1 Accounting principles

Terrafame Ltd is domiciled in Sotkamo, Finland. Terrafame is a group company of Finnish Minerals Group, whose parent company is Finnish Minerals Group, Helsinki, Finland. Copies of the consolidated financial statements are available at the office of Finnish Minerals Group, and they can be viewed on Terrafame’s website at www.terrafame.com

Basis of preparation

The company has prepared its annual accounts in accordance with Finnish accounting legislation and Finnish Accounting Standards (FAS). The financial statement information is reported in tables and related texts in thousands of euros and in the report of the Board of Directors in millions of euros to one decimal place. The comparative figures reported in brackets are figures for the financial period 2017. All the presented figures have been rounded according to general rounding rules, so the sum of the individual figures may be different from the sum presented. Key figures have been calculated using exact values. Comparative information has been adjusted where necessary to correspond with the information of the year under review.

Translation of items denominated in foreign currencies

Transactions in foreign currencies are entered in euros at the rates prevailing at the transaction date or average rates provided by central banks. Foreign currency-denominated receivables and liabilities have been translated into euros using the rates prevailing at the balance sheet date. Foreign exchange gains and losses related to business operations are included in the corresponding items of net sales, operating expenses or financial income and expenses.

Revenue recognition

Revenue is recognised from a sale when evidence of an arrangement exists, the title has been transferred to the customer, the price is determinable and collection of the sales price is reasonably assured. Revenue is recognised net of sales-related foreign exchange gains and losses and any applicable sales taxes. Most sales are priced in US dollars. The time of revenue recognition is determined on the basis of the terms of delivery used.

A large proportion of the company's production is sold under long-term contracts, but sales revenue is only recognised on individual sales when persuasive evidence exists that all of the following criteria have been met:

  • all material risks and rewards of ownership have been transferred to the buyer;
  • there is no continuing managerial involvement to the degree usually associated with ownership or effective control over goods sold;
  • the amount of revenue can be reliably determined;
  • the costs incurred or to be incurred in respect of the sale can be reliably determined; and
  • the flow of future economic benefits to the seller is probable.

Upon delivery, a preliminary invoice is drawn up based on preliminary analysis and measurement results and the market prices of the month preceding the month of delivery. Preliminary invoices are entered as sales. The final analysis and measurement results are normally obtained within a few months. Any preliminary invoices are adjusted based on the final analysis and measurement results. Furthermore, the prices of delivered metals are adjusted to correspond to the market prices of the agreed pricing period.

With regard to preliminary invoices for which final analysis and measurement results have not yet been obtained, the sales prices and euro-denominated valuations are adjusted so as to correspond to the average market prices of the month of the financial statements and the exchange rates at the date of closure of the accounts. With regard to these deliveries, the company also considers the need to make write-downs due to the changes in analysis and measurement results. Such write-downs were not made in the financial statements of 31 December 2018. The metal hedges for metal tonnes sold have been taken into account in the valuation of sales.

Pension obligations

The company has pension schemes in accordance with local conditions and practices. These are arranged with an external insurance company. Pension costs are entered as expenses in the year in which they occur.

Borrowing costs

Borrowing costs are recognised as expenses in the period during which they are incurred.

Deferred tax assets and liabilities

Deferred tax assets and liabilities are calculated on temporary differences between the book value and taxable value, using the tax rates enacted by the balance sheet date. Deferred tax assets arising from taxable losses carried forward are recognised up to the amount for which there is likely to be taxable income in the future, and against which the temporary difference can be used. Deferred tax assets or tax liabilities with respect to the fair values of derivative contracts have been recognised in the company’s balance sheet.

Tangible assets

Tangible assets have been recognised in the balance sheet at cost, less planned depreciation. Non-current tangible assets include, among other things, buildings, infrastructure, machinery and equipment used in mining operations, laboratory equipment, vehicles, roads, power lines and structures for environmental protection. Acquisition cost includes expenditure that is directly attributable to the acquisition, construction or production of the item.

Non-current assets bought from the bankruptcy estate of Talvivaara Sotkamo Ltd on 15 August 2015 have been amortised in accordance with the original depreciation plan by applying the normal planned depreciation periods, with the exception that a write-down of approximately EUR 76 million was made on the acquired tangible assets: the net expenditure of acquired tangible assets as at 15 August 2015 was approximately EUR 202.6 million, on which a write-down of EUR 76 million was made, and the acquired tangible assets were entered in the company’s balance sheet in the amount of EUR 126.6 million.

Spare parts with a useful life of more than one year have been recognised in non-current assets as of the 2017 financial statements. On 31 December 2018, their value totalled EUR 12.9 million.

Where parts of an item of tangible assets have different useful lives, they are accounted for as separate items.

Construction in progress and land are not depreciated. Depreciation on other assets is calculated using the straight-line method to allocate their cost over their estimated useful lives, as follows:
 

Roads 25 years
Buildings and structures 10–40 years
Leaching heap base structures 10–15 years
Machinery and equipment 4–25 years
Furniture, fixtures and fittings 5–10 years
Vehicles 5–10 years
Fixed asset spare parts 3 years
Structures for environmental protection 25 years

Net expenditures are reassessed in connection with each financial statement. The reassessment is based on the company's estimates of ore reserves, mineral resources, production capacity and other relevant factors.

Gains and losses on disposals are determined by comparing the proceeds with the book value and are recognised within other operating income or expenses, respectively, in the income statement.

Intangible assets

Other intangible assets

Other intangible assets are recognised in the balance sheet at cost, less planned depreciation. Other intangible assets mainly comprise IT applications and geodata supporting the company's business operations, which are amortised over 3–5 years.

Research and development expenditure

Research expenditure is recognised as an expense as incurred. The company has not capitalised development expenditure during the financial period 2018 or earlier.

Inventories

The company classifies its inventories into three groups: raw materials and consumables, work in progress, and finished products.

Raw materials and consumables are valued at the average acquisition cost of the goods in stock. A so-called write-down on slow-moving items is made on the slow-moving goods in the raw materials and consumables inventory. If an item has been in stock for more than a year, a write-down of 25% is made. The write-down increases 25% annually, so the value of an item that has been in storage more than four years is zero.

Work in progress and finished products (metal content for sale) are presented in the balance sheet as valued at actual production costs but up to the net realisable value of the products on the balance sheet date. Net realisable value refers to the estimated selling price in the ordinary course of business, less the production costs necessary to making work in progress and finished products ready for sale.

The acquisition cost of work in progress and finished products (production cost) includes the fixed and variable costs of production and maintenance that supports production, as well as depreciation on these functions, based on the realised production costs in the production process. The acquisition cost excludes borrowing costs.

Finished products include nickel-cobalt sulphide, zinc sulphide and copper sulphide. Work in progress includes metals in the ore in primary and secondary heaps, as well as metals in the leaching process or metal precipitation and filtration process that can be processed for sale as a finished product.

The amount of metal contained in work in progress is measured by calculating the metal tonnes added to and removed from the production process. The recoverable quantities of nickel, zinc, copper and cobalt included in work in progress are determined based on the estimated ore concentrations based on geological studies, the estimated recovery percentages of metals in the bio heap leaching process and the recovery percentages of the metals production plant.

Ore concentrations, the amount of metals in the production process and the metals recovery percentage are reviewed monthly.

With the net realisable value being higher than the at-cost value, the finished product inventory of 31 December 2018 was valued at EUR 1.9 million at-cost on the basis of the acquisition cost. On 31 December 2017, finished products were valued according to the principle of net realisation value. Work in progress has been valued in the company's financial statements as of 2017 on a cost basis, as it was lower than the net realisable value. The value of work in progress on a cost basis was EUR 170.7 million on 31 December 2018.

The value of inventories determined in accordance with the principle of net realisation value includes discretionary factors related to, for instance, the measurement of metal volume in work in progress, metals recovery percentages, production costs, the production time necessary to complete sales, and sales prices.

Derivatives and hedge accounting

Derivatives

The derivatives used by the company were acquired for hedging purposes, and hedge accounting has been applied to them. Any unrealised change in the value of derivatives that are considered effective hedges are recognised, in accordance with Section 5:2a of the Finnish Accounting Act, at fair value in the balance sheet’s fair value reserve as per the valuation report for the last day of the reporting period. The fair values of derivatives are based on valuations of external counterparties.

The realised earnings-related impacts of changes in the value of effective hedging instruments that are covered by hedge accounting are presented uniformly with the hedged item. In the event of any ineffective hedging, changes in the fair value of hedging instruments are recognised in profit or loss.

Hedge accounting

The company applies hedge accounting in accordance with Section 5:2a of the Finnish Accounting Act to all hedging instruments it holds. At the beginning of the hedging arrangement, the relationship between each hedging instrument and the hedged asset, as well as the risk management objectives, are documented by hedging instrument type. The effectiveness of the hedging relationship is assessed at the beginning of hedging and in quarterly accounts at a minimum.

Cash flow hedging

The company's hedging activities are entirely focused on cash flow hedging. The effective portion of changes in the fair values of derivatives acquired for the purpose of hedging forecasted cash flows are recognised in the fair value reserve under equity. Changes in fair value are recognised in profit or loss for the same periods in which hedged cash flows affect the result.

Provisions

Provisions are recognised when the company has a present legal or constructive obligation as a result of past events, and when it is probable that an outflow of resources will be required to settle the obligation and a reliable estimate of the amount of the obligation can be made.

A provision is made for mine closure costs and legal claims on the following conditions: the obligation relates to a closed or prior financial period, its materialisation is deemed certain or likely upon preparation of financial statements, the corresponding income is neither certain nor likely, the obligation is based on law or commitment to third parties, and the obligation can be identified but its precise amount or time of realisation is not known.

Rehabilitation provision for mine closure and environmental clean-up costs

A rehabilitation provision for mine closure costs is made with respect to the estimated future costs of closure and restoration, and for environmental restoration and rehabilitation to the condition required by the environmental permits granted for mining operations.

Prevention of the threat of environmental pollution entails environmental and landscaping obligations. After mining operations have ceased, any machinery and equipment, chemicals, fuels and waste involving the risk of environmental pollution must be removed from the site. This will be carried out as part of normal mining operations. In addition, open pits must be restored to the condition required by public safety.

The majority of the estimated restoration costs arises from the closure of waste rock dumps and primary and secondary leaching areas, the treatment and clean-up of primary and secondary leaching solution channels, the construction, covering and landscaping of gypsum ponds, the clean-up of waters and precipitates caused by the gypsum pond leak of 2012, the treatment of rock drainage, the fencing of open pits and the ex post supervision of the mining site.

The mine closure plan is based on the covering of areas with water- and oxygen-impermeable material, and long-term aftercare. It is assumed that environmental monitoring of the mine will continue for 30 years after closure of the mine.

Restoration costs have been estimated in accordance with the cost level at the date of closure of the accounts.

The bioleaching method used by Terrafame is of such a nature that the process cannot be stopped abruptly at the end of operations. In order to ensure environmental safety, bioleaching must be continued until most of the metals have been recovered at the metals production plant. Also, the safe management of solution circulation requires a phased ending. Mining and ore crushing will be terminated after the closure decision.

The shutdown of bioleaching and metals recovery processes is expected to last approximately three to four years. During the first two years, primary phase leaching will be terminated, and primary leaching ore will be transferred to the secondary heap in accordance with permit requirements. In the first two years, the metals production plant will normally be operated on hydrogen sulphide precipitation, and the resulting metals will be sold. During this time, detailed closure plans will be drawn up, and regulatory processes required for closure will be initiated.

After the third year, bioleaching will still be operational in secondary leaching, and when the metal concentrations of the solution decrease, the metals production plant will transfer to sodium hydrogen sulphide precipitation, which will continue to produce small amounts of product for sale. This phase is estimated to last from one to two years, after which the bioleaching and the operations of the metals production plant will be discontinued, and the dilute solutions formed will be treated either at the central water treatment plant or by any other suitable purification method.

An environmental provision for the closure of the mine of EUR 158.4 million has been set to cover the closure costs for thirty years from the date the actual closure measures commence. The environmental provision covers, for example, closure of bioleaching areas, necessary soil rehabilitation measures, solution and water management, and environmental monitoring. It is estimated that the central water treatment plant will be used for around 10 years, after which lighter purification methods will be adopted. The company assesses the amount of the environmental provision annually. The assumption is that a decision on the closure of mining operations would have been made at the balance sheet date.
 

2 Notes to balance sheet

2.1 Intangible assets

(EUR 1,000) Intangible
rights
Other
capitalised long-term
expenditure
Investments
in progress
Total

Carrying amount
at 31 December 2017

1,237
100 338 1,674


Gross carrying amount
at 1 January 2018
1,868 144 338 2,350
Increase 44 0 154 198
Capitalisation for the year 491 0 -491 0
Gross carrying amount
at 31 December 2018
2,404 144 0 2,548

Accumulated amortisation and
impairment losses at 1 January 2018
631 44 0 676
Amortisation for the year 383 25 0 408

Accumulated amortisation and
impairment losses at 31 December 2018
1,015 69 0 1,084

Carrying amount
at 31 December 2018
1,398 75 0 1,464

2.2 Tangible assets

(EUR 1,000) Land Buildings Machinery
and
equipment
Other
tangible
assets
Construction
in progress
Total

Carrying amount
at 31 December 2017
270 59,820 93,980 94,008 45,950 294,028

Gross carrying amount at 1 January 2018
270 67,708 115,717 101,184 45,950 330,829
Increase 1,129 0 10,427 0 69,766 81,322
Capitalisation for
the year
0 6,744 27,062 55,099 -88,906 0
Transfers 0 -3,780 296 3,484 0 0
Decrease 0 0 -88 0 0 -88
Gross carrying amount at 31 December 2018 1,399 70,672 153,414 159,768 26,810 412,063

Accumulated amortisation and impairment losses at 1 Januar 2018
0 7,888 21,737 7,176 0 36,801
Decrease 0 -37 2 35 0 0
Amortisation for the year 0 4,169 18,502 6,741 0 29,411
Depreciation for reductions
0

0
-67 0 0 -67

Accumulated amortisation and impairment losses at 31 December 2018
0 12,019 40,174 13,952

0
66,144

Carrying amount at 31 December 2018
1,399 58,653 113,241 145,816 26,810 345,919

2.3 Inventories

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Raw materials and consumables
26,642 22,759
Work in progress 170,654 138,026
Finished goods 1,900 7,837
Total 199,196 168,622

The value of raw materials and consumables on 31 December 2018 includes a provision of EUR 4,553 thousand for slow-moving inventory, which reduces the value of inventory. The corresponding provision on 31 December 2017 was EUR 5,681 thousand. Furthermore, at the time of carrying out inventory for the financial period 2018, an obsolescence provision of EUR 1,260 thousand was made for the raw materials and consumables inventory, which also reduced the value of inventory.

2.4 Deferred tax assets

(EUR 1,000) 31 Dec 2018 31 Ded 2017

Deferred tax assets

0
1,125

According to estimates, the company has approximately EUR 158.6 million of confirmed and to-be-confirmed losses, and approximately EUR 32.4 million of deferred depreciation. Deferred tax assets or tax liabilities for derivatives have been recognised in the company's balance sheet.

 

2.5 Amounts owed by Group companies

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Trade receivables
Finnish Minerals Group

26
32
Total 26 32

 

2.6 Prepayments and accrued income

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Other prepayments and accrued income

9,357
7,306
Derivative receivables 10,945 11,740
Total 20,302 19,046

2.7 Equity

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Subscribed capital at the beginning of the period
2,000
2,000
Subscribed capital at the end of the period 2,000 2,000

Fair value reserve at the beginning of the period
-4,501
0
Increase 91,452 90,911
Decrease 80,568 95,413
Fair value reserve at the end of the period 6,382 -4,501

Invested unrestricted equity at the beginning of the period
524,406 379,800
Investment in invested unrestricted equity 65,271 144,606
Invested unrestricted equity at the end of the period 589,677 524,406

Retained earnings at the beginning of the period
-226,261 -216,660
Retained earnings at the end of the period -226,261 -216,660

Loss for the period
-6,171 -9,601

Retained earnings
-232,433 -226,261

Total equity
365,627 295,643

Restricted equity at the end of the period
31 Dec 2018 31 Dec 2017
Subscribed capital 2,000 2,000
Fair value reserve 6,382 -4,501
At the end of the period 8,382 -2,501
     

Distributable equity at the end of the period

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Retained earnings
-226,261 -216,660
Loss for the period -6,171 -9,601
Fair value reserve 0 -4,501
Invested unrestricted equity 589,677 524,406
At the end of the period 357,244 293,643

The fair value reserve comprises the market value of derivatives covered by hedge accounting.

2.8 Notes to hedging derivatives

    31 Dec 2018     31 Dec 2017   2018 2017
(EUR 1,000) Positive fair value Negative fair value Fair net value Positive fair value Negative fair value Fair net value Notional amount USD Notional amount USD

Currency and interest rate derivatives


 
             

   Foreign
   exchange
   forwards
176 529 -353 118 0 118 91,000 19,000
   Currency
   options
198 693 -495 448 0 448 128,000 7,500

Metal
derivatives

 

 
        Tonnes Tonnes
   Nickel
   forward
   contracts
5,627 224 5,404 0 993 -993 3,200 2,850
   Nickel
   options
0 0 0 2,183 2,550 -367 0 1,200
                 
   Zinc
   forward
   contracts
377 404 -27 0 555 -555 700 8,000
   Zinc
   options
6,502 1,374 5,128 8,991 13,269 -4,278 27,300 38,400

Derivatives total
12,881 3,224 9,658 11,740 17,366 -5,627    

Long-term
derivatives
   Zinc
   derivatives
574 105 469

0


0


0
   
Short-term
derivatives
12,308 3,119 9,189 11,740 17,366 -5,627    

 

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Balance assets, gross amount
10,945 11,740

Balance liabilities, gross amount
2,967 17,366

Fair values of the hedging derivatives presented in the table above include hedges realized in December 2018. In positive fair values the realized hedges total EUR 2,290 thousand and in negative fair values EUR 626 thousand. In the fair value reserve reported in balance sheet 2018 the realized hedges are excluded.

The fair value calculation of hedges is based on market rates and quotations on the balance sheet date in accordance with hedging portfolio. Conterparties for derivative transactions have been approved in accordance with the company's hedging policy. Intercompany receivables and liabilities are connected on a transaction level with each counterparty and accounted for on a daily level by transaction.

The importance of hedging instruments to the company's financial position and projected profitability for the next 12 months was high on 31 December 2018. The company had set up a cash flow hedge against a weakening US dollar with a hedging rate of approximately 45 percent. The same rate, 45 percent, was also applied to set up a hedge against falling zinc prices for the company’s projected zinc deliveries for the following year. In addition, in line with its hedging policy, the company had set up hedges for almost all of its nickel and zinc deliveries, which had been completed and reported under sales. As a result, the change in market prices after the closing of the accounts has hardly no effect on the deliveries reported as sales for the financial period 2018.

2.9 Obligatory provisions

Long-term
(EUR 1,000)
31 Dec 2018 31 Dec 2017

Rehabilitation provision

 

 
At the beginning of the period 159,412 162,078
Decrease 1,049 2,666
At the end of the period 158,363 159,412

Long-term total
158,363 159,412

Estimated cost of the rehabilitation provision
   
Rehabilitation of primary and secondary heaps, waste rock fields and gypsum pond area 127,780
128,729
Repairing of gypsum pond leak damage 2012 20,000 20,100
Rehabilitation and fencing of the open pit area 2,583 2,583
Environmental monitoring of the mining area after finishing rehabilitation 8,000 8,000
Estimated rehabilitation costs total 158,363 159,412

2.10 Long-term loans from credit institutions

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Instalment credit

 
 
At the beginning of the period 201 0
Increase 251 271
Decrease -309 -70
At the end of the period 143 201
Long-term instalment credit total
143
201

 

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Long-term loans
   
At the beginning of the period 88,781 0
Increase 0 100,000
Valuation 4,210 -11,219
At the end of the period 92,991 88,781

Long-term loans total
93,134 88,982

Option and other special rights
(pcs)

31 Dec 2018

31 Dec 2017
Batch 1 Maximum number of shares to be issued 566,712 566,712
Batch 2 Maximum number of shares to be issued 244,265 244,265
Batch 3 Maximum number of shares to be issued 244,264 0
At the end of the period 1,055,241 810,977

The subscription period for the first lot is 10 February 2017–31 December 2022, for the second lot 9 November 2017–31 December 2023, and for the third lot 22.11.2018 – 31.12.2023. The options can be transferred to the permitted transferees. Both the direct and indirect pledging of options are prohibited. The subscription price agreed for options is 10 percent higher than the subscription price at the time of the closing of the financing arrangements implemented in 2017 and 2018.

2.11 Deferred tax liabilities

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Deferred tax liablities

1,596
0

2.12 Specifications of Group liabilities

(EUR 1,000) 31 Dec 2018  31 Dec 2017

Short-term liabilities to group companies

 
 
Trade payables
Finnish Minerals Group
112 128
Total 112 128

 

2.13 Short-term loans from financial institutions

(EUR 1,000) 31 Dec 2018 31 Dec 2017

Installment credit

 
 
At the beginning of the period 130 1,288
Increase 168 210
Decrease -143 -1,367
At the end of the period 155 130

Short-term loans from credit institutions total
155 130

2.14 Current liabilities/Accruals and deferred income

(EUR 1,000)  31 Dec 2018  31 Dec 2017

Interests
1,790 2,183
Salaries, fees and other personnel expenses 5,819 8,291
Other accrued liabilities and deferred income 4,015 1,484
Derivative liabilities 2,967 17,366
Total 14,381 29,324

3 Notes to the income statement

3.1 Net sales

(EUR 1,000 2018 2017

Industry distribution
 
 
Metals 325,830 220,024
Total 325,830 220,024

Geographical distribution
   
Europe 324,353 186,526
Asia 401 30,778
United States 1,074 -248
Australia 2 2,969
Total 325,830 220,024

3.2 Costs of goods sold

(EUR 1,000) 2018 2017

Raw materials and consumables
 
 
Purchases during the financial year -142,263 -125,001
Change in stocks 3,883 -2,739
  -138,380 -127,740
External services -73,699 -66,451
Total -212,079 -194,191
(EUR 1,000) 2018 2017

Change in inventory
 
 
Change in Work in progress 32,628 87,906
Change in Finished goods -5,937 7,219
Total 26,691 95,125
(EUR 1,000) 2018 2017

Personnel expenses
 
 
Wages and salaries -26,489 -26,943
Pension expenses -4,965 -5,055
Other personnel expenses -1,018 -1,368
Total -32,472 -33,366
(EUR 1,000) 2018 2017

Depreciation
 
 
Depreciations -29,606 -19,657
Total -29,606 -19,657
(EUR 1,000) 2018 2017
Other Cost of goods sold -54,085 -50,965
Total -54,085 -50,965


Cost of goods sold total
-301,550 -203,054

3.3 Sales and marketing expenses

(EUR 1,000) 2018 2017

Personnel expenses
   
Wages and salaries -703 -351
Pension expenses -133 -66
Other personnel expenses -30 -12
Total -866 -430
(EUR 1,000) 2018 2017

Depreciation
   
Depreciation 0 0
Total 0 0
(EUR 1,000) 2018 2017

Other sales and marketing expenses
-494 -189
Total -494 -189

Sales and marketin expenses total
-1,360 -619

3.4 Administrative expenses

(EUR 1,000) 2018 2017

Personnel expenses
   
Wages and salaries -3,265 -3,088
Pension expenses -559 -570
Other personnel expenses -123 -88
Total -3,947 -3,745
(EUR 1,000) 2018 2017

Depreciation
   
Depreciation -209 -183
Total -209 -183
(EUR 1,000) 2018 2017

Other expenses
   
Other administrative expenses -11,085 -12,613
Total -11,085 -12,613
(EUR 1,000) 2018 2017

Auditors' remunerations
   
Audit -82 -80
Tax consultancy 0 -1
Other services -50 -14
Total -132 -95

Administrative expenses total
-15,373 -16,636

3.5 Other operating expenses

(EUR 1,000) 2018 2017

Personnel expenses
   
Wages and salaries -522 -609
Pensions expenses -100 -116
Other personnel expenses -22 -20
Total -644 -745
(EUR 1,000) 2018 2017

Depreciation
   
Depreciation -4 -1
Yhteensä -4 -1
(1 000 euroa) 2018 2017

Other operating expenses
   
Other operating expenses -4,740 -5,545
Total -4,740 -5,545

Other operating expenses total
- 5,388 -6,291
(EUR 1,000) 2018 2017

Personnel expenses total
   
Wages and salaries -31,209 -30,992
Pensions expenses -5,800 -5,807
Other personnel expenses -1,203 -1,488
Total -38,212 -38,286

Wages and fees for Members of Board of Directors
-250 -165
  2018 2017

Average number of company personnel
   
Salaried and senior salaried 209 218
Blue-collar 460 476
Total 669 694
(EUR 1,000) 2018 2017

Depreciation, amortisation and impairment charges total
   
Intangible assets -383 -380
Other capitalised long-term expenditure -25 -33
Tangible assets -408
 
-413
 
Buildings -4,169 -3,765
Machinery and equipment depreciation -18,502 -11,757
Other tangible assets depreciation -6,741 -3,905


Total
-29,411

-29,819
-19,428

-19,841

 

3.6 Finance income and finance cost

(EUR 1,000) 2018 2017

Finance income
   
Other interest and financial income 1,696 12,260
Total 1,696 12,260

Other interest and financial income
include exchange rate profit
1,064 11,439

Of the foreign exchange gains on finance income, EUR 1,064 thousand consists of the valuation of financial assets using the exchange rate at the balance sheet date. Correspondingly, of the comparative period's foreing exchange gains, EUR 11,219 thousand derives from unrealised finance income related to the valuation of foreign currency loans at using the exchange rate at the balance sheet date.

(EUR 1,000) 2018 2017

Finance expenses
   
Other interest and financial expenses -10,857 -15,642
Financial expenses total -10,857 -15,642

Financial expenses to others include
exchange rate losses
-4,210 -8,918

The finance expenses for the financial period include EUR 6,644 thousand of interest expenses and EUR 4,210 thousand of unrealised exchange rate losses related to the valuation of foreign currency loans at the exchange rate of the balance sheet date. The finance expenses for the comparative period include EUR 5,124 thousand of interest expenses and EUR 8,880 thousand of exchange rate losses on the valuation of cash assets.

(EUR 1,000) 2018 2017

Financial income and expenses total
-9,162 -3,383
x