2
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
ELENIA VERKKO OYJ GROUP - REPORT OF THE BOARD OF DIRECTORS 2024
Elenia Group’s Business Operations
Elenia Verkko Oyj Group (”Elenia or ”Elenia Verkko Oyj”) con-
sisted of Elenia Verkko Oyj (the parent company) and its fully-
owned subsidiary Elenia Innovations Oy. Elenia Innovations had
no business in 2024. Elenia Verkko Oyj is a fully-owned subsidi-
ary of Elenia Oy.
Business Review – Network Business
Elenia Verkko Oyj is Finland’s second-largest electricity distribu-
tion system operator (DSO) with a 18 %
market share in terms
of total length of the network and 12% market share in terms of
the number of customers. The company has a regional monop-
oly position, and it serves all customers in the geographical ar-
eas defined in the licence granted by the Energy Authority (EA).
The licence holder has the exclusive right to build and operate
an electricity distribution network in its geographical area of re-
sponsibility.
With an electricity network of approximately 76,900 kilo-
metres, Elenia Verkko Oyj supplies electricity to 442,000 end
users. In addition to residential customers, key customer seg-
ments include industrial, service, construction and public sec-
tors. The company has operations in more than 100 cities and
municipalities spanning a geographical area of nearly 600 km in
length across central Finland, from Southern Häme to Northern
Ostrobothnia.
During the financial year, Elenia’s network business distrib-
uted 6,142 GWh of electricity, compared to 6,037 GWh in the
previous year. The distribution volume increased by 105 GWh
(1.74 %). The increase is mostly attributable to the cold winter
weather during the first quarter of 2024.
Revenue from the network business was EUR 341.4 million
(EUR 317.9 million in 2023). Revenue increased by EUR 23.5
million (7.4%) driven by distribution volume increase and tariff
increases. The EBITDA of the network business was EUR 233.4
million (EUR 213.2 million in 2023). EBITDA increased by EUR
20.2 million (9.5%). The positive EBITDA development was
driven by the said higher volumes and tariff increases. Addition-
ally, the temporary grid fee rebates contributed to the positive
EBITDA performance.
In 2024 Elenia suffered from several smaller storms and in-
curred one major power disruption i.e. Storm Jari (20-25 No-
vember 2024). Storm Jari caused 2,000 fault repair tasks in our
network and impacted approximately 130,000 customers. It
caused the most severe damages to our network in nine years.
At the worst moment, there were 29,800 customers without
electricity. There were 19,200 customers with an outage longer
than 12 hours and 10,100 customers with an outage longer
than 24 hours. While most of the customers got power back
reasonably quickly, but the longest outages were almost five
days, which illustrates the need to still improve security of sup-
ply and continue the capex rollout. The total costs of Storm Jari
were EUR 7.8 million, consisting of mandatory customer com-
pensations of EUR 4.0 million with other costs (mainly repair
costs but also voluntary compensations) of EUR 3.8 million.
Storm Jari is categorised as class 4 storm and the costs will be
treated as exceptional and non-recurring for purposes of calcu-
lating EBITDA excluding items affecting comparability as well as
in the covenant calculations.
The SAIDI (System Average Interruption Duration Index)
was 196 minutes due to the storms (95 minutes in 2023). Ex-
cluding the influence of Jari storm, the result was 94 minutes.
SAIFI (System Average Interruption Frequency Index) was 3.0
interruptions per customer and excluding storm Jari excellent
2.4 interruptions per customer. The number of short interrup-
tions (less than 3 minutes) per customer was 4.0.
The Electricity Market Act (“EMA”) states that 100% of cus-
tomers must be within the scope of the quality requirements by
the end of 2036. Elenia has sought to achieve this target by in-
creasing the underground cabling rate to 90 % by the end of
2036. The investment plan of Elenia’s network business is de-
signed to improve the security of supply via underground ca-
bling. Since 2009, Elenia has built only weatherproof distribu-
tion lines. At the end of the year, 65.1 % of Elenia’s network
was underground, compared to 63.8 % at the end of 2023.
At the end of the year, 83.4 % of the customers of Elenia’s
network business were within the scope of the quality require-
ments stipulated by the EMA. The corresponding figure at the
end of 2023 was 82%. While the main focus in the develop-
ment of the security of supply is on underground cabling, Elenia
also seeks to improve the security of supply by other means. In
2020, a battery pack was successfully deployed in the Kuru area
to provide electricity to local households in case of an outage.
Elenia is investing into two additional battery packs, which
should be commissioned during 2025.
Elenia invested EUR 133.9 million in developing electricity
networks during the financial year. In 2023, the corresponding
investments amounted to EUR 140.5 million. Elenia Verkko Oyj
cut its investments significantly in 2023 as the result of the sud-
den mid-period change to the regulatory methods by the EA
and investments were maintained at the lower level due to the
changes to the regulatory methods that the EA made for the
sixth and seventh regulatory periods.
In June 2024 Elenia submitted to the EA its statutory net-
work development plan. Elenia’s capex requirements to replace
aging overhead lines and improve the security of supply ex-
ceeds EUR 1,900 million by 2036. Additionally, green transition
related capex is expected to amount to approximately EUR 500
million by 2036. This capex includes for example the
1
2036, all customers (100%) must be connected to a secure network
where outages caused by storms or snow cannot last more than 6 hours
in zoned areas and not more than 36 hours in other areas. For Elenia,
75% of customers must be connected to a secure network by the end
of 2023, and 100% by the end of 2036. The previous deadline for the
quality requirements was the end of 2028, which still applies to some
network companies (whose underground cabling rate was over 60% at
the end of 2018).
3
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
deployment of smart meters, increase of the network capacity
to enable connection of wind and solar power and electrifica-
tion of transportation, heating and industrial processes.
Elenia has cut its investments in the coming years, in 2025
by approximately EUR 40 million, compared to the network de-
velopment plan submitted to the EA in June 2022. At the same
time, the investment need is the highest in Elenia’s history
driven by continuing security of supply investments along with
investments to broaden and strengthen the network to enable
green transition.
As part of the 2022 network development plan, Elenia was
required for the first time to organise a public hearing for its
customers and stakeholders on the network development plan.
One of the findings of the hearing was that 85% of the custom-
ers think that 12 hours is the maximum acceptable outage
length, which is significantly shorter than the 36-hour limit set
in EMA for 2036.
In 2024, 271 MW of new wind power capacity (300 MW in
2023) and 2,507 new solar panel installations (4,865 in 2023),
representing capacity increase 28 MW, were connected to
Elenia's distribution grid. At the end of 2024, the wind power
capacity connected to Elenia’s network totalled 1517 MW. At
the end of 2024, the solar power installations connected to
Elenia’s network totalled 18,514 representing generation capac-
ity of 178 MW. The renewable electricity generated to Elenia’s
network totalled 3,973 GWh. In relation to the electricity dis-
tributed to Elenia’s customers, the renewable production was
increased to 65%.
There is a clear increase among our corporate customers in
industrial electrification solutions and interest in battery solu-
tions. For the consumer customers there is a clear increase in
the solar panel installations, electric vehicle charging, rechargea-
ble home batteries, and the interest towards real-time electric-
ity consumption data, our online services and Elenia Aina. For
corporate customers the interest is driven by the green transi-
tion and the need to move away from fossil-fuel based solutions
(such as natural gas) and for consumer customers the interest is
driven additionally by the very high volatility in electricity
prices.
Elenia Verkko Oyj continued to develop its asset manage-
ment system according to the international standard ISO
55001:2014. The requirements ISO 55001 guide the construc-
tion, operation, maintenance and repairs of Elenia’s electricity
network. This ensures that the company will continue to oper-
ate, maintain and upgrade its electricity network in order to re-
spond to its customers’ needs. The standards also require that
suppliers and service providers commit to responsible, high-
quality operations. The asset management system of Elenia’s
network business was recertified in November 2022 by LRQA
and the second surveillance visit was in 2024.
The EA oversees the operations of Finnish distribution sys-
tem operators. The regulation is based on four-year regulatory
periods. The past year was the first year of the sixth regulatory
period (2024–2027). Elenia received a new regulatory decision
on 29 December 2023 regarding the regulatory methods that
are in force for two consecutive regulatory periods: sixth regu-
latory period from 1 January 2024 until 31 December 2027 and
seventh regulatory period from 1 January 2028 until 31 Decem-
ber 2031.
There are numerous changes in the new regulatory methods
compared to the previously applied methods. The key changes
to the previous methods include freezing of the asset base to
2022 construction costs and the calculation of industry wide
unit prices. The changes compared to the previous methods
were significant and in Elenia’s view unnecessary, sudden and
unjustified. Elenia appealed the methods to the market court
and the verdict is expected in the first half of 2025. Regardless
of the outcome of the case, it is very likely that the losing party
will appeal to the Supreme Administrative Court, which means
that the outcome of the proceedings will not be known until
2026, the earliest.
Concurrently with the market court case related to the reg-
ulatory methods for the sixth and the seventh regulatory period,
Elenia and other Finnish DSOs have another market court case
related to sudden mid-period change to the regulatory methods
for 2022 and 2023, which is still pending. Again, there is a high
likelihood of a further appeal to the Supreme Administrative
Court, which means that the outcome of the proceedings will
not be known until 2026, the earliest.
In 2024 the reasonable rate of return was 7.37 % and for
2025 the EA has confirmed that the reasonable rate of return is
7.20 %.
Financing
Elenia Group’s financing activities are centralised into Elenia
Verkko Oyj. In 2024, Elenia Verkko Oyj did not issue any new
bonds (no new bonds were issued in 2023). The Group’s sol-
vency and liquidity remain very strong. At the end of the finan-
cial year, cash and cash equivalents amounted to EUR 43 million
(EUR 60 million at the end of 2023).
Bonds issued by Elenia Verkko Oyj are listed at London
Stock Exchange. The bonds and notes issued by Elenia Verkko
Oyj have BBB (Stable) credit rating from S&P Global Ratings.
The Group’s credit facilities consist of a EUR 250 million
Capex Facility, a EUR 50 million Working Capital Facility and a
EUR 70 million Liquidity Facility that were renewed in 2023 and
extended by one year in 2024. The first two mature in May
2029 and they both have a one-year extension option. These
facilities also have for the first time a sustainability linkage,
meaning that Elenia’s performance on LTIF, SAIDI and CO
2
emissions will in the future determine the margin that Elenia
pays on these facilities. The five-year Liquidity Facility matures
in May 2029 and it is renewed annually. All of the credit facili-
ties were entirely undrawn at year end of 2024 (as was the case
at the end of 2023).
During 2024 Elenia solicited consent from the secured cred-
itors to make certain amendments to its finance documents to
improve risk management and financing flexibility to reflect
changes in market conditions. The amendments included lower-
ing of the hedging ratio requirement, having more flexibility to
invest excess cash, and the possibility to have dedicated over-
draft facilities and issue Euro commercial money market papers.
Approximately 98% of the secured creditors voted in favour of
the proposal meaning it was duly passed.
Elenia Group has two financial covenants in its financing
agreements: Interest Coverage Ratio (ICR) and Leverage Ratio
(LR). For each relevant period until 31 December 2027 (“the
First Ratio Adjustment period”), the trigger event ratio levels
are 1.46x for ICR and 10.18x for LR and the default ratios are
0.96x for ICR and 11.33x for LR. At the end of 2024, the ICR
and LR were 4.59x and 8.15x, respectively. At end of 2023, the
corresponding levels were 4.53x and 8.73x. Elenia Group is in
compliance with the financial covenants. Elenia always retains
2
nanciers are parties to these agreements. These documents are the Com-
mon Terms Agreement (CTA), the Security Trust and Intercreditor Deed
(STID) and the Master Definitions Agreement (MDA). In 2018, the trigger
event and event of default levels for both ICR and LR were amended in
accordance with the requirements of the Common Terms Agreement
(CTA) to mitigate the impact of the IFRS 15 standard, which became ef-
fective on 1 January 2018 obliging Elenia to change the revenue recog-
nition of connection charges. The change affected only figures such as
EBITDA that are reported in accordance with IFRS, it had no impact on
FAS, taxes, cash flows or regulatory accounting.
4
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
adequate headroom to both financial covenants on a historical
and forward-looking basis.
Employees
Elenia Verkko Oyj number of employees remained the same as
in 2023.
31 Dec 2024
FTE
31 Dec 2023
FTE
Elenia Verkko Oyj
77
77
At the year-end, the total FTE of Elenia Verkko Oyj was 77
(77 in 2023). However, the total employment impact of the
Group and its external subcontractor’s network is approxi-
mately 1,000 people.
In 2024, we continued the safety TUISKU project, which
was originally launched in 2022 to promote and improve the
safety culture in cooperation with our partners. We have
launched the Safety Academy, which further strengthens and
deepens the safety behaviour and activities of our people and
partners.
We continued to systematically develop our people’s com-
petencies and training as the ongoing energy transition changes
in job demands. At the end of the year, we launched the third
Expert Academy training programme with Aalto University. The
first two Expert Academies took place in 2022 and 2023, and
they were developed from the Leader Academy organised in
2020. In addition, we have produced topical Elenia Academy
webinars for our people on topics such as equality, resilience,
recovery and cybersecurity. In our recruitment, we are taking
diversity into account. In our collaboration with educational in-
stitutions, we emphasise utilisation of the latest technology in
our business. We offer internships and thesis opportunities to
students throughout the year.
For more information on Elenia’s personnel, please see our
sustainability report at www.elenia.com.
Acquisitions and Divestments
There were no acquisitions or divestments during the financial
year.
Corporate Governance
Elenia Verkko Oy’s Board of Directors has six members: Tapani
Liuhala (Chairman and board member until end of March),
Jorma Myllymäki (Chairman from April 1st), Ville Sihvola, Jarkko
Kohtala, Tommi Valento and Anne-Marie Malmberg. There
were no other changes to the board during the fiscal year. The
Board of Directors made 10 written resolutions during the fi-
nancial year and no meeting were held. The shareholder of
Elenia Verkko Oyj made 3 written resolutions without holding a
meeting.
Auditor
Elenia Oy’s auditor is Ernst & Young Oy, with Miikka Hietala,
Authorised Public Accountant, as the auditor with principal re-
sponsibility.
Shares
Elenia Verkko Oyj has ninety (90) outstanding shares. Each
share entitles the holder to one vote at the Annual General
Meeting and carries equal rights to dividends.
Sustainability
Please see Elenia’s sustainability report at
www.elenia.com
.
Risk Management
Please see Elenia’s sustainability report at
www.elenia.com
.
Cyber Security and IT
In 2024, geopolitical situation in the Europe highlighted the im-
portance of preparedness against cyber threats within critical
infrastructure. Elenia was active both in internal cyber security
development and in national forums and events such as the
Nordic Pine, a joint exercise with NATO dedicated to deeper
understanding of the energy-hybrid threats and infrastructural
resilience. ISO/IEC 27001 certificate for information security
management was successfully renewed and updated to the lat-
est standard version.
From the operational development viewpoint, preparedness
for reliable demand flexibility was one of the key themes in
Elenia’s digital development. Elenia was the first Finnish DSO to
launch an easy-to-use digital service to enable customers to op-
timize their electricity consumption based on electricity market
price. This development was based on Elenia’s renewal of Auto-
matic Meter Reading technology, providing fast bi-directional
connectivity and near real-time communication.
Relevant events after the Balance Sheet Date
Sanna Murtojärvi has been appointed as Chief People Officer
and member of the management team effective January 1
st
,
2025.
Elenia has entered into an EUR 100 million loan agreement
with the Nordic Investment Bank (“NIB”). The loan will be used
to finance part of Elenia’s investment programme that is de-
signed to improve the security of supply and enable green tran-
sition. The loan has been fully drawn.
Outlook
Electrification and green transition will continue in Finland and
in Elenia’s network. Elenia expects to connect more renewable
energy to its network in 2025. Also, the number of batteries
connected to Elenia’s network is expected to increase in 2025
both at the industrial as well as consumer level. Elenia will con-
tinue to roll out its capex program albeit at a lower pace than
previously envisaged. The network capex is estimated to be ap-
proximately EUR 135 million in 2025.
The Board of Directors’ Proposal for the distribution of
profit
The Board of Directors proposes no dividend to be distributed.
However, the Board of Directors proposes repayment of EUR
41,200,000 of equity from the unrestricted equity reserves (in
Finnish sijoitetun vapaan oman pääoman rahasto). The distribut-
able funds prior to the repayment are approximately EUR
1,603,811,000. There haven’t been any material changes in the
financial standing of the company since the balance sheet date.
The liquidity position is good, and the proposed repayment will
not compromise the company’s liquidity.
5
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
CONSOLIDATED FINANCIAL STATEMENTS 2024
CONSOLIDATED STATEMENT OF PROFIT OR LOSS
for the year ended 31 December 2024
Consolidated statement of profit or loss
EUR 1,000
Note
1 Jan - 31 Dec 2024
1 Jan - 31 Dec 2023
Revenue
2.1.1
Other operating income
2.2.1
Materials and services
-69,792
-73,792
Employee benefit expenses
2.3.3
-4,213
-3,809
Depreciation, amortisation and impairment
3
-97,771
-92,854
Other operating expenses
2.3.1
-33,909
-27,292
Operating profit
Finance income
Finance costs
-52,917
-48,495
Finance income and costs
4.1
-50,771
-46,164
Profit before tax
Income tax
6.1.1
-20,817
-18,534
Profit for the year
CONSOLIDATED STATEMENT
OF COMPREHENSIVE INCOME
for the year ended 31 December 2024
EUR 1,000
1 Jan - 31 Dec 2024
1 Jan - 31 Dec 2023
Profit for the year
Other comprehensive income
Other comprehensive income not to be reclassified to
profit or loss in subsequent years:
Re-measurement gains on defined benefit plans
-13
Income tax effect
-13
Other comprehensive income / (loss) for the year after tax
-10
Total comprehensive profit for the year
The accompanying notes are an integral part of these con-
solidated financial statements.
6
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
CONSOLIDATED STATEMENT
OF FINANCIAL POSITION
as at 31 December 2024
Consolidated statement
of financial position
EUR 1,000
Note
31 Dec 2024
31 Dec 2023
Assets
Non-current assets
Property, plant and equipment
3.1
Goodwill
3.2
Intangible assets
3.2
Right-of-use assets
3.1, 3.3
Other non-current financial assets
Other non-current receivables
Deferred tax assets
6.1.2
Total non-current assets
Current assets
Trade receivables
2.1.4
Other current receivables
2.1.4
Cash and cash equivalents
Total current assets
Total assets
EUR 1,000
Note
31 Dec 2024
31 Dec 2023
Equity and liabilities
Equity
Share capital
4.4
Unrestricted equity
4.4
-605,396
-548,843
Retained earnings
4.4
Total equity
-573
-27,051
Non-current liabilities
Loans from financial institutions
4.2
Bonds and notes
4.2
Lease liabilities
3.3
Employee benefit liability
6.2
Provisions
2.3.4
Liabilities related to contracts with custom-
ers
2.1.3
Deferred tax liabilities
6.1.2
Total non-current liabilities
Current liabilities
Lease liabilities
2.3.2, 3.3
Trade payables
2.3.2
Liabilities related to contracts with custom-
ers
2.1.3
Other current liabilities
2.3.2
Total current liabilities
Total equity and liabilities
The accompanying notes are an integral part of these consolidated financial statements.
7
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 31 December 2024
Consolidated statement
of cash flows
1 000 EUR
1 Jan - 31 Dec
2024
1 Jan - 31 Dec
2023
Operating activities
Profit for the year
Adjustments to reconcile profit to net cash flows
Depreciation, amortisation and impairment
Gains and losses on the disposal of non-current assets
-63
Finance income
-2,146
-2,331
Finance costs
Taxes
Other adjustments
-33
Other short-term and low value rental expenses
Working capital adjustments
Increase (+) / decrease (-) in trade and other current liabilities
Increase (-) / decrease (+) in trade and other current receiva-
bles
-8,349
Increase (+) / decrease (-) in provisions
-196
Interests received
Interest and financial expenses paid
-51,552
-46,436
Interest paid on lease liabilities
-12
-13
Taxes paid
-2,506
Net cash flows from operating activities
1 000 EUR
1 Jan - 31 Dec
2024
1 Jan - 31 Dec
2023
Investing activities
Capital expenditure
-129,948
-139,631
Changes in investments
Net cash flows used in investing activities
-129,798
-139,625
Financing activities
Proceeds from long-term borrowings
Equity repayment
-100,000
-134,000
Repayment of lease liabilities
-234
-414
Group contributions received/paid
Net cash flows from financing activities
-82,898
-13,711
Net increase in cash and cash equivalents
-17,416
Cash and cash equivalents at 1 January
Cash and cash equivalents at 31 December
Cash and cash equivalents comprises of cash balance at bank accounts.
The accompanying notes are an integral part of these consolidated financial state-
ments.
8
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Consolidated statement
of changes in equity
for the year ended 31 December 2024
Unrestricted equity
EUR 1,000
Share capital
Reserve for invested unre-
stricted equity
Common control reserve
Retained earnings
Total equity
Equity at 1 January 2024
-2,206,243
-27,051
Profit for the year
Other components of comprehensive income (adjusted by tax ef-
fect)
Total comprehensive income for the year
Transactions with shareholders
Group contributions
Return of equity
-56,553
-56,553
Total transactions with shareholders
-56,553
-37,660
Equity at 31 December 2024
-2,206,243
-573
for the year ended 31 December 2023
Unrestricted equity
EUR 1,000
Share capital
Reserve for invested unre-
stricted equity
Common control reserve
Retained earnings
Total equity
Equity at 1 January 2023
-2,206,243
-100,041
Profit for the year
Other components of comprehensive income (adjusted by tax ef-
fect)
-10
-10
Total comprehensive income for the year
Transactions with shareholders
Group contributions
Total transactions with shareholders
Equity at 31 December 2023
-2,206,243
-27,051
The accompanying notes are an integral part of these consolidated financial statements.
Changes in the equity are explained in more details in Note 4.4.
9
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
1 GROUP ACCOUNTING POLICIES
1.1 GENERAL INFORMATION
ciled in Tampere. Address is
Elenia Verkko Oyj’s parent company is
, having its
registered office at Patamäenkatu 7, Tampere. The ultimate par-
ent of the Group is
embourg.
The consolidated financial statements of
") are consolidated in the financial
statements of Elenia Oy ("Elenia Group"), available at the fol-
lowing address: Patamäenkatu 7, 33900 Tampere. Elenia Group
is the owner and operator of an electricity distribution network
(Elenia Verkko Oyj, ’Elenia Networks’) and it also has a customer
service business, construction business and intercompany ser-
vices (Elenia Oy, ’Elenia Services’).
1.1.2020.
The Board of Directors approved the consolidated financial
statements on 13 March 2025.
Accounting policies
have been described in the
relevant note and can be recognized from
character:
Significant judgements, estimates and assump-
tions made by the Group management
have
been presented in the relevant note and can be
recognized from character:
Risk management principles
have been de-
scribed in the relevant note and can be recog-
nized from character:
either to approve, reject or change the consolidated financial
statements in the Annual General Meeting.
1.2 BASIS OF PREPARATION
The consolidated financial statements for the year ended 31
December 2024 have been prepared in accordance with the In-
ternational Financial Reporting Standards (IFRS) and their inter-
pretations (IFRIC) approved for application within the European
Union (EU). The consolidated financial statements are compliant
with the provisions of the Finnish Accounting Act and other
regulations governing the preparation of financial statements in
Finland.
The consolidated financial statements have been prepared
based on a historical cost. All Group companies use euro
(“EUR”) as their operating currency and all figures are reported
in euros. The consolidated financial statements are presented in
thousands of euros. There may be rounding discrepancies in the
sum totals due to the presentation method used.
1.3 CHANGES IN ACCOUNTING POLICIES AND DISCLO-
SURES
The Group applied for the first-time certain standards and
amendments which are effective for annual periods beginning
on or after 1 January 2024. The nature of each new standard
and amendment adopted by the Group has been described in
the relevant note. New standards, amendments and interpreta-
tions not material for the Group have been described in Note 5.
1.4 SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES
AND ASSUMPTIONS
The preparation of consolidated financial statements requires
management to make judgements, estimates and assumptions
that affect the reported amounts of assets, liabilities, revenues,
expenses and the accompanying disclosures and the disclosure
of contingent liabilities.
Estimates and assumptions are based on the management’s
best judgement on the reporting date. Estimates are made
based on historical experience and expectations of future
events that are considered probable on the reporting date.
However, uncertainty about these assumptions and estimates
could result in outcomes that require an adjustment to the car-
rying amount of assets and liabilities affected in future periods.
The Group’s significant accounting judgements, estimates and
assumptions are described either below or in the relevant notes.
10
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
1.4.1 Judgements
The preparation of consolidated financial statements requires
management to make judgements in applying the accounting
principles. The significant judgements made by the Group man-
agement have been presented in the relevant note except for
the going concern which is described below.
GOING CONCERN
The consolidated financial statements are prepared on a going
concern basis. The Board of Directors has noted that the Group
made a profit before tax for 2024 of EUR 84 901 thousands
and has a net equity of EUR -573 thousands as at 31 Decem-
ber2024.
The Group's management has made an assessment of the
Group's ability to continue as a going concern and is satisfied
that the Group has sufficient resources to continue in business
for the foreseeable future. The management's assessment is ba-
sed on the following:
•
The Group has issued bonds under the EUR 3 billion
EMTN programme. As at 31 December 2024, the Group
has utilized 1 171 million out of this programme. In Febru-
ary 2020 Elenia Verkko Oyj (Elenia Finance Oyj) issued a
new EUR 500.0 million benchmark bond maturing in 2027
which was oversubscribed several times, reflecting strong
investor demand for the securities issued by Elenia.This
programme is supported by strong credit rating of BBB
with based on S&P Global Ratings' assessment.
•
The Group has sufficient liquidity based on its cash posi-
tion and undrawn credit facilities of EUR 370 million from
a syndicate of international banks (as fully described in
Note 4.2.9).
CLIMATE CHANGE
In accordance with the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD), Elenia's manage-
ment has assessed the financial risks and opportunities related
to climate change to Elenia's business. The main risks are re-
lated to extreme weather events and the opportunities are re-
lated to the green transition. The impact of extreme weather
events on Elenia's business is mitigated by Elenia's significant
investment in a weatherproof underground network between
2012 and 2023. These investments will continue until at least
2036, for example increasing the level of underground cabling
to around 90%, which will further reduce the impact of extreme
weather events. In addition, the electricity network regulation
mitigates the economic impact of both risks and opportunities
for Elenia. For these reasons, the impact of climate change risks
on Elenia's financial statements is not material.
1.4.2 Estimates
Estimates are based on the management’s best judgement on
the reporting date. Estimates are made on the basis of historical
experience and expectations of future events that are consid-
ered probable on the reporting date. However, actual results
and timing may differ from these estimates. The Group’s signifi-
cant accounting estimates have been described in the relevant
note.
11
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
2 OPERATING PROFIT
2.1 REVENUE AND TRADE AND OTHER CURRENT
RECEIVABLES
2.1.1 Contracts with customers: revenue recognition and
payment terms
Revenue from the distribution of electricity is recognised at
the time of delivery. Revenue from customer service opera-
tions and other revenue, for example contracting income is
recognised in the period in which such services are rendered.
Connection fees paid by customers for joining an electric-
ity network are recognised as revenue in the consolidated
statement of profit or loss. Until the end of 2017 revenue
from new connections was recognised immediately after sign-
ing of the contract or completion of the physical distribution
network connection. As a result of the implementation of IFRS
15 standard, from 1 January 2018 onwards the new connec-
tion revenue has been recognised over a period of 30 years for
the electricity network connections. The time period is in line
with the depreciation period of the connection assets.
Electricity network connection fees, which have been paid
by the customers before 2008, must be refunded net of demo-
lition costs, if the customer wants to terminate the electricity
connection. Similar refunding obligation applies to all district
heating connection fees. A provision has been recorded for fu-
ture refunds.
The Group pays to the customers voluntary outage com-
pensations due to interruption of over 6 hours in the electric-
ity distribution. These compensations are recognised as a re-
duction of revenue at a point in time and included in the item
"distribution of electricity" in the disaggregation of revenue -
table below. Outage compensations in accordance with the
Electricity Market Act, which are paid to the customers due to
interruption of over 12 hours in the electricity distribution, are
recognised as other operating expenses (Note 2.3.1).
Payments from all the Group's contracts with customers
are generally due within 14 days and consideration for ser-
vices are paid in cash. Contracts do not have any significant fi-
nancing components.
ACCOUNTING POLICY
2.1.2 Disaggregation of revenue
Group revenue consists of revenue from the distribution of
electricity, connection fees paid by the customers for joining an
electricity network and other revenues consist mainly of con-
tracting income.
2.1.3 Liabilities related to contracts with customers
EUR 1,000
2024
2023
Non-current liabilities related to contracts with
customers
56,095
47,663
Current liabilities related to contracts with cus-
tomers
2,184
1,825
Total
58,280
49,488
Liabilities related to contracts with customers include the un-
recognised part of new connection revenue for the electricity
network. Revenue will be recognised over a period of next 30
years for the electricity network connections. The amount re-
ported as current liabilities will be recognized during the next
12 months.
REVENUE BY TYPE OF SERVICE
EUR 1,000
2024
2023
Distribution of electricity
336,680
313,128
Connection fees
2,003
1,657
Other revenues
981
1,821
Total
339,663
316,606
TIMING OF REVENUE RECOGNISION
EUR 1,000
2024
2023
Transferrred at a point in time
337,661
314,949
Transferred over time
2,003
1,657
Total
339,663
316,606
12
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
2.1.4 Trade and other current receivables
TRADE RECEIVABLES
Trade receivables are recorded on the balance sheet at
their transaction price. Impairment is recorded on trade re-
ceivables when there is evidence that the Group will not be
able to collect all amounts due according to the original
terms of the agreements. The Group records impairment
based on lifetime expected credit losses from all trade re-
ceivables incurred as a result of transactions subject to
IFRS15. The impairment amount is measured as the differ-
ence between the asset’s original carrying value and the es-
timated future cash flows.
Trade receivables also include invoiced sales revenue
based on estimates.
ACCOUNTING POLICY
CREDIT RISK
Invoicing for electricity distribution services is based on
measured consumption and the distribution tariffs specified
in the public electricity network price list.
The invoicing period may be one month or two months.
In the event that a customer fails to pay the invoice, the
electricity distribution company has the right to discontinue
the supply of electricity after sending the required collec-
tion letters. Also the wide fragmentation of the customer
base reduces the credit risk.
DISTRIBUTION VOLUME AND PRICE RISKS
Electricity distribution operations do not involve particular
volume or price risks in the medium term due to being sub-
ject to reasonable return under electricity distribution li-
cense. In the short term changes in distribution volumes
and electricity prices has an impact on revenues and oper-
ating expenses respectively.
RISK MANAGEMENT
TRADE AND OTHER CURRENT RECEIVABLES
EUR 1,000
2024
2023
Trade receivables
15,668
19,331
Accrued income and prepaid expenses
44,718
43,137
Group contribution receivable
18,893
17,336
Other current receivables
229
232
Total trade and other receivables
79,507
80,036
BREAK-DOWN OF ACCRUED INCOME AND PREPAID EXPENSES
EUR 1,000
2024
2023
Sales accruals
43,950
42,474
Accrued financial items (prepayments)
560
564
Other accrued income and receivables
208
99
Total accrued income
44,718
43,137
TRADE RECEIVABLES
The Group's trade receivables at the end of 2024 were EUR
15.7 million (2023: EUR 19.3 million). EUR 0,0 million collateral
securities were received for trade receivables (2023: EUR 0.0
million).
CHANGE IN EXPECTED CREDIT LOSSES
EUR 1,000
2024
2023
Expected credit loss 1 Jan
655
662
Additions
1033
764
Realized credit losses
-853
-771
Expected credit loss 31 Dec
835
655
IMPAIRMENT OF TRADE RECEIVABLES
Group records lifetime expected credit losses from all trade re-
ceivables incurred as a result of transactions subject to IFRS15.
Trade receivables do not contain any significant financing com-
ponent.
However, applying the impairment requirements of IFRS 9
has had an impact on the method used in calculation of the
credit loss allowance for trade receivables, but the amount of
credit loss allowances has not changed remarkably. The Group
has applied the simplified approach and recorded lifetime ex-
pected losses on all trade receivables.
The amount of Credit loss allowance for trade receivables is
checked and updated quarterly and it is recognised with similar
principals both in IFRS- and FAS-reporting. Uncertain receiva-
bles are booked to separate book-keeping account in Group re-
porting. The calculation of the amount of credit loss reserve is
based on the relative proportion of credit losses calculated from
historically realized level. The customers are segmented to pri-
vate and company customers to be able to take into account
the differences between these customer groups in the calcula-
tion. Generally, trade receivables are written-off on a monthly
basis based on customers' credit rating level and payment his-
tory.
13
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
BREAKDOWN AND IMPAIRMENT OF TRADE RECEIVABLES BY AGE
31 Dec 2024
Trade receivables
EUR 1,000
Undue
1-90 days
91-180 days
Over 180 days
Total
Trade receivables by age
11,458
3,585
491
968
16,502
Expected credit loss rate, private customers
0.1 %
6.8 %
35.1 %
54.0 %
Expected credit loss, private customers
-10
-169
-134
-259
-573
Expected credit loss rate, company customers
0.1 %
2.4 %
30.1 %
46.5 %
Expected credit loss, company customers
-3
-26
-28
-206
-262
Total expected credit losses
-13
-195
-162
-465
-835
Total trade receivables
11,445
3,390
329
503
15,668
31 Dec 2023
Trade receivables
EUR 1,000
Undue
1-90 days
91-180 days
Over 180 days
Total
Trade receivables by age
14,596
4,267
400
722
19,985
Expected credit loss rate, private customers
0.1 %
6.5 %
34.4 %
51.8 %
Expected credit loss, private customers
-13
-177
-109
-126
-425
Expected credit loss rate, company customers
0.1 %
2.4 %
23.3 %
35.7 %
Expected credit loss, company customers
-3
-37
-20
-171
-231
Total expected credit losses
-16
-214
-128
-297
-655
Total trade receivables
14,580
4,053
272
425
19,331
14
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
2.2 OTHER OPERATING I NCOME
ACCOUNTING POLICY
2.2.1 Other operating income
Other operating income includes income from non-operat-
ing activities, such as income from trade receivables collec-
tion and from sales of used fixed assets, insurance compen-
sation and rental income.
Government grants relating to the other purpose than
the purchase of property, plant and equipment are recog-
nised as other income in the consolidated statement of
profit or loss for the period in which the expenses relating
to the grant are incurred and in which the decision on the
grant is received.
OTHER OPERATING INCOME
EUR 1,000
2024
2023
Rental income
52
0
Indemnities
557
433
Income from the trade receivables collection
1,019
943
Gains on sales of fixed assets
63
0
Other operating income
3
127
Total
1,694
1,504
2.3 OTHER OPERATING EXPENSES AND RELATED
LIABILITIES
2.3.1
Other operating expenses
Outage compensations
Outage compensations in accordance with the Electricity
Market Act, which are paid to the customers due to inter-
ruption of over 12 hours in the electricity distribution, are
recognised as other operating expenses and included in the
item "Outage compensation costs" in the table below. The
Group pays to the customers voluntary outage compensa-
tions due to interruption of over 6 hours in the electricity
distribution. These compensations are recognised as a re-
duction of revenue at a point in time (Note 2.1.1).
Research and development costs
Research costs are expensed as incurred. Development
expenditures on an individual project are recognised as an
intangible asset only when the Group can demonstrate:
●
The technical feasibility of completing the in-
tangible asset so that the asset will be availa-
ble for use or sale
●
Its intention to complete and its ability to use
or sell the asset
●
How the asset will generate future economic
benefits
●
The availability of resources to complete the
asset
●
The ability to measure reliably the expenditure
during development
Following initial recognition of the development ex-
penditure as an asset, the asset is carried at cost less any
accumulated amortisation and accumulated impairment
losses. Amortisation of the asset begins when development
is complete and the asset is available for use. It is amortised
over the period of expected future benefit. During the pe-
riod of development, the asset is tested for impairment an-
nually. The Group has not recognised any development
expenditures as an intangible asset.
ACCOUNTING POLICY
OTHER OPERATING EXPENSES
EUR 1,000
2024
2023
Lease expenses
-531
-489
External services
-3,152
-3,134
IT and communication expenses
-4,141
-3,768
Research and development costs
250
234
Marketing and communications
-152
-81
Insurances
-312
-252
Mailing expenses
-306
-173
Other personnel expenses
-272
-238
Travelling expenses
-88
-84
Outage compensation costs
-4,804
-726
Elenia service expenses
-16,995
-15,752
Other expenses
-3,406
-2,830
Total
-33,909
-27,292
Research and development costs mainly include costs of re-
search projects that do not meet the criteria for capitalization.
15
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
AUDIT FEES
EUR 1,000
2024
2023
Auditing fees
-233
-160
Fees for tax services
-4
-6
Fees for other services
-31
-15
Total
-268
-181
Ernst & Young was appointed as the auditor until the Annual
General Meeting held in the 2025 reporting period.
AUDITING FEES
Auditing fees include fees for auditing the consolidated financial
statements and interim accounts and for auditing the parent
company and subsidiaries. Fees for tax services include fees
charged for tax advice. Fees for other services consist of other
assignments.
TRADE AND OTHER CURRENT PAYABLES
EUR 1,000
2024
2023
Short-term financial lease liabilities
237
111
Trade payables
8,497
4,380
Accrued expenses
Employee benefits expenses
1,768
1,688
Interest expenses
16,225
16,694
Other accrued expenses
50,075
42,049
Liabilities related to contracts with customers
2,184
1,825
Other liabilities
VAT liability
14,458
15,509
Energy taxes
16,816
19,069
Prepayments received
2,561
3,880
Equity repayment liability
0
43,447
Other liabilities
1,568
1,881
Total
114,388
150,533
2.3.2 Trade and other current payables
According to the management’s estimate, the fair value of trade
and other payables does not materially deviate from the balance
sheet value.
Trade payables are non-interest bearing and are normally
settled on 14-30 days terms. Other accrued expenses comprise
mainly of deferred material and service purchases as well as de-
ferred financing items.
2.3.3 Employee benefits expense
EMPLOYEE BENEFIT EXPENSES
EUR 1,000
2024
2023
Salaries and remuneration
-3,523
-3,166
Pensions
Defined contribution plans
-630
-568
Social security costs
-60
-75
Total
-4,213
-3,809
The total remuneration paid by Elenia Verkko to its employees
consists of salaries, fringe benefits and short-term performance
bonuses.
EUR 1,000
2024
2023
Salaries and remuneration paid to other
key members of the management
Salaries and other short-term employee
benefits
228
261
Other long-term employee benefits
53
36
Pension expenses related to salaries and
employee benefits
51
53
Total
332
351
Salaries and remuneration were not paid to CEO in 2024 and
2023.
Elenia Group applies two incentive plans. All employees of the
Elenia Group are included within the scope of the short-term
annual performance bonus plan; in addition the key members of
16
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
the management are included by a long-term incentive plan.
Both of the plans are company-specific but the principles and
criteria are mainly uniform. Companies’ Boards of Directors ap-
prove both the criteria as well as payment under the plans. The
total remuneration paid by the Group to its employees consists
of salaries, fringe benefits and short-term performance bonuses.
All employees of the Group are included within the scope of the
performance bonus scheme.
The annual performance bonuses (i.e. short-term annual
performance bonus plan) are based for example on the Group
profitability, work safety and customer or personnel satisfac-
tion. Also the achievement of the individual key objectives in
employee’s own responsibility area is taken into consideration.
The key members of the management personnel of Elenia
Group companies are included within the scope of the long-
term incentive plan. The purpose of the plan is to align the in-
terests of the management with those of the shareholders in or-
der to improve the competitiveness of the business and pro-
mote long-term financial success. Key management includes
management team and Board members of Elenia Oy.
The long-term incentive plan is measured over a three year
period and potential remunerations are paid during the follow-
ing three years after the earnings period. The payment is made
only if the goals have been achieved also during the year pre-
ceding the payment. In 2024, the remunerations related to the
2019-2021, 2020-2022 and 2021-2023 programmes were
paid. During 2024 there were three programmes on-going:
2022-2024, 2023-2025 and 2024-2026.
During 2024 EUR 28 thousand (2023: EUR 43 thousand)
was paid out related to the long-term incentive plan in Elenia
Verkko Oyj.
The key members of the management have no share or op-
tion based incentive schemes. Five of the key management per-
sons of Elenia Oy and Elenia Verkko Oyj have invested into El-
ton Investment S.à r.l. which is the ultimate owner of Elenia Oy.
The management investment is channelled through a manage-
ment owned holding company Manco Investment Oy, which
owns approximately 0.3% of Elton Investment S.à r.l. after the
arrangement. The equity investment has been made at fair mar-
ket values and it therefore is not a compensation plan. The eq-
uity ownership forms an additional tool for retaining key man-
agement members and therefore promotes continuity, and it
also signals strong commitment from the senior management
into the long-term development of Elenia.
2.3.4 Provisions
ACCOUNTING POLICY
PROVISIONS
Provisions are recognised when the Group has a present le-
gal or constructive obligation as a result of past events to a
third party, provided that it is probable that the obligation
will be realised and the amount can be reliably estimated.
SIGNIFICANT ACCOUNTING JUDGEMENTS, ESTIMATES
AND ASSUMPTIONS
PROVISIONS
Electricity network connection fees, which have been paid
by the customers prior to 2008, must be refunded net of
demolition costs, if the customer wants to terminate the
electricity connection.
A provision for refundable connection fees for electric-
ity network has been calculated by discounting estimated
future annual connection fee refunds to their present value.
The calculation is based on the management’s estimate of
the volume and timing of refundable connection fees. The
historical level of refunded connection fees is taken into ac-
count while compiling the calculations and the discount
rates applied correspond to the rates used in impairment
testing of goodwill for network.
PROVISIONS
2024
EUR 1,000
Provision for refunds of
connection fees
Provisions at 1 January
6,521
Increase
113
Use of provisions
-309
Provisions at 31 December
6,325
PROVISIONS
2023
EUR 1,000
Provision for refunds of
connection fees
Provisions at 1 January
6,119
Decrease
994
Use of provisions
-592
Provisions at 31 December
6,521
17
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
3
INVESTMENTS AND LEASE COMMITMENTS
3.1 PROPERTY, PLANT AND EQUIPMENT
Property, plant and equipment comprise mainly electricity
distribution networks, machinery, equipment and buildings.
Property, plant and equipment are stated at original ac-
quisition cost less accumulated depreciation and accumu-
lated impairment losses, if any (see Note 3.2 Accounting
policy for Impairment of non-financial assets). The original
acquisition cost includes expenditure that is directly at-
tributable to the acquisition of an item. Subsequent costs
are included in the asset’s carrying amount or recognised as
a separate asset, as appropriate, only when it is probable
that future economic benefits associated with the item will
flow to the Group and the acquisition cost of the item can
be reliably measured.
When a property, plant and equipment asset no longer
has any expected revenue streams, the asset is dismantled
and the remaining carrying value is recognised as an ex-
pense under depreciation, amortisation and impairment.
Acquired assets on the acquisition of a new subsidiary
are stated at their fair values at the date of acquisition.
The same principles are followed as in the Elenia Group
and have been followed before the restructuring and the
formation of the Elenia Network Group. Until December
31, 2018 land use rights for underground cables have been
capitalized in intangible assets for other long-term expendi-
ture, but those rights have been capitalized in property,
plant and equipment as networks as of January 1, 2019.
According to the estimate of the Group's management,
they are not treated as lease contracts under IFRS 16.
All other repairs and maintenance costs are charged to
the consolidated statement of profit or loss during the fi-
nan-cial period in which they are incurred.
Land and water areas are not depreciated since they have
indefinite useful lives. Depreciation on other assets is cal-
culated on a straight-line basis over the estimated useful
lives of the assets as follows:
Buildings and structures
15-50 years
Electricity distribution network
10-30 years
Electricity transmission network
25-40 years
Machinery and equipment
3-30 years
Right-of-use assets are depreciated on a straight-line basis
over the lease term between the commencement date of
the lease and the end of the lease term or using the esti-
mated useful life of the asset. Leases of buildings and vehi-
cles generally have lease terms between 3 and 5 years.
The assets’ residual values and useful lives are reviewed
and adjusted, if appropriate, at each financial year end. An
asset’s carrying amount is written down immediately to its
recoverable amount if the as set’s carrying amount is
greater than its estimated recoverable amount.
Gains and losses on the sales of property, plant and
equipment are recorded as the difference between the sell-
ing price and carrying value and recognised in the consoli-
dated statement of profit or loss under other operating in-
come or expenses.
Government grants
Government grants relating to the purchase of property,
plant and equipment are recognised by reducing the book
value of the asset they relate to when the decision on the
grant has been received. The grants are thus reflected in
the form of lower depreciation over the useful life of the
asset.
Borrowing costs
Borrowing costs directly attributable to the acquisition or
construction of an asset that necessarily takes a substantial
period of time to get ready for its intended use or sale are
capitalised as part of the cost of the asset. All other bor-
rowing costs are expensed in the period in which they oc-
cur. Borrowing costs consist of interest and other costs
that an entity incurs in connection with the borrowing of
funds.
ACCOUNTING POLICY
18
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
PROPERTY PLANT AND EQUIPMENT
Land and wa-
ter areas
Buildings
Networks
Machinery
and equip-
ment
Other tangible
assets
Prepayments
Total
EUR 1,000
Cost at 1 January 2024
2,175
6,837
2,799,569
199,145
56
19,264
3,027,046
Additions
128
0
106,607
24,986
0
222
131,943
Disposals
0
0
-4,137
0
0
0
-4,138
Transfers between balance sheet items
33
0
7,235
3
0
-7,270
0
Cost at 31 December 2024
2,335
6,837
2,909,273
224,134
56
12,216
3,154,851
Accumulated depreciation, amortisation and impairment at 1 January 2024
0
-6,127
-1,176,719
-154,504
-56
-1,337,406
Depreciation and amortisation for the year
0
-154
-85,275
-7,243
0
-92,672
Accumulated depreciation and amortisation on disposals
0
0
4,050
0
0
4,050
Impairment for the year*
-1
0
-1,916
0
0
-1,917
Accumulated depreciation, amortisation and impairment at 31 December 2024
-1
-6,281
-1,259,860
-161,746
-56
-1,427,945
Book value at 31 December 2024
2,334
556
1,649,413
62,387
0
12,216
1,726,907
Book value at 31 December 2023
2,174
710
1,622,850
44,641
0
19,264
1,689,639
*Networks' impairment for the year relates to the demolition of electricity networks.
Land and wa-
ter areas
Buildings
Networks
Machinery
and equip-
ment
Other tangible
assets
Prepayments
Total
EUR 1,000
Cost at 1 January 2023
2145
6,632
2,692,192
175,228
56
20,146
2,896,399
Additions
33
7
112,896
23,952
0
-472
136,415
Additions due to revaluations
0
205
0
0
0
0
205
Disposals
0
-7
-5,519
-36
0
0
-5,561
Transfers between balance sheet items
-3
0
0
0
0
-410
-412
Cost at 31 December 2023
2,175
6,837
2,799,569
199,145
56
19,264
3,027,046
Accumulated depreciation, amortisation and impairment at 1 January 2023
-1
-5,960
-1,097,460
-149,637
-55
-1,253,113
Depreciation and amortisation for the year
0
-167
-82,428
-4,867
-1
-87,462
Accumulated depreciation and amortisation on disposals
0
0
5,519
0
0
5,519
Impairment for the year*
0
0
-2,350
0
0
-2,351
Accumulated depreciation, amortisation and impairment at 31 December 2023
-1
-6,127
-1,176,719
-154,504
-56
-1,337,407
Book value at 31 December 2023
2,174
710
1,622,850
44,641
0
19,264
1,689,639
Book value at 31 December 2022
2,144
671
1,594,732
25,591
1
20,146
1,643,285
19
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
3.2
INTANGIBLE ASSETS
Intangible assets, except goodwill and intangible assets
with indefinite life, are stated at original acquisition cost
less accumulated amortisation and impairment losses if
applicable and amortised on a straight-line method over
their expected useful lives.
Computer software and licenses
Acquired computer software licenses are capitalised
based on the costs incurred from the acquisition and im-
plementation of the software. These costs are amortised
over their estimated useful lives (three to five years).
Costs associated with developing or maintaining com-
puter software are recognised as an expense as incurred.
IFRS interpretations committee issued an agenda decision
in April 2021 on configuration and customization costs in
a cloud computing arrangement. In the agenda decision
the committee considered whether an intangible asset ac-
cording to IAS 38 can be recognised related to configura-
tion and customization costs of a cloud-based software
and if not, how these costs should be accounted for.
Licenses concerning cloud-based software can only be
capitalized if the group has the right and ability to take
possession of the software and run it on own servers.
Otherwise, the license is considered to be a service con-
tract, and costs are expensed when incurred. Concerning
the implementation costs of a cloud-based software only
customization related costs can be capitalized if they cre-
ate and asset that is distinct, controlled by the group and
it creates economic benefits that flow to the group. The
part of the implementation costs that is not capitalized is
expensed when incurred.
Compensation paid to landowners
One-time compensation payments paid to landowners for
inconvenience and damage caused by the network com-
pany’s overhead lines, cables and equipment are capital-
ized.
Until December 31, 2018 land use rights for underground
cables have been capitalized in intangible assets for other
long-term expenditure, but those rights have been capital-
ized in property, plant and equipment as networks as of
January 1, 2019. According to the estimate of the Group's
management, they are not treated as lease contracts under
IFRS 16. Recurring annual compensation payments are rec-
ognised as an expense on the consolidated statement of
profit or loss under other operating expenses
.
Contractual customer relationships
Contractual customer relationships acquired in a business
combination are recognised at fair value on the acquisition
date. The contractual customer relations have a finite use-
ful life and are carried at acquisition cost less accumulated
amortisation and assessed for impairment whenever there
is an indication that the intangible asset may be impaired.
Amortisation is calculated using the straight-line method
over the useful economic life of the customer relationship.
Goodwill
Goodwill represents the excess of the cost of an acquisition
over the fair value of the Group’s share of net assets of the
acquired subsidiary/associate at the date of acquisition.
Goodwill on acquisitions of subsidiaries is included in intan-
gible assets. Goodwill is tested annually for impairment and
carried at acquisition cost less accumulated impairment
losses. Impairment losses on goodwill are not reversed.
Amortisation periods for intangible assets
Computer software and licenses
3-5 years
Customer relationships
20 years
Compensation paid to landowners
10-30 years
The assets’ useful lives are reviewed and adjusted, if appro-
priate, at each financial year end.
Impairment of non-financial assets
Besides the information given below, disclosures relating to
impairment of non-financial assets are also provided in the
note 3.1 concerning property, plant and equipment.
The carrying values for individual assets are assessed at
each reporting date to determine whether there is any indi-
cation of impairment. When considering the need for im-
pairment, the Group assesses whether events or changes in
circumstances indicate that the carrying amount may not
be recoverable. An impairment loss is recognised if the car-
rying value of an asset or cash-generating unit exceeds its
recoverable amount. An asset’s recoverable amount is the
higher of an asset’s or cash-generating unit’s fair value less
costs to sell and its value in use.
An impairment loss relating to property, plant and
equipment and intangible assets other than goodwill is re-
versed in the event of a change in circumstances that re-
sults in the asset’s recoverable amount changing from the
time the impairment loss was recorded. An impairment loss
recorded on goodwill is not reversed under any circum-
stances.
Intangible assets with indefinite useful lives are tested
for impairment annually as at 31 December either individu-
ally or at the cash-generating unit level, as appropriate, and
when circumstances indicate that the carrying value may be
impaired.
Goodwill is tested for impairment annually as at 31 De-
cember and when circumstances indicate that the carrying
value may be impaired. In assessing value in use, the esti-
mated future cash flows expected to be derived from a
cash-generating unit are discounted to their present value.
The financial projections used in the calculations are based
on business plans approved by management.
ACCOUNTING POLICY
20
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
SIGNIFICANT ACCOUNTING JUDGEMENTS
GOODWILL IMPAIRMENT TESTING
The Group tests goodwill annually for impairment. The re-
coverable amounts of cash-generating units are based on
estimated future cash flows. Preparation of these estimates
requires management to make assumptions relating to fu-
ture cash flows. The main variables in determining cash
flows are the discount rate and the assumptions and esti-
mates used.
The Group has conducted a sensitivity analysis of the
effects of the key assumptions underlying the impairment
testing on the test results.
E
STIMATES AND ASSUMPTIONS
IMPAIRMENT TESTING OF GOODWILL
Goodwill has been allocated to the cash generating unit, Net-
work business segment, of EUR 418 million. Projected cash
flows have been assessed based on long-term operational plans,
which have been approved by the senior management and the
Board of Directors. Cash flows have been discounted to deter-
mine the value in use. The discount rate applied (pre-tax) re-
flects the risk profile of the business.
The company performed its annual impairment test in Janu-
ary 2025. Due to the regulated and stable nature of the elec-
tricity distribution business, the basis for cash flow projections
is the long-term business plan covering the period 2024-2055
which has been approved by the Board of Directors. A volume
growth of approximately 0.5% p.a. has been incorporated for
the forecast period. The discount rate applied is 6.0% (pre-tax),
calculated based on relevant studies and the Energy Authority's
communication regarding the required rate of return in the dis-
tribution business (in 2023 the applied discount rate was 6.0%).
Long term capital expenditure plans have been prepared to
meet the security of supply requirements in line with the Elec-
tricity Market Act as well as the expected requirements of elec-
trification as per the government’s national net zero emission
commitment of 2035.
The projected cash flows reflect the regulatory methods
confirmed by the Energy Authority for the period 2024-2031,
but based on the current understanding of the company senior
management and the Board of Directors as well as public com-
munication by other system operators and stakeholders, the
current regulatory methods do not enable the execution of the
investments required by the electrification of the society, nor
the security of supply investments required by the Electricity
Market Act (588/2013) within the required period by the end of
2036. Therefore, Elenia and other DSOs have appealed the con-
firmed regulatory methods to the market court. As a result, the
impairment test calculation has been performed using scenarios
taking into account the impacts of the alternative outcomes of
the court process on the company’s business plan. One scenario
assumes a ruling in favor of the industry with regards to the
definition of the asset base, and the other scenario, a ruling
against the industry resulting in cash flow projections based on
the regulatory methods confirmed by the Energy Authority on
December 29, 2023 with no changes. The value in use has been
calculated based on these outcomes, weighting them equally
(50%/50%). This reflects the view of the senior management
and the Board of Directors on the company’s recoverable value
Based on the analysis in January 2025 there is a headroom of 1
807 million euros.
SENSITIVITY TO CHANGES IN ASSUMPTIONS IN DISCOUNT
RATE
Discount rate of the projected cashflows is based on the actual
risk-free interest rates of the valuation timing and the parame-
ters based on the Energy Authority's communication regarding
the required rate of return in the distribution business. The dis-
count rate (pre-tax) increasing by 3.4% (342 bps) would cause
the recoverable value of the assets to be equal to its book
value.
21
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
INTANGIBLE ASSETS
EUR 1,000
Goodwill
Intangible
rights
Other long-
term ex-
penditure
Total
Cost at 1 January 2024
417,823
22,707
46,503
487,033
Additions
0
162
1,752
1,914
Cost at 31 December 2024
417,823
22,869
48,255
488,947
Accumulated depreciation, amortisation and impairment at 1 January 2024
0
-15,338
-26,445
-41,783
Depreciation and amortisation for the year
0
-493
-2,691
-3,184
Accumulated depreciation, amortisation and impairment at 31 December 2024
0
-15,831
-29,136
-44,967
Book value at 31 December 2024
417,823
7,038
19,119
443,980
Book value at 31 December 2023
417,823
7,368
20,058
445,249
Goodwill
Intangible
rights
Other long-
term ex-
penditure
Total
EUR 1,000
Cost at 1 January 2023
417,823
22,583
42,862
483,269
Additions
0
123
4,007
4,130
Disposals
0
0
-366
-366
Cost at 31 December 2023
417,823
22,707
46,503
487,033
Accumulated depreciation, amortisation and impairment at 1 January 2023
0
-14,802
-23,940
-38,742
Depreciation and amortisation for the year
0
-537
-2,505
-3,042
Accumulated depreciation, amortisation and impairment at 31 December 2023
0
-15,338
-26,445
-41,783
Book value at 31 December 2023
417,823
7,368
20,058
445,249
Book value at 31 December 2022
417,823
7,782
18,922
444,527
As a result of acquisitions in 2012 goodwill of EUR 515.6 million was created. Goodwill is based on the assesment of organisational competence and knowhow which is
expected to benefit business operations in coming years. At the end of 2021 the value of Goodwill is 417,8 million e uros, since 97,8 million euros was allocated to
heating business which was sold in 2019.
22
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
The Group’s management has estimated that lease con-
tracts related to indoor secondary substations, primary sub-
stations and certain office premises are immaterial contracts
(referring to IAS 1 which defines the materiality of the infor-
mation presented in the financial statements) and therefore
IFRS 16 has not been applied to these contracts. The defini-
tion of contracts as “immaterial” is based on the low value of
leases paid under these contracts which causes the lease lia-
bilities arising from them to be immaterial in relation to the
Group’s consolidated statement of financial position. Lease
payments on these contracts are recognised on the consoli-
dated statement of profit or loss as other operating expenses
over the lease term. The effect of these costs on the income
statement in 2024 was approximately EUR 149 thousand
(2023:EUR 117 thousand).
One-time subsurface rights compensations are paid to
landowners based on perpetual contracts. Compensations
are capitalized to the networks assets in the consolidated
statement of financial position and amortized over their ex-
pected useful lives. Normally subsurface rights should be rec-
ognised as leases under IFRS 16 but as compensations are
paid based on perpentual contracts, they are not treated as
lease contracts under IFRS 16.
ACCOUNTING POLICY
3.3.1LEASES (ACCOUNTING POLICY)
The Group assesses at contract inception whether a contract
is, or contains, a lease. That is, if the contract conveys the
right to control the use of an identified asset for a period of
time in exchange for consideration.
3.3.2 GROUP AS THE LESSOR (ACCOUNTING POLICY)
Leases in which the Group does not transfer substantially all
the risks and rewards incidental to ownership of an asset are
classified as operating leases. Initial direct costs incurred in
negotiating and arranging an operating lease are added to the
carrying amount of the leased asset and recognised over the
lease term on the same basis as rental income. Contingent
rents are recognised as other operating income in the period
in which they are earned (See Note 2.2).
Lease agreements comprise fixed-term agreements
and agreements which are valid until further notice.
3.3.3 THE GROUP AS THE LESSEE (ACCOUNTING POLICY)
According to the requiremets of IFRS 16 the Group recog-
nises lease liabilities to make lease payments and right-of-use
assets representing the right to use the underlying assets
concerning certain lease contracts related to office premises,
car leasing contracts, and lease contracts related to electric-
ity meters.
The Group applies the short-term lease exemption to a
part of the contracts related to office premises and to IT-
contracts. Lease payments on short-term leases are recog-
nised in the consolidated statement of profit or loss as other
operating expenses over the lease term. The impact of these
costs on the income statement in 2024 was approximately
EUR 45 thousand (2023: Approximately EUR 35 thousand).
Right-of-use assets
The Group recognizes right-of-use assets at the commence-
ment date of the lease (the date the underlying asset is available
for use). Right-of-use assets are measured at cost, less any ac-
cumulated depreciation and impairment losses, and adjusted for
any remeasurement of lease liabilities. The cost of right-of-use
assets includes the amount of lease liabilities recognized, initial
direct costs incurred, and lease payments made at or before the
commencement date less any lease incentives received. Right-
of-use assets are depreciated on a straight-line basis over the
lease term between the commencement date of the lease and
the end of the lease term or using the estimated useful life of
the asset. Leases of buildings and vehicles generally have lease
terms between 3 and 5 years.
If ownership of the leased asset transfers to the Group at
the end of the lease term or the cost reflects the exercise of a
purchase option, depreciation is calculate using the estimated
useful life of the asset. The right-of-use assets are also subject
to impairment (see accounting policies in Notes 3.1 and 3.2).
Lease liabilities
At the commencement date of the lease, the Group recognizes
lease liabilities measured at the present value of lease payments
to be made over the lease term. The lease payments include
fixed payments (including insubstance fixed payments) less any
lease incentives receivable, variable lease payments that de-
pend on an index or a rate, and amounts expected to be paid
under residual value guarantees. The lease payments also in-
clude the exercise price of a purchase option reasonably certain
to be exercised by the Group and payments of penalties for ter-
minating the lease, if the lease term reflects the Group exercis-
ing the option to terminate. In calculating the present value of
lease payments, the Group uses as interest rate an estimated
average medium-term financing cost at the lease commence-
ment date because the interest rate implicit in the lease is not
readily determinable.
After the commencement date, the amount of lease liabili-
ties is increased to reflect the accretion of interest and reduced
for the lease payments made. In addition, the carrying amount
of lease liabilities is remeasured if there is a change in the lease
term, a change in the lease payments (e.g., changes to future
payments resulting from a change in an index or rate used to
determine such lease payments) or a change in the assessment
of an option to purchase the underlying asset.
The Group’s lease liabilities are included in non-current and
current financial liabilities.
23
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
Set out below are the carrying amounts of right-of-use assets recognised and the
movements during the period
EUR 1,000
Buildings
Machinery
and equip-
ment
Total
As at 1 January 2024
462
176
638
Additions
0
46
46
Depreciations
-143
-101
-243
As at 31 December 2024
319
122
440
Machinery
and equip-
ment
EUR 1,000
Buildings
Total
As at 1 January 2023
412
140
552
Additions
0
159
159
Revaluations
205
0
205
Disposals
0
-36
-36
Depreciations
-155
-88
-243
As at 31 December 2023
462
176
638
Set out below are the carrying amounts of lease liabilities and the movements during
the period
LEASE LIABILITIES
EUR 1,000
2024
2023
As at 1 January
659
735
Additions
292
765
Disposals
-234
-414
Payments
-234
-414
Interest expenses
-12
-13
As at 31 December
471
659
The maturity analysis of lease liabilities are disclosed in Note 4.2.6.
During 2024 the Group had total cash outflows for leases of EUR 427 thousand (2023:
EUR 566 thousand).
The Group has several lease contracts that include extension and termination options.
These options are negotiated by management to provide flexibility in in managing the
leased-asset portfolio according to needs of business. Management exercises significant
judgement in determining whether these extension and termination options are reasona-
bly certain to be exercised (see Note 1.4).
The lease contract concerning the main premises of the group changed from a valid
untill further notice to a two year fixed term contract in March 2023.
According to management's assumption, the Group estimates that it will not use ter-
mination options of car's leases.
Amounts recognised in profit or loss
EUR 1,000
2024
2023
Depreciation expense of right-of-use assets
-243
-243
Interest expense on lease liabilities
-12
-13
Expense related to short-term leases
(incl. in other operating expenses)
-45
-35
Total amount recognised in profit or loss
-300
-291
24
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
4 CAPITAL STRUCTURE AND FINANCIAL ITEMS
4.1 FINANCE INCOME AND COSTS
FINANCIAL RISK MANAGEMENT
FINANCIAL RISK MANAGEMENT
The management of financial risks is based on the following
principles.
The Group's Treasury policy, approved by the Board of
Directors, defines financial risk management governance,
responsibilities and processes for reporting risks and risk
management. Treasury Policy defines principles covering
currency, liquidity, interest rate and counterparty risks. Also
the Group's existing loan arrangements include guidelines
and restrictions pertaining to financial risk management.
Elenia Verkko Oyj is responsible for the Group financial risk
management.
●
For credit risk management refer Note 2.1.4.2;
●
For liquidity risk, refinancing risk, interest rate risk
and currency risk management refer Note 4.2.9.
CAPITAL MANAGEMENT
As the electricity distribution business is a capital-intensive,
the Group must ensure it has adequate capital to meet its
operating requirements. Business planning includes as-
sessing the adequacy of available capital in relation to the
risks arising from business operations and the operating en-
vironment.
ACCOUNTING POLICY
TRANSLATION DIFFERENCES
Transactions in foreign currencies are initially recorded by
the Group's entities at their respective functional currency
spot rates at the date the transaction first qualifies for
recognition. Monetary assets and liabilities denominated in
foreign currencies are translated at the functional currency
spot rates of exchange at the reporting date. Differences
arising on settlement or translation of monetary items are
recognised in the consolidated statement of profit or loss
with the exception of monetary items that are designated
as part of the hedge of the Group's net investment of a for-
eign operation. These are recognised in other comprehen-
sive income until the net investment is disposed of, at
which time, the cumulative amount is reclassified to the
consolidated statement of profit or loss. Tax charges and
credits attributable to exchange differences on those mon-
etary items are also recorded in other comprehensive in-
come.
Non-monetary items that are measured in terms of his-
torical cost in a foreign currency are translated using the
exchange rates at the dates of the initial transactions. Non-
monetary items measured at fair value in a foreign currency
are translated using the exchange rates at the date when
the fair value is determined.
The gain or loss arising on translation of non-monetary
items measured at fair value is treated in line with the
recognition of gain or loss on change in fair value of the
item (i.e., translation differences on items whose fair value
gain or loss is recognised in other comprehensive income or
consolidated statement of profit or loss are also recognised
in other comprehensive income or statement of profit or
loss, respectively).
Any goodwill arising on the acquisition of a foreign op-
eration and any fair value adjustments on the carrying
amounts of assets and liabilities arising on the acquisition
are treated as assets and liabilities of the foreign operation
and translated at the spot rate of exchange at the reporting
date.
The assets and liabilities of foreign operations are
translated into EUR at the rate of exchange prevailing at
the reporting date and their statement of profit or loss and
other comprehensive income are translated at exchange
rates prevailing at the dates of the transactions. The
exchange differences arising on translation for
consolidation are recognised in other comprehensive
income.
EUR 1,000
2024
2023
Interest expenses
Loans from financial institutions
-11,904
-8,674
Bonds and notes
-37,050
-36,836
Interest expenses related to lease liabili-
ties
-12
-13
Other interest expenses
-7
-10
Total interest
-48,973
-45,533
Other finance costs
-3,942
-2,961
Exchange rate losses
Loans and receivables
-2
-1
Total finance costs
-52,917
-48,495
Interest income
Other interest income
2,146
2,330
Exchange rate gains
Other finance income
0
1
Total finance income
2,146
2,331
Finance costs (net)
-50,771
-46,164
25
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
4.2 FINANCIAL ASSETS AND LIABILITIES
IFRS 9 FINANCIAL INSTRUMENTS
The initial measurement of financial instruments is made at fair
value for all financial assets. Financial assets that are debt in-
struments and to which the fair value option is not applied are
measured following initial recognition either at amortized cost
or fair value, depending on the company’s business model for
the management of financial assets and contractual cash flows
of the financial assets.
As a rule, all equity instruments are measured at fair value
following the initial measurement, either through consolidated
statement of profit or loss or through consolidated statement of
other comprehensive income. All equity instruments held for
trading are to be measured at fair value through profit or loss.
Items that are recognized through other comprehensive income
will no longer be recognized in the consolidated statement of
profit or loss if the entity has elected to measure it at fair value
through consolidated statement of other comprehensive in-
come.
The impairment requirements in IFRS 9 are based on an ex-
pected credit loss model. In addition, IFRS 9 standard comprises
hedge accounting model in which the criteria for applying the
hedge accounting are relieved and more designations of groups
of items as the hedged items are possible. The hedge account-
ing model aims to enable companies to better reflect their risk
management strategy and objectives in the financial statements.
The Group has applied the simplified approach and recorded
lifetime expected losses on all trade receivables.
26
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
FINANCIAL INSTRUMENTS – INITIAL RECOGNITION AND
SUBSEQUENT MEASUREMENT
Classification of current and non-current assets and liabilities
An asset or a liability is classified as current when it is ex-
pected to be realized within twelve months after the financial
year end or it is classified as financial assets or liabilities held
at fair value through profit or loss. Liquid funds are classified
as current assets.
All other assets and liabilities are classified as non-current
assets and liabilities.
4.2.1 Cash and cash equivalents
Cash and cash equivalents comprise cash at banks and on
hand and short-term deposits with a maturity of three months
or less.
4.2.2 Financial assets
Initial recognition and measurement
Financial assets within the scope of IFRS 9 are classified as fi-
nancial assets carried at amortized cost, financial assets at fair
value through profit or loss or financial assets at fair value
through other comprehensive income (OCI), as appropriate.
The Group determines the classification of its financial assets
at initial recognition.
All financial assets are recognized initially at fair value plus
transaction costs, except in the case of financial assets rec-
orded at fair value through profit or loss. Purchases or sales of
financial assets are recognized on the trade date.
The classification of financial assets at initial recognition de-
pends on the financial asset's contractual cash flow character-
istics and the Group's business model for managing them. The
group does not have any financial assets measured at fair
value in 2022. Trade receivables that do not contain a signifi-
cant financing component or for which the Group has applied
the practical expedient are measured at the transaction price
determined under IFRS15. Refer to the accounting policies in
Note 2.1.1 Revenue from contracts with customers.
If, in a subsequent year, the amount of the estimated impair-
ment loss increases or decreases because of an event occur-
ring after the impairment was recognised, the previously rec-
ognised impairment loss is increased or reduced by adjusting
the allowance account. If a write-off is later recovered, the
recovery is credited to finance costs in the consolidated
statement of profit or loss.
Financial assets at fair value through profit or loss
Financial assets at fair value through profit or loss include fi-
nancial assets held for trading and financial as-sets desig-
nated upon initial recognition at fair value through profit or
loss. Financial assets are classified as held for trading if they
are acquired for selling or repurchasing in the near term.
Derivatives, including separated embedded derivatives
are also classified as held for trading unless they are desig-
nated as effective hedging instruments as defined by IFRS
9.Financial assets at fair value through profit or loss are car-
ried in the consolidated statement of financial position at fair
value with net changes in fair value presented as finance
costs (negative net changes in fair value) or finance income
(positive net changes in fair value) in the consolidated state-
ment of profit or loss. Financial assets designated upon initial
recognition at fair value through profit or loss are designated
at their initial recognition date and only if the criteria under
IFRS 9 are satisfied.
Financial assets at fair value through other comprehensive
income (OCI)
Derivatives are measured at fair value and gains and
losses from fair value measurement are treated as deter-
mined by the purpose of the derivatives. The effects on re-
sults of changes in the value of derivatives that are eligible
for hedge accounting and that are effective hedging instru-
ments are presented consistent with the hedged item. Deriv-
atives eligible for hedge accounting are classified as financial
assets at fair value through other comprehensive income.
The effective portion of the gain or loss on the hedging in-
strument is recognized directly in other comprehensive in-
come.
Subsequent measurement
The subsequent measurement of financial assets depends on
their classification as described below:
Financial assets carried at amortised cost
Financial assets carried at amortised cost are non-derivative
financial assets with fixed or determinable payments that are
not quoted in an active market. Financial assets carried at
amortised cost also include trade receivables and other re-
ceivables. Loans are carried at amortised cost using the effec-
tive interest rate method less accumulated impairment.
Amortised cost is calculated by taking into account any dis-
count or premium on acquisition and fees or costs that are an
integral part of the effective interest rate. The effective inter-
est rate amortisation is included in finance income in the con-
solidated statement of profit or loss. The losses arising from
impairment are recognised in the consolidated statement of
profit or loss in finance costs for loans and in cost of sales or
other operating expenses for receivables.
If there is objective evidence that an impairment loss has
been incurred, the amount of the loss is measured as the dif-
ference between the asset’s carrying amount and the present
value of estimated future cash flows (excluding future ex-
pected credit losses that have not yet been incurred). The
present value of the estimated future cash flows is dis-
counted at the financial asset’s original effective interest rate.
If a loan has a variable interest rate, the discount rate for
measuring any impairment loss is the current effective inter-
est rate.
The carrying amount of the asset is reduced using an al-
lowance account and the loss is recognised in the consoli-
dated statement of profit or loss. Interest income continues
to be accrued on the reduced carrying amount and is accrued
using the rate of interest used to discount the future cash
flows for measuring the impairment loss. The interest income
is recorded as finance income in the consolidated statement
of profit or loss. Loans together with the associated allow-
ance are written off when there is no realistic prospect of fu-
ture recovery, and all collateral has been realised or has been
transferred to the Group.
ACCOUNTING POLICY
27
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
4.2.4 Financial liabilities
Initial recognition and measurement
Financial liabilities within the scope of FRS 9 are classified as
financial liabilities at fair value through profit or loss, loans
and borrowings, payables, or as derivatives designated as
hedging instruments in an effective hedge, as appropriate.
The Group determines the classification of its financial liabili-
ties at initial recognition.
All financial liabilities are recognised initially at fair value
and, in the case of loans and borrowings, net of directly at-
tributable transaction costs.
The Group’s financial liabilities include trade and other
payables, loans and borrowings and derivative financial in-
struments.
The Group has two financial covenants in its financing
agreements. According to IAS1 the liability is to be classified
as non-current, if the company has the right to defer settle-
ment of the liability for at least twelve months after the re-
porting period. If the company is required to comply with
covenants on or before the end of the reporting period, these
covenants will affect whether such a right exists at the end of
the reporting period.
Subsequent measurement
The measurement of financial liabilities depends on their
classification as described below:
Loans and borrowings
After initial recognition, interest bearing loans and borrow-
ings are subsequently measured at amortized cost using the
effective interest rate method. Gains and losses are recog-
nized in the consolidated statement of profit or loss when the
liabilities are derecognized as well as through the effective in-
terest rate amortization process.
Amortized cost is calculated by taking into account any
discount or premium on acquisition and fees or costs that are
an integral part of the effective interest rate. The effective
interest rate amortization is included as finance costs in the
consolidated statement of profit or loss.
Financial liabilities at fair value through profit or loss
Financial liabilities at fair value through profit or loss include
financial liabilities held for trading and financial liabilities des-
ignated upon initial recognition as at fair value through profit
or loss. Financial liabilities are classified as held for trading if
they are acquired for the purpose of selling in the near term.
This category includes derivative financial instruments en-
tered into by the Group that are not designated as hedging
instruments in hedge relationships as defined by IFRS 9.
Gains or losses on liabilities held for trading are recognized in
the consolidated statement of profit or loss.
Derecognition of Financial liabilities
A financial liability is derecognized when the obligation under
the liability is discharged or cancelled or expires. When an
existing financial liability is replaced by another from the
same lender on substantially different terms, or the terms of
an existing liability are substantially modified, such an ex-
change or modification is treated as the derecognition of the
original liability and the recognition of a new liability. The dif-
ference in the respective carrying amounts is recognized in
the consolidated statement of profit or loss.
4.2.5 Offsetting of financial instruments
Financial assets and financial liabilities are offset, and the net
amount is reported in the consolidated statement of financial
position if there is a currently enforceable legal right to offset
the recognized amounts and there is an intention to settle on
a net basis, to realise the assets and settle the liabilities simul-
taneously.
Any ineffective portion is recognized immediately in the con-
solidated statement of profit or loss as financial income or
costs. The group had no derivatives at the balance sheet
date.
Derecognition of financial assets
Financial assets are derecognized when:
◾
The rights to receive cash flows have expired; or
●
The Group has transferred its rights to receive cash
flows from the asset or has assumed an obligation to
pay the received cash flows in full without material de-
lay to a third party under a ‘pass-through’ arrangement;
and either (a) the Group has transferred substantially all
the risks and rewards of the asset, or (b) the Group has
neither transferred nor retained substantially all the
risks and reward s of the asset, but has transferred con-
trol of the asset.
4.2.3 Impairment of financial assets
The Group recognizes an allowance for expected credit
losses (ECLs) for all debt instruments not held at fair value
through profit or loss. ECLs are based on the difference be-
tween the contractual cash flows due in accordance with the
contract and all the cash flows that the Group expects to re-
ceive, discounted at an approximation of the original effec-
tive interest rate.
ECL' are recognized in two stages. For credit exposures
for which there has not been a significant increase in credit
risk since initial recognition, ECLs are provided for credit
losses that result from default evets that are possible within
the next 12-months (a 12-month ECL). For those credit expo-
sures for which there has been a significant increase in credit
risk since initial recognition, a loss allowance is required for
credit losses expected over the remaining life of the expo-
sure, irrespective of the timing of the default (a lifetime ECL).
For trade receivables and other receivables, the Group
applies a simplified approach in calculating ECLs. Therefore,
the Group does not track changes in credit risk, but instead
recognizes a loss allowance based on lifetime ECLs at each
reporting date. The Group has established a provision matrix
that is based on its historical credit loss experience, adjusted
for forward-looking factors specific to the debtors and the
economic environment.
28
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
4.2.6 Carrying amounts by category and maturity profile of financial assets and liabilities
CARRYING AMOUNTS OF FINANCIAL ASSETS AND LIABILITIES BY CATEGORY
VALUES at 31 DECEMBER 2024
Balance sheet item, EUR 1,000
Note
Amortised cost
Carrying value
of balance
sheet items
Fair value
Current financial assets
Trade receivables and other non-interest-bearing
receivables
2.1.4
15,668
15,668
15,668
Cash and cash equivalents
42,745
42,745
42,745
Total Current assets
58,412
58,412
58,412
Carrying amount by category
58,412
58,412
58,412
Non-current financial liabilities
Bonds and notes
4.2.8-9
-1,685,033
-1,685,033
-1,605,853
Loans from financial institutions
4.2.8-9
-250,000
-250,000
-250,000
Interest-bearing non-current liabilities
- Leases
3.3
-235
-235
-235
Total interest-bearing non-current liabilities
-1,935,268
-1,935,268
-1,856,088
Bonds and notes
Other current interest-bearing liabilities
- Leases
3.3
-237
-237
-237
Trade payables
2.3.2
-8,497
-8,497
-8,497
Total current financial liabilities
-8,734
-8,734
-8,734
Carrying amount by category
-1,944,002
-1,944,002
-1,864,822
VALUES at 31 DECEMBER 2023
Balance sheet item, EUR 1,000
Note
Amortised cost
Carrying value
of balance
sheet items
Fair value
Current financial assets
Trade receivables and other non-interest-bearing
receivables
2.1.4
19,330
19,330
19,330
Cash and cash equivalents
60,161
60,161
60,161
Total Current assets
79,491
79,491
79,491
Carrying amount by category
79,491
79,491
79,491
Non-current financial liabilities
Bonds and notes
4.2.8-9
-1,684,021
-1,684,021
-1,585,123
Loans from financial institutions
4.2.8-9
-250,000
-250,000
-250,000
Interest-bearing non-current liabilities
- Leases
3.3
-548
-548
-548
Total interest-bearing non-current liabilities
-1,934,569
-1,934,569
-1,835,671
Bonds and notes
4.2.8-9
Other current interest-bearing liabilities
- Leases
3.3
-111
-111
-111
Trade payables
2.3.2
-4,380
-4,380
-4,380
Total current financial liabilities
-4,491
-4,491
-4,491
Carrying amount by category
-1,939,060
-1,939,060
-1,840,162
The valuation of financial assets and liabilities at fair value has not had an effect on the in-
come statement or the statement of comprehensive income in 2024 and 2023.
29
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
The table below summarizes the maturity profile of the Group's financial liabilities based on contractual payments.
CASH AT BANKS AND ON HAND
Elenia had short-term bank deposits amounting to EUR 42.7
million (2023: EUR 60.2 million). All bank deposits were de-
nominated in euros.
BONDS AND NOTES
The fair value of the bonds have been calculated based on the
required rate of return estimated using the EUR-denominated
swap rate yield curve and the estimated risk premium calculated
based on the market quotes of Elenia Verkko Oyj's bonds at the
balance sheet date.
FINANCIAL LIABILITIES
Interest-bearing liabilities decreased by EUR 4.6 million (2023:
growth EUR 99.9 million) during the year and interest-bearing
liabilities at the balance sheet date totaled EUR 1,940 million
(2023: EUR 1,944.5 million).
The fair value of short-term trade receivables and payables,
other non-interest-bearing receivables, finance leases and cash
and cash equivalents corresponds essentially the carrying
amount.
31 December 2024
Effec-
tive in-
terest
rate %
Maturity
EUR 1,000
Within 1 year
1-5 years
Over 5 years
Total
Loans from financial institutions
4.03%
0
50,000
200,000
250,000
Bonds
1.96%
0
692,000
479,000
1,171,000
Notes
2.71%
0
107,500
411,000
518,500
Lease liabilities
0
235
0
235
Total interest-bearing non-current liabilities
0
849,735
1,090,000
1,939,735
Lease liabilities
237
0
0
237
Total current interest-bearing liabilities
237
0
0
237
Trade payables
8,497
0
0
8,497
Total current financial liabilities
8,497
0
0
8,497
Total
8,734
849,735
1,090,000
1,948,469
31 December 2023
Effec-
tive in-
terest
rate %
Maturity
EUR 1,000
Within 1 year
1-5 years
Over 5 years
Total
Loans from financial institutions
4.84%
0
50000
200,000
250,000
Bonds
1.98%
0
640,000
531,000
1,171,000
Notes
2.71%
0
79000
439,500
518,500
Lease liabilities
0
548
0
548
Total interest-bearing non-current liabilities
0
769,548
1,170,500
1,940,048
Lease liabilities
111
0
0
111
Total current interest-bearing liabilities
111
0
0
111
Trade payables
4,380
0
0
4,380
Total current financial liabilities
4,380
0
0
4,380
Total
4,491
769,548
1,170,500
1,944,539
30
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
The "Other changes" column includes the effect of reclassification of non-current portion of obligations under finance leases to
current due to passage of time, the effect of capitalization of interests of other long-term loans and the effect amortisation of
transaction costs of bonds and notes using the effective interest rate method.
The Group classifies interest paid as cash flows from operating activities.
EUR 1,000
1 January
2024
Cash flows
New leases
IFRS 16
Other changes
31 December
2024
Current obligations under lease liabilities
111
-234
0
360
237
Non-current interest-bearing loans and borrowings
(excl. items listed below)
1,934,021
0
0
1,011
1,935,033
Non-current obligations under lease liabilities
548
0
364
-678
235
EUR 1,000
1 January
2023
Cash flows
New leases
IFRS 16
Other changes
31 December
2023
Current obligations under lease liabilities
425
-414
0
100
111
Non-current interest-bearing loans and borrowings
(excl. items listed below)
1,833,025
100,000
0
995
1,934,021
Non-current obligations under lease liabilities
311
0
556
-319
548
4.2.7 Changes in financial liabilities arising from financing activities
CHANGES IN LIABILITIES ARISING FROM FINANCING ACTIVITIES
4.2.8 Fair value hierarchy of financial assets and liabilities
ACCOUNTING POLICY
FAIR VALUE MEASUREMENT OF FINANCIAL INSTRUMENTS
Fair value related to disclosures for financial instru-
ments and non-financial assets that are measured at fair
value or where fair values are disclosed, are summarised in
the following notes:
●
Disclosures for valuation methods, significant estimates
and assumptions Notes 4.2.6 and 4.2.8
●
Quantitative disclosures of fair value measurement hi-
erarchy Note 4.2.8
●
Financial instruments (including those carried at amor-
tised cost) Note 4.2.6
Fair value is the price that would be received to sell an as-
set or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. The
fair value measurement is based on the presumption that
the transaction to sell the asset or transfer the liability
takes place either:
●
In the principal market for the asset or liability, or
●
In the absence of a principal market, in the most advan-
tageous market for the asset or liability
The principal or the most advantageous market must be ac-
cessible by the Group.
The fair value of an asset or a liability is measured using
the assumptions that market participants would use when
pricing the asset or liability, assuming that market partici-
pants act in their economic best interest. The Group uses
valuation techniques that are appropriate in the circum-
stances and for which sufficient data are available to meas-
ure fair value.
The fair value of financial instruments that are traded in
active markets at each reporting date is determined by ref-
erence to quoted market prices or dealer price quotations,
without any deduction for transaction costs.
31
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
FAIR VALUE HIERARCHY
All assets and liabilities for which fair value is measured or dis-
closed in the consolidated financial statements are categorised
within the fair value hierarchy, described as follows, based on
the lowest level input that is significant to the fair value meas-
urement as a whole:
Level 1 Quoted (unadjusted) market prices in active markets
for identical assets or liabilities
that is significant to the fair value measurement is directly or in-
directly observable
Level 3 Valuation techniques for which the lowest level input
that is significant to the fair value measurement is unobservable
For financial instruments not traded in an active market,
the fair value is determined using appropriate valuation
techniques. Such techniques may include:
●
Using recent arm’s length market transactions
●
Reference to the current fair value of another instru-
ment that is substantially the same
●
A discounted cash flow analysis or other valuation mod-
els
For assets and liabilities that are recognised in the consoli-
dated financial statements at fair value on a recurring basis,
the Group determines whether transfers have occurred be-
tween levels in the hierarchy by re-assessing categorisation
(based on the lowest level input that is significant to the fair
value measurement as a whole) at the end of each report-
ing period. The transfers between levels of the fair value hi-
erarchy shall be disclosed at the date of the event or
change in circumstances that caused the transfer.
For fair value disclosures, the Group has determined
classes of assets and liabilities on the basis of the nature,
characteristics and risks of the asset or liability and the
level of the fair value hierarchy as explained next.
An analysis of fair values of financial instruments and
further details as to how they are measured are provided in
Notes 4.2.6 and 4.2.8.
As at 31 December 2023, the Group held the following financial instruments carried at amortised cost in the
consolidated statement of financial position:
FINANCIAL ASSETS AND LIABILITIES
Level 2
Level 3
Total
EUR 1,000
2024
2023
2024
2023
2024
2023
2024
2023
Financial instruments, non-current lia-
bilities
Bonds and notes
0
0
-1,605,853
-1,585,123
0
0
-1,605,853
-1,585,123
Loans from financial institutions
-250,000
-250,000
0
0
0
0
-250,000
-250,000
Total non-current financial liabilities
-250,000
-250,000
-1,605,853
-1,585,123
0
0
-1,855,853
-1,835,123
Total financial liabilities
32
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
4.3 OTHER COMMITMENTS AND CONTINGENCIES
OTHER COMMITMENTS
EUR 1,000
2024
2023
Registered floating charges:
Provided on behalf of own and Group liabil-
ities
9,000,000
9,000,000
Mortgages
202,000
202,000
Refundable connection fees
284,633
284,437
Group bank accounts have been pledged as security for loans from fi-
nancial institutions and bonds.
4.4 EQUITY
Share capital
The share is issued and fully paid.
Reserve for invested unrestricted equity
The reserve for invested non-restricted equity comprises of all
other equity investments and paid share subscription price, that
has not been specifically booked as share capital.
Equity repayment
Elenia Verkko Oyj decided on April 25,2024 the equity repay-
ment of €56.6m. The euity repayment was done from Unre-
stricted equity.
The meeting of Elenia Verkko Oyj's shareholders decided
on December 15, 2020 proactively the equity repayment of
€550.0m to its sole shareholder Elenia Oy during 2020-2023.
The equity repayment was done from Unrestricted equity and
was transferred to short-term payables in December 2020.
Equity investment and common control reserve
In 2023 or 2024 there were no restructurings.
EUR 1,000
2024
2023
Unrestricted equity 1 Jan
-548,843
-548,843
Equity repayment
-56,553
0
Unrestricted equity 31 Dec
-605,396
-548,843
Retained earnings
The change in retained earnings of 18 893 thousand euros for
the fiscal year 2024 is due to group contribution received from
Elenia Oy. The change in retained earnings of 17 336 thousand
euros for the fiscal year 2023 consists of the group contribution
received from Elenia Oy.
Earnings per share
Earnings per share are calculated by dividing the profit or loss
attributable to equity holders of the parent by the average num-
ber of shares during the reporting period:
EUR
2024
2023
Profit attributable to equity holders of
the parent, EUR
64,137,934
55,654,083
Average number of shares, pcs
90
90
Earnings/share, EUR - basic = diluted
712,644
618,379
33
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
5 CONSOLIDATION
5.1 BASIS OF CONSOLIDATION
The consolidated financial statements comprise the parent com-
pany Elenia Oy and its subsidiaries which the Group controls.
Control is achieved when the Group is exposed, or has rights, to
variable returns from its involvement with the investee and has
ability to affect those returns through its power over the inves-
tee. The consolidated financial statements also include, as asso-
ciated companies, any companies over which the Group has sig-
nificant influence. Significant influence generally involves a
shareholding of over 20% of the voting rights or when the
Group has the power to participate in the financial and operat-
ing policy decisions of the investee but has not control or joint
control over those policies.
Subsidiaries are included in the consolidated financial state-
ments using the acquisition cost method. The acquisition cost is
measured as the aggregate of the fair value of the assets given
and liabilities incurred or assumed at the date of exchange.
Costs related to acquisitions are recorded on the consolidated
statement of profit or loss as other operating expenses. The ex-
cess of the cost of acquisition over the fair value of the Group’s
share of the net assets acquired is recorded as goodwill. Subsid-
iaries are fully consolidated from the date on which control is
transferred to the Group.
Intercompany transactions, receivables and debts are elimi-
nated in the consolidated financial statements.
Where necessary, the accounting policies of subsidiaries
have been changed to ensure consistency with the accounting
policies adopted by the Group.
As at 31 December 2024, the subsidiaries do not have non-
controlling interests.
5.2 BUSINESS COMBINATIONS AND GOODWILL
Business combinations are accounted for using the acquisition
method. The cost of an acquisition is measured as the aggregate
of the consideration transferred, which is measured at acquisi-
tion date fair value and the amount of any non-controlling inter-
est in the acquiree. For each business combination, the Group
elects whether to measure the non-controlling interest in the
acquiree at fair value or at the proportionate share of the ac-
quiree’s identifiable net assets. Acquisition-related costs are ex-
pensed as incurred and included in administrative expenses.
When the Group acquires a business, it assesses the finan-
cial assets and liabilities assumed for appropriate classification
and designation in accordance with the contractual terms, eco-
nomic circumstances and pertinent conditions as at the acquisi-
tion date. This includes the separation of embedded derivatives
in host contracts by the acquiree.
If the business combination is achieved in stages, the previ-
ously held equity interest is remeasured at its acquisition date
fair value and any resulting gain or loss is recognised in the
statement of profit or loss. It is then considered in the determi-
nation of goodwill. Any contingent consideration to be trans-
ferred by the acquirer will be recognised at fair value at the ac-
quisition date. Contingent consideration classified as an asset or
liability that is a financial instrument and within the scope of
IFRS 9 Financial Instruments, is measured at fair value with
changes in fair value recognised either in the statement of
profit or loss or as a change to other comprehensive income. If
the contingent consideration is not within the scope of IFRS 9,
it is measured in accordance with the appropriate IFRS. Contin-
gent consideration that is classified as equity is not remeasured
and subsequent settlement is accounted for within equity.
Goodwill is initially measured at cost, being the excess of
the aggregate of the consideration transferred and the amount
recognised for non-controlling interests, and any previous inter-
est held, over the net identifiable assets acquired and liabilities
assumed. If the fair value of the net assets acquired is in excess
of the aggregate consideration transferred, the Group re-as-
sesses whether it has correctly identified all of the assets ac-
quired and all of the liabilities assumed and reviews the proce-
dures used to measure the amounts to be recognised at the ac-
quisition date. If the reassessment still results in an excess of
the fair value of net assets acquired over the aggregate consid-
eration transferred, then the gain is recognised in the consoli-
dated statement of profit or loss.
After initial recognition, goodwill is measured at cost less
any accumulated impairment losses. For the purpose of impair-
ment testing, goodwill acquired in a business combination is,
from the acquisition date, allocated to each of the Group’s cash-
generating units that are expected to benefit from the combina-
tion, irrespective of whether other assets or liabilities of the ac-
quiree are assigned to those units.
Where goodwill has been allocated to a cash-generating unit
and part of the operation within that unit is disposed of, the
goodwill associated with the disposed operation is included in
the carrying amount of the operation when determining the
gain or loss on disposal. Goodwill disposed in these circum-
stances is measured based on the relative values of the dis-
posed operation and the portion of the cash-generating unit re-
tained.
5.3 ACQUISITIONS AND DISPOSALS
In 2024 or 2023 there were no business disposals. In 2024 and
2023 there were no acquisitions to be accounted for as busi-
ness combinations.
34
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
5.4 OTHER CHANGES IN ACCOUNTING POLICIES AND
DISCLOSURES / NEW AND AMENDED STANDARDS AND
INTERPRETATIONS ISSUED BUT NOT YET EFFECTIVE
5.4.1 Changes in accounting policies and disclosures
The Group applied for the first-time certain standards and
amendments which are effective for annual periods beginning
on or after 1 January 2024. The nature of each new standard
and amendment adopted by the Group has been described in
the relevant note. New standards and amendments not material
for the Group have been described below:
AMENDMENTS ON IFRS 16: LEASE LIABILITY IN SALES AND
LEASEBACK
The amended standards will be effective for annual periods be-
ginning on or after 1 January 2024 with early adoption permit-
ted.
The changes affect how the seller-lessee handles the varia-
ble rental payments arising in a sale and leaseback transaction.
With the changes, a new variable payment accounting model
will be introduced, which requires that seller-lessees reevaluate
and possibly correct sales and leaseback transactions made
since 2019.
The amendments do not have a material impact on the con-
solidated financial statements.
AMENDMENTS TO IAS 7 AND IFRS 7: SUPPLIER FINANCE
ARRANGEMENTS
The amended standards will be effective for annual periods be-
ginning on or after 1 January 2024 with early adoption permit-
ted.
The amendments require disclosures to enhance the trans-
parency of supplier finance arrangements and their effects on an
entity’s liabilities, cash flows and exposure to liquidity risk.
The amendments do not have a material impact on the con-
solidated financial statements.
AMENDMENTS TO IAS 12: INTERNATIONAL TAX REFORM
-
PILAR TWO MODEL RULES
The amended standards will be effective for annual periods be-
ginning on 1 January 2023.
The amendment introduces a mandatory temporary excep-
tion to the accounting for deferred taxes arising from the juris-
dictional implementation of the Pillar two model rules and re-
quirements to disclose if the exception has been applied or not
as well as disclosure requirements to help users of the financial
statements better understand an entity's exposure to Pillar two
taxes, particularly before its effective.
The amendments do not have a material impact on the consoli-
dated financial statements.
5.4.2 New and amended standards and interpretations is-
sued but not yet effective
Certain new and amended standards and interpretations are is-
sued but not yet effective up to the date of issuance of the con-
solidated financial statements. The Group intends to adopt
these standards, amendments and interpretations, if applicable,
when they become effective. The nature of each new standard
and amendment to be adopted by the Group has been de-
scribed below:
IFRS 18: PRESENTATION AND DISCLOSURE IN FINANCIAL
STATEMENTS
The standard will be effective for annual periods beginning on
or after 1 January 2027 with early adoption permitted.
the income statement and mandatory subtotals, as well as the
requirement to present additional information on certain key
figures defined by management.
The standard has a considerable impact on the consolidated fi-
nancial statements
REGULATORY ASSETS AND REGULATORY LIABILITIES: POS-
SIBLE NEW STANDARD
The International Accounting Standards Board published in Jan-
uary 2021 an exposure draft on Regulatory Assets and Regula-
tory Liabilities. The Exposure Draft sets out the IASB’s
proposals for a model to account for regulatory assets and
regulatory liabilities. If issued as a new IFRS Standard, the
proposals would replace IFRS
14
Regulatory Deferral Accounts
.
The IASB discussed feedback on the Exposure Draft during
October and November 2021 and will begin redeliberating the
proposals in the Exposure Draft at a future meeting.
Group is following closely the development of this initiative
and evaluating impacts.
35
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
6 OTHER NOTES
6.1 TAXES
6.1.1 Income taxes
ACCOUNTING POLICY
INCOME TAXES
Current income tax assets and liabilities for the current pe-
riod are measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax rates and
tax laws used to compute the amount are those that are
enacted or substantively enacted, at the reporting date in
the countries where the Group operates and generates tax-
able income.
Current income tax relating to items recognised directly
in equity is recognised in equity and not in the consolidated
statement of profit or loss. Management periodically evalu-
ates positions taken in the tax returns with respect to situa-
tions in which applicable tax regulations are subject to in-
terpretation and establishes provisions where appropriate.
SIGNIFICANT ACCOUNTING JUDGEMENTS,
ESTIMATES AND ASSUMPTIONS
INCOME TAXES
Uncertainties exist with respect to the interpretation of
complex tax regulations, changes in tax laws, and the
amount and timing of future taxable income. Given the long-
term nature and complexity of existing contractual agree-
ments, differences arising between the actual results and the
assumptions made, or future changes to such assumptions,
could necessitate future adjustments to the tax estimation.
The Group companies establish provisions based on rea-
sonable estimates. In the case that the final taxes are differ-
ent than the amounts initially recognized, these differences
will affect income tax and provisions for deferred tax during
the year when the determination of tax differences took
place. Management estimates that the estimated tax shown
in the consolidated financial statement represent a reasona-
ble estimate of the Group's tax position.
The major components of income tax expense for the
years ended 31 December 2024 and 2023 are:
CONSOLIDATED STATEMENT OF PROFIT
AND LOSS
EUR 1,000
2024
2023
Current income tax charge
-2,503
-2,504
Adjustments in respect of current income tax
of previous periods
-3
1
Deferred taxes
-18,311
-16,031
Income tax expense reported in the consoli-
dated statement of profit or loss
-20,817
-18,534
CONSOLIDATED STATEMENT OF OCI
EUR 1,000
2024
2023
Deferred tax related to items recognised in
OCI during the year:
Remeasurement gains (losses) on defined
benefit plans
-13
3
Deferred tax charged to OCI
-13
3
INCOME TAX RATE
Tax on profit before tax deviates from the nominal tax calculated
according to the tax rate as follows:
EUR 1,000
2024
2023
Profit before tax
84,901
74,199
Theoretical income tax using the nominal tax
rate of 20.0% (2023: 20.0%)
-16,980
-14,840
- expenses that are non-deductible in taxa-
tion
-55
-229
- adjustment of taxes based on previous peri-
ods
-3
1
- deductible income not recorded in profit
and loss (group contribution)
-3,779
-3,466
Income tax in the income statement
-20,817
-18,534
Effective tax rate was 25% (2023: 25%)
36
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
6.1.2 Deferred tax
ACCOUNTING POLICY
DEFERRED TAX
Deferred tax is provided using the liability method on tempo-
rary differences between the tax bases of assets and liabilities
and their carrying amounts for financial reporting purposes at
the reporting date.
Deferred tax liabilities are recognised for all taxable tem-
porary differences, except:
●
When the deferred tax liability arises from the initial
recognition of goodwill or an asset or liability in a transac-
tion that is not a business combination and, at the time of
the transaction, affects neither the accounting profit nor
taxable profit or loss.
●
In respect of taxable temporary differences associated
with investments in subsidiaries, associates and interests
in joint ventures, when the timing of the reversal of the
temporary differences can be controlled and it is probable
that the temporary differences will not reverse in the
foreseeable future.
Deferred tax assets are recognised for all deductible tempo-
rary differences, the carry forward of unused tax credits and
any unused tax losses. Deferred tax assets are recognised to
the extent that it is probable that taxable profit will be availa-
ble against which the deductible temporary differences, and
the carry forward of unused tax credits and unused tax losses
can be utilised, except:
●
When the deferred tax asset relating to the deductible
temporary difference arises from the initial recognition of
an asset or liability in a transaction that is not a business
combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.
●
In respect of deductible temporary differences associated
with investments in subsidiaries, associates and interests
in joint ventures, deferred tax assets are recognised only
to the extent that it is probable that the temporary differ-
ences will reverse in the foreseeable future and taxable
profit will be available against which the temporary differ-
ences can be utilized.
The carrying amount of deferred tax assets is reviewed at
each reporting date and reduced to the extent that it is no
longer probable that sufficient taxable profit will be available
to allow all or part of the deferred tax asset to be utilised. Un-
recognised deferred tax assets are reassessed at each report-
ing date and are recognised to the extent that it has become
probable that future taxable profits will allow the deferred tax
asset to be recovered.
Deferred tax assets and liabilities are measured at the tax
rates that are expected to apply in the year when the asset is
realised or the liability is settled, based on tax rates (and tax
laws) that have been enacted or substantively enacted at the
reporting date.
Deferred tax relating to items recognised outside the
statement of profit or loss is recognised outside the statement
of profit or loss. Deferred tax items are recognised in correla-
tion to the underlying transaction either in other comprehen-
sive income or directly in equity.
The Group offsets deferred tax assets and deferred tax lia-
bilities if, and only if, it has a legally enforceable right to set off
current tax assets and current tax liabilities and the deferred
tax assets and deferred tax liabilities relate to income taxes
levied by the same taxation authority on either the same taxa-
ble entity or different taxable entities which intend either to
settle current tax liabilities and assets on a net basis, or to re-
alise the assets and settle the liabilities simultaneously, in each
future period in which significant amounts of deferred tax lia-
bilities or assets are expected to be settled or recovered.,
ACCOUNTING JUDGEMENTS
DEFERRED TAX
The Group recognizes deferred tax assets by taking into ac-
count their recoverability, based on the existence of de-
ferred tax liabilities with similar maturities for netting and
the possibility of generation of sufficient future taxable
profits. The management assessed the deferred tax booked
in the financial statements to be recoverable.
The estimations and the actual flows of taxes paid or re-
ceived could differ from the estimates made by the Group
as a result of unforeseen future legal changes in estimates.
ACCOUNTING ESTIMATES
DEFERRED TAX
The Group has deferred tax assets and liabilities which are
expected to be realised through the consolidated statement
of profit or loss over certain periods of time in the future.
The calculation of deferred tax assets and liabilities involves
making certain assumptions and estimates regarding the fu-
ture tax consequences attributable to differences between
the carrying amounts of assets and liabilities as recorded in
the financial statements and their tax basis.
37
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
CHANGE IN DEFERRED TAX ASSETS AND LIABILITIES IN 2024
Deferred tax assets
Balance
sheet 1
Jan 2024
Recognised in
the statement of
profit or loss
Recognised in
other compre-
hensive income
Balance
sheet 31 Dec
2024
EUR 1,000
Defined benefit plans
39
-6
-13
20
Liabilities related to contracts with cus-
tomers
9,899
1,758
0
11,657
Finance leases
11
-5
0
6
Cloud computing arrangements
18
18
0
36
Total
9,967
1,765
-13
11,719
Deferred tax assets
9,967
11,719
Deferred tax liabilities
Balance
sheet 1
Jan 2024
Recognised in
the statement of
profit or loss
Recognised in
other compre-
hensive income
Balance
sheet 31 Dec
2024
EUR 1,000
Interest-bearing liabilities
949
-155
0
794
Depreciation differences
123,982
24,546
0
148,527
Measurement of assets at fair value in
acquisition
49,762
-4,313
0
45,449
Total
174,693
20,077
0
194,770
Deferred tax liabilities
174,693
194,770
CHANGE IN DEFERRED TAX ASSETS AND LIABILITITES IN 2023
Deferred tax assets
Balance
sheet 1
Jan 2023
Recognised in
the statement of
profit or loss
Recognised in
other compre-
hensive income
Balance
sheet
31 Dec2023
EUR 1,000
Defined benefit plans
49
-13
3
39
Liabilities related to contracts with cus-
tomers
8,086
1,813
0
9,899
Finance leases
53
-42
0
11
Cloud computing arrangements
0
18
0
18
Total
8,188
1,776
3
9,967
Deferred tax assets
8,188
9,967
Deferred tax liabilities
Balance
sheet 1
Jan 2023
Recognised in
the statement of
profit or loss
Recognised in
other compre-
hensive income
Balance
sheet
31 Dec2023
EUR 1,000
Interest-bearing liabilities
1,101
-152
0
949
Depreciation differences
101,711
22,272
0
123,983
Measurement of assets at fair value in
acquisition
54,076
-4,314
0
49,762
Total
156,888
17,806
0
174,693
Deferred tax liabilities
156,888
174,693
38
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
6.2 PENSIONS AND OTHER POST-EMPLOYMENT
BENEFITS
ACCOUNTING POLICY
PENSION OBLIGATIONS
Pension arrangements are categorised as defined benefit or
defined contribution plans. Under defined contribution
plans, the Group pays fixed pension contributions and has
no legal or constructive obligation to make additional pay-
ments. This category includes the Finnish Statutory Em-
ployment Pension Scheme (TyEL). Payments relating to de-
fined contribution pension plans are recognised in the con-
solidated statement of profit or loss under personnel ex-
penses for the period in which they are due. For defined
benefit plans, pension costs are assessed using the pro-
jected unit credit method. The cost of providing pensions is
recorded in the consolidated statement of profit or loss as
to spread the service cost over the service lives of employ-
ees. The defined benefit obligation is calculated annually on
the reporting date and is measured as the present value of
the estimated future cash flows.
The Group applies the IAS 19 standard to calculations
on defined benefit pension plans. Under this standard, all
actuarial gains and losses are recognised in the period in
which they occur in total in other comprehensive income
and the net defined benefit liability or asset is presented in
full on the consolidated statement of financial position. The
expected return on plan assets is calculated using the same
discount rate as applied for discounting the benefit obliga-
tion to its present value. Current and past service costs as
well as net interest on net defined benefit liability is rec-
orded in the consolidated statement of profit or loss. Items
arising from the remeasurement of the net defined benefit
liability are recognised in consolidated statement of other
comprehensive income. The Group has defined contribu-
tion pension plans concerning additional pensions. The
benefits are insured with an insurance company.
The benefits include both defined benefit (DB) and de-
fined contribution (DC) parts as defined in IAS 19. In the
following tables, figures are presented for DB part of the
plan.
Items recognised on the consolidated statement of financial po-
sition at 31 December:
EUR 1,000
2024
2023
Items recognised on the consolidated statement
of financial position at 31 December
Current value of funded obligations
1,528
1,557
Fair value of assets
-1,429
-1,365
Deficit
99
192
Value of the obligation on the consolidated
statement of financial position
99
192
The obligations of defined benefit pension plans have changed
as follows:
EUR 1,000
2024
2023
Obligation at the beginning of the year
1,557
1,625
Interest expenses
60
60
Actuarial losses
90
48
Benefits paid
-180
-175
Obligation at the end of the year
1,528
1,557
The fair value of the assets of defined benefit pension plans has
developed as follows:
EUR 1,000
2024
2023
Fair value of plan assets at the beginning of the
year
1,365
1,381
Expected income from assets
54
50
Actuarial gains
158
35
Payments by the employer
33
74
Benefits paid
-180
-175
Fair value of plan assets at the end of the year
1,429
1,365
The obligation in the consolidated statement of financial posi-
tion consists of the following items:
EUR 1,000
2024
2023
Obligation at the beginning of the year
192
244
Net cost recognised in the statement of profit or
loss
6
9
Payments by the employer
-33
-74
Profits and losses recognised in other compre-
hensive income
-67
13
Value of the obligation at year end
99
192
Items recognised in the consolidated statement of profit or loss:
EUR 1,000
2024
2023
Interest income
-54
-50
Interest expenses
60
60
Total
6
9
Items recognised in the consolidated statement of other com-
prehensive income for the year:
EUR 1,000
2024
2023
Actuarial gains/(losses) on assets
-158
-35
Actuarial gains/(losses) on obligations
90
48
Total
-67
13
39
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
Sensitivity analysis of defined benefit pension plans
The following table shows how the discount rate affects to projected benefit obligation, related
service cost and interest cost.
2024
Assumption
EUR 1,000
Defined bene-
fit obligations
Fair value of
Plan assets
Net Liability
Net interest
Discount rate 3.1%
1,528
1,429
99
3
0.5% increase
1,457
1,368
89
3
0.5% decrease
1,605
1,496
109
3
2023
Assumption
EUR 1,000
Defined bene-
fit obligations
Fair value of
Plan assets
Net Liability
Net interest
Discount rate 4.1 %
1,557
1,365
192
6
0.5% increase
1,488
1,310
178
6
0.5% decrease
1,633
1,424
209
6
40
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
As the defined benefit plans are managed by an external insur-
ance company, it is not possible to present a division of the fair
values of the plan assets.
Expected contributions for 2024 are estimated to be EUR 8
thousand.
The weighted average duration of defined benefit obligation
is 10-13 years.
The following table shows the maturity profile of the future
benefit payments.
EUR 1,000
2024
2023
Under 1 year
183
185
1-10 years
882
959
10-20 years
611
697
20-30 years
334
410
Over 30 years
171
235
Total
2,181
2,486
ACTURIAL ASSUMPTIONS USED IN CALCULATIONS
%
2024
2023
Discount rate
3.1 %
4.1 %
Estimate of salary increases
2.1 %
2.7 %
Inflation
1.9 %
2.5 %
6.3 RELATED PARTY DISCLOSURES
In accordance with IAS 24, related parties include the board of
directors, CEO and other members of the Elenia Oy group's
management team, the head of the Elenia Oy group's procure-
ment and development unit, their close family members, and
entities in which the above-mentioned persons directly or indi-
rectly exercise control. In addition, related parties include Eleni-
a's significant shareholders who own more than 20 percent of
the company's shares or the combined number of votes of all
shares.
The company maintains lists of related parties. The company
has guidelines for identifying related party transactions of enti-
ties identified in the related party register, and they are obliged
to notify the company in advance of their planned contracts and
legal actions with companies belonging to the group, if the
value of the transaction exceeds EUR 5,000.00. In addition,
they are asked annually to confirm the related party activities
that have been carried out. Related party transactions that are
not part of the company's normal business or are made outside
of the usual commercial terms are handled in the company in
accordance with the applicable related party administration
guidelines.
Shareholders
All of the shares in Elenia Verkko Oyj are owned by a Finnish
company, Elenia Oy.
owned by a consortium of infrastructure investors: Société
Foncière Européenne B.V.(SFE) and Allianz Infrastructure Lux-
embourg I S.à r.l. (AIL), Lynx Elton S.à r.l. (Lynx Elton), Allianz Eu-
ropean Infrastructure Acquisition Holding S.à r.l. (AEIAH), Elton
Ventures S.à r.l., Manco Investment Oy and Valtion Eläke-
rahasto (VER).
SFE and AIL are fully indirect subsidiaries of Allianz SE, and
therefore members of the Allianz Group. AEIAH is an invest-
ment vehicle of the Allianz European Infrastructure Fund S.A.
RAIF (AEIF), a fund managed by Allianz Capital Partners (ACP)
and Lynx Elton is a vehicle managed by CapMan Infra and ad-
vised by ACP. Elton Ventures S.à r.l. is an entity managed by
Macquarie Infrastructure and Real Assets (Europe) Limited
(MIRA) and whose majority shareholder is Macquarie Super
Core Infrastructure Fund SCSp. Manco Investment Oy is owned
by five Elenia's key management persons.
SUBSIDIARIES AND ASSOCIATES
Elenia Verkko Group was formed on January 1, 2020 as a result
of corporate restrucutrings. Elenia Verkko Oyj owns all the
shares in Elenia Innovations Oy.
SENIOR MANAGEMENT
Elenia Verkko Oyj is managed by its Board of Directors. Elenia's
senior management includes the Board of Directors and the
CEO. Elenia Group has not had any business transactions with
persons included in its senior management and Elenia Group
has not granted loans to these persons.
Five of the key management persons have invested into El-
ton Investment S.à r.l. which is the ultimate owner of Elenia Oy.
The management investment is channelled through a manage-
ment owned holding company Manco Investment Oy, which
owns approximately 0.3% of Elton Investment S.à r.l. after the
arrangement. The equity investment has been made at fair mar-
ket values.
MANAGEMENT TEAM
Management team of Elenia Verkko Oyj's parent company
Elenia Oy is included within the scope of the long-term incen-
tive plan. Description of the long-term incentive plan has been
disclosed in note 2.3.3
41
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
BUSINESS TRANSACTIONS
All transactions with related parties take place in an arm's
length manner.
Group companies have no intercompany transactions but
Elenia Verkko Oyj has transaction with a parent company Elenia
Oy and upper Finnish entity Elenia Group Oy. Transactions are
related to internal services and construction provided by Elenia
Oy and Elenia Group Oy to Elenia Verkko Oyj.
During the fiscal year 2024, the group did not have any
long-term loans with related parties.
The meeting of Elenia Oy's shareholders decided on 13 No-
vember 2020 the equity repayment of €550.0m based on the
interim financial statements as of September 30, 2020 to its
sole shareholder Elenia Investment S.à r.l. during 2020-2023.
During financial year 2023 the payment period was extended
until end of 2025.
The equity repayment was done from Unrestricted equity
and was transferred to short-term payables in December 2020.
The following table includes the specification of equity repay-
ments from 2021 to 2024.
Unrestricted eq-
uity repayment
liability 1 Jan
2021
Decrease during
2021-2023
EUR 1,000
Elenia Oy
550,000
550,000
42
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
6.4 EVENTS AFTER THE REPORTING PERIOD
Sanna Murtojärvi has been appointed as Chief People Officer and member of the management
team effective January 1
st
Elenia has entered into an EUR 100 million loan agreement with the Nordic Investment Bank
(“NIB”). The loan will be used to finance part of Elenia’s investment programme that is designed to
improve the security of supply and enable green transition. The loan has been fully drawn.
43
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
6.5
CONSOLIDATED STATEMENT OF PROFIT OR LOSS (ADJUSTED FOR COMPARABILITY)
ACCOUNTING POLICY
EUR 1,000
Note
1 Jan - 31 Dec 2024
1 Jan - 31 Dec 2023
Revenue
2.1.1
339,663
316,606
Items affecting comparability included in revenue
-116
-3,295
Other operating income
2.2.1
1,694
1,504
Materials and services
-69,792
-73,792
Employee benefit expenses
2.3.3
-4,213
-3,809
Other operating expenses
2.3.1
-33,909
-27,292
Operating expenses Total
-107,914
-104,893
Items affecting comparability included in operating expenses
1,997
1,587
EBITDA
233,443
213,216
EBITDA before Items affecting comparability
231,563
214,925
Depreciation and amortisation
3
-97,771
-92,854
Operating profit
135,672
120,363
Operating profit before Items affecting comparability
133,791
122,071
The purpose of the table is to illustrate the underlying profita-
bility of the business without any items affecting comparability
(defined in the finance documentation as “exceptional, one off,
non-recurring or extraordinary items”). The financial covenants
related to Group’s financing are calculated excluding Excep-
tional Items.
In 2024 in total EUR 1 881 thousand was recognised as
items affecting comparability. This amount consists of excep-
tional network losses of EUR 274 thousand, costs that relate to
legal actions due to regulatory changes of EUR 1 600 thousand,
temporary network upstream cost rebate of EUR 11 551 thou-
sand and exceptional costs EUR 7 796 thousand.
The maximum monthly average electricity price in Finland
during the previous 10-year period was 57 €/MWh as per June
2021. On this basis, costs from network losses exceeding 60
€/MWh on a monthly basis are treated as exceptional. In Sep-
tember 2023 and in May 2024 Finland’s transmission system
operator, Fingrid granted rebate for January, February and June
2024. In 2023 Fingrid granted rebate for January, February and
June and also in July, November and December. The rebate is
the result of significantly higher than expected congestion in-
come caused by electricity price differences at Finland’s board-
ers. Elenia’s distribution revenue decreased correspondingly by
the proportion of grid service fees invoiced directly from cus-
tomers connected to Elenia’s high voltage network.
In 2023 in total EUR 1 709 thousand was recognised as
items affecting comparability.
This amount consists of excep-
tional network losses of EUR 17 328 thousand, costs that relate
to legal actions due to regulatory changes of EUR 225 thou-
sand, temporary rebate to customers of EUR 19 431 thousand,
temporary network upstream cost rebate of EUR 3 295 thou-
sand and increased costs of electricity used in substations EUR
292 thousand.
44
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
PARENT COMPANY
FINANCIAL STATEMENTS (FAS)
45
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
PARENT COMPANY INCOME STATEMENT
EUR
Notes
1 Jan - 31 Dec 2024
1 Jan - 31 Dec 2023
Revenue
1.1
348,763,694.63
326,264,136.09
Other operating income
1.2
1,693,568.54
1,503,792.93
Materials and services
1.3
-69,792,141.05
-73,792,084.56
Personnel expenses
1.4
-4,245,235.93
-3,882,588.08
Depreciation, amortisation and impairment
1.5
-166,781,511.96
-161,851,539.70
Other operating expenses
1.6
-34,282,473.75
-27,267,977.19
Operating profit
75,355,900.48
60,973,739.49
Finance income and expenses
1.7
-49,976,665.89
-45,382,189.46
Profit / loss before appropriations and taxes
25,379,234.59
15,591,550.03
Appropriations
1.8
Change in accelerated depreciations
-122,727,932.64
-111,362,112.43
Group contributions
18,893,000.00
17,336,000.00
Income taxes
1.9
1,751,916.64
1,754,757.66
Profit / loss for the year
-76,703,781.41
-76,679,804.74
46
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
PARENT COMPANY BALANCE SHEET
EUR
Note
s
31 Dec 2024
31 Dec 2023
ASSETS
Non-current assets
Intangible assets
2.1
Intangible rights
22,321,344.87
22,449,136.77
Goodwill
1,987,841,752.70
2,043,837,295.10
Other capitalized long term expenditure
19,297,549.72
20,058,141.34
2,029,460,647.29
2,086,344,573.21
Tangible assets
2.2
Land and water areas
2,334,274.42
2,174,123.88
Buildings and constructions
236,860.17
248,129.97
Network
2,137,960,627.46
2,124,845,487.04
Machinery and equipments
62,265,924.09
44,465,200.35
Other tangible assets
0.00
222.80
Advance payments and construction in progress
12,216,354.26
19,352,342.95
2,215,014,040.40
2,191,085,506.99
Investments
2.3
Other shares and holdings
194,229.69
194,229.69
194,229.69
194,229.69
Total non-current assets
4,244,668,917.38
4,277,624,309.89
EUR
Note
s
31 Dec 2024
31 Dec 2023
Current assets
Long-term receivables
2.4
Loan receivables
1,582,937.54
2,373,707.39
1,582,937.54
2,373,707.39
Short-term receivables
2.4
Trade receivables
15,667,639.04
19,330,013.96
Receivables from group companies
18,933,783.82
17,394,771.35
Other receivables
464,809.89
468,211.08
Prepayments and accrued income
44,685,520.60
43,087,772.63
79,751,753.35
80,280,769.02
Cash and cash equivalents
2.4
42,744,688.22
60,161,110.56
Total current assets
124,079,379.11
142,815,586.97
TOTAL ASSETS
4,368,748,296.49
4,420,439,896.86
47
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
PARENT COMPANY BALANCE SHEET
EUR
Notes
31 Dec 2024
31 Dec 2023
EQUITY AND LIABILITIES
Capital and reserves
3.1
Subscribed capital
80,000.00
80,000.00
Non restricted equity
1,600,846,997.76
1,657,400,000.00
Retained earnings
-240,440,585.02
-163,760,780.28
Profit / Loss for the financial year
-76,703,781.41
-76,679,804.74
1,283,782,631.33
1,417,039,414.98
Cumulative accelerated depreciations
3.2
742,643,554.74
619,915,622.10
Liabilities
3.3
Non-current liabilitites
Connection fees
201,433,677.35
201,742,349.81
Bonds and notes
1,689,500,000.00
1,689,500,000.00
Loans from financial institutions
250,000,000.00
250,000,000.00
Deferred tax liabilities
89,421,305.41
93,679,462.81
2,230,354,982.76
2,234,921,812.62
Current liabilities
Trade payables
8,497,303.52
4,379,866.44
Liabilities to group companies
32,603,524.32
79,575,498.84
Other short-term liabilities
32,841,050.64
36,459,360.79
Accruals and deferred income
38,025,249.18
28,148,321.09
111,967,127.66
148,563,047.16
Total liabilities
2,342,322,110.42
2,383,484,859.78
TOTAL EQUITY AND LIABILITIES
4,368,748,296.49
4,420,439,896.86
48
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
PARENT COMPANY CASH FLOW STATEMENT
EUR
1 Jan - 31 Dec 2024
1 Jan - 31 Dec 2023
Cash flow fron operating activities
Profit / Loss before appropriations and taxes
25,379,234.59
15,591,550.03
Adjustments
Depreciation, amortisation and impairment
166,781,511.96
161,851,539.70
Finance income and expenses
49,976,665.89
45,382,189.46
Other adjustments
-62,829.36
0.00
Cash flow before change in working capital
242,074,583.08
222,825,279.19
Change in working capital:
Increase (-) / decrease (+) in non-interest bearing re-
ceivables
2,082,015.67
-9,946,677.72
Increase (+) / decrease (-) in non-interest bearing liabil-
ities
2,796,897.28
-9,376,252.30
Operating cash flow before financial items and taxes
246,953,496.03
203,502,349.17
Interest payments
-49,380,780.40
-42,186,123.18
Interests received
2,146,395.29
2,318,479.19
Payments for other finance items
-2,372,890.75
-2,555,981.04
Connection fee refunds
308,672.46
591,756.68
Taxes paid
-2,506,240.76
346,587.02
Cash flow from operating activities
195,148,651.87
162,017,067.84
EUR
1 Jan - 31 Dec 2024
1 Jan - 31 Dec 2023
Cash flow from investing activities
Capital expenditures
-130,051,074.21
-139,719,533.25
Proceeds from disposals of investments
150,000.00
6,504.30
Cash flow from investing activities
-129,901,074.21
-139,713,028.95
Cash flow from financing activities
Proceeds from long-term borrowings
0.00
100,000,000.00
Equity repayment
-100,000,000.00
-134,000,000.00
Group contributions received and paid
17,336,000.00
20,703,500.00
Cash flow from financing activities
-82,664,000.00
-13,296,500.00
Change in cash and cash equivalents
-17,416,422.34
9,007,538.89
Cash and cash equivalents 1 Jan
60,161,110.56
51,153,571.67
Cash and cash equivalents 31 Dec
42,744,688.22
60,161,110.56
In the balance sheet, the group bank account is presented as receivables from group companies, and in the
cash flow statement as liquid assets.
49
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
NOTES TO THE PARENT COMPANY FINANCIAL STATEMENTS
ACCOUNTING PRINCIPLES
The financial statements of Elenia Oy have been prepared in ac-
cordance with the Finnish Accounting Standards (FAS).
Transactions denominated in foreign currencies and deriva-
tive agreements
Transactions denominated in foreign currencies are recognised
at the rate prevailing at the time of the transaction. At the bal-
ance sheet date the receivables and liabilities in balance sheet
denominated in foreign currencies are converted to Euro using
the exchange rate prevailing at the balance sheet date. The pos-
sible currency exchange rate differences are recognised in fi-
nance income or costs or other operating costs in accordance
with the underlying item.
Presentation of bank balances
The company's group bank account is presented as either an
asset or liability from/to entities within the same group.
Deferred tax liabilities and receivables
Deferred tax liabilities or assets have been calculated for tem-
porary differences between taxation and the financial state-
ments using the tax rate established at the balance sheet date
for the following years. The balance sheet includes the deferred
tax liability in its entirety and the deferred tax asset in the
amount of the estimated probable receivable
Intangible and tangible assets
For tangible and intangible assets have been used direct acqui-
sition prices which have been deducted with planned deprecia-
tions. Depreciations according to the plan are linear and are
based on the following assets economical lifetimes:
Intangible fixed assets
3–30 years
Goodwill
40 years
Other capitalized long term expenditures
5–25 years
Buildings and construction
15–50 years
Transmission network
25–40 years
Distribution network
10–30 years
Machinery and equipment
3–30 years
Connection fees are non-refundable and therefore they have
been booked as revenue in the profit and loss account.
1 NOTES TO INCOME STATEMENT
1.1 Revenue
EUR 1,000
2024
2023
Distribution income
336,684
313,149
Contracting income
1,286
2,375
Connection fee income
10,794
10,724
Other sales income
340
319
Outage compensation
-341
-302
Total
348,764
326,264
1.2 Other operating income
EUR 1,000
2024
2023
Revenue from collection of trade receiva-
bles
1,019
943
Gains on the sale of scrap and used fixed
assets
63
0
Other operating income
612
561
Total
1,694
1,504
50
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
1.3 Materials and services
EUR 1,000
2024
2023
Grid costs
-24,878
-16,210
Network losses
-16,331
-32,862
External services
-26,689
-22,985
Materials
-1,895
-1,735
Total
-69,792
-73,792
1.4 Personnel expenses
EUR 1,000
2024
2023
Salaries
-3,523
-3,166
Pension expenses
-663
-642
Other employee expenses
-60
-75
Total
-4,245
-3,883
Salaries and remuneration were not paid to CEO in 2024 or 2023.
Average number of personnel during the fi-
nancial year
75
75
1.5 Depreciations according to the
plan
EUR 1,000
2024
2023
Impairment
-1,917
-2,351
Intangible fixed assets
-1,101
-1,119
Goodwill
-55,996
-55,996
Other capitalized long term expenditure
-2,704
-2,505
Buildings and constructions
-11
-12
Network
-97,912
-95,091
Machinery and equipments
-7,142
-4,779
Total
-166,782
-161,852
1.6 Other operating expenses
EUR 1,000
2024
2023
Lease expenses
-812
-955
Other external services
-24,439
-21,795
Other operating expenses
-9,032
-4,518
Total
-34,282
-27,268
AUDIT CHARGES
EUR 1,000
2024
2023
Auditing fees
-233
-160
Fees for tax services
-4
-7
Fees for other services
-31
-15
Total
-268
-182
1.7 Financial income and expenses
EUR 1,000
2024
2023
Interest and other financial income
Other interest and financial income
2,146
2,331
Total
2,146
2,331
Interest and other financial expenses
Interest expenses
-48,955
-45,511
Other financial expenses
-3,168
-2,202
Total
-52,123
-47,713
Total financial income and expenses
-49,977
-45,382
1.8 Appropriations
EUR 1,000
2024
2023
Change in accelerated depreciations
-122,728
-111,362
Group contribution received
18,893
17,336
Total
-103,835
-94,026
1.9 Income taxes
EUR 1,000
2024
2023
Income taxes for the financial period
-2,503
-2,504
Adjustment in income taxes for the previ-
ous periods
-3
1
Change in deferred taxes
4,258
4,258
Total
1,752
1,755
51
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
2 NOTES TO THE BALANCE SHEET ASSETS
2.1 Intangible assets
INTANGIBLE RIGHTS
EUR 1,000
2024
2023
Cost 1 Jan
40,469
39,678
Investments
973
790
Cost 31 Dec
41,442
40,469
Accumulated depreciation 1 Jan
-18,020
-16,900
Depreciation according to the plan
-1,101
-1,119
Book value 31 Dec
22,321
22,449
GOODWILL
EUR 1,000
2024
2023
Cost 1 Jan
2,259,730
2,259,730
Cost 31 Dec
2,259,730
2,259,730
Accumulated depreciation 1 Jan
-215,893
-159,897
Depreciation according to the plan
-55,996
-55,996
Book value 31 Dec
1,987,842
2,043,837
OTHER CAPITALIZED LONG-TERM EX-
PENDITURE
EUR 1,000
2024
2023
Cost 1 Jan
337,990
334,349
Investments
1,943
4,007
Disposals
0
-366
Cost 31 Dec
339,933
337,990
Accumulated depreciation 1 Jan
-317,932
-315,427
Depreciation according to the plan
-2,704
-2,505
Book value 31 Dec
19,298
20,058
2.2 Tangible assets
LAND AND WATER AREAS
EUR 1,000
2024
2023
Cost 1 Jan
2,175
2,145
Investments
160
30
Cost 31 Dec
2,335
2,175
Impairment
-1
-1
Book value 31 Dec
2,334
2,174
BUILDINGS AND CONSTRUCTIONS
EUR 1,000
2024
2023
Cost 1 Jan
3,119
3,119
Investments
0
7
Disposals
0
-7
Cost 31 Dec
3,119
3,119
Accumulated depreciation 1 Jan
-2,871
-2,860
Depreciation according to the plan
-11
-11
Book value 31 Dec
237
248
NETWORK
EUR 1,000
2024
2023
Cost 1 Jan
3,349,535
3,242,825
Investments
113,030
112,229
Disposals
-4,137
-5,519
Cost 31 Dec
3,458,428
3,349,535
Accumulated depreciation 1 Jan
-1,224,689
-1,132,768
Impairment
-1,916
-2,350
Disposals
4,050
5,519
Depreciation according to the plan
-97,912
-95,091
Book value 31 Dec
2,137,961
2,124,845
MACHINERY AND EQUIPMENT
EUR 1,000
2024
2023
Cost 1 Jan
108,020
84,227
Investments
24,940
23,793
Cost 31 Dec
132,963
108,020
Accumulated depreciation 1 Jan
-63,555
-58,776
Depreciation according to the plan
-7,142
-4,779
Book value 31 Dec
62,266
44,465
OTHER TANGIBLE ASSETS
EUR 1,000
2024
2023
Cost 1 Jan
56
56
Cost 31 Dec
56
56
Accumulated depreciation 1 Jan
-56
-55
Depreciation according to the plan
0
-1
ADVANCE PAYMENTS AND CONSTRUCTION IN PRO-
GRESS
EUR 1,000
2024
2023
Cost 1 Jan
19,352
20,146
Increase
134
-384
Decrease
-7,270
-410
Book value 31 Dec
12,216
19,352
52
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
2.3 Investments
OTHER SHARES AND HOLDINGS
EUR 1,000
2024
2023
Cost 1 Jan
194
194
Book value 31 Dec
194
194
2.4 Receivables
LONG-TERM RECEIVABLES
EUR 1,000
2024
2023
Other receivables
1,583
2,374
Long-term receivables total
1,583
2,374
SHORT-TERM RECEIVABLES
Receivables from group companies
EUR 1,000
2024
2023
Accrued income
41
58
Group contribution receivables
18,893
17,336
Group bank account
Receivables from group companies total
18,934
17,395
External receivables
EUR 1,000
2024
2023
Trade receivables
15,668
19,330
Other short-term receivables
465
468
Accrued income
44,686
43,088
External receivables total
60,818
62,886
External accrued income
EUR 1,000
2024
2023
Sales accruals
43,950
42,474
Other accrued income and receivables
176
50
External accrued income total
44,686
43,088
Short term receivables total
79,752
80,281
Total receivables
81,335
82,654
Cash and cash equivalents
42,745
60,161
53
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
3 NOTES TO THE BALANCE SHEETS EQUITY AND LIABILI-
TIES
3.1 Capital and reserves
EUR 1,000
2024
2023
Subscribed capital
80
80
Non restricted equity 1 Jan
1,657,400
1,657,400
Equity repayment
-56,553
0
Non restricted equity 31 Dec
1,600,847
1,657,400
Retained earnings 1 Jan
-240,441
-163,761
Profit / Loss for the the financial year
-76,704
-76,680
Total capital and reserves
1,283,783
1,417,039
Distributable equity
1,283,703
1,416,959
3.2 Cumulative accelerated depreci-
ations
EUR 1,000
2024
2023
Cumulative accelerated depreciations
742,644
619,916
Accelerated depreciations include deferred tax liability
of EUR 148 529 thousand.
3.3 Liabilities
NON-CURRENT LIABILITIES
EUR 1,000
2024
2023
Connection fee liability 1 Jan
201,742
202,334
Connection fee refunds
-309
-592
Connection fee liability 31 Dec
201,434
201,742
Bonds and notes
1,689,500
1,689,500
Loans from financial institutions
250,000
250,000
Deferred tax liabilities
89,421
93,679
Total non-current liabilities
2,230,355
2,234,922
Elenia Verkko Oyj has recognized a deferred tax liability for the merger
loss allocated to the electricity network.
CURRENT LIABILITIES
EUR 1,000
2024
2023
Trade payables
8,497
4,380
Other short term liabilities
32,841
36,459
Accrued expenses
Salaries and social expenses
1,768
1,688
Accrued interest expenses
16,225
16,660
Other accrued expenses
20,033
9,801
Total
38,025
28,148
Liabilities to group companies
Accrued expenses
4,783
2,925
Equity repayment liability
0
43,447
Group bank account
27,821
33,203
Total
32,604
79,575
Total current liabilities
111,967
148,563
Total liabilities
2,342,322
2,383,485
54
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
Maturity breakdown of financial liabilities
31 December 2024
1,000 EUR
Effective interest
rate
1-5 years
Maturity over 5
years
Total
Bonds
4.03%
692,000
479,000
1,171,000
Notes
1.96%
107,500
411,000
518,500
Loans from financial institutions
2.71%
50,000
200,000
250,000
Total interest-bearing non-current liabilities
849,500
1,090,000
1,939,500
Maturity breakdown of financial liabilities
31 December 2023
1,000 EUR
Effective interest
rate
1-5 years
Maturity over 5
years
Total
Bonds
4.84%
640,000
531,000
1,171,000
Notes
1.98%
79,000
439,500
518,500
Loans from financial institutions
2.71%
50,000
200,000
250,000
Total interest-bearing non-current liabilities
769,000
1,170,500
1,939,500
55
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
3.4 Liabilities and quarantees for
debts
EUR 1,000
2024
2023
Provided on behalf of own and group liabil-
ities
Guarantees
Floating charges
9,000,000
9,000,000
Mortgages
202,000
202,000
Leasing agreements
Within one year
142
142
After one year but not more than five
years
45
143
Total
187
284
Other own liabilities
Connection fees not included in the bal-
ance sheet values
85,114
85,114
Group bank accounts have been pledged as
security for loans from financial institutions
and bonds.
56
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
Shares and Holdings
a
a
a
a
a
Domicile
Share
Vote share
Share of
ownership
Nominal value
EUR 1,000
Book value
EUR 1,000
Subsidiary
Elenia Innovations Oy
Tampere
100%
100%
100%
0
0
Other shares and holdings
194
194
57
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
ELECTRICITY NETWORK BUSINESS DIFFERENTIATED
STATEMENT OF PROFIT AND LOSS
1 000 EUR
1.1.–31.12.2024
1.1.–31.12.2023
Revenue
348,561
326,093
Other operating income
1,662
1,456
Materials and services
Materials and goods
Purchace during the financial period
Network losses
-16,331
-32,862
Other materials
-1,835
-1,689
Services
Grid costs
-26,262
-16,210
Other external services
-26,605
-22,921
Personnel expenses
Salaries
-3,478
-3,119
Other personnel related costs
-709
-702
Depreciation, amortisation and impairment
Impairment of network
-1,916
-2,350
Merger loss
-90,988
-90,988
Network assets
-71,876
-66,841
Other assets
-2,001
-1,673
Other operating expenses
Lease expenses
-413
-359
Network rents and network leasing expenses
-377
-574
Other operating expenses
-32,085
-26,319
Operating profit
75,349
60,941
1 000 EUR
1.1.–31.12.2024
1.1.–31.12.2023
Finance income and expenses
Interest and other financial income
From group companies
From other companies
2,146
2,331
Interest and other financial expenses
From other companies
-52,123
-47,713
Profit / loss before appropriations and taxes
25,372
15,559
Appropriations
Change in accelerated depreciations
Network assets
-121,916
-110,159
Other assets
-876
-1,289
Group contributions
Group contribution received
18,893
17,336
Income taxes
1,752
1,755
Loss for the year
-76,775
-76,798
58
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
ELECTRICITY NETWORK BUSINESS DIFFERENTIATED
BALANCE SHEET
1 000 EUR
12/31/2024
31.12.2023
ASSETS
Non-current assets
Intangible assets
Intangible rights
24,291
25,258
Goodwill
1,987,842
2,043,837
Other capitalized long term expenditure
17,328
17,249
2,029,461
2,086,345
Tangible assets
Land and water areas
190
190
Buildings and constructions
237
248
Electricity network
1,466,762
1,400,476
Merger losses
734,840
769,832
Machinery and equipments
769
986
Advance payments and construction in progress
12,216
19,352
2,215,014
2,191,086
Total non-current assets
4,244,475
4,277,430
1 000 EUR
12/31/2024
31.12.2023
Current assets
Long-term receivables
Other long-term receivables
1,583
2,374
1,583
2,374
Short-term receivables
Trade receivables
15,668
19,330
Receivables from group companies
18,934
17,395
Other receivables
228
231
Prepayments and accrued income
44,686
43,088
79,515
80,044
Cash and cash equivalents
28,985
0
Total current assets
110,083
82,418
TOTAL ASSETS
4,354,558
4,359,848
59
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
ELECTRICITY NETWORK BUSINESS DIFFERENTIATED
BALANCE SHEET
1 000 EUR
12/31/2024
31.12.2023
Capital and reserves
Subscribed capital
80
80
Non restricted equity
1,600,847
1,657,400
Retained earnings
-226,534
-149,737
Profit / Loss for the financial year
-76,775
-76,798
1,297,618
1,430,946
Cumulative accelerated depreciations
Cumulative accelerated depreciations, network assets
736,809
614,893
Cumulative accelerated depreciations, other assets
5,643
4,767
742,452
619,660
Liabilities
Non-current liabilitites
Non-current liabilities, interest-free
Connection fees
201,434
201,742
Deferred tax liability
89,421
93,679
Non-current liabilities, interest-bearing
Loans from financial institutions and other long-term loans
1,939,500
1,939,500
2,230,355
2,234,922
Current liabilities
Current liabilities, interest-free
Trade payables
8,484
4,374
Liabilities to group companies
4,783
5,338
Other short-term liabilities
32,841
36,459
Accruals and deferred income
38,025
28,148
84,133
74,320
Total liabilities
2,314,488
2,309,242
TOTAL EQUITY AND LIABILITIES
4,354,558
4,359,848
60
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
NOTES TO DIFFERENTIATED FINANCIAL STATEMENTS
According to the Electricity Market Act, a company operating on electricity market must differenti-
ate its electricity network business from other business activities. This differentiation requirement
also applies to legally separated network operator. Only items that are relevant for network busi-
ness operations are included in the differentiated financial statements. The differentiated financial
statements of electricity business should be published and attached to company's official financial
statements.
Differentiated financial statements include income statement and balance sheet, which should
be derived from the accounting.
In addition to Electricity Network business Elenia Verkko Oyj contains Elenia group's financing
and administrative related services and items.
Differentiation principles
Income statement items have been allocated into the differentiated business directly on the basis
of accounting.
Balance sheet items have been allocated to the differentiated business directly on the basis of
accounting or using an allocation key.
Depreciation principles for intangible and tangible assets are based on Elenia Verkko Oyj's de-
preciations rules which have been presented in the beginning of parent company notes.
In connection with its routine end-of-regulatory-period review, the Energy Authority (the “EA”)
has determined that Elenia Verkko Oyj has incorrectly presented two items in its differentiated ac-
counts. These items were created in connection with the sale of the district heating business in
2019 and Elenia group’s reorganization in 2020. In the same context, the EA specified the account-
ing treatment of the reserve for invested unrestricted equity as well as cash and cash equivalents
in the differentiated accounts.
On February 4
th
change the accounting treatment accordingly and as further detailed below. The decision pertains
solely to information presented in this note and does not require the restatement of historical fi-
nancial statements. Elenia does not concur with the EA on their view of the correct accounting
treatment and will appeal to the market court. However, despite the upcoming market court case,
Elenia is obliged to follow EA’s instructions at this time.
Elenia Verkko Oyj has made changes to the differentiation principles of financial statements for
the financial period 1 January – 31 December 2024 and its comparative information based on the
draft decision received from the EA on February 4
th
Deferred tax liability (EUR 89.4 million at the end of the financial period ended 31 December
2024 / EUR 93.7 million at the end of the financial period ended 31 December 2023) and change
in deferred taxes during the year (EUR 4.3 million during the financial period 2024 / EUR 14.9 mil-
lion during the financial periods 2020–2023) resulting from group restructurings have been allo-
cated to network business.
As a result of the sale of the district heating business in 2019, the liability related to the return
of equity to the parent company Elenia Oy in the financial years 2020–2023 (EUR 0 at the end of
the financial year ended 31 December 2024 / EUR 43.4 million at the end of the financial year
ended 31 December 2023) has been allocated partly to the network business (EUR 2.4 million at
the end of the financial year ended 31 December 2023) and partly to other than network business
(EUR 41.0 million).
The non restricted equity (EUR 1,600.8 million at the end of the financial year ended 31 De-
cember 2024 / EUR 1,657.4 million at the end of the financial year ended 31 December 2023) has
been allocated in its entirety to the network business.
The interest income received by Elenia Verkko Oyj from the loan receivable from Elenia Group
Oy in the financial years 2020 and 2021 has been allocated to other than network business. The
impact of the change on retained earnings for both the financial years 1.1.-31.12.2024 and 1.1.-
31.12.2023 is EUR 2.6 million.
Any reconciliations between the balance sheets of the differentiated financial statements have
been made to the item cash and cash equivalents.
61
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
Electricity Network business' key figures
1 000 EUR
2024
2023
INVESTMENTS
Intangible assets
Intangible rights
1,066
1,248
Other capitalized long term expenditures
Connection fees
1,607
2,400
Other capitalized long-term expenditures
244
783
Tangible assets of electricity network business
Land and water areas
160
30
Electricity network
111,113
109,570
Demolition costs
1,917
2,659
Meters
24,943
23,221
Other tangible assets
0
572
OTHER KEY FIGURES
Refundable connection fees
201,434
201,742
Capital gain on the sales of a power line included in the other operating income
63
-
Mandatory outage compensations
4,804
726
EU DSO Entity membership fees
5
3
R&D expenses in the profit and loss account during the financial year
224
431
Operative expenses included in security of supply incentive during the financial year
Demolition costs in the balance sheet at the end of the financial year
41,326
41,062
Return On Equity, network business (%)
1.43%
0.90%
Average number of personnel in the network business
75
75
62
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
SIGNATURES TO THE FINANCIAL
STATEMENTS
Tampere, 12 March 2025
Jorma Myllymäki
Chairman of the Board of Directors
CEO
Jarkko Kohtala
Anne-Marie Malmberg
Ville Sihvola
Tommi Valento
AUDITORS NOTE
A report on the audit carried out has been issued today.
Tampere, 13 March 2025
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
KHT
63
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
AUDITOR’S REPORT
(TRANSLATION OF THE
FINNISH ORIGINAL)
To the Annual General Meeting of Elenia Verkko Oyj
REPORT OF THE AUDIT OF THE FINANCIAL STATEMENTS
Opinion
We have audited the financial statements of Elenia Verkko Oyj
(business identity code 3001882-6) for the year ended 31 De-
cember, 2024. The financial statements comprise the consoli-
dated balance sheet, income statement, statement of compre-
hensive income, statement of changes in equity, statement of
cash flows and notes, including material accounting policy infor-
mation, as well as the parent company’s balance sheet, income
statement, statement of cash flows and notes.
In our opinion
●
the consolidated financial statements give a true
and fair view of the group’s financial position, fi-
nancial performance and cash flows in accordance
with IFRS Accounting Standards as adopted by the
EU.
●
the financial statements give a true and fair view of
the parent company’s financial performance and fi-
nancial position in accordance with the laws and
regulations governing the preparation of financial
statements in Finland and comply with statutory
requirements.
Our opinion is consistent with the additional report submitted
to the Board of Directors.
Basis for Opinion
We conducted our audit in accordance with good auditing prac-
tice in Finland. Our responsibilities under good auditing practice
are further described in the
Auditor’s Responsibilities for the Audit
of Financial Statements
We are independent of the parent company and of the
group companies in accordance with the ethical requirements
that are applicable in Finland and are relevant to our audit, and
we have fulfilled our other ethical responsibilities in accordance
with these requirements.
In our best knowledge and understanding, the non-audit
services that we have provided to the parent company and
group companies are in compliance with laws and regulations
applicable in Finland regarding these services, and we have not
provided any prohibited non-audit services referred to in Article
5(1) of regulation (EU) 537/2014. The non-audit services that
we have provided have been disclosed in note 2.3.1. to the con-
solidated financial statements.
We believe that the audit evidence we have obtained is suf-
ficient and appropriate to provide a basis for our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional
judgment, were of most significance in our audit of the financial
statements of the current period. These matters were ad-
dressed in the context of our audit of the financial statements
as a whole, and in forming our opinion thereon, and we do not
provide a separate opinion on these matters.
We have fulfilled the responsibilities described in the
Audi-
tor’s responsibilities for the audit of the financial statements
tion of our report, including in relation to these matters. Ac-
cordingly, our audit included the performance of procedures de-
signed to respond to our assessment of the risks of material
misstatement of the financial statements. The results of our au-
dit procedures, including the procedures performed to address
the matters below, provide the basis for our audit opinion on
the accompanying financial statements.
We have also addressed the risk of management override of
internal controls. This includes consideration of whether there
was evidence of management bias that represented a risk of
material misstatement due to fraud.
There are no significant risks of material misstatement re-
ferred to in EU regulation No 537/2014, point (c) of Article
10(2) relating to the consolidated financial statements or the
parent company’s financial statements.
Key Audit Matter
How our audit addressed the
Key Audit Matter
Revenue Recognition
We refer to the Group’s ac-
counting policies and the
notes to the consolidated
financial statements 2.1.
Revenue from the distri-
bution of electricity is rec-
ognized at the time of de-
livery.
Revenue includes large
volume of transactions
and the Group focuses on
revenue as a key perfor-
mance measure which
could create an incentive
for premature revenue
recognition.
Our audit procedures included,
among others:
●
We assessed the rea-
sonableness of the
Group’s accounting
policies over revenue
recognition and com-
pliance with applicable
accounting standards.
●
We assessed the IT-
systems, processes,
and methods for reve-
nue recognition.
●
We examined the rec-
orded sales transac-
tions during the year
against underlying
documents.
●
We examined the
sales accruals.
●
We obtained confir-
mations of open ac-
counts receivable bal-
ances at year end from
customers and ana-
lyzed credit invoices
issued after the bal-
ance sheet date.
●
We performed data-
analytics procedures
on revenues.
64
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
●
We considered the ap-
propriateness of the
Group’s disclosures in
respect of revenues.
Responsibilities of the Board of Directors and the Managing
Director for the Financial Statements
The Board of Directors and the Managing Director are responsi-
ble for the preparation of consolidated financial statements that
give a true and fair view in accordance with International Finan-
cial Reporting Standards (IFRS) as adopted by the EU, and of fi-
nancial statements that give a true and fair view in accordance
with the laws and regulations governing the preparation of fi-
nancial statements in Finland and comply with statutory re-
quirements. The Board of Directors and the Managing Director
are also responsible for such internal control as they determine
is necessary to enable the preparation of financial statements
that are free from material misstatement, whether due to fraud
or error.
In preparing the financial statements, the Board of Directors
and the Managing Director are responsible for assessing the
parent company’s and the group’s ability to continue as going
concern, disclosing, as applicable, matters relating to going con-
cern and using the going concern basis of accounting. The fi-
nancial statements are prepared using the going concern basis
of accounting unless there is an intention to liquidate the parent
company or the group or cease operations, or there is no realis-
tic alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Sta-
tements
Our objectives are to obtain reasonable assurance on whether
the financial statements as a whole are free from material mis-
statement, whether due to fraud or error, and to issue an audi-
tor’s report that includes our opinion. Reasonable assurance is a
high level of assurance, but is not a guarantee that an audit con-
ducted in accordance with good auditing practice will always
detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, indi-
vidually or in aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the basis of
the financial statements.
As part of an audit in accordance with good auditing practice,
we exercise professional judgment and maintain professional
skepticism throughout the audit. We also:
●
Identify and assess the risks of material misstatement
of the financial statements, whether due to fraud or
error, design and perform audit procedures responsive
to those risks, and obtain audit evidence that is suffi-
cient and appropriate to provide a basis for our opin-
ion. 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, in-
tentional omissions, misrepresentations, or the over-
ride of internal control.
●
Obtain an understanding of internal control relevant to
the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the pur-
pose of expressing an opinion on the effectiveness of
the parent company’s or the group’s internal control.
●
Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting estimates
and related disclosures made by management.
●
Conclude on the appropriateness of the Board of Di-
rectors’ and the Managing Director’s use of the going
concern basis of accounting and based on the audit ev-
idence obtained, whether a material uncertainty exists
related to events or conditions that may cast signifi-
cant doubt on the parent company’s or the group’s
ability to continue as a going concern. If we conclude
that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related
disclosures in the financial statements or, if such dis-
closures are inadequate, to modify our opinion. Our
conclusions are based 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.
●
Evaluate the overall presentation, structure and con-
tent of the financial statements, including the disclo-
sures, and whether the financial statements represent
the underlying transactions and events so that the fi-
nancial statements give a true and fair view.
●
Obtain sufficient appropriate audit evidence regarding
the financial information of the entities or business ac-
tivities within the group to express an opinion on the
consolidated financial statements. We are responsible
for the direction, supervision and performance of the
group audit. We remain solely responsible for our au-
dit opinion.
We communicate with those charged with governance regard-
ing, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant de-
ficiencies in internal control that we identify during our audit.
We also provide those charged with governance with a
statement that we have complied with relevant ethical require-
ments regarding independence, and 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 of most sig-
nificance in the audit of the financial statements of the current
period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation
precludes public disclosure about the matter or when, in ex-
tremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse conse-
quences of doing so would reasonably be expected to outweigh
the public interest benefits of such communication.
OTHER REPORTING REQUIREMENTS
Information on our audit engagement
We were first appointed as auditors on 13.5.2019, and our ap-
pointment represents a total period of uninterrupted engage-
ment of 6 years. Elenia Verkko Oyj has been a public interest
entity since 1.7.2020.
Other information
65
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
The Board of Directors and the Managing Director are responsi-
ble for the other information. The other information comprises
the report of the Board of Directors and the information in-
cluded in the Annual Report, but does not include the financial
statements and our auditor’s report thereon. We have obtained
the report of the Board of Directors prior to the date of this au-
ditor’s report, and the Annual Report is expected to be made
available to us after that date.
Our opinion on the financial statements does not cover the
other information.
In connection with our audit of the financial statements, our re-
sponsibility is to read the other information identified above
and, in doing so, consider whether the other information is ma-
terially inconsistent with the financial statements or our
knowledge obtained in the audit, or otherwise appears to be
materially misstated. With respect to report of the Board of Di-
rectors, our responsibility also includes considering whether the
report of the Board of Directors has been prepared in accord-
ance with the applicable laws and regulations.
In our opinion, the information in the report of the Board of Di-
rectors is consistent with the information in the financial state-
ments and the report of the Board of Directors has been pre-
pared in accordance with the applicable laws and regulations.
If, based on the work we have performed on the other infor-
mation that we obtained prior to the date of this auditor’s re-
port, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have
nothing to report in this regard.
Tampere March 13
th
, 2025
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
Authorized Public Accountant
66
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
INDEPENDENT AUDITOR’S REPORT ON ELENIA
VERKKO OYJ’S ESEF-CONSOLIDATED
FINANCIAL STATEMENTS
(
TRANSLATION OF THE FINNISH
ORIGINAL
)
To the Board of Directors of Elenia Verkko Oyj
We have performed a reasonable assurance engagement on the
financial statements 743700XGU4ZB5G4RPK50-2024-12-
31.zip of Elenia Verkko Oyj (y-identifier: 3001882-6) that have
been prepared in accordance with the Commission’s regulatory
technical standard for the financial year ended 31.12.2024.
R
ESPONSIBILITIES OF THE
B
OARD OF
D
IRECTORS AND THE
M
ANAG-
ING
D
IRECTOR
The Board of Directors and the Managing Director are responsi-
ble for the preparation of the company’s report of Board of Di-
rectors and financial statements (the ESEF financial statements)
in such a way that they comply with the requirements of the
Commission’s regulatory technical standard. This responsibility
includes:
preparing the ESEF financial statements in XHTML format in
accordance with Article 3 of the Commission’s regulatory tech-
nical standard
tagging the primary financial statements, notes and com-
pany’s identification data in the consolidated financial state-
ments that are included in the ESEF financial statements with
iXBRL tags in accordance with Article 4 of the Commission’s
regulatory technical standard and
ensuring the consistency between the ESEF financial state-
ments and the audited financial statements.
The Board of Directors and the Managing Director are also
responsible for such internal control as they determine is neces-
sary to enable the preparation of ESEF financial statements in
accordance the requirements of the Commission’s regulatory
technical standard.
A
UDITOR
’
S
I
NDEPENDENCE AND
Q
UALITY
M
ANAGEMENT
We are independent of the company in accordance with the
ethical requirements that are applicable in Finland and are rele-
vant to the engagement we have performed, and we have ful-
filled our other ethical responsibilities in accordance with these
requirements.
The firm applies International Standard on Quality Manage-
ment (ISQM) 1, which requires the firm to design, implement
and operate a system of quality management including policies
or procedures regarding compliance with ethical requirements,
professional standards and applicable legal and regulatory re-
quirements.
A
UDITOR
’
S
R
ESPONSIBILITIES
Our responsibility is to, in accordance with Chapter 7, Section 8
of the Securities Markets Act, provide assurance on the finan-
cial statements that have been prepared in accordance with the
Commission’s technical regulatory standard. We express an
opinion on whether the consolidated financial statements that
are included in the ESEF financial statements have been tagged,
in all material respects, in accordance with the requirements of
Article 4 of the Commission's regulatory technical standard.
Our responsibility is to indicate in our opinion to what ex-
tent the assurance has been provided. We conducted a reason-
able assurance engagement in accordance with International
Standard on Assurance Engagements (ISAE) 3000.
The engagement includes procedures to obtain evidence on:
whether the primary financial statements in the consolidated fi-
nancial statements that are included in the ESEF financial state-
ments have been tagged, in all material respects, with iXBRL
tags in accordance with the requirements of Article 4 of the
Commission's regulatory technical standard and whether the
notes and company's identification data in the consolidated fi-
nancial statements that are included in the ESEF financial state-
ments have been tagged, in all material respects,
with iXBRL tags in accordance with the requirements of Article
4 of the Commission's regulatory technical standard and
whether there is consistency between the ESEF financial state-
ments and the audited financial statements.
The nature, timing and extent of the selected procedures
depend on the auditor’s judgement. This includes an assessment
of the risk of material deviations due to fraud or error from the
requirements of the Commission’s technical regulatory stand-
ard.
We believe that the evidence we have obtained is sufficient
and appropriate to provide a basis for our opinion.
O
PINION
Our opinion pursuant to Chapter 7, Section 8 of the Securities
Markets Act is that the primary financial statements, notes and
company's identification data in the consolidated financial state-
ments that are included in the ESEF financial statements of
Elenia Verkko Oyj 743700XGU4ZB5G4RPK50-2024-12-31.zip
for the financial year ended 31.12.2024 have been tagged, in all
material respects, in accordance with the requirements of the
Commission's regulatory technical standard.
Our opinion on the audit of the consolidated financial state-
ments of Elenia Verkko Oyj for the financial year ended
31.12.2024 has been expressed in our auditor's report
13.3.2025. With this report we do not express an opinion on
the audit of the consolidated financial statements nor express
another assurance conclusion.
Helsinki 17.3.2025
Ernst & Young Oy
Authorized Public Accountant Firm
Miikka Hietala
67
CONTENTS
Notes to the consolidated
financial statements
1
2
3
4
5
6
Authorized Public Accountant