 29.9% 52,970 29.9% 0 0%
3. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.28 of Annexes I and II to

applicable KPI
124,263 70.1% 124,263 70.1% 0 0%
4. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.29 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
5. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.30 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
6. Amount and proportion of taxonomy-aligned economic
activity referred to in Section 4.31 of Annexes I and II to

applicable KPI
0 0.0% 0 0.0% 0 0%
7. Amount and proportion of other taxonomy-aligned
economic activities not referred to in rows 1 to 6 above in
the numerator of the applicable KPI
0 0.0% 0 0.0% 0 0%
8. Total amount and proportion of taxonomy-aligned
economic activities in the numerator of the applicable
KPI
    
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
25
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION









    
1. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
2. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
3. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
4. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
5. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
6. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
7. Amount and proportion of other taxonomy-eligible but
not taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the applicable
KPI
0 0.0% 0 0.0% 0 0.0%
8. Total amount and proportion of taxonomy eligible
but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
  









    
1. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
2. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
3. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
4. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
5. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
6. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
7. Amount and proportion of other taxonomy-eligible but
not taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the applicable
KPI
0 0.0% 0 0.0% 0 0.0%
8. Total amount and proportion of taxonomy eligible
but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
  
The amount and proportion of taxonomy-eligible but not taxonomy-aligned economic activities.
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION









    
1. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
2. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
3. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
4. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
5. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
6. Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated Regulation

0 0.0% 0 0.0% 0 0.0%
7. Amount and proportion of other taxonomy-eligible but
not taxonomy-aligned economic activities not referred to
in rows 1 to 6 above in the denominator of the applicable
KPI
0 0.0% 0 0.0% 0 0.0%
8. Total amount and proportion of taxonomy eligible
but not taxonomy-aligned economic activities in the
denominator of the applicable KPI
  
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

   
1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
2. Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
3. Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
4. Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
5. Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
6. Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
7. Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6
above in the denominator of the applicable KPI
3,336 0.4%
8. Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the
applicable KPI
 

   
1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
2. Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
3. Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
4. Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
5. Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
6. Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
7. Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6
above in the denominator of the applicable KPI
0 0.0%
8. Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the
applicable KPI

Taxonomy non-eligible economic activities.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
28
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

   
1. Amount and proportion of economic activity referred to in row 1 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
2. Amount and proportion of economic activity referred to in row 2 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
3. Amount and proportion of economic activity referred to in row 3 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
4. Amount and proportion of economic activity referred to in row 4 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
5. Amount and proportion of economic activity referred to in row 5 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
6. Amount and proportion of economic activity referred to in row 6 of Template 1 that is taxonomy-non-

denominator of the applicable KPI
0 0.0%
7. Amount and proportion of other taxonomy-non-eligible economic activities not referred to in rows 1 to 6
above in the denominator of the applicable KPI
0 0.0%
8. Total amount and proportion of taxonomy-non-eligible economic activities in the denominator of the
applicable KPI

REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
29
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

obligations related to the grid protection system to
TVO. In the decision, the Energy Authority requires

-
mation a presentation of the principles based on
which the costs of the protection system will be
covered. So far, TVO has covered the majority of the
costs.
Prospects for the future
-
tion is anticipated to continue steadily across all three
plant units. Nuclear fuel availability is guaranteed by
long-term agreements.

will begin on 2 March and is planned to end on 8
April 2024. Preparations are also made for a service
outage at OL1 and a refuelling outage at OL2.

conditions of the Settlement Agreement signed with
OL3’s Plant Supplier. This agreement signed in March
2018 and amended in June 2021 contains conditions
which continue until the end of the warranty periods.
Posiva will resume the implementation of the EKA

Proposals to the Annual General Meeting
Teollisuuden Voima Oyj’s distributable equity as of 31
December, 2023 amounted to EUR 20,938,560.00.
The Board of Directors proposes to the Annual
General Meeting that no dividend shall be paid.
Subsidiaries and joint ventures
TVO Nuclear Services Oy (TVONS) is a wholy-owned
subsidiary of TVO. TVONS provides its 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 networks of
TVO’s personnel are at the disposal of TVONS’
customers.
Posiva Oy, jointly owned by TVO and Fortum, is

disposal of spent nuclear fuel from its shareholders’
Olkiluoto and Loviisa nuclear power plants. Posiva
Solutions Oy (PSOY) is a wholly-owned subsidiary of
Posiva. As stated in its Articles of Association, PSOY
provides nuclear waste management consultancy
services as well as related planning and research and
development activities.

year
An environmental impact assessment programme
(EIA programme) concerning the possible service life
extension and power uprating of the OL1 and OL2
was submitted to the Ministry of Economic Affairs
and Employment (MEAE), which acts as the coordi
-
nating authority, on 5 January 2024.
The Energy Agency has issued a decision on the
protection of the grid connected to the full power
production of OL3 on January 12, 2024. The decision

system of the transmission system operator and
under the responsibility of the national grid company
Fingrid Oyj. In its decision, the Energy Agency
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
30
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

     
Turnover 876 358 299 275 254
 164 -48 -20 0 87
Research expenses 14 10 12 12 15
Depreciation 179 47 44 45 45
Investments
1)
461 312 578 56 369
Equity 2,252 2,218 2,063 2,043 1,819
Subordinated shareholder loans (hybrid equity) (included in the former)
3) 5)
929 929 929 929 679
Non-current and current interest-bearing liabilities (excluding loan from VYR)
2)
4,676 4,831 4,337 4,281 4,370
Loan from VYR
2)
728 651 711 716 591
Provision related to nuclear waste management 1,289 1,294 1,368 1,030 1,041
Balance sheet total 9,229 9,171 8,662 8,181 7,942
Equity ratio, %
4)
31.2 30.7 31.3 31.7 28.8
Average number of personnel 1,057 1,031 1,004 984 943
1)

2)

3)

3)

balance sheet total - provision related to nuclear waste management - loan from the Finnish State Nuclear Waste
Management Fund
5)

included in equity according to IFRS standards.
     
 164 -48 -20 0 87
The impact of the nuclear waste management obligation
1)
 -13 36 17 6 -80
Other IFRS adjustments -33 0 0 0 -1
The impact of joint ventures 0 2 -1 3 -1
 118 -10 -4 9 5
 118 -10 -4 9 5
1)

     
TVO’s share in the Finnish State Nuclear Waste Management Fund (VYR) 1,458 1,436 1,451 1,479 1,514
TVO’s funding target obligation to
the Finnish State Nuclear Waste Management Fund 1,525 1,458 1,436 1,451 1,471
The carrying value of TVO’s share in
the Finnish State Nuclear Waste Management Fund (non-current assets)
1,035 1,000 1,010 1,030 1,041
See note 24 Assets and provisions related to the nuclear waste management obligation.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
31
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION



     
Turnover 873 353 294 271 251
 118 -10 -4 8 5
Fuel costs 111 70 61 64 65
Nuclear waste management costs 106 100 41 28 -5
 266 37 38 34 39
Investments
1)
449 339 220 52 278
Equity 864 864 861 861 857
Appropriations 299 181 193 197 193
Non-current and current interest-bearing liabilities (excluding loan from
VYR and loans from equity holders of the company)
2)
4,610 4,798 4,277 4,180 4,282
Loans from equity holders of the company
3)
929 929 929 929 679
Loan from VYR
2)
728 651 711 716 591
Balance sheet total 7,714 7,602 7,156 6,995 6,724
Equity ratio, %
4)
30,0 28,4 30,8 31,7 28,2
Average number of personnel 1,055 1,029 1,002 983 942
1)

2)

3)

4)

balance sheet total - loan from the Finnish State Nuclear Waste Management Fund
     
Olkiluoto 1 7,417 6,918 7,393 7,299 7,531
Olkiluoto 2 6,855 7,522 7,021 7,264 7,198
Olkiluoto 3 10,361 1,876 0 0 0
Total Olkiluoto 24,633 16,316 14,414 14,563 14,729
Meri-Pori 0 0 0 82 182
Total     
     
Olkiluoto 1 95.4 89.1 95.1 93.7 96.9
Olkiluoto 2 88.3 96.8 90.4 93.3 92.7
Olkiluoto 3 75.2 17 - - -
Total capacity factor     
     
30.8 19.9 16.8 18.1 17.3
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
32
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Consolidated income statement
EUR 1,000
Note
1 Jan-31 Dec 2023
1 Jan-31 Dec 2022
Turnover
3,4
876,204
358,208
5
7,143
21,310
Other income
6
11,904
13,068
Materials and services
7
-222,211
-137,884
Personnel expenses
8
-84,430
-80,316
Depreciation and impairment charges
4,9
-178,674
-46,992
Other expenses
10
-160,119
-100,625

249,817
26,769
Finance income
11
76,445
6,295
Finance expenses
11
-162,423
-81,480

-85,978
-75,185

173
590

164,012
-47,826
Income taxes
12
-13
-52

163,999
-47,878

Equity holders of the company
163,999
-47,878
Consolidated statement of comprehensive income
EUR 1,000
Note
1 Jan-31 Dec 2023
1 Jan-31 Dec 2022

163,999
-47,878
Other comprehensive items


11
-89,928
211,736

-89,928
211,736

74,071
163,858

Equity holders of the company
74,071
163,858
TVO Group
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
33
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Consolidated balance sheet
EUR 1,000
Note
31 Dec 2023
31 Dec 2022


Property, plant and equipment
13
6,357,069
6,363,783
Intangible assets
14
2,515
2,476
Loans and other receivables
17
784,734
710,962

15
4,070
3,897
Investments in shares
18
1,692
1,935

20
169,076
225,183
Share in the Finnish State Nuclear Waste Management Fund
24
1,035,276
999,662

8,354,432
8,307,898

Inventories
19
486,932
272,378
Trade and other receivables
3,17
95,973
233,078

20
3,555
4,463
Cash and cash equivalents
287,684
353,203

874,144
863,122

9,228,576
9,171,020


Share capital
21
600,365
600,365
Share premium reserve and statutory reserve
21
242,383
242,383
Fair value and other reserves
21
138,799
228,727
Subordinated shareholder loans (hybrid equity)
21
929,300
929,300
Retained earnings
21
341,113
216,742

2,251,960
2,217,517
EUR 1,000
Note
31 Dec 2023
31 Dec 2022


Provision related to nuclear waste management
24
1,289,352
1,294,345
Loan from the Finnish State Nuclear Waste Management Fund
22
727,500
651,339
Bonds
22
3,458,390
3,254,801

22
819,905
1,276,463

20,22
19,859
40,040

6,315,006
6,516,988


22
371,387
258,669

20,22
6,708
544
Advance payments received
3,23
68,063
23,064
Trade payables
23
22,793
16,821
Other current liabilities
23
192,659
137,417

661,610
436,515

6,976,616
6,953,503

9,228,576
9,171,020
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
34
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Consolidated statement of changes in total equity
Share premium reserveFair value andSubordinated shareholder 
EUR 1,000
Note
Share capital
and statutory reserveother reserves
loans (hybrid equity)
Retained earnings
holders of the company
Total equity

600,365
242,383
228,727
929,300
216,742
2,217,517
2,217,517

0
0
0
0
163,999
163,999
163,999


0
0
-89,928
0
0
-89,928
-89,928
Interest paid of subordinated shareholder loans (hybrid equity)
0
0
0
0
-39,628
-39,628
-39,628

21
600,365
242,383
138,799
929,300
341,113
2,251,960
2,251,960
Share premium reserveFair value andSubordinated shareholder 
EUR 1,000
Note
Share capital
and statutory reserveother reserves
loans (hybrid equity)
Retained earnings
holders of the company
Total equity
12022
600,365
242,383
16,991
929,300
274,022
2,063,061
2,063,061

0
0
0
0
-47,878
-47,878
-47,878


0
0
211,736
0
0
211,736
211,736
Interest paid of subordinated shareholder loans (hybrid equity)
0
0
0
0
-9,402
-9,402
-9,402
312022
21
600,365
242,383
228,727
929,300
216,742
2,217,517
2,217,517
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
35
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

EUR 1,000
Note
2023
2022


163,999
-47,878

Taxes
13
52
Finance income and expenses
85,978
75,185
Depreciation and impairment charges
178,674
46,992

-173
-590

-42,303
-46,163

24
0

Increase (-) or decrease (+) in non-interest-bearing receivables
-34,838
28,281
Increase (-) or decrease (+) in inventories
35,319
2,137
Increase (+) or decrease (-) in short-term non-interest-bearing liabilities
93,986
31,875

-63,464
-4,253
Dividend received
0
2,209
Interest received
17,041
6,277
Taxes paid
-13
-52

434,243
94,072

Acquisition of property, plant and equipment
-273,515
-425,468
Acquisition of intangible assets
-541
-372
Proceeds from sale of shares
220
0
Loan receivables granted
-73,772
-15,831
Repayments of loans granted
0
75,837

-347,608
-365,834

EUR 1,000
Note
2023
2022

Withdrawals of long-term loans
1,250,408
1,050,000
Repayment of long-term loans
-1,352,230
-517,415
Principal elements of lease payments
-3,799
-2,409
Interest paid of subordinated shareholder loans (hybrid equity)
-36,393
-6,079

89,020
62,740

-99,160
-134,190

-152,154
452,647

-65,519
180,885
Cash and cash equivalents 1 Jan
353,203
172,318

18
287,684
353,203


REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
36
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Notes to the consolidated financial statements
1 General information on the Group
Teollisuuden Voima Oyj together with its subsidiary
forms the TVO Group. The ultimate parent of the
Group is Teollisuuden Voima Oyj, domiciled in Helsinki.
TVO owns and operates three nuclear power
plant units (OL1, OL2 and OL3) in Olkiluoto, in the
municipality of Eurajoki. In addition, TVO has a share
in a gas turbine plant.
Copies of the consolidated financial statements are
available at www.tvo.fi.
These consolidated financial statements were author
-
ised for issue by the Board of Directors of TVO in
its meeting on 26 February 2024. Under the Finnish
Limited Liability Companies Act, the Shareholders
meeting may modify or reject the financial statements.
The Financial Statements are also published in
accordance with the European Single Electronic
Format (ESEF) reporting requirement. The ESEF
report is available at www.tvo.fi.
OLKILUOTO 3 EPR EFFECTS ON THE ACCOUNTING
POLICIES AND COMPARABILITY OF THE CONSOLI-
DATED INCOME STATEMENT AND BALANCE SHEET
The electricity production of the Olkiluoto 3 EPR
plant unit (OL3) started on March 2022. Sales
proceeds from the delivery of OL3’s test production
electricity and variable costs have been recorded in
the income statement in accordance with the IAS 16
Standard. The test production phase for Olkiluoto
3 was completed and regular electricity production
started on April 2023. TVO decided to submit on
April 2023 to the OL3 plant supplier the Provisional
Takeover Certificate. In addition TVO confirmed that
the commercial operation of the plant started on
May 2023.
Commercial operation transferred responsibility for
the OL3 plant unit to TVO. Starting the commercial
operation means as well that in accordance with the
IAS 16 Property, Plant and Equipment Standard, the
capitalisation of OL3 project costs was ended and the
recognition of depreciation was commenced because
the item is in the location and condition necessary
for it to be capable of operating in the manner
intended by management. The total IFRS acquisition
cost of the OL3 project was approximately EUR
5.7 billion. EUR 250.0 million was transferred
from the OL3 investment to operating-time fuel
(current assets) when the OL3 plant unit entered
commercial operation. The shareholders’ right to
electricity generated by OL3 and their liability for
the annual costs incurred from electricity generation
are determined in accordance with TVO’s Articles
of Association. The charging of the variable and
fixed fees for the commercial operation of OL3 was
COST-PRICE PRINCIPLE
TVO is a public limited liability company owned by
Finnish industrial and energy companies. Under its
Articles of Association, TVO supplies electricity to
its shareholders at cost-price (so-called Mankala
principle), which means that it delivers the electricity
it has produced or procured to its shareholders in
proportion to their shareholdings in each series. Each
of the shareholders of each series bears their share
of the variable and fixed annual costs as specified in
detail in the Articles of Association.
In accordance with TVO’s Articles of Association,
each shareholder of each series is responsible for the
following variable annual costs of the Company allo
-
cated to the series in proportion to the electricity it has
consumed generated or transferred by the Company:
1. Acquisition, transport, transportation insurance, storage
and handling costs of fuel;
2. Taxes depending on the power production, and
3. Other costs incurred to the company directly depending
on the power volume used by the respective shareholder.
In accordance with TVO’s Articles of Association,
each shareholder of each series, irrespective of
whether or not it has used its share of electricity, is
responsible for the following fixed annual costs of the
Company in proportion to the number of shares in a
particular series it holds:
started on 1 May 2023. According to TVO’s Articles
of Association, the fixed costs must be paid monthly
in advance, and no later than the 24th day of the
preceding month.
During the OL3 project, all realised costs of the
OL3 project, including financing costs, that can
be recognised in the cost of the asset have been
entered as property, plant and equipment in the
Group’s balance sheet. The capitalisation of costs
was discontinued at the start of OL3’s commercial
operation, which affects the comparability of the
Group’s income statement and balance sheet.
In the income statement, the most significant
changes can be seen under turnover, materials and
services, depreciation and impairment charges,
other expenses and finance income and expenses.
In the balance sheet, the most significant changes
can be seen under property, plant and equipment,
inventories, trade and other receivables and advance
payments received.
The final payment of approximately EUR 193 million
in delay compensation agreed upon in 2018 was set
off against the final payment installment of the Areva
companies under the Plant Contract in May 2023.
Long-term receivables include the additional delay
compensation of EUR 56.7 million to TVO, agreed
upon in 2021, will become due during the final
takeover of OL3 in April 2025 at the earliest.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
37
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
COMPANIES INCLUDED IN THE CONSOLIDATED
FINANCIAL STATEMENTS
Subsidiaries
The consolidated financial statements include
Teollisuuden Voima Oyj (TVO) and its subsidiary TVO
Nuclear Services Oy. Subsidiaries are companies
in which the Group has control at the end of the
financial period. Control exists if the Group holds
more than a half of the voting rights or otherwise has
control. Subsidiaries acquired are consolidated from
the date on which control is transferred to the Group,
and subsidiaries sold are no longer consolidated from
the date that control ceases.
The purchase method of accounting is used to
consolidate subsidiaries into the Group. The purchase
price is determined as the aggregate of the acquisi
-
tion date fair values of the assets given as considera-
tion and liabilities incurred or assumed. Costs directly
attributable to the acquisition are recognised in profit
or loss.
In the consolidation, intercompany share ownership,
intercompany transactions, receivables, liabilities,
unrealised gains and internal distributions of profits
are eliminated. Unrealised losses are not eliminated,
if the losses are due to impairment of the asset being
transferred. To ensure consistency, subsidiaries
accounting policies have, in all material respects,
been changed to conform to the accounting policies
adopted by the Group.
Joint ventures
The Group applies IFRS 11 to all joint arrangements.
Under IFRS 11, investments in joint arrangements
are classified as either joint operations or joint
ventures, depending on the contractual rights and
obligations of each investor.
TVO’s joint venture is Posiva Oy, the main activities
of which (A series) consist of the final disposal of
nuclear fuel of nuclear power plants. Both ventures
are liable for its main activities in proportion to their
own usage. Posiva Solutions Oy is a wholly-owned
subsidiary of Posiva Oy (B series). Posiva Solutions
Oy focuses on the sales of the know-how Posiva has
accumulated from its design, research and develop
-
ment activities in the final disposal of spent nuclear
fuel, as well as on associated consulting services. The
Posiva Group is accounted for by the equity method
of accounting.
4. Normal operating, maintenance and administrative
costs;
5. Other taxes than those depending on the power
production;
6. Insurance costs;
7. Installments and interest payments on the loans of
the Company falling due annually in accordance with
the loan agreements of the Company as well as other
expenses resulting from the financing of the Company
or the arranging thereof;
8. Depreciations;
9. Costs set out in the Nuclear Energy Act incurred by the
Company’s nuclear waste management (concerning the
nuclear power plants), and
10. Other costs independent of power production related
to the Company’s normal busi-ness and included in the
budget or approved by the Board of Directors.
In accordance with TVO’s Articles of Association,
each shareholder’s share of the liability for the
annual costs will always be limited to the amount
corresponding to the proportion of its shareholding
to all shares belonging to the same series, and
another shareholder’s failure will not increase the
shareholder’s liability based on shareholding. Only
the Company will have the sole right to call upon
the responsibility of the shareholders defined in the
Articles of Association. The shareholders shall not be
liable for costs other than the costs of the Company
mentioned above, unless otherwise agreed.
A prerequisite to the shareholders right to receive
electricity is that it has paid its share of costs
on time. If a shareholder neglects to observe its
payment obligation, the Company will have the right
to immediately cut off the distribution of electricity
to the shareholder and to sell the shareholder’s
portion of electricity to a party submitting the
2 Accounting policies
BASIS OF PREPARATION
The financial statements of the TVO Group have
been prepared in accordance with International
Financial Reporting Standards (IFRS) which have
been approved in the European Union. These finan
-
cial statements have been prepared in accordance
with the IAS and International Financial Reporting
Standards and SIC and IFRIC interpretations effective
on 31 December 2023. In the Finnish Accounting
Act and regulations issued by virtue of it, “IFRS”
refers to the standards and interpretations which
have been endorsed by the EU in accordance with
the procedure defined in the EU Regulation (EY) No.
1606/2002.
The consolidated financial statements have been
prepared under the historical cost convention, except
for investments in shares and derivative financial
instruments, which are recognised at fair value.
The consolidated financial statements are presented
in euros, which is the functional and presentation
currency of the Group’s parent company.
The consolidated financial statements have been
prepared according to the same accounting policies
as in 2022. The Group has adopted the following
amendments to exist-ing standards as of 1 January
2023:
»
IFRS 17 Insurance Contracts: Replace IFRS 4 Insurance
Contracts and requires a current measurement model
»
IAS 1 (amendment) Presentation of Financial Statements:
Require to disclose material accounting policy information
»
IAS 8 (amendment) Accounting Policies, Changes
in Accounting Estimates and Er-rors: Disclosure of
Accounting policies and Definition of Accounting Estimates
»
IAS 12 (amendment) Income Taxes: Deferred Tax related
to Assets and Liabilities arising from a Single Transaction
The following new standards and amendments to
existing standards issued already will be adopted by
the Group in 2024 or later:
»
IAS 1 (amendment) Presentation of Financial Statements:
Classification of Liabilities as Current or Non-current
»
IFRS 16 (amendment) Leases: Lease Liability in a Sale
and Leaseback
Based on initial assessment, Group estimates that
these changes have no material impact on the
consolidated financial statements, unless separately
above mentioned.
best offer, primarily to another shareholder of the
Company.
The cost-price principle is described in detail in the
Articles of Association.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
38
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Under the equity method of accounting, interests
in joint ventures are initially recognised at cost and
adjusted thereafter to recognise the Group’s share of
the post-acquisition profits or losses and movements
in other comprehensive income. When the Groups
share of losses in a joint venture equals or exceeds
its interests in the joint ventures, the Group does
not recognise further losses, unless it has incurred
obligations or made payments on behalf of the joint
ventures.
Unrealised gains on transactions between the Group
and its joint venture are eliminated to the extent of
the Group’s interest in the joint ventures. Unrealised
losses are also eliminated unless the transaction
provides evidence of an impairment of the asset
transferred. Accounting policies of the joint ventures
have been changed where necessary to ensure
consistency with the policies adopted by the Group.
REVENUE RECOGNITION PRINCIPLES
TVO operates on a cost-price principle. Revenue
is recognised based on the consideration received
when electricity is delivered or services are rendered.
Revenue is presented net of indirect sales taxes.
Revenue is recognised as follows:
Sales of electricity and other revenue
Revenue on sales of electricity is divided into variable
and fixed charge. Revenue on sales of electricity
concerning variable charge is recognised based on
delivery. The recognised income for shareholders is
based on the quantities delivered. The variable charge
is invoiced and recognised in turnover monthly. These
variable costs are paid retrospectively on the 24th of
the next month. The fixed costs, or liabilities based on
customer contracts, are invoiced one month in advance
and recognised as advance payments received. The
fixed charge is entered as income in the right month.
According to TVO’s Articles of Association, the fixed
costs must be paid monthly in advance, and no later
than the 24th day of the preceding month.
The revenue from services is recognised on an
accrual basis in the accounting period when the
services are rendered to the customer and when the
control of the service transfers to a customer.
SEGMENT REPORTING
The Board of Directors is the chief operating decision
maker in TVO, and is in charge of the allocation of
resources to the operating segments and for the
assessment of their results. The Board also decides
on the corporate strategy, significant investments,
the organisational structure, as well as financing and
insurance policies. The operating plan and the budget
are also approved by the Board of Directors which
also monitors their implementation and delivers the
elements required to secure the operation of systems
and procedures that are critical to nuclear safety and
safety culture.
TVO owns and operates three nuclear power plant
units (OL1, OL2, and OL3). The electricity production
of the Olkiluoto 3 EPR plant unit (OL3) started on
March 2022. The test production phase for Olkiluoto
3 was completed and regular electricity production
started on April 2023. TVO decided to submit on
April 2023 to the OL3 plant supplier the Provisional
Takeover Certificate. In addition TVO confirmed that
the commercial operation of the plant started on
May 2023.
TVO’s shares are divided into A and B series. Share
-
holders with series A shares are entitled to the elec-
tricity produced at the OL1 and OL2 nuclear power
plant units. Shareholders with series B shares are
entitled to the electricity produced at the OL3 nuclear
power plant unit. Pursuant to the Articles of Asso
-
ciation, the purpose of all of the TVO Group’s busi-
ness operations is to construct and acquire power
plants and power transmission equipment, and to
generate, transfer and transmit electricity primarily
to the shareholders of the Company on the terms
and conditions set out in the Articles of Association.
Based on the series of shares, TVO identifies two
operating segments; “OL1/OL2 (series A shares)”
and “OL3 (series B shares)” which are reported on to
the Board of Directors on a regular basis. Operating
segments “OL1/OL2 (series A shares)” and “OL3
(series B shares)” are aggregated into one operating
segment “Nuclear power” based on the aggregation
criteria presented in the standard (IFRS 8:12).
The operating segments have similar economic char
-
acteristics as they share the same cost structure and
TVO as a whole operates according to the cost-price
principle (Mankala principle). The shareholders are
charged incurred costs in the price of electricity, and
thus in principle the profit/loss for the period under
review is zero, unless specific circumstances dictate
otherwise. The shareholders pay variable costs based
on the volumes of energy supplied, and fixed costs in
proportion to their ownership, irrespective of whether
or not they have used their share of the power
output. Due to the operating principle, key figures
based on the financial result are not presented.
Furthermore, the operating segments are similar
in terms of all of the following characteristics: the
nature of the products and services, the nature of the
production processes, the type or class of customer
for the products and services, the methods used
to distribute the products or provide the services,
and the nature of the regulatory environment. Both
operating segments use nuclear power to generate
electricity in Olkiluoto in the Municipality of Eura
-
joki. Through TVO’s direct owners, the electricity
produced by TVO is provided to the Finnish industry
as well as energy companies.
The customers of the operating segments consist of
the shareholders of the Company. The shareholders
of both share series are essentially the same. The
ownership proportions of the shareholders are
essentially the same for both share series and
electricity is sold to the shareholders in propor
-
tion to their ownership of each share series. The
charging principle of electricity is the same to all
the shareholders of the share series. The regulatory
environment of the operating segments is consistent.
The premise of the Nuclear Energy Act (990/1987)
is that the use of nuclear energy shall be in line with
the overall good of the society as well as safe and it
shall not cause any harm to people, the environment,
or property. The licensee has several obligations in
respect of the use of nuclear energy; for example,
the licensee is responsible for the safety of the use
of nuclear energy and for the waste generated by
the operations as well as for all the costs of nuclear
waste management. The operating segments also
share the same financing and personnel. Electricity
production is the one business area of TVO and from
the point of view of the shareholders, nuclear energy
is considered as a whole.
Based on the criteria presented above, the operating
segments are aggregated into one operating segment
and the Group has one reportable segment: “Nuclear
power”. This segment also covers TVO Nuclear
Services Oy (TVONS), a subsidiary of the Group,
which engages in operations related to nuclear power.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
39
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Revenue from long-term consulting services projects
that spread over several accounting periods is
recognised based on the proportion of costs incurred
from work performed up to the balance sheet date
and the estimated total expenses of the project. If it
is probable that total contract costs will exceed total
contract revenue, the expected loss is recognised as
an expense immediately.
Other income
Revenue from activities outside the ordinary course
of business is reported as other income. This includes
joint ventures’ revenue from services, rental income
and non-recurring items, such as gains from sales
of property, plant and equipment. Rental income is
recognised on a straight line basis over the rental
period and gains from sales of property, plant and
equipment when the significant risks and rewards of
ownership, interests and control have been trans
-
ferred to the buyer.
GOVERNMENT GRANTS
Grants are recognised at their fair value, when the
Group meets all the conditions attached to them,
and where there is a reasonable assurance that the
grant will be received. Government grants relating to
costs are deferred on the balance sheet and recog
-
nised in the income statement over the period in
which their relevant costs are recorded. Government
grants relating to the purchase of property, plant and
equipment are deducted from the acquisition cost of
the asset.
RESEARCH AND DEVELOPMENT COSTS
Research and development costs (except R&D
costs related to nuclear waste management) of the
Group are recognised as an expense as incurred and
included in other expenses in the income statement.
Development costs are capitalised if it is assured that
they will generate future income, in which case they
are capitalised as intangible assets and amortised
over the period of the income streams. Currently, the
Group does not have any development costs that
would qualify for capitalisation.
Research costs that relate to nuclear waste manage
-
ment are discussed in the paragraph Assets and
provisions related to nuclear waste management
obligations.
PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment of the Group are
stated on the consolidated balance sheet at historical
cost less grants received, accumulated depreciation
and impairment charges, and compensation, if any.
Historical cost includes expenditure that is directly
attributable to the acquisition of an item.
In the historical costs of power plant projects and
other significant investments (completion time more
than a year), the financing costs incurred during the
construction period will be included.
The historical costs of nuclear power plants include
furthermore the estimated costs of dismantling
and removing an item and restoring the site on
which it is located. The amount recognised relating
to decommissioning will be depreciated over the
estimated operating time of the nuclear power
plant. (More information is included in paragraph
Assets and provisions related to nuclear waste
management obligations.)
Land and water areas are not depreciated.
Other property, plant and equipment are depreciated
using the straight-line method over their estimated
useful lives.
Straight-line depreciation is based on the following
estimated useful lives:
»
OL1, OL2 and OL3 nuclear power plant units:
-
Basic investment OL1 and OL2 61 years
-
Plant investment OL3 10–60 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
»
Decomissioning of the nuclear power plant units:
-
OL1 and OL2 61 years
-
OL3 60 years.
During the OL3 project, all realised costs of the
OL3 project, including financing costs, that can be
recognised in the cost of the asset have been entered
as property, plant and equipment in the Groups
balance sheet. The depreciation periods according to
the plan of the OL3 plant unit are based on financial
useful times for buildings, main components, process
systems, electrical, mechanical and automation
engineering, pipelines and other machinery and
equipment. The depreciation period is 10 years
for information systems, batteries, spare parts and
control rods, among others. The 20-year depreciation
period is for turbines, main generator, simulator and
transformers, among others. The depreciation period
is 30 years, for example, lightframe buildings, steam
generators, condenser, control rod drive, reactor
INTANGIBLE ASSETS
Intangible assets are shown at historical cost less
grants received, accumulated amortisation, and
impairment losses if applicable. Historical cost
includes costs directly attributable to the acquisition
of the particular asset.
Other long-term expenditure included in intangible
assets are amortised on a straight-line basis over
their estimated useful lives. These include computer
software and certain payments made for the use of
assets.
pressure vessel internals, cables, valves and pumps.
The depreciation period is 60 years for buildings
under the plant contract, the reactor pressure vessel
and the primary circuit piping. Overhead costs, as
well as interest costs during construction, are distrib
-
uted for each commodity in terms of economic value
or acquisition cost.
The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate to reflect the
changes in expectations of economic benefits.
Costs of renewal of an item or a part of an item of
property, plant and equipment are capitalised if the
part is accounted for as a separate item. Otherwise,
the subsequent expenditure is included in the
carrying amount only when it is probable that future
economic benefits associated with the expenditure
will flow to the Group.
Annual repair and maintenance costs are recognised
in profit or loss, when they occur. Investments
connected with the modernisation and maintenance
of the power plant units are capitalised.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
40
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
LEASES
Leases are contracts that convey the right to control
the use of an identified asset for a period of time in
IMPAIRMENT OF PROPERTY, PLANT AND
EQUIPMENT AND INTANGIBLE ASSETS
The Group assesses at each balance sheet date
whether there are indications that the carrying
amount of an asset may not be recoverable. If such
indications exist, the recoverable amount of the
asset in question will be measured. For the purposes
of assessing impairment, assets are examined at the
level of cash-generating units, that is, at the lowest
level that is mainly independent of other units and
for which there are separately identifiable cash
flows and largely independent from those of corre
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sponding units.
INVENTORIES
Inventories are measured at acquisition cost. The
acquisition cost comprises raw materials, direct
labor, and other direct costs. The carrying amount of
inventories is not reduced to a value that is less than
its acquisition cost, as TVO operates at cost-price,
so the net realisable value of inventories always
covers their acquisition cost. The cost of supplies is
determined by using the rolling weighted average
cost formula. The use of nuclear fuel is recognised
according to calculated consumption.
the standard, the classification is based on the busi
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ness goal of the financial assets and contractual cash
flows, and they are classified during their original
acquisition.
Transaction expenses are included in the original
book value of the financial liabilities, except in the
case of items measured at fair value through profit or
loss. All purchases and sales of financial assets are
recognised at fair value on their trade date.
Financial assets are derecognised once the Group
has lost its contractual right to the cash flows or
transferred a significant portion of the risks and
revenue out of the Group.
Recognised at fair value through profit or loss
Derivative financial instruments that do not meet the
criteria for hedge accounting of the IFRS 9 standard
are recognised at fair value through profit or loss.
Profit and loss resulting from changes in fair value
are recognised in the income statement in the finan
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cial period during which they have arisen. However, if
expenses or income resulting from derivative finan
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cial instruments were caused by the construction of
the OL3 power plant, they were activated as part of
the acquisition cost of the asset.
Amortised cost
Amortised cost includes non-current loan and other
receivables, as well as current trade and other
receivables. If an item is due in over 12 months, it is
recognised as a non-current asset. After initial recog
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nition, all loan and other receivables are measured at
amortised cost using the effective interest method.
Trade receivables are recognised on the balance
sheet at their transaction price, which corresponds to
their fair value.
The amortisation periods of the intangible assets are
as follows:
»
Computer software 10 years
»
Other intangible assets 10 years.
The amortisation period of an intangible asset is
changed where necessary, if the estimated useful life
changes from that previously estimated.
Furthermore, intangible assets include carbon
dioxide (CO
2
) emission rights. Emission rights are
recognised at historical cost, and are presented under
emission rights. The current liability for returning
emission rights is recognised at the carrying value
of possessed emission rights. If there is a shortfall, a
current liability is recognised to cover the acquisition
of the missing emission rights. This current liability
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 services. The gains
from the sales of emission rights are refunded to the
equity holders of the company.
The recoverable amount is the higher of an asset’s
fair value less costs to sell or value in use. The value
in use is determined by reference to discounted
future cash flows expected to be generated by the
asset. The discount rate used is pre-tax and reflects
the time value of money and asset specific risks.
Impairment loss is recognised when the carrying
amount of the asset is greater than its recoverable
amount. Impairment loss is charged directly to the
income statement. If a cash-generating unit is subject
to an impairment loss, it is allocated first to decrease
the goodwill and subsequently, to decrease the other
assets of the unit. At recognition of the impairment
loss, the useful life of the reamortised assets is reas
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sessed. Impairment loss of other assets than goodwill
is reversed in the case that a change has occurred
in the estimates used in measuring the recoverable
amount of the asset. The increased carrying amount
must not, however, exceed the carrying amount that
would have been determined had no impairment loss
been recognised in prior years.
exchange for consideration. Leases are recognised as
right-of-use assets and lease liability. Right-of-use
assets are recognised on the commencement date
and measured at acquisition cost, which includes the
amount of the initial measurement of lease liability,
any lease payments made before the commencement
date less any lease incentives received and any initial
direct costs. Lease liabilities are regonised on the
commencement date, and are measured at present
value of remaining payments that will be paid during
the term of lease. The lease payments are discounted
using the interest rate implicit in the lease. If that rate
cannot be readily determined, the interest rate of
additional credit, i.e. the average interest rate on the
Group’s loans and derivatives, is used. Right-of-use
assets are generally depreciated according to IAS
16 Property, Plant and Equipment. Lease payments
are apportioned during the lease term between the
finance charge and the reduction of the outstanding
liability to produce a constant periodic rate of interest
on the remaining balance of the liability.
Lease payments associated with short-term leases
and all leases of low-value assets are recognised on a
straight-line basis as an expense in profit or loss. Short-
term leases are leases with a lease term of 12 months
or less. Low-value assets comprise IT equipment.
Lease payments received are recognised as income on
a straight-line basis over the lease term and presented
in the income statement under other income.
FINANCIAL ASSETS
In the Group, financial assets are divided into the
following categories in accordance with the IFRS 9
standard: assets measured at fair value through profit
or loss, at fair value through other comprehensive
income items, and at amortised cost. According to
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
41
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Fair value through other comprehensive income items
Share investments are included in the “Non-current
asset investments in shares” class and recognised at
fair value through other comprehensive income items.
Changes in fair value are entered in other compre
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hensive income items and presented in the equity fair
value reserve.
Cash and cash equivalents
Cash and cash equivalents comprise cash balances,
call deposits and other short-term, liquid invest
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ments. Items classified as cash and cash equivalents
have a maturity of no more than three months from
the date of acquisition.
Impairment of financial assets
According to the impairment model, the impairment
of financial assets must be determined using a model
based on expected credit losses. From the Group’s
perspective, the impairment model applies to trade
receivables and recognition of their credit losses.
According to the IFRS 9 standard, the Group applies
a simplified provision matrix for recognising the credit
risks in trade receivables, on the basis of which a
deductible item is recognised for all trade receivables
based on the expected credit losses over the entire
period of validity. Impairment is recorded if there is
evidence of the debtor’s insolvency, bankruptcy or
liquidation.
The Group’s annual credit losses have been very
minor, and the expected credit losses according to the
new model are not to have a significant impact. The
impairment model has no impact on financial assets
measured at fair value, since expected credit losses are
already taken into account in the fair value in accord
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ance with the IFRS 9 standard. As regards financial
FINANCIAL LIABILITIES
The Group’s financial liabilities are divided into the
following categories in accordance with the IFRS 9
standard: assets measured at fair value through profit
or loss and at amortised cost.
Financial liabilities are recognised at fair value
including transaction expenses. After initial recog
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nition, bonds and financial institution loans are
measured at amortised cost using the effective
interest method. Financial liabilities are included in
non-current and current liabilities, and may be either
interest-bearing or non-interest-bearing. An item is
recognised in current liabilities if it is due within 12
months of the closing date.
DERIVATIVE FINANCIAL INSTRUMENTS AND
HEDGE ACCOUNTING
The Group uses derivative financial instruments to
hedge against the currency risk of fuel acquisitions
and currency and interest rate risk of loans. Deriv
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ative financial instruments are recognised on the
balance sheet at fair value on the day on which the
Group becomes a party to the derivative financial
instruments contract, and are thereafter always
measured at fair value on the closing date.
Items covered by hedge accounting in accordance
with the IFRS 9 standard include instruments used
for hedging against the currency risk of the Groups
uranium supply contracts (forward exchange
contracts, currency swaps) and some of the interest
rate swaps used for hedging against the fluctuation
of interest cash flows in the Group’s loan agreements.
The beginning of the hedging and regularly during
protection, the Group shall document the financial
relationship between the hedging instruments and
the hedged items, and whether changes in the cash
flows of the hedging instruments are expected to
reverse the changes in the cash flows of the hedged
items. In addition, the objectives of risk management
and the strategies according to which hedging meas
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ures are taken are documented. Derivative financial
instruments included in hedge accounting are divided
into non-current and current assets and liabilities
based on the maturity of the hedged instrument. The
Group applies both cash flow and fair value hedge
accounting.
With the adoption of the IFRS 9 standard, the assess
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ment of hedge effectiveness is based on future orien-
tation. The ineffectiveness of the Groups hedging
relationships is expected to continue being very minor.
The IFRS 9 standard defines three hedge effec
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tiveness requirements for the application of hedge
accounting. The first requirement requires a financial
relationship between the hedged item and hedging
instrument. It must be expectable that the changes in
the value of the hedging instrument and hedged item
are opposite due to the instrument or risk used as the
shared basis. Secondly, the standard requires that
changes in value due to the financial relationship are
not dominated by the impact of credit risk. Thirdly,
the hedging rate of the hedging relationship must
equal the hedging rate resulting from the amount
of the hedged item that the organisation actually
hedges and the amount of the hedging instrument
that the organisation actually uses for hedging that
amount of the hedged item. The IFRS 9 standard
requires the same hedging rate that is actually used
in risk management.
Cash flow hedging
The effective portion of the changes in fair value of
the derivative instruments that have been specified as
cash flow hedges and meet the criteria for cash flow
hedging are entered in other comprehensive income
items and presented in the equity fair value reserve.
Profit or loss relating to the ineffective portion is
recognised in the income statement, If the profit
or loss related to the ineffective portion was due
to construction of the OL3 power plant, they were
capitalised as part of the acquisition cost of the asset.
Changes in fair value accumulated in equity are recog
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nised in the balance sheet for the financial period in
which the hedged item affects the profit or loss.
In hedging against the currency risk of fuel acquisi
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tions, the hedging instrument’s profits and losses are
moved from equity to amend the cost of the inventory
item in question. In the hedging of fuel acquisitions,
profit or loss recognised in inventories is recognised
according to the inventory recognition principles to
adjust fuel acquisitions in “Materials and services”.
When the interest rate risk hedging of loans no
longer meets the requirements for applying hedge
accounting, or when a hedging instrument acquired
for hedging falls due or is sold, the profit or loss
accumulated in equity at the time in question is
instruments measured at amortised cost, the Group
performs active monitoring and recognises impairment
in profit or loss in accordance with the criteria.
No credit loss provisions based on expected credit
losses are recorded for financial assets recognised
at fair value through profit or loss, and no credit loss
provisions are recognised for other equity invest
-
ments recognised at fair value through other compre-
hensive income items.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
42
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
EARNINGS PER SHARE
The Group does not report earnings per share, as
the parent company is operating at cost-price. The
shares of TVO are not traded on a public market.
EQUITY
Share capital
TVO has in its possession two series of shares, A
and B. The A series entitles the shareholder to the
electricity generated by the OL1 and OL2 nuclear
power plant units. The B series entitles the share
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holder to the electricity that is be generated by the
OL3 nuclear power plant unit.
Payments received from shares in connection with
founding the Company and in the form of increases
in share capital are recognised under share capital,
statutory reserve, and share premium reserve.
FOREIGN CURRENCY ITEMS
Transactions and financial items denominated in a
foreign currency are recognised at the rates on the
day when they occur. Receivables and liabilities
denominated in a foreign currency are measured
in the financial statements at the ECB’s official
exchange rate on the closing date. Exchange gains
and losses from operating activities are included
in the corresponding items above operating profit
or loss. Exchange differences arising from financial
items are recognised in finance income and expenses.
BORROWING COSTS
Borrowing costs are recognised in profit or loss in the
period when they have incurred, except when they
relate to the construction of a power plant or any
other significant investment, of which the completion
time exceeds one year. In that case, borrowing costs
are capitalised as part of the cost of the asset.
recognised in profit or loss during the validity of the
hedged item in question. When the forecast trans
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action is no longer expected to take place, the profit
or loss accumulated in equity is recognised in the
income statement.
When the currency risk hedging of fuel acquisitions
no longer meets the requirements for applying
hedge accounting, or when a hedging instrument
acquired for hedging falls due or is sold, the profit
or loss accumulated in equity at the time in question
is recognised in inventories at the same time as the
purchase of inventories. When the forecast trans
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action is no longer expected to take place, the profit
or loss accumulated in equity is recognised in the
income statement.
Fair value hedging
The Group applies fair value hedge accounting in the
interest rate risk hedging of publicly quoted fixed-
rate liabilities. Changes in the fair value of derivative
instruments that meet the criteria for fair value hedge
accounting, as well as the change in fair value caused
by the interest rate risk of the related hedged items,
are recognised in profit or loss in the financial items
in the income statement. The balance sheet values of
loans and fair values of hedging instruments directed
at loans are included in interest-bearing liabilities and
assets. If the criteria for hedge accounting are no longer
met, the adjustments made to the hedged loan are
released into the income statement using the effective
interest method for the remaining maturity of the loan.
Derivatives outside hedge accounting
Changes in the fair value of , interest rate swaps,
and forward exchange contracts left outside hedge
accounting are presented in financial income and
expenses, If changes in the fair value of derivatives
PROVISIONS
The Group recognises a provision for environmental
restorations, asset retirement obligations, as well
as legal and other claims, when the Group has a
legal or constructive obligation, and it is likely that
an outflow of resources will be required to settle
the obligation and the amount of the obligation can
be reliably estimated. The provision is measured at
the present value of the expenditure expected to
be required to settle the obligation. The discount
rate used in the measurement of provisions is the
estimated average risk premium of companies with
TVO’s rating in relation to risk-free interest rate
plus the ECPs inflation target. The increase in the
provision due to the passage of time is recognised as
interest expense.
The most significant provision is that for the nuclear
waste management obligation under the Nuclear
Energy Act. The provision covers all future expendi
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tures arising from nuclear waste management,
including the decommissioning of nuclear power
plants, the disposal of spent fuel, and a risk marginal.
Assets and provisions related to the nuclear waste
management obligation
The parent company’s nuclear waste management
obligation which is based on the Nuclear Energy Act
is covered by payments made to the Finnish State
Nuclear Waste Management Fund. The obligation
covers all the future expenditures for nuclear waste
management, including the decommissioning of
nuclear power plants, the disposal of spent fuel, and a
risk marginal. The amount of payments is determined
by assuming that the decommissioning would start
at the beginning of the year following the assessment
year. The research relating to the disposal, as well as
the actual disposal of TVO’s spent fuel, are carried
out by Posiva Oy, which charges from TVO the costs
arising from these activities, including the acquisition
cost of property, plant and equipment.
In the consolidated financial statements, TVO’s share
of the Finnish State Nuclear Waste Management
Fund is shown as non-current assets. It is accounted
for in accordance with IFRIC 5 Rights to Interests
Arising from Decommissioning, Restoration and
Environmental Rehabilitation Funds. It is stated that
the fund assets are measured at the lowest of the fair
value or the value of the related liabilities, since TVO
does not have control or joint control over the Finnish
State Nuclear Waste Management Fund. An adjust
-
outside of hedge accounting were due to construc-
tion of the OL3 power plant, they were capitalised as
part of the acquisition cost of the asset.
Subordinated shareholder loans (hybrid equity)
Subordinated shareholder loans (hybrid equity) are
treated as equity. Subordinated shareholder loans
(hybrid equity) are initially recognised at fair value,
including related transaction costs. There is no
maturity date for the subordinated shareholder loans
(hybrid equity), but the borrower is entitled to repay
the loan in one or several installments. The Board of
Directors of the borrower has the right to decide not
to pay interest during any current interest period.
Unpaid interest does not accumulate to the following
interest periods.
The interest of the subordinated shareholder loans
(hybrid equity) are recognised in liabilities when the
obligation to pay interest is incurred. Interest expenses
are recognised on an accrual basis in the retained
earnings and are not recognised in profit or loss.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
43
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
EMPLOYEE BENEFITS
The pension benefits for Group personnel have been
arranged with external pension insurance companies.
The insurance policies relating to earnings-based
pensions, as well as some voluntary pension insur
-
ance policies, have been accounted for as defined
contribution plans.
Payments made to defined contribution plans as to
pensions are recognised on an accrual basis in the
income statement.
TAXES
The Group does not recognise deferred taxes,
because TVO operates at cost-price. According to
this principle, TVO will not pay taxes on its opera
-
tions, and therefore there is no taxable income. The
tax recognised by the Group consists of tax relating
to non-deductible expenses. It also includes any
taxes for previous financial years.
ment is only recorded if the legal share in the Fund is
higher than the provision according to IFRS.
On 31 December 2023 the OL1/OL2 plant units’
share in the Fund is higher than the provision
according to IFRS, due to which an adjustment is
recorded for the OL1/OL2 plant unitsnuclear waste
management IFRS calculation. The OL3 plant unit’s
share in the Fund is in turn lower than the provision
according to IFRS, and therefore an adjustment is not
recorded (see note 24 Assets and provisions related
to the nuclear waste management obligation).
TVO’s share in the Finnish State Nuclear Waste
Management Fund is higher than the corresponding
asset recognised in the balance sheet. The nuclear
waste management obligation is covered by TVO’s
share in the Fund, as required by the Nuclear Energy
Act. The obligation for nuclear waste management is
not discounted. The amount of the annual payment
to the Finnish State Nuclear Waste Management
Fund is based on the change on the nuclear waste
management obligation and funding obligation
target, the share of the profit or loss of the Fund, and
the changes resulting from actions taken.
According to the Nuclear Energy Act Section 52
c, which entered into force on May 2021, a three
percent protected portion shall be added to the
Fund target of the calendar year for a party with a
nuclear waste management obligation. The protected
portion shall primarily be covered by the surplus as
defined in the Nuclear Energy Act Section 42 and
the Fund’s profit as defined in the Nuclear Energy
Act Section 51. If the Fund’s investment activities
are unprofitable, the party with a nuclear waste
management obligation must supplement the shares
in the Fund by paying more nuclear waste manage
-
ment fee for the part that the loss surpasses the
protected portion. If the Fund’s investment activities
are profitable, the Fund reimburses the party with a
nuclear waste management obligation in the nuclear
waste management fee for the part that the profit
surpasses the protected portion.
In addition, a party with a nuclear waste manage
-
ment obligation shall supply the Finnish State
Nuclear Waste Management Fund with collateral
security fulfilling the conditions provided in Section
45, so that on the last day of March, the total amount
of the collateral security corresponds with the
protected portion for the part that is not covered
by the transferred surplus and profit. Accordingly,
the collateral security previously supplied by the
party with a nuclear waste management obligation,
which is not needed to cover the protected portion
anymore, shall be returned to the party with a nuclear
waste management obligation at the latest on the
first business day of April in the same calendar year.
The nuclear waste management obligation is shown
as a provision under non-current liabilities. The fair
value of the nuclear waste management provision
has been determined by discounting the future cash
flows which are based on plans about future activity
and the estimated expenditure relating to it, taking
into account actions already taken.
The present initial value of the provision for the
decommissioning of a nuclear power plant (at the
time of commissioning the nuclear power plant) has
been capitalised as property, plant and equipment
and will be adjusted later for possible changes in
the plan. The amount recognised relating to decom
-
missioning will be depreciated over the estimated
operating time of the nuclear power plant.
estimates and assumptions concerning the future.
Estimates and assumptions have an effect on the
reported amounts of assets and liabilities, and
expenses and income during the accounting period.
The actual results may differ from these estimates.
The provision for future obligations for the
decommissioning of the nuclear power plant and
for the disposal of spent fuel
Estimates and assumptions have been used when
estimating the assets, liabilities, expenses, and
income related to the future decommissioning of the
nuclear power plant and the disposal of spent fuel.
These are based on long-term cash-flow forecasts of
estimated future costs.
The main assumptions relate to technical plans, time
factor, cost estimates, and the discount rate. The
technical plans are approved by State authorities.
Any changes in the assumed discount rate would
change the provision. If the discount rate used were
lowered, the provision would increase.
Any future increase in the provision would be offset
by the recognition of an equal increase in TVO’s
share in the assets of the Finnish State Nuclear
Waste Management Fund. According to IFRS, the
carrying amount of the assets is limited to the value
of the provision, as TVO does not have control in the
Finnish State Nuclear Waste Management Fund (see
note 24 Assets and provisions related to nuclear
waste management obligation).
Olkiluoto 3 EPR
The electricity production of the Olkiluoto 3 EPR
plant unit (OL3) started on March 2022. Sales
proceeds from the delivery of OL3’s test production
electricity and variable costs have been recorded in
The provision for spent fuel covers the future disposal
costs of fuel used by the end of each accounting
period. The costs for the disposal are expensed during
the operating time of the plant, based on fuel usage.
The impact of any changes to the plan will be recog
-
nised immediately in the income statement based on
fuel used by the end of each accounting period.
The timing factor is taken into account by recognising
the interest expense related to discounting the nuclear
waste management provision. The interest accruing
on TVO’s share in the Finnish State Nuclear Waste
Management Fund is presented as finance income.
CRITICAL ACCOUNTING ESTIMATES AND
JUDGEMENTS
The preparation of financial statements requires
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
44
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
the income statement in accordance with the IAS 16
Standard. The test production phase for Olkiluoto
3 was completed and regular electricity production
started on April 2023. TVO decided to submit on
April 2023 to the OL3 plant supplier the Provisional
Takeover Certificate. In addition, TVO confirmed that
the commercial operation of the plant started on May
2023.
The total IFRS acquisition cost of the OL3 project
was approximately EUR 5.7 billion. All realized costs
of the OL3 project that can be recognized in the cost
of the asset were entered as property, plant and
equipment in the Groups balance sheet. During
the OL3 plant investment, TVO’s management has
considered that all expenses included in the acquisi
-
tion cost, including financing expenses, were directly
due to the acquisition of the commodity in question.
Since the OL3 nuclear power plant unit was ordered
under a fixed price turnkey contract, no acquisition
cost can be directly determined for individual assets
that belong to the plant delivery.
Capitalisation at book value for capital assets is
ended when the asset is at a location and in a condi
-
tion where it can operate according to the manner
originally intended by the management. According
to the estimate of TVO’s management, at the start of
commercial operation, the plant was able to operate
in the manner originally intended by the manage
-
ment. Test operation had ended and the plant had
been received from the plant supplier.
TVO’s management has assessed the basis for
allocating the acquisition cost for the OL3 plant unit
under different capital assets, allocating general costs
and financing expenses under different capital assets
and the estimated financial useful lives of assets. The
planned amortisation times for the OL3 plant invest
-
ment are based on the estimated financial useful lives
of the buildings, main components, process systems,
electrical, mechanical and I&C technology, piping and
other machines and equipment.
TVO will carefully follow the fulfillment of the condi
-
tions according to the 2018 settlement agreement
and the amendment agreements signed in June
2021. The Plant Supplier is obligated to complete the
plant unit in accordance with the Plant Contract and
Settlement Agreement. After the takeover of OL3,
the guarantee period in accordance with the Plant
Contract began. The final takeover of the plant unit
will take place after the conclusion of the two-year
warranty period. Even after this, the plant supplier’s
liabilities under the warranty will remain in force up
to a maximum of eight (8) years to a certain extent.
Impairment testing
Impairment testing of non-current assets is
performed when there are indications that the
carrying amount of an asset may not be recoverable.
In testing, future discounted cash flows which can
be recovered by use of the asset and its possible sale
are used as an indicator.
TVO operates on a cost-price principle. According
to the company documents, the shareholders are
obliged to pay all the expenses of the Company in
electricity prices, including amortisation of property,
plant and equipment. When assessing by means of
recoverable amounts possible impairment of assets
and subsequent need for recognition of impairment
loss, the recoverable amounts always correspond,
with some exceptions, to the carrying amount of the
asset and thus, as a rule, no need for recognition of
impairment loss arises.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
45
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
4 Segment reporting
SEGMENT STRUCTURE IN THE TVO GROUP
The Group has one reportable segment; nuclear power. The electricity of the nuclear power segment is
produced at three nuclear power plant units, Olkiluoto 1 (OL1), Olkiluoto 2 (OL2) and Olkiluoto 3 (OL3). The
subsidiary of TVO, TVO Nuclear Services Oy (TVONS), the operation of which is related to nuclear power, is
also included in the nuclear power segment.
The OL3 commercial operation started on 1 May 2023. Along with this, the capitalisation of OL3 project costs
was ended and the recognition of depreciation was commenced.
Segment calculation principles
The Board of Directors monitors reporting in accordance both with the Finnish Accounting Standards (FAS) and
International Financial Reporting Standards (IFRS). TVO Group discloses in the note Segment reporting; turn
-
over, depreciation and impairment charges, finance income and expenses, profit/loss for the year and assets.
The segment reporting TVO Group discloses is based on the internal reporting the chief operating decision
maker follows. The same accounting policies is used in the segment reporting and TVO Group’s financial
statements. Adjustments made under IFRS accounting policies are reported at Group level.
Turnover by segments
EUR 1,000 2023 2022
Nuclear power 876,204 358,208
Total 876,204 358,208
Depreciation and impairment charges by segments
EUR 1,000 2023 2022
Nuclear power -169,356 -40,690
Depreciation and impairment charges (FAS) -169,356 -40,690
The impact of the nuclear waste management obligation -9,773 -5,493
Other IFRS adjustments 455 -809
Total (IFRS) -178,674 -46,992
Assets and liabilities related to contracts with customer
EUR 1,000 31 Dec 2023 31 Dec 2022
Trade receivables 18,624 9,428
Advance payments received 64,928 23,033
Revenue recognised in relation to contract liabilities
EUR 1,000 2023 2022
Revenue recognised that was included in the contract liability balance at the beginning of the period 23,033 21,182
Total 23,033 21,182
3 Turnover
The fixed costs, or liabilities based on customer contracts, are invoiced one month in advance and recognised
as advance payments received.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
46
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Profit/loss for the financial year by segments
EUR 1,000 2023 2022
Nuclear power 118,216 -9,909
Profit/loss before appropriations (FAS) 118,216 -9,909
The impact of the nuclear waste management obligation 12,998 -36,528
The impact of financial instruments -240 -503
The impact of finance leases -203 87
The impact of subordinated shareholder loans (hybrid equity) 29,291 24
Other IFRS adjustments 3,764 570
The impact of joint ventures 173 -1,619
Total (IFRS) 163,999 -47,878
Assets by segments
EUR 1,000 2023 2022
Nuclear power 7,713,972 7,601,716
Total (FAS) 7,713,972 7,601,716
The impact of the nuclear waste management obligation 1,375,844 1,367,840
The impact of financial instruments 155,782 194,825
The impact of finance leases 43,892 46,072
The impact of subordinated shareholder loans (hybrid equity) -60,863 -50,526
Other IFRS adjustments -3,110 8,207
The impact of joint ventures 3,059 2,886
Total (IFRS) 9,228,576 9,171,020
Trade receivables by segments
EUR 1,000 2023 2022
Nuclear power 18,949 9,975
Total (FAS) 18,949 9,975
Total (IFRS) 18,949 9,975
Turnover shared to production of electricity and services
EUR 1,000 2023 2022
Production of electricity 872,868 353,479
Services 3,336 4,729
Total 876,204 358,208
Trade receivables shared to production of electricity and services
EUR 1,000 2023 2022
Production of electricity 18,784 9,780
Services 165 195
Total 18,949 9,975
GROUP-WIDE DISCLOSURES
INFORMATION ABOUT GEOGRAPHICAL AREAS
Teollisuuden Voima Oyj is company owned by Finnish industrial and power companies. TVO delivers electricity
to its shareholders at cost-price (so-called Mankala principle), i.e. delivers the electricity produced to its
shareholders in proportion to their shareholdings in each series.
The Group assets are located in Finland except part of inventories of nuclear fuel acquisition.
Finance income and expenses by segments
EUR 1,000 2023 2022
Nuclear power -96,168 3,822
Finance income and expenses (FAS) -96,168 3,822
The impact of the nuclear waste management obligation -19,532 -77,197
The impact of financial instruments -240 -503
The impact of joint ventures 0 -2,209
The impact of subordinated shareholder loans (hybrid equity) 29,291 24
Other IFRS adjustments 671 878
Total (IFRS) -85,978 -75,185
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5 Work performed for own purpose
EUR 1,000 2023 2022
Personnel expenses related to OL3 7,143 21,310
Total 7,143 21,310
6 Other income
EUR 1,000 2023 2022
Rental income 1,108 1,144
Sales of services 10,092 10,564
Other income 704 1,360
Total 11,904 13,068
7 Materials and services
EUR 1,000 2023 2022
Nuclear fuel 70,015 60,845
Materials and supplies 7,613 6,084
CO
2
emission rights 100 110
Nuclear waste management services
1)
63,674 54,239
Increase (-) or decrease (+) in inventories 40,472 6,948
External services 40,337 9,658
Total 222,211 137,884
1)
See Note 24 Assets and provision related to nuclear waste management obligation.
Employee benefit costs
EUR 1,000 2023 2022
Wages and salaries 70,935 67,398
Pension expenses - defined contribution plans 11,052 10,668
Other compulsory personnel expenses 2,443 2,250
Total 84,430 80,316
Wages, salaries and other compensation for key management are presented in Note 26 Related party.
EMPLOYEE BONUS SYSTEM
The Nomination and Remuneration Committee under the Board of Directors approves TVO’s commitment
and remuneration systems. All permanent and long-term temporary employees are included in the employee
bonus system. Some of the personnel have deposited their bonuses in the Teollisuuden Voima Personnel Fund.
Average number of personnel during financial year
2023 2022
Office personnel 859 836
Manual workers 198 195
Total 1,057 1,031
Number of personnel on 31 December
2023 2022
Office personnel 856 818
Manual workers 189 189
Total 1,045 1,007
8 Personnel expenses
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9 Depreciation and impairment charges
EUR 1,000 2023 2022
Intangible assets
ICT software
449 372
Other intangible assets 38 38
Total 487 410
Property, plant and equipment
Buildings and construction
18,477 4,891
Machinery and equipment 148,548 35,787
Other property, plant and equipment 1,389 410
Decommissioning 9,773 5,494
Total 178,187 46,582
Total 178,674 46,992
10 Other expenses
EUR 1,000 2023 2022
Maintenance services 29,244 21,365
Regional maintenance and service 12,197 9,651
Research services 3,490 2,338
Other external services 54,159 26,265
Real estate tax 14,483 6,489
Rents 1,186 1,457
ICT expenses 7,425 6,207
Personnel related expenses 4,948 4,220
Corporate communication expenses 969 867
Other expenses 32,018 21,766
Total 160,119 100,625
Auditors’ fees and non-audit related services
PricewaterhouseCoopers Oy (EUR 1,000) 2023 2022
Auditing 199 238
Tax services 12 13
Other services 51 65
Total 262 316
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Items included in the income statement
EUR 1,000 2023 2022
Interest income from loans and other receivables
Nuclear waste management loan receivables from equity holders of the company
24,560 3,377
Other 13,629 2,665
Hedge accounted derivatives
Ineffective portion of the change in fair value in fair value hedge relationship
90 1
Non-hedge accounted derivatives
Change in fair value
118 252
Interest income from assets related to nuclear waste management 38,047 0
Finance income, total 76,445 6,295
Interest expenses and other finance expenses
To the Finnish State Nuclear Waste Management Fund
24,560 3,377
To others 106,384 148
Hedge accounted derivatives
1)
Ineffective portion of the change in fair value in fair value hedge relationship 407 1
Realised derivative expenses, net -26,548 0
Non-hedge accounted derivatives
Change in fair value
41 757
Interest expenses of provision related to nuclear waste management 57,579 77,197
Finance expenses, total 162,423 81,480
Total -85,978 -75,185
1)
 In hedge accounting the change in fair value adjustment of the loan was EUR -26.5 (32.1) million and the change of the fair value in hedging
instruments was EUR 26.1 (-31.7) million. The ineffective portion is recognized EUR 0.4 thousand in profit or loss and the change in fair
value resulting from ineffectiveness is activated in the balance sheet until 30 April 2023.
Other comprehensive items
Other comprehensive items related to derivative financial instruments:
EUR 1,000 2023 2022
Cash flow hedges
Changes in the fair value of which the following items have transferred
123,827 207,593
Transfers to the consolidated income statement 29,376 -18
Transfers to inventories 2,474 3,144
Transfers to the nuclear power plant under construction 2,049 -7,269
Transferred items, total 33,899 -4,143
Cash flow hedges, total 89,928 211,736
Total other comprehensive items 89,928 211,736
11 Finance income and expenses
12 Income tax expense
EUR 1,000 2023 2022
Taxes based on the taxable income of the financial year 13 52
Total 13 52
TVO operates at cost-price (so called Mankala principle, see Note 1 General information on the Group), so
TVO does not pay income tax during its operations. Taxes for the financial year consist of non-deductible
expenses in taxation.
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50
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
13 Property, plant and equipment
2023
EUR 1,000 Land and water areas Buildings and construction Machinery and equipment
Other property,
plant and equipment
Construction in progress
and advance payments Decommissioning Total
Acquisition cost 1 Jan 12,075 301,129 1,418,997 55,190 5,427,099 515,420 7,729,910
Increase 0 1,021 31,477 1,280 406,493 19,830 460,101
Decrease 0 -2,628 -7,899 0 -260,416 -28,147 -299,090
Transfer between categories 0 1,181,997 4,223,964 74,785 -5,480,810 0 -64
Acquisition cost 31 Dec 12,075 1,481,519 5,666,539 131,255 92,366 507,103 7,890,857
Accumulated depreciation and impairment charges according to plan 1 Jan 0 233,059 980,897 49,780 0 102,391 1,366,127
Accumulated depreciation from deduction 0 -2,628 -7,898 0 0 0 -10,526
Depreciation for the period 0 18,477 148,548 1,389 0 9,773 178,187
Accumulated depreciation and impairment charges according to plan 31 Dec 0 248,908 1,121,547 51,169 0 112,164 1,533,788
Book value 31 Dec 2023 12,075 1,232,611 4,544,992 80,086 92,366 394,939 6,357,069
Book value 1 Jan 2023 12,075 68,070 438,100 5,410 5,427,099 413,029 6,363,783
2022
EUR 1,000 Land and water areas Buildings and construction Machinery and equipment
Other property,
plant and equipment
Construction in progress
and advance payments Decommissioning Total
Acquisition cost 1 Jan 12,054 294,375 1,372,954 54,322 5,198,735 574,838 7,507,278
Increase 21 3,934 20,206 880 286,317 0 311,358
Decrease 0 -1,623 -8,344 -12 -19,329 -59,418 -88,726
Transfer between categories 0 4,443 34,181 0 -38,624 0 0
Acquisition cost 31 Dec 12,075 301,129 1,418,997 55,190 5,427,099 515,420 7,729,910
Accumulated depreciation and impairment charges according to plan 1 Jan 0 229,791 953,454 49,382 0 96,897 1,329,524
Accumulated depreciation from deduction 0 -1,623 -8,344 -12 0 0 -9,979
Depreciation for the period 0 4,891 35,787 410 0 5,494 46,582
Accumulated depreciation and impairment charges according to plan 31 Dec 0 233,059 980,897 49,780 0 102,391 1,366,127
Book value 31 Dec 2022 12,075 68,070 438,100 5,410 5,427,099 413,029 6,363,783
Book value 1 Jan 2022 12,054 64,584 419,500 4,940 5,198,735 477,941 6,177,754
The OL3 commercial operation started on 1 May 2023. Along with this, in accordance with the IAS 16 Property, Plant and Equipment Standard, the capitalisation of OL3 project costs was ended and the recognition of depreciation was commenced. In addition, approximately EUR 250
million was transferred from the OL3 investment to the value of the nuclear fuel and uranium stock, along with the OL3 commercial operation.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
51
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Right-of-use assets
EUR 1,000
Construction in
progress
Buildings and
construction
Machinery and
equipment
Book value 1 Jan 2023 70,228 2,311 170
Increase 474 294 457
Transfer between categories -70,702 0 70,702
Depreciation for the period 0 -586 -2,498
Book value 31 Dec 2023 0 2,019 68,831
Depreciation charge of right-of-use assets
EUR 1,000 2023 2022
Buildings and construction 586 398
Machinery and equipment 2,498 170
Total 3,084 568
Interest expense (included in finance expenses) 397 -70
Expenses relating to short-term leases (included in other expenses) 40 40
Expenses relating to leases of low-value assets that are not shown above as short-term
leases (included in other expenses)
742 697
EUR 1,000
Construction in
progress
Buildings and
construction
Machinery and
equipment
Book value 1 Jan 2022
*)
70,228 273 212
Increase 0 2,436 128
Depreciation for the period 0 -398 -170
Book value 31 Dec 2022 70,228 2,311 170
*)
 An adjustment of EUR -2.5 million has been made to the 1 Jan 2022 book value of Construction in progress in Right-of-use assets.
Amounts recognised in the statement of profit or loss
The statement of profit or loss shows the following amounts relating to leases:
The assets accumulated as costs for construction in progress acquired through lease agreements was
completed for Machinery and equipment during the year 2023.
Lease liabilities
EUR 1,000 2023 2022
Current 2,753 2,467
Non-current 44,647 47,099
Total 47,400 49,566
The total cash outflow for leases in 2023 was EUR 4,979 (3,075) thousand.
The Group’s leasing activities and how these are accounted for
The Group leases a spare part of the nuclear power plant, offices, vehicles and equipments. These rental
contracts are made for periods of under a year to five years. Part of the contracts of buildings and construc
-
tions are valid until further notice. The holding period of these leases are based on the management’s judge-
ment. The property of machinery and equipment can be redeemed at the earliest in 2025.
The lease payments are discounted using the interest rate implicit in the lease, if the rate can readily be
determined. If that rate cannot be readily determined, the incremental borrowing rate or average interest rate
on the Group’s loans and derivatives is used. For the average interest rate on loans and derivatives on 31
December, see note 27. Payments associated with short-term leases of equipment and vehicles and all leases
of low-value assets are recognised on a straight-line basis as an expense in profit or loss. Short-term leases
are leases with a lease term of 12 months or less. Low-value assets comprise IT equipment.
LEASES
Amounts recognised in the balance sheet
The balance sheet shows the following amounts relating to leases:
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
14 Intangible assets
2023
EUR 1,000 CO
2
emission rights Computer software Other intangible assets Advance payments Total
Acquisition cost 1 Jan 129 22,150 3,843 352 26,474
Increase 100 661 -248 64 577
Decrease -115 -275 275 0 -115
Transfer between categories 0 0 312 -248 64
Acquisition cost 31 Dec 114 22,536 4,182 168 27,000
Accumulated depreciation and impairment charges according to plan 1 Jan 0 20,569 3,429 0 23,998
Accumulated depreciation from deduction 0 -275 275 0 0
Depreciation for the period 0 449 38 0 487
Accumulated depreciation and impairment charges according to plan 31 Dec 0 20,743 3,742 0 24,485
Book value 31 Dec 2023 114 1,793 440 168 2,515
Book value 1 Jan 2023 129 1,581 414 352 2,476
2022
EUR 1,000 CO
2
emission rights Computer software Other intangible assets Advance payments Total
Acquisition cost 1 Jan 159 21,853 4,117 276 26,405
Increase 110 297 0 76 483
Decrease -140 0 -274 0 -414
Transfer between categories 0 0 0 0 0
Acquisition cost 31 Dec 129 22,150 3,843 352 26,474
Accumulated depreciation and impairment charges according to plan 1 Jan 0 20,197 3,666 0 23,863
Accumulated depreciation from deduction 0 0 -275 0 -275
Depreciation for the period 0 372 38 0 410
Accumulated depreciation and impairment charges according to plan 31 Dec 0 20,569 3,429 0 23,998
Book value 31 Dec 2022 129 1,581 414 352 2,476
Book value 1 Jan 2022 159 1,656 451 276 2,542
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Capitalised interest costs during construction
2023
EUR 1,000 Other intangible assets Buildings and construction Machinery and equipment
Other property,
plant and equipment Advance payments Total
Acquisition cost 1 Jan 1,167 27,122 95,394 2,402 1,702,465 1,828,550
Increase 0 0 0 0 31,129 31,129
Decrease 0 0 0 0 -111 -111
Transfer between categories 0 386,125 1,328,445 18,913 -1,733,483 0
Acquisition cost 31 Dec 1,167 413,247 1,423,839 21,315 0 1,859,568
Accumulated depreciation and impairment charges according to plan 1 Jan 948 22,019 77,443 1,950 0 102,360
Depreciation for the period 12 4,618 38,129 252 0 43,011
Accumulated depreciation and impairment charges according to plan 31 Dec 960 26,637 115,572 2,202 0 145,371
Book value 31 Dec 2023 207 386,610 1,308,267 19,113 0 1,714,197
Book value 1 Jan 2023 219 5,103 17,951 452 1,702,465 1,726,190
2022
EUR 1,000 Other intangible assets Buildings and construction Machinery and equipment
Other property,
plant and equipment Advance payments Total
Acquisition cost 1 Jan
*)
1,167 27,122 95,394 2,402 1,612,836 1,738,921
Increase 0 0 0 0 97,471 97,471
Decrease 0 0 0 0 -7,842 -7,842
Acquisition cost 31 Dec 1,167 27,122 95,394 2,402 1,702,465 1,828,550
Accumulated depreciation and impairment charges according to plan 1 Jan 936 21,735 76,446 1,925 0 101,042
Depreciation for the period 12 284 997 25 0 1,318
Accumulated depreciation and impairment charges according to plan 31 Dec 948 22,019 77,443 1,950 0 102,360
Book value 31 Dec 2022 219 5,103 17,951 452 1,702,465 1,726,190
Book value 1 Jan 2022 231 5,387 18,948 477 1,612,836 1,637,879
*)
 The 1 Jan 2022 acquisition cost of Advance payments has been adjusted by EUR -23.3 million.
CAPITALISED BORROWING COSTS INCLUDED IN PROPERTY, PLANT AND EQUIPMENT, AND INTANGIBLE ASSETS
The OL3 commercial operation started on 1 May 2023. Along with this, in accordance with the IAS 16 Property, Plant and Equipment Standard, the capitalisation of OL3 project costs was ended and the recognition of
depreciation was commenced. Until the OL3 commercioal operation, the borrowing costs of the power plant (OL3) have been capitalised and the realised financial income and expenses have been divided by committed
capital. The average share of capitalised borrowing costs in Jan-Apr 2023 was 100.00% (99.75 % in 2022). For the average interest rate on loans and derivatives on 31 December, see note 27.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Summarised balance sheet (EUR 1,000) Posiva Group 2023 Posiva Group 2022
Current
Cash and cash equivalents
13,938 22,234
Other current assets (excluding cash) 13,891 5,021
Total current assets 27,829 27,255
Financial liabilities (excluding trade payables) 0 0
Other current liabilities (including trade payables) -22,070 -21,972
Total current liabilities -22,070 -21,972
Non-current
Assets
79 4,301
Financial liabilities 0 -3,981
Total non-current liabilities 0 -3,981
Net assets 5,838 5,603
Summarised statement of comprehensive income 2023 2022
Turnover 118,223 119,024
Depreciation and impairment charges -20 -18
Interest income 78 14
Interest expense -192 -114
Pre-tax profit from continuing operations 296 1,005
Income tax expense -61 -204
Post-tax profit from continuing operations 235 801
Reconciliation of summarised financial information 2023 2022
Operating net assets 1 Jan 5,603 7,802
Profit/loss for the period 235 801
Dividend distribution 0 -3,000
Closing net assets 5,838 5,603
Interest in joint venture 4,070 3,897
Carrying value 4,070 3,897
15 Investments in joint ventures
EUR 1,000 2023 2022
Posiva Group 4,070 3,897
31 Dec 4,070 3,897
Nature of investment in joint ventures
Name of entity Place of incorporation Group share, % Measurement method
Posiva Oy - A series Eurajoki 60 Equity
Posiva Oy - B series Eurajoki
74 Equity
TVO has a 60 percent shareholding in Posiva Oy. Posiva is responsible for the research and implementation of
final disposal of spent nuclear fuel of its shareholders TVO and Fortum Power and Heat Oy (FPH).
TVO governs Posiva Oy jointly with FPH, based on the Articles of Association and Shareholders Agreement.
TVO is liable for approximately 74 percent of Posiva’s expenses. The duty of Posiva is to carry out all tasks
related to the final disposal of spent nuclear fuel of its shareholder’s nuclear power plants in Finland in order
to fulfill their nuclear waste management obligation as specified in the Nuclear Energy Act. The company’s
operations also include research and construction related to the final disposal solution. Management of
spent fuel is carried out according to the detailed plan examined by the Finnish Radiation and Nuclear Safety
Authority and approved by The Ministry of Economic Affairs and Employment.
Posiva Solutions Oy, a wholly-owned subsidiary of Posiva Oy, was founded on 20 May 2016. Posiva Solutions
Oy focuses on the sales of the know-how Posiva has accumulated from its design, research and development
activities in the final disposal of spent nuclear fuel, as well as on associated consulting services.
SUMMARISED FINANCIAL INFORMATION (FAS) FOR THE POSIVA GROUP
Posiva Oy and Posiva Solutions Oy are private companies and there is no quoted market prices available for
their shares.
In the consolidated financial statements, the Posiva Group is accounted for according to the equity method of
accounting.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
16 Book values of financial assets and liabilities by categories
2023
EUR 1,000 Fair value through profit or loss
At fair value through other
comprehensive income items Amortised cost Book value total Fair value total Note
Non-current assets
Loans and other receivables 784,734 784,734 784,734 17
Share investments 1,692 1,692 1,692 18
Derivative financial instruments, no hedge accounting 13,404 13,404 13,404 20
Derivative financial instruments, fair value hedge accounting 14,372 14,372 14,372 20
Derivative financial instruments, cash flow hedge accounting 141,300 141,300 141,300 20
Current assets
Trade and other receivables
95,973 95,973 95,973 17
Derivative financial instruments, no hedge accounting 201 201 201 20
Derivative financial instruments, cash flow hedge accounting 3,354 3,354 3,354 20
Cash and cash equivalents 287,684 287,684 287,684
Total by category 27,977 146,346 1,168,391 1,342,714 1,342,714
Non-current liabilities
Loan from the Finnish State Nuclear Waste Management Fund
727,500 727,500 727,500 22
Other financial liabilities 4,278,295 4,278,295 4,197,754 22
Derivative financial instruments, no hedge accounting 36 36 36 20
Derivative financial instruments, fair value hedge accounting 14,217 14,217 14,217 20
Derivative financial instruments, cash flow hedge accounting 5,607 5,607 5,607 20
Current liabilities
Current financial liabilities
371,387 371,387 371,387 22
Trade payables 22,793 22,793 22,793 23
Other current liabilities 192,659 192,659 192,659 23
Derivative financial instruments, no hedge accounting 6,459 6,459 6,459 20
Derivative financial instruments, cash flow hedge accounting 248 248 248 20
Total by category 20,712 5,855 5,592,634 5,619,201 5,538,659
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
2022
EUR 1,000 Fair value through profit or loss
At fair value through other
comprehensive income items Amortised cost Book value total Fair value total Note
Non-current assets
Loans and other receivables 710,962 710,962 710,962 17
Share investments 1,935 1,935 1,935 18
Derivative financial instruments, no hedge accounting 388 388 388 20
Derivative financial instruments, cash flow hedge accounting 224,795 224,795 224,795 20
Current assets
Trade and other receivables
233,078 233,078 233,078 17
Derivative financial instruments, no hedge accounting 195 195 195 20
Derivative financial instruments, cash flow hedge accounting 4,268 4,268 4,268 20
Cash and cash equivalents 353,203 353,203 353,203
Total by category 583 230,998 1,297,242 1,528,823 1,528,823
Non-current liabilities
Loan from the Finnish State Nuclear Waste Management Fund
651,339 651,339 651,339 22
Other financial liabilities 4,531,264 4,531,264 4,275,708 22
Derivative financial instruments, no hedge accounting 13,637 13,637 13,637 20
Derivative financial instruments, fair value hedge accounting 26,403 26,403 26,403 20
Current liabilities
Current financial liabilities
258,669 258,669 258,669 22
Trade payables 16,821 16,821 16,821 23
Other current liabilities 137,417 137,417 137,417 23
Derivative financial instruments, no hedge accounting 95 95 95 20
Derivative financial instruments, cash flow hedge accounting 447 447 447 20
Derivative financial instruments, fair value hedge accounting 2 2 2 20
Total by category 40,137 447 5,595,510 5,636,094 5,380,538
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
57
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Disclosure of fair value measurements by the level of fair value measurement hierarchy
2023
EUR 1,000 Level 1 Level 2 Level 3
Financial assets at fair value
Derivative financial instruments at fair value through profit or loss
13,605
Derivative financial instruments designated as cash flow hedges 144,654
Derivative financial instruments designated as fair value hedges 14,372
Share investments 1,692
Total 172,631 1,692
Financial liabilities at fair value
Derivative financial instruments at fair value through profit or loss
6,495
Derivative financial instruments designated as cash flow hedges 5,855
Derivative financial instruments designated as fair value hedges 14,217
Total 26,567
2022
EUR 1,000 Level 1 Level 2 Level 3
Financial assets at fair value
Derivative financial instruments at fair value through profit or loss
583
Derivative financial instruments designated as cash flow hedges 229,063
Share investments 1,935
Total 229,646 1,935
Financial liabilities at fair value
Derivative financial instruments at fair value through profit or loss
13,732
Derivative financial instruments designated as cash flow hedges 447
Derivative financial instruments designated as fair value hedges 26,404
Total 40,584
FAIR VALUE ESTIMATION
The derivative financial instruments are initially recognized at fair value on the date a derivative contract is
entered into and are subsequently measured at fair value. The fair values are determined using a variety of
methods and financial valuation techniques, and assumptions are based on market quotations at the balance
sheet date (Level 2). The fair value of the interest rate swaps is the present value of the estimated future cash
flows. The forward contracts are measured using the market quotes at the closing date. The changes in fair
value of the interest rate swaps and forward contracts are recognized in equity or profit or loss, depending on
whether they qualify for cash flow hedges or not.
On 31 December 2023, TVO has unquoted shares worth EUR 1,692 (1,935) thousand. Direct market prices
are not available for unquoted shares and therefore their fair value is determined using methods based on
management judgement.
Fair values of long-term loans, have been estimated as follows:
Listed bonds are traded on an active market and their fair values are based on the quoted market value as of
31 December (Level 1). The fair value of fixed rate and market-based floating rate loans is estimated using the
expected future payments discounted at market interest rates (Level 2).
The carrying amounts of current financial assets and liabilities approximate their fair value, as the impact of
discounting is not significant.
According to IFRS 9, all derivatives are classified as at fair value through profit or loss. In the table, derivatives
subject to cash flow hedge accounting are presented according to the method of recognition, i.e. at fair value
through other comprehensive income.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
58
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
2022
EUR 1,000 Gross amounts
Related amounts
not set off Net amount
Derivative financial assets 229,646 -40,584 189,062
Derivative financial liabilities -40,584 40,584 0
For the financial derivative assets and liabilities subject to enforceable master netting arrangements or similar
arrangements above, each agreement between the Group and the counterparty allows for net settlement of
the relevant financial derivative assets and liabilities when both elect to settle on a net basis. In the absence
of such an election, financial assets and liabilities will be settled on a gross basis, however, each party to the
master netting agreement or similar agreement will have the option to settle all such amounts on a net basis in
the event of default of the other party. Per the terms of each agreement, an event of default includes failure by
a party to make payment when due.
Loans and other receivables (non-current assets)
EUR 1,000 2023 2022
Nuclear waste management loan receivables 727,500 651,339
Loan receivables 504 2,893
Other receivables 56,730 56,730
Total 784,734 710,962
Nuclear waste management loan receivables are allocated as follows
EUR 1,000 2023 2022
EPV Energia Oy 57,324 56,467
Fortum Oyj 232,341 228,962
Oy Mankala Ab 71,798 0
Kemira Oyj 16,037 15,910
Pohjolan Voima Oyj 350,000 350,000
Total 727,500 651,339
17 Loans and other receivables
Other receivables constitute mainly of the OL3 additional delay compensation of EUR 56,700 (56,700) thou-
sand. The compensation will become due during the final takeover of OL3 in April 2025 at the earliest. The
loan receivables in 2022 constitute mainly of the loan receivables from Posiva Oy (EUR 2,389 thousand).
According to section 52 of the Nuclear Energy Act, TVO, in exchange for collateral payments, is entitled to
receive fixed-term loans from the Finnish State Nuclear Waste Management Fund, the amount which cannot
be larger than 60 percent of the latest confirmed TVO’s share in the Finnish State Nuclear Waste Management
Fund. The nuclear waste management loan receivables formed by the amount loaned from the Finnish State
Nuclear Waste Management Fund, has been further loaned (with the same terms and conditions) to the equity
holders of the company and to Fortum Oyj. The loan from the Finnish State Nuclear Waste Management Fund
is unsecured between Teollisuuden Voima Oyj and the shareholders. The commercial terms of the loan is 12
month Euribor + 0.5 marginal.
Trade and other receivables (current assets)
EUR 1,000 2023 2022
Trade receivables 18,949 9,975
Prepayments and accrued income 31,589 16,045
Other receivables 45,435 207,058
Total 95,973 233,078
The maximum credit loss risk of trade and other receivables corresponds to their book value. On 31 December
2023, the Group had EUR 3 (167) thousand overdue receivables of which EUR 0 (0) thousand was overdue more
than six months. The overdue receivables are not expected to cause the Group credit losses or impairments.
Offsetting financial assets and liabilities
2023
EUR 1,000 Gross amounts
Related amounts
not set off Net amount
Derivative financial assets 172,631 -26,567 146,064
Derivative financial liabilities -26,567 26,567 0
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
59
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
18 Investments in shares
EUR 1,000 2023 2022
Share investments 1,692 1,935
Total 1,692 1,935
19 Inventories
EUR 1,000 2023 2022
Raw uranium and natural uranium
Replacement cost
564,859 159,407
Book value 183,183 92,740
Difference 381,676 66,667
Raw uranium and natural uranium 183,183 92,740
Nuclear fuel 293,197 169,684
Materials and supplies 10,552 9,954
Total 486,932 272,378
20 Derivative financial instruments
Nominal values of the derivative financial instruments
2023 Maturity structure
EUR 1,000 < 1 year 1–3 years 3–5 years 5–7 years > 7 years Total
Interest rate swaps 400,000 620,000 850,000 405,000 2,275,000
Forward foreign exchange contracts and swaps
1)
22,205 34,457 3,447 60,109
Cross-currency swaps 137,091 194,246 331,337
Total 159,296 434,457 623,447 1,044,246 405,000 2,666,446
2022 Maturity structure
EUR 1,000 < 1 year 1–3 years 3–5 years 5–7 years > 7 years Total
Interest rate swaps 265,000 400,000 540,000 340,000 640,000 2,185,000
Forward foreign exchange contracts and swaps
1)
14,593 24,381 3,424 1,729 44,127
Cross-currency swaps 224,873 224,873
Total 279,593 649,254 543,424 341,729 640,000 2,454,000
1)
 Forward contracts are mainly used for hedging fuel purchases against currency risk. The opposite forward contracts, which have been
acquired to adjust these hedging amounts are netted in the table with each other, whereby the nominal describes the protected position.
Fair values of the derivative financial instruments
2023
EUR 1,000 Positive Negative Total
Interest rate swaps
Cash flow hedges
137,958 -5,263 132,695
Fair value hedges 14,372 -14,217 155
Forward foreign exchange contracts and swaps
Cash flow hedges
6,696 -592 6,104
Non-hedges 569 -82 487
Cross-currency swaps
Non-hedges
13,036 -6,413 6,623
Total 172,631 -26,567 146,064
Material items under prepayments and accrued income
EUR 1,000 2023 2022
Accrued interest costs 38,768 20,538
Accrued insurance costs 1,919 2,511
Collateral received 0 4,690
Arrangement fee for loans -14,207 -17,159
Other prepaid expenses and accrual income 5,109 5,465
Total 31,589 16,045
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
60
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
The interest rate hedging in fair value hedge accounting
EUR 1,000 2023 2022
The book value of the derivative financial instruments, receivables -317 -26,404
Nominal value 705,000 450,000
Due date 02/2025–12/2033 01/2023–03/2027
The book value of the hedged item, liabilities 705,129 476,585
The degree of hedging 1:1 1:1
The change of the basic value in valid hedging instruments since 1.1. 26,087 -31,657
The effectiveness of the hedge used to determine the change of value for the hedged item -26,526 32,002
The weighted average interest rate during the year 3.88% 2.91%
THE EFFECT OF HEDGE ACCOUNTING IN FINANCIAL POSITION AND RESULT
In fair value hedge accounting, the accumulated amount of the fair value adjustment of the loan is EUR
0.1 (26.6) million.
The interest rate hedging in cash flow hedge accounting
EUR 1,000 2023 2022
The book value of the derivative financial instruments, liabilities 132,695 217,561
Nominal value 1,570,000 1,735,000
Due date 01/2025–09/2032 01/2023–09/2032
The degree of hedging 1:1 1:1
The change of the basic value in valid hedging instruments since 1.1. -84,865 211,762
The effectiveness of the hedge used to determine the change of value for the hedged item 84,865 -211,931
The weighted average interest rate during the year 2.62% 3.18%
The currency hedging in cash flow hedge accounting
EUR 1,000 2023 2022
The book value of the derivative financial instruments, receivables 6,696 11,503
The book value of the derivative financial instruments, liabilities -592 -431
Nominal value 60,109 44,127
Due date 01/2024–01/2028 01/2023–01/2028
The degree of hedging 1:1 1:1
The change of the spot value in valid hedging instruments since 1.1. -5,638 3,092
The effectiveness of the hedge used to determine the change of value for the hedged item 5,638 -3,092
The weighted average of protected rate (inc. forward points) during the year (USD) 1.25 1.40
The weighted average of protected rate (inc. forward points) during the year (SEK) 0.00 10.41
2022
EUR 1,000 Positive Negative Total
Interest rate swaps
Cash flow hedges
217,561 217,561
Fair value hedges -26,404 -26,404
Forward foreign exchange contracts and swaps
Cash flow hedges
11,503 -431 11,072
Non-hedges 582 -173 409
Cross-currency swaps
Non-hedges
-13,576 -13,576
Total 229,646 -40,584 189,061
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
61
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
21 Equity
SHARE CAPITAL
The registered share capital of the Company according to the Articles of Association was EUR 600,365
thousand on 31 December 2023. TVO does not have a maximum or minimum limit for the share capital. The
number of the shares on 31 December 2023 was 1,360,000,000. The shares are divided into the two series
of shares as follows: A series 680,000,000 and B series 680,000,000. The shares have no nominal price as
is stipulated in the Finnish Limited Liability Companies Act.
According to the Articles of Association, TVO delivers electricity to its shareholders at cost-price, i.e. it
delivers the electricity produced or procured to its shareholders in proportion to their shareholding in each
series. Each of the shareholders of each series is liable for the variable and fixed annual costs that are
specified in detail in the Articles of Association. The Company prepares annually a balance sheet divided
into series of shares. The balance sheet, which will be presented to the Shareholders’ Meeting, specifies the
assets, liabilities and equity of the different series of shares.
Share number reconciliations
EUR 1,000 Number of shares Share capital
Share premium reserve
and statutory reserve
31
Dec 2022 1,360,000,000 600,365 242,383
31
Dec 2023 1,360,000,000 600,365 242,383
Share number
31 Dec 2023 31 Dec 2022
A series 680,000,000 680,000,000
B series 680,000,000 680,000,000
Total 1,360,000,000 1,360,000,000
On 31 December 2023, the Company has two registered share series: A and B.
SHARE PREMIUM RESERVE
The share premium reserve contains the share premiums of the share issues, EUR 232,435 thousand.
STATUTORY RESERVE
The statutory reserve consists of  EUR 9,948 thousand paid by Imatran Voima Oy, the predecessor of Fortum
Power and Heat Oy, in 1979 when it became an equity holder in the company.
FAIR VALUE AND OTHER RESERVES
Profits and losses incurred by fair value changes of available-for-sale investments and derivatives used as
cash flow hedges are entered in this reserve. The fair changes of derivatives are transferred to the profit/loss
statement, when the cash flows they have been hedging have been realized.
SUBORDINATED SHAREHOLDER LOANS (HYBRID EQUITY)
The carrying value of the interest-bearing subordinated shareholder loans in the balance sheet 31 December
2023 was EUR 929,300 thousand. There is no maturity date for the subordinated shareholder loans (hybrid
equity), but the borrower is entitled to repay the loan in one or several installments. The Board of Directors
of the borrower has the right to decide not to pay interest during any current interest period. Unpaid interest
does not accumulate to the following interest periods.
Subordinated shareholder loans (hybrid equity) are unsecured and in a weaker preference position than
promissory notes. Holders of subordinated shareholder loans have no shareholder rights, nor does the bond
dilute the ownership of the Company’s shareholders.
RETAINED EARNINGS
This item contains the earnings from previous financial periods and the profit/loss of the financial year.
The interests of the subordinated shareholder loans (hybrid equity) is recorded to Retained earnings.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
62
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
22 Interest-bearing liabilities
EUR 1,000 2023 2022
Non-current interest-bearing liabilities
Loan from the Finnish State Nuclear Waste Management Fund
727,500 651,339
Bonds 3,458,390 3,254,801
Loans from financial institutions 488,048 1,212,014
Loans from others 287,210 17,350
Lease liabilities 44,647 47,099
Derivative financial instruments 19,859 40,040
Total 5,025,654 5,222,643
Current interest-bearing liabilities
Current portion of long-term bonds
342,530 205,595
Current portion of loans from financial institutions 26,104 50,608
Current portion of lease liabilities 2,753 2,467
Derivative financial instruments 6,708 544
Total 378,095 259,214
Total 5,403,749 5,481,857
23 Trade payables and other current liabilities
EUR 1,000 2023 2022
Advances received 68,063 23,064
Trade payables 22,793 16,821
Accruals and deferred income and other liabilities 192,659 137,417
Total 283,515 177,302
TVO has on 31 December 2023 issued EUR-denominated Private Placement loans amounting to EUR 613.0
million and loans denominated in SEK, amounting to EUR 331.3 million. Foreign currency floating rate and
fixed rate loans are translated into EUR at the official exchange rate of the ECB on the balance sheet date.
The Private Placements have been swapped by using cross-currency swaps. In 2023, the effect of foreign
exchange hedges was positive amounting to EUR 20.2 million and correspondingly, the effect of foreign
currency denominated loans was negative amounting to EUR 20.2 million.
Accruals and deferred income and other liabilities are allocated as follows
EUR 1,000 2023 2022
Finnish State Nuclear Waste Management Fund 53,660 40,227
Accrued interests 55,953 50,316
Accrued personnel expenses 24,126 22,778
Accruals related to CO
2
 emission rights 114 129
Others 58,806 23,967
Total 192,659 137,417
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
63
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
24 Assets and provision related to nuclear waste management obligation
SHARE IN THE FINNISH STATE NUCLEAR WASTE MANAGEMENT FUND
Under the Nuclear Energy Act in Finland, TVO has a legal obligation to fully fund the legal liability for nuclear
waste including the decommissioning of the power plant through the Finnish State Nuclear Waste Manage
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ment Fund (=nuclear waste management obligation).
TVO contributes funds to the Finnish State Nuclear Waste Management Fund to cover future obligations
based on the legal liability calculated according to the Nuclear Energy Act. The carrying value of the fund in
TVO’s balance sheet is calculated according to the interpretation in IFRIC 5 “Rights to Interests arising from
Decommissioning, Restoration and Environmental Rehabilitation Funds.
PROVISION RELATED TO THE NUCLEAR WASTE MANAGEMENT OBLIGATION
The provision is related to future obligations for decommissioning of the power plant, management of spent
fuel and operating waste. The fair value of the provision is calculated according to IAS 37 based on discounted
future cash flows which are based on estimated future expenses. The cost estimate is based on a nuclear
waste management plan covering the management of spent nuclear fuel and operating waste and decommis
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sioning of the nuclear power plant. The new total cost estimate based on a new nuclear waste management
technical plan and schedule is updated every third year. The next update is in 2025. The technical plans,
timing and cost estimates are approved by governmental authorities.
The total cost estimate based on a new nuclear waste management technical plan and schedule was updated
in June 2022. The present initial value of the provision for the decommissioning of a nuclear power plant (at
the time of commissioning the nuclear power plant) has been capitalised as property, plant and equipment
and will be adjusted later for possible changes in the plan. The costs for spent fuel disposal are expensed
based on fuel usage during the operating time of the plant. The impact of any changes to the plans and
schedules will be recognised immediately in the income statement based on fuel used by the end of each
accounting period.
At the end of the year, the balance sheet contains the following assets and liabilities
concerning the nuclear waste management obligation
EUR 1,000 2023 2022
The carrying value of TVO’s share in the Finnish State Nuclear Waste Management Fund (non-current assets) 1,035,276 999,662
Provision related to nuclear waste management (non-current liabilities)
Beginning of the year
1,294,345 1,368,291
Increase/decrease in provision 21,327 -37,388
Used provision -83,900 -84,307
Changes due to discounting 57,580 47,749
End of the year 1,289,352 1,294,345
The discount rate % 4.0 4.0
TVO’s legal liability as stated in the Nuclear Energy Act and the Company’s share
in the Finnish State Nuclear Waste Management Fund
EUR 1,000 2023 2022
Liability for nuclear waste management according to the Nuclear Energy Act 1,918,200 1,839,600
TVO's funding target obligation 2024 (2023) to the Finnish State Nuclear Waste Management Fund 1,525,100 1,457,900
TVO's share in the Finnish State Nuclear Waste Management Fund 31.12.2023 (31.12.2022) 1,457,900 1,436,100
Difference between the liability and TVO's share of the fund 31.12.2023 (31.12.2022) 460,300 403,500
The OL3 plant unit’s nuclear waste liability calculation according to IAS 37 started and a provision was recorded in
the balance when the plant unit was made critical on 21 December 2021. The OL1/OL2 plant units’ and the OL3
plant unit’s liabilities and shares in the Fund are calculated and recorded separately, as the corresponding total
cost estimates are prepared separately for the plant units. The legal liability calculated according to the Nuclear
Energy Act in Finland and decided by the supervising authority (Ministry of Economic Affairs and Employment)
is EUR 1,918.2 (1,839.6) million on 31 December 2023 (31 December 2022), of which EUR 1,493.2 (1,437.8)
million belongs to OL1/OL2 and EUR 425.0 (401.8) million belongs to OL3. The carrying value of the liability in the
balance sheet calculated according to IAS 37 is EUR 1,289.4 (1,294.3) million on 31 December 2023. The main
reason for the difference between the carrying value of the provision and the legal liability is the fact that the legal
liability is not discounted to net present value. Since the future cash flow is spread over 100 years, the difference
between non-discounted legal liability and the discounted provisions are remarkable. The change in the discount
rate has an effect on the provision. The provision increases, when the discount rate used is lowered.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
64
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
According to Section 40 Clause 1 of the Nuclear Energy Act, the Fund target for each calendar year shall be
equal to the liability of the previous calendar year. In order to balance the effects of nuclear waste management
costs on several operating years of the nuclear plant, the Fund target is however lower than the liability, while
the preconditions stipulated in Section 40 are fulfilled. Time-based periodisation (40 years) is used to calculate
the OL3 plant unit’s Fund target, according to Section 40 Clause 2 of the Nuclear Energy Act and the Govern
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ment Decree (991/2017) Section 5.
TVO’s share in the Finnish State Nuclear Waste Management Fund is EUR 1,457.9 (1,436.1) million on 31
December 2023. The carrying value of the TVO’s share in the Fund in the balance sheet is EUR 1,035.3 (999.7)
million. The difference is due to the fact that IFRIC 5 limits the carrying amount of TVO’s share in the Finnish
State Nuclear Waste Management Fund to the amount of the related liability since TVO does not have control
over the Finnish State Nuclear Waste Management Fund. As long as the Fund is overfunded from an IFRS
perspective, the effects to operating profit from this adjustment will be positive if the provision increases more
than the Fund, and negative if the actual value of the Fund increases more than the provision. On 31 December
2023 the OL1/OL2 plant units’ share in the Fund is higher than the provision according to IFRS, due to which
above-mentioned adjustment is recorded for the OL1/OL2 plant units’ nuclear waste management IFRS calcu
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lation. The OL3 plant unit’s share in the Fund is in turn lower than the provision according to IFRS, and therefore
above-mentioned adjustment is not recorded.
The difference between the funding target and the share in the Finnish State Nuclear Waste Management Fund
at the end of each year is due to the funding target being completed by paying the nuclear waste management
fee only during the first quarter of the following year. In order to supplement the statutory protected portion,
TVO provided the Nuclear Waste Management Fund with a cash security of approximately EUR 44 million. In
2022, the Nuclear Waste Management Fund started investment activities in accordance with new legislation. In
2023, the investment activities of the Finnish State Nuclear Waste Management Fund were positive; this means
that a part of the investment profits from 2023 will be allocated in order to cover the legal protected portion, and
the part of the profits exceeding that portion will reduce TVO’s nuclear waste management fee for 2023. In this
case, the cash security for the protected portion that was submitted to the Fund in 2023 will be returned to TVO
in March 2024. The nuclear waste management fee for 2023 will be confirmed in March 2024.
TVO has issued to the State the shareholdersabsolute guarantees as security for the unfunded legal liability.
The security also covers unexpected events as determined in the Nuclear Energy Act. The guarantees are
included in the nuclear waste management obligations, see note 25 Obligations and other commitments.
Finnish participants in the State Nuclear Waste Management Fund are allowed to borrow from the Fund
according to defined rules. TVO utilises the right to borrow funds back and has pledged the receivables from the
shareholders as security for the loans. Maturity of the nuclear waste management loans is three years. The loans
are included in the interest-bearing liabilities, see note 22 Interest-bearing liabilities.
Pledged promissory notes and financial guarantees
EUR 1,000 2023 2022
Pledged promissory notes to the Finnish State Nuclear Waste Management Fund 727,500 651,339
Guarantees given by shareholders related to the nuclear waste management obligation 557,740 534,990
25 Obligations and other commitments
As a result of the amendment to the Nuclear Energy Act which entered into force in May 2021, a company liable
for nuclear waste management or its shareholder is entitled to borrow back a maximum of 60 percent of its
share in the Nuclear Waste Management Fund as of 2022. Before the amendment to the Nuclear Energy Act the
company under the nuclear waste management obligation was entitled to borrow an amount equal to 75 percent
of its share in the Finnish State Nuclear Waste Management Fund. TVO has lent the funds borrowed from the
fund to its shareholders and has pledged the receivables from the shareholders as collateral for the loan.
The absolute guarantees given by the equity holders of the Company are given to cover the unfunded portion
of the nuclear waste management obligation and unexpected events as determined in the Nuclear Energy
Act. According to Section 44 of the Nuclear Energy Act, a party with a waste management obligation shall
supply the State with collateral security fulfilling the conditions provided in Section 45 before commencing
waste-generating operations and otherwise always by the end of June so that the total of collateral equals the
difference between the liabilities for the calendar year and the Fund target. At the start of the OL3 plant unit’s
operations, the Ministry of Economic Affairs and Employment has approved TVO’s equity holders’ absolute
guarantees as collateral security supplied to the State.
Commitments
Contingent liabilities given on own behalf
EUR 1,000 2023 2022
Bank guarantees 550 550
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
65
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
t CO
2
2023
EUR 1,000 t CO
2
2022
EUR 1,000
Total annual emissions from production facilities 1,528 1,449
Possessed emission rights 1,615 1,604
Emission rights bought
1)
1,450 100 1,300 110
1)
 The purchases of the emission rights are included in materials and services. The emission rights that TVO possesses on 31 December are
included in intangible assets on the balance sheet.
26 Related party
The Group’s related parties include parent company Teollisuuden Voima Oyj and its subsidiary and joint
ventures. The related parties also include the Board of Directors and the Executive Management including the
President and CEO.
Group’s parent company and subsidiaries
Company Home country Ownership, %
Share in
voting rights, %
Teollisuuden Voima Oyj Finland
TVO Nuclear Services Oy Finland 100 100
Transactions with related parties are as follows
2023
EUR 1,000 Sales Purchases Receivables Liabilities
Posiva Group 10,834 82,050 3,582 6,694
2022
EUR 1,000 Sales Purchases Receivables Liabilities
Posiva Group 11,324 82,337 6,212 3,031
PENDING COURT CASES AND DISPUTES
TVO is party to an arbitration procedure related to the condenser replacement at OL1 and OL2 that was
carried out in 2017 and 2018. The counterparty to the arbitration is Balcke-Dürr GmbH. TVO considers the
claims presented by the counterparty in the arbitration to be unfounded and demands that they be rejected
and that TVO’s legal expenses be compensated for.
At the end of the fiscal year 2023, TVO had no other pending court cases or disputes.
CO
2
EMISSION RIGHTS
TVO’s CO
2
 emissions are generated by the releases of the reserve boilers and the emergency diesel gener-
ators. In principle TVO has, on 31 December, 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 TVO possesses, TVO has
booked the expense for exceeding emission rights at the market value on 31 December.
Investment commitments
Agreement-based commitments regarding the acquisition of property, plant and equipment:
EUR 1,000 2023 2022
Investment commitments 117,500 455,400
Total 117,500 455,400
Transactions with related parties are as follows
2023
EUR 1,000 Sales Purchases Receivables Liabilities
PVO, Fortum Oyj, Fortum Power and Heat Oy 737,598 7,944 614,542 854,106
2022
EUR 1,000 Sales Purchases Receivables Liabilities
PVO, Fortum Oyj, Fortum Power and Heat Oy 294,875 32,268 589,844 808,792
TEOLLISUUDEN VOIMA OYJ’S SHAREHOLDERS
Related parties according to the IAS 24 standard are also two of TVO’s biggest shareholders, Pohjolan Voima
Oyj (PVO) and Fortum Power and Heat Oy (FPH), which have significant authority, as well as PVO’s biggest
owner UPM-Kymmene Oyj (UPM) and FPH’s owner Fortum Oyj.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
66
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Senior management’s employee benefits
The senior management of TVO comprises of the Board of Directors and the Executive Management, including
the President and the CEO. The Group has no business transactions with senior management.
27 Financial risk management
Financing and financial risks are centrally managed by the finance operations of the TVO Group in accordance
with the Finance Policy approved by the Board of Directors. Compliance with the Finance Policy is monitored
by the Board of Directors and the Company’s management. The SVP, Treasury is responsible for financing
operations. The TVO Group is exposed to a variety of financial risks: liquidity, market and credit risk. These do
not include the receivables and obligations between the Company and its owners, as the Company operates
at cost-price (see note 1 General information on the Group).
The TVO Groups guiding financial principles are to ensure access to adequate liquidity reserves and, secondly,
to reduce volatility in cash flows deriving form short and medium-term fluctuations in the financial markets.
In accordance with the Finance Policy of the Company, derivative instruments are entered into only with
hedging purposes and they should qualify for hedge accounting under IFRS.
LIQUIDITY RISK
Liquidity and refinancing risk is defined as the amount by which earnings and cash flows are affected as a
result of the Company not being able to secure sufficient financing. In addition to sufficient liquid assets and
committed credit lines, the TVO Group aims to diminish the refinancing risk by spreading the maturity dates of
its loans and different financing sources as much as possible.
In accordance with the Finance Policy of the TVO Group, the maturities and refinancing of long-term loans are
planned so that no more than 25 percent of the outstanding loans mature during the next rolling 12-month
period. The loans borrowed from the Finnish State Nuclear Waste Management Fund, which have been lent
further to the shareholders, form an exception.
The TVO Group issues commercial papers under the Commercial Paper Program for short-term funding
purposes. There shall always exist committed credit lines with a minimum duration of 12 months for an
amount corresponding to the funding needs of the Company for the following 12 months.
In addition to long-term committed credit lines, the Company shall maintain liquid assets at an amount stated
in the Finance Policy. In accordance with the Finance Policy, bank deposits, certificates of deposits, commercial
papers, municipal papers, and treasury notes as well as money market funds are accepted as investments, and
they are mostly for the short-term purposes with maximum duration of 12 months.
The employee benefits of the Executive Management and CEO
EUR 1,000 2023 2022
Salary and other short-term employee benefits of the CEO 348 352
Salary and other short-term employee benefits of the Executive Management other than
the CEO
1,706 1,670
Statutory pension contributions of the Executive Management other than the CEO 280 274
Supplementary pensions of the Executive Management other than the CEO 175 151
Total 2,509 2,447
Compensation to the Board of Directors
EUR 1,000 2023 2022
Board of Directors on 31 December 2023
Tiina Tuomela
41 49
Ilkka Tykkyläinen 49 46
Hannu Jokinen 37 36
Esa Kaikkonen 32 35
Tapio Korpeinen 40 40
Petra Lundström 37 31
Timo Rajala, from 1 Jan 2023 36 0
Anders Renvall 32 31
Rami Vuola 37 36
Former Board members
Juha-Pekka Weckström, until 31 Dec 2022
1 36
Total 342 340
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
67
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Undiscounted cash flows of financial liabilities
2022
EUR 1,000 2023 2024 2025 2026 2027– Total
Loans from financial institutions
1)
50,608 426,104 626,104 126,104 55,272 1,284,191
Financing costs
2)
39,342 36,354 24,490 2,001 3,464 105,650
Loan from the Finnish State Nuclear
Waste Management Fund
3)
651,339 651,339
Financing costs 3,377 25,318 24,761 23,474 22,705 99,634
Bonds
4)
205,665 644,900 500,000 650,000 1,513,000 3,513,565
Financing costs 71,881 65,186 54,345 43,755 90,012 325,180
Loans from others
4)
Financing costs
Lease liabilities
2,432 2,314 44,009 406 406 49,566
Shareholder loans 29,200 29,200
Other liabilities 63,695 63,695
Interest rate derivatives 29,455 32,780 26,900 26,895 68,969 184,998
Total 495,654 1,232,956 1,300,607 872,634 2,405,168 6,307,019
Forward foreign exchange contracts 543 31 30 1 0 604
1)
 Repayments in 2023 are included in current liabilities in the balance sheet.
2)
 In addition to interest costs financing costs include commitment fees.
3)
 The loan is renewed yearly and connected interest payments are calculated for five years.
4)
 The placements in foreign currency have been swapped into EUR-floating or fixed cash flow using cross-currency swaps.
Undiscounted cash flows of financial liabilities
2023
EUR 1,000 2024 2025 2026 2027 2028– Total
Loans from financial institutions
1)
28,474 426,104 26,104 26,104 19,028 525,814
Financing costs
2)
17,251 15,577 1,878 1,153 429 36,288
Loan from the Finnish State Nuclear
Waste Management Fund
3)
727,500 727,500
Financing costs 24,560 31,604 31,518 25,378 24,764 137,824
Bonds
4)
348,943 500,000 650,000 675,000 1,632,247 3,806,190
Financing costs 97,860 95,085 84,511 77,144 168,801 523,401
Loans from others
4)
280,000 280,000
Financing costs 14,083 14,083 14,083 14,083 116,346 172,678
Lease liabilities 2,771 44,133 516 503 11 47,934
Shareholder loans 47,461 47,461
Other liabilities 105,839 105,839
Interest rate derivatives 51,317 43,971 43,432 36,839 84,217 259,776
Total 738,559 1,170,557 852,042 856,204 3,053,343 6,670,705
Forward foreign exchange contracts 297 199 209 0 0 705
1)
 Repayments in 2024 are included in current liabilities in the balance sheet.
2)
In addition to interest costs, financing costs include commitment fees.
3)
 The loan is renewed yearly and connected interest payments are calculated for five years.
4)
 The placements in foreign currency have been swapped into EUR-floating or fixed cash flow using cross-currency swaps.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
68
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Expected cash flows from financial instruments under cash flow hedge accounting
2023
EUR 1,000 2024 2025 2026 2027 2028– Total
Interest rate swaps
Cash flows
41,157 37,902 38,464 37,553 84,217 239,293
2022
EUR 1,000 2023 2024 2025 2026 2027– Total
Interest rate swaps
Cash flows
25,216 26,802 24,081 24,294 70,865 171,258
Sensitivity to market risks
Sensitivity to market risks arising from financial instruments as required by IFRS 7.
EUR 1,000 Income statement
2023
Equity Income statement
2022
Equity
+ 10% change in EUR/USD exchange rates -6,011 -4,217
+ 10% change in EUR/SEK exchange rates 0 -196
- 10% change in EUR/USD exchange rates 6,011 4,217
- 10% change in EUR/SEK exchange rates 0 196
1% upward parallel shift in interest rates -4,260 63,462 -10,993 58,179
1% downward parallel shift in interest rates 4,260 -76,134 10,993 -69,796
Assumptions:
The change in EUR/USD and EUR/SEK exchange rates are assumed to be +/- 10 per cent.
The currency position includes the forward foreign exchange contracts which are designated as cash flow
hedges and recognized in equity and the forward foreign exchange contracts not qualified as cash flow
hedges, affecting the income statement.
The variation in interest rates is assumed to be 1 percentage point parallel shift in the interest rate curve. The
calculation takes into account the derivatives in the cash flow hedging calculation.
The interest rate risk position includes the floating rate loan receivables, interest-bearing borrowing, the
interest rate derivatives and cash equivalents.
The income statement is affected by the interest-bearing loan receivables, floating rate borrowings and the
interest rate derivatives, excluding those interest rate derivatives that are designated as and qualifying for
cash hedges, which are recognised in equity. The gain or loss is recognised in profit or loss, except when they
relate to the construction of OL3 and are capitalised in the balance sheet until 30 April 2023.
MARKET RISK
Currency risk
TVO Group is exposed to currency risk mainly in connection with its fuel purchases. The currency of
purchases of raw uranium and enrichment is frequently USD. Hedging of a currency denominated purchase
is commenced when an agreement is entered into and the forecasted currency risk becomes highly probable.
Both short-term and long-term loans are withdrawn mainly in euros. The loans denominated in other curren
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cies than euros are hedged latest at the withdrawal date.
Currency swaps, forward contracts, and options can be used to hedge the currency exposure.
Interest rate risk
Interest-bearing liabilities expose the Company to interest rate risk. The objective of the Company’s interest
rate risk management is to maintain the interest costs at as low level as possible and to diminish the volatility
of interest costs. In accordance with the Finance Policy, the duration of the loan portfolio of the Company can
vary between 36 and 48 months. At the closing date the duration was 43 months.
The average interest rate duration is managed with fixed interest rate loans, interest rate swaps, forward rate
agreements as well as with interest rate caps and floors.
The average interest rate on loans and derivatives on 31 December 2023 was 2.62 % (2.09 %).
Borrowings issued at variable rates expose the TVO Group to cash flow interest rate risk. Borrowings
issued at fixed rates expose the TVO Group to fair value interest rate risk. The TVO Group shall apply hedge
accounting as far as practical. Based on the various scenarios, the TVO Group manages its cash flow interest
rate risk by using floating-to-fixed interest rate swaps. Such interest rate swaps have the economic effect
of converting borrowings from floating rates to fixed rates. The TVO Group also enters into fixed-to-floating
interest rate swaps to hedge the fair value interest rate risk.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Euro Medium Term Note Programme EUR 5,000,000,000
EUR 1,000
Currency Nominal amount
2023
Carrying amount Nominal amount
2022
Carrying amount Interest rate % Maturity date
EUR 20,000 19,998 20,000 19,991 2.80 8.5.2024
EUR 191,848 191,704 400,000 398,851 2.00 8.5.2024
EUR 500,000 495,096 500,000 490,943 2.13 4.2.2025
EUR 650,000 648,211 650,000 647,394 1.13 9.3.2026
EUR 600,000 586,737 600,000 577,393 2.63 31.3.2027
EUR 75,000 74,769 75,000 74,710 3.60 14.12.2027
EUR 600,000 597,585 600,000 597,047 1.38 23.6.2028
EUR 23,000 22,943 23,000 22,934 3.50 3.5.2030
EUR 600,000 607,041 4.75 1.6.2030
EUR 45,000 44,897 45,000 44,884 3.90 31.3.2032
EUR 150,000 149,674 150,000 149,636 4.19 13.9.2032
EUR 20,000 19,862 20,000 19,846 3.88 8.11.2032
EUR 205,665 205,577 2.63 13.1.2023
SEK 135,000 12,171 850,000 76,390 2.38 15.2.2024
SEK 315,000 28,389 500,000 44,957 Stibor 3M + 1.78 15.2.2024
SEK 500,000 45,061 500,000 44,957 Stibor 3M + 1.42 29.10.2024
SEK 500,000 45,061 500,000 44,957 1.56 29.10.2024
SEK 1,000,000 90,123 Stibor 3M + 5.81 23.1.2029
SEK 1,300,000 117,160 5.20 23.1.2029
Total 3,796,482 3,460,466
TVO Group debt structure by maturity
31 December 2023
EUR 1,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033– Total
Loans from financial
institutions
26,104 426,104 26,104 26,104 11,818 7,210 523,444
Bonds 348,943 500,000 650,000 675,000 600,000 194,247 623,000 215,000 280,000 4,086,190
Loans from others
Lease liabilities
2,771 44,133 516 503 11 47,934
Commercial papers
Total
377,818 970,237 676,620 701,607 611,829 194,247 630,210 215,000 280,000 4,657,568
TVO Group credit commitment by maturity
31 December 2023
EUR 1,000 2024 2025 2026 2027 2028 2029 2030 2031 2032 2033– Total
Syndicated
revolving credit
facility
1,000,000 1,000,000
Bilateral revolving
credit facility
Bilateral bank loan
Total 1,000,000 1,000,000
On 31 December 2023, the Group had undrawn credit facilities amounting to EUR 1,000 (1,000) million and
cash and cash equivalents amounting to EUR 288 (353) million. The OL3 project’s EUR 400 million commit
-
ment, aimed at possible financing needs, was due at the end of 2023 (EUR 400 million).
BONDS
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
The equity ratio monitored by the TVO Group’s management
EUR 1,000 2023 2022
Equity ratio, % (IFRS, Group)
1)
31.2 30.7
Equity ratio, % (Parent company)
2)
30.0 28.4
1)
 Equity ratio % = 100 x equity + loans from equity holders of the company
balance sheet total - provision related to nuclear waste management - loan from the Finnish State Nuclear Waste
Management Fund
2)
 Equity ratio % = 100 x equity + appropriations + loans from equity holders of the company
balance sheet total - loan from the Finnish State Nuclear Waste Management Fund
Net debt reconciliation
EUR 1,000 2023 2022
Cash and cash equivalents 287,684 353,203
Liabilities 5,329,782 5,391,707
Leases 47,401 49,566
Net debt 5,089,499 5,088,070
Liabilities from financing activities Other assets
EUR 1,000 Liabilities Leases Sub-total
Cash and cash
equivalents Total
Net debt 1 Jan 2022 -4,984,667 -49,410 -5,034,077 172,318 -4,861,759
Cash flows -461,135 2,409 -458,726 180,885 -277,841
Acquisitions - leases -2,565 -2,565 -2,565
Other non-cash flow expenses 54,095 54,095 54,095
Net debt 31 Dec 2022 -5,391,707 -49,566 -5,441,273 353,203 -5,088,070
Cash flows 111,962 3,799 115,761 -65,519 50,242
Acquisitions - leases -1,634 -1,634 -1,634
Other non-cash flow expenses -50,037 -50,037 -50,037
Net debt 31 Dec 2023 -5,329,782 -47,401 -5,377,183 287,684 -5,089,499
1)
 Other changes include non-cash movements, including fair value changes of derivative financial instruments and arrangement fee for loans,
which will be presented as operating cash flows in the statement of cash flow when paid.
CREDIT RISK
Credit risk arises from the potential failure of a counterparty to meet its contractual payment obligations.
Commercial trade receivables as well as receivables from financial institutions relating to investments, deposits
and derivative transactions expose the Company to credit risk. In addition to money market funds, financial
institutions that meet the credit rating requirements of the Group´s Financial Policy are accepted as coun
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terparties. Furthermore, the TVO Group has in place a master agreement (ISDA) with all derivative contract
counterparties.
The loan of the Finnish State Nuclear Waste Management Fund has been loan under the same loan terms to
the company’s shareholders, however so, that Fortum Power and Heat Oy´s share is loaned to Fortum Oyj.
The loans do not have separate collateral. The nuclear waste management receivables and loans are valued
at amortised cost. The management has evaluated the on-lending agreements the creditworthiness of the
parties to be sufficient for these loans, and thus the expected credit losses of the loan receivables are immate
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rial and do not include a significant credit risk.
FUEL PRICE RISK
The fuel used for electricity production by the Group is uranium.
The TVO Group purchases the uranium fuel from the global markets. The purchasing process consists of four
stages: purchase of uranium concentrate, conversion, enrichment and fuel fabrication. Purchasing Policy is
used to guarantee the availability of fuel and to minimise price risk. This includes storage strategy and diversi
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fied long-term purchasing agreements with different suppliers.
The TVO Group has not used commodity derivatives to hedge fuel price risk.
CAPITAL RISK MANAGEMENT
The TVO Groups objective is to secure sufficient equity and equity-like funding that guarantees diversified
funding sources.
The equity ratio of the Company varies along investment cycles. The Group aims to have a minimum equity
ratio (IFRS) of 25 percent in the long-term. When calculating the equity ratio, the loan from the Finnish State
Nuclear Waste Management Fund (lent further to the shareholders) and the provision related to nuclear waste
management obligation are excluded. Additionally, subordinated loans or equivalent loans from the share
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holders are regarded as equity.
According to the terms of some loan agreements, the Company is committed to maintain the consolidated
equity ratio of TVO Group (IFRS) equal to or greater than 25 percent. There are no other key ratio-related
covenants in the loan agreements.
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28 Events after the balance sheet date
An environmental impact assessment programme (EIA programme) concerning the possible service life
extension and power uprating of the OL1 and OL2 was submitted to the Ministry of Economic Affairs and
Employment (MEAE), which acts as the coordinating authority, on 5 January 2024.
The Energy Agency has issued a decision on the protection of the grid connected to the full power production
of OL3 on January 12, 2024. The decision states that grid protection is a specific protection system of the
transmission system operator and under the responsibility of the national grid company Fingrid Oyj. In its
decision, the Energy Agency considers Fingrid to have unjustifiably transferred its obligations related to the
grid protection system to TVO. In the decision, the Energy Authority requires Fingrid to submit to the Energy
Authority for confirmation a presentation of the principles based on which the costs of the protection system
will be covered. So far, TVO has covered the majority of the expenses.
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Income statement
EUR 1,000 Note 1 Jan-31 Dec 2023 1 Jan-31 Dec 2022
Turnover 2 872,868 353,479
Work performed for own purpose 3 7,143 21,310
Other income 4 14,685 17,047
Materials and services 5 -264,408 -183,929
Personnel expenses 6 -84,256 -80,139
Depreciation and impairment charges 7 -169,356 -40,690
Other expenses 8 -162,515 -101,203
 214,161 -14,125
Financial income and expenses 9 -96,168 3,823
 117,993 -10,302
Appropriations 10 -117,993 12,511
 0 2,209

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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Balance sheet
EUR 1,000 Note 31 Dec 2023 31 Dec 2022


Intangible assets
11 2,515 2,476
Tangible assets 11 6,036,939 6,007,324
Investments
Holdings in group companies
12 8 8
Holdings in joint ventures 12 1,011 1,011
Other shares 12 3,976 4,219
Other receivables 12 784,735 789,730 710,964 716,202
 6,829,184 6,726,002

Inventories
13 486,932 272,283
Current receivables 14 110,594 250,876
Cash and cash equivalents 287,017 352,359
 884,543 875,518
 7,713,727 7,601,520
EUR 1,000 Note 31 Dec 2023 31 Dec 2022


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 20,939 18,730
 15,16 0 2,209
 863,687 863,687
 299,423 181,207

Non-current liabilities
17,18 4,234,587 4,541,483
Shareholders' loans 17 929,300 929,300
Loan from
the Finnish State Nuclear Waste Management Fund
17 727,500 651,339
Current liabilities 19 659,230 434,504
 6,550,617 6,556,626
 7,713,727 7,601,520
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

EUR 1,000 2023 2022


214,161 -14,125

1)
169,380 40,690
Changes in working capital
2)
94,675 61,608
 -94,142 -4,337
Dividend received 0 2,209
Interest received 17,040 6,277
 401,114 92,322

Acquisition of non-current assets
-281,135 -433,656
Proceeds from sale of shares 220 0
Loan receivables granted -73,772 -15,831
Repayments of loans granted 0 75,837
 -354,687 -373,650

Withdrawals of long-term loans
1,250,408 1,050,000
Repayment of long-term loans -1,352,229 -517,415
Increase (+) or decrease (-) in short-term interest-bearing liabilities 89,020 62,740
Repayment of short-term interest-bearing liabilities -99,160 -134,190
Group contribution received 192 418
 -111,769 461,553
EUR 1,000 2023 2022
 -65,342 180,225
Cash and cash equivalents 1 Jan 352,359 172,134
31 287,017 352,359
1)

Depreciation and write-downs
169,356 40,690
Gain (-) or loss (+) from divestment of non-current assets 24 0
 169,380 40,690
2)
Changes in working capital
Increase (-) or decrease (+) in inventories
35,319 2,137
Increase (-) or decrease (+) in non-interest-bearing receivables -34,582 27,535
Increase (+) or decrease (-) in short-term non-interest-bearing liabilities 93,938 31,936
 94,675 61,608
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

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 calcu-lated on a straight-line basis according to the
estimated useful economic lives.
The depreciation periods are as follows:
»
OL1, OL2 and OL3 nuclear power plant units:
-
Basic investment OL1 and OL2 61 years
-
Plant investment OL3 10–60 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 acqui
-
sition 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 in-come
statement under costs of materials and services. The
gains from the sales of emission rights are refunded
to the equity holders of the Company.
Research and development costs
Research and development costs associated with
production activity are entered as annual costs for
the year in which they were incurred.
Items denominated in foreign currency
Transactions in foreign currency have been entered at
the relevant exchange rate or at the transaction rate for
purchase and sale of foreign currency. On the balance
sheet date, exchange rate differences on foreign
currency accounts have been entered in the income

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 accrual

income and expenses.
Payments of foreign currency denominated inven
-
tory acquisitions have been hedged with currency
de-rivatives. 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

fuel, 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 2023 2022
Olkiluoto 1 and Olkiluoto 2 370,163 346,820
Olkiluoto 3 502,705 6,659
 872,868 353,479

Olkiluoto 1
7,417 6,918
Olkiluoto 2 6,855 7,522
Olkiluoto 3 10,361 1,876
 24,634 16,316

EUR 1,000 2023 2022
Personnel expenses related to OL3 7,143 21,310
4 Other income
EUR 1,000 2023 2022
Rental income 1,108 1,144
Sales of services 12,873 14,543
Other income 704 1,360
 14,685 17,047
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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
EUR 1,000 2023 2022
Purchases, accrual basis
Nuclear fuel 70,015 60,845
Materials and supplies 7,613 6,084
Increase (-) or decrease (+) in inventories 40,472 6,948
 118,100 73,877
CO
2
emission rights 100 110
Nuclear waste management
Contribution to the Finnish State Nuclear Waste Management Fund
1)
27,746 40,849
Nuclear waste management services 78,232 59,554
 105,978 100,403
External services 40,230 9,539
 264,408 183,929
Consumption
Nuclear fuel
111,464 69,672
Materials and supplies 6,636 4,205
 118,100 73,877
1)



2023 2022
 857 834
Manual workers 198 195
 1,055 1,029

2023 2022
 854 816
Manual workers 189 189
 1,043 1,005
Personnel expenses
EUR 1,000 2023 2022
Wages and salaries 70,787 67,247
Pension expenses 11,030 10,645
Other compulsory personnel expenses 2,439 2,247
 84,256 80,139

Key management compensations are presented in Note 26  in the TVO Group consolidated

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
EUR 1,000 2023 2022
Depreciation according to plan
Other capitalised long-term expenses
487 410
Buildings and construction 18,218 4,493
Machinery and equipment 149,241 35,377
Other tangible assets 1,410 410
 169,356 40,690
8 Other expenses
EUR 1,000 2023 2022
Maintenance services 29,244 21,365
Regional maintenance and services 12,197 9,651
Research services 3,490 2,338
Other external services 54,160 26,283
Real estate tax 14,483 6,489
Rents 3,621 2,043
ICT expenses 7,425 6,206
Personnel related expenses 4,943 4,216
Corporate communication expenses 967 862
Other expenses 31,985 21,750
 162,515 101,203

PricewaterhouseCoopers Oy (EUR 1,000) 2023 2022
Auditing 191 231
Tax services 12 13
Other services 51 65
 254 309

EUR 1,000 2023 2022

From joint ventures
0 2,209
 0 2,209

From joint ventures
97 13
From others 24,560 3,377
 24,657 3,390

From others
13,532 2,652
 13,532 2,652
 38,189 8,251

To the Finnish State Nuclear Waste Management Fund
24,560 3,377
To others 151,307 103,628
Capitalised interest costs -41,510 -102,577
 134,357 4,428
 -96,168 3,823
Financial income and expenses include exchange rate gains (+) and losses (-) (net) 9,475 505
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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10 Appropriations
EUR 1,000 2023 2022
Group contribution 223 393
The difference between depreciation according to plan and tax depreciation, increase (-) or
decrease (+)
-118,216 12,118
 -117,993 12,511

EUR 1,000

expenses
Intangible
rights
Other capitalised
long-term expenses
Advance
payments Total

Acquisition cost
1 Jan 2023 54,011 129 26,656 352 81,148
Increase 0 100 413 64 577
Decrease 0 -115 0 0 -115
Transfer between categories 0 0 312 -248 64
Acquisition cost 31 Dec 2023 54,011 114 27,381 168 81,674
Accumulated depreciation according to plan 1 Jan 54,011 0 24,661 0 78,672
Accumulated depreciation from deduction 0 0 0 0 0
Depreciation according to plan 0 0 487 0 487
312023 0 114 2,233 168 2,515
Accumulated depreciation difference 1 Jan 0 0 1,298 0 1,298
Change in depreciation difference 0 0 -102 0 -102
Accumulated depreciation difference 31 Dec 0 0 1,196 0 1,196
Undepreciated acquisition cost in taxation 31 Dec 2023 0 114 1,037 168 1,319
EUR 1,000
Land
and water
areas
Building and

Machinery
and
equipment
Other
tangible
assets

progress and
avance payments Total

Acquisition cost
1 Jan 2023 12,075 295,655 1,412,923 54,524 5,492,841 7,268,018
Increase 0 727 29,792 1,280 416,719 448,518
Decrease 0 -2,628 -7,898 0 -249,968 -260,494
Transfer between categories 0 1,211,213 4,280,635 76,474 -5,568,386 -64
Acquisition cost 31 Dec 2023 12,075 1,504,967 5,715,452 132,278 91,206 7,455,978
Accumulated depreciation according to plan 1 Jan 0 232,181 979,400 49,115 0 1,260,696
Accumulated depreciation from deduction 0 -2,628 -7,898 0 0 -10,526
Depreciation according to plan 0 18,218 149,241 1,410 0 168,869
312023 12,075 1,257,196 4,594,709 81,753 91,206 6,036,939
Accumulated depreciation difference 1 Jan 0 208 177,461 2,240 0 179,909
Change in depreciation difference 0 28,801 86,743 2,774 0 118,318
Accumulated depreciation difference 31 Dec 0 29,009 264,204 5,014 0 298,227
Undepreciated acquisition cost in taxation 31 Dec 2023 12,075 1,228,187 4,330,505 76,739 91,206 5,738,712
Share of machinery and equipment from book value
31 Dec 2023 4,042,226
Share of machinery and equipment from book value
31 Dec 2022 413,503
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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 2023 8 1,011 4,219 2,390 651,844 56,730 716,202
Increase 0 0 0 0 76,161 0 76,161
Decrease 0 0 -243 -2,390 0 0 -2,633
Acquisition cost 31 Dec 2023 8 1,011 3,976 0 728,005 56,730 789,730
312023 8 1,011 3,976 0 728,005 56,730 789,730



727,500 727,500
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 2023 2022

Replacement cost
564,859 159,407
Book value 183,183 92,740
 381,676 66,667
Raw uranium and natural uranium 183,183 92,740
Nuclear fuel 293,197 169,684
Supplies 10,552 9,859
 486,932 272,283

EUR 1,000

expenses
Other
capitalised
long-term
expenses
Buildings and

Machinery
and
equipment
Other
tangible
assets

in progress Total

Acquisition cost
1 Jan 2023
*)
11,046 1,167 27,122 95,394 2,402 1,768,295 1,905,426
Increase 0 0 0 0 0 41,344 41,344
Transfer between categories 0 0 403,395 1,386,333 19,911 -1,809,639 0
Acquisition cost 31 Dec 2023 11,046 1,167 430,517 1,481,727 22,313 0 1,946,770
Accumulated depreciation according
to plan
1 Jan 11,046 948 22,018 77,444 1,950 0 113,406
Depreciation according to plan 0 12 4,811 36,475 264 0 41,562
312023 0 207 403,688 1,367,808 20,099 0 1,791,802
Accumulated depreciation difference
1 Jan 0 219 5,104 17,950 452 0 23,725
Change in depreciation difference 0 -12 35,529 72,343 1,727 0 109,587
Accumulated depreciation difference
31 Dec 0 207 40,632 90,293 2,179 0 133,311
Undepreciated acquisition cost in
taxation
31 Dec 2023 0 0 363,055 1,277,515 17,920 0 1,658,490
*)
An adjustment of -23.2 million euros has been made to the 1 Jan 2023 acquisition cost of Construction in progress.
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
EUR 1,000 2023 2022

Prepayments and accrued income
927 1,487
 927 1,487

Interest receivables
0 2
Prepayments and accrued income 3,580 3,816
 3,580 3,818

Trade receivables
18,784 9,780
Other receivables 45,433 207,059
 64,217 216,839

Accrued interest costs
38,768 20,535
Accrued insurance costs 1,919 2,511
Collateral received 0 4,690
Other prepayments and accrued income 1,183 996
 41,870 28,732
 110,594 250,876

EUR 1,000 2023 2022
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 20,939 18,730
31 Dec 20,939 18,730
 0 2,209
 863,687 863,687

EUR 1,000 2023 2022
Retained earnings 20,939 18,730
 0 2,209
 20,939 20,939
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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
EUR 1,000 2023 2022
Bonds 3,457,247 3,307,900
 490,130 1,216,233
US Private Placements loans 280,000 0
Other loans 7,210 17,350
 4,234,587 4,541,483
Shareholders' loans
1)
929,300 929,300
Loan from the Finnish State Nuclear Waste Management Fund
2)
727,500 651,339
 5,891,387 6,122,122
1)
Subordinated loans
2)
Lent further to the shareholders.

Currency
Capital
2023
EUR 1,000
2023
Capital
2022
EUR 1,000
2022
Maturity
date
EUR 205,665 205,665 13.1.2023
EUR 20,000 20,000 20,000 20,000 8.5.2024
EUR 191,848 191,848 400,000 400,000 8.5.2024
EUR 500,000 500,000 500,000 500,000 4.2.2025
EUR 650,000 650,000 650,000 650,000 9.3.2026
EUR 600,000 600,000 600,000 600,000 31.3.2027
EUR 75,000 75,000 75,000 75,000 14.12.2027
EUR 600,000 600,000 600,000 600,000 23.6.2028
EUR 23,000 23,000 23,000 23,000 3.5.2030
EUR 600,000 600,000 1.6.2030
EUR 45,000 45,000 45,000 45,000 31.3.2032
EUR 150,000 150,000 150,000 150,000 13.9.2032
EUR 20,000 20,000 20,000 20,000 8.11.2032
EUR 315,000 30,732 500,000 48,781 15.2.2024
EUR 135,000 13,171 850,000 82,927 15.2.2024
SEK 500,000 46,624 500,000 46,624 29.10.2024
SEK 500,000 46,568 500,000 46,568 29.10.2024
SEK 1,000,000 84,459 23.1.2029
SEK 1,300,000 109,788 23.1.2029
 3,806,190 3,513,565
Current portion of long-term bonds 348,943 205,665
 3,457,247 3,307,900
BONDS
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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
Currency
Capital
2023
EUR 1,000
2023
Capital
2022
EUR 1,000
2022
Maturity
date
EUR 105,000 105,000 15.12.2033
EUR 85,000 85,000 15.12.2035
EUR 90,000 90,000 15.12.2038
 280,000 280,000
Collateral received 7,210 7,210 17,350 17,350 30.11.2030
 287,210 287,210 17,350

EUR 1,000 2023 2022
 1,569,457 1,217,168

EUR 1,000 2023 2022

Accruals
0 1
 0 1

Accruals
6,694 3,031
 6,694 3,031

Advances received
68,063 23,064
Trade payables 22,779 17,819
 90,842 40,883

Bonds
348,943 205,665
 26,104 50,608
 375,047 256,273

Finnish State Nuclear Waste Management Fund
29,100 40,227
Accrued interests 74,346 50,316
Accrued personnel expenses 24,093 22,742
Accruals related to CO
2
emission rights 114 129
Other accruals and deferred income and other liabilities 58,994 20,902
 186,647 134,316
 659,230 434,504
OTHER LOANS
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
EUR 1,000 2023 2022
Leasing liabilities falling due in less than a year 3,899 2,814
Leasing liabilities falling due later 44,515 47,462
 48,414 50,276

EUR 1,000 2023 2022
Bank guarantees 550 550

EUR 1,000 2023 2022
Liability for nuclear waste management according to the Nuclear Energy Act
1)
1,918,200 1,839,600
TVO’s funding target obligation 2024 (2023) to the Finnish State Nuclear Waste
Management Fund
1,525,100 1,457,900
Collateral for nuclear waste management liabilities 557,740 534,990
Pledged promissory notes to the Finnish State Nuclear Waste Management Fund 727,500 651,339
1)

the Ministry of Employment and the Economy at the end of the year.
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 2023 2022

Interest rate swaps (nominal value)
2,275,000 2,185,000
Fair value 132,378 191,156

Forward foreign exchange contracts (nominal value)
60,109 44,127
Fair value 6,590 11,482

Cross-currency swaps (nominal value)
331,337 224,873
Fair value 6,623 13,576
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.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
85
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION

Number
2023
Number
2022
EUR 1,000
2023
EUR 1,000
2022
12
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
2023
EUR 1,000 t CO
2
2022
EUR 1,000
Total annual emissions from production facilities 1,528 1,449
Possessed emission rights 1,615 1,604
Emission rights bought
1)
1,450 100 1,300 110
1)
The purchases of the emission rights are included in materials and services. The emission rights that company possesses on 31 December
are included in intangible rights on the balance sheet and emission right reductions.
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 company possesses, the
company has booked the expense for exceeding emission rights at the market value on December 31.
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
86
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Proposals to the Annual General Meeting
Teollisuuden Voima Oyj’s distributable equity as of 31
December, 2023 amounted to EUR 20,938,560.00.
The Board of Directors proposes to the Annual
General Meeting that no dividend shall be paid.
Petra Lundström
Esa Kaikkonen
Anders Renvall
Jarmo Tanhua
CEO
Kaarlo Höysniemi
Tapio Korpeinen
Tiina Tuomela
Ilkka Tykkyläinen
Hannu Jokinen
Timo Rajala
Rami Vuola

Helsinki, February 26, 2024
The auditors note
Our auditors report has been issued today.
Helsinki, February 26, 2024
PricewaterhouseCoopers Oy
Authorised Public Accountants
Niina Vilske
Authorised Public Accountant
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
87
REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
Auditors Report (Translation of the Finnish Original)
To the Annual General Meeting of Teollisuuden Voima Oyj

OPINION
In our opinion
»


»


with statutory requirements.
Our opinion is consistent with the additional report to the Audit Committee.
What we have audited


»
the consolidated balance sheet, income statement, statement of comprehensive income, statement of changes in

information
»

BASIS FOR OPINION
We conducted our audit in accordance with good auditing practice in Finland. Our responsibilities under good

ments section of our report.

opinion.
Independence
We are independent of the parent company and of the group companies in accordance with the ethical

responsibilities in accordance with these requirements.

and to the group companies are in accordance with the applicable law and regulations in Finland and we have


OUR AUDIT APPROACH
Overview
»
Overall group materiality is
€ 25 million
»

of the parent company Teollisuuden Voima Oyj.
»
Completion of Olkiluoto 3 EPR plant unit
»
Assets and provisions related to the nuclear waste management
obligation
REPORT OF THE BOARD OF DIRECTORS AND FINANCIAL STATEMENTS 2023
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
As part of designing our audit, we determined materiality and assessed the risks of material misstatement in


future events that are inherently uncertain.
Materiality


arise due to fraud or error. They are considered material if individually or in aggregate, they could reasonably

Based on our professional judgement, we determined certain quantitative thresholds for materiality, including

together with qualitative considerations, helped us to determine the scope of our audit and the nature, timing

a whole.
Overall group materiality
How we determined it
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
benchmark against which the performance of the
Group is commonly measured by users.
How we tailored our group audit scope
We tailored the scope of our audit, taking into account the structure of the group, the accounting processes
and controls, and the industry in which the group operates.

parent company Teollisuuden Voima Oyj.
KEY AUDIT MATTERS



opinion on these matters.
As in all of our audits, we also addressed the risk of management override of internal controls, including
among other matters consideration of whether there was evidence of bias that represented a risk of material
misstatement due to fraud.
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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
 
COMPLETION OF OLKILUOTO 3 EPR PLANT UNIT




costs ended and depreciation began on 1 May 2023.


Acquisition costs have been allocated to appropriate items in Property, plant and equipment and

borrowing costs capitalised during the construction phase have been allocated to items in Property, plant
and equipment in proportion to either the economic value or the acquisition cost.



We reviewed the management’s procedures, records and other documentation related to the progress moni



costs capitalised as the investment meet the recognition criteria.

accordance with the accounting principles applied, and the capitalisation was performed consistently under

We tested the principles of how the acquisition costs have been allocated to items in Property, plant and
equipment with different estimated useful lives. Ïn addition we tested how the general costs and borrowing
costs have been allocated to each item in Property, plant and equipment.
We assessed the timing when depreciation of the asset began. We tested how the management assessed the


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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
 
ASSETS AND PROVISIONS RELATED TO THE NUCLEAR WASTE MANAGEMENT OBLIGATION




The fair value of the nuclear waste management provision has been determined by discounting the





and the high level of management judgement used in the calculations such as technical plans, time
factor, cost estimates and discount rate.
We assessed the company’s accounting policies for compliance with International Financial Reporting



the time.
We tested the mathematical accuracy of the calculations and whether the calculations are technically prepared
in line with the same principles from one accounting period to another and consistently for all the plant units.

determined.
We also assessed the adequacy of the disclosures presented in the accounting policies and notes of the


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REPORT OF THE BOARD OF DIRECTORS KEY FIGURES GROUP FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS FINANCIAL INFORMATION
RESPONSIBILITIES OF THE BOARD OF DIRECTORS AND THE MANAGING DIRECTOR FOR THE
FINANCIAL STATEMENTS




Board of Directors and the Managing Director are also responsible for such internal control as they determine

whether due to fraud or error.

for assessing the parent company’s and the groups ability to continue as a going concern, disclosing, as

statements are prepared using the going concern basis of accounting unless there is an intention to liquidate
the parent company or the group or to cease operations, or there is no realistic alternative but to do so.
AUDITOR’S RESPONSIBILITIES FOR THE AUDIT OF THE FINANCIAL STATEMENTS

from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in

ments can arise from fraud or error and are considered material if, individually or in the aggregate, they could

statements.


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

provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
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Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate

groups internal control.
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Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
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Conclude on the appropriateness of the Board of Directors’ and the Managing Director’s use of the going concern basis of




on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the
parent company or the group to cease to continue as a going concern.
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

fair view.
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

and performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope

that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant ethical
requirements regarding independence, and to communicate with them all relationships and other matters that
may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with those charged with governance, we determine those matters that were

audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public



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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
The Board of Directors and the Managing Director are responsible for the other information. The other infor

auditors report thereon.



or our knowledge obtained in the audit, or otherwise appears to be materially misstated. With respect to the
report of the Board of Directors, our responsibility also includes considering whether the report of the Board of
Directors has been prepared in accordance with the applicable laws and regulations.
In our opinion
»

»
the report of the Board of Directors has been prepared in accordance with the applicable laws and regulations.
If, based on the work we have performed, we conclude that there is a material misstatement of the other
information, we are required to report that fact. We have nothing to report in this regard.
OTHER STATEMENTS

should be adopted. The proposal by the Board of Directors regarding the result of the accounting period
is in compliance with the Companies Act. We support that the members of the Board of Directors and the
Managing Director of the parent company should be discharged from liability for the period audited by us.
Helsinki 26 February 2024
PricewaterhouseCoopers Oy
Authorised Public Accountants
Niina Vilske

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Financial information in 2024
In 2024, Teollisuuden Voima Oyj will publish the interim reports as follows:
INTERIM REPORT FOR JANUARY-MARCH 2024
on April 19, 2024
INTERIM REPORT FOR JANUARY-JUNE 2024
on July 16, 2024
INTERIM REPORT FOR JANUARY-SEPTEMBER 2024
on October 18, 2024
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ESEF-report

 Teollisuuden Voima Oyj
 Finland
 Public Limited Company
 Finland
 Töölönkatu 4, 00100 Helsinki
 Olkiluoto, 27160 EURAJOKI
 Production of electricity with nuclear power
 Teollisuuden Voima Oyj
 Teollisuuden Voima Oyj
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