E Notes to the Balance sheet
E1 Loans and receivables from credit institutions | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Payable on demand | 634,614 | 250,271 | 549,942 | 215,646 | ||||||
Other | 56,304 | 26,172 | 20,252 | 26,172 | ||||||
Total | 690,918 | 276,443 | 570,194 | 241,818 | ||||||
E2 Loans and receivables from customers | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Loans | 4,592,991 | 3,649,525 | 1,265,155 | 1,409,500 | ||||||
- Subordinated loans | 0 | 39,404 | 26,557 | 37,026 | ||||||
- Other loans | 4,678,704 | 3,711,272 | 1,324,311 | 1,473,626 | ||||||
- Impairment losses | -85,712 | -101,152 | -85,712 | -101,152 | ||||||
Loans to Group companies | 927,570 | 130,516 | ||||||||
Guarantee receivables | 38,740 | 46,023 | 38,740 | 46,023 | ||||||
Receivables from export credit guarantee and special guarantee operations | 11,238 | 15,305 | 11,238 | 15,305 | ||||||
- Fee and commission receivables | 498 | 605 | 498 | 605 | ||||||
- Recovery receivables | 10,740 | 14,700 | 10,740 | 14,700 | ||||||
Total | 4,642,969 | 3,710,853 | 2,242,703 | 1,601,344 | ||||||
Impairment losses on loans | ||||||||||
Impairment losses at the beginning of the period | 101,152 | 92,546 | 101,152 | 92,546 | ||||||
- Impairment losses on individually assessed loans | 59,365 | 56,815 | 59,365 | 56,815 | ||||||
- Impairment losses on collectively assessed loans | 41,787 | 35,731 | 41,787 | 35,731 | ||||||
Impairment losses recognised during the period | -1,250 | 24,891 | -1,249 | 24,891 | ||||||
- Impairment losses on individually assessed loans | 6,355 | 20,399 | 6,355 | 20,399 | ||||||
- Impairment losses on collectively assessed loans | -2,538 | 6,056 | -2,538 | 6,056 | ||||||
- Reversal of impairment losses | -7,734 | -4,754 | -7,734 | -4,754 | ||||||
- Other changes | 2,668 | 3,190 | 2,668 | 3,190 | ||||||
Credit losses materialised on loans where impairment losses have been recognised | -14,190 | -16,285 | -14,190 | -16,285 | ||||||
Impairment losses at the end of the period | 85,712 | 101,152 | 85,712 | 101,152 | ||||||
- Impairment losses on individually assessed loans | 46,464 | 59,365 | 46,464 | 59,365 | ||||||
- Impairment losses on collectively assessed loans | 39,248 | 41,787 | 39,248 | 41,787 | ||||||
An impairment loss on loans and other receivables is recognised when objective evidence of their impairment exists. The objective evidence of a customer's ability to fulfil its obligations is based on the customers' risk classification as well as on the Company's experience and the management's estimate of effect of defaults on the recovery of loan receivables. | ||||||||||
E3 Investments | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Debt securities, available-for-sale *) | ||||||||||
Certificates of deposits | 0 | 0 | 0 | 0 | ||||||
Commercial papers | 128,954 | 119,549 | 128,954 | 119,549 | ||||||
Local authority paper | 392,218 | 181,754 | 392,218 | 181,754 | ||||||
Bonds | 413,549 | 24,889 | 413,549 | 24,889 | ||||||
Other | 0 | 0 | 0 | 0 | ||||||
Total | 934,721 | 326,191 | 934,721 | 326,191 | ||||||
Investments in Group companies | ||||||||||
Acquisition cost at 31 Dec | 172,818 | 167,818 | ||||||||
- Acquisition cost at 1 Jan | 167,818 | 164,784 | ||||||||
- Investments | 10,000 | 10,000 | ||||||||
- Sales | 0 | -6,966 | ||||||||
- Other deductions | -5,000 | 0 | ||||||||
Accumulated impairment losses at 31 Dec | -13,003 | -9,003 | ||||||||
- Accumulated impairment losses at 1 Jan | -9,003 | 0 | ||||||||
- Impairment losses during the period | -4,000 | -9,003 | ||||||||
Total | 159,815 | 158,815 | ||||||||
Associates **) | ||||||||||
Acquisition cost at 31 Dec | 67,523 | 75,157 | 349 | 349 | ||||||
- Acquisition cost at 1 Jan | 75,157 | 67,700 | 349 | 425 | ||||||
- Investments | 9,878 | 9,488 | 0 | 0 | ||||||
- Sales | -17,512 | -2,031 | 0 | -76 | ||||||
Equity adjustments at 31 Dec | -3,953 | 3,037 | 0 | 0 | ||||||
Total | 63,570 | 78,195 | 349 | 349 | ||||||
Other shares ***) | ||||||||||
At fair value through profit or loss | 51,581 | 43,572 | 0 | 0 | ||||||
Available-for-sale | 15,553 | 74,447 | 14,520 | 15,246 | ||||||
Total | 67,134 | 118,019 | 14,520 | 15,246 | ||||||
Investment property | 0 | 0 | 0 | 0 | ||||||
Investments total | 1,065,425 | 522,405 | 1,109,404 | 500,602 | ||||||
*) Debt securities not publicly quoted. **) Investments in associates includes the following associated companies that are accounted for using the equity method: |
||||||||||
Name | Year | Carrying amount | Ownership | Assets | Liabilities | Carrying net sales | Profit/ loss |
|||
EUR 1,000 | EUR 1,000 | EUR 1,000 | EUR 1,000 | EUR 1,000 | ||||||
Kiinteistö Oy Kajaanin | 2014 | 349 | 36.43 % | 1,593 | 9 | 110 | -5 | |||
Kauppakatu 1 | 2013 | 349 | 36.43 % | 1,595 | 7 | 107 | 0 | |||
***) Other shares that are publicly quoted: | Finnvera Group | Finnvera plc | ||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
- Other shares | 1,485 | 59,727 | 451 | 526 | ||||||
E4 Intangible assets | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Acquisition cost at 31 Dec | 38,650 | 37,142 | 38,487 | 36,962 | ||||||
- Acquisition cost at 1 Jan | 37,142 | 35,869 | 36,962 | 35,712 | ||||||
- Additions | 1,552 | 1,293 | 1,543 | 1,271 | ||||||
- Disposals | -44 | -20 | -19 | -20 | ||||||
Accumulated amortization and impairment losses at 31 Dec | -35,222 | -34,569 | -35,108 | -34,472 | ||||||
- Accumulated amortization and impairment losses at 1 Jan | -34,569 | -33,889 | -34,472 | -33,809 | ||||||
- Amortization for the period | -653 | -680 | -636 | -663 | ||||||
Carrying amount at 1 Jan | 2,572 | 1,980 | 2,490 | 1,903 | ||||||
Carrying amount at 31 Dec | 3,427 | 2,572 | 3,379 | 2,490 | ||||||
E5 Property, plant and equipment | ||||||||||
(EUR 1,000) | Finnvera Group | Finnvera plc | ||||||||
Properties | Other tangible | Total | Properties | Other tangible | Total | |||||
31 Dec 2014 | ||||||||||
Acquisition cost at 31 Dec | 7,054 | 10,894 | 17,948 | 7,054 | 10,894 | 17,948 | ||||
- Acquisition cost at 1 Jan | 7,704 | 10,803 | 18,507 | 7,704 | 10,803 | 18,507 | ||||
- Additions | 0 | 91 | 91 | 0 | 91 | 91 | ||||
- Disposals | -650 | -1 | -651 | -650 | -1 | -651 | ||||
Accumulated amortization and impairment losses at 31 Dec | -6,883 | -9,723 | -16,606 | -6,883 | -9,723 | -16,606 | ||||
- Accumulated amortization and impairment losses at 1 Jan | -6,871 | -9,367 | -16,237 | -6,871 | -9,367 | -16,237 | ||||
- Amortization for the period | -12 | -356 | -369 | -12 | -356 | -369 | ||||
Carrying amount at 1 Jan | 834 | 1,437 | 2,270 | 834 | 1,437 | 2,270 | ||||
Carrying amount at 31 Dec | 171 | 1,171 | 1,342 | 171 | 1,171 | 1,342 | ||||
31 Dec 2013 | ||||||||||
Acquisition cost at 31 Dec | 7,704 | 10,803 | 18,507 | 7,704 | 10,803 | 18,507 | ||||
- Acquisition cost at 1 Jan | 7,997 | 10,298 | 18,295 | 7,997 | 10,298 | 18,295 | ||||
- Additions | 0 | 529 | 529 | 0 | 529 | 529 | ||||
- Disposals | -293 | -24 | -317 | -293 | -24 | -317 | ||||
Accumulated amortization and impairment losses at 31 Dec | -6,871 | -9,367 | -16,237 | -6,871 | -9,367 | -16,237 | ||||
- Accumulated amortization and impairment losses at 1 Jan | -6,851 | -8,943 | -15,794 | -6,851 | -8,943 | -15,794 | ||||
- Amortization for the period | -20 | -423 | -443 | -20 | -423 | -443 | ||||
Carrying amount at 1 Jan | 1,146 | 1,355 | 2,501 | 1,146 | 1,355 | 2,501 | ||||
Carrying amount at 31 Dec | 834 | 1,437 | 2,270 | 834 | 1,437 | 2,270 | ||||
E6 Other assets | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Credit loss receivables from the state and the ERDF | 19,713 | 6,516 | 19,713 | 6,516 | ||||||
Other | 4,345 | 5,030 | 7,783 | 5,894 | ||||||
Total | 24,059 | 11,546 | 27,496 | 12,410 | ||||||
The state and the European Regional Development Fund (ERDF) has granted Finnvera commitments to partially compensate Finnvera for the credit and guarantee losses. The commitments enable Finnvera to take higher risks in domestic business than financiers operating on commercial grounds. | ||||||||||
E7 Prepayments and accrued income | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Interest and interest subsidy receivables | 31,158 | 15,736 | 14,713 | 764 | ||||||
Fee and commission receivables | 6,799 | 6,847 | 6,583 | 6,672 | ||||||
Reinsurance premiums paid in advance | 27,616 | 24,903 | 27,616 | 24,903 | ||||||
Security given for derivatives | 74,220 | 18,700 | 74,220 | 18,700 | ||||||
Prepayments and other accrued income | 9,082 | 2,929 | 2,775 | 2,913 | ||||||
Total | 148,875 | 69,115 | 125,907 | 53,952 | ||||||
E8 Tax assets and liabilities | ||||||||||
Finnvera Group | ||||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | ||||||||
Income tax assets | 190 | 98 | ||||||||
Deferred tax assets at 31 Dec | 0 | 0 | ||||||||
- Deferred tax assets at 1 Jan | 0 | 0 | ||||||||
- Increase/decrease to income statement during the period | 0 | 0 | ||||||||
- Increase/decrease to other items in comprehensive income during the period | 0 | 0 | ||||||||
Tax assets total | 190 | 98 | ||||||||
Current income tax liabilities | 253 | 688 | ||||||||
Deferred tax liabilities at 31 Dec | 2,609 | 3,645 | ||||||||
- Deferred tax liabilities at 1 Jan | 3,645 | 4,230 | ||||||||
- Increase/decrease to income statement during the period | -924 | -436 | ||||||||
- Increase/decrease to other items in comprehensive income during the period | -113 | -149 | ||||||||
Tax liabilities total | 2,862 | 4,333 | ||||||||
Deferred tax liability arisen when the venture capital investments of subsidiaries engaged in venture capital investment are carried at fair value and investments in funds are carried at fair value. Finnvera plc is exempt from income tax. | ||||||||||
E9 Liabilities to credit and other institutions | ||||||||||
(EUR 1,000) | Finnvera Group | Finnvera plc | ||||||||
Nominal value |
Change in fair value |
Carrying amount |
Nominal value |
Change in fair value |
Carrying amount |
|||||
31 Dec 2014 | ||||||||||
Credit institutions | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Other institutions | ||||||||||
- At fair value through profit or loss | 34,428 | 1,341 | 35,769 | 0 | 0 | 0 | ||||
- At amortized cost | 2,419,517 | 0 | 2,419,517 | 0 | 0 | 0 | ||||
Total | 2,453,945 | 1,341 | 2,455,286 | 0 | 0 | 0 | ||||
31 Dec 2013 | ||||||||||
Credit institutions | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Other institutions | ||||||||||
- At fair value through profit or loss | 34,549 | 1,334 | 35,883 | 0 | 0 | 0 | ||||
- At amortized cost | 2,107,553 | 0 | 2,107,553 | 0 | 0 | 0 | ||||
Total | 2,142,102 | 1,334 | 2,143,436 | 0 | 0 | 0 | ||||
E10 Debt securities in issue | ||||||||||
(EUR 1 000) | Finnvera Group | Finnvera plc | ||||||||
Nominal value |
Change in fair value |
Carrying amount |
Nominal value |
Change in fair value |
Carrying amount |
|||||
31 Dec 2014 | ||||||||||
Bonds | ||||||||||
- At fair value through profit or loss | 2,545,897 | 18,243 | 2,564,141 | 2,545,897 | 18,243 | 2,564,141 | ||||
- At amortized cost | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Total | 2,545,897 | 18,243 | 2,564,141 | 2,545,897 | 18,243 | 2,564,141 | ||||
Average interest rate | 0.18% | 0.18% | ||||||||
31 Dec 2013 | ||||||||||
Bonds | ||||||||||
- At fair value through profit or loss | 1,055,418 | 4,452 | 1,059,870 | 1,055,418 | 4,452 | 1,059,870 | ||||
- At amortized cost | 0 | 0 | 0 | 0 | 0 | 0 | ||||
Total | 1,055,418 | 4,452 | 1,059,870 | 1,055,418 | 4,452 | 1,059,870 | ||||
Average interest rate | 0.30% | 0.30% | ||||||||
Liabilities have been measured at fair value when they have been hedged with derivatives (fair value option). An amount equaling the nominal value of a liability is repaid at the maturity date. The change in fair value does not include the change in credit risk because the liabilities have been guaranteed by the state of Finland, whose credit risk has not changed. | ||||||||||
E11 Derivatives | ||||||||||
(EUR 1,000) | Finnvera Group | Finnvera plc | ||||||||
Fair value | Nominal value | Fair value | Nominal value | |||||||
Positive | Negative | Total | Positive | Negative | Total | |||||
31 Dec 2014 | ||||||||||
Contracts entered in hedging purposes | ||||||||||
- Interest rate swaps and foreign exchange derivatives | 51,434 | 106,232 | 2,545,897 | 51,434 | 103,794 | 2,545,897 | ||||
Total | 51,434 | 106,232 | 2,545,897 | 51,434 | 103,794 | 2,545,897 | ||||
31 Dec 2013 | ||||||||||
Contracts entered in hedging purposes | ||||||||||
- Interest rate swaps and foreign exchange derivatives | 8,159 | 31,272 | 1,089,967 | 8,159 | 29,915 | 1,055,418 | ||||
Total | 8,159 | 31,272 | 1,089,967 | 8,159 | 29,915 | 1,055,418 | ||||
Derivatives hedge liabilities. The derivative contracts and the liabilities hedged with them have been measured at fair value and the changes in their fair values have been recognized in the income statement (fair value option). | ||||||||||
E12 Other liabilities | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Grants under repayment obligation | 24,466 | 27,679 | 24,466 | 27,679 | ||||||
Grant from the Ministry of Employment and the Economy to Seed Fund Vera Ltd for venture capital investments | 5,000 | 0 | 5,000 | 0 | ||||||
Prepayments received for ERDF financing | 18,758 | 18,601 | 18,758 | 18,601 | ||||||
Other | 2,545 | 8,457 | 2,481 | 3,509 | ||||||
Total | 50,769 | 54,738 | 50,705 | 49,790 | ||||||
E13 Provisions | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Provision for export credit guarantee losses at 1 Jan | 13,536 | 2,870 | 13,536 | 2,870 | ||||||
Provisions made during the period | 1,209 | 12,975 | 1,209 | 12,975 | ||||||
Provisions used during the period | 0 | -2,144 | 0 | -2,144 | ||||||
Other change | -13,536 | -165 | -13,536 | -165 | ||||||
Provision for export credit guarantee losses at 31 Dec | 1,209 | 13,536 | 1,209 | 13,536 | ||||||
Impairment losses on guarantees at 1 Jan | 51,020 | 41,688 | 51,020 | 41,688 | ||||||
- of which individually assessed guarantees | 32,564 | 26,010 | 32,564 | 26,010 | ||||||
- of which collectively assessed guarantees | 18,456 | 15,678 | 18,456 | 15,678 | ||||||
Guarantee losses realized during the period on which an impairment loss has been earlier recognized | -9,319 | -6,226 | -9,319 | -6,226 | ||||||
Individually assessed impairment losses recognized during the period | 11,235 | 15,089 | 11,235 | 15,089 | ||||||
Collectively assessed impairment losses recognized during the period | 1,764 | 2,778 | 1,764 | 2,778 | ||||||
Reversal of impairment losses | -1,441 | -2,490 | -1,441 | -2,490 | ||||||
Other change | 108 | 181 | 108 | 181 | ||||||
Impairment losses on guarantees at 31 Dec | 53,367 | 51,020 | 53,367 | 51,020 | ||||||
- of which individually assessed guarantees | 33,147 | 32,564 | 33,147 | 32,564 | ||||||
- of which collectively assessed guarantees | 20,220 | 18,456 | 20,220 | 18,456 | ||||||
Other provisions | 700 | 1,045 | 700 | 1,045 | ||||||
Total | 55,276 | 65,601 | 55,276 | 65,601 | ||||||
A provision for export credit guarantee losses is recognised when the Group has a constructive and legal obligation to pay a guarantee indemnity, the realisation of the obligation is probable and it can be measured reliably. A provision for domestic guarantee losses is recognised when objective evidence exists of impairment of guarantees' value. The objective evidence of a customer's ability to fulfil its obligations is based on the customers' risk classification as well as on the Company's experience and the management's estimate of effect of defaults on the recovery of loan receivables. |
||||||||||
E14 Operating leases | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Finnvera as the lessee, premises | ||||||||||
Non-cancellable minimum lease payments payable for premises eased under operating lease contracts |
||||||||||
Within one year | 376 | 532 | 0 | 532 | ||||||
Between one and five years | 6,162 | 8,178 | 0 | 8,178 | ||||||
Later than five years | 5,893 | 0 | 0 | 0 | ||||||
Total | 12,431 | 8,710 | 0 | 8,710 | ||||||
Finnvera as the lessor, premises | ||||||||||
Non-cancellable minimum lease payments payable for premises eased under operating lease contracts |
||||||||||
Within one year | 99 | 122 | 0 | 122 | ||||||
Between one and five years | 0 | 0 | 0 | 0 | ||||||
Later than five years | 0 | 0 | 0 | 0 | ||||||
Total | 99 | 122 | 0 | 122 | ||||||
E15 Accruals and deferred income | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Interest | 16,087 | 14,065 | 1,411 | 512 | ||||||
Advance interest payments received | 13,234 | 807 | 13,234 | 807 | ||||||
Guarantee premiums paid in advance *) | 284,718 | 286,443 | 284,718 | 286,443 | ||||||
Other accruals and deferred income | 37,883 | 6,302 | 35,969 | 6,063 | ||||||
Total | 351,923 | 307,616 | 335,333 | 293,824 | ||||||
*) Premiums on export guarantees are usually collected in advance for the entire guarantee period. | ||||||||||
E16 Subordinated liabilities, Finnvera plc | ||||||||||
Finnvera Group | ||||||||||
Loan | Purpose of use | Interest rate% | Loan period | Balance (EUR 1,000) | ||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | ||||||||
Subordinated loan 2009-1 | Increase in the share capital of Seed Fund Vera Ltd *) | 0 | 15 years | 13,639 | 20,529 | |||||
Subordinated loan 2009-2 | Increase in the share capital of Veraventure Ltd *) | 0 | 15 years | 7,500 | 7,500 | |||||
Subordinated loan 2009-3 | Raising Finnvera plc’s capital adequacy and improving the financing options **) | 0 | 15 years | 50,000 | 50,000 | |||||
Subordinated loan 2013 | Increase in the share capital of Seed Fund Vera Ltd *) | 0 | 15 years | 10,000 | 10,000 | |||||
Subordinated loan 2014 | Increase in the share capital of Seed Fund Vera Ltd *) | 0 | 15 years | 5,000 | ||||||
* The loans are to be used as investment raising the share capital of Seed Fund Vera Ltd and Veraventure Ltd. The loans will be paid back in one instalment at the end of the loan period, provided that the restricted equity and other non-distributable items, as shown in the balance sheet, remain fully covered after the repayment. In the event that the venture capital company’s financing operations show a loss, the corresponding amount will be deducted from the loan principals to be recovered. The loan granted in 2009 for raising the share capital of Seed Fund Vera Ltd was cancelled EUR 6,890 million in 2014 because of the loss shown by Seed Fund Vera Ltd for the financial year 2013. ** The loan is to be used for raising the capital adequacy of Finnvera plc and for improving the company’s capacity to meet the demand for its products, especially counter-cyclical loans and guarantees, owing to the prolonged financial crisis. The loan will be repaid in one instalment at maturity, provided that the company’s unrestricted equity and total subordinated liabilities at the time of payment exceed the loss recorded on the balance sheet adopted for the latest financial period or on a balance sheet included in more recent financial statements. |
||||||||||
E17 Financial instruments classification and fair values | ||||||||||
(EUR 1,000) | Finnvera Group | Finnvera plc | ||||||||
Financial assets | Loans and receivables | Financial instruments carried at fair value | Available for sale |
Total | Fair value | Loans and receivables | Financial instruments carried at fair value | Available for sale |
Total | Fair value |
31 Dec 2014 | ||||||||||
Loans and receivables from credit institutions | 690,918 | 690,918 | 690,902 | 570,194 | 570,194 | 570,194 | ||||
Loans and receivables from customers | 4,642,969 | 4,642,969 | 4,737,704 | 2,242,703 | 2,242,703 | 2,241,732 | ||||
Debt securities | 934,721 | 934,721 | 934,721 | 934,721 | 934,721 | 934,721 | ||||
Derivatives | 51,434 | 51,434 | 51,434 | 51,434 | 51,434 | 51,434 | ||||
Investments in associates | 35,369 | 28,201 | 63,570 | 63,570 | 349 | 349 | 349 | |||
Shares and participations | 51,581 | 15,553 | 67,134 | 67,134 | 14,520 | 14,520 | 14,520 | |||
Other financial assets | 131,894 | 131,894 | 131,894 | 104,769 | 104,769 | 104,769 | ||||
Total 31 Dec 2014 | 5,465,781 | 138,384 | 978,474 | 6,582,640 | 6,677,359 | 2,917,666 | 51,434 | 949,589 | 3,918,690 | 3,917,718 |
31 Dec 2013 | ||||||||||
Loans and receivables from credit institutions | 276,443 | 276,443 | 276,443 | 241,818 | 241,818 | 241,818 | ||||
Loans and receivables from customers | 3,710,853 | 3,710,853 | 3,929,693 | 1,601,344 | 1,601,344 | 1,600,284 | ||||
Debt securities | 326,191 | 326,191 | 326,191 | 326,191 | 326,191 | 326,191 | ||||
Derivatives | 8,159 | 8,159 | 8,159 | 8,159 | 8,159 | 8,159 | ||||
Investments in associates | 78,195 | 78,195 | 78,195 | 349 | 349 | 349 | ||||
Shares and participations | 43,572 | 74,447 | 118,019 | 118,019 | 15,246 | 15,246 | 15,246 | |||
Other financial assets | 47,819 | 47,819 | 47,819 | 32,673 | 32,673 | 32,673 | ||||
Total 31 Dec 2013 | 4,035,115 | 129,925 | 400,638 | 4,565,678 | 4,784,519 | 1,875,835 | 8,159 | 341,786 | 2,225,780 | 2,224,720 |
The fair value of Finnfund, included in available for sale, cannot be determined reliably; the shares have therefore been valued at the original acquisition price. | ||||||||||
(EUR 1,000) | Finnvera Group | Finnvera plc | ||||||||
Financial liabilities | Financial instruments carried at fair value | Other financial liabilities | Total | Fair value | Financial instruments carried at fair value | Other financial liabilities |
Total | Fair value | ||
31 Dec 2014 | ||||||||||
Liabilities to other institutions | 35,769 | 2,419,517 | 2,455,285 | 2,510,812 | 0 | 0 | ||||
Debt securities in issue | 2,564,141 | 2,564,141 | 2,564,141 | 2,564,141 | 2,564,141 | 2,564,141 | ||||
Derivatives | 106,232 | 106,232 | 106,232 | 103,794 | 103,794 | 103,794 | ||||
Other financial liabilities | 343,004 | 343,004 | 343,004 | 328,302 | 328,302 | 328,302 | ||||
Subordinated liabilities | 86,139 | 86,139 | 86,139 | 86,139 | 86,139 | 86,139 | ||||
Total 31 Dec 2014 | 2,706,141 | 2,848,659 | 5,554,800 | 5,610,327 | 2,667,935 | 414,441 | 3,082,376 | 3,082,376 | ||
31 Dec 2013 | ||||||||||
Liabilities to other institutions | 35,883 | 2,107,553 | 2,143,436 | 2,227,067 | 0 | 0 | ||||
Debt securities in issue | 1,059,870 | 1,059,870 | 1,059,870 | 1,059,870 | 1,059,870 | 1,059,870 | ||||
Derivatives | 31,272 | 31,272 | 31,272 | 29,915 | 29,915 | 29,915 | ||||
Other financial liabilities | 304,298 | 304,298 | 304,298 | 290,698 | 290,698 | 290,698 | ||||
Subordinated liabilities | 88,029 | 88,029 | 88,029 | 88,029 | 88,029 | 88,029 | ||||
Total 31 Dec 2013 | 1,127,025 | 2,499,880 | 3,626,905 | 3,710,536 | 1,089,785 | 378,727 | 1,468,512 | 1,468,512 | ||
Classifications Under IFRS rules, financial assets can be classified into four main categories: loans and receivables, financial assets at fair value through profit or loss, available-for-sale financial assets and held-to-maturity financial investments. Financial assets at fair value through profit or loss can be further divided into the following categories: classified as held for trading and upon initial recognition designated by the entity as at fair value through profit or loss. The Group has no financial assets to be held for trading or held until maturity. Under IFRS rules, the Group's financial liabilities can be classified into two main categories: Financial liabilities at fair value through profit or loss and other financial liabilities. Other financial liabilities are measured at amortised cost using the effective interest method. Financial liabilities at fair value through profit or loss are presented in the same manner as financial assets, classified as being held for trading and upon initial recognition designated by the entity as at fair value through profit or loss. The Group has no financial liabilities to be held for trading. Fair value measurement principles 1. Debt securities The fair value of debt securities are based on the market quote on the end date of the financial period or the value of the discounted market interest rate on the end date of the financial period. 2. Derivatives The fair values of interest rate and currency swaps and currency futures are specified using a method based on the current value of cash flows, in which the market interest rates on the end date of the financial period and other market information serve as the accounting principle. The Group uses common valuation techniques in determining the fair value of these instruments. Fair values are equivalent to average market prices in situations where the Group would transfer or sell derivatives in the course of normal business under market conditions on the end date of the financial period. The credit risk related to derivatives is mitigated by means of collateral arrangements. Fair values are monitored on a daily basis using calculations from counterparties and those made in-house. 3. Investments in associates The fair value of subsidiaries involved in venture capital investment is determined using a valuation technique approved by the Board of Directors that complies with the International Equity and Venture Capital Valuation (IPEV) Guidelines and recommendations for early stage ventures. In this technique, the determination of the investment's fair value is based on the valuation and investments made by outside investors as well as on the portfolio company valuation approved by the fund's Board of Directors. The valuation of companies is done continuously throughout the year, with valuations being updated on a biannually basis, for Group reporting in a separate process, where investments are examined by investment portfolio. The basis for valuation is the value to be determined based on the previous round of investments. If necessary, this value can be adjusted in accordance with change factors in the portfolio company its performance and its operating environment. In accordance with State aid regulations, all investment rounds include private investors, with whom investments are made under mutually applicable conditions and at a valuation approved by private investors. In determining the value of a holding, attention is also given to the impact that any options and rights of exchange may have on the holding value If fair value cannot be determined reliably, venture capital investments shall be measured at amortised cost using the effective interest method. Initial investments less than a year old are measured at their book value. When fair values decrease, valuation can be based on an estimate made by the administrative company. Fund investments are also made in accordance with IPEV Guidelines. The valuation of fund portfolio companies is done by private fund administration companies, which report their valuations to the funds' boards of directors and investors. 4. Shares and participations Shares and reserve shares listed on the NASDAQ OMX Helsinki stock exchange that are classified as available-for-sale shares and participations are measured at the exchange rate on the date of the financial statements. Unlisted shares classified as available-for-sale shares and participations are measured using the effective interest method. Because their measurement using fair value measurement models has not been possible, nor could the fair value of investments otherwise be reliably determined. The most significant item of this kind comprehends the shares for the Finnish Fund for Industrial Cooperation Ltd. (EUR 13.67 million). 5. Financial liabilities at fair value through profit or loss The fair value of liabilities are calculated using a method based on the current value of cash flows. In this method, market interest rates on the end date of the financial period and other accounting information serve as the accounting principle. The company's own credit risk is also taken into consideration in the measurement of liabilities. |
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E18 Hierarchy for carrying financing instruments at fair value | ||||||||||
(EUR 1,000) | Finnvera Group | Finnvera plc | ||||||||
Financial assets 31 Dec 2014 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||
Loans and other assets | ||||||||||
- Loans and receivables from credit institutions | 690,918 | 570,194 | ||||||||
- Loans and receivables from customers | 4,628,137 | 14,833 | 2,227,871 | 14,833 | ||||||
Financial instruments carried at fair value | ||||||||||
- Derivatives | 51,434 | 51,434 | ||||||||
- Investments in associates | 35,369 | |||||||||
- Shares and holdings | 51,581 | |||||||||
Available-for-sale | ||||||||||
- Debt securities | 934,721 | 934,721 | ||||||||
- Other shares and participations | 28,201 | 349 | ||||||||
- Shares and holdings | 1,485 | 14,068 | 451 | 14,068 | ||||||
Total | 1,485 | 6,305,210 | 144,052 | 451 | 3,784,219 | 29,250 | ||||
Financial liabilities 31 Dec 2014 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||
Financial instruments carried at fair value | ||||||||||
- Liabilities to other institutions | 35,769 | |||||||||
- Debt securities in issue | 2,564,141 | 2,564,141 | ||||||||
- Derivatives | 106,232 | 103,794 | ||||||||
Other financial liabilities | ||||||||||
- Liabilities to other institutions | 1,059,870 | 1,059,870 | ||||||||
- Subordinated liabilities | 86,139 | 86,139 | ||||||||
Total | 3,852,150 | 3,813,944 | ||||||||
Finnvera Group | Finnvera plc | |||||||||
Financial assets 31 Dec 2013 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||
Loans and other assets | ||||||||||
- Loans and receivables from credit institutions | 276,443 | 241,818 | ||||||||
- Loans and receivables from customers | 3,696,880 | 13,973 | 1,587,371 | 13,973 | ||||||
Financial instruments carried at fair value | ||||||||||
- Derivatives | 8,159 | 8,159 | ||||||||
- Investments in associates | 78,195 | 0 | ||||||||
- Shares and holdings | 43,572 | 0 | ||||||||
Available-for-sale | ||||||||||
- Debt securities | 326,191 | 326,191 | ||||||||
- Other shares and participations | 0 | 349 | ||||||||
- Shares and holdings | 59,727 | 14,720 | 526 | 14,720 | ||||||
Total | 59,727 | 4,307,673 | 150,459 | 526 | 2,163,540 | 29,041 | ||||
Financial liabilities 31 Dec 2013 | Level 1 | Level 2 | Level 3 | Level 1 | Level 2 | Level 3 | ||||
Financial instruments carried at fair value | ||||||||||
- Liabilities to other institutions | 35,883 | |||||||||
- Debt securities in issue | 1,059,870 | 1,059,870 | ||||||||
- Derivatives | 31,272 | 29,915 | ||||||||
Other financial liabilities | ||||||||||
- Liabilities to other institutions | 2,107,553 | 0 | ||||||||
- Subordinated liabilities | 88,029 | 88,029 | ||||||||
Total | 3,322,607 | 1,177,814 | ||||||||
Hierarchy levels Level 1: Investments in quoted shares and funds traded on the active market are valued at market price. Level 2: The fair values of interest rate and currency swaps, currency futures and liabilities are specified using a method based on the current value of cash flows, in which the market interest rates at the closing of the financial period and other market information serve as the accounting principle. The fair values of debt securities are based on the market quote of the investments at the closing of the financial period or on the value discounted using the market interest rate at the closing of the financial period. Level 3: The fair value of venture capital investments made by subsidiaries engaged in venture capital investment is based on the valuation and investments made by outside investors as well as on the portfolio company valuation approved by the fund. The method used complies with the International Private Equity and Venture Capital Valuation Guidelines (IPEV) for early-stage enterprises. Transfers between levels 1 and 2 There were no transfers between the fair-value hierarchy levels 1 and 2 during the financial period under review or the preceding financial period. |
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E19 Specification of events at hierarchy | ||||||||||
LEVEL 3, Financial assets | Finnvera Group | Finnvera plc | ||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Financial assets carried at fair value | ||||||||||
Balance at 1 Jan | 136,137 | 124,679 | 14,720 | 14,230 | ||||||
Profits and losses entered in the income statement, in total | -6,973 | -2,668 | -169 | -61 | ||||||
Acquisitions | 22,538 | 19,639 | 0 | 624 | ||||||
Sales | -22,753 | -5,512 | -482 | -55 | ||||||
Other | -79 | -1 | 0 | -18 | ||||||
Balance at 31 Dec | 128,870 | 136,137 | 14,068 | 14,720 | ||||||
Profits and losses entered in the income statement for the instruments held by Finnvera | -6,087 | 751 | 0 | 0 | ||||||
E20 Financial instruments set off in the balance sheet or subject to netting agreements | ||||||||||
Finnvera Group / Finnvera plc | ||||||||||
(EUR 1,000) | Gross recognised financial assets | Gross recognised financial liabilities set of in the balance sheet | Net carrying amount in the balance sheet | Financial instruments*) | Financial instruments received as collateral*) |
Cash received as collateral*) |
Net amount*) |
|||
Financial assets 31 Dec 2014 | ||||||||||
Derivatives | 51,434 | 0 | 51,434 | -51,434 | 0 | -27,000 | -27,000 | |||
Total | 51,434 | 0 | 51,434 | -51,434 | 0 | -27,000 | -27,000 | |||
Financial liabilities 31 Dec 2014 | ||||||||||
Derivatives | 103,794 | 0 | 103,794 | -1,147 | 0 | -74,220 | 28,428 | |||
Total | 103,794 | 0 | 103,794 | -1,147 | 0 | -74,220 | 28,428 | |||
Financial assets 31 Dec 2013 | ||||||||||
Derivatives | 8,159 | 0 | 8,159 | -7,029 | 0 | 0 | 1,130 | |||
Total | 8,159 | 0 | 8,159 | -7,029 | 0 | 0 | 1,130 | |||
Financial liabilities 31 Dec 2013 | ||||||||||
Derivatives | 29,915 | 0 | 29,915 | -7,029 | 0 | -18,700 | 4,186 | |||
Total | 29,915 | 0 | 29,915 | -7,029 | 0 | -18,700 | 4,186 | |||
*) Sums not subject to netting but included in the main netting agreements and similar arrangements. | ||||||||||
E21 Equity | ||||||||||
Finnvera Group | Finnvera plc | |||||||||
(EUR 1,000) | 31 Dec 2014 | 31 Dec 2013 | 31 Dec 2014 | 31 Dec 2013 | ||||||
Parent company's equity | 196,605 | 196,605 | 196,605 | 196,605 | ||||||
Reserves | ||||||||||
- Share premium | 51,036 | 51,036 | 51,036 | 51,036 | ||||||
- Fair value reserve | -99 | 50,937 | 518 | 51,554 | -236 | 50,800 | -71 | 50,965 | ||
Tied equity | 247,542 | 248,159 | 247,405 | 247,570 | ||||||
Non-restricted reserves | ||||||||||
- Reserve for domestic operations | 135,089 | 137,172 | 135,089 | 137,172 | ||||||
- Reserve for export credit guarantee and special guarantee operations | 435,628 | 357,825 | 435,628 | 357,825 | ||||||
- Reserve for venture capital investments | 16,619 | 587,335 | 17,225 | 512,223 | 16,619 | 587,335 | 17,225 | 512,223 | ||
Retained earnings | ||||||||||
- Profit/loss for previous periods | 6,871 | 527 | 504 | 504 | ||||||
- Profit/loss for the period | 108,864 | 115,736 | 82,064 | 82,590 | 101,227 | 101,731 | 75,719 | 76,223 | ||
Unrestricted equity | 703,071 | 594,813 | 689,066 | 588,445 | ||||||
Total | 956,013 | 848,566 | 936,471 | 836,015 | ||||||
Equity attributable to the parent company's shareholders | 950,613.2 | 842,971.6 | ||||||||
Share of equity held by non-controlling interests | 5,399.5 | 5,594.0 | ||||||||
Share capital and ownership: | 31 Dec 2014 | 31 Dec 2013 | ||||||||
Owner | ||||||||||
Share capital | Shares, nb | Ownership | Share capital | Shares, nb | Ownership | |||||
(EUR 1,000) | (EUR 1,000) | |||||||||
- The state | 196,605 | 11,565 | 100% | 196,605 | 11,565 | 100% | ||||
Reserves: Share premium The share premium reserve has been formed before the new regulations of the Companies' Act came into force on 1 September 2006. The reserve includes the difference of EUR 42.9 million between the acquisition cost and the nominal value of KERA's shares and EUR 0.1 million that was generated in the transfer of assets of Takuukeskus and the acquisition of Fide Oy's shares as well as EUR 8.1 million generated by the raise of share capital of Finnvera as the shares of Finnish Export Credit Ltd were acquired. Reserve for domestic operations and fund for export credit guarantee and special guarantee operations In 2006 the laws regulating the operations of Finnvera Plc were amended so that separate funds to cover future losses from domestic operations and from export credit guarantee and special guarantee operations were established in equity. Losses from export credit guarantee and special guarantee operations will be covered by resources from the State Guarantee Fund only when the export credit guarantee and special guarantee fund is insufficient. The retained earnings from the domestic operations were transferred to the fund for domestic operations and the retained earnings from the export credit guarantee and special guarantee operations were transferred to the fund for export credit guarantee and special guarantee operations. Reserve for venture capital investments In 2011, a fund for venture capital investments was established in the unrestricted equity on the balance sheet. The purpose is to monitor the assets allocated for venture capital investments in accordance with ERDF operational programmes. The Ministry of Employment and the Economy has allocated to Finnvera the sum of EUR 17.5 million, to be used for venture capital investments in accordance with ERDF operational programmes during the programme period 2007–2013. These assets have been recorded in the above fund. Fair value reserve The reserve includes the fair value change of available-for-sale financial assets. The items recognized in the fair value reserve are taken to the income statement when an available-for-sale financial asset is disposed of or an impairment loss on such an asset is recognised. The Group’s objectives and principles for capital management are presented in the Risk Management section. |