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DGAP-Regulatory: January - March 2014: Revenue and profit for the review period improved

April 30, 2014

Fingrid Oyj / Miscellaneous 30.04.2014 10:00 Dissemination of a Regulatory Announcement, transmitted by DGAP - a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. --------------------------------------------------------------------------- Helsinki, Finland, 2014-04-30 10:00 CEST (GLOBE NEWSWIRE) -- Fingrid Oyj Interim report 30.4.2014 at 11.00 EET Figures in brackets refer to the corresponding period the previous year, unless otherwise stated. -- The Group's turnover between January and March was 191 (171) million euros -- Operating profit for the first quarter of the year was 79 (79) million euros -- The Group's profit for the review period was 62 (55) million euros -- The cash flow from the Group's operations with capital expenditure deducted was 73 (38) million euros -- The interest-bearing borrowings totalled 1,002.8 (992.5) million euros -- Investments totalled 32 (34) million euros -- The equity ratio was 32.0% (29.3%) -- Earnings per share totalled 18,744 (16,550) euros KEY FIGURES Jan-March Jan-March change Jan-Dec/2 /14 /13 % 013 -------------------------------------------------------------------------------- Turnover MEUR 191.3 170.6 12.1 543.1 -------------------------------------------------------------------------------- Capital expenditure, gross MEUR 31.6 34.4 -8.2 225.3 -------------------------------------------------------------------------------- - % of turnover % 16.5 20.2 41.5 -------------------------------------------------------------------------------- Research and development MEUR 0.4 0.4 -8.1 1.8 expenses -------------------------------------------------------------------------------- - % of turnover % 0.2 0.2 0.3 -------------------------------------------------------------------------------- Personnel, average 287 268 277 -------------------------------------------------------------------------------- Personnel at end of review 289 276 287 period -------------------------------------------------------------------------------- Salaries and remunerations MEUR 5.1 4.57 19.0 total -------------------------------------------------------------------------------- Operating profit MEUR 79.3 79.1 0.3 115.3 -------------------------------------------------------------------------------- - % of turnover % 41.5 46.4 21.2 -------------------------------------------------------------------------------- Profit before taxes MEUR 77.8 72.8 6.9 87.3 -------------------------------------------------------------------------------- - % of turnover % 40.7 42.7 16.1 -------------------------------------------------------------------------------- Profit for the review period MEUR 62.3 55.0 13.3 90.7 -------------------------------------------------------------------------------- Comprehensive income for the MEUR 61.9 50.3 23.2 86.1 review period -------------------------------------------------------------------------------- Return on investments % 6.3 -------------------------------------------------------------------------------- Return on equity % 15.0 -------------------------------------------------------------------------------- Equity ratio % 32.0 29.3 29.5 -------------------------------------------------------------------------------- Interest-bearing net borrowings MEUR 1,002.8 992.5 1.0 1,076.7 -------------------------------------------------------------------------------- Debt to equity ratio % 142.3 160.1 167.5 -------------------------------------------------------------------------------- Profit/share [Eur] 18,744.1 16,550.4 13.3 27,277.9 -------------------------------------------------------------------------------- Dividend/A shares [Eur] 2,018.26* -------------------------------------------------------------------------------- Dividend/B shares [Eur] 2,018.26* -------------------------------------------------------------------------------- Equity/share [Eur] 211,907 186,478 13.6 193,293 -------------------------------------------------------------------------------- Dividend payout ratio A shares % 7.4* -------------------------------------------------------------------------------- Dividend payout ratio B shares % 7.4* -------------------------------------------------------------------------------- Number of shares -------------------------------------------------------------------------------- - Series A shares shares 2,078 2,078 2,078 -------------------------------------------------------------------------------- - Series B shares shares 1,247 1,247 1,247 -------------------------------------------------------------------------------- Total shares 3,325 3,325 3,325 -------------------------------------------------------------------------------- * The Board of Directors' proposal to the Annual General Meeting Jukka Ruusunen, President & CEO of Fingrid says about the interim report: 'Finland imported affordable power from the west - transmission connections have seen a high degree of utilisation' Affordable electricity has been available in the Nordic countries and significantly more of it was transmitted to Finland this year than last year. Power transmission connections between Finland and Sweden have functioned well, and Fingrid was able to make the full transmission capacity available to the markets for almost the entire time. The transmission capacity however was not sufficient to meet market needs in all situations, and for this reason the regional price in Finland has been higher than the Swedish regional price. The power transmission connections also functioned excellently during winter peak consumption, when Finland was heavily reliant on imported electricity. Fingrid's grid profits were 124 million euros as a result of an eight per cent rise in tariffs carried out at the start of the year and an increase in grid connection profits. Electricity consumption in Finland decreased by 3.3 per cent when compared to the corresponding period in 2013. Correspondingly, during the review period, Fingrid transmitted slightly more electricity than it did during the same period in the previous year. The import of electricity from Russia to Finland decreased significantly compared to last year, which can be seen in as a three million euro decrease in cross-border transmission income. On the other hand, congestion income relating to Finland's and Sweden's regional price differences increased to 15 million euros while they were one million euros during the corresponding period last year. FINGRID GROUP'S INTERIM REPORT JAN-MAR/2014 Calculation principles Fingrid's interim report has been drawn up in accordance with standard IAS 34, Interim Financial Reporting. In this interim report, Fingrid has followed the same principles as in the annual financial statements for 2013, with the exception of hedge accounting for electricity derivatives, which was stopped at the start of 2014. As a result of this, the entire change in the fair value of the derivatives in question was recorded and will continue to be recorded in the income statement. The hedge fund in the balance sheet will be dismantled in equal instalments during 2015 and 2016 so that result is decreased by 11.6 million euros Financial result The Group's turnover during the review period grew to 191 (171) million euros, and other operating income was 1 (1) million euros. Grid profits were 124 (116) million euros. The profits grew as a result of an eight per cent rise in tariffs carried out at the start of the year and an increase in grid connection profits. Electricity consumption in Finland decreased by 3.3 per cent when compared to the corresponding period in 2013. Correspondingly, during the review period, Fingrid transmitted slightly more electricity than it did during the same period in the previous year: 18.2 (17.6) terawatt hours. The sale of imbalance power remained on the same level as last year at 41 (40) million euros. Congestion income between Finland and Sweden increased drastically and reached 15 (1) million euros. The rise in congestion income between Finland and Sweden was a result of the market situation and an increase in regional price differences. Cross-border transmission income between Finland and Russia fell to 2 (5) million euros as a result of a reduction in Russian imports. Congestion income between Finland and Estonia, as well as European inter-TSO compensation income decreased from the level in the corresponding period of last year. Imbalance power costs fell and were 27 (32) million euros. Loss energy costs grew by three million euros due to an increase in the price of loss energy. At the end of the period under review, approximately 98 per cent of Fingrid's projected loss energy procurement for the remaining part of 2014 had been hedged at an average price of 44.1 euros per megawatt hour. Depreciation costs increased by three million euros as significant new capital investment projects were completed. The costs of reserves to ensure grid operational reliability grew slightly and were 13 (12) million euros. Personnel-, maintenance management- and inter-TSO compensation costs remained more or less at the level of the previous year. Turnover and other income (million [Eur]) Jan-March/14 Jan-March/13 change % ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Grid service revenue 124 116 7.1 ---------------------------------------------------------------------------- Sales of imbalance power 41 40 3.9 ---------------------------------------------------------------------------- ITC income 4 3 39.3 ---------------------------------------------------------------------------- Cross-border transmission income 2 5 -49.7 ---------------------------------------------------------------------------- Finland-Estonia congestion income* 0 1 -18.9 ---------------------------------------------------------------------------- Peak load capacity income** 2 5 -56.4 ---------------------------------------------------------------------------- Finland-Sweden congestion income 15 1 2,087.5 ---------------------------------------------------------------------------- Other turnover 2 1 46.4 ---------------------------------------------------------------------------- Other operating income 1 1 25.0 ---------------------------------------------------------------------------- ---------------------------------------------------------------------------- Turnover and other income total 191 171 12.2 ---------------------------------------------------------------------------- Costs (million [Eur]) Jan-Marc Jan-Marc change h/14 h/13 % -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Purchase of imbalance power 27 32 -14.0 -------------------------------------------------------------------------------- Cost of loss energy 18 15 22.5 -------------------------------------------------------------------------------- Depreciation 22 19 14.1 -------------------------------------------------------------------------------- Estlink grid rents* 0 1 -100.0 -------------------------------------------------------------------------------- Cost of reserves 13 12 7.1 -------------------------------------------------------------------------------- Personnel costs 6 6 12.9 -------------------------------------------------------------------------------- Cost of peak load capacity** 2 5 -57.4 -------------------------------------------------------------------------------- Maintenance management costs 3 4 -31.8 -------------------------------------------------------------------------------- ITC charges 3 3 12.7 -------------------------------------------------------------------------------- Other costs 11 8 43.6 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Costs total 106 103 2.4 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Operating pro?t excluding the change in the fair 87 69 26.8 value of commodity derivatives -------------------------------------------------------------------------------- Operating profit of Group 79 79 0.3 -------------------------------------------------------------------------------- *Fingrid's income from the congestion income between Finland and Estonia was 0.4 million euros. There were no costs (Finland-Estonia grid rental) during the period under review, since the EstLink connection has been under Fingrid's ownership since 30.12.2013. Before the transferral of ownership, congestion income profits between Finland and Estonia were paid as grid rental to the owners of the connection. **The peak load capacity income and costs are related to the securing of the sufficiency of electricity during peak consumption hours within the framework of the Finnish Peak Load Capacity Act. The operating profit of the Group was 79 (79) million euros, including -8 (11) million euros) of changes in the fair value of commodity derivatives. The profit before taxes was 78 (73) million euros. Profit for the period under review was 62 (55) million euros and the comprehensive income was 62 (50) million euros. The cash flow from the Group's operations with capital expenditure deducted was 73 (38) million euros. The equity ratio was 32.0 (29.3) per cent at the end of the review period. The Group's profit for the financial period is characterised by seasonal fluctuations, which is why the profit for the entire year cannot be directly estimated on the basis of profit from this six-month period. Investments and maintenance The EstLink 2 high-voltage direct current connection between Estonia and Finland has been available for market use since the start of December 2013. The connection was handed over to owners in February 2014 and has significantly increased power transmission between the countries. EstLink 2 was officially inaugurated on 6 March 2014 in ceremonies taking place simultaneously in Pussi, Estonia and in Porvoo, Finland. The connection tripled the transmission capacity between Finland and Estonia and removed one of the worst transmission bottlenecks in the Baltic Sea region. The major project kept to its schedule and budget, despite being challenging. The construction of wind power has made significant progress in Northern Ostrobothnia. At the turn of the year, Fingrid made new investment decisions relating to Siikajoki, Raasakka, Keminmaa, Taivalkoski and Ossauskoski. A new 110 kilovolt substation will be built in Siikajoki in order to allow the connection of wind power in the area to the grid. In addition, power lines will also be renewed in Raasakka, and the Isohaara-Taivalkoski 110 kilovolt cable will be run to Keminmaa. Basic renovations will be carried out on the Taivalkoski and Ossauskoski substations. These investments are valued at approximately 15 million euros in total. Several challenges are under way for Fingrid on the western coast. The greatest challenge is the Ulvila-Kristinestad connection, which includes two power line projects and two substation projects. The component projects are under way and progressing according to plan. The entire connection is due for completion in early autumn 2014. Work on the Hikia-Forssa power line project began in spring. A mild winter has posed challenges to foundation work, but nevertheless, work has progressed according to schedule. In accordance with Fingrid's updated occupational safety requirements, a separate safety supervisor financed by Fingrid was appointed for the project. In Eastern Finland, the Varkaus-Kontiolahti power line project has progressed as planned. The project saw the erection of Fingrid's first 110 kilovolt field tower between Varkaus-Hovinpaikka. The tower is the same design as the 400 kilovolt field tower which won the Fennia Design Prize. All in all, a total of 25 towers will be erected in the project. Field towers are mostly used to replace towers which are erected in fields using stay cables. The use of the newer towers frees up field space for agriculture. Power system From the start of the year until the end of March, Finland consumed 23.8 (24.6) terawatt hours of electricity. During the same period, 18.2 (17.6) TWh of electricity was transmitted in Fingrid's grid, representing 76 (72) per cent of the electricity consumption in Finland. Domestic electricity production capacity and import were sufficient to cover the winter peak consumption. According to Fingrid's operation control measurements, electricity consumption during winter 2014 was 14,288 megawatts at its greatest. The highest electricity production volume in Finland in the early part of 2013 was approx. 12,100 megawatts, and power plants worked without significant disturbance during the period of cold weather. It was not necessary to take into use any of the nation-wide peak load capacity of 365 megawatts. Large amounts of electricity were transmitted from Sweden to Finland as a result of the market situation. During the period under review, production capacity was generally completely available for use. The most significant restriction on capacity took place during disruption to the Fenno-Skan 2 connection which occurred on 20 March 2014. The connection was out of service for just under 24 hours. Between January and March, 5.1 (2.3) TWh of electricity were imported from Sweden to Finland, and 0.0 TWh (0.3 TWh) were exported from Finland to Sweden. There were no significant electricity transmission restrictions in the transmission capacity on the Russian or Estonian borders between January and March. The new EstLink 2 connection to Estonia has been available to the markets for use for almost the entire time. Exports to Estonia via EstLink 1 and 2 were plentiful, but turned into import during Finland's peak consumption hours. A technical test on the bidirectional transmission of electricity was carried out on the Russian connection on 12 March 2014. The amount of imports from Russia has fluctuated due to the market situation and according to the time of day. 0.9 (1.8) TWh was imported to Finland from Russia, with 0.01 (0.2) TWh imported from Estonia. Exports to Estonia totalled 1.3 (0.3) TWh. The most significant disruption during the period under review occurred on 24 March 2014 along the Hikia-Forssa 110 kilovolt line. A fallen tree on the line caused an electricity outage lasting a few hours and affecting 24,000 customers. At the time of the event, there was an exceptional connection situation due to ongoing maintenance work, which meant that both the duration and extent of the disruption were larger than normal. In the Hyvinkaa region, a 400 kilovolt tower fell over on 25 March 2014 during replacement work. The disruption did not cause any breaks in service or personal injuries. On 20 March 2014 due to the disruption in the Fenno-Skan connection, replacement power of a value just under two million euros was procured by starting up reserve power plants, and by purchasing electricity from domestic suppliers and from Russia. In order to restore the deteriorated frequency quality, Nordic grid companies have started the test use of a new reserve type, the automatic frequency control reserve. A maximum of 300 megawatts of reserve is maintained for selected hours, of which Fingrid's share is a maximum of 69 megawatts. Power system operation Jan-March/14 Jan-March/13 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Electricity consumption in Finland TWh 23.8 24.6 ---------------------------------------------------------------------- Fingrid's transmission volume TWh 18.2 17.6 ---------------------------------------------------------------------- Fingrid's loss energy volume TWh 0.3 0.3 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Electricity transmission Finland - Sweden Exports to Sweden TWh 0 0.3 ---------------------------------------------------------------------- Imports from Sweden TWh 5.1 2.3 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Electricity transmission Finland - Estonia Exports to Estonia TWh 1.3 0.3 ---------------------------------------------------------------------- Imports from Estonia TWh 0 0.2 ---------------------------------------------------------------------- ---------------------------------------------------------------------- Electricity transmission Finland - Russia Imports from Russia TWh 0.9 1.8 ---------------------------------------------------------------------- Electricity market Price coupling was introduced on the day-ahead markets, or spot markets, of north-western Europe (NWE) in February. The procedure means calculating the price for electricity in the entire area for each hour of the next day simultaneously, taking into account all purchase and sales offers and transfer capacities. The arrangement covers the Nordic countries, Baltic region, Germany, France, Benelux countries and Great Britain. The electricity exchanges and main grid companies in the area have been preparing the price coupling since 2010. It is to be expanded to other European countries in the next few years. During the first quarter of the year, the average price (system price) of the Nord Pool spot markets was 30 (42) euros per megawatt hour and the Finnish regional price was 35 (42) euros per megawatt hour. During the first quarter of 2013, Fingrid used 2.9 (0.1) million euros for counter trade. Electricity market Jan- Jan-Ma March/ rch/13 14 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Nord Pool system price, average [Eur]/MWh 30.19 42.03 -------------------------------------------------------------------------------- Area price Finland, average [Eur]/MWh 35.24 42.10 -------------------------------------------------------------------------------- Congestion income between Finland and Sweden, million [Eur]* 30.0 1.4 -------------------------------------------------------------------------------- Congestion hours between Finland and Sweden %* 62.0 7.4 -------------------------------------------------------------------------------- Congestion income between Finland and Estonia, million [Eur]* 0.8 1 -------------------------------------------------------------------------------- Congestion hours between Finland and Estonia %* 11.3 26.5 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- * The congestion income between Finland and Sweden as well as between Finland and Estonia is divided between the relevant TSOs in equal proportions. The income and costs of the transmission connections are presented in the tables under Financial Result. Financing The financial position of the Group continued to be satisfactory. The net financial costs of the Group were 9 (7) million euros during the review period. Net financing costs without changes in the fair value of derivatives were 12 (5) million euros. Financial assets recognised at fair value in the income statement, and cash and cash equivalents amounted to EUR 230 million (EUR 225 million) on 31 March 2014. In addition, the company has an undrawn revolving credit facility of 250 (250) million euros. Interest-bearing borrowings totalled 1,233 (1,218) million euros, of which 973 (1,056) million euros were long-term and 260 (161) million euros were short-term. The counterparty risk involved in the derivative contracts relating to financing was 39 million euros (80 million euros). Personnel The total personnel of the Fingrid Group averaged 287 (268) during the review period. Auditing The consolidated figures in this Interim Report are unaudited. Events after the review period and estimate on the development for the rest of the year Fingrid Group's profit for the financial year 2014 before taxes and without the change in the fair value of derivatives is expected to increase from the previous year. The uncertainty involved in reserve costs, congestion income and in cross-border income on the interconnections from Russia makes it difficult to anticipate Fingrid's financial result for the entire year. Appendices: Tables for the Interim Report Jan-March/2014 Condensed consolidated statement of Jan-Mar Jan- Change Jan- comprehensive income, ch/14 March/ Dec/13 million euros 13 -------------------------------------------------------------------------------- Turnover 191.3 170.6 20.7 543.1 -------------------------------------------------------------------------------- Other operating income 1.2 1.0 0.2 4.1 -------------------------------------------------------------------------------- Depreciation -22.1 -19.4 -2.7 -81.7 -------------------------------------------------------------------------------- Operating expenses -91.1 -73.1 -18.0 -350.2 -------------------------------------------------------------------------------- Operating profit 79.3 79.1 0.2 115.3 -------------------------------------------------------------------------------- Finance income and costs -2.0 -6.6 4.6 -28.7 -------------------------------------------------------------------------------- Portion of profit of associated companies 0.4 0.3 0.2 0.7 -------------------------------------------------------------------------------- Profit before taxes 77.8 72.8 5.0 87.2 -------------------------------------------------------------------------------- Income taxes -15.5 -17.8 2.3 3.4 -------------------------------------------------------------------------------- Profit for the financial year 62.3 55.0 7.3 90.7 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Other comprehensive income -------------------------------------------------------------------------------- Cash flow hedges 0.0 -4.3 4.3 -4.0 -------------------------------------------------------------------------------- Translation reserve -0.4 -0.4 0.0 -0.6 -------------------------------------------------------------------------------- Available-for-sale financial assets 0.0 0.0 0.0 0.0 -------------------------------------------------------------------------------- Total comprehensive income for the financial 61.9 50.3 11.6 86.0 period -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Profit attributable to: -------------------------------------------------------------------------------- Equity holders of the company 62.3 55.0 7.3 90.7 -------------------------------------------------------------------------------- Total comprehensive income attributable to: -------------------------------------------------------------------------------- Equity holders of the company 61.9 50.3 11.6 86.0 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Earnings per share (euros) belonging to the 18,744 16,550 2,185 27,278 owners of parent company, calculated from profit* -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- * no dilution effect Condensed consolidated balance sheet, 31.3.2014 31.3.2013 Change 31.12.2013 million euros -------------------------------------------------------------------------------- ASSETS -------------------------------------------------------------------------------- Non-current assets -------------------------------------------------------------------------------- Goodwill 87.9 87.9 0.0 87.9 -------------------------------------------------------------------------------- Intangible assets 93.0 90.9 2.1 92.8 -------------------------------------------------------------------------------- Property, plant and equipment 1,613.0 1,500.3 112.7 1,623.4 -------------------------------------------------------------------------------- Investments 10.7 8.4 2.3 10.7 -------------------------------------------------------------------------------- Derivatives 44.8 80.0 20.8 42.3 -------------------------------------------------------------------------------- Receivables 23.1 21.4 1.7 18.0 -------------------------------------------------------------------------------- Current assets -------------------------------------------------------------------------------- Inventories 12.6 9.8 2.8 11.4 -------------------------------------------------------------------------------- Derivatives 1.9 3.4 -9.5 2.1 -------------------------------------------------------------------------------- Receivables 82.4 89.6 -7.2 76.0 -------------------------------------------------------------------------------- Financial assets recognised at fair 196.1 221.9 -25.8 195.0 value -------------------------------------------------------------------------------- Cash and cash equivalents 34.4 3.2 31.2 22.3 -------------------------------------------------------------------------------- Total assets 2,199.8 2,116.8 131.0 2,182.0 -------------------------------------------------------------------------------- SHAREHOLDERS' EQUITY AND LIABILITIES -------------------------------------------------------------------------------- Shareholders' equity belonging to the owners of the parent company -------------------------------------------------------------------------------- Shareholders' equity 704.6 620.0 84.6 642.7 -------------------------------------------------------------------------------- Non-current liabilities -------------------------------------------------------------------------------- Current interest-bearing liabilities 973.1 1,056.2 -83.1 975.3 -------------------------------------------------------------------------------- Derivatives 46.2 30.8 -6.6 38.8 -------------------------------------------------------------------------------- Other current liabilities 134.3 169.8 -35.5 121.5 -------------------------------------------------------------------------------- Current liabilities -------------------------------------------------------------------------------- Current interest-bearing liabilities 260.2 161.3 98.9 318.7 -------------------------------------------------------------------------------- Derivatives 15.7 4.0 3.1 15.5 -------------------------------------------------------------------------------- Other current liabilities 65.7 74.6 -9.0 69.5 -------------------------------------------------------------------------------- Total shareholders' equity and 2,199.8 2,116.8 52.4 2,182.0 liabilities -------------------------------------------------------------------------------- Consolidated statement of changes in total equity, EUR million -------------------------------------------------------------------------------- - Attributable to Share Share Fair Translati Retained Total equity holders of capita premium value on earnings equity the parent company l account reserves reserve -------------------------------------------------------------------------------- 1.1.2013 55.9 55.9 -7.6 0.6 464.9 569.8 -------------------------------------------------------------------------------- Comprehensive income -------------------------------------------------------------------------------- Profit or loss 55.0 55.0 -------------------------------------------------------------------------------- Other comprehensive income -------------------------------------------------------------------------------- Cash flow hedges -4.3 -4.3 -------------------------------------------------------------------------------- Translation reserve -0.4 -0.4 -------------------------------------------------------------------------------- Items related to long-term asset -------------------------------------------------------------------------------- items available for 0.0 0.03 sale -------------------------------------------------------------------------------- Total other -4.3 -0.4 -4.8 comprehensive income adjusted by tax effects -------------------------------------------------------------------------------- Comprehensive income -4.3 -0.4 55.0 50.3 -------------------------------------------------------------------------------- 31.3.2013 55.9 55.9 -11.9 0.2 519.9 620.0 -------------------------------------------------------------------------------- Comprehensive income -------------------------------------------------------------------------------- Profit or loss 35.7 35.7 -------------------------------------------------------------------------------- Other comprehensive income -------------------------------------------------------------------------------- Cash flow hedges 0.4 0.4 -------------------------------------------------------------------------------- Translation reserve -0.2 -------------------------------------------------------------------------------- Items related to 0.0 0.00 long-term asset items available for sale -------------------------------------------------------------------------------- Total other 0.4 -0.2 0.1 comprehensive income adjusted by tax effects -------------------------------------------------------------------------------- Comprehensive income 0.4 -0.2 35.7 35.8 -------------------------------------------------------------------------------- Transactions with owners -------------------------------------------------------------------------------- Dividend relating to -13.1 -13.1 2012 -------------------------------------------------------------------------------- 1.1.2014 55.9 55.9 -11.6 0.0 542.4 642.7 -------------------------------------------------------------------------------- Comprehensive income -------------------------------------------------------------------------------- Profit or loss 62.3 62.3 -------------------------------------------------------------------------------- Other comprehensive income -------------------------------------------------------------------------------- Translation reserve -0.4 -0.4 -------------------------------------------------------------------------------- Items related to long-term asset -------------------------------------------------------------------------------- items available for 0.0 0.0 sale -------------------------------------------------------------------------------- Other comprehensive income total -------------------------------------------------------------------------------- adjusted by tax 0.0 -0.4 -0.4 effects -------------------------------------------------------------------------------- Comprehensive income 0.0 -0.4 62.3 61.9 -------------------------------------------------------------------------------- 31.3.2014 55.9 55.9 -11.6 -0.4 62.3 704.6 -------------------------------------------------------------------------------- Condensed consolidated cash flow statement, Eur Jan- Jan-March/ Jan- million March/1 13 Dec/13 4 -------------------------------------------------------------------------------- Cash flow from operating activities -------------------------------------------------------------------------------- Profit for the financial period 62.3 55.0 90.7 -------------------------------------------------------------------------------- Adjustments 46.7 32.9 111.1 -------------------------------------------------------------------------------- Changes in working capital -12.7 -0.6 -0.5 -------------------------------------------------------------------------------- Impact of changes in fair value of investments -0.2 0.0 0.0 -------------------------------------------------------------------------------- Interest paid -1.3 -1.9 -21.6 -------------------------------------------------------------------------------- Interest received 0.5 0.3 1.2 -------------------------------------------------------------------------------- Taxes paid -2.8 -1.8 -22.1 -------------------------------------------------------------------------------- Net cash flow from operating activities 92.6 83.9 158.8 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Cash flow from investing activities -------------------------------------------------------------------------------- Investments in property, plant and equipment -38.2 -44.9 -222.3 -------------------------------------------------------------------------------- Investments in intangible assets -1.0 -0.5 -4.7 -------------------------------------------------------------------------------- Investments in other assets 0.0 0.0 -2.0 -------------------------------------------------------------------------------- Capital gain from other investments 0.0 0.0 0.0 -------------------------------------------------------------------------------- Proceeds from sale of property, plant and equipment 0.2 0.0 4.0 -------------------------------------------------------------------------------- Loan receivables repayments 0.0 0.0 0.0 -------------------------------------------------------------------------------- Dividend received 0.0 0.0 0.3 -------------------------------------------------------------------------------- Contributions received 19.9 0.0 0.0 -------------------------------------------------------------------------------- Interest paid -0.4 -0.3 -1.7 -------------------------------------------------------------------------------- Net cash flow from investing activities -19.4 -45.4 -226.4 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Cash flow from financing activities -------------------------------------------------------------------------------- Withdrawal of loans 111.8 38.4 528.6 -------------------------------------------------------------------------------- Repayment of loans -171.9 -65.5 -444.5 -------------------------------------------------------------------------------- Dividends paid 0.0 0.0 -13.1 -------------------------------------------------------------------------------- Net cash flow from financing activities -60.0 -27.2 71.0 -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Net change in cash and cash equivalents 13.1 11.3 3.5 -------------------------------------------------------------------------------- Cash and cash equivalents at the beginning of the 217.3 213.8 213.8 financial period -------------------------------------------------------------------------------- Cash and cash equivalents at the end of the 230.4 225.1 217.3 financial period -------------------------------------------------------------------------------- QUARTERLY FIGURES --------------------------------------------------------------------- Q1/2014 Q4/2013 Q3/2013 Q2/2013 Q1/2013 -------------------------------------------------------------------- Turnover EUR M 191.3 155.1 107.8 109.5 170.6 -------------------------------------------------------------------- Operating profit EUR M 79.3 36.5 9.9 -10.2 79.1 -------------------------------------------------------------------- Operating profit % 41.5 23.5 9.2 -9.3 46.4 -------------------------------------------------------------------- QUARTERLY FIGURES ------------------------------------------------------------ Q4/2012 Q3/2012 Q2/2012 Q1/2012 ----------------------------------------------------------- Turnover EUR M 153.7 106.0 92.7 169.6 ----------------------------------------------------------- Operating profit EUR M 38.5 7.1 -5.1 54.2 ----------------------------------------------------------- Operating profit % 25.0 6.7 -5.5 32.0 ----------------------------------------------------------- INVESTMENTS, MILLION EUROS Jan-March/2014 Jan-March/2013 ---------------------------------------------------------- Grid investments 29.1 30.8 ---------------------------------------------------------- Substations 14.4 20.9 ---------------------------------------------------------- Transmission lines 14.7 9.9 ---------------------------------------------------------- ---------------------------------------------------------- Gas turbine investments 0.1 0.7 ---------------------------------------------------------- Current gas turbine plants 0.0 0.0 ---------------------------------------------------------- New gas turbine plants 0.1 0.7 ---------------------------------------------------------- ---------------------------------------------------------- Other investments 2.4 3.0 ---------------------------------------------------------- ICT 2.3 2.0 ---------------------------------------------------------- Other 0.1 1.0 ---------------------------------------------------------- ---------------------------------------------------------- Total investments 31.6 34.4 ---------------------------------------------------------- RESEARCH AND DEVELOPMENT EXPENSES, MILLION EUROS -------------------------------------------------------------------------------- Jan-March/2014 Jan-March/2013 -------------------------------------------------------------------------------- Research and development expenses 0.4 0.4 -------------------------------------------------------------------------------- DERIVATIVE AGREEMENTS, MILLION EUROS -------------------------------------------------------------------------------- - 31.3.2014 31.3.2013 -------------------------------------------------------------------------------- Intere Fair Fair Net Nomina Fair Fair Net Nomina st and value value fair l value value fair l curre pos. neg. value value pos. neg. value value ncy deriv atives -------------------------------------------------------------------------------- Cross- 41 -8 33 366 80 -7 73 409 curren cy swaps -------------------------------------------------------------------------------- Forwar 0 -1 -1 117 0 0 3 d contr acts -------------------------------------------------------------------------------- Intere 17 -10 7 411 15 -8 7 391 st rate swaps -------------------------------------------------------------------------------- Call 0 0 0 320 0 0 695 optio ns, bough t bought -------------------------------------------------------------------------------- Total 58 -19 39 1,220 95 -15 80 1,498 ================================================================================ Electr Fair Fair Net Volume Electric Fair Fair Net Volume icity value value fair TWh ity value value fair TWh deriva pos. neg. value derivat pos. neg. value tives ives -------------------------------------------------------------------------------- Electr 0 -46 -46 3.98 Electric 0 -19 -19 2.99 icity ity forwa forward rd contrac contr ts, acts, NASDAX NASDA OMX Q OMX Commodi Commo ties, dities designa * ted as hedge account ing -------------------------------------------------------------------------------- Electric 0 -4 -4 0.94 ity forward contrac ts, NASDAX OMX Commodi ties, not designa ted as hedge account ing -------------------------------------------------------------------------------- Total 0 -46 -46 3.98 0 -23 -23 3.93 ================================================================================ *Fingrid has ceased hedge accounting for electricity derivates from the beginning of 2014. The hedge fund in the balance sheet will be dismantled during 2015 and 2016. DERIVATIVE AGREEMENTS, MILLION EUROS -------------------------------------------------------------------------------- - 31.12.2013 -------------------------------------------------------------------------------- Interest and currency derivatives Fair Fair Net Nominal value value fair value pos. neg. value -------------------------------------------------------------------------------- Cross-currency swaps 40 -9 31 366 -------------------------------------------------------------------------------- Forward contracts -1 -1 135 -------------------------------------------------------------------------------- Interest rate swaps 12 -8 4 471 -------------------------------------------------------------------------------- Call options, bought 350 bought -------------------------------------------------------------------------------- Total 52 -18 34 1,322 ================================================================================ Electricity Fair Fair Net Volume derivatives value value fair TWh pos. neg. value -------------------------------------------------------------------------------- Electricity forward contracts, NASDAX OMX -19 -19 1,76 Commodities, designated as hedge accounting -------------------------------------------------------------------------------- Electricity forward contracts, NASDAX OMX -20 -20 2,21 Commodities, not designated as hedge accounting -------------------------------------------------------------------------------- Total -38 -38 3,97 ================================================================================ Fair value hierarchy, EUR million 31.3.2014 -------------------------------------------------------------------------------- Level 1 Level 2 Level 3 -------------------------------------------------------------------------------- Financial assets recognised at fair value -------------------------------------------------------------------------------- Available-for-sale investments 0 0 -------------------------------------------------------------------------------- Interest and currency derivatives 40 -------------------------------------------------------------------------------- Financial assets recognised at fair value 20 176 -------------------------------------------------------------------------------- Financial assets recognised at fair value total -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- Financial liabilities recognised at fair value -------------------------------------------------------------------------------- Interest and currency derivatives 1 -------------------------------------------------------------------------------- Electricity forward contracts, NASDAX OMX Commodities -------------------------------------------------------------------------------- Financial liabilities recognised at fair value total -------------------------------------------------------------------------------- Fair value measurement of assets and liabilities are categorised in a three-level hierarchy in the fair value presentation. The appropriate hierarchy is based on the input data of the instrument. The level is determined on the basis of the lowest level of input for the instrument in its entirety that is significant to the fair value measurement. Level 1: inputs are publicly quoted in active markets. Level 2: inputs are not publicly quoted and are observable market parameters either directly or indirectly. Level 3: inputs are unobservable market parameters. Commitments and contingencies, EUR million 31.3.2014 31.3.2013 31.12.2013 ----------------------------------------------------------------------------- Pledges/ bank balances 8 0 5 ----------------------------------------------------------------------------- Rental liabilities 27 28 28 ----------------------------------------------------------------------------- Commitment fee of revolving credit facility 2 2 2 ----------------------------------------------------------------------------- Total 36 30 34 ----------------------------------------------------------------------------- Investment commitments 121 224 137 ----------------------------------------------------------------------------- Other financial liabilities 2 2 2 ----------------------------------------------------------------------------- Changes in property, plant and equipment, EUR 31.3.2014 31.3.2013 31.12.2013 million -------------------------------------------------------------------------------- Carrying amount at beginning of period 1,485 1,485 1,420 -------------------------------------------------------------------------------- Increases 150 35 144 -------------------------------------------------------------------------------- Decreases 0 0 -------------------------------------------------------------------------------- Depreciation and amortisation expense -22 -19 -79 -------------------------------------------------------------------------------- Carrying amount at end of period 1,613 1,500 1,485 -------------------------------------------------------------------------------- Transactions with associated companies 31.3.2014 31.3.2013 31.12.2013 ------------------------------------------------------------------------ Sales 2 2 8 ------------------------------------------------------------------------ Adjustments to expenses 0 0 ------------------------------------------------------------------------ Purchases 11 12 43 ------------------------------------------------------------------------ Receivables 1 1 26 ------------------------------------------------------------------------ Liabilities 0 0 0 ------------------------------------------------------------------------ ------------------------------------------------------------------------ Transactions with owners 31.3.2014 31.3.2013 31.12.2013 million euros ---------------------------------------------------------- Owners ---------------------------------------------------------- Purchases 0 0 24 ---------------------------------------------------------- Liabilities 0 0 1 ---------------------------------------------------------- Other related parties ---------------------------------------------------------- Sales 27 29 83 ---------------------------------------------------------- Purchases 6 6 50 ---------------------------------------------------------- Receivables 9 9 86 ---------------------------------------------------------- Liabilities 2 2 54 ---------------------------------------------------------- ---------------------------------------------------------- Segment reporting The entire business of the Fingrid Group is deemed to comprise transmission system operation in Finland with system responsibility, only constituting a single segment. There are no essential differences in the risks and profitability of individual products and services. This is why segment reporting in accordance with the IFRS 8 standard is not presented. Corporate rearrangements There have been no changes in the Group structure during the review period. Seasonal fluctuation The Group's operations are characterised by extensive seasonal fluctuations. General clause Certain statements in this release concern the future and are based on the management's present views. Due to their nature, they contain some risk and uncertainty and are subject to changes in economy and the relevant business. News Source: NASDAQ OMX 30.04.2014 DGAP's Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de --------------------------------------------------------------------------- Language: English Company: Fingrid Oyj Finland Phone: Fax: E-mail: Internet: ISIN: XS0113638653 Category Code: MSC TIDM: BR96 Sequence Number: 2025 Time of Receipt: Apr 30, 2014 10:00:03 End of Announcement DGAP News-Service ---------------------------------------------------------------------------


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