1. Other operating income | ||
MEUR | 2018 | 2017 |
Rental income | 1 | 1 |
Services to Group companies | 78 | 71 |
Other | 1 | 1 |
Total | 80 | 72 |
2. Personnel expenses | ||
MEUR | 2018 | 2017 |
Wages and salaries | -19 | -57 |
Pension costs | -5 | -5 |
Other compulsory personnel costs | -1 | -1 |
Total | 26 | -63 |
Salaries and remunerations paid to senior management | ||
The President and CEO and his deputy and members of the Board of Directors | -4 | -3 |
The President and CEO has the right to retire at the age of 63 years. The members of the Board of Management are entitled to retire on reaching the statutory retirement age. One member of the Board of Management is entitled to retire earlier, on reaching 60 years of age. | ||
The Company's Board of Directors decides the remunerations of the President and CEO and his immediate subordinates. | ||
Additional information about Management remuneration can be found in Consolidated Financial Statements Note 28. | ||
Personnel on average during the year | 371 | 324 |
3. Depreciation and amortisation | ||
MEUR | 2018 | 2017 |
Depreciation and amortisation according to plan | ||
Other long-term expenditure | -3 | -4 |
Total depreciation according to plan | -4 | |
Impairment losses on non-current assets | -1 | |
Tax depreciations | -4 | -4 |
Depreciation difference | 1 | 1 |
Depreciation difference | ||
Depreciation difference on 1 January | 2 | 2 |
Change in the depreciation difference | -1 | -1 |
Depreciation difference on 31 December | 1 | 2 |
4. Financial income and expenses | |||
MEUR | 2018 | 2017 | |
Dividend income | |||
From Group companies | 300 | 146 | |
Total | 300 | 146 | |
Other interest income | |||
From Group companies | 28 | 22 | |
From other companies | 1 | 1 | |
Total | 29 | 22 | |
Other financial income | |||
From Group companies | 24 | 10 | |
From other companies | 20 | 9 | |
Total | 45 | 19 | |
Exchange gains and losses | -1 | 1 | |
Interest expenses | |||
To Group companies | -6 | -5 | |
To other companies | -9 | -8 | |
Total | -14 | -13 | |
Other financial expenses | |||
To Group companies | -21 | -10 | |
To other companies | -42 | -15 | |
Total | -62 | -25 | |
Financial income and expenses, total | 296 | 151 |
5. Income taxes | |||
MEUR | 2018 | 2017 | |
Income taxes | |||
For the financial period | -4 | -3 | |
For prior financial periods | -6 | ||
Total | -10 | -3 |
6. Fixed assets | ||||||
Intangible assets | ||||||
MEUR |
Other long-term expenditures |
Construction in progress |
Total 2018 | Total 2017 | ||
Acquisition cost at January 1 | 121 | 2 | 123 | 122 | ||
Additions | 1 | 6 | 7 | 3 | ||
Disposals | -5 | -5 | -1 | |||
Acquisition cost at December 31 | 117 | 8 | 125 | 123 | ||
Accumulated amortisation at January 1 | -115 | -115 | -113 | |||
Accumulated amortisation on disposals and other changes | 5 | 5 | 1 | |||
Amortisation during the financial period | -3 | 3 | -4 | |||
Accumulated amortisation at December 31 | -113 | -113 | -115 | |||
Carrying amount at 31 December 2018 | 3 | 8 | 12 | |||
Carrying amount at 31 December 2017 | 6 | 2 | 8 | |||
Tangible assets | ||||||
MEUR |
Land and water |
Buildings and structures |
Machinery, equipment and other tangible assets |
Construction in progress |
Total 2018 | Total 2017 |
Acquisition cost at January 1 | 7 | 2 | 4 | 13 | 13 | |
Additions | 6 | 6 | 1 | |||
Disposals | -2 | -3 | ||||
Acquisition cost at December 31 |
7 | 2 | 2 | 6 | 17 | 13 |
Accumulated depreciation at January 1 |
-2 | -3 | -5 | -4 | ||
Accumulated amortisation on disposals and other changes | 2 | 3 | ||||
Impairment losses on non-current assets | -1 | |||||
Accumulated depreciation at December 31 | -2 | -1 | -3 | -5 | ||
Carrying amount at 31 December 2018 | 7 | 1 | 6 | 14 | ||
Carrying amount at 31 December 2017 | 7 | 1 | 2 | 9 | ||
Shares and securities | ||||||
MEUR |
Shares in Group companies |
Shares in other companies |
Total 2018 | Total 2017 | ||
Acquisition cost at January 1 | 950 | 1 | 951 | 951 | ||
Disposals | -1 | |||||
Acquisition cost at December 31 | 950 | 1 | 951 | 951 | ||
Carrying amount at 31 December 2018 | 950 | 1 | 951 | |||
Carrying amount at 31 December 2017 | 950 | 1 | 951 |
7. Non-current receivables | ||
MEUR | 2018 | 2017 |
Receivables from Group companies | ||
Loan receivables | 100 | 104 |
Total | 100 | 104 |
8. Current receivables from Group companies | ||
MEUR | 2018 | 2017 |
Trade receivables | 16 | 6 |
Loan receivables | 2 153 | 1 657 |
Derivatives | 54 | 19 |
Other receivables | 76 | 99 |
Prepaid expenses and accrued income | 10 | 4 |
Total | 2 308 | 1 786 |
9. Prepaid expenses and accrued income | ||
MEUR | 2018 | 2017 |
Derivatives | 12 | 32 |
Other financial items | 1 | |
Insurance receivables | 1 | |
Other | 4 | 3 |
Total | 16 | 35 |
10. Shareholders' equity | ||
MEUR | 2018 | 2017 |
Share capital | ||
Share capital on January 1 | 336 | 336 |
Share capital on December 31 | 336 | 336 |
Share premium reserve | ||
Share premium reserve on January 1 | 61 | 61 |
Share premium reserve on December 31 | 61 | 61 |
Retained earnings | ||
Retained earnings on January 1 | 1 002 | 1 097 |
Dividends paid | -272 | -256 |
Result for the financial period | 308 | 161 |
Retained earnings on December 31 | 1 038 | 1 002 |
Total shareholders' equity | 1 435 | 1 399 |
Distributable equity | 1 038 | 1 002 |
11. Liabilities | ||||
MEUR | 2018 | 2017 | ||
Non-current | ||||
Interest-bearing | 741 | 508 | ||
Total | 741 | 508 | ||
Current | ||||
Non-interest-bearing | 155 | 133 | ||
Interest-bearing | 1 349 | 1 032 | ||
Total | 1 504 | 1 165 | ||
Debt with maturity profile | ||||
2018 | Current | Long-term | ||
MEUR | <1 year | 1-5 years | >5 years | Total |
Loans from financial institutions | 56 | 491 | 250 | 797 |
Total | 56 | 491 | 250 | 797 |
2017 | Current | Long-term | ||
MEUR | <1 year | 1-5 years | >5 years | Total |
Loans from financial institutions | 75 | 342 | 166 | 583 |
Loans from pension institutions | 8 | 8 | ||
Total | 83 | 342 | 166 | 591 |
12. Accrued expenses and deferred income | ||
MEUR | 2018 | 2017 |
Income and other taxes | 5 | |
Derivatives | 79 | 45 |
Personnel costs | 11 | 35 |
Interest and other financial items | 3 | 3 |
Other | 5 | 4 |
Total | 102 | 85 |
13. Liabilities to Group companies | ||
MEUR | 2018 | 2017 |
Trade payables | 9 | 3 |
Other current liabilities | 1 293 | 950 |
Derivatives | 24 | 29 |
Accrued expenses and deferred income | 2 | 3 |
Total | 1 327 | 985 |
14. Financial assets and liabilities by measurement category | |||||
2018 | |||||
MEUR |
Measured at amortised cost |
At fair value through the statement of income |
Carrying amounts of the statement of financial position items |
Fair value |
|
Non-current financial assets | |||||
Interest-bearing receivables from Group companies | 100 | 100 | 100 | ||
Other receivables | 1 | 1 | 1 | ||
Current financial assets | |||||
Interest-bearing receivables from Group companies | 2 153 | 2 153 | 2 153 | ||
Trade receivables from Group companies | 16 | 16 | 16 | ||
Derivatives | 12 | 12 | 12 | ||
Derivatives from Group companies | 54 | 54 | 54 | ||
Other receivables from Group companies | 8 | 8 | 8 | ||
Cash equivalents | 5 | 5 | 5 | ||
Cash and bank | 286 | 286 | 286 | ||
Carrying amount by category | 2 569 | 65 | 2 635 | 2 635 | |
Non-current financial liabilities | |||||
Interest-bearing debt | 741 | 741 | 747 | ||
Current financial liabilities | |||||
Interest-bearing debt | 56 | 56 | 56 | ||
Interest-bearing debt to Group companies | 1 293 | 1 293 | 1 293 | ||
Trade payables | 18 | 18 | 18 | ||
Trade payables to Group companies | 9 | 9 | 9 | ||
Derivatives | 79 | 79 | 79 | ||
Derivatives to Group companies | 24 | 24 | 24 | ||
Other liabilities | 3 | 3 | 3 | ||
Carrying amount by category | 2 120 | 103 | 2 223 | 2 229 | |
Information about fair value hierarchy and valuation principle can be found in in Consolidated Financial Statements Note 16. | |||||
2017 | |||||
MEUR |
Measured at amortised cost |
At fair value through the statement of income |
Carrying amounts of the statement of financial position items |
Fair value |
|
Non-current financial assets | |||||
Interest-bearing receivables from Group companies | 103 | 103 | 103 | ||
Other receivables | 1 | 1 | 1 | ||
Current financial assets | |||||
Interest-bearing receivables from Group companies | 1 657 | 1 657 | 1 657 | ||
Trade receivables from Group companies | 6 | 6 | 6 | ||
Derivatives | 32 | 32 | 32 | ||
Derivatives from Group companies | 19 | 19 | 19 | ||
Other receivables | 2 | 2 | 2 | ||
Other receivables from Group companies | 3 | 3 | 3 | ||
Cash equivalents | 16 | 16 | 16 | ||
Cash and bank | 179 | 179 | 179 | ||
Carrying amount by category | 1 969 | 51 | 2 019 | 2 019 | |
Non-current financial liabilities | |||||
Interest-bearing debt | 508 | 508 | 515 | ||
Current financial liabilities | |||||
Interest-bearing debt | 83 | 83 | 83 | ||
Interest-bearing debt to Group companies | 950 | 950 | 950 | ||
Trade payables | 10 | 10 | 10 | ||
Trade payables to Group companies | 3 | 3 | 3 | ||
Derivatives | 45 | 45 | 45 | ||
Derivatives to Group companies | 29 | 29 | 29 | ||
Other liabilities | 3 | 3 | 3 | ||
Other liabilities from Group companies | 1 | 1 | 1 | ||
Carrying amount by category | 1 557 | 74 | 1 631 | 1 639 | |
Information about fair value hierarchy and valuation principle can be found in in Consolidated Financial Statements Note 16. |
15. Derivative financial instruments | ||||
MEUR | With external financial institutions | With Group companies | Total 2018 | |
Nominal values of derivative financial instruments | ||||
Currency forwards, transaction risk | 2 821 | 2 799 | 5 620 | |
Interest rate swaps | 270 | 270 | ||
Cross currency swaps | 238 | 238 | ||
6 128 | ||||
Fair values of derivative financial instruments (level 2) | ||||
Currency forwards, transaction risk | -55 | 30 | -25 | |
Interest rate swaps | -4 | -4 | ||
Cross currency swaps | -8 | -8 | ||
Total | -37 | |||
MEUR | With external financial institutions | With Group companies | Total 2017 | |
Nominal values of derivative financial instruments | ||||
Currency forwards, transaction risk | 1 927 | 1 707 | 3 635 | |
Interest rate swaps | 165 | 165 | ||
Cross currency swaps | 74 | 74 | ||
3 874 | ||||
Fair values of derivative financial instruments (level 2) | ||||
Currency forwards, transaction risk | 6 | -10 | -4 | |
Interest rate swaps | -2 | -2 | ||
Cross currency swaps | -17 | -17 | ||
Total | -23 | |||
Foreign currency forward contracts are against transactional risks and are matched against the hedged cashflows. Interest rate swaps are denominated in euros and their average interest-bearing period is 18 (26) months. The average maturity for cross currency swaps is 40 (53) months. |
16. Financial risks | ||||
General | ||||
Wärtsilä has a centralised Group Treasury with two main objectives: 1) to arrange adequate funding for the Group’s underlying operations on competitive terms and 2) to identify and evaluate the financial risks within the Group and implement the hedges for the Group companies. Group Treasury is organizationally within the Parent Company. | ||||
The details about the management of the Group's financial risks are in the Note 30 of the Consolidated Financial statements. As the Group's liquidity and interest rate risks are managed at the parent company level the group reporting applies fully to the Parent Company. | ||||
Foreign exchange risk | ||||
Operative foreign currency risks are followed and hedged at the subsidiary level. Group Treasury acts as a counterparty to these hedges, if that is allowed by local regulations. To enable netting of intragroup currency flows and to reduce the amount of external transactions Group Treasury is allowed to have minor unhedged exposures in different currencies. Any gains/losses from Group Treasury's operations are booked directly into the financial items and we do not expect any material foreign exchange gains/losses from Group Treasury's operations. |
17. Collateral, contingent liabilities and other commitments | ||
MEUR | 2018 | 2017 |
Guarantees and contingent liabilities | ||
On behalf of Group companies | 3 215 | 737 |
Total | 3 215 | 737 |
Future nominal lease payments | ||
Payable within one year | 4 | 3 |
Payable after one year | 32 | 36 |
Total | 36 | 39 |
Note
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