Notes to OP Financial Group Financial Statements

NOTES TO ASSETS

 

Note 27. Investments accounted for using the equity method

 

Amounts entered in the balance sheet:

 

EUR million 31 Dec. 2014 31 Dec. 2013
Restated*
Associates 56 53
Joint ventures 0 1
Total 56 54
                               

 

Amounts entered in the income statement:

 

EUR million 31 Dec. 2014 31 Dec. 2013
Restated*
Associates 3 -1
Total 3 -1
                               

 

* Comparative figures have been restated as a result of the adoption of IFRS 10 Consolidated Financial Statements.


Investments in associates and joint ventures

OP Financial Group has 4 (3) significant associated companies as of 31 December 2014. Automatia pankkiautomaatit Oy maintains and develops the Otto cash dispenser network and takes care of cash management for banks. The company's other owners are Nordea and Danske Bank. Access Capital Partners is one of the leading fund management companies for private equity funds and assets under its management total around EUR 2.9 billion. The company specialises in buyout funds investing in small and mid-size European companies. Access has offices in Paris, Brussels, Helsinki, Munich and London. Turun Teknologiakiinteistöt Oy is a property investment company based in the Turku Science Park which develops real property and services in the region rents office premises for companies and other organisations. It aims to be a profitable company with personal touch that provides its customers with the best environment in Finland to operate and grow. The floor area of buildings owned by Turun Teknologiakiiinteistöt is around 105,000 m² and their average occupancy rate is 95%. Uudenmaan Pääomarahasto Oy is engaged in private equity investments in Uusimaa and Itä-Uusimaa. The purpose of the fund is to make equity and debt instrument investments for the corporate transactions of small and mid-sized companies. In its investment operations, the fund seeks high return. Canelco Capital Oy, a venture capital firm, is in charge of the fund's operations and investments. OP Financial Group has no major investments in joint ventures.

 

Name Domicile Interest, % 2014 Interest, % 2013 Valuation method
Associates




Automatia Pankkiautomaatit Oy* Helsinki 33.3 33.3 Equity method
Access Capital Partners Group S.A.* Belgium 45.0 45.0 Equity method
Turun Teknologiakiinteistöt Oy* Turku 28.2 19.2 Equity method
Uudenmaan Pääomarahasto Oy* Helsinki 31.9 31.9 Fair value
 
                               

* The company belongs to the consolidation group with respect to capital adequacy

 

OP Financial Group's investments in associates and joint ventures have no quoted market price.

No contingent liabilities are involved in the associates or joint ventures. No such unrecognised commitments are related to the joint ventures that concern the provision of financing or resources or an obligation to buy another investor's interest in case certain future events occur.


Summary of associates' financial information

The table below presents the financial information on OP Financial Group's major associates that has also been reconciled with respect to the carrying amount of the associates and joint ventures. The financial information corresponds to the figures presented in the financial statements of the associates and joint ventures (i.e. not OP Financial Group's proportion), for which, for example, fair value restatements have been made to correspond to OP Financial Group's accounting policies

 

Balance sheet in summary Automatia Pankkiautomaatit Oy Access Capital Partners S.A Turun Teknologia-
kiinteistöt Oy
Uudenmaan
Pääomarahasto Oy
EUR million 2014 2013 2014 2013 2014 2013 2014 2013
Cash and cash equivalents 293 312 6 3 6 - 2 2
Other current assets 5 5 2 3 2 - 0 1
Total current assets 298 317 8 6 8 - 2 2
Non-current assets 17 16 11 11 220 - 10 13
Total assets 315 333 19 17 229 - 13 15
Financial liabilities (excl. accounts payable) 151 153 2 2 7 - - -
Other current liabilities (incl. accounts payable) 4 4 11 10 3 - - 0
Total current liabilities 155 156 13 12 11 - - 0
Non-current financial liabilities 135 150 - - 183 - - -
Other non-current liabilities - - - - 19 - - -
Total liabilities 290 306 13 12 212 - - 0
Net assets (100%) 26 26 6 5 16 - 13 15
Share of the associate's net assets 9 9 3 2 5 - 4 5
Goodwill - - 24 24 - - - -
Carrying amount 8 8 27 27 3 - 5 5
Statement of comprehensive income in summary                
Net sales 53 54 29 25 17 - - -
Profit or loss of continuing operations after tax 3 3 3 0 5 - -2 0
Comprehensive income (100%) 3 3 3 0 5 - -2 0
Dividends received 1 1 1 1 - - - -
Group's share of the associate's comprehensive income 1 1 1 0 1 - -1 0
 
 
  Automatia Pankkiautomaatit Oy Access Capital Partners S.A Turun Teknologiakiinteistöt Oy Uudenmaan Pääomarahasto Oy
EUR million 2014 2013 2014 2013 2014 2013 2014 2013
Investment 1 January 8 8 27 24 0 - 5 5
  Business acquisitions - - - 4 2 - - -
  Share of profits for the financial year 1 1 1 0 1 - - -
  Dividends -1 -1 -1 -1 - - - -
  Value change - - - - - - -1 0
Investment 31 December 8 8 27 27 3 - 5 5
 
                               

Summary of financial information on associates and joint ventures other than major ones whose accounts have been included in the consolidated financial statements

OP Financial Group has 4 (3) associates and 3 (4) joint ventures which are not significant when reviewing them one by one. The table below shows OP Financial Group's share of the profit/loss of these associates and joint ventures. Three (3) of the private equity funds treated as associates have been measured at fair value in accordance with IAS 28.

 

  Associates consolidated using equity method Associates measured at fair value Joint ventures
EUR million 31 Dec. 2014 31.12.2013
Restated*
31 Dec. 2014 31.12.2013
Restated*
31 Dec. 2014 31.12.2013
Restated*
Profit of continuing operations - - 0 -1 0 0
Comprehensive income - - 0 -1 0 0
 
                               

* Comparative figures have been restated as a result of the adoption of IFRS 10 Consolidated Financial Statements.

The above summary of associates measured at fair value is based on the companies' financial statements.