NOTES TO BALANCE SHEET


12. Intangible assets

MEUR
2017 2016
Other long-term expenditure


Acquisition cost, 1 Jan
5.7 5.2
Increases
0.9 0.5
Acquisition cost, 31 Dec
6.6 5.7
Accumulated amortisation and impairment, 1 Jan
3.8 3.2
Amortisation, current year
0.6 0.6
Accumulated amortisation and impairment, 31 Dec
4.5 3.8
Book value, 31 Dec
2.1 1.9




Intangible assets, total
2.1 1.9


13. Tangible assets

MEUR
2017 2016
Land and water areas


Acquisition cost, 1 Jan
0.0 0.0
Acquisition cost, 31 Dec
0.0 0.0
Book value, 31 Dec
0.0 0.0


Buildings and structures

Acquisition cost, 1 Jan
0.0 0.0
Acquisition cost, 31 Dec
0.0 0.0
Accumulated depreciation and impairment, 1 Jan
0.0 0.0
Accumulated depreciation and impairment, 31 Dec
0.0 0.0
Book value, 31 Dec
0.0 0.0


Connection fees

Acquisition cost, 1 Jan
0.0 0.0
Acquisition cost, 31 Dec
0.0 0.0




Machinery and equipment
Acquisition cost, 1 Jan
3.5 3.7
Increases
0.5 0.4
Decreases
-0.4 -0.5
Acquisition cost, 31 Dec
3.5 3.5
Accumulated depreciation and impairment, 1 Jan
2.5 2.6
Accumulated depreciation of transfers
-0.4 -0.4
Depreciation, current year
0.3 0.4
Accumulated depreciation and impairment, 31 Dec
2.5 2.5
Book value, 31 Dec
1.0 1.0


Other tangible assets

Acquisition cost, 1 Jan
1.3 1.3
Increases
0.1 0.0
Acquisition cost, 31 Dec
1.4 1.3
Accumulated depreciation and impairment, 1 Jan
0.5 0.4
Depreciation, current year
0.1 0.1
Accumulated depreciation and impairment, 31 Dec
0.7 0.5
Book value, 31 Dec
0.7 0.7




Tangible assets, total
1.7 1.7


14. Holdings in Group companies

MEUR
2017 2016
Acquisition cost, 1 Jan
1,081.2 816.6
Increases
0.0 264.5
Acquisition cost, 31 Dec
1,081.2 1,081.2
Book value, 31 Dec
1,081.2 1,081.2


15. Holdings in associated companies

MEUR
2017 2016
Acquisition cost, 1 Jan
0.0 0.0
Acquisition cost, 31 Dec
0.0 0.0
Book value, 31 Dec
0.0 0.0




16. Other stocks and shares
MEUR
2017 2016
Acquisition cost, 1 Jan
1.0 1.0
Acquisition cost, 31 Dec
1.0 1.0
Accumulated depreciation and impairment, 1 Jan
0.0 0.0
Accumulated depreciation and impairment, 31 Dec
0.0 0.0
Book value, 31 Dec
1.0 1.0




Investments, total
1,082.2 1,082.1


17. Inventories

MEUR
31 Dec 2017 31 Dec 2016
Completed housing units and commercial space
0.2 0.2
Land areas and land area companies
1.2 4.0
Other inventories
0.3 0.5
Book value
1.8 4.7


18. Non-current receivables

MEUR
31 Dec 2017 31 Dec 2016
Receivables from Group companies


Notes receivable, Group
395.0 7.8
Total
395.0 7.8

MEUR
31 Dec 2017 31 Dec 2016
Receivables from others


Notes receivable
0.4 0.4
Total
0.4 0.4




Non-current receivables, total
395.4 8.1


19. Current receivables

MEUR
31 Dec 2017 31 Dec 2016
Receivables from Group companies


Accounts receivable
0.0 1.3
Other receivables
176.3 295.5
Prepaid expenses and accrued income
0.0 0.1
Total
176.3 296.9
Receivables from others
Accounts receivable
0.1 0.3
Prepaid expenses and accrued income
0.1 0.3
Total
0.3 0.7




Current receivables, total
176.5 297.6




Receivables total
571.9 305.7


Specification of prepaid expenses and accrued income

Interest receivables
0.0 0.0
Other
0.1 0.4
Total
0.1 0.4


20. Shareholders' equity

MEUR
2017 2016
Share capital, 1 Jan
4.4 4.4
Share capital, 31 Dec
4.4 4.4




Reserve fund, 1 Jan
43.7 43.7
Reserve fund, 31 Dec
43.7 43.7




Other funds, 1 Jan
1.1 1.1
Other funds, 31 Dec
1.1 1.1




Invested unrestricted equity fund, 1 Jan
114.8 1.9
Increases
0.0 112.9
Decreases
0.0 0.0
Invested unrestricted equity fund, 31 Dec
114.8 114.8




Retained earnings, 1 Jan
123.9 96.6
Dividend payment
0.0 -25.4
Retained earnings, 31 Dec
123.9 71.2




Profit for the period
62.5 52.6




Shareholders' equity, total, 31 Dec
350.5 288.0

21. Calculation of distributable funds
MEUR
2017 2016
Other funds
1.1 1.1
Invested unrestrited equity fund
114.8 114.8
Retained earnings
123.9 71.2
Profit for the period
62.5 52.6
Distributable funds, 31 Dec
302.4 239.8


22. The parent company's share capital is divided into shares as follows:



31 Dec 2017 31 Dec 2016
Total number of shares
56,783,067 56,783,067

SATO Corporation has only one series of shares.

The company holds 160,000 of its own shares.


23. Provisions

MEUR
31 Dec 2017 31 Dec 2016
Provision for refund claims
0.0 0.0
Total
0.0 0.0


24. Long-term liabilities

MEUR
31 Dec 2017 31 Dec 2016
Loans to Group companies


Loans, Group
0.0 3.9
Total
0.0 3.9

MEUR
31 Dec 2017 31 Dec 2016
Loans from financial institutions


Bonds
747.7 847.3
Loans from financial institutions
300.0 50.0
Total
1,047.7 897.3




Long-term liabilities, total
1,047.7 901.1




Loans maturing in more than five years
178.2 77.9

Derivatives
MEUR
31 Dec 2017 31 Dec 2016
Nominal values of derivative instruments


Interest rate swaps, liabilities
474.6 538.4
Interest rate swaps, assets
120.0 0.0
Net
594.6 538.4

MEUR
31 Dec 2017 31 Dec 2016
Fair values of derivative instruments


Interst rate swaps


Positive
0.3 0.0
Negative
-20.8 -30.7
Net
-20.6 -30.7


Interest rate risk arising from floating rate loans of Group companies is hedged using derivative instruments in accordance with the Treasury Policy. The hedge ratio complies with the Treasury Policy, according to which the ratio of fixed-rate loans to the entire loan portfolio (excluding ARAVA loans) is kept above 60 per cent. SATO's objective is to keep the interest-fixing period between 3 to 5 years.


25. Current liabilities

MEUR
31 Dec 2017 31 Dec 2016
Loans to Group companies


Accounts payable
0.4 0.4
Other liabilities
0.0 68.1
Accrued expenses and prepaid income
0.0 16.9
Total
0.4 85.4

MEUR
31 Dec 2017 31 Dec 2016
Loans to others


Loans from financial institutions
240.9 109.9
Advances received
0.1 0.1
Accounts payable
0.8 0.9
Other liabilities
0.4 0.3
Accrued expenses and prepaid income
18.8 22.9
Total
261.1 134.2




Current liabilities, total
261.5 219.6




Liabilities, total
1,309.2 1,120.7

MEUR
31 Dec 2017 31 Dec 2016
Specification of accrued expenses and prepaid income


Wages and salaries including employee benefits
2.1 2.0
Interest payable
13.8 30.0
Municipal engineering liabilities
0.0 0.5
Current tax liabilities
2.5 6.6
Others
0.4 0.8
Total
18.8 39.8


26. Collaterals, contingent liabilities and other commitments

MEUR
31 Dec 2017 31 Dec 2016
Congingent liabilities on behalf of Group companies


Guarantees
175.5 314.8
Total
175.5 314.8

MEUR
31 Dec 2017 31 Dec 2016
Other commitments


Lease agreements for premises in Panuntie, amounts due (incl.VAT)


Within one year
1.7 1.7
Later than one year but within five years
5.2 7.1
Later than five years
0.0 1.8
Pledges and contingent liabilities, total
6.9 10.6


SATO has sublet its office premises in Panuntie, Helsinki. The future minimum rent payments from these agreements is EUR 0.6 (0.8) million. In the current period, rental income recognised in income statement amounted to EUR 0.5 (0.8) million.