X
MenuClose
Open navigation

Notes to the parent company financial statements

1. Other operating income
MEUR 2017 2016
Rental income 1 1
Services to Group companies 71 71
Profit on sales of fixed assets 1
Other 1 1
Total 72 74
2. Personnel expenses
MEUR 2017 2016
Wages and salaries -57 -27
Pension costs -5 -4
Other compulsory personnel costs -1 -2
Total -63 -33
Salaries and remunerations paid to senior management
The President and CEO and his deputy and members of the Board of Directors -3 -4
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 324 282
3. Depreciation and amortisation
MEUR 2017 2016
Depreciation and amortisation according to plan
Other long-term expenditure -4 -5
Total depreciation according to plan -4 -6
Tax depreciations -4 -5
Depreciation difference 1 1
Depreciation difference
Depreciation difference on 1 January 2 3
Change in the depreciation difference -1 -1
Depreciation difference on 31 December 2 2
4. Financial income and expenses
MEUR 2017 2016
Dividend income
From Group companies 146 286
Total 146 286
Other interest income
From Group companies 22 23
From other companies 1
Total 22 23
Other financial income
From Group companies 10 9
From other companies 9 6
Total 19 15
Exchange gains and losses 1 2
Interest expenses
To Group companies -5 -5
To other companies -8 -9
Total -13 -14
Other financial expenses
To Group companies -10 -7
To other companies -15 -16
Total -25 -22
Financial income and expenses, total 151 290
5. Income taxes
MEUR 2017 2016
Income taxes
For the financial period -3 -2
For prior financial periods -2
Total -3 -4
6. Fixed assets
Intangible assets
MEUR Other
long-term
expenditures
Construction
in progress
Total 2017 Total 2016
Acquisition cost at January 1 122 122 121
Additions 1 2 3 1
Disposals -1 -1 -1
Acquisition cost at December 31 121 2 123 122
Accumulated amortisation at January 1 -113 -113 -109
Accumulated amortisation on disposals and other changes 1 1 1
Amortisation during the financial period -4 -4 -5
Accumulated amortisation at December 31 -115 -115 -113
Carrying amount at 31 December 2017 6 2 8
Carrying amount at 31 December 2016 9 9
Tangible assets
MEUR Land
and
water
Buildings
and
structures
Machinery, equipment and other tangible assets Total 2017 Total 2016
Acquisition cost at January 1 7 2 4 13 14
Additions 1 1 1
Disposals -2
Acquisition cost at
December 31
7 2 4 13 13
Accumulated depreciation at
January 1
-2 -3 -4 -4
Accumulated depreciation at December 31 -2 -3 -5 -4
Carrying amount at 31 December 2017 7 1 2 9
Carrying amount at 31 December 2016 7 1 1 9
Shares and securities
MEUR Shares in
Group
companies
Shares in
other
companies
Total 2017 Total 2016
Acquisition cost at January 1 950 2 951 951
Disposals -1 -1
Acquisition cost at December 31 950 1 951 951
Carrying amount at 31 December 2017 950 1 951
Carrying amount at 31 December 2016 950 2 951
7. Non-current receivables
MEUR 2017 2016
Receivables from Group companies
Loan receivables 104 103
Total 104 103
8. Current receivables from Group companies
MEUR 2017 2016
Trade receivables 6 7
Loan receivables 1 657 1 928
Derivatives 19 24
Other receivables 99 34
Prepaid expenses and accrued income 4 3
Total 1 786 1 996
9. Prepaid expenses and accrued income
MEUR 2017 2016
Derivatives 32 11
Other financial items 1 1
Insurance receivables 1
Other 3 2
Total 35 16
10. Shareholders' equity
MEUR 2017 2016
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 1 097 1 053
Dividends paid -256 -237
Result for the financial period 161 282
Retained earnings on December 31 1 002 1 097
Total shareholders' equity 1 399 1 494
Distributable equity 1 002 1 097
11. Liabilities
MEUR 2017 2016
Non-current
Interest-bearing 508 508
Total 508 508
Current
Non-interest-bearing 133 84
Interest-bearing 1 032 1 290
Total 1 165 1 374
Debt with maturity profile
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
2016 Current Long-term
MEUR <1 year 1-5 years >5 years Total
Loans from financial institutions 88 314 185 588
Loans from pension institutions 10 8 18
Total 99 322 185 606
12. Accrued expenses and deferred income
MEUR 2017 2016
Derivatives 45 44
Personnel costs 35 12
Interest and other financial items 3 3
Other 4 3
Total 85 62
13. Liabilities to Group companies
MEUR 2017 2016
Trade payables 3 6
Other current liabilities 950 1 191
Derivatives 29 9
Accrued expenses and deferred income 3 1
Total 985 1 207
14. Financial assets and liabilities by measurement category
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.
2016
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 1 928 1 928 1 928
Trade receivables from Group companies 7 7 7
Derivatives 11 11 11
Derivatives from Group companies 24 24 24
Other receivables 8 8 8
Other receivables from Group companies 3 3 3
Cash equivalents 123 123 123
Cash and bank 181 181 181
Carrying amount by category 2 355 35 2 390 2 390
Non-current financial liabilities
Interest-bearing debt 508 508 518
Current financial liabilities
Interest-bearing debt 99 99 99
Interest-bearing debt to Group companies 1 191 1 191 1 191
Trade payables 6 6 6
Trade payables to Group companies 6 6 6
Derivatives 44 44 44
Derivatives to Group companies 9 9 9
Other liabilities 3 3 3
Carrying amount by category 1 812 53 1 865 1 876
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 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
Currency forwards, transaction risk 6 -10 -4
Interest rate swaps -2 -2
Cross currency swaps -17 -17
Total -23
MEUR With external financial institutions With Group companies Total 2016
Nominal values of derivative financial instruments
Currency forwards, transaction risk 1 573 1 190 2 763
Interest rate swaps 165 165
Cross currency swaps 81 81
3 009
Fair values of derivative financial instruments
Currency forwards, transaction risk -22 18 -4
Interest rate swaps -4 -4
Cross currency swaps -10 -10
Total -18
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
2017 2016
MEUR Debt in
balance sheet
Debt in
balance sheet
Guarantees and contingent liabilities
On behalf of Group companies 737 921
Total 737 921
Future nominal lease payments
Payable within one year 3 2
Payable after one year 36 13
Total 39 16
18. Related party loans and other commitments
There are no loans receivables from senior management and the members of the Board of Directors. No pledges or other commitments were given on behalf of senior management or shareholders. In Note 28 in Consolidated Financial Statements, related party disclosures are specified. Related parties comprise the Board of Directors, the President and CEO, the Board of Management as well as the associated companies and joint ventures. In Notes 8 and 13 in Parent Company financial statement, receivables and liabilities from Group companies are specified.
19. Auditors' fees and services
The following fees were paid to auditors and accounting firms for audits and other services.
In 2017, the AGM appointed the audit firm PricewaterhouseCoopers Oy as Wärtsilä Corporation's auditor.
Auditors' fees
TEUR 2017 2016
Audit 399 158
Tax advisory 200
Other services 85 116
Total 484 474

Note

Add a note?